Mini Case 3-1: Protecting Your Intellectual Property

question 96

Essay

Mini Case 3-1: Protecting Your Intellectual Property
Devo, Anthony, and Spencer were childhood friends who had always talked about starting a business together after college graduation. Devo had the financial background and startup capital to contribute and Spencer and Anthony had the technical knowledge they believed would give them the competitive advantage needed to become an industry leader.
During their early college years, Anthony and Spencer developed a new and innovative way to manufacture computer components. When they shared their idea with Devo, he was able to draw up a detailed business plan to present to potential investors when the three were ready to launch their venture. They had been very careful not to disclose anything about their innovative idea to other colleagues or any of their friends and were anxious to get started.
After selecting the company name "Millennium Computers" the three friends come to you for advice on intellectual property rights.
-To protect their innovative process for manufacturing computer components from unauthorized use, which type of intellectual property should the threesome apply for? Identify the office to which they should apply and outline the steps involved in the process.

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Definitions:

Depreciable Cost

Depreciable cost is the cost of a fixed asset minus its salvage value, over which the asset's cost can be depreciated over its useful life.

Partial Year

A term referring to a portion of a year, often used in the context of accounting and financial analysis for periods less than 12 months.

Gain or Loss

The financial result from selling an asset for more (gain) or less (loss) than its carrying amount on the books.

Disposal

The process of getting rid of an asset, including selling, scrapping, or another method of removal from the company's possession.