1. Software Engineering II
Legal Aspects of Software Engineering

2. Legal Environment Software is developed in a complex legal and
economic framework.
Every software engineer needs to be aware of some parts of the framework,
but you need a lawyer for anything other than the most basic legal issues.

3. Legal Topics in Software
• Jurisdiction (international, federal, state laws)
• Intellectual property (copyright, patent, trademark, trade secrets)
• Contracts and licenses
• Privacy
• Free speech and its limitations (government secrets, obscenity)
• Complex areas (ISPs, e-commerce)
• Business law (personnel, your next job, etc.)

4. Statues and Precedents
The United States follows Common Law. The law is a combination of:
(a) Statutes (bills) passed by Congress and the 50 states.
(b) Precedents (judgments) made by courts.
See: The Legal Information Institute for the US Code (the actual wording of the law)
but ...
Do not assume that the interpretation by the courts is what you would expect from reading the statutes!

5. Legal Change
Changes in laws usually follow changes in technical world.
Lawyers and politicians typically have poor technical backgrounds.
The interpretation of many laws is unclear as they have often never been tested in court, because of the cost of litigation.
Law usually develops incrementally. As a result, strange analogies are often made between new technological paradigms and old world systems.

6. Jurisdiction: Boundaries
“The Internet has no boundaries”
If you break a law in Finland, but you were on the Internet in the United States, what happens to you?
What if you are in California and you break a law in Minnesota?
Where do you pay taxes?
United States has Federal law, which covers the entire USA,
and 50 states, each with its own laws.
Relationship between US law and International Law is
complex and changing.

7. USA Jurisdiction: Federal Court System
• United States Constitution
• International treaties
• Federal and state statues
• Precedents
Federal Court System
13 Circuits, each with a court of appeals (appellate court)
Supreme Court ultimate appellate court

8. Intellectual Property Law: Copyright
Copyright is Federal law, which applies to literary works.
Originally applied to textual materials, but gradually extended to cover text, music, photographs, designs, software, ...
Copyright applies to the expression of ideas (e.g., the words used), not to the ideas themselves, nor to physical items.
Software
Copyright applies to the program instructions, but not to
the concepts behind the instructions, nor to the files on disk
or on paper where the programs instructions are stored.

9. Ownership of Copyright (USA)
At creation
• Copyright is automatically owned by the creator.
• Except works for hire, where the employer owns the copyright.
Transfer of copyright
• In the USA, copyright is property that can be sold or licensed.
The agreement to sell is written as a contract.
"A verbal contract isn't worth the paper it's written
on." (Attributed to Yogi Berra.)

10. Ownership of Copyright
International differences
Moral rights
In some countries, e.g., Canada, France, the creator of a work retains moral rights, which cannot be sold, for instance the right of attribution.
Registration
In the USA, copyright is established automatically when something is created. In many countries, it is necessary for the creator to register it to claim copyright.

11. Copyright In the USA, copyright gives the owner exclusive right to:
• reproduce
• distribute
• perform
• display
• license others to reproduce, distribute, perform, or display
Special exceptions
• First sale. The owner of an object, e.g., a book, can sell the object without permission of the copyright owner.
• Fair use. Limited use is permitted without permission of the copyright owner, e.g., in a review or short quotation.

12. Copyright: Derivative Software
When software is derived from other software:
• Copyright in new code only is owned by new developer
• Conditions that apply to old code apply to derived work
If you write S, which includes code derived from A, B, C and D, you cannot distribute or licenses S unless you have right, from the copyright owner, to distribute each of A, B, C and D.
When creating a software product, you must have documented rights to use every component.

13. Software Copyright Questions
You are a student at ITU. When you finish your project:
• What use can you make of your work?
• What use can your client make of it?
• What use can ITU make of it?

14. Software Copyright Questions
You are a student at ITU. When you finish your project:
• What use can you make of your work?
• What use can your client make of it?
• What use can ITU make of it?
At ITU, you own the copyright in the work that you do for a class. Anybody else, including ITU or your clients, needs your permission before using the software in any way.
The feasibility study for your project should include a commitment to your clients that they will have full rights to the software developed (either transfer of ownership or a comprehensive license).

15. Copyright: Good Questions
When software is written, who owns the copyright?
How can somebody else be permitted to use the software?
How can copyright be transferred to somebody else?

16. Copyright: Some Answers
When software is written, who owns the copyright?
The person who writes the software
Except works for hire, where the employer owns copyright
How can somebody else be permitted to use the software?
By permission from the copyright owner
(usually a license)
How can copyright be transferred to somebody else?
Copyright is property that can be sold or given away
(usually a contract)

17. Copyright: Good Questions
You are employed for company X writing software.
When you leave, who owns your work?
What use can you make of the work?

18. Copyright: Some Answers
You are employed for company X writing software.
When you leave, who owns your work?
The company (work for hire)
What use can you make of the work?
None, without permission of the copyright owner.
(Perhaps some minor use under "fair use".)

19. Copyright: Good Questions
You work free-lance for company X.
When you finish, who owns your work?
What use can you make of the work?

20. Copyright: Some Answers
You work free-lance for company X.
When you finish, who owns your work?
It depends on the circumstances.
Have a written contract.
What use can you make of the work?
If you hold the copyright -- unrestricted.
Otherwise -- none without agreement.
(Perhaps some minor use under "fair use".)

21. Contracts and Licences
Contracts allow intellectual property to be sold
• Economic agreement in exchange for some consideration
(e.g., money)
• Written document with signatures:
Permanent or temporary, whole or part
Exclusive or non-exclusive
Termination, problems and difficulties
Terms and conditions as agreed
• Enforceable by courts
For simple agreements, an exchange of letters is a convenient form of contract.

22. Creative Commons

23. Intellectual Property: Patents
Patents apply to inventions
• Should be: non-obvious, novel, useful
• Requires a complex process of patent application
• years from award (20 years from application)
Copyright applies to the expression of ideas, patents to the ideas themselves.

24. Software Patents Problems with software patents
• Poor quality of patent examiners can lead to broad patents for routine computing concepts
• Usually difficult to know where ideas originate
• International differences
The situation is a serious mess!

25. Trade Secrets and Non-Disclosure Agreements
"... information, including a formula, pattern, compilation, program, device, method, technique, or process that derives independent economic value from not being generally known and not being readily ascertainable and is subject to reasonable efforts to maintain secrecy."
Uniform Trade Secrets Act
Example: Microsoft source code
Non-Disclosure Agreement
Legal agreement not to disclose trade secrets

26. Trade Secrets
A trade secret does not expire - as long as it is kept secret.
Competitors may not use secrets obtained through extraordinary means.
If you learn trade secrets when working for one employer, you must not disclose them to another employer.

27. Trademark Specific name or phrase
Unique within a line of business, in a specific country (e.g., only one electronics firm called Apple in the USA, but could be a shipping line called Apple in the USA or a different electronics firm called Apple in another country.)
Generic terms cannot be trademarked (e.g., Windows is currently under dispute)
Trademarks can be lost if they are not defended
Lost trademarks: aspirin, kleenex
Held trademarks: Coke, Pepsi

28. Privacy Invasions of privacy: • intrusion
• appropriation of name or likeness
• unreasonable publicity
• false light
Be very careful about collecting personal data without the knowledge of the individual
Special legislation about privacy of children

29. Public or Private Information?
A lot of public information is considered private
An increasing amount of public information available on the Internet
Reverse phone lookups
Campaign Contributions
Housing prices
Driver’s license information and photographs

30. Privacy in Email Legally, email is like a postal letter
Expectation of privacy in transit
Mail loses its special protected status once it leaves the letter carrier's grasp
For ,
Expectation of privacy while signal travels over Internet
loses its protected status at the mail server whether you have read it or not

31. Privacy in the Workplace
Test for employers/employees - “Do you have a reasonable expectation of privacy?”
Work-related material on business machines is definitely not private.
Some organizations, e.g., most universities, treat private on business machines as private, but this is not the law.
Never send anything by that you would not be
prepared for your employer to see.
As a software engineer, you may come across other people's
private information. Keep it private. If in doubt consult your
supervisor.

32. Business
Electronic Communications Privacy Act (1986) says all business communication belongs to that business.
Deleting can be ruled intentionally destroying company records.
An archive is worthless if it cannot be indexed effectively (in effect, saving everything can be equivalent to saving nothing).

33. Free Speech
In the USA, the First Amendment protects many aspects of free speech, including news reporting, religious expression, etc., but their are major exceptions (e.g., state secrets, defamation, obscenity, racial hatred).
In the USA, some aspects (e.g., obscenity) are governed by state laws with big differences among states.
Laws in other countries may be very different (e.g., blasphemy, criticism of the government).

34. Special Situations Internet Service Providers
Transmit and store intellectual property that they do not own
A special (complex) legal framework protects them
If you run such a service, you need a knowledgeable lawyer
Ecommerce
Ecommerce operates across jurisdictional boundaries
Data is subject to various laws of privacy, security, taxation, etc.
If you run such a service, you need a knowledgeable lawyer.

35. Business Law: Personnel
Every state has strict and complex laws about recruitment, hiring, termination (firing), on-job conditions, and terms and conditions of employment. If you supervise other people, you need to know the basics of these laws.
Many employers run short courses for their supervisors or have a booklet with the key issues.
If in doubt, consult an expert.

36. Business Law: Your Next Job ...
Your employment contract may restrict your next job (not working for competitors, etc.)
Trade-secret information (non-disclosure agreement)
Contamination (knowledge of trade secrets may prevent you working on similar projects for others)
Ask before you accept the job!
Read the employment contract before you sign it!

37. Practical Advice It is often useful to read the text of a law.
You can find good sources all over the Internet.
But do not try to interpret the law by yourself. You may be reading the wrong law, or not know how it has been interpreted by the courts.

38. Practical Advice
Be aware of the law, but do not pretend to be a lawyer.
Use a professional for:
• Contracts and licenses (unless very simple exchange of letters)
• Troubles (complaints, injunctions, subpoenas, etc.)
• Personnel issues (particularly firing)
• When in doubt, ask for help!

39. End of Lecture 4