1. Copyright © 2010 Pearson Education, Inc.Copyright © 2007 Pearson Education, Inc. Slide 1-1 ELC 200 Day 17

2. Agenda Questions? Guidelines for final paper posted  initiative framework guidlines.pdf initiative framework guidlines.pdf  Due Dec 14 @ 10:00 AM Assignment 6 Due Assignment 7 posted  Due November 18  ELC 200 assignment 7.pdf ELC 200 assignment 7.pdf Exam 2 will be Nov 8  Chap 6, 7 & 8  Same format as before, 70 min  Two extra credit questions @ 5 points each Mozilla 0, 1, 1,2,3,5,8,13,21,34,55,89,…  Points penalty for going over time limit Finish Ethical, Social, and Political Issues in E-commerce

3. Copyright © 2010 Pearson Education, Inc.Copyright © 2009 Pearson Education, Inc. Slide 8-3 Chapter 8 Ethical, Social, and Political Issues in E-commerce

4. Copyright © 2010 Pearson Education, Inc. Intellectual Property Rights Intellectual property:  Encompasses all tangible and intangible products of human mind Major ethical issue:  How should we treat property that belongs to others? Major social issue:  Is there continued value in protecting intellectual property in the Internet age? Major political issue:  How can Internet and e-commerce be regulated or governed to protect intellectual property? Slide 8-4

5. Copyright © 2010 Pearson Education, Inc. Intellectual Property Protection Three main types of protection: 1. Copyright 2. Patent 3. Trademark law Goal of intellectual property law:  Balance two competing interests—public and private Maintaining this balance of interests is always challenged by the invention of new technologies Slide 8-5

6. Copyright © 2010 Pearson Education, Inc. Copyright Copyright law:  Protects original forms of expression (but not ideas) from being copied by others for a period of time  http://www.copyright.gov/ http://www.copyright.gov/ Look and feel copyright infringement lawsuits Fair use doctrine Digital Millennium Copyright Act, 1998  First major effort to adjust copyright laws to Internet age  Implements WIPO treaty that makes it illegal to make, distribute, or use devices that circumvent technology-based protections of copyrighted materials Slide 8-6

7. Copyright © 2010 Pearson Education, Inc. Slide 8-7

8. Copyright © 2010 Pearson Education, Inc. Patents Patents: grants owner a 20-year monopoly on ideas behind an invention  Four types of inventions: (1) machines, (2) man-made products, (3) compositions of matter, (4) processing methods  Invention must be new, non-obvious, novel  http://www.uspto.gov/ http://www.uspto.gov/ Benefits  Encourages inventors  Promotes dissemination of new techniques through licensing Danger  Stifles competition by raising barriers to entry Slide 8-8

9. Copyright © 2010 Pearson Education, Inc. E-commerce Patents Business methods patents  Internet basic infrastructure, software developed via public programs, not patented  1998 Federal Court upheld claims to business method patent  U.S. Patent Office, European Patent Convention hold different standards  Examples: Amazon’s one-click purchasing DoubleClick’s dynamic delivery of online advertising Slide 8-9

10. Copyright © 2010 Pearson Education, Inc. Internet and E-commerce Business Method Patents Figure 8.3, Page 535 Slide 8-10 SOURCE: U.S. Patent and Trademark Office, 2009.

11. Copyright © 2010 Pearson Education, Inc. Slide 8-11

12. Copyright © 2010 Pearson Education, Inc. Slide 8-12

13. Copyright © 2010 Pearson Education, Inc. Trademarks Trademark:  Identifies, distinguishes goods and indicates their source  Ensures consumer gets what pays for/expects to receive  Protects owner against piracy and misappropriation  Registered with USPTO http://www.uspto.gov/trademarks/basics/index.jsp Infringement: use of trademark that  Creates confusion with existing marks, causes consumers to make market mistakes, or  Misrepresents origins of goods Dilution:  Behavior that weakens connection between trademark and product Slide 8-13

14. Copyright © 2010 Pearson Education, Inc. Trademarks and the Internet Cybersquatting  Anticybersquatting Consumer Protection Act (ACPA) Cyberpiracy  Typosquatting  Googlle,gooogle, g00gle Metatagging Keywording Deep linking Framing http://perleybrook.umfk.maine.edu/samples/frame1.htm http://perleybrook.umfk.maine.edu/samples/frame1.htm Slide 8-14

15. Copyright © 2010 Pearson Education, Inc. Slide 8-15

16. Copyright © 2010 Pearson Education, Inc. Governance Primary questions  Who will control Internet and e-commerce?  What elements will be controlled and how? Stages of governance and e-commerce  Government Control Period (1970–1994)  Privatization (1995–1998)  Self-Regulation (1995–present)  Government Regulation (1998–present) Slide 8-16

17. Copyright © 2010 Pearson Education, Inc. Who Governs E-commerce and the Internet? Currently: mixed mode policy environment  Self-regulation, through variety of Internet policy and technical bodies, co-exists with limited government regulation ICANN in charge of Domain Name System Internet can be very easily controlled, monitored, and regulated from a central location (e.g., China, Singapore, etc.) Slide 8-17

18. Copyright © 2010 Pearson Education, Inc. Taxation “ The power to tax is the power to destroy.” John Marshall, US Supreme Court Judge E-commerce taxation illustrates complexity of governance and jurisdiction issues Internet sales wreak havoc on traditional taxation schemes in the United States based on local commerce and local jurisdictions October 2007: Congress extends tax moratorium for an additional seven years Unlikely that comprehensive, integrated rational approach to taxation issue will be determined for some time to come Internet_taxation.ppt Slide 8-18

19. Copyright © 2010 Pearson Education, Inc. Net Neutrality Currently, all Internet traffic treated equally —all activities charged the same rate, no preferential assignment of bandwidth Backbone providers would like to charge differentiated prices and ration bandwidth FCC has indicated will propose rule in favor of net neutrality Slide 8-19

20. Copyright © 2010 Pearson Education, Inc. Public Safety and Welfare Protection of children and strong sentiments against pornography  Passing legislation that will survive court challenges has proved difficult Efforts to control gambling and restrict sales of drugs and cigarettes  Currently mostly regulated by state law  Unlawful Internet Gambling Enforcement Act Slide 8-20

21. Copyright © 2010 Pearson Education, Inc. Insight on Society The Internet Drug Bazaar Class Discussion What’s wrong with buying prescription drugs online, especially if the prices are lower? What are the risks and benefits of online pharmacies? Should online pharmacies require a physician’s prescription? How do online pharmacies challenge the traditional business model of pharmacies and drug firms? What are the challenges in regulating online pharmacies? Who benefits and who loses from online pharmacies? Slide 8-21

22. Copyright © 2010 Pearson Education, Inc. Slide 8-22 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall