Lesson 3
Lesson 3
PROPERTY
Agenda
1. What is intellectual Property (IP)?
2. Copyright
3. Patents
4. Trade Secrets
5. Intellectual Property Issues
WHAT IS INTELLECTUAL PROPERTY?
• Intellectual property is a term used to describe works of the mind—
such as art, books, films, formulas, inventions, music, and processes—
that are distinct and owned or created by a single person or group.
• Copyrights, patents, trademarks, and trade secrets form a complex
body of law relating to the ownership of intellectual property, which
represents a large and valuable asset to most companies.
• If these assets are not protected, other companies can copy or steal
them, resulting in significant loss of revenue and competitive
advantage.
WHAT IS INTELLECTUAL PROPERTY?
A copyright is the exclusive right to:
• distribute, display, perform, or reproduce an original work in copies;
• to prepare derivative works based on the work;
• to and grant these exclusive rights to others.
Copyright
• 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.
• Copyright law has proven to be extremely flexible in covering new technologies,
including software, video games, multimedia works, and web pages.
• However, evaluating the originality of a work can be difficult and disagreements
over whether or not a work is original sometimes lead to litigation.
• Copyrights provide less protection for software than patents; software that
produces the same result in a slightly different way may not infringe a copyright
if no copying occurred.
Copyright
• The fair use doctrine established four factors for courts to consider
when deciding whether a particular use of copyrighted property is fair
and can be allowed without penalty:
1. the purpose and character of the use
2. the nature of the copyrighted work
3. the portion of the copyrighted work used, and
4. the effect of the use on the value of the copyrighted work.
• The use of copyright to protect computer software raises many
complicated issues of interpretation of what constitutes infringement.
Copyright
• The Digital Millennium Copyright Act (DMCA), implements two WIPO
treaties
• The DMCA also makes it illegal to circumvent a technical protection or
develop and provide tools that allow others to access a technologically
protected work.
• In addition, the DMCA limits the liability of Internet service providers for
copyright infringement by their subscribers or customers.
• Some view the DMCA as a boon to the growth of the Internet and its use as
a conduit for innovation and freedom of expression.
• Others believe that the DMCA has given excessive powers to copyright
holders.
Patents
• A patent is a grant of property right issued to an inventor that
permits its owner:
• to exclude the public from making, using, or selling a protected invention,
• it allows for legal action against violators.
• A patent prevents copying as well as independent creation (which is
allowable under copyright law).
Patents
For an invention to be eligible for a patent, it must fall into one of three
statutory classes of items that can be patented:
1. it must be useful
2. it must be novel, and
3. it must not be obvious to a person having ordinary skill in the same
field.
Types of Patents
• A utility patent is :
• “issued for the invention of a new and useful process, machine, manufacture,
• or composition of matter,
• or a new and useful improvement thereof.”
• A design patent, is:
• “issued for a new, original, and ornamental design embodied in
• or applied to an article of manufacture,”
• permits its owner to exclude others from making, using, or selling the design
in question.
Trade Secrets
• To qualify as a trade secret, information must have economic value
and must not be readily ascertainable.
• In addition, the trade secret’s owner must have taken steps to
maintain its secrecy.
• Trade secret laws do not prevent someone from using the same idea
if it was developed independently or from analyzing an end product
to figure out the trade secret behind it.
Trade Secrets
Trade secret law has three key advantages over the use of patents and
copyrights in protecting companies from losing control of their
intellectual property:
1. There are no time limitations on the protection of trade secrets,
unlike patents and copyrights;
2. There is no need to file any application or otherwise disclose a trade
secret to outsiders to gain protection; and
3. There is no risk that a trade secret might be found invalid in court.
Intellectual Property Issues: Plagiarism