Intellectual Property

Week 6

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

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

As the Owner

You may give it away lend it resell it BUT not make copies - this

right belongs to owner of copyright

Protection benefits

Protects right of creator for compensation

encourages production of valuable, intangible, easily copied creative work

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

Purpose of copyrights and patents

encourage production of useful work

encourage the use and flow of information

Trademarks

Software Copyrights

Allow an exception - owner can copy a program to make a backup

Copyright exemptions

Ideas Facts Titles Names Short phrases Blank forms

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!!!

Copyright and Intellectual Property

Protects creative expression selection of ideas arrangement of ideas

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

Purpose of Patents

To reward the inventor encourage disclosure and

use of invention allows others to benefit

from invention

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

Software as Intellectual Property

Billions of $ are illegally copied every year

Rules need to be extended to include software

Is it a patent or copyright issue?

Is it an invention or writing?

Software Piracy

Copying of software in large quantities for resale

illegal copying by businesses and individuals for their own use

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

Software Publisher

An owner of a software copyright

History of Copyright Law

1790 - first US copyright law to cover: books maps charts

Updated to include movies sound recordings photography

History continued

1909 - Copyright Act unauthorized copy had to be in

a form that could be seen and read visually

1960 - Software and Databases can’t be visually seen or read

(music) 1976, 1980 - law revised to cover

software - exhibit authorship

History continued...

1982 - High volume copying of records and movies became a felony

1992 - making multiple copies of copyrighted work willfully and for purposes of commercial advantage or private gain is a felony

Liabilities

Damages plus any profits up to $100,000 for each “work”

10+ copies - $2500 - 5 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

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

ITS EASY!!

Good quality Fast Everyone does it

Rentals

Illegal Leads to piracy 1990 - Software Rental

Amendments Act - must have permission of owner of copyright

Educational Facilities

More moral obligation to abide by laws

Discounts Site license agreements

Businesses

“Shoplifting” - take home extra use for office

One software package per customer

Lots of copies OK if limited use at one time

Fair Use Test

Purpose and character of use

Nature of copyrighted work Relative amount to the

whole Effect on the market

Purpose and Character of Use

Commercial nature or non-profit educational purposes

Preamble purposes criticism, comment, news

reporting, teaching, scholarship, research

Degree of transformation

Nature of the Copyrighted Work

Some works are more deserving of protection than others

Relative Amount

Quantity Quality and importance “no more was taken than

was necessary” to achieve purpose for which the copying was done

Effect on Market

Harm to the original Harm to derivative works

Importance of Fair Use

Helps figure out under what circumstances we can legally copy s/w

Software developers often must copy some or all of another company’s program as a part of the development process

Piracy

Businesses - produce and sell unauthorized copies of popular package

Businesses buy few - install many

Download Software from Internet

Mass Reproduction

Mainly in Foreign countries Intellectual property not

recognized Small computer industry Few legitimate dealers Poorer population

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

Freebies for Friends

Illegal Hard to catch Saves money Everyone does it Not a large market

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

Technical Solutions

Copy protection on disks Serial numbers Secret e-mail to publishers

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

Markets and Management

Prices reflect usage Metering academic discounts Management policies Free demos

Copyright in Cyberspace

High volume inexpensive storage media scanners easy to copy and distribute

Literacy & Artistic Material

Photos, Modified pictures Digital music Digital libraries

Proposed Legislation

No free browsing Extend owners’ control to

all digital copies Include all digital

transmissions Make on-line providers

responsible

Technology Bans

If it makes copying easy - ban it

Government controls on technology that can be used for illegal purposes - sound familiar?

Software Developers

Reverse Engineering Copy and decompile Ruled Fair Use in Courts