The document discusses three scenarios related to property rights and software: 1) Ramesh buying pirated software abroad, 2) a small software company called Bingo having their operating system copied, and 3) a man named Jake improving virus detection software and sharing his modifications. It also defines algorithms, source code, and object code. Property rights and copyright issues regarding software are complex with reasonable arguments on both sides.

1. Property Rights and Software
Dr. Varun Kumar
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2. Outlines
1 Scenarios
Pirated Software from Abroad
Stealing an Idea
Improving Software
2 Some Definitions
Algorithm
Source Code
Object Code
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3. Pirated Software from Abroad
Scenario 1
⇒ Ramesh works for a large consulting company.
⇒ When he was on holiday in Indonesia he found an office suit that
looks identical to Microsoft office.
⇒ The package he found costs R50 compared to the price tag of R3000
back home.
⇒ Cracked version of a software
⇒ Ramesh knew that the seller does not honour US copyright law.
⇒ Despite the documentation looking like it has been photocopied, he
decided to buy it and returned home with it.
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4. Stealing an Idea
Scenario 2
⇒ In 1980; a Bingo software has just developed a new operating system
called BOS.
⇒ BOS is better than anything else around but Bingo is a small firm and
needed venture capitol to start-up.
⇒ It spent 3 years bringing the product to the market, after which it
launched and sold well for a year.
⇒ It has recovered about 25% of initial investments.
⇒ Pirate Pete entered the market with PPOS.
It was cheaper and had more features than BOS.
It appears to be a copied or slightly modified version of BOS.
⇒ Copying of BOS is rampant.
Bingo didn’t last long and went bankrupt within a year.
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5. Improving Software
Scenario 3
⇒ Mr. Venkat develops a virus tester which is very good.
Features: It detects and repairs all known viruses.
⇒ He makes the software and its source code available on the web.
It is free and he also publishes an article on it.
⇒ Jake reads the article and downloads a copy.
⇒ He figures out how it works, downloads the source code and makes
several changes to enhance it.
⇒ After this, Jake sends Mr Venkat a copy of the modified software
together with an explanation.
⇒ Jake then puts a copy on the web, explains what he has done and
gives appropriate credit to Mr Venkat.
Q Discuss whether or not you think Mr Venkat or Jake has done
anything wrong?
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6. Continued–
Open Problem
Write down any thoughts you might have on each of the following:
Q-1 Distinction between hardware and software is often blurred.
Q-2 Macro issues - should software be owned? Should it be protected
like property?
⇒ Micro issues
Q-3 Are un-authorized copies illegal?
⇒ They may also store information about websites that you have visited.
⇒ Legal and moral issues
Descriptive
⇒ What the law say?
Normative
⇒ What the law should say?
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7. Some Definitions
⇒ Algorithm -
It is a finite sequence of well-defined instructions.
It is used to solve a class of specific problems or to perform a
computation.
⇒ Source Code -
Step by step solution to a problem.
It needs high level programming language.
It is usually created by a programmer employing one or more
algorithms.
⇒ Object Code -
Actuates the setting of switches to enable the computer to perform the
underlying algorithm
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