Copyrights HEC MONTRÉAL – MBA 53-751-03 IT and E-Commerce Links on Copyrights • Copyright basics • History of Copyright • Internet: Copyright and Intellectual Property Issues • U.S. Copyright Office • Copyright, Fair Use & Intellectual Property Rights Jacques Robert & Jean Talbot, HEC Montréal HEC MONTRÉAL – MBA 53-751-03 IT and E-Commerce Objectives of copyright laws • Provide to the creator an exclusive and transferable right (monopoly) to reproduce, distribute, create products a creative work. • Render illegal to copy a creative work without the consent of the author. • Allow authors to draw profits from their creative work. • Define limits : « fair use », « first sale doctrine ». Jacques Robert & Jean Talbot, HEC Montréal HEC MONTRÉAL – MBA 53-751-03 IT and E-Commerce Doctrine « First sale » • Basically this copyright doctrine says that owners of copies of copyrighted works can redistribute their copy without the copyright owner's permission. • This traditionally promotes public access to information. • Many believe this doctrine should be abolished for works transmitted digitally. Jacques Robert & Jean Talbot, HEC Montréal HEC MONTRÉAL – MBA 53-751-03 IT and E-Commerce Fair Use • • • #1: Purpose and character of use. The courts are most likely to find fair use where the use is for noncommercial purposes, such as a book review. #2: Nature of the copyrighted work. The courts are most likely to find fair use where the copied work is a factual work rather than a creative one. #3: Amount and substantiality of the portion used. The courts are most likely to find fair use where what is used is a tiny amount of the protected work. If what is used is small in amount but substantial in terms of importance - the heart of the copied work - a finding of fair use is unlikely. #4: Effect on the potential market for or value of the protected work. The courts are most likely to find fair use where the new work is not a substitute for the copyrighted work. Source: Intellectual Property Law Primer for Multimedia Developers Copyright 1994 by J. Dianne Brinson and Mark F. Radcliffe Jacques Robert & Jean Talbot, HEC Montréal HEC MONTRÉAL – MBA 53-751-03 IT and E-Commerce Fundamentalist Approach • Protection of private property. • Copying is stealing. • The state must protect private property et hence make copying illegal. Jacques Robert & Jean Talbot, HEC Montréal HEC MONTRÉAL – MBA 53-751-03 IT and E-Commerce Agenda Maximalist • Give copyright owners control over every use of copyright works in digital form. • Give copyright owners control over every transmission of works in digital form. • Eliminate fair-use rights whenever a use might be licensed. • Deprive the public of the « first sale » right. • Attach copyright management information to digital copies of a work. • Protect every digital copy of every work technologically. • Force online service providers to become copyright police. Jacques Robert & Jean Talbot, HEC Montréal HEC MONTRÉAL – MBA 53-751-03 IT and E-Commerce Economic Approach - incentive • On one hand, copyright laws provide incentive to the creation of creative work. • On the other, copyright laws create monopoly powers to the authors (and distributor). • A tradeoff exists. Jacques Robert & Jean Talbot, HEC Montréal HEC MONTRÉAL – MBA 53-751-03 IT and E-Commerce Role of distributors • Distribute /produce creative works • Protect copyrights and pay creators. • Play the role of « Gatekeepers » – Identify relevant and interesting creative works – Assure their distribution Jacques Robert & Jean Talbot, HEC Montréal HEC MONTRÉAL – MBA 53-751-03 IT and E-Commerce Digital Right Management • Developing electronic tools to track the use and distribution of Informational goods • Jeff Howe, "Licensed to bill", Wired.com, Sept 2001. • Problems – Developing micropayments – Annoying consumers – Breaking the protection Jacques Robert & Jean Talbot, HEC Montréal