Intellectual Property and Software

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Intellectual Property and Software CCT490: Week 5 Intellectual Property and Software Yuri Takhteyev University of Toronto October 6, 2010 This presentation is licensed under Creative Commons Attribution License, v. 3.0. To view a copy of this license, visit http://creativecommons.org/licenses/by/3.0/. This presentation incorporates images that belong to other authors – see individual images’ sources for copyright information.

“public goods in the technical sense”

Solutions - the government - other large actors - secrecy

Public Solutions - compel - hire / support - reward - help capture the value

Prizes - can encourage secrecy - centralized - not for poor inventors

Helping Capture the Value - patents - copyright both are legal monopolies

Patents Copyright - ideas - require approval - expression - automatic (now)

Hiring, prizes Patents, © - centralized ☹ - can cost too much ☹ - costs shared by all ☹ Patents, © - de-centralized ☺ - can cost too much ☹ - costs born by users ☺ - deadweight loss ☹

Deadweight Loss customers’ surplus P B deadweight loss revenue A C Q

“Costs Too Much” - overpaying - duplication of effort - overhead consider the risk of under-investment!

What Is the Best Approach?

IP in Software

Old Days Letters Patent: “an open letter or document... issued by a monarch or government to record a contract, authorize or command an action, or confer a privilege, right, office, title, or property” (OED) “Stationers Company” - a monopoly on printing

Patents for Inventors First on one-off basis Then at discretion of the monarch Finally formalized - Venice: 1474 - England: 1623 (“Statute of Monopolies”)

Statute of Anne (1710)

Patents: for devices Copyright: for books Practically Speaking Patents: for devices Copyright: for books

Patents: ideas (for building things) Copyright: (embodied) expression Baker v. Selden (1879) Patents: ideas (for building things) Copyright: (embodied) expression

Software Patents: USPTO: “not really” (1960s) Copyright: A text? Maybe... (US: 1964–) Trade Secrecy: An open secret?

CONTU “computer programs, to the extent that they embody an author’s original creation, are proper subject matters of copyright”

Implementation (US) Computer Software Copyright Act of 1980: - Added “computer programs” to the 1976 Copyright Act - Applies to binary software too

Nuts and Bolts Reverse engineering - ok (exceptions apply) Protection for user interface - generally ok to copy (“virtual identity” standard)

Implemented as one of the 1988 amendments to Copyright Act Canada Implemented as one of the 1988 amendments to Copyright Act covers “computer programs”, defined as “a set of instructions or statements, expressed, fixed, embodied, or stored in any manner, that is to be used directly or indirectly by a computer to bring about a specific result”

Special 301 Reports Possible US trade sanctions against countries not offering IP protection

“harmonization” Both require copyright protection for software WIPO and TRIPS (1990s) “harmonization” Both require copyright protection for software

Software Patents (those are not exactly patents on software per se) the boundaries are a bit blurry

IP for publicly funded research Bayh-Dole Act (US, 1980) IP for publicly funded research

Questions?