Bug Inc Case Study

BUG, Inc. is a company that is a manufacturer and seller of electronic recording devices. Many of their clients are state and federal law enforcement agencies. Because of the nature of its business and its clients, it has many developments and designs that need to be protected from others trying to replicate its work. Below describes many different situations of needed protection and how to protect its products.

Intellectual Property Protection

BUG, Inc. needs to protect its designs, manufacturing process, the actual recording devices, original authored software, and its ladybug logo. These items are all under the umbrella of intellectual property. BUG, Inc. will need to make application to several different agencies to achieve maximum protection.

BUG, Inc. needs to protect its designs and their ladybug with headphones logo from illegal usage. These need trademark protection. BUG, Inc. will need to register the designs and logo with the U.S. Patent and Trademark Office in Washington, D.C. By registering its logo, BUG, Inc. will be able to put this logo on all of their products. Everyone will be able to recognize the device and immediately know that it is a BUG, Inc. product. Any unauthorized use of the ladybug logo is considered a trademark infringement.

By copyrighting its software, BUG, Inc. protects its rights to reproduce, publish, and distribute any programs BUG may have written. Even though copyrights are established with the creation of the software, BUG, Inc. will still need to file with the Copyright office in Washington, D.C. This is simply a registration process. There is nothing issued by the U.S. government.

BUG, Inc. will be able to protect itself against all others using its manufacturing process and from manufacturing replicas of its recording devices, by applying for a patent. This is a long process, usually taking about two years.

For the protection of its devices, company image, and company liability; BUG needs to understand that there are many laws that protect businesses while doing interstate and international e-commerce. First of all there is the IP address, which will be BUG.com, but initially BUG will need to purchase this, after doing so, BUG needs to ensure that its namesake and BUG.com website is protected by filing for a trademark and registering the BUG.com name on, www.networksolutions.com.

BUG also has issues like security privacy to worry about, to ensure that its website is secure for consumer information to be broadcasted. BUG needs to get encryption like the ever popular HTTPS. This will secure the information that will be broadcasted through its website; keeping it private and safe.

Another situation would be infringement of employees working for BUG. Steve had been hired by BUG, but is actually “undercover” for a competitor of BUG, WIRETAP. Many things could happen to Steve if he is giving information about BUG to WIRETAP.

Section 18a “A section of the Securities Exchange Act of 1934, that imposes civil liability on any person who makes false misleading statements in any application, report, or document filed with the SEC.” ( Allbusiness.com).

If Steve were caught sharing company secrets that he acquired at BUG, with his current employer at WIRETAP, he would be immediately terminated and potentially face civil liability charges if BUG decided to take Steve to court. If convicted those charges could include monetary damages awarded to BUG.

If BUG, Inc. decided to sue WIRETAP, they would do so under civil liability law and seek monetary damages to any harm that Steve may have caused while he was employed with the company.

Walter, a security guard for BUG, found out that Steve works for WIRETAP. He decided to interrogate Steve in a soundproof room for 6 hours, threatening to hurt him if he didn’t talk. Walter let Steve go home after Steve finally talked. Walter did commit a tort. He didn't personally injury Steve, but Steve could say he is emotionally distressed due to the fact he had him alone in a sound proof room and Walter threatened to hurt him if he didn’t give him information. The law suit could be for punitive damages. These are damages that are awarded to punish the defendant so this type of conduct won’t happen again.

If BUG, Inc. wants to bring a successful action against wiretap for civil Rico, it needs to prove the equipment that is being driven by the software is written by BUG employees. BUG, Inc. needs to prove the electronic devices being used by the law enforcement agencies telephone that wires, cell phones, etc. is a product manufactured by BUG.

Types of damage that bug might receive is that the whole company