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©2006 Prentice Hall 5-1
E-Marketing 4/E
Judy Strauss, Adel I. El-Ansary, and Raymond Frost
Chapter 5: Ethical and Legal Issues
Dr: Maha Saad Metawea
©2006 Prentice Hall 5-3
Software Piracy
• 40% of all software worldwide was pirated in 2001.
• Piracy resulted in a US$10.7 billion loss for firms.
• 840,000 Internet sites sold counterfeited software.
• Vietnam, China, Indonesia, Ukraine, and Russia have
highest piracy rates. (~90%)
• Microsoft believes that education is the best weapon
against piracy. Do you agree?
• http://www.networkworld.com/news/2006/082506-
owner-of-software-piracy-site.html
Morally Characteristic of the Internet
• The unusual scope of the Internet in providing
many-to-many communications on a global
scale
• The way the Internet facilitates anonymous
communication
• The way material sources from the Internet can
be reproduced easily
©2006 Prentice Hall
©2006 Prentice Hall 5-4
• Ethics and law are closely related.
• Ethics concerns the analysis of what is right
and wrong and how we judge the differences.
• Ethics is a collective (group) consensus about right
and wrong
• Modern technology presents a challenge to
marketing ethics. Critical issues include:
• Ownership of intellectual property
• Freedom of expression
• Use of data and its collection
• Status of children (<18) and digital networks
Ethics and Legal Issues
©2006 Prentice Hall
Legal Issues
Law:
• Also an expression of values,
• Created for broader purposes = national or sometimes
international populations,
• It is a public endeavor = made by legislatures such as
Congress or Parliament, enforced by executives or
agencies, and interpreted by the courts,
• Progress in the law can be slow, and particularly within
the new context of digital communication.
©2006 Prentice Hall
Ethics & Codes of Ethics
• The study of ethics:
• Ethics central focus is analysis and description of basic concepts as
what is right and wrong, types of conduct that comprise ethical
behavior .
• It involves the examination of responsibilities, rights, and
obligations,
• Not limited to purely theoretical boundaries but study all levels of
human interaction,
• Important aspect: the study of professional activities,
• Groups of individuals possessing special skills or knowledge have
established codes and systems of fair practice,
• E.g. The American Marketing Association’s (AMA) Code of Ethics :
Professional codes provide members with guidelines which are specific
to their pursuits.
Right or wrong?
• Right or wrong?
• downloading music and downloading movies
• purchasing human organs on the Net
• online gambling
• purchasing prescription drugs
• lying about who you are in an internet chat room
• purchasing pirated software via Internet auctions or other means
• sending unsolicited bulk mail messages
• Should companies which collect the data own the data?
• Should data which is collected be used for another purpose
without consent?
©2006 Prentice Hall
Test for ethical behavior
• Is it legal?
• Is it fair?
• Does it hurt anyone?
• Have I been honest with those affected?
• Can my conscience live with this decision?
Thought for the day:
ETHICAL BEHAVIOR WILL ALWAYS PAY
OFF IN THE LONG RUN
(Source: Ethics by Steven Hall and Dr. Ellis Langston )
©2006 Prentice Hall
©2006 Prentice Hall 5-5
• What are the roles of formal laws vs. free
operation of the market?
• Supporters of self-regulation stress the private
sector’s ability to identify and resolve problems.
• Critics argue that incentives for self-regulation
are insufficiently compelling and true deterrence
will not be achieved.
The Problem of Self-Regulation
©2006 Prentice Hall 5-6
• The concept of privacy has both ethical and
legal aspects.
• There is legal confusion regarding privacy.
• No specific privacy provision within the U.S.
Constitution.
• Privacy has been addressed in the common law of
the courts. (lawsuits-not arrests)
• Within society, privacy interests compete with
concerns for safety, economics, and need for
association with others.
Privacy
©2006 Prentice Hall
4 defined invasion of privacy
violations
1. Unreasonable intrusion into seclusion of
another
2. Unreasonable publicity of another's private life
3. The appropriation of another’s name or
likeness
4. The publication of another’s personal
information in a false light.
©2006 Prentice Hall
Privacy
• Disagreement remains:
• The seclusion theory = the ability to remain isolated from society.
This model encourages laws and ethical standards which are oriented
toward maintaining personal distance and punishing those who cross
the limits set by individuals.
• The access-control:
Places its emphasis upon laws and standards which enable persons to
reasonably regulate the information which they are giving up.
• The autonomy model:
Define what constitutes private data = those which are necessary for a
person to make life decisions.
©2006 Prentice Hall 5-7
Privacy Within Digital Contexts
• AMA Code of Ethics for Marketing on the
Internet: “information collected from customers
should be confidential and used only for
expressed purposes.”
©2006 Prentice Hall 5-11
• The law protects intangible or intellectual
property through 3 basic mechanisms.
• Copyright
• Patent law
• Trademark
Protection of Digital Property
©2006 Prentice Hall 5-12
• Copyright is the primary means of protecting
most expression on the Internet.
• Doctrine of Fair Use
• Ability to copy protected material for education and news
reporting.
• Doctrine of First Sale
• Limit the ability of copyright holder to obtain profit after
the initial time at which the material is sold.
• Other copyright protection under No Electronic
Theft Act (NET) and Digital Millennium
Copyright Act (DMCA).
Copyright
©2006 Prentice Hall 5-13
• Trademark law concerns the ownership of
intellectual property that identifies goods or
services.
• Trademark law as been applied to the Internet
naming system of domain names.
• Similarities in names may result in trademark
infringement claims.
• Cybersquatting involves the registration of domains
that resemble or duplicate existing ones.
• http://www.buydomains.com/ owned by
• http://www.namemedia.com/
Trademarks
©2006 Prentice Hall 5-14
• Applying patent law to computing is an
uncertain but developing field.
• Creators of software are attempting to make
use of patent law protection.
• Advocates argue that granting of patents for
software will encourage innovation.
• Critics argue that patents will have stifling and
monopolistic effects.
Patents
©2006 Prentice Hall 5-15
• Licenses are increasingly popular method of
intellectual property protection.
• Allow the buyer to use the product but restrict
duplication or distribution.
• Licenses may be two basic types
• Shrinkwrap or break-the-seal licenses
• Clickwrap licenses where the user is required to
click a button to accept the terms
• Legal trend favors enforcement of software
licenses.
Licenses
©2006 Prentice Hall
Conclusion
• Changes within the ethical and legal framework of
networked communication are occurring at a fast pace.
• Marketing professionals are:
• Required to remain well-informed of regulations and
accepted practices,
• Called upon to contribute to the global dialogue about
electronic spaces.

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chapter05 (1).ppt

  • 1. ©2006 Prentice Hall 5-1 E-Marketing 4/E Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 5: Ethical and Legal Issues Dr: Maha Saad Metawea
  • 2. ©2006 Prentice Hall 5-3 Software Piracy • 40% of all software worldwide was pirated in 2001. • Piracy resulted in a US$10.7 billion loss for firms. • 840,000 Internet sites sold counterfeited software. • Vietnam, China, Indonesia, Ukraine, and Russia have highest piracy rates. (~90%) • Microsoft believes that education is the best weapon against piracy. Do you agree? • http://www.networkworld.com/news/2006/082506- owner-of-software-piracy-site.html
  • 3. Morally Characteristic of the Internet • The unusual scope of the Internet in providing many-to-many communications on a global scale • The way the Internet facilitates anonymous communication • The way material sources from the Internet can be reproduced easily ©2006 Prentice Hall
  • 4. ©2006 Prentice Hall 5-4 • Ethics and law are closely related. • Ethics concerns the analysis of what is right and wrong and how we judge the differences. • Ethics is a collective (group) consensus about right and wrong • Modern technology presents a challenge to marketing ethics. Critical issues include: • Ownership of intellectual property • Freedom of expression • Use of data and its collection • Status of children (<18) and digital networks Ethics and Legal Issues
  • 5. ©2006 Prentice Hall Legal Issues Law: • Also an expression of values, • Created for broader purposes = national or sometimes international populations, • It is a public endeavor = made by legislatures such as Congress or Parliament, enforced by executives or agencies, and interpreted by the courts, • Progress in the law can be slow, and particularly within the new context of digital communication.
  • 6. ©2006 Prentice Hall Ethics & Codes of Ethics • The study of ethics: • Ethics central focus is analysis and description of basic concepts as what is right and wrong, types of conduct that comprise ethical behavior . • It involves the examination of responsibilities, rights, and obligations, • Not limited to purely theoretical boundaries but study all levels of human interaction, • Important aspect: the study of professional activities, • Groups of individuals possessing special skills or knowledge have established codes and systems of fair practice, • E.g. The American Marketing Association’s (AMA) Code of Ethics : Professional codes provide members with guidelines which are specific to their pursuits.
  • 7. Right or wrong? • Right or wrong? • downloading music and downloading movies • purchasing human organs on the Net • online gambling • purchasing prescription drugs • lying about who you are in an internet chat room • purchasing pirated software via Internet auctions or other means • sending unsolicited bulk mail messages • Should companies which collect the data own the data? • Should data which is collected be used for another purpose without consent? ©2006 Prentice Hall
  • 8. Test for ethical behavior • Is it legal? • Is it fair? • Does it hurt anyone? • Have I been honest with those affected? • Can my conscience live with this decision? Thought for the day: ETHICAL BEHAVIOR WILL ALWAYS PAY OFF IN THE LONG RUN (Source: Ethics by Steven Hall and Dr. Ellis Langston ) ©2006 Prentice Hall
  • 9. ©2006 Prentice Hall 5-5 • What are the roles of formal laws vs. free operation of the market? • Supporters of self-regulation stress the private sector’s ability to identify and resolve problems. • Critics argue that incentives for self-regulation are insufficiently compelling and true deterrence will not be achieved. The Problem of Self-Regulation
  • 10. ©2006 Prentice Hall 5-6 • The concept of privacy has both ethical and legal aspects. • There is legal confusion regarding privacy. • No specific privacy provision within the U.S. Constitution. • Privacy has been addressed in the common law of the courts. (lawsuits-not arrests) • Within society, privacy interests compete with concerns for safety, economics, and need for association with others. Privacy
  • 11. ©2006 Prentice Hall 4 defined invasion of privacy violations 1. Unreasonable intrusion into seclusion of another 2. Unreasonable publicity of another's private life 3. The appropriation of another’s name or likeness 4. The publication of another’s personal information in a false light.
  • 12. ©2006 Prentice Hall Privacy • Disagreement remains: • The seclusion theory = the ability to remain isolated from society. This model encourages laws and ethical standards which are oriented toward maintaining personal distance and punishing those who cross the limits set by individuals. • The access-control: Places its emphasis upon laws and standards which enable persons to reasonably regulate the information which they are giving up. • The autonomy model: Define what constitutes private data = those which are necessary for a person to make life decisions.
  • 13. ©2006 Prentice Hall 5-7 Privacy Within Digital Contexts • AMA Code of Ethics for Marketing on the Internet: “information collected from customers should be confidential and used only for expressed purposes.”
  • 14. ©2006 Prentice Hall 5-11 • The law protects intangible or intellectual property through 3 basic mechanisms. • Copyright • Patent law • Trademark Protection of Digital Property
  • 15. ©2006 Prentice Hall 5-12 • Copyright is the primary means of protecting most expression on the Internet. • Doctrine of Fair Use • Ability to copy protected material for education and news reporting. • Doctrine of First Sale • Limit the ability of copyright holder to obtain profit after the initial time at which the material is sold. • Other copyright protection under No Electronic Theft Act (NET) and Digital Millennium Copyright Act (DMCA). Copyright
  • 16. ©2006 Prentice Hall 5-13 • Trademark law concerns the ownership of intellectual property that identifies goods or services. • Trademark law as been applied to the Internet naming system of domain names. • Similarities in names may result in trademark infringement claims. • Cybersquatting involves the registration of domains that resemble or duplicate existing ones. • http://www.buydomains.com/ owned by • http://www.namemedia.com/ Trademarks
  • 17. ©2006 Prentice Hall 5-14 • Applying patent law to computing is an uncertain but developing field. • Creators of software are attempting to make use of patent law protection. • Advocates argue that granting of patents for software will encourage innovation. • Critics argue that patents will have stifling and monopolistic effects. Patents
  • 18. ©2006 Prentice Hall 5-15 • Licenses are increasingly popular method of intellectual property protection. • Allow the buyer to use the product but restrict duplication or distribution. • Licenses may be two basic types • Shrinkwrap or break-the-seal licenses • Clickwrap licenses where the user is required to click a button to accept the terms • Legal trend favors enforcement of software licenses. Licenses
  • 19. ©2006 Prentice Hall Conclusion • Changes within the ethical and legal framework of networked communication are occurring at a fast pace. • Marketing professionals are: • Required to remain well-informed of regulations and accepted practices, • Called upon to contribute to the global dialogue about electronic spaces.