Joe has designed a new smart water filter for industrial applications. Joe calls the water filter the
Question:
Joe has designed a new smart water filter for industrial applications. Joe calls the water filter the "SMARTY SIEVE". The filter has a novel 3-dimensional shape.
Joe asks a Mary to design a logo for the the product. Joe obtains a "work for hire contract" from LEGALEXPRESS on-line legal forms and Mary signs the agreement and received $100 in compensation for her work.
Joe asks Tom to assist with creating a software program to validate the operation of the filter and conduct audits of each of the filter placements every 6 months. There are 20 companies and utilities who have ordered the filters and it will take Tom 30 hours a week to complete the audits. Joe pays Tom a flat fee of $ 5000 for the software and minimum wage for the audits for the first year, as they are just getting started. Joe does not take any compensation for the first year. Tom, in his mind agrees to the minimum wage for the first year, as it is a form of sweat equity. Neither Tom nor Joe consultant a lawyer or an accountant as they do not want extra the expense.
Joe decides at the end of the first year that the he can take 50K in profits as his income. Tom asks for his profits and Joe says he is not entitled to profits as he is a contractor and not an owner of the business. Tom gets mad and he deletes the validation software from all of the accounts on his next visit and then he starts a competing business with the same software and the logo.
Joe sues Tom for stealing his intellectual property and Tom counterclaims the he owns the IP and sues for his share of the profits in the business.
Address two of these issues:
1) Identify all of the intellectual property and how it can be protected?
2) Who owns the rights to the intellectual property?
3)What type of business entity was formed?
4) Is Tom entitled to profits -- why?
5) s Mary entitled to profits-- why?
Expert Answer:
1 The intellectual property in this scenario includes a Logo designed by Mary This can be protected under copyright law as it is considered a creative ... View the full answer
