Group 6

Overview
What Is Intellectual Property?
Copyrights
Patents
Trade Secrets
Current Intellectual Property Issues 239

Plagiarism
Reverse Engineering
Open Source Code
Competitive Intelligence
Trademark Infringement
Cybersquatting
 What Is Intellectual
Property?
ll ec tu al pr op er ty is a te rm us ed
Inte
sc ri be wo rk s of th e mi nd —s uc h
to de
as art, books, films, formulas,
inventions, music, and processes—
th at ar e di st in ct an d ow ne d or
d by a si ng le pe rs on or gr ou p.
create
It is protected through copyright,
patent, and trade secret laws.
 Copyright
A copyright is the exclusive right to
distribute, display, perform, or reproduce an
original work in copies or to prepare
derivative works based on the work. Copyright
protection is granted to the creators of
“original works of authorship in any tangible
medium of expression
Copyright Term
Copyright law grants developers exclusive rights to their works
for a set period. Since 1960, the term has been extended 11
times from the original 28 years. The 1998 Copyright Term
Extension Act (Sonny Bono Act) established the following limits:

Works created after January 1, 1978, are protected for the

author's life plus 70 years.
Unpublished works before January 1, 1978, are also protected
for life plus 70 years, but not before December 31, 2004.
For works created before 1978 that are still in their
original or renewable term of copyright, the total term was
extended to 95 years from the date the copyright was
originally secured.
 Copyright
Infringement
is a violation of the rights secured by the
owner of a copyright. Infringement occurs
when someone copies a substantial and
material part of another’s copyrighted work
without permission.
 Eligible Works
The types of work that can be copyrighted
include architecture, art, audiovisual works,
choreography, drama, graphics, literature,
motion pictures, music, pantomimes, pictures,
sculptures, sound recordings, and other
intellectual works
 Fair Use Doctrine
The Fair Use Doctrine balances an author’s rights with
public access to copyrighted works. It allows limited use
of copyrighted material without permission under specific
conditions.

1. The purpose and character of the use (such as

commercial use or nonprofit, educational purposes)
2. The effect of the use on the value of the
copyrighted work
3. The portion of the copyrighted work used in relation
to the work as a whole
4. The nature of the copyrighted work
 Software Copyright
Protection
Software copyright protection involves complex
interpretation issues, and a software manufacturer can
create a program that resembles a competitor's
copyrighted program without infringing on the other's
copyright. To register a copyright, the owner must
provide basic information. In a case involving Google and
Oracle, the jury found that Android did not infringe
Oracle-owned copyrights because its reimplementation of
Java APIs represented fair use. This case highlights the
potential for copyright law to control programming
practices, potentially altering software development
practices worldwide.
 The Prioritizing Resources and
Organization for Intellectual
Property Act of 2008

Established the Intellectual Property Enforcement Coordinator position

and increased trademark and copyright enforcement. It also established
the Computer Hacking and Intellectual Property (CHIP) program, which
focuses on computer and intellectual property crimes.
General Agreement on Tariffs and
Trade

The General Agreement on Tariffs and Trade (GATT) was

a multilateral agreement governing international
trade, resulting in the Uruguay Round and the
creation of the World Trade Organization (WTO). GATT
includes a section on copyrights, and U.S.
intellectual property law was amended to align with
GATT. However, copyright protection varies globally.
 The WTO and the WTO TRIPS
Agreement (1994)
The World Trade Organization (WTO) is a global
organization that regulates international trade through
agreements negotiated by trading nations. With 164
member nations, it aims to assist producers, exporters,
and importers in conducting global business. The WTO
TRIPS Agreement, established in 1994, sets minimum
protection levels for intellectual property rights
among WTO members, requiring governments to enforce
these rights and impose severe penalties for
infringement.
The World Intellectual Property
Organization Copyright Treaty
(1996)

The World Intellectual Property Organization (WIPO)

adopted the 1996 WIPO Copyright Treaty, providing
additional copyright protections for electronic media,
ensuring literary works, and allowing authors control
over rental and distribution of their work.
The Digital Millennium Copyright
Act (1998)

Signed in 1998, aims to protect intellectual property by

prohibiting circumvention of technical protections and
providing "safe harbors" for Internet service providers
to comply with copyright laws.
 Patents
A patent is a grant of a property right
issued by the U.S. Patent and Trademark
Office (USPTO) to an inventor. A patent
permits its owner to exclude the public from
making, using, or selling a protected
invention, and it allows for legal action
against violators.
 There are six types of patents, with
the two of main concern to information
technology firms being the UTILITY
PATENTS and the DESIGN PATENTS.
 ILITY PATENT
UT DESIGN PAT
A u t i l i t y p a t ent i s
h
g
a
r
s
a nt
a
e d fo
p r oces
r a
s ,
n e
m
w
a c
a
hi
n
n
d
e ,
A design p
ENT
v e n t i o n su c o r an atent prot
us e f u l i n of m a t t e r , ects a new
m p o s i t i o n ornamental , original
f a c t u r e , o r co e o w n e r the design app , and
m a n u I t gives t h manufactur l ied to an
n t on t h e m . s in g, e. It allo article of
im p r o v e m e k i n g , u ws the own
o t h e r s f r om ma others fro er to prev
h t t o p r e v ent t o 2 0 years m making, ent
rig n t i o n for u p design. Fo u s i n g, or selli
n g t he i n v e t e , as r patents ng the
or s e l l i n fil i n g d a f i led on or
p p l i c a t i o 2015, the after May
m t h e p a t e nt a e p a id. protection 13,
fro n a n ce f e e s a r the grant l a s t s for 15 yea
m a i n t e date, whil rs from
long as e those fi
date are p led before
rotected f that
or 14 year
s.
 Leahy-Smith America
Invents Act (2011)
The Leahy-Smith America Invents Act (2011), passed in
2011, changed the US patent system from a "first-to-
invent" to a "first-inventor-to-file" system. This means
that the first person to file with the USPTO will receive
the patent, not necessarily the inventor. The act also
expanded the definition of prior art, making it more
difficult to obtain a US patent.
 Software Patents
Software patents claim inventions involving computer-
executed instructions. Courts and the USPTO have changed
their attitudes on software patenting since 1981. Since
then, thousands of software-related patents have been
granted annually, including application software,
business software, expert systems, system software,
compilation routines, editing and control functions, and
operating system techniques. However, courts have become
more restrictive since the 2000s, leading to increased
costs and business risks associated with software
development.
 Cross-Licensing
Agreements
Large software companies often have cross-licensing
agreements, allowing each party to license each other's
patents without suing each other over patent
infringements. This can lead to significant cost savings
for small businesses, who often struggle to enforce their
patents against larger companies. The average patent
lawsuit costs $3 to $10 million and takes two to three
years to litigate, making it difficult for small firms to
fight and often settle and license their patents to the
large company.
Patents Infringement
is violation of the rights secured by the owner of a
patent, occurs when someone makes unauthorized use of
another’s patent. Unlike with copyright infringement,
there is no specified dollar amount limitation on the
monetary penalty if patent infringement is found. In
fact, if a court determines that the infringement is
intentional, it can award up to three times the
amount of the damages claimed by the patent holder.
 Trade
Secrets
is defined as business information that
represents something of economic
value, has required effort or cost to
develop, has some degree of uniqueness or
novelty, is
generally unknown to the public, and is kept
confidential.
 Tr ad e Se cr et
c ti on / La w
Prote Trade secr
et law pr
otects onl
n s by the misapp y against
ct i on b e gi ropriation
c re t pr o t e If competi of trade s
Trade se i nf o r m at i o n t hat tors come ecrets.
a ll t he up with th
identifying fr o m un d i sc l o sed idea on th
eir own, i
e same
ot e c te d t is not
must be pr t o ma rk e t r e se a rc h misappropr
iation; in
pp l ic at io n s law doesn other word
pat en t a d ev e l op i n g a ’t prevent s, the
pl a n s— and someone fr
nd bu si n es s p i n g the the same i om using
a e gy f o r k e e dea if it
ns i v e s t ra t independen was develo
com pr eh e e . tly. Trade ped
i on s e cu r secret law
informat more techn
ology worl s protect
dwide than
patent
laws do.
 Following Key
advantages:
There are no time limitations on the protection of trade
secrets, as there are with patents and copyrights.
There is no need to file an application, make disclosures to any
person or agency, or disclose a trade secret to outsiders to
gain protection. (After the USPTO issues a patent, competitors
can obtain a detailed description of it.) Hence, no filing or
application fees are required to protect a trade secret.
Although patents can be ruled invalid by the courts, meaning
that the affected inventions no longer have patent protection,
this risk does not exist for trade secrets.
Tr a d e S e c r e t
Laws
Trade Secrets Law
Secrets Act (UTSA)
Uniform Trade

(EEA) of 1996 (18

nage Act
Economic Espio
U.S. Code § 183)

Secrets Act of 2016

Defend Trade
Employees and Trade Secrets
Employees are the greatest threat to the loss of
company trade secrets—they might accidentally
disclose trade secrets or steal them for
monetary gain. Organizations must educate
employees about the importance of maintaining
the secrecy of corporate information. Trade
secret information should be labeled clearly as
confidential and should only be accessible by a
limited number of people. Most organizations
have strict policies regarding nondisclosure of
corporate information.
 CURRENT
INTELLECTUAL
PROPERTY
ISSUES
 Plagiarism
s om e on e ’s i d ea s or
h e a c t o f st e a l in g
Plagi ar is m i s t lo si o n
on e ’ s o w n. Th e e x p
p a s si n g t he m o f f a s
words an d th e w eb h av e
a nd t he g ro w th o f
c tr o ni c c o nt e nt
of ele p ar a gr a ph s i nt o t e rm
t o cu t an d pa s t e
made i t ea s y t i o n or
w i th o u t p r op e r c it a
a nd ot h e r do c u men t s
paper s
qoutation marks.
 Pla gia ri sm in
Stu de nt s c l ea r l y d e f i ne
h i cs i n p l a ce th a t
co d e s o f e t
Despite es r a n gi n g f r o m n o
p r e sc r i be p en a l t i
pla gi a r is m a n d t il l d o
o n , m an y s t u d e nt s s
a p a p e r to e x p ul s i
cred i t o n a ri s m . S o me
c o n s t it u t e s p l a g i
un d e rs t a n d w h at
not i c co n t e n t i s i n t h e
e t h a t a l l e l ec t r o n
stude n t s b e li e v c o mm i t
s t u de n t s kn o w i n g ly
om a i n, w h i l e o t he r
public d p re s s u re to
b ec a u s e t h e y f e e l
plagiar i s m e it h e r o r
t h e y a r e t oo l a zy
i g h GP A o r b e c a u se
ach ie v e a h
t o do o r i gi n a l wo r k
pres s ed f or t i me
 The following list shows some of the
actions that schools can take to combat
student plagiarism:
Help students understand what constitutes plagiarism and why they need to
cite sources properly.
Show students how to document web pages and materials from online
databases.
Schedule major writing assignments so that portions are due over the
course of the term, thus reducing the likelihood that students will get
into a time crunch and be tempted to plagiarize to meet the deadline.
Make clear to students that instructors are aware of Internet paper mills.
Ensure that instructors both educate students about plagiarism detection
services and make them aware that they know how to use these services.
Incorporate detection software and services into a comprehensive
antiplagiarism program.
Reverse Engineering
Reverse engineering involves taking apart a product to
understand, replicate, or improve it. Initially used for
hardware, it's now also applied to software. In software, reverse
engineering involves analyzing code to recreate the system at a
higher level of abstraction, often starting by extracting design
details. Microsoft has been accused multiple times of reverse
engineering, including copying aspects of the Apple Macintosh
interface, utility features, word-processing and spreadsheet
designs for Word and Excel, and Google's search methods for Bing.
 an d Le ga l Co nc er ns
Ethical gi ne er in g
in Re ve rs e En

P r o pe r ty Th e f t
Intellectual
Ethica l B o un d ar i e s
 Open Source
Open source code is any program whose source code is made available
for use or modification, as users or other developers see [Link]
basic premise behind open source code is that when many programmers
can read, redistribute, and modify a program’s code, the software
improves. Programs with opensource code can be adapted to meet new
needs, and bugs can be rapidly identified andfixed. Open source code
advocates believe that this process produces better software thanthe
traditional closed model.
Examples: Linux, Apache HTTP, PHP, Perl,Python, or Ruby.
 i r m s o r i n d i v i d u a l
Reaso n s t h a t f u r c e
e r s c r e a t e o p e n s o
de v e l o p u g h
code, ev e n t h o
e i v e m o n e y f o r i t ,
they d o n o t r e c
l u d e t h e f o l l o w i n g
inc
 p e ct f o r s o l vi n g a
c od e t o e a rn r e s
So m e pe o pl e sh a r e
i n an e l e ga n t w a y .
common problem o urc e c o d e t h a t wa s
e u s e d o p e n s
Some people hav n e e d t o pa y b ac k b y
t he r s a n d f e el t h e
de v el o pe d b y o
he r de v e lo p e r s .
helping ot s o f t w ar e a s pa r t o f a n
i r e d t o de v e l o p
A firm may be requ r o bl e m. I f th e f i r m i s
dd r e ss a c l i en t ’ s p
ag r ee m en t to a el o p t h e
t i me s p e nt t o d e v
o y ee s ’
paid for the empl f t w a r e it s e l f, i t ma y
h a n f o r t h e s o
software rather t en s o ur c e a n d us e i t
n se th e c o d e a s o p
de c id e t o l ic e a s a n
r m’ s e x p e rt i s e o r
t h e f i
either to promote n t i al c li e n t s w it h a
r a c t o t h e r p ot e
incentive to att
similar problem.
 d e i n th e h o p e of
op o pe n so u rc e c o
A fir m ma y de ve l s e r’ s
e e s i f th e e nd u
ai n t en a nc e f
earning software m
a ng e i n t he f ut u r e.
needs ch
may b e re l u ct a n t t o
us e f ul co d e bu t
A firm may develop h t d on at e t h e co d e to
i t , a nd so m i g
license and market
the ge ne r al p ub li c
 pen Source Licenses
Examples of O

ic Li ce ns e ( GP L)
GNU General Publ
MIT License
Apache License
BSD License software content)
s li ce ns es (f or non-
Creative Common
Competitive Intelligence
Competitive intelligence is legally obtained information that is
gathered to help acompany gain an advantage over its rivals. For
example, some companies have employees who monitor the public
announcements of property transfers to detectany plant or store
expansions of competitors. An effective competitive
intelligenceprogram requires the continual gathering, analysis, and
evaluation of data withcontrolled dissemination of useful information
to decision makers. Competitiveintelligence is often integrated into
a company’s strategic plan and executivedecision making.
 e lli ge nc e ca n be
fo r com pe ti tive int
ll th e da t a n ee ded v iew s, as
Almost a o rmation o r in te r
in g pu bli sh ed in f
ed fr o m ex a mi n
collect
n th e fo l lo w in g li st:
outlined i

K o r a n n ua l re p o r ts r t ow ning mo re
• 10- y s ha re h ol d er s who re po
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• An SC 1 3 D a c q mp any
tock i n a p ub l ic co
er c e nt o f c o m m on s
than five p
r q u a rt e r ly r e po r t s
• 10-Q o
• Press releases
ro m ot i o n al m at e r i als
• P
• We b si t es S ta n da rd & P oo r’s
c om m un it y , su c h as a
s b y t h e i n ve s t me nt
• Analyse
stock report
e e t c r e di t re po rt s
• Dun & Bradstr m ers, a nd fo rm er e mp l oy ees
su p p l ie r s , cu st o
• Interviews with
 s to m er ser vi ce gr oups
s to co m pe ti to r s’ cu
• Call
i n t he t r ad e pr es s d with
• Articles an d oth er filings associate
l im pa c t st at e me nts
• Envir on men t a
n s io n o r c on s tr uc t ion
a plant expa
• Patents

tive Intelligence:
and Tools for Competi
Software

Rapportive
Crunchbase
CORI
[Link]
[Link]

---
 Trademark
Infringement
A trademark is a logo, package design, phrase, sound, or word
that enables a consumer to differentiate one company’s products
from another’s. Consumers often cannot examine goods or services
to determine their quality or source, so instead they rely on
the labels attached to the products.
 The Lanham Act of 1946 (also The United States has a federal
known as the Trademark Act, system that stores trademark
Title 15, of the U.S. Code) information;
Merchants can consult this information to
defines the use of a trademark, the
avoid adopting marks that have already
process for obtaining a trademark from the
been taken.
USPTO, and the penalties associated with
trademark infringement.
Merchants seeking trademark protection
apply to the USPTO if they are using the
The law gives the trademark’s owner the
mark in interstate commerce or if they can
right to prevent others from using the
demonstrate a true intent to do so.
same mark or a confusingly similar mark on
a product’s label.
Trademarks can be renewed forever—as long
as a mark is in use.
Nominative fair use
is a defense often employed by the defendant in trademark
infringement cases in which a defendant has used a plaintiff’s
mark to identify the plaintiff’s products or services in
conjunction with its own product or services.
To successfully employ this defense, the defendant must show three
things:

• that the plaintiff’s product or service cannot be readily

identifiable without using the plaintiff’s mark,

• that it uses only as much of the plaintiff’s mark as necessary

to identify the defendant’s product or service, and

• that the defendant does nothing with the plaintiff’s mark that
suggests endorsement or sponsorship by the plaintiff.
 Trademark Cases:
Playboy vs. Apple vs. IGB
Terri Welles: Eletronica:
In Playboy Enterprises, Inc. v. Terri Welles, IGB Eletronica, a Brazilian company, got the
Terri Welles, a former Playboy Playmate of the rights to the trademark “iPhone” in Brazil in
Year, created a website in 1997 to share her 2008, just as Apple launched their first
photos, promote services, and sell additional iPhone. Later, Apple sued IGB to use the name
content. She used trademarked terms like "Playmate in Brazil. The court allowed both companies to
of the Year" to describe herself. The Ninth use the name "iPhone" in Brazil because Apple’s
Circuit Court ruled that her use of these product had become well-known due to its
trademarks was permissible under the nominative quality, and it would have been unfair to
fair use defense. This allowed Welles to avoid a restrict Apple from using it.
preliminary injunction that would have stopped her
from using these terms on her site.
 Cybersquatting
Definition:
Cybersquatting occurs when individuals register domain names with the hope of selling
them to trademark owners at a high price.

Early Web Issues:

When websites first started, there was no validation process for domain name
requests. Domains were given out on a first-come, first-served basis.
Many cybersquatters registered famous company trademarks or names with no affiliation
to these companies.
 e ve n t i ve M ea s ur e s by
P r s
Organiz a t io n
Name R eg is t r at i o n: va ri at io ns ( e. g.,
Domai n le do ma in n am es an d
te n reg i st e r mu lt ip a web
Organizati on s o f pla n t o es ta bl is h
fo ) as so on a s th ey
V XY Z . or g , UV X YZ . in
[Link], U
. mp an ie s ta rgeting
presence is a ls o com mo n fo r co
mu l ti p le l an gu age s
n
Registering names i
- s pe a k in g c us t om e rs.
non-English

sideratio n: ions early than to

Cost Con register these variat
er for co mpa ni es to
It is much cheap
qu att ers lat er on .
fight cybers
 ICANN’s Role and Domain
Expansion
ICANN:
The Internet Corporation for Assigned
Names and Numbers (ICANN) manages the
domain name system.

ICANN expanded top-level domains (TLDs) Protection for Trademark Owners:

starting in 2000, adding domains like Trademark owners are given time to
.biz, .info, .mobi, and more. By 2016, assert their rights before new TLDs
there were 882 TLDs. are open to the public, allowing them
to secure relevant domain names
early.
 i ng Co n s u m e r
t t
2 Antic yb e rs q ua
Legal Protection A c t ( A CPA ) :

Protections and d i n 1 9 9 9, t h i s a c t
Enac t e r s
e
Famous Case allows U . S. t r a d e ma
g
r
n
k o w n

g e f o r e i
to challen e k c i v i l
t t e rs a n d s e
cybersqu a
t o $ 1 0 0 , 0 0 0 .
dam ag e s u p
1 e - 3
D i s pu t
n- N a m e Famous Example:
D om a i R P ) :
rm UD
Unifo n P o l i cy (
ol uti o
Res r f as t In 1994, a reporter registered
o w s fo
R P a l l v e [Link]. When McDonald’s
N ’s U D x p e ns i
IC AN ly i n e r e
at i v e es w h e later wanted the domain, they
r e l s pu t
and on o f d i
re d or retrieved it in exchange for a
r a t i gi st e
arbit m es a re r e
$3,500 charitable donation.
a in n a .
dom a d f a i t h
d i n b
u se
Th a n k you