Intellectual Property, Professional Integrity

PHIL/ENGR 482

Ethics and Engineering

Intellectual Property(based on a presentation by Page Heller 4/11/01)

Intellectual Property is property that results from mental labor...

Patents, ServiceMarks and Trademarks (®,™), Copyright (©), and Trade Secrets ...are common ways in which intellectual

property can be protected.

Intellectual Property

To illustrate the importance of intellectual property, consider the software business.

Microsoft, a relatively young company, dealing almost exclusively in software, is the all-time leader, worldwide, for profitability.

Patents

A patent is issued by government, allowing the owner to exclude others from using or selling the described invention for 20 years from the date of filing. puncture-proof tire

Patent law encourages inventors to disseminate knowledge, rather than to keep it secret.

Patents

To obtain a patent, the invention must be new, useful, and not obvious. (99% of applications fail the “not obvious” requirement)

Patents can be utility (provisional or nonprovisional), plant, or design.

Provisional patents offer temporary protection, provides filing date, gives 1 year to file papers.

Less than 10% of patents reach marketplace. A patent can cost approximately $25,000-

$30,000, mostly in legal fees.

Types of Patents

In general terms, a “utility patent” protects the way an article is used and works, while a “design patent” protects the way an article looks.

A utility patent can be either provisional or nonprovisional.

A plant patent can be used to protect a developed variety of plant. Maroon carrots were developed and patented by

Texas A&M

Things that can be patented:

Processes (incl. some software) Process for removing pollutants from the soil

Machines An automatic windshield washer speed control

“Manufactures” (a physical device, but not a machine) Adjustable fit inline skate

Compositions of matter Low fogging thermoplastic elastomer

composition Improvements of the above

Patents by Universities

The Bayh-Dole act of 1980 allowed universities to patent inventions resulting from government funded research studies. Previously, the US Government owned such IP, and often this hindered bringing the inventions to market.

Many valuable inventions have been licensed by TAMU and other universities.

Patents by Universities-- examples

This guardrail end treatment was developed by TTI at Texas A&M in 1990.

ET2000

(Click on the picture to launch movie…)

Patents by Universities--examples

A hepatitis B vaccine was patented by University of California, resulting in $60 million in royalties paid to UCal.

In addition to royalties paid to A&M, the ET2000 Guardrail has saved an estimated 1200 deaths or severe injuries in 47 states. Annual societal savings are estimated at $540 million.

Trademarks

A Trademark is either a word, phrase, symbol or design, or combination of words, phrases, symbols or designs, which identifies and distinguishes the source of the goods or services of one party from those of others. Coca-Cola®, Casio® registered trademarks TaknosysTM - unregistered trademark

Serves as a symbol of quality.

Trademarks

The name Gatorade is trademarked by the University of Florida. This trademark has earned U. Fla. $15 million.

Service mark

A service mark is the same as a trademark except that it identifies and distinguishes the source of a service rather than a product. Normally, a trademark for goods appears on the product or on its packaging, while a service mark appears in advertising for the services.

Trade dress

Trade dress is a distinctive, nonfunctional feature which distinguishes one merchant's or manufacturer's goods or services from those of another. The trade dress of a product involves the “total image” and can include the color of the packaging, the configuration of goods, etc... Even the theme of a restaurant may be considered trade dress.

Protection offered by trademarks...

Trademarks must be defended. When the owner of a trademark/service mark/trade dress learns that his trademark is being infringed upon, he must bring a lawsuit to protect the trademark.

Trademarks sometimes conflict and must be

defended...

Exxon’s Tiger Kellogg’s Tony

A cat fight...

Exxon’s Tiger recently clashed with Kellogg’s Tony the Tiger in court. Exxon had used their Tiger for 30 years, but when Exxon began marketing food products with their Tiger, Kellogg claimed infringement of their Tony the Tiger trademark.

A federal judge recently ruled against Kellogg, saying they had waited too long to make this claim.

Kellogg is appealing the ruling.

Copyrights

Copyright© - rights to creative products (e.g. books, pictures, graphics, sculpture, music, movies, computer programs) are retained by the author for 50 years after his/her death. Gone With the Wind Star Wars

Copyrights protect the form of expression of the ideas, but not the ideas themselves.

Copyrights

Copyrights provide protection for the lifetime of the author, plus 75 years.

You should provide notice, ie., “©2001, Texas A&M University, All rights reserved” that you intend to defend your copyright.

Can register copyright for $20.00 Sometimes copyrights are applied to the

modularity of software

Trade Secrets

Trade Secret--a formula, customer list, or compilation of information, … used in business to gain advantage over competitors who do not possess the trade secret. Example: formula for Coca-Cola

Must not be in public domain, and secrecy must be protected.

The Economic Espionage Act of 1996 made theft of trade secrets a federal crime.

There is no protection against loss of trade secrets by accident or reverse engineering.

Case

Tom is a young engineering graduate who designs automobile brakes for Ford. While working for them, he learns a lot about heat transfer and materials. After five years, Tom leaves Ford to take a job at General Motors. While at General Motors, Tom applies his knowledge of heat transfer and materials to design engines. Is Tom stealing Ford's proprietary information?

Case

Tom is a young engineering graduate who designs automobile brakes for Ford. While working for them, he earns a lot about heat transfer and materials. After five years, Tom leaves Ford to take a job at General Motors. While at General Motors, Tom applies his knowledge of heat transfer and materials to design brakes. Is Tom stealing Ford's proprietary information?

Case

Tom is a young engineering graduate who designs automobile brakes for Ford. While working for them, Tom helps develop a new brake lining that lasts twice as long as conventional brake linings. Ford decides to keep the formula for this brake lining as a trade secret. After five years, Tom leaves Ford to take a job at General Motors. While at General Motors, Tom tells them the formula for the new brake lining. Is Tom stealing Ford's proprietary information?

Integrity and Client-Professional Confidentiality

Two ways to abuse client-professional confidentiality

Release of confidential information when not warranted

Failure to release confidential information when public interests (health, safety, welfare) demand it.

Confidentiality in other professions...

Medicine--physicians are required to report evidence of child abuse and gunshot wounds.

Law--ABA says that lawyers “may” report confidential information when there is a threat of “imminent death or substantial bodily harm”.

Some ethical canons addressing limits of confidentiality

NSPE: Engineers shall not reveal facts, data or information without the prior consent of the client or employer except as authorized or required by law or this Code. Hold paramount the safety, health and welfare of the

public. If engineers' judgment is overruled under

circumstances that endanger life or property, they shall notify their employer or client and such other authority as may be appropriate.

Some ethical canons addressing limits of confidentiality

NSPE: Engineers having knowledge of any alleged violation of this Code shall report thereon to appropriate professional bodies and, when relevant, also to public authorities, and cooperate with the proper authorities in furnishing such information or assistance as may be required.

(the ASCE Code has a similar clause)

Some ethical canons addressing limits of confidentiality

TX SBPE: The engineer may reveal confidences and private information only with a fully informed client's or employer's consent, or when required by law or court order; or when those confidences, if left undisclosed, would constitute a threat to the health, safety or welfare of the public.

LA PELS: does not address this...