Copyright I Class 3 Notes: January 20, 2004 Law 507 | Intellectual Property | Spring 2004 Professor Wagner Copyright © R. Polk Wagner Last updated: 11/4/2015 9:04:43 PM

2 Today’s Agenda 1.Cleanup: Economics and Intellectual Property 2.The Basics of Copyright 3.Requirements for Copyright

3 Economic Analysis of Intellectual Property The Economic mechanism: IP rights => rights to exclude others Allows price to be set above marginal cost oNote that marginal cost of information = 0 Returns allow recovery of investments, incentives Economic costs: Deadweight loss (reduced production) Less diffusion of information Races and rent-seeking Note that IP rights are not often “monopolies” In some circumstances, perhaps

4 Economic Analysis of Intellectual Property The Basic Economic Challenge: Balancing Benefits vs Costs

5 Copyright Basics The History of Copyright How is copyright’s history driven by technological change? Why did the Statute of Anne grant rights to authors, not publishers? An Overview of Copyright Subject matter: literary and artistic expression Threshold for protection: minimal originality Formalities: notice required (prior to 1989); registration & deposit required to sue Duration: life + 70 yrs; 95 from publication or 120 from creation for entity authors

6 Requirements for Copyright 17 U.S.C. § Subject matter of copyright: In general (a) Copyright protection subsists, in accordance with this title, in original works of authorship fixed in any tangible medium of expression, now known or later developed, from which they can be perceived, reproduced, or otherwise communicated, either directly or with the aid of a machine or device.

7 Requirements for Copyright 17 U.S.C. § Subject matter of copyright: In general (a) Copyright protection subsists, in accordance with this title, in original works of authorship fixed in any tangible medium of expression, now known or later developed, from which they can be perceived, reproduced, or otherwise communicated, either directly or with the aid of a machine or device.

8 Requirements for Copyright Original Works of Authorship Feist Publications v Rural Telephone Service Why does Feist want Rural’s listings? How did Feist get caught? Feist admitted copying ~ 1300 listings. Why no infringement? Didn’t Rural choose which / how information was listed? (Do you agree with the court’s characterization as ‘garden-variety’?)

9 Requirements for Copyright Original Works of Authorship Facts versus Compilations Which of the following is copyrightable? 1.Telephone listings, sorted by zipcode. 2.Telephone listings, plus clever nicknames. 3.Fake telephone listings, sorted by surname. 4.Electronic phone book database. 5.A taxonomy of insurance billing codes (5-digit #s) 6.Page numbers in case reporters (i.e., 123 F.2d 456) Even if the above is ©, can anything be copied? Can you recreate the work yourself?

10 Requirements for Copyright Original Works of Authorship Facts versus Compilations 1.The database problem a)Why not protect non-original compilations of facts? b)Don’t we want to encourage investment/deployment? c)Absent ©, how can we encourage database development? 2.“Functionally”-focused works a)Are maps ©? (Should they be?) b)What about aerial photographs? Photos of nature? c)Schematic designs/drawings?

11 Requirements for Copyright Fixed in a Tangible Medium of Expression 1.Why require fixation as a condition for copyright? 2.Explain the difference between: a)An “original work” b)A “copy” c)A “phonorecord” d)A “book” 3.How is a live broadcast copyrightable? 4.You type text into your word processor. Fixed? 5.You open a web page. Has a copy been made?

12 Requirements for Copyright Formalities 1.Notice a)Why have US notice requirements relaxed since 1909? b)What is the current US rule? oWhy does the US strongly encourage notice? 2.Registration a)What do we mean by ‘registration’? b)What is the current rule? (Why the two-tier system?) c)Why “encourage” registration? 3.Deposit a)What is the rule? Why require deposit?

13 Next Class Copyright II The Subject Matter of Copyright