1. Chapter 5 Intellectual Property & Internet Law

2. Learning Objectives
What is Intellectual Property?
Why are trademarks and patents protected by law?
What laws protects authors’ rights in works they produce?
What steps have been taken to protect intellectual property rights in the digital age?

3. Introduction
Intellectual Property (I.P.) is any property that is the product of an individual’s mind, e.g, books, software, movies, music.
U.S. Constitution protects I.P. in Article I Section 8. Congress shall
“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.”
Ownership of I.P. is strategically important in the global economy.

4. Trademarks & Related Property
Distinctive motto, mark or emblem
Stamped or affixed to a product
So that it can be identified in the market.
Statutory Protection for Trademarks
Federal Lanham Act of 1946
Federal Trademark Dilution Act of 1995

5. Trademarks & Related Property
Trademark Registration
U.S. Patent and Trademark Office gives notice to 3rd parties.
A mark can be registered if in use or mark will be used within 6 months.
Trademark Infringement
Unintentional or intentional substantial copying of mark.
Strong marks vs. generic terms.

6. Trademarks & Related Property
Service Mark
Similar to trademark but used for services.
Includes characters in TV and radio.
Trade Names
Applies to a business (not a product).
Trade Dress
Image and appearance of a product or shop (Example: Starbucks coffee stores)

7. Cyber Marks Trademarks in Cyberspace Domain Names Cybersquatting
Trademarks in Cyberspace (example: Nike.com)
Conflicts—ICANN
Cybersquatting
Occurs when 3d party registers a domain name that is the same or similar to another company’s own trade name.
1999 Anticybersquatting Consumer Protection Act

8. Cyber Marks Meta Tags Online Trademark Dilution
Keywords in web pages used by internet search engines.
Playboy vs. Calvin Designer Label
Online Trademark Dilution
Trademarks can be diluted on the web.
Hasbro v. IEG (over candyland.com)

9. Patents Patent Patents for: A Government monopoly that
Gives inventor the exclusive right to
Make, use or sell and invention for 20 years.
Patents for:
Invention
Design
Process (software patent)

10. Patents Infringement Business Process Patents
Manufacture, use or sale of another’s product or design without permission (license).
Business Process Patents
1998 State Street Bank v. Signature Financial ruled that a method of doing business could be patented.
Amazon.com’s “one-click” patent.

11. Copyrights Copyright:
Intangible property right granted by federal statute to the author for life plus 70 years.
Automatic protection.
Work must be original and “fixed in a durable medium.” Ideas are not protected, but the expression of an idea is.

12. Copyrights Infringement Exception: “Fair Use” Copyright for Software
Form or expression is copied (does not have to be in its entirety)
Penalties, damages and criminal action are possible.
Exception: “Fair Use”
Certain persons or organization can copy materials without penalty (e.g., education, news, research)
Copyright for Software

13. Copyrights in Digital Information
Digital media can easily be copied.
Copyright Act of 1976
Copy of a program into RAM is infringement.
Revision or re-sale of freelance authors works can be infringement.
NY Times v. Tasini (2001).
MP3 and File-Sharing.
Napster vicariously liable for infringement.

14. Trade Secrets
Trade secrets are confidential, not filed with the government.
Can be customer lists, formulas, pricing, etc.
Theft of trade secrets is now a federal crime under the Economic Espionage Act of 1996.
Cyberspace: employees can easily information to competitors.

15. Licensing
Allows a third party to lawfully use a patent, trademark, copyright or trade secret.
The licensee pays the licensor (the owner of the IP) a fee for use.
U.C.I.T.A. is a uniform code that licenses the use of software.

16. International Protection
Berne Convention (1886)
TRIPS Agreement (1994)
Each member must include domestic laws protecting intellectual property of other nation-members
World Intellectual Property Organization (WIPO) (1996)
Provides for Dispute resolution