Analyzing Intellectual Property Rights in Acme vs Beta Case

This case study examines the intellectual property rights dispute between Acme Inc. and Beta, focusing on a patented drug invented by Acme and subsequently copied by Beta. The analysis covers the implications of intellectual property, the potential for alternate dispute resolution, and the...Read More

Running head: INTELLECTUAL PROPERTY RIGHTS AND ITS IMPLICATIONS
INTELLECTUAL PROPERTY RIGHTS AND ITS IMPLICATIONS
Name of the Student
Name of the University
Author Note

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Introduction
Intellectual property is a product of a creative mind which involves providing solutions to
the general problems which has commercial benefits. These innovations have certain symbols,
names, artistic works, and industrial design possessing a monetary value (Moore, 2017). The
intellectual property is an intangible asset which can be used for business purposes for generating
revenue. It can be traded because of its immense benefits which it provides to the users. These
invention can be patented which means that no one can copy the product and commercially trade
it. This provides a facility provide protection to the company and the inventor by granting
intellectual property rights. In the tussle between Acme and Beta, where Acme Inc. invented a
drug for providing to immortality to all was copied by a rival drug company. Acme invention
was remarkable and it obtained a patent for its invention of a drug. Though the product was
patented, Beta took an unethical opportunity to copy the product and bring into the market. The
product was sold at charge to cover the expenses incurred in the process of the manufacturing.
The clash of ethics in these two companies are further diagnosed under suitable headings to
critically analyze the situation.
Implications of intellectual property
According to World Intellectual Property, “Intellectual property rights reward creativity
and human endeavor, which fuel the progress of humankind”. The aim of the rights is to provide
a commercial value and financial security to the creations of the individuals who toil day in and
day out for inventing products. These rights inculcates a confidence among the inventors to
create products and find solutions to the societal problems. The rights ensures to build a
scientific temper among the young minds of the people across the different corners of the

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product. In this case, the intellectual property of the company has been imitated and used for
making commercial benefits. This is ethically wrong as when a product is patented it should not
be copied by another pharmaceutical company. Further, a drug has a massive impact on the
human race which must be used legally and ethical. A drug which can provide immortality can
be highly misused if not regulated and framed within the framework of intellectual property.
Beta Inc. has copied a patented product and sold an imitated product in the market without any
checks and balances. The tussle between the companies needs to be resolved through monetary
compensation. However, the issue can be resolved through alternate dispute mechanisms as
mentioned below.
Alternate Dispute Resolution
Alternate dispute resolution is an effective method to resolve intellectual property issues
which is done to cut down costs involved in the expensive process of litigation. This is a flexible
approach to expedite the resolution of the cases. This is applicable when both the litigating
parties desire to maintain a confidentiality of the case. This provides the parties to resolve
mutually where the interests of the both parties are kept intact thus forming long term relations
between the companies. Litigation process is not only expensive but also a lengthy time
consuming process which the parties can opt to resolve their issues without getting trapped in the
legal process. The hefty fees of the attorney can also be avoided in this mechanism. The US
Congress has enacted Alternative Dispute Resolution Act (ADR Act) in 1998, which has
enabled the legislative courts to popularize the alternative dispute resolution programs (Arnold,
2014). This has been a transformational effort and structural depart from the complex process of
litigation. The parties have liberty for tailored-made resolution process especially in the patent
cases thus easing the whole process in case of intense dispute. The litigation process also have an

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adverse impact on the commercial business as well as affects the urgent demand of the human
needs. Hence, alternate dispute resolution is window to wrap up the whole issue in a phased and
effective manner.
Ethical dilemma faced by Acme
Acme Inc. had successfully acquired patent rights for its drug which is the foremost
action to been done when inventing a product having a huge commercial potential in the drug
market. An imitated product developed by Beta was a clear call of patent infringement of the
Acme. Acme deserves a compensation as being the sole inventor of the drug. Bringing an
imitation of a drug and selling it only to cover the cost of manufacturing has blatantly defied the
efforts of Acme. However, Acme should charge illegitimate costs for the loss it had to suffer due
to not bringing the product in the market despite patenting it. Further, Acme should not indulge
in resolving the issues unethically being a victim of the issue. Due to commercial losses Acme is
entrapped in a conflict of interest to charge adequate compensation and not take the unethical
route to charge exorbitant amount for the patent infringement by Beta Inc.
Recommended course of action for Acme
Acme should sue the company Beta for infringing the patents right however if the
company wants to refrain from engaging in long legal process it can also go for alternate dispute
resolution. In case of alternate dispute mechanism, the company can demand adequate
compensation which can be used for improving the drug and can also recover costs involved in
patenting the drugs. The company needs to resolve the whole issue ethically. According to the

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utilitarian theory, which proposes that the value of a particular action taken in the course of
action is determined by the inner satisfaction or happiness derived from the act.
Ethical dilemma faced by Beta
Patent infringement is a commercial offence which has been committed by the Beta Inc.
The company has definitely taken a wrong move and taken a major depart from ethical business.
The company will also be unwilling to accept its unethical practice as it show that the customers
were charged only to recover the manufacturing costs of the products and not for a profiteering
motive. The company will also sight that since this drug was an immediate need for cancer
patients and Acme was unwilling to market the product for the benefit of a huge number of
human beings suffering from cancer, it had to take the effort for the welfare of the cancer
patients. The company though has infringed the patent rights, its move can be justified on the
humanitarian grounds. The motive can be good behind the business yet it is against the rights of
intellectual property. Beta should take a firm stand on the issue accept and provide just reasons
so as to overcome the ethical dilemma of deontology. Deontology is a unique approach which
focus on the right or wrong of action taken by oneself, as opposed to the rightness or wrongness
of the consequences of those actions (Gibson, 2017).
Recommended course of action for Beta
Beta Inc. should provide for the losses incurred by the Acme. This is the ideal step and
within the framework of deontology of ethics. The company can also opt for alternative dispute
resolution if it considers the utilitarian concept of ethics as the utmost priority for the welfare of

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the human race. This will not only save time and massive financial resources that can absorb the
company’s resources but also provide Acme adequate compensation. However, if Beta opts for
legal channel to justify its actions is not infringing upon the patent rights of the Acme Inc. it will
have pocket hefty fees of the attorney, since its actions have broken a law and abiding the legal
route can cost heavy for the company (Orozco & Poonamallee, 2014). Both parties can resolve
their issues by coming into terms amicably, for the drug is a landmark achievement for the
human race. It has huge potential in the coming future which should be understood keeping
within the framework of utilitarian concept of ethics. Following this concept will ensure that the
needs of both the companies are met adequately. The happiness quotient also remains intact in
the whole course of action of both the parties. Both the company can come forward in improving
the product by funding and investing in the research and development. This will enable the future
generation to cure fatal disease and help in capacity building of the human resources. The utility
of the people as well as the parties involved in the tussle will also gain.
Conclusion
Intellectual property has been a contested area since time immemorial and many
company get trapped in the complex legal process. Not following the right business ethics,
absorb much of the financial resources of both the contested parties. It is suggested to opt for
right path where the welfare of the public is large is involved. Copyrights, patent, trademark
facilitate in ease of doing business in the country and beyond geographical boundaries. The good
intellectual property enables the youth to enhance their entrepreneurial skills and ultimately
transform the youth from job seekers to become job providers. The sound ethical system in the
business is essential for the economic prosperity of the country.

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References
Arnold, D. G. (2014). Ethical theory and business. T. L. Beauchamp, & N. E. Bowie (Eds.).
Pearson.
Gibson, J. (2017). Intellectual property, medicine and health: current debates. Routledge.
Moore, A. (2017). Intellectual property and information control: philosophic foundations and
contemporary issues. Routledge.
Orozco, D., & Poonamallee, L. (2014). The role of ethics in the commercialization of Indigenous
knowledge. Journal of Business Ethics, 119(2), 275-286.