Legal Online Access to Entertainment and Copyrights
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Questions and Answers

What is the primary reason companies are pressured to make legal online access easy?

  • High demand for physical copies
  • Consumer ignorance about copyright
  • Competition among businesses
  • Widespread piracy (correct)

    • What is a significant change in consumer behavior regarding music?

  • Decreased interest in music overall
  • Preference for buying physical CDs
  • More reliance on DRM-protected music
  • Increased popularity of music streaming (correct)

    • Which model allows listeners to stream music for free?

  • Payment-per-stream model
  • Premium-only model
  • Subscription model
  • Ad-supported model (correct)

    • What was established by the case of Apple Computer v. Franklin Computer?

    <p>Object programs are copyrightable</p> Signup and view all the answers

    What does copyright protection cover regarding software?

    <p>The expression of an idea</p> Signup and view all the answers

    What is an example of a violation of software copyrights?

    <p>Copying a program to sell to someone else</p> Signup and view all the answers

    What was determined in the Oracle v. Google case?

    <p>Google's copying violated Oracle's copyright</p> Signup and view all the answers

    Which of the following is NOT a model for music streaming mentioned?

    <p>Pay-per-album model</p> Signup and view all the answers

    What do people have a natural right to according to John Locke?

    <p>To property created through their own labor</p> Signup and view all the answers

    What condition must be met regarding property use according to Locke?

    <p>Nobody claims more property than they can use</p> Signup and view all the answers

    In Locke's analogy, how is writing a play compared to making a belt buckle?

    <p>Both involve the transformation of raw materials into a finished product</p> Signup and view all the answers

    What weakens the argument for a natural right to intellectual property?

    <p>Simultaneous creation leading to shared ownership</p> Signup and view all the answers

    What is one of the benefits of intellectual property protection mentioned?

    <p>It encourages speculative work due to potential wealth</p> Signup and view all the answers

    How does the U.S. Congress handle intellectual property rights?

    <p>By providing rights for a limited time</p> Signup and view all the answers

    What is a key concern regarding intellectual property protection and creativity?

    <p>It limits the dissemination of knowledge</p> Signup and view all the answers

    Which statement reflects a limit to intellectual property rights?

    <p>Unlimited rights can discourage innovation</p> Signup and view all the answers

    Why do some view intellectual property rights as potentially problematic?

    <p>They may cause monopolization of knowledge</p> Signup and view all the answers

    How does Locke's view apply to both physical and intellectual property?

    <p>They both derive from personal labor and transformation of resources</p> Signup and view all the answers

    What is the expected value of Rajiv's raise if there is no litigation?

    <p>$112,500 over 5 years</p> Signup and view all the answers

    What is the total projected loss due to litigation risk for Unrelated.com?

    <p>$312,500</p> Signup and view all the answers

    What consequence does the 'clean room' option have for the team?

    <p>Allows for a system that meets performance requirements</p> Signup and view all the answers

    What is the total cost of the six-month delay for Unrelated.com?

    <p>$3,000,000</p> Signup and view all the answers

    According to the virtue ethics analysis, which option is considered prudent?

    <p>Clean room option</p> Signup and view all the answers

    What future outcome could Rajiv face if litigation occurs?

    <p>Get fired</p> Signup and view all the answers

    What was the outcome of the act-utilitarian analysis regarding the options available?

    <p>Personally involved option is preferred</p> Signup and view all the answers

    Which of the following is a characteristic of a good manager according to the virtue ethics analysis?

    <p>Sharing expertise with the team</p> Signup and view all the answers

    What amount does the expected loss from litigation cost based on a 6.25% risk factor?

    <p>$312,500</p> Signup and view all the answers

    Which ethical framework favors the 'clean room' option?

    <p>Both B and C</p> Signup and view all the answers

    What is the purpose of the 'clean room' software development strategy?

    <p>To protect against unconscious copying</p> Signup and view all the answers

    What significant change occurred in 1981 regarding software patents?

    <p>The U.S. Supreme Court allowed for the first software patent</p> Signup and view all the answers

    What strategy do patent-holding companies typically use?

    <p>They buy patents and enforce patent rights</p> Signup and view all the answers

    Why do companies build stockpiles of patents?

    <p>As a defense mechanism against patent infringement lawsuits</p> Signup and view all the answers

    What is a key difference between software copyrights and software patents?

    <p>Software copyrights are usually inexpensive, while patents can be costly</p> Signup and view all the answers

    What is the duration of exclusive rights granted by a patent?

    <p>20 years</p> Signup and view all the answers

    Which right is NOT granted by copyright?

    <p>Patent protection</p> Signup and view all the answers

    What significant effect did the No Electronic Theft Act have?

    <p>It criminalized the reproduction of copyrighted material over a certain value.</p> Signup and view all the answers

    How has copyright protection changed since the first Copyright Act in 1790?

    <p>It has expanded in both duration and kinds of intellectual property.</p> Signup and view all the answers

    Which of the following statements about the Copyright Term Extension Act of 1998 is true?

    <p>It validly extends copyright terms without creating perpetual copyrights.</p> Signup and view all the answers

    In the case of Gershwin Publishing v. Columbia Artists, what was Columbia Artists Management Inc. found guilty of?

    <p>Copyright infringements by supporting community concert associations.</p> Signup and view all the answers

    What percentage of U.S. gross domestic product do copyright-related industries represent?

    <p>5%</p> Signup and view all the answers

    What was the main argument against the Copyright Term Extension Act of 1998 by petitioners?

    <p>It exceeded Congress's constitutional power.</p> Signup and view all the answers

    Which of the following is NOT a right provided to copyright owners?

    <p>Patent enforcement</p> Signup and view all the answers

    What was one of the consequences of the lengthening copyright terms since 1790?

    <p>Specifically delaying Disney characters from becoming public domain.</p> Signup and view all the answers

    What is a significant characteristic of intellectual property?

    <p>It includes creations of the mind.</p> Signup and view all the answers

    What has contributed to the rapid spread of illegal copies of media?

    <p>Advances in internet technology.</p> Signup and view all the answers

    What is one major concern regarding intellectual property rights?

    <p>They potentially hinder creativity and innovation.</p> Signup and view all the answers

    What is an example of a form of intellectual property?

    <p>A trademark</p> Signup and view all the answers

    What is the primary purpose of copyright law?

    <p>To protect the creators of original works.</p> Signup and view all the answers

    What role do peer-to-peer networks play in the context of copyright?

    <p>They facilitate the sharing of copyrighted materials illegally.</p> Signup and view all the answers

    What is a key difference between copyright and patent protection?

    <p>Patents protect inventions, while copyrights protect creative works.</p> Signup and view all the answers

    What is one benefit associated with the protection of intellectual property?

    <p>It encourages monetary investment in creative endeavors.</p> Signup and view all the answers

    What was a significant outcome of the legal disputes between major smartphone manufacturers?

    <p>Cross-licensing of patents occurred among smartphone makers.</p> Signup and view all the answers

    What requirement did the U.S. Supreme Court establish in the case of Alice Corporation v. CLS Bank regarding patent protection?

    <p>An inventive concept must be present for a patent to be valid.</p> Signup and view all the answers

    Which argument challenges the notion that labor implies ownership in intellectual property?

    <p>Labor does not necessarily create a right to own the outcomes of that labor.</p> Signup and view all the answers

    What defense do software licenses offer regarding copyright infringement?

    <p>They prevent users from making unauthorized copies for sale or distribution.</p> Signup and view all the answers

    What was one of the consequences of the numerous lawsuits filed during the smartphone patent wars?

    <p>Billions of dollars were spent in legal fees by various manufacturers.</p> Signup and view all the answers

    What is the main characteristic of a trade secret?

    <p>It provides a competitive advantage.</p> Signup and view all the answers

    What happens to a trademark if the brand name becomes a common noun?

    <p>It may be lost.</p> Signup and view all the answers

    Which of the following statements is true about service marks?

    <p>They identify services.</p> Signup and view all the answers

    How is reverse engineering related to trade secrets?

    <p>It can be used to discover trade secrets.</p> Signup and view all the answers

    What is a significant concern for companies regarding their trade secrets?

    <p>They may be compromised when employees leave.</p> Signup and view all the answers

    What is the purchase price for 'Holst's The Planets' in the year it became public domain?

    <p>$300.00</p> Signup and view all the answers

    Which intellectual property type never expires?

    <p>Trade Secret</p> Signup and view all the answers

    What action can companies take to protect their trademarks?

    <p>Advertise the trademark widely.</p> Signup and view all the answers

    What is one of the consequences if a company does not actively protect its trademark?

    <p>The trademark can become a common noun.</p> Signup and view all the answers

    What is the rental fee for 'Ravel’s Daphnis et Chloe Suite no. 2' in the year it became public domain?

    <p>$265.00</p> Signup and view all the answers

    What is the primary purpose of the 'clean room' software development strategy?

    <p>To ensure teams work independently to avoid unconscious copying</p> Signup and view all the answers

    What was the significance of the U.S. Supreme Court decision in 1981 regarding software?

    <p>It opened the door for the first software patent to be granted.</p> Signup and view all the answers

    What issue do critics raise about the number of software patents issued?

    <p>That the Patent Office often lacks knowledge of prior art.</p> Signup and view all the answers

    Which of the following is NOT a characteristic of patent-holding companies?

    <p>They specialize in developing software.</p> Signup and view all the answers

    What advantage do companies gain by building stockpiles of patents?

    <p>To establish a defensive mechanism against infringement lawsuits.</p> Signup and view all the answers

    What is a distinguishing feature of software copyrights compared to software patents?

    <p>Software copyrights cover the object program and screen displays.</p> Signup and view all the answers

    What misconception may lead to the issuance of problematic software patents?

    <p>Overlooking the applicability of prior arts.</p> Signup and view all the answers

    What is a common outcome for companies involved in patent infringement lawsuits?

    <p>They often choose to settle to avoid lengthy litigation.</p> Signup and view all the answers

    Which of the following is a significant challenge posed by the issuance of software patents?

    <p>They can lead to companies fearing infringement lawsuits.</p> Signup and view all the answers

    What was a restriction imposed by the FairPlay DRM scheme used by iTunes Music Store?

    <p>Limits playback to five different computers</p> Signup and view all the answers

    Which action did EMI take regarding DRM in 2007?

    <p>Began selling all songs DRM free</p> Signup and view all the answers

    What was one of the controversial features of the original Xbox One licensing arrangement?

    <p>Games must be checked in every 24 hours</p> Signup and view all the answers

    Which significant change did Microsoft implement regarding Xbox One after consumer backlash?

    <p>Allowed lending, renting, and selling of discs</p> Signup and view all the answers

    How do peer-to-peer networks facilitate data exchange?

    <p>Enable simultaneous transfers between arbitrary pairs of computers</p> Signup and view all the answers

    What limitation did users face with songs purchased from the iTunes Music Store originally?

    <p>Only play on Apple devices</p> Signup and view all the answers

    Which company reached an agreement with music labels to sell DRM-free music in 2008?

    <p>Amazon</p> Signup and view all the answers

    What characteristic defines a peer-to-peer (P2P) network?

    <p>It allows decentralized access to shared files</p> Signup and view all the answers

    What did consumers express dissatisfaction with regarding DRM-protected music?

    <p>Restrictions on exchange and usage</p> Signup and view all the answers

    Which major change occurred in 2009 regarding Apple's offerings?

    <p>Began offering music without DRM protection</p> Signup and view all the answers

    What is necessary for patent protection according to the U.S. Supreme Court ruling in Alice Corporation v. CLS Bank?

    <p>There must be an inventive concept involved.</p> Signup and view all the answers

    What significant change occurred in the smartphone patent wars around 2014?

    <p>Smartphone manufacturers agreed to cross-license each other’s patents.</p> Signup and view all the answers

    What argument criticizes the 'just deserts' notion of ownership in programming?

    <p>Labor alone does not guarantee a claim to ownership.</p> Signup and view all the answers

    Why have district and federal courts frequently cited the Alice Corporation v. CLS Bank decision?

    <p>To clarify patent eligibility criteria.</p> Signup and view all the answers

    What common misconception about software licenses is addressed in the discussion about intellectual property protection?

    <p>Software licenses restrict the ability to share software entirely.</p> Signup and view all the answers

    Which of the following statements about music streaming revenues is accurate?

    <p>Publishers experience significantly lower revenues from music streaming compared to selling CDs.</p> Signup and view all the answers

    What is typically considered a violation of software copyrights?

    <p>Providing access to a program online for free distribution without permission.</p> Signup and view all the answers

    What general principle was established by the case of Sega v. Accolade?

    <p>Disassembling object code to determine technical specifications can be considered fair use.</p> Signup and view all the answers

    What aspect of copyright does software copyright protection primarily cover?

    <p>The expression of the idea embodied in the object program.</p> Signup and view all the answers

    In what way has the introduction of legal online access impacted music consumption?

    <p>It has made legal access as convenient as illegal access, favoring legal consumption.</p> Signup and view all the answers

    Which model has not been mentioned as a music streaming model?

    <p>Single purchase model.</p> Signup and view all the answers

    How do companies typically treat source code to protect their interests?

    <p>They treat it as a trade secret to prevent unauthorized access.</p> Signup and view all the answers

    What was the significant legal outcome of the Oracle v. Google case?

    <p>Oracle's copyright was upheld against Google's use of API packages.</p> Signup and view all the answers

    What distinguishes space shifting from making copies for friends?

    <p>Space shifting is considered fair use.</p> Signup and view all the answers

    What was the key reason the court ruled in favor of Google in Authors Guild v. Google?

    <p>The court found that Google Books stimulated book sales.</p> Signup and view all the answers

    Which aspect weighed against fair use in the Google Books case?

    <p>The amount of work scanned was entire copyrighted books.</p> Signup and view all the answers

    In the Kelly v. Arriba Soft case, what was the court's stance on the use of thumbnail images?

    <p>The court classified thumbnails as fair use.</p> Signup and view all the answers

    What type of work predominantly contributes to a finding of fair use in the Google Books case?

    <p>Nonfictional works</p> Signup and view all the answers

    Why might an audio collage be considered fair use?

    <p>It is highly transformative.</p> Signup and view all the answers

    What does the legal suggestion state regarding the A vs. B mashup?

    <p>It is not considered fair use unless it serves a specific purpose.</p> Signup and view all the answers

    What main argument did the Authors Guild present against Google’s actions?

    <p>Google was copying works for commercial purposes.</p> Signup and view all the answers

    In the context of copyright law, what does transformative use generally refer to?

    <p>Creating a new work that adds significant new expression or meaning.</p> Signup and view all the answers

    What aspect of space shifting is crucial for it to be classified as fair use?

    <p>It must be made for personal backup or portable use.</p> Signup and view all the answers

    What does the 'clean room' software development strategy primarily aim to prevent?

    <p>Unintentional copying of proprietary software</p> Signup and view all the answers

    Which of the following statements about software patents is true?

    <p>The number of software patents has significantly increased since 1981.</p> Signup and view all the answers

    What are patent trolls primarily known for?

    <p>Acquiring patents and enforcing rights against infringement</p> Signup and view all the answers

    What is a common criticism regarding the issuance of software patents?

    <p>Obvious inventions can be patented, leading to excessive patenting.</p> Signup and view all the answers

    Which of the following is NOT a characteristic of software copyright protection?

    <p>Is expensive to obtain</p> Signup and view all the answers

    What does the term 'prior art' refer to in the context of software patents?

    <p>All public information that precedes a patent application and may affect its validity</p> Signup and view all the answers

    What strategy do companies often pursue to defend against potential patent infringement lawsuits?

    <p>Building stockpiles of patents</p> Signup and view all the answers

    What key aspect differs between software patents and copyrights?

    <p>Software patents protect the idea; copyrights protect the expression.</p> Signup and view all the answers

    Which significant Supreme Court decision led to changes in software patenting practices?

    <p>The ruling that recognized software as a process rather than just an algorithm</p> Signup and view all the answers

    What is the primary focus of licensing software patents for companies like Microsoft?

    <p>To generate revenue</p> Signup and view all the answers

    What action is prohibited under the Digital Millennium Copyright Act?

    <p>Circumventing copy controls</p> Signup and view all the answers

    What was a significant reason for the failure of the Secure Digital Music Initiative?

    <p>The internet allowed for uncontrolled copying</p> Signup and view all the answers

    Which of the following criticisms of Digital Rights Management emphasizes its limitations on user freedoms?

    <p>DRM prevents competition among digital platforms</p> Signup and view all the answers

    What was a consequence of the Sony BMG Music Entertainment rootkit incident?

    <p>Public backlash and cessation of the rootkit's production</p> Signup and view all the answers

    Which approach is NOT typically associated with protecting digital media rights?

    <p>Facilitating unlimited sharing of digital content</p> Signup and view all the answers

    What does the term 'digital watermarking' refer to in the context of digital media protection?

    <p>An approach to identify and track digital content usage</p> Signup and view all the answers

    What was one of the motivations for the creation of the Digital Millennium Copyright Act?

    <p>To align U.S. copyright practices with those in Europe</p> Signup and view all the answers

    Which of the following is a potential outcome of implementing strict DRM measures?

    <p>An increase in illegal copying of media</p> Signup and view all the answers

    What significant issue does DRM raise concerning user access to digital content?

    <p>It can make anonymous access to content impossible</p> Signup and view all the answers

    Study Notes

    • Online stores are fighting piracy by making legal downloads easy and convenient
    • Music without DRM (Digital Rights Management) increases accessibility and popularity
    • Consumers are shifting to music streaming
      • 100 million people use ad-supported streaming
      • 40 million people pay for streaming monthly subscriptions
    • Video streaming services, such as Netflix, Hulu Plus, and Amazon Prime Instant Video, are popular in the US, reaching 40% of homes
    • Music streaming revenues for publishers are significantly lower than CD sales

    Software Copyrights

    • Copyright protection for software began in 1964
    • Copyright protects the expression of an idea, not the idea itself
    • Software companies treat source code as a trade secret, protecting it from unauthorized access
    • Copying a program to sell or give to someone else is a violation
    • Preloading a program onto a computer being sold violates copyright
    • Distributing a program on the internet is a violation

    Important Court Cases

    • Apple Computer v. Franklin Computer established that object programs are copyrightable
    • Sega v. Acclimate determined that disassembling object code to determine technical specifications is fair use
    • Oracle v. Google concluded that Google's copying of declaring code from Java API packages was not fair use and was a violation of Oracle's copyrights

    Property Rights

    • Based on John Locke’s idea of property rights, people have the right to:
      • Their own person
      • Their own labour
      • Things they remove from nature through their labor
    • As long as the following conditions are met:
      • No one claims more property than they can use
      • There is sufficient property left over after someone takes it from the common state

    Locke’s Notion of Property Rights

    • People have a natural right to the things they take from nature through their own labor

    Expanding the Argument to Intellectual Property

    • Writing a play is analogous to making a belt buckle, requiring labor and application of existing materials:
      • Mining words from the English language
      • "Smelting" them into prose
      • "Casting" them into a complete play

    Analogy Is Imperfect

    • If two people write the same play independently, who owns it?
    • This paradox weakens the argument for a natural right to intellectual property

    Benefits of Intellectual Property Protection

    • Not everyone is altruistic, the allure of wealth encourages speculative work
    • Limited intellectual property protection was recognized as beneficial by US Constitution authors

    Limits to Intellectual Property Protection

    • Giving creators rights to their inventions stimulates creativity
    • Society benefits most when inventions are in the public domain
    • The US Congress limits the time authors and inventors have exclusive rights to their works

    Trademarks and Service Marks

    • Companies use trademarks and service marks to protect brand names, logos, and other identifying features.

    Patent

    • A public document with a detailed description of an invention
    • Provides exclusive rights to the invention for the owner
    • Prevents others from making, using, or selling the invention for 20 years
    • Provides the owner of original work with five key rights:
      • Reproduction
      • Distribution
      • Public display
      • Public performance
      • Production of derivative works
    • Copyright-related industries make up 6% of US gross domestic product

    Key Court Cases and Legislation

    • Gershwin Publishing v. Columbia Artists found Columbia Artists liable for copyright infringements
    • Davey Jones Locker found Richard Kenadek guilty of copyright violation
    • The No Electronic Theft Act criminalized the reproduction or distribution of copyrighted material exceeding $1,000 in value over a six-month period
    • Since 1790, the length of copyright protection and types of intellectual property covered have significantly increased
    • Extending the length of copyright protection was said to have prevented Disney characters from entering the public domain
    • The Copyright Term Extension Act of 1998 was challenged, but the US Supreme Court ruled it constitutional
    • The Supreme Court ruled the CTEA does not create perpetual copyrights

    Act-Utilitarian Analysis

    • The “clean room” option:
      • Rajib expects a 10% raise worth $15,000 annually
      • Unrelated.com experiences a six-month delay costing $3,000,000
    • The “ask right questions” option:
      • Unrelated.com experiences a three-month delay costing $1,500,000
      • Litigation risk (6.25%) costs 5,000,000leadingtoanexpectedlossof5,000,000 leading to an expected loss of 5,000,000leadingtoanexpectedlossof312,500
      • Rajiv receives a 15% raise (112,500)orloseshisjobintheeventoflitigation,resultinginapotentiallossof112,500) or loses his job in the event of litigation, resulting in a potential loss of 112,500)orloseshisjobintheeventoflitigation,resultinginapotentiallossof750,000

    Virtue Ethics Analysis

    • The ”Clean room” option:
      • Provides the team with the opportunity to create a system that meets performance requirements
      • Rajiv sharing his expertise and focusing on performance goals aligns with the characteristics of a good engineer and manager
    • The ”Personally involved” option:
      • Working hard and sharing expertise are characteristics of a good manager
      • Risk of violating a confidentiality agreement presents dishonesty and contradicts the characteristics of a good manager

    Conclusion

    • Kantianism, social contract theory, and virtue ethics favor the “clean room” option
    • Act utilitarianism suggests the ”Personally involved” option, but with risk-averse analysis, the ”Clean room” is favored

    Safe Software Development

    • Companies must protect against unconscious copying
    • Reverse engineering is accepted and regarded as fair use
    • The “clean room” software development strategy is a solution:
      • Team 1 analyzes the competitor’s program and writes a specification
      • Team 2 uses the specification to develop software

    Software Patents

    • The Patent Office refused to grant software patents until 1981
    • US Supreme Court rulings have led to a wide range of software patents being granted
    • Microsoft files thousands of patent applications annually
    • Secondary market for software patents exists with patent-holding companies enforcing patent rights
    • The US Patent Office is criticized for issuing too many patents
    • Companies with new products fear being sued for patent infringement

    Key Differences between Software Copyrights and Software Patents

    • Software copyright protects the expression of an idea, whereas software patent protects the specific, functional process.
    • Obtaining copyright is less expensive and time-consuming compared to obtaining software patents.

    Introduction

    • Access to television shows, music, movies, and computer programs benefits society.
    • The value of intellectual property is much greater than the cost of the media.
    • Illegal copying is widespread and the Internet allows for rapid spreading of copies
    • The question of how to treat intellectual property in light of information technology advancements is important.

    Intellectual Property Rights

    • Intellectual Property refers to creations of the mind such as inventions, literary and artistic works, and names, images, and symbols used in commerce.
    • Intellectual property is not the same as the physical manifestation of the creation.
    • The debate revolves whether the right to own physical property extends to intellectual creations.

    Protecting Intellectual Property

    • Trade secrets are confidential intellectual property that gives a company an advantage.
    • Trade secrets never expire.
    • Reverse engineering is allowed for trade secrets.
    • Trade secrets can be compromised when employees leave a company.

    Trademarks and Service Marks

    • Trademarks identify goods while service marks identify services.
    • Companies establish brand names using trademarks and service marks.
    • Trademarks do not expire.
    • Companies often lose trademarks if the brand name becomes a common noun.
    • Companies use advertising to protect brands, and contact those who misuse them.

    Digital Rights Management (DRM)

    • In 2003, iTunes Music Store used FairPlay, a DRM scheme, to protect music.
    • Consumers could not freely exchange music, and songs were limited to five computers, seven CD copies, and non-Apple devices.
    • Consumers complained about DRM restrictions.
    • European governments pushed Apple to license FairPlay or stop using DRM.
    • In 2007, EMI began offering DRM-free songs.
    • In 2008, Amazon began selling DRM-free music.
    • Apple followed by offering DRM-free music in 2009.

    Microsoft Xbox One

    • Microsoft announced cloud-based gaming for Xbox One in 2013.
    • The user could play any game without a physical disc and automatic updates were included.
    • Sharing a disc would be limited to one user.
    • The second-hand market was restricted.
    • Xbox consoles would have to connect to the internet every 24 hours.
    • Microsoft reversed its decision.
    • No need to connect to the internet.
    • Freedom to lend, rent, buy, and sell discs.
    • A disc must be in the console to play the game.

    Peer-to-Peer Networks and Cyberlockers

    • Peer-to-peer (P2P) networks are transient networks that connect computers with the same networking program.
    • Computers in a P2P network can access files stored on each other's hard drives.
    • P2P networks give users access to data stored in many computers, support simultaneous file transfers, and allow users to identify systems with faster file exchange speeds.

    Safe Software Development

    • Reverse engineering is allowed.
    • Companies must protect against unconscious copying.
    • The "clean room" approach allows one team to analyze a competitor's software and write a specification, and another team to develop software from the specification.

    Software Patents

    • Until 1981, the Patent Office refused to grant software patents.
    • The U.S. Supreme Court ruled in favor of software patents in 1981.
    • Thousands of software patents exist now.
    • Licensing patents is a revenue source.
    • Patent-holding companies buy patents and enforce patent rights.
    • The assumption is that companies will settle out of court rather than go to trial.

    Criticism of Software Patents

    • Too many patents have been granted.
    • The Patent Office may not be aware of prior art.
    • Obvious inventions are often patented.
    • Companies fear patent infringement lawsuits.
    • Software patents are used as legal weapons.

    Key Differences Between Software Copyrights & Patents

    • Copyright protects object program and screen displays, while software patents only protect processes with practical utility.
    • Software copyright is inexpensive and less time-consuming than software patent.
    • Copyright allows reverse engineering, while patents do not.

    Smartphone Patent Wars

    • Nokia sued Apple in 2009 for violating its patents.
    • Apple countersued Nokia.
    • Apple sued Android phone makers, accusing Samsung of copying the iPhone's design.
    • Samsung filed a countersuit.
    • Over 100 lawsuits were filed worldwide resulting in billions of dollars in legal fees.
    • Smartphone makers agreed to cross-license each other's patents in 2014.

    Court Decisions on Software Patents

    • In 2014, the U.S. Supreme Court ruled that implementing an abstract idea on a computer was not sufficient for patent protection.
    • The Alice Corporation v. CLS Bank case led to hundreds of software patents being invalidated.
    • The Williamson v. Citrix Online case invalidated patents that were too broad and indefinite.

    Legitimacy of Intellectual Property Protection for Software

    • Software licenses prevent users from selling or giving away copies.
    • Software licenses are legal agreements.
    • The question is whether society should grant intellectual property protection to software.

    Rights-Based Analysis

    • The "just deserts" argument states that programmers should be rewarded for their work, and they ought to own their programs.
    • Critics argue that labor doesn't necessarily imply ownership.
    • Consumers are shifting from purchasing music to streaming services like Spotify and Apple Music.
    • There are two models for music streaming services: ad-supported (free to the listener) and subscription-based (monthly fee).
    • Video streaming services like Netflix, Hulu, and Amazon Prime have gained popularity, reaching 40% of US homes.
    • Although music streaming services offer convenience, revenue for publishers is significantly lower compared to selling CDs.

    Software Copyrights

    • Copyright protection for software began in 1964.
    • Only the expression of an idea, not the idea itself, is protected by copyright.
    • Companies generally treat source code as a trade secret.

    Violations of Software Copyrights

    • Common violations include copying a program to sell or give away, preloading a program on a computer being sold, and distributing a program over the internet.

    Important Court Cases

    • Apple Computer v. Franklin Computer: Established that object programs are copyrightable.
    • Sega v. Accolate: Determined that disassembling object code to understand technical specifications is fair use.
    • Oracle v. Google: Ruled that Google's copying of 11,500 lines of code from Java API packages violated Oracle's copyright.

    Kelly v. Arriba Soft

    • A photographer, Kelly, sued Arriba Soft for copyright infringement after they used thumbnails of his copyrighted photos in their search engine.
    • The court ruled in favor of Arriba Soft, determining that their use of the images was "significantly transformative" and fair use.

    Authors Guild v. Google

    • Google scanned millions of books, creating a searchable database of all words.
    • The Authors Guild and publishers sued Google for copyright infringement, but the court dismissed the lawsuit, deeming Google Books a fair use of copyrighted works.

    Mashups

    • Mashups combine elements from different songs, such as instrumental tracks and vocal tracks.
    • While audio collages are often considered fair use due to their transformative nature, the legality of using copyrighted music in an "A vs B" mashup is less certain.

    Digital Rights Management (DRM)

    • DRM aims to protect the rights of intellectual property owners by employing techniques like encrypting digital content and marking it as copy-protected.
    • The DMCA is a significant revision of copyright law, extending copyright protection and making it illegal to circumvent encryption schemes or copy controls on digital media.

    Secure Digital Music Initiative (SDMI)

    • This consortium aimed to create copy-protected CDs and secure digital music downloads.
    • Their "digital watermarking" scheme failed, primarily due to the rapid growth of internet copying and weaknesses in the encryption.

    Sony BMG Music Entertainment Rootkit

    • Sony BMG shipped CDs with a DRM system, "Extended Copy Protection," that prevented users from ripping tracks to MP3 format or making more than three backup copies.
    • The DRM relied on a "rootkit," which hid files and processes, causing significant public backlash.
    • Sony BMG eventually stopped production and compensated consumers.

    Criticisms of Digital Rights Management

    • Critics argue that technological DRM solutions are destined to fail.
    • DRM can undermine fair use and potentially reduce competition.
    • Some schemes hinder anonymous access to content.

    Safe Software Development

    • "Clean room" development strategy aims to protect against unconscious copying by separating teams responsible for analyzing competitor's programs and developing software.

    Software Patents

    • Software patents were initially denied but gained recognition in 1981.
    • Microsoft, among others, has actively pursued software patents, generating significant revenue from licensing them.
    • "Patent trolls" acquire patents and enforce patent rights, often leading to legal settlements with companies fearing costly litigation.

    Criticism of Software Patents

    • Critics argue that many insignificant or obvious inventions are granted patents, hindering innovation due to the threat of patent infringement lawsuits.

    Key Differences between Software Copyrights and Patents

    • Software copyrights protect the expression of a program's code, while software patents protect the underlying process or method.
    • Obtaining copyrights is inexpensive and quick compared to obtaining patents.
    • Reverse engineering is allowed for software protected by copyright, but not for patented software.

    Smartphone Patent Wars

    • Nokia and Apple engaged in lengthy legal battles over patent infringement, followed by similar disputes involving other smartphone makers.
    • These disputes led to billions of dollars in legal expenses.

    Alice Corporation v. CLS Bank

    • The US Supreme Court ruled in 2014 that simply implementing an abstract idea on a computer is insufficient for patent protection; an "inventive concept" is required.
    • This decision has been used to invalidate hundreds of software patents.

    Williamson v. Citrix Online

    • This case established a precedent for striking down patents that are too broad and indefinite.

    Legitimacy of Intellectual Property Protection for Software

    • The text presents a discussion about whether intellectual property protection, like software patents and copyrights, is appropriate for software.

    Rights-Based Analysis

    • Argues that programmers should be rewarded for their hard work and deserve ownership of their creations.
    • However, it is challenged by questioning the inherent link between labor and ownership.

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    Ethics for the Information Age Chapter 4

    Description

    Explore the evolution of legal online access to entertainment and the protection of software copyrights. This quiz covers the impact of digital rights management, the shift towards streaming services, and how software copyright laws guard against violations. Test your knowledge on this critical aspect of digital media and software industries.

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