Intellectual PropertyWhat is Intellectual Property?Property rights to physical propertyAs the OwnerProtection benefitsCopyright and PatentPurpose of copyrights and patentsSoftware CopyrightsCopyright exemptionsCopyright DurationCopyright and Intellectual PropertyPatentsPurpose of PatentsPatents protect...Software as Intellectual PropertySoftware PiracyPiracy - Who does it hurt?Software PublisherHistory of Copyright LawHistory continuedHistory continued...LiabilitiesWhat is Permissible?ITS EASY!!RentalsEducational FacilitiesBusinessesFair Use TestPurpose and Character of UseNature of the Copyrighted WorkRelative AmountEffect on MarketImportance of Fair UsePiracyMass ReproductionIn- House CopyingFreebies for FriendsPreventionTechnical SolutionsEnforcement and EducationMarkets and ManagementCopyright in CyberspaceLiteracy & Artistic MaterialProposed LegislationTechnology BansSoftware DevelopersIntellectual PropertyWeek 6What is Intellectual Property?Intangible creative work embodied in physical formcomes from the creativity, ideas, research, skills, labor, and nonmaterial efforts provided by creatorsProperty 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 itAs the OwnerYou maygive it awaylend itresell itBUT not make copies - this right belongs to owner of copyrightProtection benefitsProtects right of creator for compensationencourages production of valuable, intangible, easily copied creative workCopyright 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 publicPurpose of copyrights and patentsencourage production of useful workencourage the use and flow of information TrademarksSoftware CopyrightsAllow an exception - owner can copy a program to make a backupCopyright exemptionsIdeasFactsTitlesNamesShort phrasesBlank formsCopyright 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 ideasPatents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 yearsPurpose of PatentsTo reward the inventor encourage disclosure and use of inventionallows others to benefit from inventionPatents 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 holderSoftware 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 usePiracy - 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 supportSoftware PublisherAn owner of a software copyrightHistory of Copyright Law1790 - first US copyright law to cover:booksmapschartsUpdated to includemoviessound recordingsphotographyHistory 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 authorshipHistory 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 felonyLiabilities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 computersWhat is Permissible?Copy to hard driveone backuplicense specified copiescopy on second machine - but cannot use both machines at the same timeITS EASY!!Good qualityFastEveryone does itRentalsIllegal Leads to piracy1990 - Software Rental Amendments Act - must have permission of owner of copyrightEducational FacilitiesMore moral obligation to abide by lawsDiscountsSite license agreementsBusinesses“Shoplifting” - take homeextra use for officeOne software package per customerLots of copies OK if limited use at one timeFair Use TestPurpose and character of useNature of copyrighted workRelative amount to the wholeEffect on the marketPurpose and Character of UseCommercial nature or non-profit educational purposesPreamble purposescriticism, comment, news reporting, teaching, scholarship, researchDegree of transformationNature of the Copyrighted WorkSome works are more deserving of protection than othersRelative AmountQuantityQuality and importance“no more was taken than was necessary” to achieve purpose for which the copying was doneEffect on MarketHarm to the originalHarm to derivative worksImportance 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 processPiracyBusinesses - produce and sell unauthorized copies of popular packageBusinesses buy few - install manyDownload Software from InternetMass ReproductionMainly in Foreign countriesIntellectual property not recognizedSmall computer industryFew legitimate dealersPoorer populationIn- 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 confusingFreebies for FriendsIllegalHard to catchSaves moneyEveryone does itNot a large marketPreventionTechnical devices to prevent or deter copyingenforcement and revision of laweducation for protectioneducation of social costsmarketing and contractual changes to