Lecture 4: Intellectual Property (IP) - UCCD 3053 PDF

slidesmania.com Lecture 4 INTELLECTUAL PROPERTY (IP) UCCD 3053 IT PROFESSIONAL ETHICS  slidesmania.com CONTENTS 01 02 03 Nature of IP Propriety Rights - Protection of trad...

slidesmania.com Lecture 4 INTELLECTUAL PROPERTY (IP) UCCD 3053 IT PROFESSIONAL ETHICS  slidesmania.com CONTENTS 01 02 03 Nature of IP Propriety Rights - Protection of trade Copyright secrets / confidential information 04 05 06 MYIPO Patent for Trademarks computer-related inventions  slidesmania.com 01 NATURE OF IP Scenario 1 slidesmania.com One evening Ms. A stays up all night in a café writing Julius Caesar while Mr. B goes to a party. The next morning Ms. A returns to work but carelessly leaves a copy of Julius Caesar in the café. Mr. B stops for a cup of cappuccino, sees the manuscript, transcribes it, and walks out the door with a copy of the play in his possession, leaving the original copy where it was. ❑ Did Mr. B steal Julius Caesar? ❑ Ms. A still have her physical copy of the play, but she has lost exclusive control over who will read, perform, or hear the play. ❑ If you want to call this stealing, then stealing in the sense of intellectual property is quite different from stealing a physical object. ❑ When you steal someone’s car, they can’t drive it anymore. When you steal someone’s joke, both of you can tell it.  slidesmania.com Intellectual Property At the beginning of a Britney Spears concert, thousands of teenagers hold up their cell phones so their friends can hear the concert, too. Does an entertainer have the right to control who hears a live performance of her music? About 95% of Microsoft products purchased in some countries are counterfeit products made by entrepreneurs. Microsoft does not receive revenues from these sales; it calls the entrepreneurs “software pirate”. Should Microsoft have the right to charge licensing fees to those individuals and institutions using its software?  slidesmania.com Intellectual Property ❑ As a society we benefit from access to high-quality music, videos, computer programs, and other products of the human intellect. ❑ The value of these intellectual properties is much higher than the value of the media on which they are distributed. ❑ Creating the first copy is very expensive. Duplicates cost almost nothing. There is a strong incentive for people to make unauthorized copies. ❑ When this happens, producers of intellectual property do not receive all of the payments the law says they are entitled to  slidesmania.com Intellectual Property ❑ Intellectual property is any unique product of the human intellect that has commercial value. ❑ Examples of intellectual property are books, songs, movies, paintings, inventions, chemical formulas, and computer programs. ❑ It is important to distinguish between intellectual property and its physical manifestation in some medium. ❑ If a poet composes a new poem, the poem itself is the intellectual property, not the piece of paper on which the poem is printed.  slidesmania.com Intellectual Property Limits to IP Protection ❑ It is possible for you to be rewarded for your creativity without the new device ever reaching the public. If you sell an exclusive license for your mousetrap to a company that dominates the mousetrap market. The company chooses not to manufacture the new mousetrap because – for whatever reason – it can make more money selling the existing technology. In this situation you and the company benefit, but society is deprived access to the new, improved technology. ❑ There is a conflict between: ▪ Rewarding the creators of IP by giving them exclusive rights to their ideas, and ▪ The need to disseminate these ideas as widely as possible to benefit the society much further. ❑ Today’s practices: Hence, the government usually grant authors and inventors exclusive rights to their writings and discoveries, but only for a limited period of time.  slidesmania.com Intellectual Property ❑ Today, there are 4 different ways in which individuals and organizations protect their IP: Copyright Protection of Trade Secrets/Confidential Information Patent for Computer Related Inventions Trademarks  slidesmania.com Intellectual Property Benefits of Intellectual Property Protection ❑ New ideas in the form of inventions and artistic works can improve the quality of life for society. ❑ If a person has the right to control the distribution and use of a piece of an IP, there are many opportunities for that person to make money. ❑ For example, ▪ suppose you build a better mousetrap, and the government gives you the ownership of this design. ▪ You may choose to manufacture the mousetrap yourself. Anyone who wants the better mousetrap must buy it from you, because no other mousetrap manufacturer has the right to copy your design. ▪ Alternatively, you may choose to license your design to other manufacturers, who will pay you for the right to build mousetraps according to your design.  slidesmania.com Benefits of IP ❑ You could license your IP and lend it to various businesses in exchange for a fixed income or reasonable royalties. ❑ You could also reap benefits from selling your IP products and services for a fixed amount. ❑ Selling your IP can raise your profits and even improve your market share  slidesmania.com 02 PROPRIETY RIGHTS: COPYRIGHT  slidesmania.com Proprietary Rights (Copyright) ❑Provides owner of an original work five rights: Reproduction – The right to reproduce the copyrighted work Distribution – The right to distribute copies of the work to the public Public display – The right to display copies of the work in public Public performance – The right to perform the work in public Production of derivative works – The right to produce new work derived from copyrighted work  slidesmania.com Proprietary Rights (Copyright) ❑Copyright owners have the right to authorize others to exercise these five rights with respect to their works. ❑For example, 1. The owner of a copyright may sell a license to a high school drama club that wishes to perform it. 2. A radio station broadcasts a song, it must pay the songwriter(s) and the composer(s) through a performance rights organization such as Recording Industry Association of Malaysia (RIM), and its subsidiary Public Performance Malaysia (PPM). ❑Areas Protected: Industries that can be protected by copyright laws include movie, music, software and book publishing  slidesmania.com Proprietary Rights (Copyright) Fair Use Concept ❑ Legal Exceptions ❑ Courts consider 4 factors: o Purpose - Purpose and character of use –academic/commercial The purpose and character of the use, including whether such use is of commercial nature or is for nonprofit educational purposes o Types -Nature of work – nonfiction/arts Using material from primarily factual works is more likely to be fair than using purely fictional works. o Amount - Amount of work being copied – partly/wholly Borrowing small bits of material from an original work is more likely to be considered fair use than borrowing large portions o Market Value -Affect on market for work – outdated/marketable Uses that harm the copyright owner's ability to profit from his or her original work by serving as a replacement for demand for that work are less likely to be fair uses.  slidesmania.com Copyright Situation of a Fair Use case ❑ Education use – accept ❑ Nonfiction or fiction - not indicated ❑ Partly – accept ❑ Market value – not indicated  slidesmania.com Copyright Situation of a Fair Use case Quoting for purposes of reporting the news or criticizing or commenting on a particular work of art, writing, speech or scholarship. ❑ Noncommercial – accept ❑ Fiction/arts – no ❑ Partly – accept ❑ Marketable – no * For reporting usually, it is acceptable.  slidesmania.com Copyright What is not Fair Use? Using a photograph or other image to illustrate a newsworthy story (because the subject of the story is newsworthy it does not make the image newsworthy). ❑ Commercialize – not mention ❑ Arts – not acceptable ❑ Wholly – not acceptable ❑ Marketable – not indicate *Unlikely acceptable.  slidesmania.com Copyright What is not Fair Use? Photostat musical song book for non-profit organization, clubs, community, church for daily usage. ❑ Noncommercial – accept ❑ Arts – not acceptable ❑ Wholly – not acceptable ❑ Marketable – not acceptable  slidesmania.com Copyright Areas of usage which without owner’s Permission ❑ Academic Research ❑ Review or criticism ❑ Report current events ❑ Judicial proceeding (courts judgement)  slidesmania.com Copyright What is infringement? ❑ Full usage - use of whole or part of an image without permission; ❑ Limit of license - use beyond the scope of a license; ❑ Modification - adapting an image without permission (art rendering, collage); ❑ Reproduce - asking another photographer to recreate the image.  slidesmania.com Copyright Who is responsible for the infringement? ❑ Infringed body - the company that directly infringed; ❑ Participant - employees who participated in the infringement or should have supervised; ❑ Publisher - anyone who publishes the infringing image whether they had knowledge or not.  slidesmania.com Copyright Copyright Tenure ❑ Standard Period, the general rule is that it last for the lifetime of the creator and continues 50 years after his death. ❑ Period start at publication, in the case of cinematograph films, sound recordings, photographs, the 50 years is counted from the date of publication or fixated in a sound recording.  slidesmania.com 03 PROTECTION OF TRADE SECRETS / CONFIDENTIAL INFORMATION  Trade Secrets slidesmania.com ❑A trade secret is a confidential piece of intellectual property that provides a company with a competitive advantage. ❑Examples of trade secrets include formula, processes, proprietary designs, strategic plans, customer lists, and other collections of information. ❑Right to protect trade secret: The right of a company to protect its trade secrets is widely recognized by the governments around the world. ❑Implement protection: In order to maintain its rights to a trade secret, a company must take active measures to keep it from being discovered. ❑For example, companies typically require employees with access to a trade secret to execute a confidentiality agreement  slidesmania.com Trade Secrets Description of Trade Secret ❑ Confidential piece of intellectual property that gives company a competitive advantage. ❑ Never expires. ❑ Not appropriate for all intellectual properties. e.g song, ideas, arts have to make public known. ❑ Reverse engineering allowed, copycat (working back the product). ❑ May be compromised when employees leave firm, he reveals the secret to others.  slidesmania.com Trade Secrets Problem in keeping it secret ❑ Signing Contract - Can have confidentiality clauses in employment contracts but remedies for breach cannot reverse the disclosure of invention. ❑ Reverse Engineering - Cannot prevent competitor independently developing invention on their own and then exploiting invention. ❑ Patent issue - Competitor may prevent you from working invention if they receive a patent for the invention.  slidesmania.com Trade Secrets ❑ Trade secret Vs Patent: A patent is quite different from a trade secret because a patent is a public document that provides a detailed description of the invention. ❑ What are the patent rights: The owner of the patent can prevent others from making, using, or selling the invention for the lifetime of the patent which is currently up to 20 years; 5 years for pharmaceutical products and agricultural chemicals (this, however, can be extended). ❑ What happen when patent expired: After the patent expires, anyone has the right to make use of its ideas.  slidesmania.com 04 PATENTS  slidesmania.com Patent (3 main Pts) ❑ A patent is granted for an invention that meets three basic tests: ✓ Original -it is novel, no one else has invented the same thing before ✓ Purpose - it has utility or a useful purpose ✓ New - it is not obvious, your invention is not obvious to someone who is in the same industry  slidesmania.com Patent for Computer Related Inventions ❑ A patent is a way government provides an inventor with an exclusive right to a piece of intellectual property. ❑ Trade secret Vs Patent: A patent is quite different from a trade secret because a patent is a public document that provides a detailed description of the invention. ❑ What are the patent rights: The owner of the patent can prevent others from making, using, or selling the invention for the lifetime of the patent which is currently up to 20 years; 5 years for pharmaceutical products and agricultural chemicals (this, however, can be extended). ❑ What happen when patent expired: After the patent expires, anyone has the right to make use of its ideas. 31  slidesmania.com Patent ❑ The term patent usually refers to a right granted to anyone who invents or discovers any new and useful process, machine, article of manufacture, or any new and useful improvement thereof. ❑ Examples of particular species of patents for inventions include biological patents, business method patents or software patents.  slidesmania.com PROPRIETARY RIGHTS PATENT ❑ The term patent usually refers to a right granted to anyone who invents or discovers any new and useful process, machine, article of manufacture, or any new and useful improvement thereof. ❑ Examples of particular species of patents for inventions include biological patents, business method patents or software patents. 33  slidesmania.com 05 TRADEMARKS  slidesmania.com Trademarks ❑ A trademark is a word, symbol, picture, sound, color, or smell used by a business to identify goods. ❑ A service mark is a mark identifying a service. ❑ By granting a trademark or service mark, a government gives a company the 1. right to use it and 2. the right to prevent other companies from using it. ❑ Through the use of a trademark, a company can establish a “brand name”. ❑ Society benefits from branding because branding allows consumers to have more confidence in the quality of the products they purchase.  slidesmania.com Trademark  slidesmania.com Is any sign which can distinguish the goods and service of a trader from those of another. This could also include words, logo and shapes. 800px-McDonald%27s_Logo  TRADEMARKS slidesmania.com ❑ Trademarks became common noun: When a company is the first to market a distinctive product, it runs the risk that its brand name will become a common noun (or verb) used to describe any similar product. When this happens, the company may lose its right to exclusive use of the brand name. Some trademarks that have become generic are “aspirin”, “escalator”, “thermos”, “maggi”, “xerox”. ❑ Prevention: Companies strive to ensure their marks are used as adjectives rather than nouns or verbs. One way they do this is through advertising or by contacting those who are misusing them. For example, Adobe has responded to Web posts about “photoshopping images” by posting this follow-up message: “The Photoshop trademark must never be used as a common verb or as a noun. The Photoshop trademark should always be capitalized and should never be used in possessive form, or a slang term”. 38  slidesmania.com 06 MYIPO  slidesmania.com Official Portal of Intellectual Property Corporation of Malaysia  slidesmania.com Trademarks Act 2019 Patents Act 1983 Copyright Act 1987 Industrial Designs Act 1996 Layout Designs of Integrated Circuits Act 2000 Geographical Indications Act 2000 slidesmania.com  slidesmania.com Thank You