Creative Charlie had sketched plans for an invention,but had not yet built a prototype.He wanted to make sure that the invention could actually be manufactured before going through the expense of applying for a patent.He contracted with a local machine shop to work on the prototypes.As part of the agreement,the machine shop agreed to not disclose any information about the invention.Charlie learned from one of the employees that the owner of the machine shop had successfully built a prototype without telling Charlie and that the owner was going to begin marketing the invention in a joint venture with another firm.Could Charlie get an injunction in this situation?
A) no, this is a situation where the only allowable damages would be liquidated damages
B) no, Charlie could be adequately compensated with compensatory damages
C) yes, assuming that Charlie would likely suffer irreparable harm if others learn of his invention and it becomes public before he can obtain a patent
D) yes, because this is an anticipatory breach and injunctions can be issued in connection with any anticipatory breach.
E) no, this is a situation where Charlie has no remedies because he should have kept the invention a secret

Question

Quizplus · Accepted Answer

Charlie could likely obtain an injunction in this situation if he can show that he will suffer irreparable harm if the invention becomes public before he obtains a patent. This is because patents provide protection for an inventor in exchange for disclosing the details of the invention to the public. If the invention is disclosed before Charlie can obtain a patent, he may lose the ability to obtain patent protection and the exclusive rights that come with it. Thus, an injunction may be necessary to prevent the machine shop and the joint venture partner from further disclosing the details of the invention. Option A is incorrect because liquidated damages are a predetermined compensation amount in a contract and would not apply to this situation. Option B is incorrect because compensatory damages may not adequately protect Charlie's interests in the invention. Option D is incorrect because this is not necessarily an anticipatory breach, which occurs when a party indicates in advance that they will not perform their obligations. Option E is incorrect because Charlie did take steps to protect the invention by contracting with the machine shop to work on prototypes and requiring them to keep the information confidential.

Creative Charlie Had Sketched Plans for an Invention,but Had Not