In 1967, Two Friends from California Designed a Sailing Surfboard

question 16

Essay

In 1967, two friends from California designed a sailing surfboard that combined the sports of sailing and surfing. They originally called it a "sailboard." They filed for and received a patent, which was assigned to Windsurfing International, Inc. WSI). In 1968, WSI's Seattle dealer coined the term "windsurfing." WSI applied for and was granted trademarks for various terms using the word "Windsurfer." Between 1969 and 1976, WSI produced a particular type of board called the Windsurfer. During this time period, WSI controlled over 95% of the market. To promote sales, WSI and its employees repeatedly referred to the sport as "windsurfing" and to the sport's participants as "windsurfers." Participants, trade magazines, and the general public also used the terms, as there were no other general terms that could be used to describe this sport.In 1977, WSI began policing the use of its trademarked terms, "windsurfer" and "windsurfing." The general public continued using the terms to refer to the sport and its participants, however.
In 1984, one of WSI's competitors sued to have WSI's trademarks cancelled. What theory is the competitor espousing? How should the court rule on this issue, and why?

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Definitions:

Ethical Problem

A dilemma or situation that requires a decision to be made that involves questioning the morality of the actions or choices.

Business Decision Maker

An individual or group within an organization responsible for making strategic and operational decisions.

Long-run Profit Maximization

A strategy where a firm seeks to achieve the highest possible profit over a prolonged period, considering both current and future potential changes in market conditions.

Unethically

Behaving in a manner that is contrary to accepted moral norms or professional standards.