IT For Business
Misbah Faiz
BS A&F 2k24
Lecture 5
NUST Business School, Islamabad
Intellectual Property
• Intellectual property is considered to be intangible
property created by individuals or corporations.
Information technology has made it difficult to protect
intellectual property because computerized information
can be so easily copied or distributed on networks.
• Intellectual property is subject to a variety of
protections under different legal traditions: trade
secrets, copyright, trademarks, and patent law.
Ethical and Social issues in Information systems
Trade Secrets
• Any intellectual work product—a formula, device, pattern, or
compilation of data—used for a business purpose can be
classified as a trade secret, provided it is not based on
information in the public domain.
• Examples:
• Coca-Cola's recipe for its flagship product is one of the most
famous trade secrets in the world. The specific formula for the
soft drink has been kept confidential for over a century,
allowing Coca-Cola to retain a unique selling proposition that
sets it apart from its competitors.
• Google's search algorithm, known as PageRank, is a closely
guarded trade secret. PageRank determines the ranking of
search results based on various factors, including the
relevance and quality of web pages, backlinks, and other
criteria. By keeping the details of the PageRank algorithm
• The recipe for the fragrance used in a well-known
perfume brand, Chanel No. 5, is a prime example of a
trade secret. The specific blend of essential oils, aroma
compounds, and other ingredients used in the
perfume's formulation is closely guarded by the
company. By keeping the precise details of the
fragrance recipe confidential, the perfume brand can
retain its unique and distinctive scent, setting it apart
from competitors in the highly competitive fragrance
industry. This trade secret contributes significantly to
the brand's image, exclusivity, and market position,
allowing it to maintain a strong presence in the luxury
perfume market.
Copyright
• Copyright protects creators of intellectual property
from having their work copied by others for any
purpose. It grants exclusive rights to their creators or
copyright holders to control the use and distribution of
their creations.
• The intent behind copyright laws has been to encourage
creativity and authorship by ensuring that creative
people receive the financial and other benefits of their
work. Most industrial nations have their own copyright
laws, and there are several international conventions
and bilateral agreements through which nations
coordinate and enforce their laws.
• Examples:
Patent
• A patent grants the owner an exclusive monopoly on the ideas
behind an invention
• The strength of patent protection is that it grants a monopoly on
the under- lying concepts and ideas of software.
• They exclude others from reproducing, using, or profiting from it
without the expressed permission of the patent owner. The
granting authority issues a patent in exchange for permission to
publish details about the invention, such as how it's made and
what it's used for.
• Examples:
• Garrett Morgan was granted a patent for the traffic light in
1923
• The patent for the television was issued in 1930 to Philo Taylor
Farnsworth for the first television system
Trademarks
• Trademarks are legal protections on words, phrases, designs, or
marks that identify a specific product or service. Trademarks are
intellectual property that contribute to the image and reputation
of the product or service to which it belongs, and to the company
to which it belongs.
• Examples:
1.Coca-Cola: The distinct script and design of the Coca-Cola
logo, as well as the brand name itself, are globally recognized
trademarks associated with the popular soft drink company.
2.Apple: The iconic apple symbol used by Apple Inc. as its logo
is a widely recognized trademark associated with the
company's computers, smartphones, and other electronic
devices.
3.Nike: The "swoosh" logo of Nike, along with the brand name,
Kellogg Co. v. National Biscuit Co.
• Kellogg V National Biscuit Co.
