IPR and Cyberspace Kishore Kanjilal Aviation IT and IPR Consultant kanjilalk@gmail.com © Copyright 2013 Kishore Kanjilal 1 What is IPR A set of property rights which protect creations of the mind • IP is an intangible asset that can be registered or unregistered • Patents, Copyrights, Trade-secrets and Trademarks provide protection © Copyright 2013 Kishore Kanjilal 2 Information Technology • Technology used for processing storing and dissemination of information – voice, picture, text , video & numerical • Term coined by Leavitt & Whisler in article in Harvard Business Review in 1958 • Micro electronics based computing and telecommunications • Encompasses technologies related to hardware, software, networks and storage management • IT is the enabler for Information systems. © Copyright 2013 Kishore Kanjilal 3 Cyberspace How to Protect What to protect • Web content • Text • Graphics • Audio • Video • Web sites • Ecommerce Sites • Business methods • Search engines • Domain names • ebooks C Y B E R S P A C E •Patents •Copyright •Trademarks •Trade-secrets •Licensing Conditions of usage • Free software • Open source • Creative Commons © Copyright 2013 Kishore Kanjilal 4 Copyright Film Art/Music Any original expression fixed in a medium Dramatic Literary Any content on Web sites can be protected by Copyright Copyright © © Copyright 2013 Kishore Kanjilal Use Copyright notice to inform users 5 Rights of Holder of Copyright • Copyright holders have exclusive rights: – To make and distribute copies – To produce derivative works, such as translations or movies based on books – To perform the work in public (e.g. music, plays) – To display the work in public (e.g. artwork, movies, computer games, video on a Web site) – License the copyright work © Copyright 2013 Kishore Kanjilal 6 Challenges to Copyright Protection • Digital technology and the internet has made copyright infringement easier and cheaper • New compression technologies have made copying large files (e.g. graphics, video and audio files) feasible • New tools allow us to modify graphics, video and audio files to make derivative works • Scanners allow us to change the media of a copyrighted work, converting printed text, photos, and artwork to electronic form © Copyright 2013 Kishore Kanjilal 7 Digital Rights Management • Without protection and management of digital rights • Digital content can be easily copied, altered, and distributed to a large number of recipients, which could cause revenue loss • To protect commercial digital intellectual property and avoid digital piracy – we need a system that prevents unauthorized access to digital content and manages content usage right • A DRM system should offer a persistent content protection against unauthorized access to the digital content , – limiting access to only those with the proper authorization © Copyright 2013 Kishore Kanjilal 8 DRM Technologies • Technological protection Measures (TPMs) – Measures by which Copyright owners restrict access in digital environment – Encryption – Digital Certificates – Digital Signatures – Digital license • Rights Management Information (RMI) – information embedded in a digital work ("metadata") that identifies the owner or author of a work and defines the terms of permitted access and use of that material – Digital Watermarking © Copyright 2013 Kishore Kanjilal 9 DMCA • It criminalizes production and dissemination of technology, devices, or services intended to circumvent measures of DRM that control access to copyrighted works. • It also criminalizes the act of circumventing an access control, whether or not there is actual infringement of copyright itself. • 2005 Congress made it a felony to record a movie in a movie theater © Copyright 2013 Kishore Kanjilal 10 Fair Use Doctrine • Four factors – Purpose and nature of use – commercial or non-profit purposes – Nature of the copyrighted work creative work, or factual work – Amount and significance of portion used – Effect of use on potential market or value of the copyright work (will it reduce sales of work?) • No single factor alone determines fair use • Not all factors given equal weight, varies by circumstance © Copyright 2013 Kishore Kanjilal 11 Fair Use - Cases • Sony v. Universal City Studios (1984) – Concerned the use of Betamax video recording – Supreme Court decided copying movies for later viewing was fair use Against Fair Use For fair use • People copied entire work • Movies are creative work and not factual • The copy was for private, noncommercial use •The movie studios could not demonstrate that they suffered any harm •The studios had received a substantial fee for broadcasting movies on TV, and the fee depends on having a large audience who view for free © Copyright 2013 Kishore Kanjilal 12 Fair Use - Cases • Napster Case – P2P users sharing MP3 music files – Court ruled sharing music via copied MP3 files violated copyright – Court ruled Napster liable because they had the right and ability to supervise the system, including copyright infringing activities Against Fair Use For fair use • Thousands of people copied entire work • Music is creative work • Napster hurt sales of music • Napster was acting as a Search Engine •Napster did not store MP3 files • The SONY decision for personal entertainment use is considered fair use – In another case Supreme Court ruled that intellectual property owners could sue the companies for encouraging copyright infringement (as a result most P2P services closed) © Copyright 2013 Kishore Kanjilal 13 Copying and Sharing New Business Models and Constructive Solutions: • Organizations set up to collect and distribute royalty fees (e.g. the Copyright Clearance Center), users don't have to search out individual copyright holders • Sites such as iTunes provide legal means for obtaining inexpensive music and generate revenue for the industry and artists • Revenue sharing allows content-sharing sites to allow the posting of content and share their ad revenues with content owners in compensation © Copyright 2013 Kishore Kanjilal 14 Additional Protection • Web content can be protected by copyright • Copyright is not sufficient to protect – Business processes for e-commerce – Underlying software technologies related to interfaces, accelerators, security, communication , mobile computing etc • Can be reverse engineered – Decompiling object code for interfaces – Redeveloping software once idea is known • Protecting IDEA is very important • Patent and copyright together provide better protection © Copyright 2013 Kishore Kanjilal 15 Copyright Patents EXPRESSION IDEA SYMBOLIC FUNCTIONAL LITERAL NON-LITERAL © Copyright 2013 Kishore Kanjilal 16 Business Method Patents • State Street Bank Decision (July 23, 1998) – Court of Appeals for the Federal Circuit – Allows patenting business method. – Examination no longer begins by determining if claim recites a mathematical algorithm. – 1998 USPTO revisions to computer related examination guidelines reflect this decision. © Copyright 2013 Kishore Kanjilal 17 State Street -Effects • The State Street court concluded that claims should not be categorized as methods of doing business. Instead, they should be examined as any other process claim • Business methods patentable • Business method patents that do not involve computerimplementations are likely to be deemed non-patentable subject matter (Bilski Vs Kappos) © Copyright 2013 Kishore Kanjilal 18 Business Method Patent Explosion • In 1998, approx. 1300 business method patent applications were filed. • Jumped to 7500 business method applications in 2000. • 2221 pure business method patents issued in 2006 • Business method patents for sale and purchase over Internet defined as a new class (Class 705 subclass 26) © Copyright 2013 Kishore Kanjilal 19 Types of Internet Patent (1) • Sales & Purchasing Techniques – Amazon.com One Click Patent (US 5960411) 1999 – Purchasing goods across different Web sites using a single “shopping cart. U.S.Patent 5,895,454 • On-line Auctions – Bid.com Internet reverse auction (US 5890138) – Priceline.com Online sales through reverse auction method US Patent Number 5797127 • Financial Transactions – U.S. patent number 6,014,643, entitled “Interactive Securities Trading System” relates to a method for trading securities between Individuals. © Copyright 2013 Kishore Kanjilal 20 Types of Internet Patent (2) • Advertising Techniques – “DoubleClick” owns a patent entitled “Method of Delivery, Targeting, and Measuring Advertising Over Networks.” (Patent number 5,948,061) – “System and Method for Assessing Effectiveness of Internet Marketing Campaign” (US Patent 6,006,197), describes a Web advertising system that measures the effectiveness of Internet advertisements by correlating transactions made after an advertisement to viewing of the advertisement. • Consumer Reward Systems – Netcentives, Inc.- method for awarding frequent-flier miles in exchange for making on-line purchases. U.S. patent 5,774,870 © Copyright 2013 Kishore Kanjilal 21 Types of Internet Patent (3) • Infrastructure – U.S. Patent number 5,442,637, entitled “Reducing the Complexities of the TCP for High-Speed Networking,” relates to a technique for decreasing the amount of processing required to process data packets in TCP, which is used to maintain connections between computers on the Internet. – US Patent 5,675,741, relates to a method of tracing a communication path between computers on the Internet. • Directories and Search Engines – U.S. Patent 6,009,459, entitled “Intelligent Automatic Searching for Resources in a Distributed Environment,” relates to a Web browser that chooses a search engine based on information entered by the user. © Copyright 2013 Kishore Kanjilal 22 Technical Effect • Case law has decreed that only software that has a “technical effect” can be patented • Software for a computer implemented application can be patented if it involves an inventive technical contribution to the prior art • The term is not in the legislation, and therefore there is no clear definition of technical effect • Merrill Lynch [1989] RPC 561: "There must... be some technical advance on the prior art in the form of a new result © Copyright 2013 Kishore Kanjilal 23 Why the Rush • • • • • • Often the primary asset of an IT company Delays competitors Provides potential revenue stream Marketing advantage Increases the value of the company Great bargaining chip in litigation © Copyright 2013 Kishore Kanjilal 24 Restrictions to IPR • Use of Free Software (FSF) • Use of Open Source Software (OSI) • Use of Creative Commons for graphics and video (CC) • IP of your software or content will be subject to license conditions of FSF, OSI, CC © Copyright 2013 Kishore Kanjilal 25 Copyleft Usage* Add Distribution Terms Copyright • Use • Modify • Redistribute • Legal instrument • Cannot be changed by any user • Copyright Program * Distribution terms make program copyleft © Copyright 2013 Kishore Kanjilal 26 Domain Names • Register domain names for multiple permissible TLDS − TLD is Top Level Domain like .com, .net etc • Renew domain name periodically by paying fees • Domain name usage restrictions − Cybersquatting − Infringing a famous trademark − Diluting a famous trademark © Copyright 2013 Kishore Kanjilal 27 Contentious Issues • A number of contentious issues for IP in Cyberspace – – – – – – – Jurisdiction – The death of distance Protecting Trade-secrets– hackers , impersonators, spy sw Illegal use of meta tags Linking and Deep Linking FSF, OSI and CC licensing – static and dynamic linking Search engines and links to copyright content Patent trolls © Copyright 2013 Kishore Kanjilal 28 © Copyright 2013 Kishore Kanjilal 29 © Copyright 2013 Kishore Kanjilal 30 © Copyright 2013 Kishore Kanjilal 31