1. Intellectual Property
Week 6

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

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

4. As the Owner You may give it away lend it resell it
BUT not make copies - this right belongs to owner of copyright or patent

5. Protection benefits Protects right of creator for compensation
encourages production of valuable, intangible, easily copied creative work

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

7. Purpose of copyrights and patents
encourage production of useful work
encourage the use and flow of information
Trademarks

8. Software Copyrights
Allow an exception - owner can copy a program to make a backup

9. Copyright exemptions Ideas Facts Titles Names? Short phrases
Blank forms

10. Copyright Duration Expires 75 years from date of publication
or 100 years from date of creation
Lasts for life of the owner plus 50 years
On hold for now!!!

11. Copyright and Intellectual Property
Protects
creative expression
selection of ideas
arrangement of ideas

12. Patents granted for inventions of new things or processes
protect new ideas by giving inventor a monopoly on the invention for a specified period of time - 20 years

13. Purpose of Patents To reward the inventor
encourage disclosure and use of invention
allows others to benefit from invention

14. Patents protect... Underlying idea of the invention -
not just a particular expression of implementation of it
Prohibits anyone else from using the idea without authorization of the patent holder

15. Software as Intellectual Property
Billions of $ are illegally copied every year
Rules have been extended to include software
Is it a patent or copyright issue?
Is it an invention or writing?

16. Software Piracy Copying of software in large quantities for resale
illegal copying by businesses and individuals for their own use

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

18. Software Publisher
An owner of a software copyright

19. History of Copyright Law
first US copyright law to cover:
books
maps
charts
Updated to include
movies
sound recordings
photography

20. History continued 1909 - Copyright Act
unauthorized copy had to be in a form that could be seen and read visually
Software and Databases
can’t be visually seen or read (music)
1976, law revised to cover software - exhibit authorship

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

22. Liabilities Damages plus any profits up to $100,000 for each “work”
10+ copies - $ years in jail
-10 copies - <1 year in jail
fines as high as $250,000
Companies fined if 10+ employees have illegal copies on computers

23. What is Permissible? Copy to hard drive one backup
license specified copies
copy on second machine - but cannot use both machines at the same time

24. ITS EASY to COPY!!
Good quality
Fast
Everyone does it

25. Rentals Illegal Leads to piracy
Software Rental Amendments Act - must have permission of owner of copyright

26. Educational Facilities
More moral obligation to abide by laws
Discounts
Site license agreements

27. Businesses “Shoplifting” - take home extra use for office
One software package per customer
Lots of copies OK if limited use at one time

28. Fair Use Test Purpose and character of use Nature of copyrighted work
Relative amount to the whole
Effect on the market

29. Purpose and Character of Use
Commercial nature or non-profit educational purposes
Preamble purposes
criticism, comment, news reporting, teaching, scholarship, research
Degree of transformation

30. Nature of the Copyrighted Work
Some works are more deserving of protection than others

31. Relative Amount Quantity Quality and importance
“no more was taken than was necessary” to achieve purpose for which the copying was done

32. Effect on Market
Harm to the original
Harm to derivative works

33. Importance of Fair Use
Helps figure out under what circumstances we can legally copy software
Software developers often must copy some or all of another company’s program as a part of the development process

34. Piracy
Businesses - produce and sell unauthorized copies of popular package
Businesses buy few - install many
Download Software from Internet

35. Mass Reproduction Mainly in Foreign countries
Intellectual property not recognized
Small computer industry
Few legitimate dealers
Poorer population

36. In- House Copying Reproduce on large number of machines
Share on networks
Keep down costs - rarely caught
Difficult to comply with requirements
Licensing agreements are unclear and confusing

37. Freebies for Friends Illegal Hard to catch Saves money
Everyone does it
Not a large market

38. Prevention Technical devices to prevent or deter copying
enforcement and revision of law
education for protection
education of social costs
marketing and contractual changes to reduce incentive

39. Technical Solutions Copy protection on disks Serial numbers
Secret to publishers

40. Enforcement and Education
Software Publishers Association
responds to tips - sends warning letters
Conducts voluntary audits
Surprise raids with court orders
Monitor of Internet - inform FBI

41. Markets and Management
Prices reflect usage
Metering
academic discounts
Management policies
Free demos

42. Copyright in Cyberspace
High volume
inexpensive storage media
scanners
easy to copy and distribute

43. Literacy & Artistic Material
Photos, Modified pictures
Digital music
Digital libraries

44. Legislation No free browsing
Extend owners’ control to all digital copies
Include all digital transmissions
Make on-line providers responsible

45. Technology Bans If it makes copying easy - ban it
Government controls on technology that can be used for illegal purposes - sound familiar?

46. Software Developers Reverse Engineering Copy and decompile
Ruled Fair Use in Courts