1. Part 2 http://www.google.com.my/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&cad=rja&ved=0CEoQFjAD&url=http%3A%2F%2Fhvydvrn.wikispaces.com%2Ffile%2Fview%2F5.%2BLegal%2Band %2BEthical%2BIssues%2Bin%2BICT-part%2B2.ppt&ei=qNAlUZCuGsWtrAfCgYHIDA&usg=AFQjCNFYnbQIxrBQKcPuf7cU6LDOIBwLeA&sig2=C4bP14Qk2RXZK- WY1fZKlA&bvm=bv.42661473,d.bmk

2.  Table of Contents ◦ Part 1  What Are Ethics?  Solving Ethical Dilemmas  Corporate Social Responsibility  How Do Ethics Apply to ICT? ◦ Part 2  Legal and Ethical Issues in ICT  Access to Information  Ownership of Information  Company Resources and Company Time  Unauthorized Use of Computers and Information  Fraud  Protecting Yourself from Cyberscams

3. If I do the right thing, then should my actions be seen as legal? And I’m not going to get into trouble? If I do the wrong thing, am I breaking the law? Why is it that the relationship between something that is legal and something that is ethical not necessarily that defined? Why don’t clear differences between what is legal and what is ethical exist?

4.  The difference between legal and ethical: Legal and ethical actions do not necessarily go hand in hand.

5.  The law is constantly evolving to address issues in ICT.  Some legal and ethical issue include: ◦ Access to Information ◦ Ownership of Information ◦ Company Resources and Company Time ◦ Unauthorized Use of Computers and Information ◦ Fraud

6.  A serious ethical issue raised by ICT concerns the degree to which all Canadians have equal access to information. ◦ In an information-literate society, citizens must have the ability to read and write.  According to Statistics Canada, there still is a digital divide - a gap in the rate of Internet use among certain groups of people.

7.  Citizens should have access to computer hardware and software. ◦ Hard-copy resources are widely and cheaply available in places such as the libraries. ◦ However, information is increasingly converted to digital-only formats and requires computers to access it. ◦ These days, the cost for a computer has dropped significantly and as a result technology is accessible to more individuals and organizations.  However, there are still people in our society who cannot afford to purchase ICT.

8.  Factors that influence access to technology: 1. Income :  Internet users by income (2005–2006)  Wealthier Canadians have more access to Internet 2. Gender:  Men tend to use the Internet more than women 3. Education:  Internet users by education (2005–2006)  More-educated Canadians have better access to ICT 4. Age and the presence of children:  People with teens in the home tend to have more access.

9.  Other factors that influence access to technology: 5. Access to digital information (information that people have to pay to use.)  Even with access to ICT, this is another cost that is often unmanageable.  Example: access to medical information from online medical articles 6. Lack of training to use hardware and software wisely and safely

10.  Information should be thought of as material goods ◦ You would not want someone to borrow your stuff without asking, so why would you borrow information without asking? ◦ You need to give people credit for their work.  Ownership of information raises many legal and ethical issues.

11.  While giving credit for written work and ideas is one aspect of ownership of work, there are many more forms of intellectual property. ◦ Definition: This term describes an idea, a concept, or any other intellectual work that has commercial value, meaning that it can generate income or profit for its owner.

12.  Examples of intellectual property: ◦ written work (books, poems, essays, articles, etc. ) ◦ creative work (e.g., songs, recordings, video, cartoons, drawings, photographs, choreography) ◦ code created by a computer programmer (e.g., HTML code used for a website, code used to make a video game) ◦ company logos ◦ unique ways of doing or making things, such as a recipe, a process for manufacturing, a trade secret (e.g., a secret recipe for a fast food, etc.) ◦ a design for a product (e.g., iPod) Use of these materials has ethical and legal aspects. From an ethical perspective, fair dealing allows us to think through consequences of use. As well, most would say that plagiarism is also wrong.

13.  So what laws do we have to protect intellectual property?  The Canadian Intellectual Property Office allows people and organizations to protect their intellectual property formally by filing it officially for trademarks, and patents, or using the Copyright Act.

15.  So why doesn't everyone do it? ◦ It’s a time-consuming process ◦ Registration can be very expensive

16.  So what does a copyright, patent, or trademark do for the owner? ◦ When a person (or organization) uses protected information without the owner’s permission, he or she is breaking the law.

17. ◦ The penalties vary depending on the offence, but there are some exceptions where just citing the work is legal-referring to fair dealing  Fair Dealing is a set of principles or guidelines that are used to interpret the law on copyright (not the law).  Fair Dealing is the use or reproduction of a work for private study, research criticism, review, or news reporting without permission from the copyright holder.  They help you determine when it is OK to use other people’s work. Basically if the work is for:  Educational purposes  For Factual reasons  Use only a small portion of the original work.

19.  The copyright law protects authors, of a paper, book, song, or other piece of original work, from having their work stolen. ◦ When a individual creates an original work, legislation gives the creator of that work the copyright that is the exclusive right to reproduce, publish, or perform the work.  You don’t need to register for it, it is automatic.

20.  Law for copyright = The Copyright Act ◦ This law governs copyright infringement. ◦ It states that no one can reproduce or use the work created by another person without permission from the holder of the copyright. ◦ Duration: exists for the life of the creator plus 50 years after the end of the calendar year of the creator’s death  However there are some expectations, such as Crown works (government publications), works by unknown authors, etc. (page 329 of handout)  Once the copyright expires, the work is said to be a public domain and may be copied freely without permission.

21.  The Copyright Act allows for civil and criminal charges to be laid against a person who infringes copyright. Civil charges mean the copyright owner, or someone on behalf of owners, can sue the culprit.  If found guilty, the person infringing copyright will be fined.  Criminal charges can also be laid against the person by the Crown, and if convicted, the person who infringed copyright can be fined or imprisoned, or both.

22.  Example: ◦ Read the article “Is It Sharing or Stealing?”  Divide into two groups in the class. Brainstorm arguments on both sides of the Napster issue—to share or not to share, to pay for copyrighted material or not to pay. Create a list, and share your arguments with the other group.  Based on what you learned about Ownership of Information, what Canadian laws or statutes govern a case like the Napster case?

23.  Article “Is It Sharing or Stealing?”  Issue: ◦ to share-  Easy access  free ◦ or not to share-  Illegal to share since artists don’t get money ◦ to pay for copyrighted material or not to pay-  Most students don’t want to pay for music

24.  Trademarks and patents provide protection of non- written work, similar to copyright.  Trademarks protect intellectual property in the form of words, phrases, or images. ◦ Unlike copyrights, which are automatic, trademarks must be registered with government and are costly to acquire. ◦ Example : Nike

25.  Trademarks are governed by Section 409(1) of the Canadian Criminal Code. Under that section, it is a criminal offence for a person “to have in his possession, or to dispose of, a die, block, machine or other instruments designed or intended to be used in forging a trademark.”  Like copyright infringement, trademark infringement can be handled in civil court, where a trademark holder sues the person infringing.

26.  Example dealing with ICT: ◦ Trademark cases: between Pro-C, a small Waterloo, Ontario, software development firm and a large retailer, Computer City. ◦ Pro-C owned the trademark WINGEN. It was registered in both Canada and the United States for software only. ◦ Computer City launched a line of its own PCs called WINGEN, sold only in the United States. ◦ Pro-C sued Computer City. ◦ As it turned out, Pro-C’s website wound up getting Computer City’s online traffic. So many people visited the site and sent inquiries to Pro-C that its website crashed, so the company could not serve its customers. ◦ Pro-C first won the case, but Computer City appealed. Computer City won the appeal because its product was sold in the United States (and, therefore, did not compete with the Canadian WINGEN products from Pro-C), and because Pro-C did not actually lose business from its website because of the problems.

27.  Talking Trademarks  http://www.cbc.ca/marketplace/pre- 2007/files/money/words/index.html# http://www.cbc.ca/marketplace/pre- 2007/files/money/words/index.html#  The CBC Marketplace segment examines how brand names have entered our language as common usage and the effect that this has on companies.  After viewing the clip, make a list with a partner of the top 10 brands you use. ◦ For each, discuss ways in which you might inadvertently advertise the brand name.

28.  Parents, similar to trademarks, can be registered to protect intellectual property in the form of processes, articles and inventions ◦ Must register a patent and therefore can be a costly and lengthy process

29.  In Canada, patents are governed by the Patent Act.  Like trademarks, they can also be dealt with criminally or civilly.  Example; ◦ Patent case in Canadian and U.S. law dealing with ICT. ◦ In 2004, the Supreme Court of Canada ruled in favour of Monsanto, an agricultural biotech company that creates genetically modified seeds. The ruling was that a Canadian farmer had violated Monsanto’s patent by growing canola seeds developed by Monsanto on his land without permission. Ownership of Information-Patents

30.  Example: ◦ In 2006, a Waterloo, Ontario, company, Research in Motion (RIM), which created the BlackBerry PDA, settled a patent- infringement case with a company called NTP. ◦ RIM had been using technology for BlackBerries that NTP claims to hold a patent on. ◦ Through the U.S. court system, NTP tried to shut down RIM’s service to consumers. ◦ The case was eventually settled out of court, with RIM paying $612.5 million to NTP. ◦ Just when that case was settled, RIM was accused of a similar patent infringement by mobile email provider, Visto.  In 2009, RIM ended the three-year patent dispute with Visto Corp. by agreeing to pay $267.5 million to settle, adding to a costly series of intellectual-property purchases.

31.  License is a contract through which the owner of a piece of intellectual property permits another individual or organization to make, use, or sell that piece of intellectual property in exchange for some form of compensation. ◦ The license allows the owner to maintain his/her ownership of the intellectual property

32.  There are three forms of licensing:  1. Content licensing ◦ Refers to the ownership and sharing of any type of information in digital form through a contract  Includes: databases, articles, Web content, videos, clipart, font, stock reports and music  Example: Napster: case regarding ownership and sharing of content  2. Technology licensing ◦ Refers to permission to use processes or actual software applications  Example: individuals and corporations purchase Microsoft Office, therefore, the license to use it.  3. Advertising and cross-branding  Refers to agreements among businesses (or individuals) to use one another’s names and logos to increase business  Example: “Starbucks, Hershey to create new high-end chocolate products” http://www.bizjournals.com/seattle/stories/2007/07/16/daily26.html?b=11 84558400%5e1493520&hbx=e_abd http://www.bizjournals.com/seattle/stories/2007/07/16/daily26.html?b=11 84558400%5e1493520&hbx=e_abd  Cross-branding. Good enough for Starbucks and Hershey. How ’bout you?  http://www.rescuemarketing.com/blog/2007/07/23/cross-branding-good-enough- for-starbucks-and-hershey-how-bout-you/ http://www.rescuemarketing.com/blog/2007/07/23/cross-branding-good-enough- for-starbucks-and-hershey-how-bout-you/  Problem: when intellectual property is used without a license (Website displayed a company’s logo without that company’s permission) or logos are not properly displayed as per a license agreement

33.  Piracy is the illegal reproduction and distribution of materials such as software applications, whether for business or personal use.  Piracy is a form of copyright infringement, and it can take several forms: ◦ End-user piracy  users copy software without buying it. ◦ Pre-installed software  takes one copy of software and installs it illegally on more than one computer ◦ Internet piracy  unauthorized copies are downloaded over the Internet ◦ Counterfeiting  illegal copies of software are made and distributed in packaging that reproduces the manufacturer’s packaging

34.  A 2006 survey found that, in 2005, 35 percent of the packaged software installed on computers worldwide was illegal, amounting to over $34 billion in losses due to piracy.

35.  Canadians have a double standard for software piracy. This graph shows that half of Canadians believe that pirating software is OK for personal use but not for companies.

36.  Legal and ethical issues: ◦ theft from employers by employees.  Examples of theft:  Employees who bring home company stationery or use equipment such as photocopiers for personal use are stealing.  While at work, employees are paid to carry out the duties of the job.  Employers often say that personal business should be left for personal time.

37.  Examples (continued) ◦ Using the Internet at work for personal reasons  Since the employer pays for the Internet service, the computer the employee is using, and the employee’s time, many believe that the Internet should be used only for work related purposes.  A survey of Internet use while at work shows:  Canadian workers spend nearly 800 million hours a year surfing the Web for personal reasons not related to their jobs at all!  Similarly, a U.S. survey found that for every eight hours at work (not including lunches and breaks), employees spend about two hours surfing the Web for non-work purposes, with an estimated cost of $759 billion to the U.S. economy.

38. ◦ Many of the Canadian workers surveyed stated that their companies had no policy governing use of the Internet at work. ◦ Companies need to act (with regards to the use of company equipment for faxing, e-mailing, and accessing the Internet) or suffer losses in productivity

39.  Its unethical to surf the Internet for personal use at work, ◦ BUT a recent ruling suggests that it just might be legal  In 2006, one New York City employee who was fired for surfing the Internet at work fought back—and won!  A Department of Education employee was fired for using the Internet at work. However, the judge ruled in his favour because employers should apply the same standard to personal Internet use as they do to other personal activities, such as taking personal calls or reading the paper, as long as a worker still does his or her job.  Do you think as more cases like this go to court, this fuzzy issue, linking what is ethical and legal, will be resolved?

40.  Read the article “Which Company Am I?” ◦ In your group answer question #1 and 2

41.  Intellectual property is one form of information that is subject to Canadian law.  However, it is also illegal to use various other forms of information and ICT without permission.  The Criminal Code of Canada’s Section 342.1 makes it a crime for people to use any computer service (processing, storage, or retrieval of data) fraudulently, intercept any function of a computer system, and even use a computer with intent to commit a crime. ◦ Examples: hacking, stealing your friend’s password to use her or his computer at work without her or his knowledge, spamming an organization’s server so that it crashes, or using a computer to plan a crime.

42.  Example: ◦ A high-profile case in 2001 was the story of “Mafiaboy,” the 17-year-old Canadian teenager who launched a denial-of-service attack by bombarding companies with thousands of simultaneous messages, which prevented users from accessing the companies’ websites. ◦ The attack paralyzed many major Internet sites (including Yahoo!, eBay, and Amazon) for one week in February 2000. Mafiaboy was caught and charged under the Criminal Code. ◦ He was sentenced to eight months in a youth detention centre and a year of probation once released, and he was ordered to pay $250 to charity. ◦ Mafiaboy on The Hour with Stromboulopoulos: http://www.youtube.com/watch?v=M172NlX3H1Q&feat ure=relmfu http://www.youtube.com/watch?v=M172NlX3H1Q&feat ure=relmfu ◦ CBC Report About Mafiaboy Book: ◦ http://www.youtube.com/watch?NR=1&v=mWmcFsoV7I Q http://www.youtube.com/watch?NR=1&v=mWmcFsoV7I Q ◦ Identity Theft with Mafiaboy: ◦ http://www.youtube.com/watch?v=BBOl_tM15Cg http://www.youtube.com/watch?v=BBOl_tM15Cg

43.  Section 430(1.1) of the Criminal Code talks about “mischief to data.” ◦ This section makes it a criminal offence to destroy or alter data that rightfully belongs to someone else or to make data unavailable to its owner. ◦ For example, suppose a student at your school is laid off from her part-time job at a local retail shop. Because she is angry at the situation, she decides to delete all the financial data from the hard drive at the shop’s computer so that the owner no longer has accounting records. ◦ This would be an offence under the “mischief to data” clause.

44.  The Criminal Code addresses “theft of telecommunications” in Section 326. ◦ This section makes it a crime to use any telecommunication service (e.g., wireless, radio, visual, or other transmission) fraudulently. Under this section, you cannot steal wireless Internet from a source such as an ISP or organization that is emitting a wireless connection without the organization’s permission.

45.  Cyber Terror ◦ Terrorists are becoming expert Internet hackers, using the Web to get what they want. North American governments are scrambling to develop ways to stop them. ◦ After viewing the clip, discuss the threats of hacking. What should individuals, organizations, and governments know about this topic? ◦ Cyber Terror Still Top Threat?  http://video.cnbc.com/gallery/?video=3000043305 http://video.cnbc.com/gallery/?video=3000043305 ◦ Cyber Attack:  http://www.youtube.com/watch?v=xgNlx8UUJ0o&feat ure=related http://www.youtube.com/watch?v=xgNlx8UUJ0o&feat ure=related

46.  Fraud is a crime in which individuals deceive others or misrepresent themselves to gain something ◦ Example: false businesses, identity theft, selling a product or service as something it is not.  Forms of ICT fraud: ◦ phishing, pharming, online auction scams, and other forms.  ICT opens up the floodgates for all sorts of fraudulent activities, because: 1.it is quite easy to mask one’s identity (or worse yet, to take someone else’s identity); and 2.online crime is “borderless,” Internet fraud has grown steadily over the past decade.  Figure 11.6 on page 331 in handout

47.  The RCMP tracks the number of Canadian victims of various types of online fraud.  This chart shows the results of only those who actually reported being victimized in 2004.

48.  Most people think: ◦ Knowingly committing fraud is unethical  Example: stealing another person’s identity or credit cards. ◦ It is illegal to commit fraud.  Most online fraud is dealt with under two pieces of Canadian legislation: ◦ The Competition Act makes it a crime to have “false and misleading” advertising. This Act allows the Crown to charge an individual or business that is misleading consumers. ◦ Canada’s Criminal Code supplements the Competition Act by allowing the Crown to charge ISPs with a crime. By allowing criminal web services, the ISP can be charged with “aiding and abetting” a crime.

49.  In addition the Government of Canada enforces a law called the Personal Information Protection and Electronic Documents Act which aims to ensure that organizations in Canada use information about individuals responsibly. ◦ This Act helps to protect the use and misuse of you personal information that many organizations have (such as governments, credit card companies, etc.) from problems such as telemarketers and identity theft.

50. Examples of scams targeting businesses and institutions  Most aggressive scams against businesses (identified by the Council of Better Business Bureaus) ◦ Bogus Billing for Yellow Pages advertising ◦ Fake Directories ◦ Questionable Advertising Specialty Product Promotions Fraudulent Telemarketing Offers for Office Supplies Advance Fee Loan Brokers Phony Promotion/Prize Offers Fundraising Appeals from Fake Charities and Non-profit Organizations

51.  Example: ◦ In Canada, one of the most important cases of online fraud was against Alan and Elliot Benlolo. ◦ In 2000, they sent out letters to businesses that looked like bills from Bell Canada or the Yellow Pages. ◦ These letters were actually for a separate online directory (similar to the Yellow Pages) owned by the Benlolos. ◦ Their scam resulted in sales of over $1 million, and generated 4400 complaints to the Competition Bureau. ◦ Because of the complaints, law enforcement was able to catch the Benlolos. ◦ They were found guilty on 10 counts under the Competition Act, and were sentenced to 34 months in prison and fined $400 000.  Yellow Pages advertisers are being targeted by a... ◦ http://www.youtube.com/watch?v=v8rk9nIL1BU http://www.youtube.com/watch?v=v8rk9nIL1BU  Yellow Pages Scam Alert ◦ http://www.youtube.com/watch?v=0bHSx6-Cl_g http://www.youtube.com/watch?v=0bHSx6-Cl_g  This case represented an important milestone, because three principles were used to sentence these convicted criminals: ◦ Fines should equal the profits that the criminals made. ◦ Jail time should be required. ◦ Criminals can face both a fine and a jail term.  These principles be applied to all online fraud cases from now on.

52.  One of the problems in Internet fraud is catching the criminals. ◦ They can be operating from any part of the world, and their identities might not be clear. ◦ However, Canadian law-enforcement agencies work hard to catch these criminals based on complaints they receive from consumers and targets.

53. Legal and Ethical Issues in ICT Questions  Compare copyright, patents, and trademarks. How are they similar? How are they different?  If students at your school were to create a video yearbook, under what law (if any) would it be protected? Why?  Discuss the legal and ethical aspects of taking HTML code from a website you like on the Internet and using it for your own personal website.  What is piracy? Define it, and give an example.  What have individuals and companies done to ensure that people can download music from the Internet legally?  Is the use of the Internet at work the same as stealing? Why or why not?  What is meant by unauthorized use of computers and information? What law governs this in Canada?  Give three examples of types of fraud, and which Canadian law(s) they break.  Are ISPs legally responsible when a criminal uses the ISP’s services to commit fraud? Why or why not?  If you are targeted for an online scam, what should you do?  Having learned about the legalities of online crime, do you feel that you are sufficiently protected by the government and law-enforcement agencies? Why or why not?