Intellectual Property

Professor Ashley

 

Intellectual Property in Context

PROBLEM I

 

Ace Breweries has, for over fifty years, produced and marketed beer and ale in kegs, bottles and cans in the area of the United States west of the Mississippi. Ace is now preparing to introduce a new product into its line‑‑malt liquor, to be called "Ace's Volt.”

 

Ace's marketing department has proposed that the campaign take an American colonial theme. Working with the company's design department, it has configured the Volt can to resemble a pewter ale mug. The wall of the can slopes slightly inward from the base, and a cut‑out handle, designed to be pulled out and back from the wall of the can, is a stylized version of a traditional mug handle. The can is pewter‑colored and bears a red oval emblem with the imprinted word, "Volt," predominant and, beneath it, the phrase, "Ace's Volt‑‑Always Good for a Jolt."

 

The top of the container is designed to be removed easily by an action consisting of grasping and pulling upwards on an attached aluminum loop. Unlike the pull‑out tab employed on other beer, ale and malt liquor cans, which affords only a narrow opening, the entire top is removed to enable drinking directly from the mouth of the can. The marketing executives hope that, aside from fitting into the mug concept, this new design will win new customers by making consumption easier; their theory is that the new design will curtail the amount of air taken in with swigs from the can, consequently reducing the incidence of a painful syndrome known in the trade as "beer drinker's burp."

 

One reason the concept of making the entire top removable had not previously been employed by others is that, whenever it was attempted, the resulting can was too weak to contain the pressure required for storage of beer, ale or malt liquor. To employ this new form of top without sacrificing the container's capacity to maintain the necessary pressure, Ace's package design department, after considerable experimentation, arrived at a new method of container construction, accomplishing a significant advance in the can manufacturing art.

 

What forms of intellectual property protection might be available for the pewter mug container? What elements of the pewter mug container might be protected by each of the available bodies of intellectual property law?

 

Assume that Ace takes advantage of every available form of intellectual property protection and that a competitor begins marketing malt liquor in a container that is identical to the volt container in every detail.  What rights, if any, would Ace have against the competitor?

 

Ace is interested in licensing a Philadelphia-based brewer to manufacture and distribute Volt in the pewter mug container in the area east of the Mississippi.  Representing Ace, what kinds of clauses would you try to get included in the licensing agreement?