Posts Tagged agreements

Intellectual Property Disputes Between Employers and Employees

The creation and development of intellectual property can be an exciting and profitable process.  Unfortunately, disputes often arise regarding the ownership of intellectual property when the intellectual property is created while the inventor is employed by someone else.  Intellectual property can be extremely valuable and, in this situation, both the employee and employer can have an expectation of ownership. The general or default rule is that employers own the intellectual property created by their employees during the scope of their employment, while the employees own the intellectual property created outside of the scope of their employment, even if these creations were created during the time of employment.  As with most “general” or “default” rules, there are exceptions and numerous factors that must be considered in determining ownership. The most important factor that must be considered regarding intellectual property ownership is the type of intellectual property at issue. Copyrights:  Pursuant to the federal Copyright Act, ownership of a copyright initially vests with the author unless the work falls within the statutory definition of a “work made for hire.”  A “work made for hire” automatically is owned by the employer.  If a copyright does not qualify as a “work made for hire,” an employer must obtain a written assignment signed by the author to acquire legal ownership. Trademark:  Trademark ownership is dependent upon who first uses the mark pursuant to federal law.  Conception without use does not establish an ownership right.  If a trademark is created during the course of employment, the employer must still establish that it was the first to use the mark to identify its goods or services, or that an employee’s use of the mark is on behalf of or for the benefit of the employer.  Common law trademarks may arise by usage in commerce, but ownership may

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Papa John’s–Franchise Lessons To Be Learned

By now everyone has heard about the public feud between Papa John’s Pizza and the company’s famous founder and former CEO and Chairman, John Schnatter. The problems started in November 2017 when Schnatter blamed the NFL and how it was handling the players’ National Anthem protests for declining pizza sales. Two months later Schnatter voluntarily stepped down as CEO, but remained as the company’s Chairman. Then in May 2018, Schnatter reportedly used a racial slur during a conference call which resulted in Schnatter stepping down as Chairman. In July 2018, Papa John’s announced it was removing Schnatter and his likeness from all marketing efforts, including commercials, pizza boxes and the company’s logo. That same month, Papa John’s evicted Schnatter from the company’s headquarters and requested that he stop making any media appearances on behalf of the company. In response, Schnatter stated that he regretted resigning as CEO in 2017 and that his alleged racial slur was taken out of context. Schnatter further stated that Papa John’s new management was trying to push him out of the company and he sued Papa John’s to obtain documents relating to his ousting. Schnatter then took out a full-page ad in the company’s hometown newspaper in Louisville, Kentucky, directing employees to a website he launched called savepapajohns.com where he criticized the company’s new leadership. Schnatter wrote on his website that “the Board wants to silence me…so this is my website and my way to talk to you.” He added “Papa John’s is our life work and we will all get through this together somehow, some way.” Schnatter even posted many of the legal documents from his legal fight with the company on his site. Schnatter claims that employees and they accomplish this by requiring uniformity from their franchisees are rallying around him. However, other

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