Assessment - Read the scenario and answer the questions.
Scenario:
Pure Drink is an Australian based manufacturer of soft drinks. Pure Drink has devised a new and interesting drink flavour by combining sugars and food syrups in a certain manner. Amazed at their new product, the staff all try the refreshing beverage well before it is aimed to hit the market, to see whether the product has the desired taste. No one can get enough of the drink and it has better nutritional value than its competitors, making it a very marketable product. The CEO of Pure Drink, Mr Caleb, wishes to obtain a patent on the process used to develop the new flavour as well as the resulting product. Whilst all the raw materials which go into the creation of this new flavour have been around in soft drink production for many years it is the particular method of combining the ingredients which give rise to the unique taste.
Mr Caleb is so excited about his new product that he took a sample to market immediately, to confirm his suspicions that the product will be a massive success. He took 100 of the sample size bottled drink to a local market with a promotional price of $2 each and within hours all the bottles are sold to very happy customers. As Mr Caleb is very keen to sell the drink all over the world, he is strategically
planning the marketing of the product. In his effort to uniquely market the product, Mr Caleb come across the profile of Mr David, who is a UK based wellknown bottle designer. Mr David has helped so many soft drink factories to be identified by designing unique bottles used to sell their drinks.
Mr Caleb is now prepared to obtain the patent on the process for making the soft drink, and he is also planning to enter into an agreement with Mr David for the designing and manufacturing of the bottles. Advise Mr Caleb on the following issues:
1. What is patentable about Pure Drink's product? Can the product fulfil the patentability requirements?
2. What is the relevant process for obtaining a registered patent?
3. If Mr Caleb cannot obtain a patent, what other forms of intellectual property protection could Mr Caleb pursue?
4. As Mr Caleb would like to enter into a contract for designing and production of the bottle with Mr David, advise Mr Caleb on important
points which he should consider to include in the contract.
5. As Mr Caleb is keen to sell the product all over the world, what should he do before the product is distributed for sell in different countries?
6. Which one of the INCOTERMS is more suitable for Mr Caleb? Justify your answer.
7. Which type of payment method is more appropriate for the contract? And, why not the other payment methods? 5%
8. Which dispute settlement method should be included in their contract? Why?