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Did Drink-Company Infringe On Pat's Intellectual Property Rights

1295 Words6 Pages

Issue #1: Did Drink-Co infringe on Pat’s intellectual property rights by using the Stangaid logo on Augie-aid bottles? Rule: Pat may have intellectual property rights in the Stangaid name and logo used to create Stangaid, which could include trademark rights and trademark infringement. A trademark is a distinctive mark, design, or expression that distinguishes products or services of a particular source from those of others (Clarkson & Miller, 150). Trademark rights are protected under federal law, specifically the Lanham Act of 1946. The Lanham Act was created to protect owners who have registered trademarks from unauthorized use of their marks (Clarkson & Miller, 152). Trademark infringement occurs when another party creates and uses a …show more content…

Pat had developed and established Stangaid as a unique flavored sports drink and had marketed it locally and regionally. He did not sell the rights to use the Stangaid logo to Drink-Co. The fact that Drink-Co offered to buy Stangaid for $30 million did not include the right to use the Stangaid logo. By using the Stangaid logo on Augie-aid bottles and advertising Augie-aid as Stangaid, Drink-Co created confusion among consumers, and this constitutes an infringement of Pat's intellectual property …show more content…

If the contract contained a provision prohibiting the sale of the company to competitors, Stangaid breached the contract by failing to uphold its contractual obligation to Drink-Co and violated the terms of the agreement when agreeing to the sale with Energy-cola. Conclusion: A valid contract existed between Stangaid and Drink-Co as there was an offer, acceptance, consideration, and intention exchanged. However, Drink-Co could have breached the contract when they labeled Augie-aid bottles with the Stangaid logo and ran ads stated that Augie-aid was now Stangaid. This action by Drink-Co could have confused customers and went outside the scope of the contract, violating the terms of the agreement. Pat could push for legal consequences against Drink-Co for using Stangaid’s logo without permission. It can also be argued that because the case does not explain the contract agreement between Drink-Co and Stangaid, it cannot be known that the use of the Stangaid logo violated the terms of the contract. Therefore, Pat could have breached the terms of the contract by accepting a higher offer from Energy-Cola and selling Stangaid to them instead. As a result, Drink-Co may have grounds to sue Pat for breaching the contract and seek

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