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302 unit3 ip


Information Readiness + Broadband Penetration = Economic Development

Information Readiness + Broadband Penetration = Economic Development

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  • NYT article: Debate on Intellectual Property WIRED article: Pirates of Kiev That is, why bother with all the effort in creating something new, if anyone / everyone can just copy it? 95% of CDs / DVDs produced in the Ukraine are illegal. MPAA estimates Russia / Ukraine jointly accounted for $250 million in lost sales, due to piracy.
  • “ The filing of a successful patent makes the inven-tion public” (less secrets, via freedom of information) = benefit to the community “ However, patent protection may retard technological development.” “ A well-entrenched firm may suppress inventions that could seriously shake-up existing routines, or even threaten the firm’s existence.” “ The danger of the patent system being used to stifle competition has not gone unnoticed by the federal government.” (Patent WMDs)
  • Discuss Compact Disc redbook standard Show history of compact disc clip Show Cardozo Law School clip on IP
  • Double-edged Sword: “ Positive” IP rights Software Transportation techno-logies (Segway, hybrid bus, etc.) Telecommunication technologies (HipTop, Bluetooth, iPhone) “ Negative” IP rights Ongoing frenzy to patent any and every tech-nological advance, business model / methods Undermine innovation (ie: chilling effect) Unnecessarily restrict the flow of ideas / diffusion of technological advances. Jeff Bezos’ “1-Click” patent Microsoft British Technology Group software update case British Telecom hyperlinking case
  • Amazon “1-Click” Patent Jeff Bezos, CEO Only company that lets customers purchase items with a single click Licenses this technology to Apple and others Successfully sued B&N B&N claimed the nature of e-commerce dictated a path that would inevitably lead most companies to “1-Click” systems, much like how computers interfaces inevitably went from command-line to GUI, and how Apple couldn’t sue MS. Judge didn’t buy that argument.
  • Is Bezos right or wrong? Shameless exploitation of a “common sense” technology? He got there first Jupiter Communications study: 27 % of online buyers abandoned at least one order before completion, because experience was “too exasperating”. Many perspectives to approach this issue: ethically, technologically, legally, etc. Bezos, cont. “ Despite the call from many thoughtful folks for us to give up our patents unilaterally, I don't believe it would be right for us to do so .” “ We’ve spent thousands of hours to develop our 1-Click process.” Ecommerce Times: Apple Licenses Amazon 1-Click Technology Any thoughts?
  • Microsoft “2-click” Patent For handheld systems “ now-patented technology is to make it easier for users to launch applications by either double-clicking a button or holding one down.” Microsoft currently considering seeking payments from “those who employ technologies covered in the patent”, When Two Clicks Equal One Patent
  • British Technology Group (BTG) Famous for winning 1989 case against Pentagon, over hovercraft patents Now claims six patents on “web-enabled software update technology”, UK Firm Patents Software Downloads Currently suing Microsoft and Apple over this Also suing B&N, Amazon, and Netflix, on unrelated patent issue Antivirus companies (Norton, Symantec, etc.) could be next “ BTG claims Microsoft's and Apple's operating systems, and MS Office products, infringe patented technologies. ...It seeks unspecified royalty payments for past infringements and injunction against future uses of its software.” BTG Sue Apple and Microsoft Over Software Downloads
  • British Telecom Hyperlinking case BT claimed to hold patent on hyperlinks Asserted that “every single hyperlink used on every U.S. website was utilizing intellectual property the company patented in 1976 and should therefore be subject to a licensing fee.” Sargent patent Case dismissed; deemed without merit WIRED: Judge Tosses BT Hyperlink Case Sargent patent: “ a system that allows text sent from a central computer to a terminal to include non-visible data, such as the programming code used in hyperlinks.” What if it wasn’t dismissed? How would this affect the Internet? How might this inhibit technological change / diffusion of technology?
  • Sometimes Patents are just Absurd U.S. Patent 5443036: Method of Exercising a Cat “ A method for inducing cats to exercise consists of directing a beam of invisible light produced by a handheld laser apparatus onto the floor or wall or other opaque surface in the vicinity of the cat, then moving the laser so as to cause the bright pattern of light to move in an irregular way fascinating to cats, and to any other animal with a chase instinct.”
  • IP Rights, cont. Current International IP rights based on 1994 Trade-Related aspects of Intellectual Property Rights (TRIPs) Computer software, pharma-ceuticals, biotech, entertainment All industries that stand to gain [a lot] from such protection More on ICIPR report “ If we cut off imitation strategies for developing countries, we are drastically narrowing the options they have to reach an economic takeoff” John H. Barton, Stanford law school Prof & ICIPR Chair “ TRIPs was a matter of powerful companies with intellectual property concerns essentially dictating trade policy” Keith E. Maskus, U. of Colorado trade expert U.S. stands most to gain from strong IP laws Developing countries stand little to gain, more $$ siphoning away from their economies
  • U.S. has a history of ignoring IP rights 19th century, U.S. offered IP rights only to U.S. citizens and companies Dickens’ A Christmas Carol prices: $2.50 in England $0.06 in U.S. Crazy, but true, due to “nation building” NYT: “U.S. seems to be ignoring its own swashbuckling heritage”


  • 1. Diffusion of Technology • Volti’s notion of patents encouraging / inhibiting technological diffusion • Examples of each • Current issues / views about intellectual property
  • 2. What are Intellectual Property (IP) rights? • Patents, copyrights, trademarks • “Temporary grants of monopoly intended to give economic incentives for innovative activity” • Without IP rights, there would likely be less motivation to invent, create, and innovate
  • 3. Volti on IP rights (91-95) • “…a legitimate desire” • If [a business] has developed a novel technology, it wants the benefits of that technology to accrue only to itself, and not to others” • “The filing of a successful patent makes the inven- tion public” • Licensing
  • 4. 29-Jan-15
  • 5. 29-Jan-15
  • 6. Right or Wrong?
  • 7. 29-Jan-15
  • 8. 29-Jan-15
  • 9. U.S. Patent 5443036
  • 10. International Comm. on IP Rights • Recent report released on global IP rights • Recommended WTO treaty on IP be made more flexible: – Developing nations be allowed to adopt international IP rights at their own pace – More reverse engineering – More DRM encryption cracking
  • 11. 29-Jan-15
  • 12. Volti & IP • “Whether the patent system serves as stimulus or hindrance to technological advance is a matter of considerable debate, and one not likely ever to be settled.” (92) • “…it is virtually impossible to determine if its advantages outweigh its disadvantages, or vice versa.” (92)