Information Technology: Trade Secrets

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Questions and Answers

Which of the following best describes a trade secret?

  • Information that is generally unknown to the public, kept confidential, and gives a business an advantage. (correct)
  • Any information a company patents to prevent others from using it.
  • Information that is copyrighted to protect its unique expression.
  • Publicly available information that gives a company a competitive edge.

What is a key advantage of trade secret law compared to patent or copyright law?

  • It is easier to enforce in court than patent law.
  • It prevents independent development of the same idea by others.
  • It has no time limitations and doesn't require filing or application fees. (correct)
  • It offers automatic international protection.

Why are employees considered a significant threat to trade secrets?

  • Employees are more likely to leak information to foreign governments.
  • Employees are typically unaware of the value of company secrets.
  • Employees have access to sensitive information and may misuse it, intentionally or unintentionally. (correct)
  • Employees are often targeted by competitors for industrial espionage.

What is the primary purpose of a noncompeting agreement?

<p>To protect intellectual property and business interests by restricting former employees from working for competitors. (D)</p> Signup and view all the answers

Which of the following is an element of intellectual property?

<p>Patent. (B)</p> Signup and view all the answers

What is the key characteristic of 'open source code'?

<p>Its source code is available for use or modification. (D)</p> Signup and view all the answers

What is the primary goal of competitive intelligence?

<p>To gather legally obtainable information to gain an advantage over rivals. (D)</p> Signup and view all the answers

What is the purpose of plagiarism detection systems?

<p>To check submitted material against databases of existing content to identify potential plagiarism. (C)</p> Signup and view all the answers

Which of the following exemplifies 'trademark infringement'?

<p>Using a competitor's legally protected logo in a way that causes consumer confusion. (B)</p> Signup and view all the answers

What is the primary goal of cybersquatting?

<p>To register domain names related to famous trademarks in hopes of selling them to the trademark owners for profit. (C)</p> Signup and view all the answers

How do educational institutions attempt to combat student plagiarism?

<p>By helping students understand what constitutes plagiarism and how to properly cite sources. (D)</p> Signup and view all the answers

What is a key consideration when determining if reverse engineering is ethical?

<p>Whether it violates any software license agreements. (B)</p> Signup and view all the answers

How does 'competitive intelligence' differ from 'industrial espionage'?

<p>Competitive intelligence involves gathering information through legal means, while industrial espionage involves illegal means. (C)</p> Signup and view all the answers

What action can trademark owners take to mitigate cybersquatting?

<p>They can register all possible domain names related to their trademark. (A)</p> Signup and view all the answers

Which of the following is true regarding trade secret law across different countries?

<p>Trade secret law varies significantly from country to country. (A)</p> Signup and view all the answers

What does the term 'reverse engineering' refer to in the context of information technology?

<p>The process of dismantling a product to understand its design and functionality. (C)</p> Signup and view all the answers

In the context of 'trade secrets,' what does 'economic value' primarily refer to?

<p>The competitive advantage a company gains from keeping information confidential. (C)</p> Signup and view all the answers

Which action constitutes plagiarism?

<p>Submitting a report that uses another person's ideas, without proper attribution. (D)</p> Signup and view all the answers

Under what circumstance is reverse engineering generally considered ethical?

<p>When it is done to enable interoperability with other systems, and does not violate a license agreement. (B)</p> Signup and view all the answers

Which statement accurately describes the relationship between "intellectual property" and its legal protection?

<p>Intellectual property requires legal protection through copyrights, patents, trademarks, or trade secrets to ensure exclusivity and prevent unauthorized use. (A)</p> Signup and view all the answers

What is the main principle behind 'nominative fair use' in trademark law?

<p>The permissible use of a trademark to identify or refer to the trademarked product itself. (C)</p> Signup and view all the answers

What role does the Internet Corporation for Assigned Names and Numbers (ICANN) play in addressing cybersquatting?

<p>ICANN manages the domain name system and facilitates dispute resolution related to domain names. (D)</p> Signup and view all the answers

How do nondisclosure agreements (NDAs) relate to the protection of trade secrets involving employees?

<p>NDAs require employees to keep trade secrets confidential, even after they leave the company. (C)</p> Signup and view all the answers

Which factor determines if the creation of a customer list constitutes a trade secret?

<p>The company take steps to protect it. (C)</p> Signup and view all the answers

Which of the following is true regarding open-source code?

<p>Open source code is made available for use or modification. (B)</p> Signup and view all the answers

Flashcards

Trade Secret

Information that a company has taken steps to keep confidential and provides an economic advantage over competitors.

Plagiarism

The act of stealing someone's ideas or words and passing them off as one's own.

Reverse Engineering

The process of taking something apart to understand how it works, build a copy, or improve it.

Open Source Code

Program source code made available for use or modification under an open source license.

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Competitive Intelligence

The collection and analysis of information about competitors and their strategies.

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Trademark Infringement

The unauthorized use of a trademark that is likely to cause confusion or deception.

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Cybersquatting

The practice of registering domain names that are similar to existing trademarks or company names with the intent to profit from the goodwill of the trademark.

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Copyright

Exclusive legal rights protecting authors of original works, including literary, dramatic, musical, and certain other intellectual works.

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Patent

A property right granted to an inventor to exclude others from making, using, or selling an invention.

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Trademark

A symbol, design, or phrase legally registered to represent a company or product.

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Noncompeting Agreements

Agreements that restrict an employee's ability to work for a competitor or start a competing business after leaving their current employer.

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Compiler

The process of translating program statements from a source language into machine language.

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Decompiler

A program that translates machine language instructions back into source code.

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Study Notes

  • Ethics in Information Technology is studied in the Third Year of Computer Science at the University of Computer Studies, Pathein.

Intellectual Property

  • Intellectual property can be protected by Copyrights, Patents or kept as Trade Secrets.

Trade Secrets

  • A trade secret includes business information that represents economic value and requires development effort or cost.
  • Trade secrets have some degree of uniqueness or novelty and are generally unknown to the public.
  • Information is only considered a trade secret if the company takes steps to protect it and keeps it confidential.
  • Trade secret law has some key advantages over patents and copyrights, with no time limitations and no need to file an application.
  • Under trade secret law, patents can be ruled invalid by courts without filing or application fees.
  • Legal protection does not prevent someone from using the same idea if it is developed independently.
  • Trade secret law varies greatly from country to country.
  • Employees are the greatest threat to trade secrets, especially unauthorized use of an employer's customer list.
  • Customer lists are not automatically considered a trade secret, so workers should be educated about the confidentiality of lists.
  • Nondisclosure clauses in employee contracts can help protect trade secrets.
  • Enforcement of nondisclosure clauses can be difficult, so confidentiality issues are often reviewed at the exit interview.
  • Noncompeting agreements can protect intellectual property from being used by competitors when key employees leave.
  • Noncompeting agreements may require employees not to work for competitors for a period of time.
  • Treatment of noncompeting agreements varies among states.

Key Intellectual Property Issues

  • Plagiarism, reverse engineering, open source code, competitive intelligence, trademark infringement, and cybersquatting apply to intellectual property and IT.

Plagiarism

  • Plagiarism is stealing someone’s ideas or words and passing them off as one’s own.
  • Many students do not understand what constitutes plagiarism, and believe that all electronic content is in the public domain.
  • Plagiarism is also common outside academia.
  • Plagiarism detection systems check submitted material against databases of electronic content.
  • Steps to combat student plagiarism include teaching students what constitutes plagiarism and why they need to cite sources.
  • Showing students how to document Web pages and scheduling major writing assignments in portions due over the course of the term further prevents plagiarism.
  • Informing students that instructors are aware of Internet paper mills and plagiarism detection services also helps prevent it.
  • Incorporation of plagiarism detection into an antiplagiarism program is essential.

Reverse Engineering

  • Reverse engineering takes something apart to understand, copy, or improve it.
  • Reverse engineering principles can be applied to computer hardware and software.
  • Reverse engineering can convert a program code to a higher-level design, or an app from one vendor’s database to run on another’s.
  • A compiler is a language translator that converts computer program statements expressed in a source language to machine language.
  • Software manufacturers provide software in machine language form,
  • A decompiler reads machine language and produces source code.
  • Courts have ruled in favor of reverse engineering to enable interoperability.
  • Software license agreements may forbid reverse engineering.
  • The ethics of using reverse engineering are debated and considered fair when providing useful function/interoperability.
  • Reverse engineering may uncover designs that someone else has developed at great cost and taken care to protect.

Open Source Code

  • Program source code is made available for use or modification by users and other developers.
  • The basic premise is that many programmers can help software improve and adapt to meet new needs.
  • When the code is open, bugs are rapidly identified and fixed, resulting in high reliability.
  • The GNU General Public License (GPL) was a precursor to the Open Source Initiative (OSI).

Competitive Intelligence

  • Competitive intelligence involves gathering legally obtainable information to help a company gain an advantage over rivals.
  • It is often integrated into a company’s strategic plans and decision making.
  • It's not the same as being an industrial spy who uses illegal means to obtain business information not available to the general public.
  • Without proper management safeguards, it can cross over to industrial spy.

Trademark Infringement

  • A trademark is a logo, package design, phrase, sound, or word that enables consumers to differentiate products from one company to another.
  • A trademark owner can prevent others from using the same mark or a confusingly similar mark on a product’s label.
  • Organizations frequently sue one another over the use of a trademark in a Web site or domain name.
  • Nominative fair use is a defense often employed by defendants in trademark infringement cases.

Cybersquatting

  • Cyber squatters register domain names for famous trademarks or company names.

  • They hope the trademark’s owner will buy the domain name for a large sum of money.

  • To curb cybersquatting, it's recommended to register all possible domain names, like .org, .com, .info.

  • The Internet Corporation for Assigned Names and Numbers (ICANN) manages several top-level domains including .com, .edu, .gov, .int, .mil, .net, .org, aero, .biz, .coop, .info, .museum, .name, .pro, .asis, .cat, .mobi, .tel, and .travel.

  • Current trademark holders have a time to assert their rights in the new top-level domains before registrations are opened to the general public.

  • The Anticybersquatting Consumer Protection Act allows trademark owners to challenge foreign cyber squatters.

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