TI0071

Etika dan Hukum

Teknologi Informasi
Chapter 6
Intellectual Property
Overview

 Memahami jenis kekayaan intelektual, dan mengapa

perusahaan peduli terhadap perlindungan kekayaan
intelektual
 Memahami masalah utama hak kekayaan intelektual dan
teknologi informasi
Objectives
 As you read this chapter, consider the following questions:
 What does the term intellectual property encompass, and why are
organizations so concerned about protecting intellectual property?
 What are the strengths and limitations of using copyrights, patents,
and trade secret laws to protect intellectual property?
 What is plagiarism, and what can be done to combat it?
 What is reverse engineering, and what issues are associated with
applying it to create a look-alike of a competitor’s software
program?
 What is open source code, and what is the fundamental premise
behind its use?
 What is the essential difference between competitive intelligence
and industrial espionage, and how is competitive intelligence
gathered?
 What is cybersquatting, and what strategy should be used to
protect an organization from it?
Contents

 What Is Intellectual Property?

 Key Intellectual Property Issues
What Is Intellectual Property?

• Term used to describe works of the mind

– Distinct and “owned” or created by a person or group
• Copyright law
– Protects authored works
• Patent law
– Protects inventions
• Trade secret law
– Helps safeguard information critical to an organization’s
success

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 Copyrights
• Established in the U.S. Constitution
– Article I, Section 8, Clause 8
• Grants creators of original works the exclusive right to:
– Distribute
– Display
– Perform
– Reproduce work
– Prepare derivative works based upon the work
• Author may grant exclusive right to others
• Copyright term
– Copyright law guarantees developers the rights to their works for a certain amount of time
• Sonny Bono Copyright Term Extension Act
– Created after 1/1/78, life of the author plus 70 years
– Created but not published or registered before 1/1/78, life of the author plus 70 years; no
expiration before 12/31/2004
– Created before 1978 still in original or renewable term of copyright, 95 years from the
date the copyright was originally secured
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Copyrights (cont’d.)

• Types of work that can be copyrighted : Architecture, Art,

Audiovisual works, Choreography, Drama, Graphics, Literature,
Motion pictures, Music, Pantomimes, Pictures, Sculptures,
Sound recordings, Other intellectual works (As described in
Title 17 of U.S. Code)
• Must fall within one of the preceding categories
• Must be original
– Evaluating originality can cause problems

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 Copyrights (cont’d.)
• Fair use doctrine
– Allows portions of copyrighted materials to be used without permission under certain
circumstances
– Maintains balance between protecting an author’s rights and enabling public access
to copyrighted works
– Factors to consider when evaluating the use of copyrighted material
• Fair use doctrine factors include:
– Purpose and character of the use
– Nature of the copyrighted work
– Portion of the copyrighted work used
– Effect of the use upon the value of the copyrighted work
– Key concept: an idea cannot be copyrighted, but the expression of an idea can be

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Copyrights (cont’d.)

 Copyright infringement
 Copy substantial and material part of another’s
copyrighted work
 Without permission
 Software copyright protection
 Raises many complicated issues of interpretation
 Copyright law should not be used to inhibit
interoperability between the products of rival vendors

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 Copyrights (cont’d.)
• The Prioritizing Resources and Organization for Intellectual Property (PRO-IP)
Act of 2008
– Increased enforcement and substantially increased penalties for infringement
• General Agreement on Tariffs and Trade (GATT)
– Trade agreement between 117 countries
– Created World Trade Organization (WTO) to enforce
– Despite GATT, copyright protection varies greatly from country to country
• The WTO and the WTO TRIPS Agreement (1994)
– Many nations recognize that intellectual property has become increasingly important
in world trade
– Established minimum levels of protection that each government must provide to the
intellectual property of members
– Covers copyright, patents, and trade secrets
• World Intellectual Property Organization (WIPO)
– Agency of the United Nations
– Advocates for the interests of intellectual property owners
– 10 for electronic media
WIPO Copyright Treaty provides additional copyright protections
Copyrights (cont’d.)

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Copyrights (cont’d.)
• Digital Millennium Copyright Act (DMCA)
– Civil and criminal penalties included
– Governs distribution of tools and software that can be used to circumvent
technological measures used to protect copyrighted works
– Provides safe harbors for ISPs whose customers/subscribers may be breaking
copyright laws
• ISP must comply with “notice and takedown procedures” that grant copyright holders
a process to halt access to alleged infringing content

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 Patents
• Grant of property right to inventors
• Issued by the U.S. Patent and Trademark Office (USPTO)
• Permits an owner to exclude the public from making, using, or selling the
protected invention
• Allows legal action against violators
• Prevents independent creation as well as copying
• Extends only to the United States and its territories and possessions
• Applicant must file with the USPTO
– USPTO searches prior art
– Takes an average of 35.3 months from filing an application until application is issued
as a patent or abandoned
• Prior art
– Existing body of knowledge
– Available to a person of ordinary skill in the art
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Patents (cont’d.)

• An invention must pass four tests

– Must be in one of the five statutory classes of items
– Must be useful
– Must be novel
– Must not be obvious to a person having ordinary skill in the
same field
• Items cannot be patented if they are:
– Abstract ideas
– Laws of nature
– Natural phenomena

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Patents (cont’d.)

• Patent infringement
– Making unauthorized use of another’s patent
– No specified limit to the monetary penalty
• Software patent
– Protects feature, function, or process embodied in
instructions executed on a computer
• 20,000 software-related patents per year have been
issued since the early 1980s
• Some experts think the number of software patents
being granted inhibits new software development

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Patents (cont’d.)

• Before obtaining a software patent, do a patent search

• Software Patent Institute is building a database of
information
• Software cross-licensing agreements
– Large software companies agree not to sue each other
over patent infringements
– Small businesses have no choice but to license patents if
they use them
• Average patent lawsuit costs $3 - $10 million

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Patents (cont’d.)

• Defensive publishing
– Alternative to filing for patents
– Company publishes a description of the innovation
– Establishes the idea’s legal existence as prior art
– Costs mere hundreds of dollars
– No lawyers
– Fast
• Patent troll firm
– Acquires patents with no intention of manufacturing
anything; instead, licensing the patents to others

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Patents (cont’d.)

 Standard is a definition or format

 Approved by recognized standards organization or
accepted as a de facto standard by the industry
 Enables hardware and software from different
manufacturers to work together
 Submarine patent
 Patented process/invention hidden within a standard
 Does not surface until standard is broadly adopted

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Patents (cont’d.)

 Patent farming involves:

 Influencing a standards organization to make use of a
patented item without revealing the existence of the
patent
 Demanding royalties from all parties that use the standard

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Trade Secrets

• Trade secret
– Business information
– Represents something of economic value
– Requires an effort or cost to develop
– Some degree of uniqueness or novelty
– Generally unknown to the public
– Kept confidential
• Information is only considered a trade secret if the
company takes steps to protect it

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 Trade Secrets (cont’d.)
• Trade secret law has a few key advantages over patents and copyrights
– No time limitations
– No need to file an application
– Patents can be ruled invalid by courts
– No filing or application fees
• Law doesn’t prevent someone from using the same idea if it is developed
independently
• Trade secret law varies greatly from country to country

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Trade Secret Laws

 Uniform Trade Secrets Act (UTSA)

 Established uniformity across the states in area of trade
secret law
 Computer hardware and software can qualify for trade
secret protection
 The Economic Espionage Act (EEA) of 1996
 Penalties of up to $10 million and 15 years in prison for
the theft of trade secrets

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Employees and Trade Secrets

• Employees are the greatest threat to trade secrets

• Unauthorized use of an employer’s customer list
– Customer list is not automatically considered a trade
secret
– Educate workers about the confidentiality of lists
• Nondisclosure clauses in employee’s contract
– Enforcement can be difficult
– Confidentiality issues are reviewed at the exit interview

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Employees and Trade Secrets
(cont’d.)
 Noncompete agreements
 Protect intellectual property from being used by
competitors when key employees leave
 Require employees not to work for competitors for a
period of time
 Wide range of treatment on noncompete agreements
among the various states

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Key Intellectual Property
Issues
 Issues that apply to intellectual property and
information technology
 Plagiarism
 Reverse engineering
 Open source code
 Competitive intelligence
 Trademark infringement
 Cybersquatting

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Plagiarism

• Stealing someone’s ideas or words and passing them off

as one’s own
• Many students:
– Do not understand what constitutes plagiarism
– Believe that all electronic content is in the public domain
• Plagiarism is also common outside academia
• Plagiarism detection systems
– Check submitted material against databases of electronic
content

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Plagiarism (cont’d.)

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Plagiarism (cont’d.)

• Steps to combat student plagiarism

– Help students understand what constitutes plagiarism and
why they need to cite sources
– Show students how to document Web pages
– Schedule major writing assignments in portions due over
the course of the term
– Tell students that instructors are aware of Internet paper
mills and plagiarism detection services
– Incorporate detection into an antiplagiarism program

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Reverse Engineering

• Process of taking something apart in order to:

– Understand it
– Build a copy of it
– Improve it
• Applied to computer:
– Hardware
– Software
• Convert a program code to a higher-level design
• Convert an application that ran on one vendor’s
database to run on another’s

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Reverse Engineering (cont’d.)

• Compiler
– Language translator
– Converts computer program statements expressed in a
source language to machine language
• Software manufacturer
– Provides software in machine language form
• Decompiler
– Reads machine language
– Produces source code

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Reverse Engineering (cont’d.)

• Courts have ruled in favor of reverse engineering:

– To enable interoperability
• Software license agreements forbid reverse engineering
• Ethics of using reverse engineering are debated
– Fair use if it provides useful function/interoperability
– Can uncover designs that someone else has developed at
great cost and taken care to protect

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Open Source Code

• Program source code made available for use or

modification:
– As users or other developers see fit
• Basic premise
– Many programmers can help software improve
– Can be adapted to meet new needs
– Bugs rapidly identified and fixed
– High reliability
• GNU General Public License (GPL) was a precursor to
the Open Source Initiative (OSI)

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Competitive Intelligence

• Gathering of legally obtainable information

– To help a company gain an advantage over rivals
• Often integrated into a company’s strategic plans and
decision making
• Not the same as industrial espionage, which uses illegal
means to obtain business information not available to
the general public
• Without proper management safeguards, it can cross
over to industrial espionage

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Competitive Intelligence
(cont’d.)

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Competitive Intelligence
(cont’d.)

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Trademark Infringement

• Trademark is logo, package design, phrase, sound, or

word that enables consumer to differentiate one
company’s product from another’s
• Trademark owner can prevent others from using the
same mark or a confusingly similar mark on a product’s
label
• Organizations frequently sue one another over the use
of a trademark in a Web site or domain name
• Nominative fair use is defense often employed by
defendant in trademark infringement case

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Cybersquatting

 Cybersquatters
 Register domain names for famous trademarks or company
names
 Hope the trademark’s owner will buy the domain name for
a large sum of money
 To curb cybersquatting, register all possible domain
names
 .org, .com, .info

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Cybersquatting (cont’d.)

• Internet Corporation for Assigned Names and Numbers

(ICANN)
– Several top-level domains (.com, .edu, edu., .gov, .int,
.mil, .net, .org, aero, .biz, .coop, .info, .museum, .name,
.pro, .asis, .cat, .mobi, .tel, and .travel)
– Current trademark holders are given time to assert their
rights in the new top-level domains before registrations
are opened to the general public
– Anticybersquatting Consumer Protection Act allows
trademark owners to challenge foreign cybersquatters

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Lesson Summary

 Memahami jenis kekayaan intelektual, dan mengapa

perusahaan peduli terhadap perlindungan kekayaan
intelektual
 Memahami masalah utama hak kekayaan intelektual dan
teknologi informasi
Unit Summary
 Intellectual property is protected by laws for:
– Copyrights
– Patents
– Trademarks
– Trade secrets
 Plagiarism is stealing and passing off the ideas and words of another as one’s own
 Reverse engineering
– Process of breaking something down in order to understand, build a copy of, or improve it
 Open source code
– Made available for use or modification as users or other developers see fit
 Competitive intelligence
– Uses legal means and public information
 Trademark infringement
– Use of other’s trademark in a Web site can lead to issues
 Cybersquatting
– Registration of a domain name by an unaffiliated party
Question & Answers