CISB 412 Social and Professional Issues

Understanding Intellectual Property

Reference• Materials used in this presentation are extracted mainly from

the following texts, unless stated otherwise.

Michael J. Quinn “Ethics for the Information Age”, 3rd edition. Pearson 2009

Learning Outcomes

• At the end of this lesson you should be able to– Identify issues that come with networking especially

the use of world wide web.– Apply the ethical principles on the issues to establish

morality of the action

Intellectual Property

Intellectual property or IP refers to certain kinds of exclusive rights to intellectual capital, some forms of which can expire after a set period of time, and other forms of which can last indefinitely

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What Is Intellectual Property?

• Intellectual property: any unique product of the human intellect that has commercial value.

• Refers to the creation of the mind.• Consists of human knowledge and ideas.

– Books, songs, movies– Paintings, drawings– Inventions, chemical formulas, computer

programs

Intellectual Property• Common types of intellectual property include conflicting areas of law:

– Copyrights, which give the holder some exclusive rights to control some reproduction of works of authorship, such as books and music, for a certain period of time.

– Patents give the holder an exclusive right to use and license use of an invention for a certain period, typically 20 years.

– Trademarks are distinctive names, phrases or marks used to identify products to consumers.

– Trade secrets, where a company keeps information secret, perhaps by enforcing a contract under which those given access to information are not permitted to disclose it to others.

• These rights, conferred by law, can be given, sold, rented (called "licensing") and, in some countries, even mortgaged, in much the same way as physical property. However, the rights typically have limitations, sometimes including term limits and other exceptions

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Copyright• Gives the holder some exclusive rights to

control some reproduction of works of authorship, for a certain period of time

• Provides owner of an original work five rights– Reproduction– Distribution– Public display– Public performance– Production of derivative works

Patent

• A public document that provides detailed description of invention

• Provides owner with exclusive right to the invention

• Owner can prevent others from making, using, or selling invention for 20 years

Trademark, Service Mark

• Trademark: Identifies goods• Service mark: Identifies services• Distinctive names, phrases or marks used to identify

products to consumers• Company can establish a “brand name” (johnson &

johnson’s)• Does not expire• If brand name becomes common noun, trademark

may be lost (aspirin, yo yo, thermos, escalator)

Trade Secret

• Where a company keeps information secret, perhaps by enforcing a contract under which those given access to information are not permitted to disclose it to others

• Confidential piece of intellectual property that gives company a competitive advantage (strategic plans, customer lists)

• Never expires• Not appropriate for all intellectual properties (movie)• Reverse engineering allowed (coca-cola)• Maybe compromised when employees leave firm

Fair Use

• Concept• Sony v. Universal City Studios• RIAA v. Diamond Multimedia Systems Inc.• Digital Technology and Fair Use

Fair Use Concept

• Sometimes legal to reproduce a copyrighted work without permission

• Courts consider four factors– Purpose and character of use– Nature of work– Amount of work being copied– Affect on market for work

Questions?