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Introduction to Intellectual
      Property Rights


         Olli Pitkänen
           D.Sc, LL.M.
Intellectual Property Rights (IPR)

• It is possible to own physical objects
• One cannot own (have title to) intangible objects like
  software, information, or multimedia
• They can be objects of intellectual property rights:
    – copyright,
    – patent,
    – trademark,
    – design right, etc.
• Most intellectual property rights don’t actually ensure
  that the right-holder may do something, but the right-
  holder may forbid others from doing something
                                                                      2
                                                      Olli Pitkänen
Copyright

• A creative work is protected by
 copyright
   – automatic: no need to file applications
   – a copyright notice, © -mark are optional
• Originally for literature and arts, but
  also very important protection of e.g.
  computer software although patents in
  general have become more important
• Governed by national laws, EU
  directives, international treaties
• Copyright does NOT protect facts,
  ideas, plot, algorithms, etc., but merely
  the original expression                       Olli Pitkänen
                                                                3
Economic Rights

• exclusive right to gain from the creative work, e.g.
    – to copy,
    – to modify
        • esp. in the USA, more unclear in Europe,
    – to sell
        • only the first sell, copyright exhaustion,
    – to display the work
• can be assigned and licensed
   – e.g. publishing contracts, end-user licenses




                                                                         4
                                                         Olli Pitkänen
Moral rights

• Protect creative people’s personality and honor
• Different rights in different countries/jurisdictions, e.g.
    – right to proclaim or disclaim authorship
        • to the extent that is common and good practice
    – right to object any modification that would be
      injurious to author’s reputation
    – right to access the work
• Moral rights cannot be assigned at large
• Important also for non-profit creators
• Less important in software
                                                                          5
                                                          Olli Pitkänen
Limitations to Copyright

In Europe (esp. Finland):
    – Private use (not applicable to SW)
    – Citation
    – Reprint in press, etc.
In the USA
    – Fair use: criticism, news reporting, teaching,
      research,…
• Limited (!) time period: copyright lasts for the life of the
  author plus 70 years
    – 30 years old person creates a computer program,
      dies at the age of 80, the copyright lasts 120 years
      – quite enough!                                                    6
                                                         Olli Pitkänen
Intermediary liability

• Lots of unauthorized copies on the Net
• In principle, operators, service providers and other
  intermediaries can easily be liable for illegal information
    – High risks, prevent useful services
• Legislator has met them halfway: safe-harbor if the
  intermediary has only a passive role as a mere conduit,
  a cache, or a hosting service:
    – Notice and take down procedure
• Web 2.0: Liability on user generated content?
    – Currently mixed court cases on whether service
       provider is liable on youtube-styled content
                                                                         7
                                                         Olli Pitkänen
Linking

• Normal linking does not infringe copyright
    – <a href="http://www.aalto.fi”>Aalto</a> is ok
• However, for example, embedded deep linking which
  circumvents paywalls, ads, or other business models,
  may violate copyright
    – Mixed court cases




                                                                   8
                                                   Olli Pitkänen
Copyright in Ambient Intelligence

• Future scenarios show that the adaptation of content
  based on the device properties, context, user
  preferences, and so on will be very important
• Adaptation is useful and required.
• However, a copyright-owner has sometimes a right to
  object modifications, e.g. to protect valuable brands.
     – E.g. in the USA exclusive right in derivative works
• Also, modification may pre-empt safe harbour rules:
  operators and other intermediaries become widely
  liable for illegal content
• Potential conflict  balance is needed.
                                                                      9
                                                      Olli Pitkänen
Legal and technical protection

            Content: information etc.
            • copyright
            • other IPR

                 Technical protection


             Legal protection of
             technical protection


                    Other rights, e.g. privacy,
                    freedom of speech
                                                        10
                                        Olli Pitkänen
Copyright Law Complex?
One single
amendment into
the Finnish
Copyright Act (EV
100/2005 vp)
included these
internal
references




                                                    11
                                    Olli Pitkänen
Database Protection

• Valuable databases that are not creative  copyright
  is not applicable  they used to be outlaws
• EU directive + national laws
   – nonexistent in the USA and most other countries
• Requires a substantial investment in obtaining,
  verifying or presenting the contents of the database
• Exclusive right to prevent copying (extraction and/or
  re-utilization) of the whole or of a substantial part
• It does NOT protect single data items in the DB
• Lasts 15 years from completion or publication
                                                                       12
                                                       Olli Pitkänen
Patent ≠ Copyright

• Creative work is protected by copyright
    – original, expressed, creator’s
      personality
• Inventions are protected by patents
    – in the USA: novel, useful, nonobvious
    – in Europe: new, an inventive step, and
      susceptible of industrial application




                                                               13
                                               Olli Pitkänen
General Criteria for Patents

• New / novelty
    – a new invention, different from prior art
    – do not publish your invention before
      applying for patent!
• Nonobviousness / involve an inventive step
    – unexpected or surprising new results
• Usefulness / susceptible of industrial
  application
    – the invention must work,
    – e.g a perpetual motion machine would be
      novel, but it does not work
                                                                  14
                                                  Olli Pitkänen
Types of Inventions that Do Not
         Qualify for Patent
• Mathematical formulas
• Scientific theories
• Laws of nature
• Pure indications of intelligence
• Any invention that is not repeatable, not described in
  detail
• Note: different rules in different countries
• How about computer programs as such?


                                                                      15
                                                      Olli Pitkänen
Who is the inventor?

• A person who contributes significant input into an
  invention
• Several people invent in cooperation, they’ll get the
  patent together
• Several people invent unaware of the others, first of
  them gets the patent
    – in the USA: first to invent
    – in the rest of the world: first to file
• In employment, employer may redeem the patent

                                                                       16
                                                       Olli Pitkänen
Application and Publicity

• It is necessary to apply for a patent
• Good application is difficult to prepare
• It’s often a good idea to use a patent attorney or an
  agent
• Application becomes public ⇒ competitors can view it
• Sort of trade: the inventor discloses the invention,
  the society grants a temporal monopoly
    – Compare with the copyright system: copyright is
      achieved automatically, no need to disclose
      anything
    – Sometimes disclosure benefits others, but hardly
      e.g. in the software industry
                                                                    17
                                                    Olli Pitkänen
Exclusive Rights

• Territory: the patent is valid only in the countries where
  it was granted
     – Compare with copyright: automatically worldwide
       coverage
• Time period: at most 20 years after the application
  date, annual increasing fees
     – Copyright: lifetime + 70 years
• In many countries, covers only professional use
     – Copyright: any use



                                                                       18
                                                       Olli Pitkänen
Internationality

• In general, patents are valid only in the countries they
  were granted
   – 12 months period to extend the application to other
     countries
• Separate application in each country
   – PCT and EPC help in filing applications in several
     countries




                                                                       19
                                                       Olli Pitkänen
Trade Secret

• Trade, business, and professional secrets and other
  corresponding business information that is kept secret
  and the revelation of which would be conductive to
  causing financial loss.
• Customer lists, price lists, systems of work, computer
  systems, etc. may be included in trade secret.
• Espionage is illegal.
• Non-Disclosure Agreement (NDA): it is often useful to
  make an agreement with business partners, customers,
  etc, that they must not disclose your trade secrets.


                                                                   20
                                                   Olli Pitkänen
Trade secrets and employment

• The law stipulates that an employee may not revel
  trade secrets during the employment.
• Using an NDA, the employer may also restrict the
  freedom of an employee for six months at most after
  the end of the employment relationship, or for one year
  at most in case the employee has got a reasonable
  compensation for the covenant.




                                                                      21
                                                      Olli Pitkänen
Trademark

• A distinctive word, phrase, logo, graphic
  symbol, or other device to identify the source   Hyvä ruoka,
  of a product or service, brand                   parempi mieli

    – to distinguish a manufacturer’s or
       merchant’s products from anyone else’s
• In Finland, can be registered or established
                                      ®
• In the USA, first use or registration



                                                                      22
                                                      Olli Pitkänen
Trademark classes

• Trademarks are registered in one or several classes
   – E.g. Microsoft has registered in Finland its
     trademark Windows in the following classes:
       • 9 (computer programs etc)
       • 16 (manuals etc)
       • 38 (telecommunications)
       • 41 (training services etc)




                                                                    23
                                                    Olli Pitkänen
Trademarks internationally

• Registered trademarks are valid only nationally
• If a company wishes to protect its brand internationally,
  it may
     – register the trademark in several countries using
       their national systems
     – apply for international registrations under the
       Madrid Protocol, or
     – apply a Community trademark covering the
       European Union area
• Registering a national trademark is much less
  expensive and much easier than applying for a patent,
  but it is advisable to use a trademark agent especially
  for international applications                      Olli Pitkänen
                                                                      24
Design Right

• New design with individual character
   – Does not have to be artistic
   – Visible appearance of a product or a part
   – Protects against copying
• Needs to be registered nationally




                                                                 25
                                                 Olli Pitkänen
More information

• European law (directives etc):
    – Eur-Lex http://eur-lex.europa.eu/
• Finnish law:
    – Finlex: http://www.finlex.fi/
• Patents, trademarks, design rights, etc:
    – http://www.prh.fi/en.html
• General:
    – Edilex: http://www.edilex.fi/




                                                             26
                                             Olli Pitkänen

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Introduction to Intellectual Property Rights (IPR)

  • 1. Introduction to Intellectual Property Rights Olli Pitkänen D.Sc, LL.M.
  • 2. Intellectual Property Rights (IPR) • It is possible to own physical objects • One cannot own (have title to) intangible objects like software, information, or multimedia • They can be objects of intellectual property rights: – copyright, – patent, – trademark, – design right, etc. • Most intellectual property rights don’t actually ensure that the right-holder may do something, but the right- holder may forbid others from doing something 2 Olli Pitkänen
  • 3. Copyright • A creative work is protected by copyright – automatic: no need to file applications – a copyright notice, © -mark are optional • Originally for literature and arts, but also very important protection of e.g. computer software although patents in general have become more important • Governed by national laws, EU directives, international treaties • Copyright does NOT protect facts, ideas, plot, algorithms, etc., but merely the original expression Olli Pitkänen 3
  • 4. Economic Rights • exclusive right to gain from the creative work, e.g. – to copy, – to modify • esp. in the USA, more unclear in Europe, – to sell • only the first sell, copyright exhaustion, – to display the work • can be assigned and licensed – e.g. publishing contracts, end-user licenses 4 Olli Pitkänen
  • 5. Moral rights • Protect creative people’s personality and honor • Different rights in different countries/jurisdictions, e.g. – right to proclaim or disclaim authorship • to the extent that is common and good practice – right to object any modification that would be injurious to author’s reputation – right to access the work • Moral rights cannot be assigned at large • Important also for non-profit creators • Less important in software 5 Olli Pitkänen
  • 6. Limitations to Copyright In Europe (esp. Finland): – Private use (not applicable to SW) – Citation – Reprint in press, etc. In the USA – Fair use: criticism, news reporting, teaching, research,… • Limited (!) time period: copyright lasts for the life of the author plus 70 years – 30 years old person creates a computer program, dies at the age of 80, the copyright lasts 120 years – quite enough! 6 Olli Pitkänen
  • 7. Intermediary liability • Lots of unauthorized copies on the Net • In principle, operators, service providers and other intermediaries can easily be liable for illegal information – High risks, prevent useful services • Legislator has met them halfway: safe-harbor if the intermediary has only a passive role as a mere conduit, a cache, or a hosting service: – Notice and take down procedure • Web 2.0: Liability on user generated content? – Currently mixed court cases on whether service provider is liable on youtube-styled content 7 Olli Pitkänen
  • 8. Linking • Normal linking does not infringe copyright – <a href="http://www.aalto.fi”>Aalto</a> is ok • However, for example, embedded deep linking which circumvents paywalls, ads, or other business models, may violate copyright – Mixed court cases 8 Olli Pitkänen
  • 9. Copyright in Ambient Intelligence • Future scenarios show that the adaptation of content based on the device properties, context, user preferences, and so on will be very important • Adaptation is useful and required. • However, a copyright-owner has sometimes a right to object modifications, e.g. to protect valuable brands. – E.g. in the USA exclusive right in derivative works • Also, modification may pre-empt safe harbour rules: operators and other intermediaries become widely liable for illegal content • Potential conflict  balance is needed. 9 Olli Pitkänen
  • 10. Legal and technical protection Content: information etc. • copyright • other IPR Technical protection Legal protection of technical protection Other rights, e.g. privacy, freedom of speech 10 Olli Pitkänen
  • 11. Copyright Law Complex? One single amendment into the Finnish Copyright Act (EV 100/2005 vp) included these internal references 11 Olli Pitkänen
  • 12. Database Protection • Valuable databases that are not creative  copyright is not applicable  they used to be outlaws • EU directive + national laws – nonexistent in the USA and most other countries • Requires a substantial investment in obtaining, verifying or presenting the contents of the database • Exclusive right to prevent copying (extraction and/or re-utilization) of the whole or of a substantial part • It does NOT protect single data items in the DB • Lasts 15 years from completion or publication 12 Olli Pitkänen
  • 13. Patent ≠ Copyright • Creative work is protected by copyright – original, expressed, creator’s personality • Inventions are protected by patents – in the USA: novel, useful, nonobvious – in Europe: new, an inventive step, and susceptible of industrial application 13 Olli Pitkänen
  • 14. General Criteria for Patents • New / novelty – a new invention, different from prior art – do not publish your invention before applying for patent! • Nonobviousness / involve an inventive step – unexpected or surprising new results • Usefulness / susceptible of industrial application – the invention must work, – e.g a perpetual motion machine would be novel, but it does not work 14 Olli Pitkänen
  • 15. Types of Inventions that Do Not Qualify for Patent • Mathematical formulas • Scientific theories • Laws of nature • Pure indications of intelligence • Any invention that is not repeatable, not described in detail • Note: different rules in different countries • How about computer programs as such? 15 Olli Pitkänen
  • 16. Who is the inventor? • A person who contributes significant input into an invention • Several people invent in cooperation, they’ll get the patent together • Several people invent unaware of the others, first of them gets the patent – in the USA: first to invent – in the rest of the world: first to file • In employment, employer may redeem the patent 16 Olli Pitkänen
  • 17. Application and Publicity • It is necessary to apply for a patent • Good application is difficult to prepare • It’s often a good idea to use a patent attorney or an agent • Application becomes public ⇒ competitors can view it • Sort of trade: the inventor discloses the invention, the society grants a temporal monopoly – Compare with the copyright system: copyright is achieved automatically, no need to disclose anything – Sometimes disclosure benefits others, but hardly e.g. in the software industry 17 Olli Pitkänen
  • 18. Exclusive Rights • Territory: the patent is valid only in the countries where it was granted – Compare with copyright: automatically worldwide coverage • Time period: at most 20 years after the application date, annual increasing fees – Copyright: lifetime + 70 years • In many countries, covers only professional use – Copyright: any use 18 Olli Pitkänen
  • 19. Internationality • In general, patents are valid only in the countries they were granted – 12 months period to extend the application to other countries • Separate application in each country – PCT and EPC help in filing applications in several countries 19 Olli Pitkänen
  • 20. Trade Secret • Trade, business, and professional secrets and other corresponding business information that is kept secret and the revelation of which would be conductive to causing financial loss. • Customer lists, price lists, systems of work, computer systems, etc. may be included in trade secret. • Espionage is illegal. • Non-Disclosure Agreement (NDA): it is often useful to make an agreement with business partners, customers, etc, that they must not disclose your trade secrets. 20 Olli Pitkänen
  • 21. Trade secrets and employment • The law stipulates that an employee may not revel trade secrets during the employment. • Using an NDA, the employer may also restrict the freedom of an employee for six months at most after the end of the employment relationship, or for one year at most in case the employee has got a reasonable compensation for the covenant. 21 Olli Pitkänen
  • 22. Trademark • A distinctive word, phrase, logo, graphic symbol, or other device to identify the source Hyvä ruoka, of a product or service, brand parempi mieli – to distinguish a manufacturer’s or merchant’s products from anyone else’s • In Finland, can be registered or established ® • In the USA, first use or registration 22 Olli Pitkänen
  • 23. Trademark classes • Trademarks are registered in one or several classes – E.g. Microsoft has registered in Finland its trademark Windows in the following classes: • 9 (computer programs etc) • 16 (manuals etc) • 38 (telecommunications) • 41 (training services etc) 23 Olli Pitkänen
  • 24. Trademarks internationally • Registered trademarks are valid only nationally • If a company wishes to protect its brand internationally, it may – register the trademark in several countries using their national systems – apply for international registrations under the Madrid Protocol, or – apply a Community trademark covering the European Union area • Registering a national trademark is much less expensive and much easier than applying for a patent, but it is advisable to use a trademark agent especially for international applications Olli Pitkänen 24
  • 25. Design Right • New design with individual character – Does not have to be artistic – Visible appearance of a product or a part – Protects against copying • Needs to be registered nationally 25 Olli Pitkänen
  • 26. More information • European law (directives etc): – Eur-Lex http://eur-lex.europa.eu/ • Finnish law: – Finlex: http://www.finlex.fi/ • Patents, trademarks, design rights, etc: – http://www.prh.fi/en.html • General: – Edilex: http://www.edilex.fi/ 26 Olli Pitkänen