Your SlideShare is downloading. ×
DMCA & US Laws Impact on Global Commerce
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.


Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

DMCA & US Laws Impact on Global Commerce


Published on

Published in: Education, Technology

  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. DMCA & US Laws Impacton Global Commerce
  • 2. HKUST Business School2Digital Millennium Copyright Act Two purposes of ACT First, to bring USA into compliance withinternational IP Law related treaties (e.g., WTO) Second , extend / augment US copyright law Three areas of new laws under DMCA “safe harbor” for ISPs” Protection of Digital Rights Management(limitations on number of copies allowed) Circumvention of Copy Protection Prohibited
  • 3. HKUST Business School3DMCA is US only Law, but … The restrictions on cracking copy protectionaffect more than USA citizens and companies Can apply to ANY firm worldwide that doesbusiness within the USA (can be fined in USA) Apply to ANY individual within USA (even just ontemporary travel) for acts even outside USA Loss of US Market Sales for Software reduceincentives to produce new innovations Costs / risk of creation of Software increase
  • 4. HKUST Business School4Example of DMCA Global Impact Software developer creates code that cancrack encryption, and distributes it free on theinternet for anyone to download This is illegal distribution of code which enables orencourages others to break encryption, so criminaloffense in USA under the “new” DMCA laws Foreign citizen not subject to USA laws whileoutside USA for actions committed outside USA But, while traveling to USA for a conference, he isarrested for violation of DCMA while on US soil.
  • 5. HKUST Business School5Academic Researchers GivingUp Some academic researchers in the USA aswell as outside the USA are giving up onresearching encryption breaking algorithms Risk of criminal sanctions for academic research Difficulty of publication, as journals might also besubject to government penalties and even criminaloffenses for the officers and directors of journals Difficulty of any potential future commercialization Encryption breaking research still ongoing forsecret military applications, but limited
  • 6. HKUST Business School6Objections to DMCA in USA Restricts Free Speech – First Ammendment Restricts Innovation and Research Inconsistent with public policy goals of copyright Criminalizes relatively “innocent” behavior Eliminates some aspects of Fair Use Defense Parody and Satire Academic research or educational usage Software compatibility and modifications
  • 7. HKUST Business School7Privatization of Information Information which was previously not able tobe copy protected might be able to beprotected via encryption under DMCA rights Provide limited access to data via screen only Encrypt database to prevent easy access to data Increase cost of replication of data which wouldotherwise not be copy protected Underlying data not visible or displayed maybe protected via encryption using DMCA
  • 8. HKUST Business School8Restrictions on Global Commerce Provides protections under US law neveranticipated in original copyright or patent law Global businesses have offices in USA, so subjectto application of US laws for their firms actions Restricts competition more than copyright orpatent, and US laws being effectively exported Proprietary game maker for game consolessues emulation software maker for iMAC. Seeking $25k USD per unit for DMCA violation
  • 9. HKUST Business School9DMCA and Entertainment Criminal offense to break any form of copyprotection, so can not copy movie on DVD This would include making copy for iPod Making backup of DVD impossible Even makes illegal backing up software whichpreviously was expressly permitted by law Future digital rights management and digitalwatermark identification issues
  • 10. HKUST Business School10DCMA and Product Innovations Computer printer used chip in tonercartridges which enabled printer to use toner Both toner chip and printer chip have encryptedcode within them to restrict ability to copy code Violation of DMCA claimed for producer ofcompatible toner cartridge due to otherwise legalreverse engineering of products Internet access and validation plus chipencryption as new form of product protection
  • 11. HKUST Business School11Beyond DMCA: USA Regulations USA is the dominant hosting country forinternet based businesses and sites All names are USA names US names include .com, .us, .bis, .org, .gov, .edu,and almost any other name not assigned toanother country to manage domain names USA laws apply to any disputes involvinglegality of domain names and rights Domain management outsourced to private firm
  • 12. HKUST Business School12Much of “Cyberlaw” is US Based Domain names under US laws jurisdiction Many websites for ecommerce hosted in US Even for businesses not owned by US companies Most of litigation in cyberspace overintellectual property rights has taken placewithin the USA over the past 20 years Easier defenses for firms infringing others rights Less formal government controls on internet underUS law than under laws of many other countries
  • 13. HKUST Business School13Cyberspace Trademark Problems Same name registered in different states; markets don’t overlap Then, one firm goes online, and takes other firm’s customers E-Commerce is global in reach – so who has jurisdiction? National registration of Trademarks in USA Interstate commerce regulation clause of the consitution Might not overrule states rights for “local” brand issues Domain names and Trademark issues Cyber Squatting and Cyberspace Blackmail Increasing importance of National Trademark registration,and potentially international issues, although limited to USAin disputes over Domain name registrations for .com names