With the rapid development of the software and computer technologies the necessity to protect intellectual property and raise computer security has sharply grown. In the USA and in many other developing countries of the world any software and hardware can be completely protected according to intellectual property laws existing in the country.
The situation under analysis discloses the idea of software algorithm invention by Joe and commercialization of this product by Stan. From the ethical point of view Stan committed a kind of “crime” as he stole Joe’s idea and wanted to make use of it without his partner’s involvement and participation. Joe, being the inventor rather than business man, is not aware of all details of legal intellectual property protection and could loose any rights for his own inventory idea but for Stan’s guilt pangs.
The idea of invention was worked out by Joe and could become a commercial product in case entrepreneur Stan and inventor Joe joined their efforts and abilities to create common business. Under the law this kind of inventions can be protected by Stan according to the trade secret law.
Trade secret law is considered to be the best way of intellectual property protection if the invention is software algorithm. It is the most appropriate mechanism for proprietary rights preservation because it can provide the broadest protection form for Joe’s invention. Stan as a soul proprietor could get a percent form the income.
But is it necessary to stress the fact that there can be some difficulties connected with the intellectual property protection under the trade secret law. The point is that algorithm can be protected under this law in case the following conditions are observed:
- The invention is not widely known to the publicity;
- Software algorithm is preserved the confidentiality and it is considered to be a trade secret;
- The invented product provides the owner with a competitive advantage and beneficial position.
This type of legal security for the invented product of Joe is really important but it provides protection only for the period of time when the algorithm is under the secret and gives advantages in competitiveness.
On the other hand, Stan could use patent protection as a way of product security. The requirements for this type of intellectual rights protection are not so high:
- Novelty;
- Utility;
- Non obviousness.
Joe and Stan should create the trade mark for their software product because it provides very strong level of ownership for the invention.
Thus, the situation analyzed above disclosed the idea that every invention should be protected by the existing law providing security for your intellectual rights for the product; this should be done before sharing the idea as in case with Joe and Stan. The partners are to sign a contract about cooperation in case they are eager to develop and promote the invention together and get profit out of it. To reach success in software business all the mentioned steps are to be observed.
References
Pfleeger, Charles P. & Pfleeger, Shari L. (2006) Security in Computing. 4th Edition. USA.
Vaughan-Nichols, Steve. (2003). Protect Your Business Software. Information Week, NY.