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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?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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?
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