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