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Bug Inc Essay

2471 words - 10 pages

Running head: BUG, INC.BUG, Inc.Rebecca Barnes, Dennis Benipayo, Glenda Henriquez, Chuck Major, Myaunza MyersUniversity of PhoenixBusiness LawBUS/415Patricia A. TurnageJanuary 26, 2009BUG, Inc.In today's uncertain market, businesses may encounter innumerable challenges. Owners of any size or type of business cannot merely be concerned with profits, growth, and recognition; they must also be concerned with the protection of their property, assets, customers, and the activities of their employees. Many businesses lose sight of these issues and find that they are liable for negligent wrongdoing, or find that their business advantages no longer exist.Protection of intellectual property, product liability, fraud, assumption of risk, and protection when utilizing on-line commerce are all common issues a modern business may encounter. Bug, Inc., a company based in the US that manufactures and sells electronic recording devices, has run into these types of issues. To follow are six scenarios involving Bug, Inc. and its employees. For each scenario, we will explain the conflict, and then state what liabilities exist for Bug, Inc. We will also detail any conflict of law issues and our recommendations on how these may be handled.BUG should have a few different types of legal protections for its intellectual property. Intellectual property is valuable in distinguishing a business from its competitors. Trade secrets, patents, copyrights, and trademarks serve to encourage fair competition in business. Through the use of such devices, consumers are protected from confusing one company's products from another and companies are protected from competitors profiting from their ingenuity.First of all, Bug must take precautions to guard its trade secrets from being discovered by others. Under the Uniform Trade Secrets Act, if its trade secrets are stolen, BUG can bring an action to recover profits from the competition, recover for damages, and the court can order an injunction to keep the competitor from using the secret or sharing it with others.Under the Federal patent laws, BUG is entitled to patent its unique software and hardware. As a patent holder, BUG owns exclusive rights to its patents for 14 years. If someone uses the software or unique hardware design without authorization, BUG can sue to recover damages caused by the misuse of the product. Software copyrights can also protect BUG's intellectual property. Congress has enacted the Computer Software Copyright Act which authorizes BUG to register software programs with the Registrar of Copyright. If a competitor or anyone else infringes upon the copyright, BUG may sue to recover profits and damages and can request the court to issue an order to destroy the infringing work and order an injunction protecting against further infringement. The court can also award statutory damages of $150,000 instead of actual damages if it so chooses.Federal law protects trademarks, service...

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