Homework Help is Here – Start Your Trial Now!
Business
Economics
Questions 2: Issue 2: 2.1. Does the behavior of Plesco about entering the US market and selling laptops under the trademark "Plesco" violate intellectual property rights? 2.2. Does the behavior of Mr. Dan violate copyright law and is he allowed to display his work?

Questions 2: Issue 2: 2.1. Does the behavior of Plesco about entering the US market and selling laptops under the trademark "Plesco" violate intellectual property rights? 2.2. Does the behavior of Mr. Dan violate copyright law and is he allowed to display his work?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter1: Introduction And Goals Of The Firm
Section: Chapter Questions
Problem 1.2CE
See similar textbooks
icon
Related questions
Question
100%
Plesco is planning to establish a subsidiary in the US. This subsidiary will employ up to 50 workers, will have an office and a special storage for laptops. When designing the corporate form of the subsidiary Plesco wishes to limit its own liability so that the subsidiary is fully liable for all debts and obligations before its clients. At the same time, Plesco does not want this subsidiary to become a public company –- all shares should belong to Plesco so that Plesco could exercise full control. In addition, Plesco does not want a complicated organizational structure. An optimal tax regime would also be preferable for the owners of Plesco. One of the Plesco's plans includes registering a trademark “Plesco" for laptops. As laptops are the company's most successful product, Plesco is not planning to sell anything else in the US. However, having monitored the market, Plesco found that a trademark "Plesco" had already been registered for chocolates by USPTO. The owner of trademark in the US is Chocolife Inc. Chocolife Inc. has not used the said trademark for any other products except chocolates. Considering these circumstances Plesco decided to enter the US market anyway and to sell laptops under the trademark "Plesco", which it is willing to register. Plesco entered into an agreement with Mr. Dan Smith, a famous US artist, so that he could create an image for the trademark. According to the agreement Mr. Dan assigned all his intellectual property rights regarding the image under copyright law to Plesco so that Plesco became their only holder, in exchange for royalties paid to Mr. Dan by Plesco. After the image was ready and transferred to Plesco, Mr. Dan publicly displayed the image on his website. One of the Plesco managers sent a demand to Mr. Dan to remove the image because Plesco became the sole copyright holder according to the agreement. Mr. Dan refused to satisfy the demand, because although he agreed that he had assigned his intellectual property rights, he nevertheless regarded himself as the author of the work and, in his opinion, this very fact allowed him to display his work anywhere and whenever he wanted.
Transcribed Image Text:Plesco is planning to establish a subsidiary in the US. This subsidiary will employ up to 50 workers, will have an office and a special storage for laptops. When designing the corporate form of the subsidiary Plesco wishes to limit its own liability so that the subsidiary is fully liable for all debts and obligations before its clients. At the same time, Plesco does not want this subsidiary to become a public company –- all shares should belong to Plesco so that Plesco could exercise full control. In addition, Plesco does not want a complicated organizational structure. An optimal tax regime would also be preferable for the owners of Plesco. One of the Plesco's plans includes registering a trademark “Plesco" for laptops. As laptops are the company's most successful product, Plesco is not planning to sell anything else in the US. However, having monitored the market, Plesco found that a trademark "Plesco" had already been registered for chocolates by USPTO. The owner of trademark in the US is Chocolife Inc. Chocolife Inc. has not used the said trademark for any other products except chocolates. Considering these circumstances Plesco decided to enter the US market anyway and to sell laptops under the trademark "Plesco", which it is willing to register. Plesco entered into an agreement with Mr. Dan Smith, a famous US artist, so that he could create an image for the trademark. According to the agreement Mr. Dan assigned all his intellectual property rights regarding the image under copyright law to Plesco so that Plesco became their only holder, in exchange for royalties paid to Mr. Dan by Plesco. After the image was ready and transferred to Plesco, Mr. Dan publicly displayed the image on his website. One of the Plesco managers sent a demand to Mr. Dan to remove the image because Plesco became the sole copyright holder according to the agreement. Mr. Dan refused to satisfy the demand, because although he agreed that he had assigned his intellectual property rights, he nevertheless regarded himself as the author of the work and, in his opinion, this very fact allowed him to display his work anywhere and whenever he wanted.
Questions 2: Issue 2: 2.1. Does the behavior of Plesco about entering the US market and selling laptops under the trademark "Plesco" violate intellectual property rights? 2.2. Does the behavior of Mr. Dan violate copyright law and is he allowed to display his work?
Transcribed Image Text:Questions 2: Issue 2: 2.1. Does the behavior of Plesco about entering the US market and selling laptops under the trademark "Plesco" violate intellectual property rights? 2.2. Does the behavior of Mr. Dan violate copyright law and is he allowed to display his work?
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Profits
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
SEE MORE TEXTBOOKS