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Intellectual Property Rights Trade marks and brand names

A brand is a name that customers know and react to. The brand manipulates a buyer’s perception of the thing’s worth and adds value. The value of the brand is the impression of extra worth that it engenders in customers, whose loyality is thus that bit more secure. Brand loyalty leads to increased profit: BMW cars and IBM computers are not significantly better than their rivals but customers will pay significantly more for them. Branding emerged only in the last 100 years and by 1890 most countries had trade mark legislation establishing a name as a legally protectable asset. It was late in the last century that producers of products could take advantage of new mass-manufacturing techniques, distribution networks and advertising to win customers on a national or international scale. To distinguish their products they gave them distinctive names to differentiate them from ‘own label’ products of local retailers. George Eastman called his camera Kodak because it was ‘short, vigorous, incapable of being misspelt... and meant nothing’.

The commercial significance of brands has led to a number of brand-driven take-over deals, with bidders prepared to pay in excess of the asset value of the target company to acquire valuable brand names on the basis that it is almost impossible to create a megabrand from scratch. Thus Nestle paid £2.55 billion – more than five times the book value – for Rowntree to acquire the rights to Kit-Kat, After Eight, Smarties and Polo.

Unregistered trade marks are protected by the common law tort of passing off, but registered trade marks are protected by statute.

Registered trade marks.

A tarde mark is ‘any sign capable of being represented graphically which is capable of distinguishing goods or services of one undertaking from those of other undertakings’; it may ‘consist of words (including personal names), design, letters, numerals or the shape of goods or their packaging’.

Marks cannot be registered if identical with an earlier trade mark covering identical goods or services, or where similarity of mark and goods or services is likely to cause confusion to the public. This extends to unregistered marks protected by any rule of law (that is, passing off), or protected in any other form, that is copyright, design right or registered designs.

3. Questions.

  1. What is the difference between tangible and intangible property?

  2. How is intellectual property protected?

  3. In what ways can freehold estates be inherited?

  4. In what case can equitable estates arise?

  5. What kind of interests are called overriding?

  6. What is required for assignment of intangible property to be legal and effective?

  7. How can choses in action be negotiated?

  8. What features do negotiable instruments have?

  9. Why is brand legally protected?

  10. What is a trade mark?

4. Find the following sentences in the text.

  1. В состав материальной собственности входят товары и земля, которые могут быть объектом физического владения.

  2. Компания, разрабатывающая новый продукт при помощи, в том числе, изобретательской деятельности, защищает изобретение путем регистрации патента.

  3. Арендаторы владеют недвижимостью на основании контракта

  4. Владелец продает землю одному лицу по доверенности для «пользования» другого лица.

  5. Они возникают, когда несоответствие с правовыми формальностями препятствует передаче земельной собственности.

  6. Прежде, чем осуществлять передачу права собственности на землю, необходимо подтвердить права продавца.

  7. Чек с надписью «счет оплачивается (только)...»действителен лишь между партнерами, без права передачи.

  8. Автомобили BMW и компьютеры IBM ненамного лучше, чем продукция их конкурентов, но потребители заплатят за них значительно больше.

  9. К 1890 г. в большинстве стран существовало законодательство о торговых марках, где название рассматривалось как защищенная законом собственность