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5-22 Law, Business & Government [CH 5

Illustration 5.6
Entrepreneurs Susan and Stephen
Schutz, founders of Blue Mountain
Arts, filed a $50 million lawsuit against
Readers are Leaders, Leaders are Read- Hallmark Cards Inc. when Hallmark
introduced its line of Personal Touch
greeting cards (left in photo) similar to
Blue Mountain Arts' distinctive cards
(right in photo) that feature watercolor
artwork and poetry in handwritten
script. The lawsuit accused Hallmark
of trademark infringement and
resulted in a two-year legal battle. The
small company was successful in
protecting its card design. Under a
consent order, Hallmark agreed to
stop publishing its Personal Touch
cards, discontinue the use of the
Personal Touch name, and
repurchase cards already on store
shelves.
Photo Source: Compliments of Blue Mountain Arts, Inc.

https://www.latimes.com/archives/la-xpm-1988-10-24-mn-259-story.html, accessed 9 October 2019

Copyright law only covers the particular form or manner in which ideas or information
have been manifested, and is not designed or intended to cover the actual concepts, facts,
styles or techniques which may be embodied in or represented by the ideas or information.

For example, the copyright which subsists in relation to the Mickey Mouse cartoon
prohibits third parties from distributing the Mickey Mouse character or creating derivative
works which copy or mimic Disney’s particular talking mouse, but does not prohibit the
creation of artistic works about talking mice in general. Other forms of intellectual property
may impose legal restrictions where copyright does not.
With computers and computer software copyright law has been impacted. Apple

Corporation sued Microsoft and Hewlett-Packard in 1988 for alleged copyright
infringement and the current downloading of commercial music illustrates this important
aspect of contemporary business law.

Government Regulates Business
Both federal and state governments have enacted legislation to encourage competition

among businesses. Concurrently our legislative bodies also write legislation which
increases the cost of production, adding new and conflicting regulations, and increases tax
burdens on our business which in-turn cause them to be less productive and less profitable.
The following sections outline how government regulation influences contemporary
administrative agency business practices.
Government agency
empowered by state or Administrative Agencies
federal statutes and
constitutional provisions to Administrative agencies such as boards, bureaus, and commissions are organized at all
hear and decide a variety of levels of government with the power to decide a variety of issues. Though technically they
cases. conduct hearings or inquiries and not trials, responding parties are often represented by
attorneys. Evidence and testimony are given, and the involved agency issues legally binding

decisions based on the regulations involved.
On the federal level, administrative agencies with extensive powers are the Federal
Trade Commission, the National Labor Relations Board, and the Federal Energy Regulatory
Commission. You will find that your state administrative agencies include public utility
commissions, boards that govern the licensing of various trades and professions, and other
state regulatory bodies. In your county or city, they are the zoning boards, planning

commissions, boards of appeal, and other administrative agencies concerned with similar
matters.

Readers are Leaders, Leaders are Readers, non-readers follow!
Copyrighted Material