1. Copyright and Intellectual Property Right 1

2. 2 Use and Protection of Intellectual Property in Online Business Intellectual property (general term) includes: – All products of the human mind Tangible or intangible – Protections afforded by copyrights and patents, trademarks registration, service marks Right of publicity – Limited right to control others’ commercial use of an individual’s name, image, likeness, identifying aspect of identity – Limited by U.S. First Amendment provisions

3. 3 Use and Protection of Intellectual Property in Online Business (cont’d.) Online businesses must avoid: – Deceptive trade practices – False advertising claims – Defamation or product disparagement – Infringements of intellectual property rights By using unauthorized content

4. World Intellectual Property Day April 26 On World Intellectual Property Day this year, WIPO's focus is on promoting VISIONARY INNOVATION as the key to a secure future. 2009 WORLD IP DAY

5. Copyright Issues Copyright – Right granted by government to the author (creator) of literary or artistic work Specific time length provided in copyright law – Gives author (creator) sole and exclusive right to the work (print, publish, sell) – Includes virtually all forms of artistic or intellectual expression 5

6. 6 Copyright Issues (cont’d.) Idea contained in an expression – Cannot be copyrighted Requirement – Idea must be separate from expression – Example: mathematical calculations Collection of facts – Can be copyrighted – Example: Yahoo! Web Directory

7. 7 Copyright Issues (cont’d.) U.S. law still allows registration (no longer required) Work created after 1989 – Copyrighted automatically by virtue of copyright law Most U.S. Web pages protected by automatic copyright provision Web client computer copy of HTML file – Acceptable under fair use Includes copying it for use in criticism, comment, news reporting, teaching, scholarship, or research

8. 8 FIGURE 8-7 U.S. law governing the fair use exception

9. Copyright Issues (cont’d.) Fair use specific factors – Nonprofit educational uses have better chance of qualifying than commercial uses – Court may consider painting using different standards than sound recording – Small sections qualify when entire work might not – Court may consider amount of damage caused to value of copyrighted work 9

10. 10 Copyright Issues (cont’d.) Copyright law difficult to apply – Due to elements such as fair use Vicarious copyright infringement – Entity capable of supervising infringing activity – Obtains a financial benefit from infringing activity Example: Napster – Failed to monitor its network – Profited indirectly from the infringement Music downloads, copying – Legality unclear in many cases