1. Why is securing proper intellectual property protection such as trademarks, patents and copyrights important for entrepreneurs?
Securing proper intellectual property protection such as trademarks, patents and copyrights is important for entrepreneurs because they can avoid loss of revenues and stop competitors from selling defective products. It is important to register the trademarks, patents and copyrights for marketing purposes. By doing this you secure the rights to publish, advertise and sell your products. Entrepreneurs register trademarks, designs and logos to protect and represent their brands being that branding can deliver huge commercial value to a company. Many people recognize brands more than they do individual products or services.
2. Analyze the advantages and the disadvantages of filing a trademark infringement lawsuit against the large chain selling Mixed Silk products?
Conduct the same analysis for not filing the lawsuit. The disadvantage is the financial implications and the time consumed to litigate the facts in court. The advantage of the issue becoming public can be beneficial to the company when it comes to publicity and advertisement of the product at no cost. Also some large chain companies would prefer to settle out of court in order to avoid having the name of the company in the middle of lawsuit resulting in negative impact among their social environment and their stakeholders. If Etheredge and Levy filed a lawsuit and won they would collect damages for lost sales. Suing or filing a trademark infringement lawsuit could cost thousands of dollars in legal fees per year. These types of cases can drag on for years.
3. What course of action do you recommend that Etheridge and Levy take?
Explain We recommend figuring out if the Mixed Silk product is register and patented. If it is, file an injunction motion to stop production of the product until the matter is legally resolved in court. Also, their attorney should send a demand letter demanding that the product is taken off the market based on the fact that it is a product infringement hoping that the demand letter is enough for the large company to avoid further legal action.
4. Can you recommend ways that Etheridge and Levy might be able to use the significant difference in the size of their company and the national retail chain to their advantage, especially for marketing their company?
We would recommend contacting local news and national news and offer the story. We would then explain the history of Mixed Chicks and why they began and why their product is better than their competitors. This of course would only become valid if they Etheridge and Levy has substantial evidence to support their case.