Impact of Regulatory Agencies on Dispute Resolution and Business Transactions of Bonner

This memo assesses the impact of regulatory agencies on dispute resolution and business transactions of Bonner. It discusses patent infringement, ownership of intellectual property rights, dispute resolution, liability of the Vice President, legal and ethical duties, and risk management procedures.

Running head: BUSINESS ETHICS
Business Ethics
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1BUSINESS ETHICS
Table of Contents
Reason that Bonner is the owner of the invention and intellectual property rights:........................3
Method of dispute resolution:..........................................................................................................4
Liability of the Vice President of Bonner:.......................................................................................4
Legal or ethical duties in disclosing stock purchase to the necessary users:...................................4
Risk management procedures for Bonner:......................................................................................5
References:......................................................................................................................................6

2BUSINESS ETHICS

3BUSINESS ETHICS
To: The Board of Directors of Bonner
From: The CEO of Bonner
Subject: Patent Infringement
Date: 28/06/2018
This memo is prepared to assess the impact of domestic and global regulatory agencies
and court systems on dispute resolution and business transactions of Bonner. The patent dispute
that has occurred with the German firm has been discussed briefly in this memo to know whether
any breach of law is made by Bonner. This requires consideration of a variety of factors that
might help in settling the dispute taken place. Hence, the following factors are considered for
discussion:
Reason that Bonner is the owner of the invention and intellectual property rights:
Bonner is considered as the owner of the invention depending on a patent developed on
the part of the business owners. In the words of Chen (2016), intellectual property rights are the
rights that an individual or an organization holds to enjoy exclusive rights in using owns plans,
ideas or intangible assets without concern for competition for a limited timeframe. A court via
lawsuit might enforce such rights. The rationale for intellectual property is to promote innovation
without worrying about competition that a rival might steal the idea or take credit for the same.
In case of Bonner, it has a particular rationale for intellectual property rights. Recently, Bonner
has declared the launch of a new tractor with technology developed on patent invention
established on the part of the managers of the organization (Spulber, 2018).

4BUSINESS ETHICS
Method of dispute resolution:
“German Farm Equipment Corporation” accused Bonner of patent infringement by
sending a letter to the latter organization. The dispute resolution should be held in a court in US
due to a certain reason. Bonner has declared the launch of a new tractor with technology
developed on patent invention established on the part of the managers of the organization. In
order to resolve this dispute, litigation is deemed to be the most effective strategy. It is necessary
for the German firm to provide adequate and detailed evidences to the judge, which would
validate the fact that Bonner conducted patent infringement (Holbrook, 2015). The letter
provided by the German firm did not contain detailed evidences to prove that Bonner is guilty of
patent infringement.
Liability of the Vice President of Bonner:
In this case, Bonner could be accused as liable for insider trading. As commented by
Holbrook & Osborn (2014), insider trading could be considered as purchasing or selling of a
stock by an individual having access to material non-public information regarding the security.
This type of trading could be legal or illegal based on time insider trading is made. If the material
information is not disclosed to the public, insider trading would be illegal. Despite the fact that
the Vice President of Bonner is aware of the new product offering, the individual purchased
100,000 shares of Bonner before the declaration.
Legal or ethical duties in disclosing stock purchase to the necessary users:
Bonner is obliged to perform ethical and legal fiduciary duties for disclosing the share
purchase to the board of directors. This is because the insider needs to perform a fiduciary duty
of absolute good faith and entire loyalty to the organization. In other words, the individual needs

5BUSINESS ETHICS
to act that best suits the requirements of the organization. The individual is not entitled to make
personal profits at the cost of the entity other than the contractual salary provided by the same. In
addition, the organization has legal and ethical duties in order to disclose all information to the
public (Shapiro, 2016). The ethical duties of Bonner include relevant disclosures to the public, as
it would help them in analyzing the actual financial condition of the organization in the US
market.
Risk management procedures for Bonner:
Based on the provided evaluation, Bonner needs to take into consideration certain risk
management strategies, which are enumerated briefly as follows:
 The organization could enforce program of monthly education for their staffs related to
insider trading so that situations like above-mentioned one could be avoided or
minimized.
 It could think of appointing compliance officers for ensuring that the employees of the
organization are adhering to regulatory compliance. This could be carried out by
monitoring the staffs along with reinforcing the company policy related to insider trading
(Mueller, 2015).
 Bonner could enforce a code of ethics and it would be mandatory for all the staffs
working in the organization to comply with the same. Hence, this would prohibit the
staffs to adopt any unscrupulous practices for their personal benefits.

6BUSINESS ETHICS
References:
Chen, F. C. (2016). Divided infringement in the limelight of the patent battle field. Trends in
biotechnology, 34(10), 771-773.
Holbrook, T. R. (2015). The Supreme Court's Quiet Revolution in Induced Patent
Infringement. Notre Dame L. Rev., 91, 1007.
Holbrook, T. R., & Osborn, L. S. (2014). Digital patent infringement in an era of 3D
printing. UCDL Rev., 48, 1319.
Mueller, J. (2015). Remedies for Patent Infringement: Enhanced Damages and Willful Patent
Infringement.
Shapiro, C. (2016). Patent remedies. American Economic Review, 106(5), 198-202.
Spulber, D. F. (2018). Finding Reasonable Royalty Damages: A Contract Approach to Patent
Infringement.