C vicarious copyright infringement requires the

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Ethics in Information Technology
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Chapter 6 / Exercise 4
Ethics in Information Technology
Reynolds
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c. Vicarious copyright infringement requires the plaintiff to prove (1) direct infringement my primary party, (2) direct financial benefit to the defendant, and (3) the defendant’s right and ability to supervise the infringers. Example: Arista Records v. Flea World : The court found that Farmers market was liable for vicarious copyright infringement because they issued rules reserving the right to inspect all merchandise offered for sale. F. Trade Secrets Generally, a trade secret is developed by a firm and includes secret formulas, devices, processes, techniques, and compilations of information and must provide its owner with competitive advantage. 1. Maintaining Secrecy The owner must take reasonable steps to maintain secrecy. 2. Misappropriation An individual may freely use the trade secrets of another if he discovers them through proper channels. Example: E.I. Du Pont de Nemours & Co. v. Christopher : The court found the Christophers liable for misappropriation of Du Pont’s trade secret due to their devious actions. 8-7
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Ethics in Information Technology
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Chapter 6 / Exercise 4
Ethics in Information Technology
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Chapter 08 - Intellectual Property and Unfair Competition III. Trade Secrets A. Definition of a Trade Secret B. Ownership and Transfer of Trade Secrets
C. Misappropriation of Trade Secrets
1. Noncompetition Agreements 2. Example: Coleman v. Retina Consultants, P.C., 687 S.E.2d 457 (Ga. Sup. Ct. 2009) Misappropriation of a trade secret can occur in various ways, most of which involve disclosure  or use  of the secret. IV. Commercial Torts A. Injurious Falsehood 1. Elements and Damages 2. Injurious Falsehood and Defamation B. Interference with Contractual Relations 1. How can one interfere with the performance of another’s contract? 2. What are the threshold requirements that the plaintiff must prove? 3. The defendant’s conduct must be improper. What are the possible defenses that can be raised? 4. Example: Lewis-Gale Medical Center, LLC v. Alldredge, 2011 Va. LEXIS 121 (Va. Sup. Ct. 2011) C. Interference with Prospective Advantage V. Lanham Act Section 43(a) A. Who can bring an action under this section of the Lanham Act? (federal law prohibiting unfair competition protects commercial parties, not consumers) B. Identify and describe the various actions that can amount to civil liability. C. Example: Time Warner Cable, Inc. v. DIRECTV, Inc., 497 F.3d 144 (2d Cir. 2007) Section 43(a) of the Lanham Act basically creates a federal law of unfair competition. Section 43(a) is not a consumer remedy; it is normally available only to commercial parties, who usually are the defendant’s competitors. The section creates civil liability for a wide range of false, misleading, confusing, or deceptive representations made in connection with goods or services.

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