53-751-02 E-Commerce

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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
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