Transcript Chapter 6 - Intellectual Property Rights

Chapter 6
Intellectual Property
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Chapter 6 - Intellectual Property
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Chapter 6 - Objectives
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3.
4.
Define intellectual property.
Discuss copyrights, patents, and trade secrets.
Define reverse engineering.
Summarize the purpose of the Uniform
Computer Information Transactions Act.
5. Distinguish competitive intelligence from
industrial espionage.
6. Outline a strategy to protect your organization
from cybersquatting.
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Intellectual Property
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Intellectual property includes works of the
mind such as art, books, films, formulae,
inventions, music, and processes that are
distinctive and that are “owned” or created
by a single entity.
Copyrights, patents, and trade secrets are
used to protect intellectual property.
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Copyright
A copyright is a form of protection provided by law
that grants the authors of “original works of
authorship in any tangible medium of expression,
now known or later developed, from which they
can be perceived, reproduced, or otherwise
communicated, either directly or with the aid of
machine or device, the exclusive right to
distribute, display, perform, or reproduce the work
in copies or to prepare derivative works base
upon the work.”
1976 Copyright Act prevents others from
reproducing the work for the authors life plus 70
years.
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Fair Use Doctrine
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Four factors to determine whether a
copyright is a fair use:
1. The purpose and character of the use (e.g., is
the use for commercial or nonprofit,
educational purposes)
2. The nature of the copyrighted work
3. The portion of the copyrighted work used
4. The effect of the use upon the value of the
copyrighted work
• Fair Dealing – Wikipedia
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Software Copyright Protection
• Software copyright is “tricky”.
• To prove infringement, the copyright
holder must show a resemblance that
could only be explained by copying.
• Developing a software package
without prior knowledge is difficult to
prove or disprove.
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Digital Millennium
Copyright Act
• November 1998
• To comply with the global copyright
protection treaty from the World
Intellectual Property Organization - Part
of the United Nations.
• Penalties of 5 years in prison and/or
fines of up to $500,000.
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Legal Overview - DeCSS
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Content Scramble System (CSS) is an
encryption-based security and
authentication system used in DVDs.
DeCSS software breaks the encoding
system used in digital video disks.
In 2000, eight movie studios sued 2600:”
The Hacker Quarterly for posting the
DeCSS program.
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Legal Overview – DeCSS (contd.)
• The Motion Picture Association of
America filed injunctions to block
the Internet distribution of DeCSS
software.
• Courts ruled that unauthorized
reverse engineering of the DVD
system violated copyright and trade
secret laws.
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Patents
• A patent enables the inventor to take legal
action against those who, without the
inventor’s permission, manufacture, use or
sell the invention during the period of time
the patent is in force.
• The United States Patent and Trademark
Office reviews patent applications and
issues patents to approved inventions.
• Patents in Canada
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Patented Invention
• It must fall into one of five statutory
classes of things that can be patented.
• It must be useful.
• It must be novel.
• It must not be obvious to a person
having ordinary skill in the art to which
said subject matter pertains.
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No Patent Protection
• The U.S. Supreme Court has ruled
that there are three categories of
subject matter for which one may not
obtain patent protection:
1. Abstract ideas
2. Laws of nature
3. Natural phenomena
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Software Patents
• Since the 1980s, the USPTO has
granted a large number of softwarerelated patents. Examples include:
– Applications and business software
– Compilation and system software
– Edit, control, and operating system software
• Software patents – Canada
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Trade Secrets
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The UTSA defines a trade secret as “information,
including a formula, pattern, compilation,
program, device, method, technique, or process
that:
1. Derives independent economic value, actual or
potential, from not being generally known to, and not
being readily ascertainable by persons who can obtain
economic value from its disclosure or use
2. Is the subject of efforts that are reasonable under the
circumstances to maintain its secrecy
•
Trade Secrets – Canada
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Trade Secret
• To qualify as a trade secret, the
secret must have
1. Economic value
2. Must not be readily ascertainable
3. The trade secret owner must take steps
to maintain its secrecy
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Advantages of Trade Secrets
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No time limitations on the protection of
trade secrets
No need to file an application, make any
disclosures, or otherwise disclose a trade
secret to outsiders
Patents are frequently ruled invalid by
courts, meaning that the then-disclosed
invention no longer has protection
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Nondisclosure & Non-compete
• A nondisclosure clause requires
employees to refrain from revealing
secrets that they learn at work.
• A non-compete agreement requires
employees to not work for any
competitors for a set period of time.
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Intellectual Property Issues
• Reverse engineering is the process of breaking
something down in order to understand it, build a
copy of it, or improve it.
• A compiler is a language translator that converts
computer program statements into machine
language that a computer can execute.
• A decompiler is a software tool that reverse
reengineers a software application.
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Intellectual Property Issues
• In 1999 the National Commissioners
on Uniform State Laws approved the
Uniform Computer Information
Transactions Act.
• The UCITA applies uniform
legislation to software licensing
issues.
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Organizations That Support
UCITA
• Software and Information Industry
Association
• Information companies like Microsoft and
AOL
• Others (Caterpillar, Circuit City, insurance
companies)
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Organizations That Oppose
UCITA
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Association for Computing Machinery
Computer and Communications Industry
Association
Computer Professionals for Social Responsibility
Digital Future Coalition
Electronic Frontier Foundation
International Communications Association
Society for Information Management
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UCITA
• The UCITA defines a software
license as a contract that grants
permission to access or use
information subject to conditions set
forth in the license.
1. Shrink-wrap
2. Click-on
3. Active click wrap
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Competitive Intelligence
• The gathering of legally obtainable
information that will help a company
gain an advantage over its rivals.
• Competitive intelligence is not
industrial espionage.
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Common Sources of
Competitive Intelligence
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Annual reports
Quarterly reports
Press releases
Promotional
materials
• Web site
• Standard and Poor’s
stock report
• Dun & Bradstreet
credit report
• Interviews with
suppliers,
customers, former
employees
• Calls to customer
service
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Intellectual Property Issues
• A trademark is anything that enables a
consumer to differentiate one company’s
products from another.
– Trade Mark – Canada
“A trade-mark is a name, symbol, or slogan which
identifies or distinguishes a business or a product
from the businesses or products of others.”
• Cybersquatters are people who register
domain names to which they have no
connection in the hope of profiting from
the legitimate trademark owner.
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Summary
• Intellectual property refers to works of the mind
such as art, books, films, formulae, inventions,
music, and processes.
• Copyrights, patents, and trade secrets provide a
complex body of law regarding the ownership of
intellectual property.
• Reverse engineering provides a means to gain
access to information that another organization
may have copyrighted or classified as a trade
secret.
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Intellectual Property Issues
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A decompiler is a software tool that reverse
reengineers a software application.
The 1998 Digital Millennium Copyright Act
explicitly outlaws technology that can defeat
copyright protection devices, but permits reverse
engineering encryption, interoperability, and
computer security research.
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Summary
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The UCITA is a controversial act that would
apply uniform legislation to software
licensing issues.
Competitive intelligence is not industrial
espionage.
To avoid cybersquatting problems,
organizations register their trademarks as
soon as they know them.
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Case 1- Napster
• Napster is a Web-based service
founded in 1999 by Shawn Fanning.
The goal is to provide music
enthusiasts with an easy-to-use
service for discovering and down
loading music. The recording
industry strongly objected to Napster.
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Case 2 - Lotus v. Borland
• The Lotus v. Borland lawsuit lasted
over five years going all the way to
the Supreme Court and set a
precedent that clarified the limits of
software copyright protection. The
case dealt with the “look and feel” of
software.
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