Intellectual Property
Chapter 5


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


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



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


Abandon software copyright
? More people benefit from programs
? Users can improve programs
? Create better programs
? Will work for free 'cause luv it


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


Bulletin Board Systems (BBS)
? Freeware and Shareware
? Illegal copies
? Upload and Download
? No charge
? No financial gain


Literacy & Artistic Material
? Photos,  Modified pictures
? Digital music
? Digital libraries



BBS owner responsibilities
? Police their sites
? Contracts
? Legally responsible for sites?


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