Chapter 4
Intellectual Property
What is Intellectual Property
• The intangible creative work
• Value of intelligence and artistic work
comes from creativity, ideas, research,
skills, labor, non-material efforts and
attributes that the creator provides
• Protected by copyright and patent law
Copyrights
• Copyright holders have exclusive rights:
 To make copies
 To produce derivative works, such as translations
into other languages or movies based on books
 To distribute copies
 To perform the work in public (e.g. music, plays)
 To display the work in public (e.g. artwork,
movies, computer games, video on a Web site)
Changing Technology
• Digital technology and the Internet has made
copyright infringement easier and cheaper
• New compression technologies have made copying
large files (e.g. graphics, video and audio files)
feasible
• New tools allow us to modify graphics, video and
audio files to make derivative works
• Scanners allow us to change the media of a
copyrighted work, converting printed text, photos,
and artwork to electronic form
Copyright Law
• 1790 - first copyright law passed
• Copyright Act of 1909 - defined an unauthorized
copy as a form that could be seen and read visually
• 1976 and 1980 - copyright law revised to include
software and databases (“Fair Use” was defined)
• 1982 - high-volume copying became a felony
• 1992 - making multiple copies for commercial
advantage and private gain became a felony
Copyright Law
• 1997 - No Electronic Theft Act - made it a felony to
willfully infringe copyright by reproducing or
distributing one or more copies of copyrighted work with
a total value of more than $1,000 within a six-month
period
• 1998 - Digital Millennium Copyright Act (DMCA) prohibits making, distributing or using tools to
circumvent technological copyright protection systems;
and included protection from some copyright lawsuits
for Web sites where users post material
• 2005 - Congress made it a felony to record a movie in a
movie theater
Fair Use Doctrine
• Under some circumstances, it is legal to reproduce a
copyrighted work without the permission of the
copyright holder.
• Allows for use of copyrighted material that
contributes to the creation of new work
• & uses that are not likely to deprive authors or
publishers of income for their work
Fair Use Doctrine
•
4 Factors:
1. What is the purpose and character of the use?
2. What is the nature of the work being copied?
3. How much of the copyrighted work is being
used?
4. How will this use affect the market for the
copyrighted work? (this one generally is
given more weight)
Significant Cases
•
•
•
•
•
1984 - Sony v. Universal Studios
1991 - Kinko’s
1992 - Sega v. Accolade
1992 - Atari v. Nintendo
1992 - copies of CD made ok
Significant Cases
•
•
•
•
•
1994 - Davy Jones Locker
1994 - David LaMacchia
2000 - Sony v. Connectix Corp.
2001 - Napster
2005 - MGM v. Grokster
Napster
• Was the sharing of music via Napster fair use?
• Napster's arguments for fair use
 The Sony decision allowed for entertainment use to be considered fair
use
 Did not hurt industry sales because users sampled the music on
Napster and bought the CD if they liked it
 The songs weren’t copied for commercial use
• RIAA's (Recording Industry Association of America) arguments
against fair use
 "Personal" meant very limited use, not trading with thousands of
strangers
 It wasn’t being used for educational, research, or news use
 Songs and music are creative works and users were copying whole
songs
 Claimed Napster severely hurt sales
Napster
• Should Napster be responsible for copyright
infringement?
 Napster had legitimate uses in promoting new bands &
artists who were willing to let users copy their songs
 Napster did not keep copies of songs on its computers
 It provided a means for users to infringe copyrights (like
Betamax)
 Courts said Napster was liable because it had the right &
the ability to supervise its systems - in 2001, they ruled
that Napster “knowingly encourages & assists in the
infringement of copyrights”
Protecting Software
•
•
•
•
Expiration date encoded into the program
Hardware dongle
Copy protection on disks
Activation or registration
• BSA
Threats to Innovation
•
•
•
•
CD writers
DVRs
DVD players
iPod
• Should we ban or restrict software, technology, a
device, or research because it has the potential for
illegal use, or should we ban only the illegal uses?
Criticisms of DRM
• Prevents or threatens fair uses
• Prevents or threatens use of material in
the public domain
• Different types on different platforms
• Does it even work?
DMCA vs Fair Use, Freedom of
Speech, & Innovation
• After DMCA, courts are less likely to
protect technologies that have significant,
legitimate, nonfringing uses
• DeCSS ruled illegal - protests appeared
online
Video Sharing
• What are the responsibilities of sites on
which people post videos?
• Safe-harbor provisions have resulted in
putting the burden on copyright holders to
find the infringing items and send takedown notices.
Ethical Arguments About
Copying
• Can’t afford to buy it
• The company is large, wealthy
• Wouldn’t buy it at retail price anyway so the
company is not losing money
• Making a copy for a friend is an act of generosity
• This is a small violation compared to those who
engage in large piracy outfits
• Everyone does it – you’d be foolish not to
• I don’t know how to get permission to use a song or
video clip
• I’m posting this video as a public service
International Piracy
20 countries with lowest rates in 2006:
21%
22%
25%
25%
26%
26%
26%
27%
27%
27%
U.S.
New Zealand
Japan
Denmark
Austria
Switzerland
Sweden
Finland
U.K.
Belgium
28%
29%
29%
29%
32%
34%
35%
35%
36%
39%
Germany
Netherlands
Australia
Norway
Israel
Canada
UAE
South Africa
Ireland
Singapore
International Piracy
20 countries with highest rates in 2006:
95%
94%
94%
91%
88%
86%
86%
85%
84%
84%
Armenia
Moldova
Azerbaijan
Zimbabwe
Vietnam
Venezuela
Pakistan
Indonesia
Ukraine
Cameroon
84%
82%
82%
82%
82%
82%
82%
82%
82%
81%
Algeria
Montenegro
El Salvador
Zambia
Bolivia
Ivory Coast
China
Nigeria
Paraguay
Guatemala
Search Engines
• Individuals and companies have sued
Google for almost every search service it
provides.
Free Software
• Open source
• Copy-left
• A few examples: Linux, Apache, MySQL,
FireFox
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Chapter 4