Suppose that you (along with your classmates) are stranded on an uninhabited isl

Question

Suppose that you (along with your classmates) are stranded on an uninhabited island rich in all natural resources. You must figure out how to assign property rights to the various resources found on the island. A small group forms a "government" responsible for assigning, defining, and enforcing rules. The group has decided that "first in time, first in right" is a good rule to try out. But as the following two disputes come before you for adjudication, you are beginning to realize that "first in time, first in right" is not a sufficiently detailed rule for life on the island. Dispute#1: Two of the island's new inhabitants, A and B both pursue a fox and shoot it down. A fires the bullet which hits the animal first. B finds the animal first and skins it to obtain its fur. You be the Judge: Who should get the fur? Explain the rationale for your decision.

Dispute#2: Two inhabitants of the island, let's call them C and D, have invented the same transportation device but independently in different parts of the island. C has constructed the vehicle and has been using it to transport goods and people for the past several months. D has just finished constructing the vehicle and has applied to you for a patent. C learns of the patent application, and files a claim that C should get the patent right instead because C invented it first.

You be the Judge: Who should get the patent rights?

Explanation / Answer

According to the first in time first in right rule, an entity whose interest in a property is first established prevails over the parties who subsequently acquire the right in the same property.

Dispute#1:

I would make judgment in favor of A because A has recorded the property interest on the fox by shooting it down with his/her bullet. B has found the animal only after A established the property interest and hence A’s rights would prevail over B. Hence A should get the fur.

Dispute#2:

C should get the patent rights. Patent right should be given to the invention which is novel and non-obvious. The invention should not be used publicly by another inventor within a year of the date of filing patent application. Here C has already constructed and started using the vehicle for transporting goods and people months before. Hence C has already established its property interest on the invention before D by using the invention publicly. Hence C should get the patent rights for the invention.

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