intellectual property 4 any unique product of the human intellect that has commercial value (e.g....
TRANSCRIPT
Intellectual Property
Any unique product of the human intellect that has commercial value (e.g. Books, songs, movies, inventions, programs)
Intellectual Property is not its physical manifestation in some medium
Does our accepted notion of right to own property extend to intellectual property?
Concept of Property Rights
Locke’s Second Treatise of Government Right to property in your own person Right to the benefits of your own labor Right to things removed from nature
through your own labor Extends to land by farming Makes sense as long as 2 conditions hold...
Extending to Intellectual Property Ownership of physical objects vs. ideas Paradox 1: two people create the same
intellectual artifact. Therefore, intellectual objects differ from physical by uniqueness.
Paradox 2: a copy is made, but the original media is not “stolen”. How is this different from stealing a physical object?
Benefits of Intellectual Property
If no natural rights to intellectual property, society may still grant rights.
Most people want to be rewarded for spending time to create something.
Society benefits by encouraging creativity. Some people are altruistic and put ideas in
the public domain
Limits to Intellectual Property
Tension between need to reward creativity and disseminate ideas as widely as possible
Compromise: Time limit to exclusive right “Happy Birthday to you” copyrighted in
1935. Under the Copyright Term Extension Act of 1998, it’ll remain copyrighted until...
Trade Secrets
They never expire Value is in confidentiality; so only useful
for things that stay confidential Does not protect against reverse-
engineering. Ideas can spread by hiring employees from
a company with a trade secret.
Trademarks and Service Marks
Grants exclusive use of terminology to identify products and services
Promotes consumer confidence in predictability of brand performance
incentive to brand owner to maintain reputation
Patents
Cover Inventions for 20 years Puts idea in public domain but gives
inventor exclusive rights
Copyrights
Confer Five Principal rights:– Right to reproduce the copyrighted work– Right to distribute copies to the public– Right to display copies in public– Right to perform the work in public– Right to produce new works derived from the
copyrighted work
Copyright Legal Tests
Gershwin Publishing Corp. v. Columbia Artists Management, Inc. (1965-71)
Basic Books v. Kinko’s Graphics Corp. (1980’s-91)
Davey Jones Locker / Richard Kenadek (1994)
No Electronic Theft Act of 1997
Copyright Creep
Copyright act 1790: 28 years 1831: 42 years 1909: 56 years 1976: 75 years 1998: 95 years
Fair Use - factors
What is the purpose and character of the use? What is the nature of the work being copied? How much of the copyrighted work is being
used? How will this use affect the market for the
copyrighted work?
Fair Use Lawsuits
Sony v. Universal City Studios: Movie studios sued Sony over the Betamax VCR. The court decided it was fair use due to “Time Shifting”.
RIAA v. Diamond Multimedia Systems Inc.: RIAA sued over the new Rio digital portable music player. Court upheld fair use due to “Space Shifting”.
Digital Technology & Fair Use
With the advent of CDs, copies of copies are as good as the original
MP3 is 1/10th the size of original music files, making internet sharing practical
Large increase in high-speed internet connections
Personal DVRs
Digital Millennium Copyright Act
Passed in 1998 to bring U.S. into compliance with international copyright agreements.
Significantly curtails fair use (e.g. illegal to copy any digitally recorded work)
Illegal to sell or discuss online any software designed to circumvent copy controls
Protects music broadcast over the internet
Secure Digital Music Initiative
Consortium of 200 entertainment and tech companies to create copy-protected CDs
Unsuccessful for 3 reasons:– Internet copying mushroomed before
protections could be put in place– Sponsors were making money selling MP3
players– The digital watermarking scheme was cracked
Encrypting DVDs
Content Scramble System (CSS) 16-year-old Jon Johansen and DeCSS for
Linux (1999) 2001 Ruling against 2600 Magazine for
publishing the code 2003 Johansen acquitted in Oslo
Making CDs Copyproof
Several systems being considered CD-ROM drives vs. CD players. (“Yellow
Book” standard vs. “Red Book”) Macrovision SafeAudio Large community of programmers to crack
encryption schemes People can always record what they hear.
Criticisms of DRM
Technological fixes are bound to fail Undermines fair use principle Could reduce competition Some schemes prevent people from
accessing content anonymously.
Peer-to-Peer Networks
“A transient network allowing computers running the same networking program to connect with each other and access files stored on each other’s hard drives.”
Stimulate exchange of data by allowing wide access, supporting simultaneous file transfer, and identifying best source for rapid transfer.
Napster
Began in 1999 to facilitate exchange of music files
Sued by RIAA in Dec 1999. Went offline in 2001
FastTrack
Decentralized peer-to-peer network designed by Niklas Zenniström and Janus Friis.
Used by KaZaA and Grokster Similar technology Neonet is used by
StreamCast’s Morpheus Supernodes deliver most content
BitTorrent
Developed by Bram Cohen to overcome the upload bottleneck
Files are broken into pieces and transmitted from multiple computers simultaneously.
Revenge of the Sith available via BitTorrent before it was in theaters.
RIAA Lawsuits
April 2003 RIAA warns Grokster and KaZaA users
Subpoenaed Verizon for names behind IP’s of Supernodes.
Sept 2003, RIAA sues 261 individuals Oct 2003, RIAA sends letters to 204 more Dec 2003, Court rules Verizon does not have
to identify customers.
MP3 Spoofing
Record industry attempt to make downloading MP3’s less reliable.
Overpeer has posted spoofs of 30,000 songs.
BearShare and KaZaA counter with ratings system
Universities in the Middle
RIAA sued 4 students in 2003 asking $100 billion in damages.
In 2002, U.S. Naval Academy seized PC’s of 92 students and punished 85 of them
In 2003, New Jersey Inst. Of Tech. Banned file sharing on its networks
Penn State signed an agreement with Napster so students could download music legally.
MGM v. Grokster
Defendants networks were used to transfer billions of files each month
About 90% on Grokster were copyrighted Grokster and StreamCast promoted themselves to investors as
a new Napster Internal StreamCast memo wanting more copyrighted content
than competitors Grokster sent users a newsletter touting ability to deliver
copyrighted songs Defendants provided tech support to help locate and play
copyrighted songs.
Legal internet music services
Napster, Rhapsody, pressplay, MusicNet America Online (2003) Apple iTunes
– Started April 2003– 99 cents to download– can use on 3 computers, copy to CD, iPod– By Sept 2004, 70% market share
Software Copyrights
First appeared in 1964 Copyright act of 1976 explicitly recognizes
that software can be copyrighted. Typically object code copyrighted, source
code is trade secret.
Violations of Software Copyrights
Copying a program onto a CD to give or sell to someone else
Preloading a program onto the hard disk of a computer being sold
Distributing a program over the internet. APPLE v. FRANKLIN COMPUTER SEGA v. ACCOLADE
Software Patents
Supreme Court Diamond v. Diehr, ruled in 1981 that a computer controlled process of curing rubber could be patented.
Separating mathematical algorithms from inventions
Existing Technical Knowledge (prior art) Bad patents
Open-Source Software
Movement to create software by decentralized contributions
Design that does not restrict ownership
Consequences of Proprietary Software Copyrights are trying to enforce restrictions
on a medium for which they are not suited Copyright is now stifling innovation, rather
than promoting it Ownership of intellectual property is less
valuable than collaborative intellectual strengths
Open-Source Definition
No restrictions on sale or give-away Source code included for distribution No restrictions on use or modification Re-use cannot place more restrictions on
licensing
Beneficial Consequences of Open Source Larger pool of potential improvement – by
every user Rapid evolution every time someone adds
an improvement Eliminates copyright issues Indefinite continued development Promotes additional user services
Examples of Open-Source
BIND – domain name service for the entire Internet
Apache – runs web servers Sendmail – for sending email Perl – web programming Various languages and compilers (Python,
GNU C, etc.)
GNU Project and Linux
Examples of open source in action Creation of fully functional editors,
compilers, and operating system Distribution free, with sellers able to
provide packages with extra functionality if desired
Impact of Open-Source
Exerts downward pressure on competing systems, such as proprietary OSes
Provides stable, supported platforms for businesses at low cost
Critiques of Open-Source
May be low quality if lacking developers May run afoul of build forking Higher barrier to use, with focus more on
utility than interface Poor for stimulating innovation due to lack
of monetary returns
Legitimacy of IP Protection
Rights-based: Difficult proposition; not easily handled like physical ownership
Utilitarian: Piracy damages revenue, which declines innovation, and therefore is harmful to society (unethical).
Creative Commons
Decentralized creative rights Noncommercial for non-derivative works
freely available to all Increased exposure
Off the Book: Economics of IP
IP fits format of “public goods” (Microeconomics, Hal E. Varian)
Increasing ease of distribution moves away from “pay for exclusive use” model
Transformation to public good requires change in market strategies for IP
Off the Book: Ethics of Big IP Companies RIAA, MPAA increasingly restrict user
rights and infringe upon rights of general public
Treat each customer as a revenue stream instead of as a beneficiary of an IP – unethical by Kant
Stifle innovation and damage competition – unethical by utilitarianism
Off the Book: Ransom Method
Means to provide income for creators without standard distribution models
Account holds money or commitment; product released when threshold reached
Encourages release of “sample” works Requires established creator to generate
enough revenue
Off the Book: Micropatronage
Uses massive scalability of internet exposure to generate income from tiny donations by many users
Requires exposure over large networks May lack starting capital Requires internet-distributable model