1. Copyrights

2. HEC MONTRÉAL – MBA 53-751-03 IT and E-Commerce Jacques Robert & Jean Talbot, HEC Montréal Links on Copyrights Copyright basicsCopyright basicsCopyright basicsCopyright basics History of CopyrightHistory of CopyrightHistory of CopyrightHistory of Copyright Internet: Copyright and Intellectual Property IssuesInternet: Copyright and Intellectual Property IssuesInternet: Copyright and Intellectual Property IssuesInternet: Copyright and Intellectual Property Issues U.S. Copyright OfficeU.S. Copyright OfficeU.S. Copyright OfficeU.S. Copyright Office Copyright, Fair Use & Intellectual Property RightsCopyright, Fair Use & Intellectual Property RightsCopyright, Fair Use & Intellectual Property RightsCopyright, Fair Use & Intellectual Property Rights

3. HEC MONTRÉAL – MBA 53-751-03 IT and E-Commerce Jacques Robert & Jean Talbot, HEC Montréal Objectives of copyright laws Provide to the creator an exclusive and transferable right (monopoly) to reproduce, distribute, create products a creative work.Provide to the creator an exclusive and transferable right (monopoly) to reproduce, distribute, create products a creative work. Render illegal to copy a creative work without the consent of the author.Render illegal to copy a creative work without the consent of the author. Allow authors to draw profits from their creative work.Allow authors to draw profits from their creative work. Define limits : « fair use », « first sale doctrine ».Define limits : « fair use », « first sale doctrine ».

4. HEC MONTRÉAL – MBA 53-751-03 IT and E-Commerce Jacques Robert & Jean Talbot, HEC Montréal Doctrine « First sale » Basically this copyright doctrine says that owners of copies of copyrighted works can redistribute their copy without the copyright owner's permission.Basically this copyright doctrine says that owners of copies of copyrighted works can redistribute their copy without the copyright owner's permission. This traditionally promotes public access to information.This traditionally promotes public access to information. Many believe this doctrine should be abolished for works transmitted digitally.Many believe this doctrine should be abolished for works transmitted digitally.

5. HEC MONTRÉAL – MBA 53-751-03 IT and E-Commerce Jacques Robert & Jean Talbot, HEC Montréal Fair Use #1: Purpose and character of use. The courts are most likely to find fair use where the use is for noncommercial purposes, such as a book review.#1: Purpose and character of use. The courts are most likely to find fair use where the use is for noncommercial purposes, such as a book review. #2: Nature of the copyrighted work. The courts are most likely to find fair use where the copied work is a factual work rather than a creative one.#2: Nature of the copyrighted work. The courts are most likely to find fair use where the copied work is a factual work rather than a creative one. #3: Amount and substantiality of the portion used. The courts are most likely to find fair use where what is used is a tiny amount of the protected work. If what is used is small in amount but substantial in terms of importance - the heart of the copied work - a finding of fair use is unlikely. #4: Effect on the potential market for or value of the protected work. The courts are most likely to find fair use where the new work is not a substitute for the copyrighted work. Source: Intellectual Property Law Primer for Multimedia Developers Copyright 1994 by J. Dianne Brinson and Mark F. Radcliffe#3: Amount and substantiality of the portion used. The courts are most likely to find fair use where what is used is a tiny amount of the protected work. If what is used is small in amount but substantial in terms of importance - the heart of the copied work - a finding of fair use is unlikely. #4: Effect on the potential market for or value of the protected work. The courts are most likely to find fair use where the new work is not a substitute for the copyrighted work. Source: Intellectual Property Law Primer for Multimedia Developers Copyright 1994 by J. Dianne Brinson and Mark F. Radcliffe

6. HEC MONTRÉAL – MBA 53-751-03 IT and E-Commerce Jacques Robert & Jean Talbot, HEC Montréal Fundamentalist Approach Protection of private property.Protection of private property. Copying is stealing.Copying is stealing. The state must protect private property et hence make copying illegal.The state must protect private property et hence make copying illegal.

7. HEC MONTRÉAL – MBA 53-751-03 IT and E-Commerce Jacques Robert & Jean Talbot, HEC Montréal Agenda Maximalist Give copyright owners control over every use of copyright works in digital form.Give copyright owners control over every use of copyright works in digital form. Give copyright owners control over every transmission of works in digital form.Give copyright owners control over every transmission of works in digital form. Eliminate fair-use rights whenever a use might be licensed.Eliminate fair-use rights whenever a use might be licensed. Deprive the public of the « first sale » right.Deprive the public of the « first sale » right. Attach copyright management information to digital copies of a work.Attach copyright management information to digital copies of a work. Protect every digital copy of every work technologically.Protect every digital copy of every work technologically. Force online service providers to become copyright police.Force online service providers to become copyright police.

8. HEC MONTRÉAL – MBA 53-751-03 IT and E-Commerce Jacques Robert & Jean Talbot, HEC Montréal Economic Approach - incentive On one hand, copyright laws provide incentive to the creation of creative work.On one hand, copyright laws provide incentive to the creation of creative work. On the other, copyright laws create monopoly powers to the authors (and distributor).On the other, copyright laws create monopoly powers to the authors (and distributor). A tradeoff exists.A tradeoff exists.

9. HEC MONTRÉAL – MBA 53-751-03 IT and E-Commerce Jacques Robert & Jean Talbot, HEC Montréal Role of distributors Distribute /produce creative worksDistribute /produce creative works Protect copyrights and pay creators.Protect copyrights and pay creators. Play the role of « Gatekeepers »Play the role of « Gatekeepers » –Identify relevant and interesting creative works –Assure their distribution

10. HEC MONTRÉAL – MBA 53-751-03 IT and E-Commerce Jacques Robert & Jean Talbot, HEC Montréal Digital Right Management Developing electronic tools to track the use and distribution of Informational goodsDeveloping electronic tools to track the use and distribution of Informational goods Jeff Howe, "Licensed to bill", Wired.com, Sept 2001.Jeff Howe, "Licensed to bill", Wired.com, Sept 2001.Jeff Howe, "Licensed to bill", Wired.com, Sept 2001.Jeff Howe, "Licensed to bill", Wired.com, Sept 2001. ProblemsProblems – Developing micropayments – Annoying consumers – Breaking the protection