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Prep 3 SS · Economics and Business Administration
Business strategy and analytical methods: case studies · Validation and protection of the model

Protecting the Idea, the Product, and the Brand

Ximena and her cousin Diego sell jams at the tianguis (open-air market) with a very eye-catching name and a jar that everyone already recognizes. One day they see a product at the supermarket with an almost identical name. Can they do anything about it? A validated but unprotected idea doesn't last long if anyone can copy it as soon as it works. In Mexico, industrial property is registered at the IMPI (Instituto Mexicano de la Propiedad Industrial, the Mexican Institute of Industrial Property) and copyright at the INDAUTOR (Instituto Nacional del Derecho de Autor, the National Copyright Institute). Knowing which path to use in each case is part of an entrepreneur's job.

Four Paths of Protection

The first three are applied for at the IMPI. Copyright arises on its own; registering with INDAUTOR does not create it, but it serves as proof that you are the author.

Diagram of the four paths of protection: patent for technical inventions, trademark for names and logos, industrial design for aesthetic form, and copyright for works and content. Patenttechnical inventions Trademarknames and logos Industrial designaesthetic form Copyrightworks and content
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Explain what each form of intellectual and industrial property protects: patent, trade mark, industrial design, and copyright.

Explain what each form of intellectual and industrial property protects: patent, trade mark, industrial design, and copyright.

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State which form of protection is appropriate in each case: a company logo, a technical invention that improves a bicycle, a novel, the aesthetic shape of a bottle, and…

State which form of protection is appropriate in each case: a company logo, a technical invention that improves a bicycle, a novel, the aesthetic shape of a bottle, and the code and text of a website.

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The diagram summarises four ways of protecting ideas and creations. Identify the missing form, marked with '?', explain what it protects, and give an example of a…

The diagram summarises four ways of protecting ideas and creations. Identify the missing form, marked with '?', explain what it protects, and give an example of a product that would require it.

patent technical inventions trade mark names and logos copyright works and content ? the aesthetic shape of a product
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The Idea Is Not Protected; the Specific Expression Is

Diagram distinguishing an abstract, unprotectable idea from its concrete expressions, which can be protected by copyright, patents, or designs. "an appfor taxis" — idea code · textslogo · mechanismconcrete — protectable
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A company creates an app with custom code, text, illustrations, and a logo. Explain which elements are automatically protected by copyright, which one requires a…

A company creates an app with custom code, text, illustrations, and a logo. Explain which elements are automatically protected by copyright, which one requires a specific registration, and which part cannot be protected: the general idea of 'an app for...'.

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Registering the Trademark Even if the Business Is Small

Conflict diagram: using a name without registering it and having another company register it first can force you to change your name. uses the name,doesn't register it another companyregisters it first conflict:change the name
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A small jam brand sells only at local markets and believes that registering a trade mark is just for multinationals. Argue why it is in its interest to register it even…

A small jam brand sells only at local markets and believes that registering a trade mark is just for multinationals. Argue why it is in its interest to register it even though it is small, and what could happen if another company registers a similar name first.

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The bicycle rental and repair shop "BiciBurra" has been operating successfully for a year in Valencia, but never registered its name with the OEPM. When seeking to…

The bicycle rental and repair shop "BiciBurra" has been operating successfully for a year in Valencia, but never registered its name with the OEPM. When seeking to expand, it discovers that a technical clothing brand has just registered "BiciBurra" for sports apparel (Class 25 of the Nice Classification).

  1. a) Can the sportswear company force the bicycle company to cease its activity or change its corporate name? Justify your answer applying the principle of trademark specialty and the registration principle.
  2. b) If "BiciBurra" wanted to start marketing its own branded cycling jerseys and hoodies, what legal conflict would arise and what strategic options does it have to resolve it? Evaluate the risks and costs of each.
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Patent or Trade Secret

The three requirements to patent an invention: novelty, inventive step, and industrial application. novelty: no one has made it public before inventive step: not obvious from what is known industrial application

A patent gives exclusivity for 20 years (counted from the filing date), in exchange for publishing the invention in detail. The alternative is the trade secret (Ley Federal de Protección a la Propiedad Industrial, the Federal Law for the Protection of Industrial Property): information that you keep with real confidentiality measures (restricted access, confidentiality agreements) and that gives you a competitive advantage.

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A student has invented a bike lock that opens using a cell phone. Explain which form of protection is suitable for the mechanism, what requirements are usually required…

A student has invented a bike lock that opens using a cell phone. Explain which form of protection is suitable for the mechanism, what requirements are usually required (worldwide novelty, inventive step, and industrial applicability), and what risk she runs if she exhibits it at trade fairs before protecting it.

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A biotechnology laboratory has achieved two innovations following an investment of 350,000 pesos: 1. An energy drink with a synthesised molecule whose exact formulation…

A biotechnology laboratory has achieved two innovations following an investment of 350,000 pesos:

  1. An energy drink with a synthesised molecule whose exact formulation can be deduced in a laboratory through reverse engineering as soon as it hits the market.

  2. A fermentation and plant temperature control algorithm that optimizes flavor and reduces costs, but is undetectable by analysing the bottled product.

Management is hesitating between filing patent applications with the OEPM or relying on the Trade Secrets Act (Ley de Secretos Empresariales). Reasonably recommend the optimal protection route for each innovation, contrasting in each case the risks of public disclosure, the temporal costs of exclusivity (20 years), and the vulnerability to copies by competitors.

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Territoriality and Registration Classes

Limits of trademark registration: valid in the registered territory and in the registered product class, not beyond them. registered in Mexico no protection in the U.S. class: cosmetics no protection in clothing
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A company registered its trademark only in Spain and now wants to sell in France, Germany, and Italy. Explain the territorial nature of trademark registrations, what…

A company registered its trademark only in Spain and now wants to sell in France, Germany, and Italy. Explain the territorial nature of trademark registrations, what options it has to protect itself in the European Union, and what checks it should perform before launching in those countries.

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Back to the beginning: Ximena and Diego will only be able to claim the similar name if they have it registered with the IMPI in the correct class and there is a risk of confusion; the jar, if they registered it as an industrial design.

Summary

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