1. © Copyrights and Businesses Willow Misty Parks Anderson School of Management University of New Mexico Albuquerque, NM © 2012 The Business Bookshelf, LLC & Willow Misty Parks

2. Significance of Intellectual Property Law Important to businesses! Violations of other’s rights can be costly, even if done by an employee of the company Understand the basis of ownership of Trademarks, Patents and Copyrights as business property and assets Understand resources and legal uses available under the law Understand when employers own employee’s works *These slides are for educational purposes only and should not be taken as legal advice. For legal questions, please seek legal counsel.

3. Why Is This Important? Pirating and illegal downloading of music and movies Borrowing images from the Internet Making copies for the classroom Business liability for customer and employee infringements

4. Intellectual Property Is Property Property is Property: Whether tangible or intangible Important to have respect for property rights Would not steal a tangible item from the store, yet many download music and movies with no remorse

5. Other Intellectual Property Laws Patents 1.Covers systems, processes, discoveries, etc. 2.Stronger protection 3.14 to 20 years 4.Must research history 5.New, non-obvious and useful 6.Requires registration 7.Patent attorneys (Patent Bar) 8.Generally Expensive Trademarks ™ 1. Protects words, slogans, phrases, logos, symbols, etc. that identify products in the marketplace 2. Unlimited time 3. Established through actual use or registration 4. “Likelihood of confusion” 5. Cyber squatting 6. Dilution 7. May be registered with State and/or Federal

6. Do You Own Any Copyright Rights? © Acquiring copyrights is easy! You can do it without even being aware of it. Does anyone have a cell phone? With pictures? You acquired copyright ownership in those! The Copyright Notice The symbol © The year of first publication The name of the copyright owner Not required, but highly recommended Where there is valid © notice, no innocent infringers Original & Fixed!

7. Element 1: Originality 1.Some minimal degree of creativity. 2.The requisite level of creativity is extremely low; even a slight amount will suffice. 3.A creative spark. 4.Owes its origin; not copied.

8. Examples that did NOT meet Originality Phone books: the white pages; alphabetical order is not enough! Maps—based on facts (unless the cities were imaginary or false) There is NO “sweat-of-the-brow” doctrine in Copyright

9. Element 2: Fixed Fixed: is sufficiently permanent or stable for it to be perceived or reproduced for more than a transitory duration. Some examples of works NOT fixed:  Choreographic works, not notated or recorded  Improvisational speeches, not recorded  Performances, not written or recorded  Broadcasts, if not being simultaneously recorded  Pictures, Writing or Poem in the sand  Skywriting  Jazz improvisations  Improvisational political skits

10. Independent Creation A legal doctrine in which two or more may own copyright in essentially the identical work. Because of the ease of getting copyright rights this may occur often. Unlike Patents, each cannot stop the others from using the other’s work. They must not have “copied” or known of the other work.

11. The Copyright Rights: What Do You Get? Reproduce the work in copies Prepare Derivatives Distribute copies to the public for sale, rental, lease or lending Perform publicly* Display publicly *“publicly” display or performance if it takes place at a place open to the public or at any place where a substantial number of persons outside of a normal circle of a family and/or social acquaintances are gathered.

12. How Long Does Copyright Protection Last? For works created after January 1, 1978: A.One author—life of the author plus 70 years B.Joint works—life of last surviving author plus 70 years C.Anonymous & works made for hire: – 95 years from publication, or – 120 years from creation, whichever is first Caveat: Works created earlier or in foreign countries are outside the scope of this presentation.

13. Works Made for Hire In Scope of Employment A work prepared by an employee within the scope of employment is owned by the employer. How to tell if the worker is an employee: -Payroll formalities* -Right to assign additional projects* -Employee benefits* -Tax treatment* -Control manner and means of creation* -Skill required* -Instrumentalities and tools -Location of work * Most important factors

14. Copyright Infringement Copyright is a bundle of exclusive rights. Section 106 of the copyright law provides the owner of copyright in a work the exclusive right:Section 106 To reproduce the work in copies; To prepare derivative works based upon the work;derivative works To distribute copies of the work to the public by sale or other transfer of ownership, or by rental, lease, or lending; To perform the work publicly;perform To display the copyrighted work publiclydisplay In the case of sound recordings, to perform the work publicly by means of a digital audio transmission.

15. Copyright Infringement Infringement means violation of any of the exclusive copyright rights Possible remedies for © infringement: $ Per violation of one work: $750-$30,000 as considered just by the court. $ Innocent infringers: as low as $200 (not available if a © notice on work). $ Statutory damages: $ At the court’s discretion for willful violations up to $150,000 per violation $ Actual damages and additional profits $ Impound & disposition of infringing articles. $ Potential criminal offences where infringement is willful.

16. Cease & Desist Notices Have to Police and Enforce Copyright Rights Yourself Purposes: - lets infringer know that you believe they are infringing - establishes date of discovery - tells infringer to stop - gives a chance to explain, respond or negotiate Usually includes: - Your name and contact - Name of work, publication, copyright registration number - Nature of activity that is in violation - Demand the infringer cease and desist future activity and pay you for past damages - Request for response by stated date

17. The Right of First Sale Right of “First Sale” the owner of a particular copy of a work “exhausts” her economic rights therein – and thus loses control of the copy – by selling it provides that the owner of the material object or copy can sell, give away and sometimes lend it to the public without the copyright owner’s permission (but cannot make additional copies) The purchase of the art object itself is separate from the copyrights The mere ownership of a book, manuscript, painting, etc. does not give the possessor the copyright The purchaser of a copy or object of art has the right: - To sell - To display (not publicly) - To give away - To lease, rent or lend to the public (except NOT computer programs and sound recordings)

18. Exception to Right of First Sale The right of first sale might not be applicable to products produced overseas Publisher filed a lawsuit against a Thai student who came to the U.S. and sole foreign-edition textbooks on eBay. Courts determined that right of first sale does not apply to this situation Student found to be guilty of copyright infringement in lower courts Issue being considered by Supreme Court Could have significant implications for goods resold on eBay and other global companies that sell used goods

19. Is It Fair Use or Infringement? First consider purpose: criticism, comment, news reporting, teaching, scholarship, or research and parody Four factors to be considered: 1.Purpose and character of the use including whether it is commercial nature or for nonprofit educational purpose 2.The nature of the copyrighted work (creative, fact, useful, compilation) 3.The amount and substantiality of the portion used in relation to the whole (a short quote or an entire article, the heart  or the work) 4.The effect of the use upon the potential market for or value of the copyrighted work Beware! No reliable general quantitative standards If you are relying on fair use to use someone else’s copyrighted work, be very, very careful. Ultimately, only a judge or jury has the final say on whether your use is “fair use” or not.

20. Erasing the Blanket Educational & Nonprofit Myth There is NO blanket educational or non-profit exception to the Copyright. Movies played in class: Performance or Display of a legal copy of a work by instructors or pupils in the course of face-to-face teaching activities or a nonprofit educational institution, in a classroom or similar place devoted to instructional use is not a copyright infringement. Textbooks: copies pose significant risks Course packets: have been heavily litigated Four Guidelines for Not-For-Profit Educational Institutions: 1. Brevity, 2. Spontaneity, 3. Cumulative Effect, and 4. A notice of copyright.

21. Theft of Music and Movies Illegally downloading music and movies is serious! Many do not consider the seriousness of the crime until they get caught – Pirate Bay founder arrested – Boston University student fined$675,000 for illegally downloading 30 songs and sharing them on the Internet

22. Parody & Fair Use Practically by definition, you will NOT be able to obtain the author’s permission for this use. Indeed, the owner of a work seldom wants to license someone else to ridicule that work. “Fair use” is the guarantee of breathing space within the confines of copyright. Parody: A literary or artistic work that imitates the characteristic style of an author or a work for comic effect or ridicule— burlesque, satire, criticism, raunchy twist and spoof. Parody’s humor, its comment, necessarily springs from recognizable allusion to its object through distorted imitation. Its art lies in the tension between a known original and its periodic twin.

23. Public Domain Sources “Public Domain” are works that for one reason or another are not covered by copyright and are ordinarily free for all to use. Works out of copyright: created before 1924 in the United States (e.g. Shakespeare’s Romeo and Juliet) Type of work not protected under copyright or patent/trademark Work dedicated to public domain by owner Improperly registered or not renewed works created before 1978

24. Lessons for Businesses Have clear employee contracts regarding IP ownership Protect business property rights: – Businesses register copyright and trademarks – Draft and send Cease and Desist Letters Use copyright free and public domain resources for development Don’t depend on fair use and get permissions when possible

25. Non-exclusive License Permission Permission is granted under a non-exclusive license to copy and distribute this work to the Daniel’s Foundation for purposes of education and classroom instruction. Permission is specifically denied for commercial use, creation of derivatives, or otherwise for financial gain without specific written permission from the author. No other entity or organization is given permission to copy, distribute, make derivatives, display or otherwise use. You are welcome to preprint any of my articles/presentation with the following conditions: 1. Include all Copyright Notices and Cautions 2. Articles/PowerPoint's must be used in their entirety. Excerpts are acceptable pending permission. 3. If you are using an article online, all the copyright notices must be included. 4. Email distribution of this article must be to an opt-in email list only. NO SPAM! Once you reprint or use an article/presentation, a courtesy copy of your publication or description of the use would be appreciated: Willow Misty Parks PO Box 25312 Albuquerque, NM 87125 willowmistyparks@gmail.com Willow Misty Parks, Owner of the Business Bookshelf, LLC