Intellectual Property

Intellectual Property and Changing

Technology
What is Intellectual Property?

The intangible creative work, not its particular physical form

Value of intelligence and artistic work comes from creativity, ideas, research,
skills, labor and attributes the creator provides

Protected by copyright and patent law

Intellectual Property and Changing

Technology (cont.)
What is Intellectual Property? (cont.)

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
To perform
To display

copies

the work in public (e.g. music, plays)

the work in public (e.g. artwork, movies,

computer games, video on a Web site)

Intellectual Property and Changing

Technology (cont.)
Challenges of New Technology:

Storage of all sorts of information (text, sound, graphics, video) in standard digitized formats;
the ease of copying digitized material and the fact that each copy is a perfect copy

High-volume, relatively inexpensive digital storage media, including hard disks for servers and
small portable media such as DVDs, memory sticks, and flash drives

Compression formats that make music and movie files small enough to download, copy, and store

Search engines, which make it easy to find material, and the Web itself

Peer-to-peer technology, which permits easy transfer of files over the Internet by large numbers
of strangers without a centralized system or service; and later, file hosting services that enable
storage and sharing of large files (e.g., movies)

Broadband (high speed) Internet connections that make transfer of huge files quick and enable
streaming video

Miniaturization of cameras and other equipment that enable audience members to record and
transmit movies and sports events; and, before that, scanners, which simplify converting printed
text, photos, and artwork to digitized electronic form

Software tools for manipulating video and sound, enabling and encouraging non professionals

to create new works using the works of others

Discussion Question

What are illegal derivative works, Examples ?

Copyright Law and Significant Cases

(cont.)
A bit of history:

1790 first copyright law passed which covered covered books, maps, and
charts.

1909 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 that
exhibit "authorship" (original expression of ideas), included the "Fair Use
Doctrine.

1982 high-volume copying became a crime

1992 making multiple copies for commercial advantage and private gain
became a crime

Copyright Law and Significant Cases

(cont.)
A brief history:

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 even if there is no
commercial advantage or private gain.

1998 Digital Millennium Copyright Act (DMCA) prohibits making, distributing or

using tools to avoid technological copyright protection systems

2005 Congress made it a felony to record a movie in a movie theater

Copyright Law and Significant Cases

(cont.)
Fair Use Doctrine:

The purpose and nature of the use, including whether it is for commercial
purposes or nonprofit educational purposes.

The nature of the copyrighted work. (Use of creative work, such as a novel, is
less likely than use of factual work to be fair use.)

The amount and significance of the portion used.

The effect of the use on the potential market for or value of the copyrighted
work.

Copyright Law and Significant Cases

(cont.)
Significant Cases:

Sony vs. Universal City Studios (1984)

In the 1970s,Sonydeveloped theBetamaxvideo tape recording

format

Universal Studiosand theWalt Disney Companywere among the

film industry members who were wary of this development

The companies therefore opted to sue Sony and its distributors in

California District Courtin 1976, alleging that because Sony was
manufacturing a device that could be used forcopyright infringement

Copyright Law and Significant Cases

(cont.)
Significant Cases:
Sony v. Universal City Studios (1984)

Supreme Court decided that the makers of a device with legitimate

uses should not be penalized because some people may use it to
infringe on copyright

Supreme Court decided copying movies for later viewing was fair
use

Arguments against fair use

People copied the entire work

Movies are creative, not factual

Copyright Law and Significant Cases

(cont.)
Significant Cases (cont.):

Sony v. Universal City Studios (1984) (cont.)

Arguments

for fair use

The copy was for private, noncommercial use and
generally was not kept after viewing
The movie studios could not demonstrate that they
suffered any harm
The

studios had received a substantial fee for

broadcasting movies on TV, and the fee depends on
having a large audience who view for free

Copyright Law and Significant Cases

(cont.)
Significant Cases (cont.):
Reverse engineering: game machines

Sega Enterprises Ltd. v. Accolade Inc. (1992)

Courts

ruled that reverse engineering does not

violate copyright if the intention is to make new
creative works (video games), not copy the
original work (the game systems)

Copyright Law and Significant Cases

(cont.)
Significant Cases (cont.):
Sharing music: the Napster case
Was the sharing of music via Napster fair use?
Napster's arguments for fair use

The Sony case showed that the Supreme Court is willing to include
entertainment as a possible fair use purpose.

Napster argued that sharing songs via its service was fair use because people
were making copies for personal, not commercial, use.

Copyright Law and Significant Cases

(cont.)
Significant Cases (cont.):
Sharing music: the Napster case (cont.)
RIAA's (Recording Industry Association of America) arguments
against fair use
"Personal" meant very limited use, not trading with
thousands of strangers
Songs and music are creative works and users were copying
whole songs
Claimed Napster severely hurt sales
Court ruled sharing music via copied MP3 files violated copyright

Copyright Law and Significant Cases

(cont.)
Significant Cases (cont.):
Sharing music: the Napster case (cont.)
Was Napster responsible for the actions of its users?
Napster's arguments
It was the same as a search engine, which is
protected under the DMCA
They did not store any of the MP3 files
Their technology had substantial legitimate uses

Copyright Law and Significant Cases

(cont.)
Significant Cases (cont.):
Sharing music: the Napster case (cont.)
RIAA's arguments
Companies are required to make an effort to prevent copyright violations
and Napster did not take sufficient steps
Napster was not a device or new technology and the RIAA was not seeking
to ban the technology
Court ruled Napster liable because they had the right and ability to supervise the
system, including copyright infringing activities

The court ruled in 2001 that Napster knowingly encourages and assists in the
infringement of copyrights.
Napster faced civil suits

Discussion Question

What do you think the impact would be on creative industries, such as music,
movies and fiction novels, if copyright laws did not protect their intellectual
property?

Responses to Copyright Infringement

Industries employ various approaches to prevent unauthorized access of products
and education of copyright.

Ideas from software industries

Software destroyed after expiry date.

Dongles (a device that must be plugged into a computer

port)thats ensures software will run on one pc.

Copy protection that prevents copying

Activation or registration codes

Responses from the Content Industries (cont.):

Banning, suing and taxing

Ban or delay technology via lawsuits
1. CD-recording devices
2. Digital Audio Tapes (DAT)
3. DVD players
4. Portable MP3 players
Require that new technology include copyright
protections
Tax digital media to compensate the industry for
expected losses(i.e. taxes on ipods, cell phones etc)

Copying and Sharing

Digital Rights Management

DRM are a collection of techniques that control access to and uses of intellectual
property in digital formats.

DRM includes hardware and software schemes using encryption and other
tools.

DRM applications embedded in text files, movies, ebooks can prevent saving,
making more than a specified number of copies.

The producer of a file has flexibility to specify what a user may do with it

Apple, Microsoft and Sony all use different schemes of DRM

Copying and Sharing

U.S. courts have banned technologies such as DeCSS

(DecryptionofContentsScramblingSystem) even though it has legitimate
uses, while courts in other countries have not

DECSS

DeCSSwas one of the first freecomputer programscapable of decrypting

content on a commercially producedDVDvideo disc. Before the release of
DeCSS,Linux-based computing systems could not play video DVDs.

DeCSS was developed without a license from theDVD Copy Control Associatio
n.

Copying and Sharing (cont.)

Video Sharing: Conflict and Solutions:

The safe harbor provisions of the DMCA protect websites from lawsuits and
criminal charges for copyright infringement when users post infringing
material.

Burden on copyright holder

Viacom Vs YouTube

Take down notices may violate fair use, some have been issued against small
portions of video being used for educational purposes.

Copying and Sharing

Ethical Arguments About Copying:

Unlike physical property, copying or distributing a song, video, or computer

program does not decrease the use or enjoyment by another person

Copying can decrease the economic value of creative work produced for sale

The fair use guidelines are useful ethical guidelines

There are many arguments for and against unauthorized copying

Copying and Sharing

International Piracy:

Some countries do not recognize or protect intellectual property

Countries that have high piracy rates often do not have a significant software
industry

Many countries that have a high amount of piracy are exporting the pirated
copies to countries with strict copyright laws

Copying and Sharing

Discussion Question

Some have argued that copyright lawsuits have been used to stifle innovation,
do you agree? Why or why not?

Search Engines and Online Libraries

Copying is essential to the services of search engines

In response to search queries, search engines display copies of text excerpts

from websites and copies from images or video.

Caching and displaying small excerpts is fair use

Creating and displaying thumbnail images is fair use

Search Engines and Online Libraries

Books Online

Project Gutenberg began converting books in the public domain into digital formats in
the 1970s.(typed whole book)

Microsoft scanned millions of public domain books in University of California's library

Google has scanned millions of books that are in the public domain and that are not;
they display only excerpts from those still copyrighted

Some court rulings favor search engines and information access; some favor content
producers

French publisher, won a suit against Google (in France) for scanning

its books and putting excerpts online without permission.

Ethically permission is required

Free Software

Free software is an idea supported by a large group of computer programmers who allow
and encourage people to copy, use, and modify their software.

Free software enthusiasts advocate allowing unrestricted copying

of programs and making the source code (the human-readable form of a program) available
to everyone.
Software distributed or made public in source code is open source
Proprietary software - (commercial) sold in object code ( not modifiable) (E.g.: Microsoft
Office)
Advantages:

more people can use and benefit from a program.

find and fix bugs quickly

improve programs

Issues for Software Developers

Patents for Software?

Patents protect inventions of new things or processes

The Supreme Court said that software could not be patented; however a
machine that included software could

Patents are not supposed to be given for things that are obvious or are
already in common use

Patents on Web Technologies:

Decisions about granting patents are complex.

Various organizations, including the Electronic Frontier Foundation,

argue that many patented techniques are not particularly new or innovative.

IBM sued Amazon for violating several of its patents on ecommerce

techniques.
Amazon agreed to pay IBM who holds patents for online catalogs and targeted
advertising

Intellectual copyright
law in Pakistan

The Copyright Ordinance, 1962

Copyright law in Pakistan was first introduced in 1962 through an Ordinance.

The types of work protected under the Ordinance are original (1) literary
works, (2) dramatic works; (3) musical works; (4) artistic works, including
drawings, maps, photographs and architectural works; (4) cinematographic
works and (5) records.

It was only in 1992 that an amendment was made in the definition of

"literary work" to extend coverage to computer programmes.

Intellectual Copy right law in Pakistan

In 1972, massive devaluation of Pakistani currency altogether changed the

situation of book industry.

Books of foreign origin were the main source in almost all higher educational
institutions including professional and technical institutions.

As a result, the price of these books increased beyond the reach of ordinary
students. The shortage of books so occurred resulted in disturbances on the
campuses that created a law and order situation in the country.

National book foundation

National Book Foundation (NBF) was established in 1972 through an Act of the
Parliament.

The objectives were primarily educational welfare.

The Government of Pakistan authorized NBF to reprint books needed by the

students at low prices. This infuriated the foreign publishers who took it as
infringement of copyright.

Reproduction of foreign Textbooks

Reproduction of foreign textbooks was one of the activities of the NBF.

As a policy, the NBF, in consultation with the USA and the UK Publishers
Associations, decided to pay royalty of all the books published by it ,Royalties
were accepted by the publishers.

Aroyaltyis a payment made by one party (the "licensee") to another that

owns a particularasset(the "licensor") for the right to ongoing use of that
asset.Royalties are typically agreed upon as a percentage of gross or net
revenues derived from the use of an asset

This practice continued smoothly till 90s when the reprint programme of NBF
was restricted and the local pirated editions started flooding the market.

Intellectual property right law

Recently amended Section 74(1) of the Ordinance now gives additional powers
to police to seize infringing copies of the work. The section empowers any
police officer, if he is satisfied that an offence in respect of infringement in
any work has been, is being, or is likely to be committed, to seize without
warrant all copies of the work and all plates and recording equipments used
for the purposes of making infringed copies of the work, wherever found, and
all copies, as soon as possible.

Discussion Question
Are computer software programs protected bycopyright law in Pakistan?

Yes, computer software programs are protected by copyright law. Copyright

protects an authors original expression in a computer program.

Patents on Web Technologies:

Friendster applied for a patent on its social-networking Web techniques.

While the patent was pending, sites such as MySpace sprang up. Friendster's
patent was granted and it may now charge licensing fees to businesses using
the technology.