1. CS 501: Software Engineering Fall 1999 Lecture 19 Management II Business and legal aspects of software engineering.

2. 2 Administration  Assignment 5  Assignment 6 Schedule your presentation with Rosemary Adessa Invite your client(s) to the presentation

3. 3 Legal Environment Software is developed in a complex legal and economic framework. Changes in laws follow changes in technical world. Jurisdictions:  United States Constitution  International treaties  Federal and state statues  Precedents  Supreme Court  Cost of establishing precedent

4. 4 Legal Topics  International  Intellectual property (copyright, patent, contract)  Tort (e.g., liability of Internet service provider)  Privacy  Free speech and its limitations (government secrets, obscenity, blasphemy, hate) Legal Information Institute: http://www.law.cornell.edu/

5. 5 Copyright A copyright gives the owner the exclusive right to:  reproduce  distribute  perform  display  license Gradually extended to cover text, music, photographs, designs, software,...

6. 6 Copyright Copyright at creation  Works for hire  Contracts and licenses  First sale  Fair use  Infringement (contamination) International differences  Moral rights  Copyright registration

7. 7 Software Patents  Should be: non-obvious, novel, useful  17 years from award (20 years from application)  Poor quality of examining can lead to broad patents for routine computing concepts  International differences Copyright applies to the expression of ideas, patents to the ideas themselves.

8. 8 Contracts and Licences Contracts allow intellectual property to be sold or licensed  Promise in exchange for adequate consideration  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

9. 9 Derivative Works 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.

10. 10 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

11. 11 Software Business 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 502. What you finish what use can you make of your project work? What use can Cornell make of it? Read the contract!

12. 12 Your Next Job...  Employment contract may restrict your next job (not working for competitors, etc.)  Trade-secret information (non-disclosure agreement) Ask when you are interviewed!

13. 13 Some Business Models  Software developed in-house  Package licensed to customer, binary only (Microsoft model)  Package licensed to customer, source code for customer's modifications  Bespoke software for customer (may be owned by supplier or customer)  Software bundled with hardware product (PalmPilot)

14. 14 Community Development  Shareware  Open source (e.g., Linux, Apache, Perl, etc.) -> Shared development -> Market penetration Example: TCP/IP for Vax/VMS Software may be open source, but packaging and services can be profitable businesses

15. 15 Open Source  Free redistribution  Source code  Derived works  Integrity of the author's source code  No discrimination against persons or groups

16. 16 Open Source  No discrimination against fields of endeavor  Distribution of license  License must not be specific to a product  License must not contaminate other software http://www.opensource.org/osd.html

17. 17 Practical Advice Be aware of the law, but do not pretend to be a lawyer. Use a professional for:  Contracts and licenses  Troubles (complaints, injunctions, subpoenas, etc.)  Personnel issues  When in doubt, ask help!

18. 18 Reading Before next class, read Sommerville Chapter 28, "Managing People", pages 567 to 588