1 CS 501 Spring 2002 CS 501: Software Engineering Lecture 6 Legal Aspects of Software Engineering

2 CS 501 Spring 2002 Administration

3 CS 501 Spring 2002 Legal Environment Software is developed in a complex legal and economic framework. Every software engineer needs to be aware of some parts of the framework.

4 CS 501 Spring 2002 Legal Topics in Software Jurisdiction (international, federal, state laws) Intellectual property (copyright, patent, trademark) Contracts Privacy Free speech and its limitations (government secrets, obscenity) Complex areas (ISPs, e-commerce)

5 CS 501 Spring 2002 Legal Change Changes in laws usually follow changes in technical world. Lawyers and politicians typically have poor technical backgrounds Laws have often never been tested because of the cost of litigation. Law usually develops incrementally. As a result, strange analogies are often made between new technological paradigms and old world systems

6 CS 501 Spring 2002 Jurisdiction: Boundaries “The Internet has no boundaries” If you break a law in Finland, but you were on the Internet in the United States, what happens to you? What if you are in California and you break a law in Minnesota? Where do you pay taxes?

7 CS 501 Spring 2002 Jurisdiction: Federal Court System Jurisdictions: United States Constitution International treaties Federal and state statues Precedents 13 Circuits, each with a court of appeals Supreme Court ultimate appellate court Jurisdiction can be a determining factor in case outcomes

8 CS 501 Spring 2002 Copyright Copyright applies to literary works. Originally applied to textual materials, but gradually extended to cover text, music, photographs, designs, software,... Copyright applies to the expression of ideas (e.g., the words used), not to the ideas themselves, nor to physical items. Software Copyright applies to the program instructions, but not to the concepts behind the instructions, nor to the files on disk or on paper where the programs instructions are stored.

9 CS 501 Spring 2002 Copyright In the USA, copyright gives the owner exclusive right to: reproduce distribute perform display license Special rules First sale (can sell an object, e.g., a book, without permission of the copyright owner) Fair use (limited use without permission of the copyright owner, e.g., in a review or short quotation.)

10 CS 501 Spring 2002 Ownership of Copyright (USA) At creation Copyright is automatically owned by the creator. Except works for hire, where the employer owns the copyright. Transfer of copyright In the USA, copyright is property that can be sold or licensed. The agreement to sell or license software is written as a contract. "A verbal contract isn't worth the paper it's written on." (Attributed to Yogi Berra.)

11 CS 501 Spring 2002 Ownership of Copyright International differences Moral rights In some countries, e.g., Canada, France, the creator of a work retains moral rights, which cannot be sold, for instance the right of attribution. Registration In the USA, copyright is established automatically when something is created. In many countries, it is necessary for the creator to register it to claim copyright.

12 CS 501 Spring 2002 Derivative Software When software is derived from other software: New code is owned by new developer Conditions that apply to old code apply to derived work If you write S, which is derived from A, B, C and D, you can not distribute or licenses S unless you have right to distribute each of A, B, C and D. To create a software product, you must have documented rights to use every component.

13 CS 501 Spring 2002 Software Copyright Questions You are employed for company X writing software. When you leave, who owns your work? What use can you make of the work? You work free-lance for company X. When you finish, who owns your work? What use can you make of the work? You are a student on CS 501. What you finish what use can you make of your project work? What use can Cornell make of it? (Answer: At Cornell students own the copyright in the work that they do for their classes.)

14 CS 501 Spring 2002 An Old Exam Question When software is written, who owns the copyright? How can somebody else be permitted to use the software? How can copyright be transferred to somebody else?

15 CS 501 Spring 2002 An Old Exam Question When software is written, who owns the copyright? The person who writes the software Except works for hire, where the employer owns copyright How can somebody else be permitted to use the software? By permission from the copyright owner (usually a license) How can copyright be transferred to somebody else? Copyright is property that can be sold or given away (usually a contract)

16 CS 501 Spring 2002 An Old Exam Question You are employed for company X writing software. When you leave, who owns your work? What use can you make of the work?

17 CS 501 Spring 2002 An Old Exam Question You are employed for company X writing software. When you leave, who owns your work? The company (work for hire) What use can you make of the work? None, without permission of the copyright owner. (Perhaps some minor use under "fair use".)

18 CS 501 Spring 2002 An Old Exam Question You work free-lance for company X. When you finish, who owns your work? What use can you make of the work?

19 CS 501 Spring 2002 An Old Exam Question You work free-lance for company X. When you finish, who owns your work? It depends on the circumstances. Have a written contract. What use can you make of the work? If you hold the copyright -- unrestricted. Otherwise -- none without agreement. (Perhaps some minor use under "fair use".)

20 CS 501 Spring 2002 Contracts and Licences Contracts allow intellectual property to be sold or licensed Promise in exchange for some consideration (e.g., money) Written document with signature Permanent or temporary, whole or part Exclusive or non-exclusive Termination, problems and difficulties Terms and conditions as agreed Enforceable by courts For simple agreements, an exchange of letters is a convenient form of contract.

21 CS 501 Spring 2002 Patents Patents apply to inventions Should be: non-obvious, novel, useful Requires a complex process of patent application 17 years from award (20 years from application) Copyright applies to the expression of ideas, patents to the ideas themselves.

22 CS 501 Spring 2002 Software Patents Problems with software patents Poor quality of examining can lead to broad patents for routine computing concepts Usually difficult to know where ideas originate International differences The situation is a serious mess!

23 CS 501 Spring 2002 Trade Secrets and Non-Disclosure Agreements Trade Secret "... information, including a formula, pattern, compilation, program, device, method, technique, or process that derives independent economic value from not being generally known and not being readily ascertainable and is subject to reasonable efforts to maintain secrecy." Uniform Trade Secrets Act Example: Microsoft source code Non-Disclosure Agreement Legal agreement not to disclose trade secrets.

24 CS 501 Spring 2002 Trade Secrets A trade secret does not expire - as long as it is kept secret Competitors may not use secrets obtained through extraordinary means If you learn trade secrets when working for one employer, you must not disclose them to another employer.

25 CS 501 Spring 2002 Your Next Job... Employment contract may restrict your next job (not working for competitors, etc.) Trade-secret information (non-disclosure agreement) Contamination (knowledge of trade secrets may prevent you working on similar projects for others) Ask when you are interviewed! Read the contract!

26 CS 501 Spring 2002 Trademark Specific name or phrase Unique within a line of business, in a specific country (e.g., only one electronics firm called Apple in the USA, but could be a shipping line called Apple in the USA or a different electronics firm called Apple in another country.) Generic terms cannot be trademarked Trademarks can be lost if they are not defended –Lost trademarks: aspirin, kleenex –Held trademarks: Coke, Pepsi

27 CS 501 Spring 2002 Privacy Invasions of privacy: intrusion appropriation of name or likeness unreasonable publicity false light Be very careful about collecting personal data without the knowledge of the individual

28 CS 501 Spring 2002 Public or Private Information? A lot of public information is considered private. An increasing amount of public information available on the Internet –Reverse phone lookups –Campaign Contributions –Housing prices –Driver’s license information and photographs

29 CS 501 Spring 2002 Privacy in Legally, is like a postal letter –Expectation of privacy in transit –Mail loses its special protected status once it leaves the letter carrier's grasp For , –Expectation of privacy while signal travels over Internet – loses its protected status at the mail server whether you have read it or not

30 CS 501 Spring 2002 Privacy in the Workplace Test for employers/employees - “Do you have a reasonable expectation of privacy?” Work-related material on business machines is definitely not private. Some organizations, e.g., most universities, treat private e- mail on business machines as private, but this is not the law. Never send anything by that you would not be prepared for your employer to see. As a software engineer, you may come across other people's private information. Keep it private. If in doubt consult your supervisor.

31 CS 501 Spring 2002 Business Electronic Communications Privacy Act (1986) says all business communication belongs to that business. Deleting can be ruled spoliation (intentionally destroying company records). An archive is worthless if it cannot be indexed effectively (in effect, saving everything can be equivalent to saving nothing).

32 CS 501 Spring 2002 Free Speech In the USA, the First Amendment protects many aspects of free speech, including news reporting, religious expression, etc., but their are major exceptions (e.g., state secrets, defamation, obscenity, racial hatred.) In the USA, some aspects (e.g., obscenity) are governed by state laws with big differences among states. Laws in other countries may be very different (e.g., blasphemy, criticism of the government).

33 CS 501 Spring 2002 Special Situations Internet Service Providers transmit and store intellectual property that they do not own a special (complex) legal framework protects them if you run such a service, you need a knowledgeable lawyer E-commerce e-commerce operates across jurisdictional boundaries data is subject to various laws of privacy, security, taxation, etc. if you run such a service, you need a knowledgeable lawyer.

34 CS 501 Spring 2002 Practical Advice It is often useful to read the text of a law. A good source is the Cornell Legal Information Institute: But do not try to interpret the law by yourself. You may be reading the wrong law, or not know how it has been interpreted by the courts.

35 CS 501 Spring 2002 Practical Advice Be aware of the law, but do not pretend to be a lawyer. Use a professional for: Contracts and licenses (unless very simple exchange of letters) Troubles (complaints, injunctions, subpoenas, etc.) Personnel issues When in doubt, ask help!