Title: Reading: (CU4 M2) Intellectual Property
Course: SkillsCom BA 223 16.0 > Section: Credit Unit 4 Module 2 - Legal Issues

- Notes on Legal Issues
- Chapter 23
- Section 14.4

Marketers should be familiar with a number of different legal considerations. Most of these matters fall into one of two categories, either consumer related or intellectual property, which are introduced below. Marketers may also need knowledge of contract law, but to cover that topic appropriately is beyond the scope of this course.

Consumer-related legal issues in marketing

Consumer rights

Consumer rights are an important legal topic requiring marketers’ attention. The Federal Trade Commission (Webpage), or FTC, oversees consumer protection with laws related to truth in advertising, green marketing and other related issues. Privacy laws are another important area of law concern for marketers. The advent of the internet and ensuing collection of consumer data has raised consumers’ expectation of the safety of their private information. The FTC also enforces many consumer privacy regulations.

UCC

The sale of many products in the United States is governed by the Uniform Commercial Code (UCC). The UCC is the set of laws that govern commercial transactions in the United States. The study of the UCC will be particularly helpful if a marketer is in a position where he or she will be heavily involved in sales functions, but UCC laws are also applicable to other areas of marketing.

Warranties

Warranties are important to a marketer for two reasons. First of all warranties add value to a product (good or service).  Marketers would be remiss if they did not include warranties as part of the value package when marketing the product. The second important issue is that marketers must be careful in their advertising and sales pitches to not imply a warranty where one does not exists. From a legal standpoint an implied warranty is just as valid as an express warranty, and may financially obligate the company.

Marketers and intellectual property (IP)

Intellectual property is creation of intellect (the mind) that the law protects from unauthorized use by others. In practical terms this means things like inventions, artistic works, designs, and application of an idea.

Three most common interactions marketers have with intellectual property are; actually marketing intellectual property, avoiding infringement of another’s intellectual property, preventing others from using their intellectual property.

Marketing intellectual property is often actually marketing the physical application of the IP, such as a music composition, literary work, or piece of art. Computer programs and mobile apps are also expressions of IP that can be marketed.

Infringing on the intellectual property of another is not only unethical, it is also illegal. Unethical companies sometimes purposely try to confuse the consumer by naming and packaging their product in a manner similar to a successful competitor. Even the use of a similar slogan may be an infringement. When developing a marketing campaign it is important to ensure that no part of the promotion infringes on the legally held IP rights of another organization.

On the flip side of the coin if you, as a marketer, have developed a unique slogan or logo (or any other type of intellectual property) you do not want another person to “borrow” your property without your permission! Fortunately there are legal protections for intellectual property, which will be introduced in the next assigned readings.

There are also ways for individuals and organizations to share their intellectual property with others through a new initiative known as Creative Commons. Creative Commons is a non-profit organization that issues copyright licenses that allow the holder to share their creative work under terms of their choosing. You’ll learn more about Creative Commons later in this module when you are directed to visit their website.

Read the Introduction and Section 23.1 - 23.4 of Chapter 23 (p. 1074-1103) in Advanced Business Law and the Legal Environment (PDF)

Read Section 14.4 of Chapter 14 (p. 473-481) in Principles of Marketing (PDF).