Pat invented a device that could be screwed into the ground, adding piping as ne
ID: 1100104 • Letter: P
Question
Pat invented a device that could be screwed into the ground, adding piping as necessary, to create a do-it-yourself well. The pipe could then be attached to a pump to draw ground water into a sprinkler system, thereby avoiding the cost of using city water for lawn irrigation. Pat discussed the system with a reporter, who ran a story in the local paper. Pat then tested the system on ten lawns of people who contacted him after the newspaper article.
After a two-year testing period, Pat prepared the patent application to patent the device, and then found that just a month earlier one of Pat's testing customers had patented the device. Pat demanded that the customer give up the patent to Pat, but the customer refused. Which of the following is most correct?
A. Pat can force the customer to give up the patent claim because by publishing the story of the device in the paper,Pat establishes that he invented it first.
B.Pat can force the customer to give up the patent claim because the customer obtained the idea from Pat.
C.Pat lost his exclusive right to patent the device because he publicized and used the device fore more than a year before filing.
D.Pat lost the exclusive right to patent the device because he didn't protect his trade secret.
Explanation / Answer
D.Pat lost the exclusive right to patent the device because he didn't protect his trade secret.
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Broadly speaking, any confidential business information which provides an enterprise a competitive edge may be considered a trade secret. Trade secrets encompass manufacturing or industrial secrets and commercial secrets. The unauthorized use of such information by persons other than the holder is regarded as an unfair practice and a violation of the trade secret. Depending on the legal system, the protection of trade secrets forms part of the general concept of protection against unfair competition or is based on specific provisions or case law on the protection of confidential information.
The subject matter of trade secrets is usually defined in broad terms and includes sales methods, distribution methods, consumer profiles, advertising strategies, lists of suppliers and clients, and manufacturing processes. While a final determination of what information constitutes a trade secret will depend on the circumstances of each individual case, clearly unfair practices in respect of secret information include industrial or commercial espionage, breach of contract and breach of confidence.