1. Intellectual Property Edited by: Dr Muhammad Murtaza Khan Assistant Professor, Faculty of Computing & Information Technology, University of Jeddah CPIS428 Professional Computing Issues

2. Lecture Overview 2.1Introduction to intellectual property 2.2How to Protect intellectual property 2.3Fair use 2.4New restrictions on use 2.5Peer-to-peer networks 2.6Protection for software 2.7Open-source software

3. 2.1Introduction: Introduction to Ever Changing Intellectual Property Landscape Value of intellectual property is much greater than before Why have intellectual property protected? Creating first copy is costly as you have to buy the original Duplicates cost almost nothing This results in loss for the owner of intellectual property Internet allows illegal copies to spread quickly In light of advances in information technology, how should we treat intellectual property?

4. 2.1 What Is Intellectual Property? Intellectual property: Any unique product of the human intellect (mind) that has commercial value Books, songs, movies Paintings, drawings Inventions, chemical formulas, computer programs Intellectual property ≠ physical manifestation What may constitute Intellectual Property ? Any idea that Is non-obvious Is new (No one else has shared it publically) Is not in public domain (You have not published or shared your idea on tv, newspaper, conference or publication) Having a physical prototype is not compulsory

5. 2.1 Benefits of Intellectual Property Protection Advantage for general people New ideas in the form of inventions and artistic works can improve the quality of life for the members of a society. Some people are altruistic and will gladly share their creative energies. Advantage for inventor / author Allure of wealth can be an incentive for speculative work Authors of U.S. Constitution recognized benefits to limited intellectual property protection in 1780s Article I, Section 8, of the U.S. Constitution gives Congress the power to “promote the Progress of Science and useful Arts by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.”

6. 2.1 Issues with Intellectual Property Protection What is a reasonable length of time to grant authors and inventors exclusive rights of their creative work? A life saving medicine can be made less expensive if more companies know how to produce it. So should they be patented? Example: Have you ever heard the song “Happy Birthday to You” on tv? Chances are no, because it was copyrighted by Time Warner in 1935 and since they are maintaining their copyright it will remain their proprietary song till 2030.

7. 2.2How to Protect Intellectual Property There are four different ways in which individuals and organizations protect their intellectual property: Trade secrets Patents Copyrights Trademarks/service marks.

8. Trade Secret Confidential piece of intellectual property that gives company a competitive advantage Can be obtained by making employees sign a non-disclosure agreement (they will not tell anyone) Never expires Example : Coca Cola Formula Not appropriate for all intellectual properties E.g.: movies Reverse engineering is one way in which a competing firm can legally gain access to information contained in a trade secret May be compromised when employees leave firm

9. Trademark, Service Mark A trademark is a word, symbol, picture, sound, or colour used by a business to identify goods. A service mark is a mark identifying a service Company can establish a “brand name” through the use of trademark which does not expire Society benefits from branding because Branding allows consumers to have more confidence in the quality of the products they purchase. If brand name becomes common noun, trademark may be lost Companies advertise to protect their trademarks. Companies also protect trademarks by contacting those who misuse them

10. Trademark Violation

11. Screenshot by Xerox. Copyright © 2012 by Xerox Corporation. All rights reserved. Reprinted with permission.

12. Patent A patent is a way the World Patent Office (WPO) gives an inventor exclusive right to a piece of intellectual property. A patent is quite different from a trade secret because a patent is a public document that provides a detailed description of the invention. Owner can prevent others from making, using, or selling invention for 20 years Dr. Edwin Land invented “instant” photography. The company he founded, Polaroid Corporation, had ten patents protecting the invention of film that developed in 60 seconds. Polaroid did not license these patents to other firms, and for many years it was the only company to sell cameras and film allowing photographs to be developed in a minute. When Kodak introduced its first instant camera in 1976, Polaroid sued Kodak. In 1985 a court ruled that Kodak had infringed on seven of Polaroid’s original ten patents; six years later Kodak paid Polaroid a $925 million settlement.

13. Trade Secret vs Patent In 1966, John W. Cropper of New Zealand developed and constructed a machine for producing stretched polytetrafluoroethylene (PTFE) tape. Rather than file for a patent, however, Cropper chose to keep the process of creating expanded PTFE as a closely held trade secret and required his producer and its employees to sign confidentiality agreements. Gore-Tex was co-invented by Wilbert L. Gore and Gore's son, Robert W. Gore. In 1969, Bob Gore stretched heated rods of PTFE and created expanded polytetrafluoroethylene (ePTFE). His discovery of the right conditions for stretching PTFE was a happy accident, born partly of frustration. Instead of slowly stretching the heated material, he applied a sudden, accelerating yank. The solid PTFE unexpectedly stretched about 800%, forming a microporous structure that was about 70% air. It was introduced to the public under the trademark Gore-Tex. Bob Gore promptly applied for and obtained patents on Gore Tex.

14. Copyright A copyright is how the government provides authors with certain rights to original works that they have written. The owner of a copyright has five principal rights: 1. The right to reproduce the copyrighted work 2. The right to distribute copies of the work to the public 3. The right to display copies of the work in public 4. The right to perform the work in public 5. The right to produce new works derived from the copyrighted work Copyright-related industries represent 6% of U.S. gross domestic product (> $600 billion/year) Copyright protection has expanded greatly since 1790

15. Story Mr. Sorenson held a cup of coffee and it was hot He thought I should wrap something around it Had I been in his place the next time I would have worn a glove or wrap tissue paper around it ! He thought : Others would want to use this method Can I make this idea profitable He filed a patent for coffee cup sleeves “Java Jackets”

16. Types of Patent Design Protection from copying ornamental design Example: Apple vs. Samsung (Shape of phones) Utility Protection for New Process / Methods Mechanical devices and articles of manufacture Composition of matter (Chemical Composition) Computer Programs Genetic Organisms Improvement in existing patents Plants Plant patterns – New Plant etc

18. How to File a Patent Application Step 1: Identify a solution to a problem Step 2: Study Prior Inventions (prior art) Step 3: Outline Claims Step 4: Write Description of Invention Step 5: Refine Claims Step 6: File Patent

19. Prior Art Helps identify if something similar to invention has been done i.e. invention is not novel Includes: 1. Patent in any language 2. Published Paper, Book, News article, Thesis 3. Blog, Facebook page 4. Lecture or Seminar Information not available publicly i.e. “secret information” is not considered a part of public disclosure.

20. Patent Example: Design Patent Invention Title Patent Owner, Can sell Or license the patent Inventors Claims, Novelty info Description

21. Patent Wars: Apple vs Samsung Patent by Apple on iPhone

22. 2.3Fair Use The right given to a copyright owner to reproduce a work is a limited right. Under some circumstances, called fair use, it is legal to reproduce a copyrighted work without the permission of the copyright holder. Examples of fair use include citing short excerpts from copyrighted works for the purpose of teaching, scholarship, research, criticism, commentary, and news reporting. Courts consider four factors Purpose and character of use Nature of work Amount of work being copied Affect on market for work

23. Example#1 A professor puts a few journal articles on reserve in the library and makes them assigned reading for the class. Some students in the class complain that they cannot get access to the articles because other students always seem to have them checked out. The professor scans them and posts them on his Web site. The professor gives the students in the class the password they need to access the articles. Purpose  Strictly educational (weighs in favour of fair use) Nature  Journal articles are nonfiction (favour of use) Amount  Entire articles rather than brief excerpts (against use) Effect  Password protected access (favour of use) The professor’s actions probably constitute fair use of the copyrighted material.

24. Example#2 An art professor takes slide photographs of a number of paintings reproduced in a book about Renaissance artists. She uses the slides in her class lectures. Purpose  Strictly educational (weighs in favour of fair use) Nature  Material is art (against) Amount  displaying copies of the paintings in their entirety (against) Effect  The determination of this factor would depend on how many images the professor took from any one book and whether the publisher is in the business of selling slides of individual images appearing in its book The professor’s actions probably constitute fair use of the copyrighted material.

25. Sony v. Universal City Studios Sony introduces Betamax VCR which allow people to record television shows for viewing later – Time Shifting (1975) Movie studios sue Sony for copyright infringements The Supreme Court evaluated the case in light of the four fair use factors: Purpose  Private, Non-Commercial (Favour) Nature  Consumers who are time shifting are copying creative work (Against) Amount  Consumer copies the entire work (Against) Effect  Studios were unable to demonstrate that time shifting had eroded the commercial value of their copyrights (Favour) U.S. Supreme Court rules that time shifting is fair use

26. Time Shifting

27. Kelly v. Arriba Soft Corporation Kelly: Photographer maintaining Web site with copyrighted photos Arriba Soft: Creates search engine that returned thumbnail images Kelly sues Arriba Soft for copyright infringement U.S. Court of Appeals, affirms that use of images is a fair use. Two main factors which favored Arriba Soft’s claim of fair use are: The thumbnails had low resolution and their main purpose was to create a searchable index to make it easier for people to find images on the internet The thumbnails didn’t harm the value of the original images or the market for these images

28. Google Books Google announced plan to scan millions of books held by several huge libraries, creating searchable database of all words This database is much more powerful than traditional library card catalogues because it allows users to search for words or phrases appearing anywhere in the catalogued books. If public domain book, system returns PDF. If under copyright, user can see a few sentences; system provides links to libraries and online booksellers Authors Guild and publishers sued Google for copyright infringement “by reproducing for itself a copy of those works that are not in the public domain Google is infringing copyright” Out-of-court settlement under review by U.S. District Court for Southern District of New York

29. Benefits of Proposed Settlement Google would pay $125 million to resolve legal claims of authors and publishers and establish Book Rights Registry Readers would have much easier access to out-of-print books at U.S. public libraries and university libraries University libraries could purchase subscriptions giving their students access to collections of some of world’s greatest libraries Authors and publishers would receive payments earned from online access of their books, plus share of advertising revenues

30. Criticisms of Proposed Settlement Google should have gone to court Google had a good case that its use was a fair use, based on precedent of Kelly v. Arriba Soft If Google had been found not guilty of copyright infringement, it could have given public access to books at lower rates Agreement gives Google a virtual monopoly over orphaned works - copyrighted books for which the copyright owner cannot be located. Potential chilling effect of Google tracking the pages that people are viewing

31. Court Rejects Proposed Settlement March 2011: U.S. District Court for Southern District of New York rejected proposed settlement Judge ruled agreement would have: Given Google significant advantage over competitors Rewarded Google for “wholesale copying of copyrighted words without permission” Given Google liberal rights over orphaned works

32. Counterfeiting CDs is bad because it Means Lost Profits © Reuters/CORBIS 2.4How content producers protect themselves

33. Digital Rights Management Actions owners of intellectual property take to protect their rights Approaches Encrypt digital content Digital marking so devices can recognize content as copy-protected Some Practical Examples on following slides

34. Example 1 Secure Digital Music Initiative The Secure Digital Music Initiative (SDMI) was an effort to create copy-protected CDs and secure digital music downloads that would play only on SDMI-compliant devices. Consortium of 200 companies developed “digital watermarking” scheme Failed because Internet copying became huge before SDMI was ready Digital watermarking encryption was cracked (hacking)

35. Example 2 Sony BMG Music Entertainment Rootkit Millions of audio CDs shipped with Extended Copy Protection, a DRM (Digital Rights Management) system Prevented users from Ripping audio tracks into MP3 format Making more than 3 backup copies Relied upon Windows “rootkit” that hid files and processes; usually only hackers use rootkits Huge public outcry once secret uncovered Sony BMG stopped production

36. Example 3 Encrypting DVDs Contents of DVDs encrypted using Content Scramble System (CSS) Need decryption keys to view a DVD Jon Johansen wrote a decryption program for Linux 2600 Magazine published the code Motion picture studios sued 2600 Magazine and won Johansen tried in Norway and found not guilty The court ruled he had the right to access information on a DVD that he had purchased. It noted the program Johansen developed to decrypt DVDs could be used for both legal and illegal purposes.

37. Criticisms of Digital Rights Management Any technological “fix” is bound to fail DRM undermines fair use DRM could reduce competition Some schemes make anonymous access impossible

38. 2.5 Peer-to-Peer Networks Facilitates exchange of data Transient network Connects computers running same networking program Computers can access files stored on each other’s hard drives How P2P networks facilitate data exchange Give each user access to data stored in many other computers Support simultaneous file transfers among arbitrary pairs of computers Allow users to identify systems with faster file exchange speeds

39. Napster Peer-to-peer music exchange network Began operation in 1999 Sued by RIAA for copyright violations Courts ruled in favor of RIAA Went off-line in July 2001 Re-emerged in 2003 as a subscription music service

40. FastTrack Second-generation peer-to-peer network technology Used by KaZaA and Grokster Distributes index among large number of “supernodes” Cannot be shut down as easily as Napster Napster relied upon a central computer to maintain a global index of all files available for sharing. The existence of this central index made it easy to eliminate the distribution of copyrighted files via Napster. In contrast, FastTrack distributes the index of available files among a large number of “supernodes.” Any computer with a high-speed Internet connection running Fast-Track has the potential to become a supernode. The use of multiple supernodes makes searching for content slower, but it also makes it much more difficult for legal authorities to shut down the file-sharing network.

41. Comparing Napster and FastTrack

42. 2.6 Protection for Software Software Copyright protection began 1964 What gets copyrighted? Expression of idea, not idea itself Object (executable) program, not source program Also protects the screen displays produced by the program as it executes. This is particularly valuable for the developers of video games. Companies treat source code as a trade secret Violations Copying a program to give or sell to someone else Preloading a program onto the hard disk of a computer being sold Distributing a program over the Internet

43. Software Patents Until 1981, Patent Office refused to grant software patents Saw programs as mathematical algorithms, not processes or machines U.S. Supreme Court decision led to first software patent in 1981 Thousands of software patents now exist Microsoft files ~3,000 applications annually Licensing patents a source of revenue Question: How to make a similar software which is un- plagiarized?

44. Safe Software Development Companies must protect against unconscious copying Solution: “clean room” software development strategy In this strategy, two independent teams work on the project. Team 1 analyses competitor’s program and writes technical specification. The specification simply states how the product is supposed to function. It says nothing about how to implement the functionality. Team 2 is isolated from the first team. Members of this team have never seen any code or documentation from the competitor’s product. It relies solely on the technical specification to develop, code, and debug the software meeting the specification. By isolating the code developers from the competitor’s product, the company developing the competing product can demonstrate that its employees have not copied code, even unconsciously.

45. 2.7 Open-Source Definition No restrictions preventing others from giving away software Source code can be included in distribution No restrictions preventing others from modifying source code No (some) restrictions regarding how people can use software Same rights apply to everyone receiving redistributions of the software without the need for additional licensing agreements

46. Advantages of Open-Source Software Gives everyone opportunity to improve program New versions of programs appear more frequently Eliminates tension between obeying law and helping others Programs belong to entire community Shifts focus from manufacturing to service

47. Examples of Open-Source Software BIND Apache Sendmail Android operating system for smartphones Firefox OpenOffice.org Perl, Python, Ruby, TCL/TK, PHP, Zope GNU compilers for C, C++, Objective-C, Fortran, Java, and Ada

48. Screenshot from OpenOffice.org, a registered trademark of Apache Software Foundation. Copyright © 2012 by Apache Software Foundation. Reprinted with permission.

49. GNU Project and Linux GNU Project Begun by Richard Stallman in 1984 Goal: Develop open-source, Unix-like operating system Most components developed in late 1980s Linux Linus Torvalds wrote Unix-like kernel in 1991 Combined with GNU components to make an O.S. Commonly called Linux

50. Impact of Open-Source Software Linux putting pressure on companies selling proprietary versions of Unix Linux putting pressure on Microsoft and Apple desktops The cost of commodity, off-the-shelf hardware has gotten so low that the cost of a proprietary operating system is a significant portion of the selling price of low-end systems.

51. Critique of the Open-Source Software Movement Without critical mass of developers, quality can be poor Without an “owner,” incompatible versions may arise Relatively weak graphical user interface Poor mechanism for stimulating innovation The open-source movement has proven it is able to produce alternatives to proprietary programs (for example, OpenOffice instead of Microsoft Office), but it has not demonstrated its ability to innovate completely new products.

52. Quiz Problem A professor is giving a lecture on computer algorithms Students have to pay a registration fee of1000 SR Professor copies two algorithms (without citing) from a book that is Copyright protected and is the ownership of ACM ACM sues the professor for violating the Fair Use You are a judge taking the decision on this lawsuit. What will be the right judgment be considering Purpose, Nature, Amount, Affect of violation.

53. Solution Purpose of Use Commercial => Prof. is making money Goes against Prof. => Goes in favor of ACM Nature of Material Computer Science => Not many people interested Goes in favor of Prof. => Goes against ACM Amount of Material Used 2 Algorithms out of hundreds in the book => Little Goes in favor of Prof. => Goes against ACM Affect Only shared with a few hundred people => Even the attendees will have to buy the book for other algorithms Goes in favor of Prof. => Goes against ACM Decision In favor of Prof The use will not affect sales of the book