Sesamware is a Japanese software company which is very popular for open source software. Sesamware got international approval with an online multiplayer fantasy dimension game, Para World in mid-1990. Para world was very popular in the world between 2001 and 2004. Firstly, it was installed as part of the bundle downloaded by hundreds of millions of gamers around the globe. The open source code helped to easily adapt every facet of computer life for all platforms and operating, networking, navigation and security systems. Question (1)
A patent is a form of intellectual property. It consists of a set of exclusive rights granted by a sovereign state to an inventor or their assignee for a limited period of time in exchange for the public disclosure of the invention. Patent is the most likely infringed because patent is a legal framework that establishes a patent system which supports and encourages technological innovation and promotes economic development. Patents defend inventions and processes. Patents set time for bars for 20 years. It doesn’t give right to others to use their inventions.
An infringement of a patented invention involves: • Any unauthorized manufactures • Use • Sale • Imports or Exports Actions for infringement: A business can be temporarily or permanently prohibited from manufacturing or selling the infringing product or process. Patentee can sued who used that patented product and claimed for losses and reasonable compensation. Cost associated with law suits is high. The 1996 anti-counterfeiting consumer protection act it the most recent legislation initiative and provides for other rights like statutory damages for non-willful infringement.
Question (2) Monopoly and Dominance is the situation in which one seller or company in the whole market for a given type of product or services. It arises due to an absence of competition which offers results high prices and inferior goods. In monopoly, whole business runs by a single person who takes all decision. There is just a one person who sells products or services and there are no incentives which help to break this monopoly. There are many monopoly industries in the market.
In monopoly, they use patents because they don’t like if someone’s copy their inventions. Adversely effects on international market and trade The first price for game software was $US5. 99 and it was unchanged. Low fee made it impossible for the majority of software companies to compete and most of the competitors were either bought by SesamWare or went out of business within three years. SesamWare was once again at the center of an international lawsuit, this time for subverting free market competition. Question (3)
There is Competition Law which governing the Sesame’s behavior is the law that promotes and maintains market competition by regulating anti-competitive conduct by companies. To enforce this law globally, it should be regulate by W. T. O and ICC. Competitions laws can be enforced globally through these organizations are: • World Trade Organization (WTO):- WTO is an international agency which is helping the nation members to provide barriers free trade and settle the disputes those are arise between nations while trading. It ensures the smooth and fair business activities
between different countries. It was generated from GATT. • International Chamber of commerce (ICC):- Commission on Competition The ICC commission on competition ensures that the needs of modern business and global market’s realities are taken into account in the formulation and implementation of competition laws and policies. It was made to improve world business by promoting trade and investment, open markets for goods and services, and the free flow of capital. These two organizations have power to enforce this law worldwide General Agreement on Tariff and Trade:
This organization was modified in 1994, and generated to World trade organization. This also had power to enforce this kind of rule world wide Question 4 It is used primarily to prohibit the suppression of free competition by making illegal four business practices: The Clayton Act It is operating and managing the activities and trade between the corporations in the US. It also handles the mergers and acquisitions and reducing the price discriminations. * Price discrimination, which is the sale of the same product to comparably situated buyers at different prices.
Initial, SesamWare set its price for game was very low as compare to market value and competitor’s price. Eventually, competitors went out from the market and some of them took over by Sesamware and after that they established monopoly in the market by setting higher price like US$150 as annual fees for that game. * Corporate mergers, the acquisition of competing companies by one company. The U. S. Federal Trade commission Act It has great empowerment for preventing the persons and corporations from using the unfair methods of competition.
In this case study, Sesamware used unfair competition method, because they set very lower price (U. S. $5. 99) as compared to market price at that time. U. S. claimed jurisdiction with this act, because this act extends the unfair methods of competition used in exports trade against competing exporters. These practices are illegal when they might substantially lessen competition or tend to create a monopoly in any line of commerce. By making the suppression of free competition unlawful the Clayton Act supplements the provisions of the Sherman Act, which outlaws monopolies.