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The Steamroller Effect

There is an unnerving trend facing in this federal lawsuit indicate that
American businesses today: small Virgin Enterprises believes the
companies are finding themselves defendents named, "registered the domain
embroiled in legal battles with an names VIRGINTHREADS.COM,
alarming frequency. These independent VIRGINFASHION.COM, VIRGINCIGAR.COM,
businesses, many of which are small-scale VIRGINPUBLISHING.COM, and with bad faith
operations that survive on a meager intent to profit from VEL's VIRGIN mark
budget, are faced with defending their and with specific intent to mislead
intellectual property rights- everything consumers."(13)The owner of Virgin
from their company name to the items they Threads, LLC, Jason Yang, says this of
produce and sell. Legal battles over his current situation, "I had planned to
intellectual property have a varied trademark Virgin Threads soon but in
effect on the general public, who will November 2004, I was served with the
eventually pay the price of court cases lawsuit and my lawyer suggested that I do
aimed at those who lack the available not try to trademark the name until after
means to fight back.In order to the lawsuit."When asked if he intended to
understand the current battle, one must bank off the household recognition of the
first understand what Intellectual name Virgin, Mr. Yang responded, "No, I
Property is. Intellectual Property is never considered Virgin Threads to be
defined as "Property that derives from similar to Virgin Enterprises in any way.
the work of the mind or intellect; specif The thought had never crossed my
An idea, invention, trade secret, mind."While Mr. Yang continues to fight
process, program, data, formula, patent, the attempt to shut down his website, the
copyright, or trademark or application, cost of the battle continues to rise.
right, or registration relating thereto". Because of this, the Virgin Threads
(1) What does this mean in layman's website features a new department
terms? Intellectual property is an item entitled, "Legal Fund". The unique
with commercial value, such as a new designs sold in this section help raise
purse design, that can be protected by money for the defense against Virgin
patent, trademark or copyright law.Many Enterprises, with a portion of each sale
business owners in the United States are going toward the Virgin Threads Legal
surprised to find that Intellectual Defense Fund.Despite the recent headlines
Property rights originated with the and media attention, the majority of the
Constitution (Article 1, Section 8, consumer market remains unaware of these
Clause 8)(2), which states that Congress lawsuits and the dangerous trend they
shall have the power "to promote the represent. Of those who are aware, many
Progress of Science and useful Arts, by do not realize the true effects that will
securing for limited Times to Authors and result from these court battles.If the
Inventors the exclusive Right to their current bias is allowed to continue
respective Writings and Discoveries."It unchecked, it will leave the consumer in
seems that even the founding fathers felt a precarious situation- staring in the
that we should have the right to alarming visage of a monopoly. The rising
exclusive ownership and use of our costs of protecting and defending
inventions, as well as the right to reap intellectual property, along with the
the rewards gained by granting permission cost to defend against percieved
of use to others.Protection Under the violations, make an extremely hostile
LawToday, there are three methods through environment for small businesses to
which intellectual property can be survive in, while rendering their growth
protected. These methods include patents, nearly impossible.With the
copyrights, and trademarks.* A patent disproportionate resources available to
protects "exclusive rights to a process, each catagory of businesses, it takes
design, or new invention". (3)* A only an allegation of infringement to
trademark protects "a name, symbol, or bankrupt many of the so-called "little
other device identifying a product". (4)* guys". This ability by large corporations
A copyright protects "literary, musical, to remove their competition from the
dramatic, or artistic work". (5)The cost outset leads directly to a dominance in
of enacting these methods of protection the marketplace.Marketpace dominance (or
can be exorbitant. An excellent example more plainly described as a monopoly) has
of the fee for protecting your work is a direct effect on consumers in the form
the price tag attached to a patent, which of limited choices and higher prices,
can range from approximately $400 to something even the famous 18th century
$1,000 or more. According to one law English economist Adam Smith recognized
firm, the actual cost to file a patent when he declared: "The price of monopoly
for something easily described is roughly is upon every occasion the highest which
$2000, while something more complicated can be got."The Loss of Small
can incur a fee up to $10,000. (6)While BusinessesWith the monopoly in place,
filing for a trademark is typically less consumers are not only limited on their
expensive, the process can still rack up choice of product, but they could easily
fees in excess of $1,000 to $1,500 per be forced to pay inflated prices for
application. (7)The average start up imported goods.Many large companies are
investment for an arts and crafts now outsourcing their labor to other
business is $9,000.(8) When you take into countries. As once media source reports,
consideration the requirements on city, "Forrester Research estimates that by
county, state and federal levels for 2015, as many as 3.3 million US jobs and
business licences, the amount paid out $136 billion in wages will move not only
for basic office supplies, the cost to to India, but also to China, Russia,
generate a website or other marketing Pakistan, and Vietnam."(14)Can we afford
materials, and the cost of ordering the to lose our small companies? Here's a
necessities to produce a final product, closer look at what small firms (with 500
there is little room left in the budget or less employees) bring to the United
for filing for these most basic States:Small firms* Represent more than
protections under the law.There is more 99.7 percent of all employers.* Employ
to the story than just the fees incurred more than half of all private sector
when registering for a patent. Every employees* Pay 44.5 percent of total U.S.
patent can be challenged, with many private payroll.* Generate 60 to 80
leading to trial cases with outrageous percent of net new jobs annually.* Create
amounts of money exchanging hands. As one more than 50 percent of nonfarm private
law firm reports, the average cost of gross domestic product (GDP).* Are 53
patent litigation through trial can range percent home-based and 3 percent
from $500,000 to near $2,000,000- and franchises.(15)As these smaller firms
that amount is only for one of the close their doors, local economies
constituents! These costs can climb suffer. Ramifications from these closures
rapidly for high profile cases requiring can take on a ripple effect, bringing
intensive work by the litigator, as higher unemployment rates and affecting
patent attorneys charge roughly $200-$500 areas of life one might never suspect.One
per hour.(9)Importance of Intellectual study purports that, "The social costs of
PropertyPeople often underestimate how unemployment" can influence everything
essential intellectual property rights from mental health to the cost of social
can be to a business. The media is rife programs such as Social Security.(16)It
with examples of battles over is clear that we, as a society, need to
intellectual property, which range in take steps to prevent the bastardization
severity from questionable copying to of our economy in every arena available.
blatent theft.We can look to the recent We must act to protect our small
media headlines for a more in depth view businesses from extinction.The current
of the problem at hand.Earlier this year, system must be examined and changed to
Nike, Inc. issued a formal apology to allow small businesses to protect
"the members of iconic Washington, D.C., themselves and thier intellectual
hardcore act Minor Threat and frontman property. Corporations need to be held
Ian MacKaye's Dischord Records for "the accountable for their attempts to create
creation of a tour poster inspired by a monopoly, and the resource gap must be
Minor Threat's album cover"".(10) Why was closed in regards to the legal
Nike, Inc. issuing an apology? MTV system.While there is no simple solution,
reports that, "The poster, for Nike's there are routes that can be taken to
Major Threat skateboarding demo tour meet these requirements. However, those
(used to promote its newest line of SB routes will never be opened until this
shoes), misappropriated not only the problem has been acknowledged by both the
Minor Threat logo, but the imagery from public and the lawmakers.The time has
the band's 1981 self-titled EP and its come for this acknoweldgement. It is time
1988 Complete Discography." (10) Sources to put an end to this steamroller
have not published any further effect.Bibliography:(1) "intellectual
information on the topic.Another example property." Dictionary of Law.
of this infringement of intellectual Merriam-Webster, 1996. GuruNet Corp. 15
property can be found in the case of Jul. 2005. Articles of the Constitution,
Margaret Nicole of Manhattan and "patent." Investopedia. Investopedia
Abercrombie & Fitch Co..According to the Inc., 2000. GuruNet Corp. 15 Jul. 2005.
New York Times, Abercrombie & Fitch Co. "trademark." The American Heritage(R)
was selling a bag identical to those made Dictionary of the English Language,
by Margaret Nicole of Manhattan, and Fourth Edition. Houghton Mifflin Company,
Margaret Nicole of Manhattan owner Nicole 2004. GuruNet Corp. 15 Jul. 2005. The
Dreyfuss "said that within two weeks, American Heritage(R) Dictionary of the
Abercrombie's lawyer, Frank J. Colucci of English Language, Fourth Edition.
the New York law firm Colucci & Umans, Houghton Mifflin Company, 2004. GuruNet
agreed to pull the purse and make a Corp. 15 Jul. 2005. Fees referenced from
settlement.".(11)Defending the StoreThese "What does it cost to get a patent?", ©
stories are, however, unusual. The Copyright 1993-1998 Oppedahl & Larson
majority of small businesses do not have LLP. Fees referenced from "How much does
the means to fight large companies when it cost to file a trademark
their designs are stolen or their application?", ©2005 Meyertons, Hood,
livelihood threatened by lawsuit. Kivlin, Kowert & Goetzel. "Business
Instead, they are forced to hand over the Guide - Arts & Crafts", Copyright © 2005
results of their hard work to colossal Yahoo!(9)"PATENT INSURANCE, IS IT WORTH
corporations simply because they can't IT?", © 2000, 2001, 2002 Bruce E.
afford to defend themselves.The epitome Burdick(10) "A Brief History of
of this instance would be the current Outsourcing", (c) Terri Kelly, accessed
litigation brought against the small from Dourney is a mother, owner of
online retailer Virgin Threads, Natural Magic Soaps ( and Editor of Craft
LLC.Virgin Threads, LLC was formed in Revoution ( an online magazine dedicated
August 2004, and is currently being sued to restoring the awareness and
by Virgin Enterprises. As one media appreciation of crafts in today's world
outlet reported, "Virgin Enterprises, by promoting them, and the talented
Richard Branson's group of companies, has people who create them, as high-value,
tried to stop others from using the word desirable alternatives to the offerings
"Virgin" in names and domain of big-box stores.
names."(12)The complaint documents filed




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