A Group of Engineering Students Set Themselves to the Task

question 54

Essay

A group of engineering students set themselves to the task of creating a motor powerful enough to run a car using solar power rather than gasoline. Two years into the project the students managed to create a prototype vehicle that was functional and environmentally friendly. The media was called, and several newspapers ran stories about the students, and how the students were going to try to sell their idea to a car manufacturer. Soon after, the students received a letter from an oil company informing them that it already owned the patent for the solar motor and that the students' motor, if sold, would be infringing the oil company's patent. Is the oil company correct? It turns out that the oil company held the patent, but was not marketing it for fear of losing profits on its oil sales. What does this situation say about how patent law balances private rights with the public good?

---

Definitions:

ETFs

Exchange-Traded Funds, which are investment funds traded on stock exchanges, similar to stocks, and hold assets such as stocks, commodities, or bonds.

Capital Gain Distributions

Payments to shareholders or fund investors from the sale of securities within the portfolio that have appreciated in value.

Income Distributions

Payments made from a fund or an entity to its shareholders, often derived from interest or dividend income.

NAV

Net Asset Value, the total value of a fund's assets minus its liabilities, often used to price each share of a mutual fund or ETF.