Intellectual Property Week 6

What is Intellectual Property? uIntangible creative work embodied in physical form ucomes from the creativity, ideas, research, skills, labor, and nonmaterial efforts provided by creators

Property rights to physical property ucreated or bought: u right to use it u right to prevent others from using it u right to set the price for selling it

As the Owner uYou may ugive it away ulend it uresell it uBUT not make copies - this right belongs to owner of copyright

Protection benefits uProtects right of creator for compensation uencourages production of valuable, intangible, easily copied creative work

Copyright and Patent uUS copyright law gives holder the following exclusive rights: u make copies of work u produce derivative works u distribute copies u perform work in public u display work in public

Purpose of copyrights and patents uencourage production of useful work uencourage the use and flow of information u Trademarks

Software Copyrights uAllow an exception - owner can copy a program to make a backup

Copyright exemptions uIdeas uFacts uTitles uNames uShort phrases uBlank forms

Copyright Duration uExpires 75 years from date of publication uor 100 years from date of creation uLasts for life of the owner plus 50 years uOn hold for now!!!

Copyright and Intellectual Property uProtects u creative expression u selection of ideas u arrangement of ideas

Patents ugranted for inventions of new things or processes uprotect new ideas by giving inventor a monopoly on the invention for a specified period of time - 20 years

Purpose of Patents uTo reward the inventor uencourage disclosure and use of invention uallows others to benefit from invention

Patents protect... uUnderlying idea of the invention - u not just a particular expression of implementation of it uProhibits anyone else from using the idea without authorization of the patent holder

Software as Intellectual Property uBillions of $ are illegally copied every year uRules need to be extended to include software uIs it a patent or copyright issue? uIs it an invention or writing?

Software Piracy uCopying of software in large quantities for resale uillegal copying by businesses and individuals for their own use

Piracy - Who does it hurt? uBusinesses lose $$$$ u Impedes development of new software u Development uses lots of people u they only get reimbursed if it is sold uUsers u no documentation u no updates u no customer support

Software Publisher uAn owner of a software copyright

History of Copyright Law u first US copyright law to cover: u books u maps u charts uUpdated to include u movies u sound recordings u photography

History continued u Copyright Act u unauthorized copy had to be in a form that could be seen and read visually u Software and Databases u can’t be visually seen or read (music) u1976, law revised to cover software - exhibit authorship

History continued... u High volume copying of records and movies became a felony u making multiple copies of copyrighted work willfully and for purposes of commercial advantage or private gain is a felony

Liabilities uDamages plus any profits up to $100,000 for each “work” u10+ copies - $ years in jail u-10 copies - <1 year in jail ufines as high as $250,000 uCompanies fined if 10+ employees have illegal copies on computers

What is Permissible? uCopy to hard drive uone backup ulicense specified copies ucopy on second machine - but cannot use both machines at the same time

ITS EASY!! uGood quality uFast uEveryone does it

Rentals uIllegal uLeads to piracy u Software Rental Amendments Act - must have permission of owner of copyright

Educational Facilities uMore moral obligation to abide by laws uDiscounts uSite license agreements

Businesses u“Shoplifting” - take home u extra use for office uOne software package per customer uLots of copies OK if limited use at one time

Fair Use Test uPurpose and character of use uNature of copyrighted work uRelative amount to the whole uEffect on the market

Purpose and Character of Use uCommercial nature or non- profit educational purposes uPreamble purposes u criticism, comment, news reporting, teaching, scholarship, research uDegree of transformation

Nature of the Copyrighted Work uSome works are more deserving of protection than others

Relative Amount uQuantity uQuality and importance u“no more was taken than was necessary” to achieve purpose for which the copying was done

Effect on Market uHarm to the original uHarm to derivative works

Importance of Fair Use uHelps figure out under what circumstances we can legally copy s/w uSoftware developers often must copy some or all of another company’s program as a part of the development process

Piracy uBusinesses - produce and sell unauthorized copies of popular package uBusinesses buy few - install many uDownload Software from Internet

Mass Reproduction uMainly in Foreign countries uIntellectual property not recognized uSmall computer industry uFew legitimate dealers uPoorer population

In- House Copying uReproduce on large number of machines uShare on networks uKeep down costs - rarely caught uDifficult to comply with requirements uLicensing agreements are unclear and confusing

Freebies for Friends uIllegal uHard to catch uSaves money uEveryone does it uNot a large market

Prevention uTechnical devices to prevent or deter copying uenforcement and revision of law ueducation for protection ueducation of social costs umarketing and contractual changes to reduce incentive

Technical Solutions uCopy protection on disks uSerial numbers uSecret to publishers

Enforcement and Education uSoftware Publishers Association uresponds to tips - sends warning letters uConducts voluntary audits uSurprise raids with court orders uMonitor of Internet - inform FBI

Markets and Management uPrices reflect usage uMetering uacademic discounts uManagement policies uFree demos

Copyright in Cyberspace uHigh volume uinexpensive storage media uscanners ueasy to copy and distribute

Literacy & Artistic Material uPhotos, Modified pictures uDigital music uDigital libraries

Proposed Legislation uNo free browsing uExtend owners’ control to all digital copies uInclude all digital transmissions uMake on-line providers responsible

Technology Bans uIf it makes copying easy - ban it uGovernment controls on technology that can be used for illegal purposes - sound familiar?

Software Developers uReverse Engineering uCopy and decompile uRuled Fair Use in Courts