Today discussion Intellectual property. What exactly is intellectual property ? Types of intellectual property. Patents, Trademarks and Designs. The ”BIG PICTURE” (Discussions) Ethical issues and challenges in a new software age, with regard to Intellectual property.

A grant of rights to creators enhances incentives to invest in innovation & make innovative products available Why do we need IP?

”Defining: Intellectual Property” ”Creativity or Innovation” (Creation of the mind) Facilitates people to own their creation. Gives ”Legal Entitlement” (A grant of rights) Like ”Real Property” (Can be bought,sold,licensed,exchanged, given way or authorized) In short: Can be classified as a collection of legal doctrines that protect creative assets and efforts.

Types of Intellectual Property Patents Trade marks Trade Secrets Copyrights

Patents A patent gives an inventor the right for a limited period to stop others from making, using or selling an invention without the permission of the inventor. Basic conditions must be fulfilled: Should not be a part of the "state of the art". (Everything that has been made available to the public before) Must involve an inventive step Must be industrially applicable

What can be patented ? Design, invention, process, software system Advantages: Strong protection- total exclusivity Disadvantages: Long, expensive, technical process Must make public all details

Trademarks A trade mark is any ”sign” which can distinguish the goods and services of one trader from those of another. The ”sign’s” implication: Words Logos Colours (Ferrari’s trademark colour RED) Slogans Three-dimensional shapes Sounds and gestures (Catoons)

Trade Secrets Any formula, pattern, device, or compilation of information which is secret and give one an advantage in business. Owner must make reasonable efforts to safeguard the secret. AMD/ Cyrix vs. Intel

Big Picture IP rules well-suited to manufacturing era, but will they do as well for the information age? –More know how borne on or near the face of information products (e.g., biotech, software) –Some valuable information products don’t fit the old paradigms (e.g., software, databases) How to maintain balance in the law? –IP law works in part because of limitations (e.g., reverse engineering, reuse of information & ideas) –Not the case that more IP is necessarily better IP

Big Picture Computer software was first big challenge because it is a machine whose medium of construction happens to be text –Machines, machine parts not copyrightable –Not a “literary work” in traditional sense –Texts and information innovations historically not patentable –Benson decision: only processes that transform matter can be patented –Source code may be trade secret, but program contains source equivalent; accessible through decompilation

Big Picture Early on Software was not considered a patentable item. Patents have since been given for certain pieces of software and for “processes”. Some software patents include: LZH encoding,RSA Encryption (expired).

Big Picture One reaction to the costs of certain software packages and to sometimes restrictive licensing has been the growth of Open Software. – Richard Stallman – Linus Torvald – Many Others But even these people are constantly discussing what fair use of the work is…

Big Picture Resolution of software dilemma: –Copyright now protects source & object code, fanciful user interface designs, some structural design features –Patent now protects algorithms, methods of operation, functional user interface designs –Fair use to decompile for legitimate purpose –Trade secret law protects unpublished source, design documents, & some program internals –Hotly contested whether licenses forbidding reverse engineering should be enforceable

Discussions Are patents good for technology and people? Should software be patentable? What is fair use of a product?