When a business is created that it can be held liable for personal staff, environment, and malfunction of products, advertising and trade? Laws have been established to protect companies in addition to laws that prohibit companies from mishandling services and product. The information below gives scenarios on what is defined as the “Intellectual Property Rights” (Cheeseman, 2007). Identifying the legal functions of a business is essential for the development of a business being created.

The advantages of laws and acts being establishing for business improves a since of security for companies. The “Federal Lanham Trademark Act” which was established by Congress in 1946 to provide federal protection to trademarks, service marks, and other marks, It is intended to protect the owner’s investment and goodwill in a mark” (Cheesemen,2007). For example, the company Bug, Inc’s., logo is a “ladybug with headphones” (Cheeseman, 2007). This trademark will “prevent consumers from being confused as to the origin of goods and services” (Cheeseman, 2007)This leads to trademark infringement which means any person whom is not authorized to use any part of the logo or mark will and can get sued under this infringement.

Having patents on products are supported by law of “Patent Infringement” which, supports the unauthorized use of another’s patent. Bug, Inc. wants to expand in the area of international trade and establish a domain name with these upgrades the company will benefit greatly. The “Computer Software Copyright Act,” amendments include computer programs in the list of tangible items protected by the copyright law. The creator of a copyrightable software program obtains automatic copyright protection” (Cheeseman, 2007).

In the computer world having a domain name is a form of advertisement. Many types exist to choose from. In conducting e-commerce business having a web site is considered as the face of the company.