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Technology and Law

CS 404 – Computers and Society
      Charles D. Knutson
Intellectual Property
• The other "IP"
• A legally granted monopoly
  – Why should the government grant a monopoly to
    someone for some technology?
  – What are the advantages and disadvantages?
Intellectual Property
• Fundamental motivation…
• Provide a limited monopoly to the inventor
  – Reward innovation and creativity
  – Protect the rights of the creator
  – Foster future innovation and creativity
Intellectual Property
• Fundamental problems…
• Patent holder may not be the inventor
• Patent portfolio holding companies where the
  focus is on litigation
• Burgeoning patent system in which everything
  has to be patented in order to not lose the
  company in some lawsuit
Intellectual Property
•   Patents
•   Copyrights
•   Trademarks
•   Trade Secrets
•   Employment Agreements
•   Intellectual Property Rights
•   Non-Compete Clause
•   Non-Disclosure Agreements
Patents
• A set of exclusive rights (limited monopoly)
  – Limited time period
  – Right to exclude others from practicing the claims
• Must be new, inventive, useful or industrially
  applicable
• Must be non-obvious to one of ordinary skill
  in the art at the time of the invention
Patents
• Prosecution
  – Process of applying and following through the
    process of patent approval
  – "patent pending"
• Patent format:
  – Written description
     • Modes or embodiments
  – Claims
     • Independent and dependent claims
Patent Infringement
• Using the invention without permission of the
  patent holder
  – Must practice all the limitations of one claim
• Direct infringement
  – A party manufacturers, imports, sells, or offers for
    sale technology that practices the patent
• Indirect infringement
  – Induced infringement
  – Contributory infringement
Copyrights
• Exclusive rights to the author or creator of an
  original work
  – Right to copy, distribute and adapt the work
  – Limited time, then "public domain"
• Almost any creative work can be copyrighted
• Automatically obtained without registering
Copyrights
• Fair use
  – Limited use of copyrighted material without
    permission
  – Commentary, criticism, news reporting, research,
    teaching, scholarship
Copyright Laws
• Audio Home Recording Act (1992)
  – Prohibits action against consumers making
    noncommercial recordings of music
  – Royalties paid on media and devices
• Digital Millennium Copyright Act (1998)
  – Prohibits use of devices whose intended use (or
    sole significant use) is to bypass an access or copy
    control put in place by the copyright holder
  – Criminalizes production and use of devices
  – Unanimously approved by the US Senate
Trademarks
• Distinctive sign or indicator by a legal entity to
  identify products or services to consumers
  – Mark, brand, logo
• Trademark ™
  – Common law trademark rights
• Registered Trademark ®
  – Offers a set of exclusive rights to the registered
    owner
Trade Secrets
• Formula, practice, process, design,
  instrument, pattern or compilation of
  information which is not generally known or
  reasonably ascertainable by which a business
  may obtain an economic advantage over
  competitors
  – Recipe for Coca-Cola
• Protection never expires
• Enforced by non-disclosure agreements
• No protection against independently
  duplicating the secret
Employment Agreements
• Typically two choices
  – Sign the document
  – Look for work elsewhere
• Company seeks to preserve its competitive
  advantage
  – All forms of Intellectual property
  – Investment in the individual
• Recognizes the creative nature of engineering
Intellectual Property Rights
• Company generally owns whatever you create
• Engineering work is creative
  – Flashes of inspiration can occur anywhere
• Typical limitations on nature of the work
• Company generally gets the right of first
  refusal, after which the inventor can go and do
• Company may or may not want the spin-off
Non-Compete Clause
• Says you won't leave the company, take what
  you learn and go compete with it
• Protects the company's investment in you
• More restrictive clause should be
  accompanied by suitable compensation
• Restrictions should not be overly vague
Non-Disclosure Agreement
• Commonly referred to as an "NDA"
• Standard business practice when engaging in
  business negotiations
  – Contracts, sales, mergers, partnerships, etc.
• Typically standard boilerplate
• Ultimately still relies on good faith of the
  participants
  – Never enter into an NDA with someone you don't
    already trust

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Technology and Law

  • 1. Technology and Law CS 404 – Computers and Society Charles D. Knutson
  • 2. Intellectual Property • The other "IP" • A legally granted monopoly – Why should the government grant a monopoly to someone for some technology? – What are the advantages and disadvantages?
  • 3. Intellectual Property • Fundamental motivation… • Provide a limited monopoly to the inventor – Reward innovation and creativity – Protect the rights of the creator – Foster future innovation and creativity
  • 4. Intellectual Property • Fundamental problems… • Patent holder may not be the inventor • Patent portfolio holding companies where the focus is on litigation • Burgeoning patent system in which everything has to be patented in order to not lose the company in some lawsuit
  • 5. Intellectual Property • Patents • Copyrights • Trademarks • Trade Secrets • Employment Agreements • Intellectual Property Rights • Non-Compete Clause • Non-Disclosure Agreements
  • 6. Patents • A set of exclusive rights (limited monopoly) – Limited time period – Right to exclude others from practicing the claims • Must be new, inventive, useful or industrially applicable • Must be non-obvious to one of ordinary skill in the art at the time of the invention
  • 7. Patents • Prosecution – Process of applying and following through the process of patent approval – "patent pending" • Patent format: – Written description • Modes or embodiments – Claims • Independent and dependent claims
  • 8. Patent Infringement • Using the invention without permission of the patent holder – Must practice all the limitations of one claim • Direct infringement – A party manufacturers, imports, sells, or offers for sale technology that practices the patent • Indirect infringement – Induced infringement – Contributory infringement
  • 9. Copyrights • Exclusive rights to the author or creator of an original work – Right to copy, distribute and adapt the work – Limited time, then "public domain" • Almost any creative work can be copyrighted • Automatically obtained without registering
  • 10. Copyrights • Fair use – Limited use of copyrighted material without permission – Commentary, criticism, news reporting, research, teaching, scholarship
  • 11. Copyright Laws • Audio Home Recording Act (1992) – Prohibits action against consumers making noncommercial recordings of music – Royalties paid on media and devices • Digital Millennium Copyright Act (1998) – Prohibits use of devices whose intended use (or sole significant use) is to bypass an access or copy control put in place by the copyright holder – Criminalizes production and use of devices – Unanimously approved by the US Senate
  • 12. Trademarks • Distinctive sign or indicator by a legal entity to identify products or services to consumers – Mark, brand, logo • Trademark ™ – Common law trademark rights • Registered Trademark ® – Offers a set of exclusive rights to the registered owner
  • 13. Trade Secrets • Formula, practice, process, design, instrument, pattern or compilation of information which is not generally known or reasonably ascertainable by which a business may obtain an economic advantage over competitors – Recipe for Coca-Cola • Protection never expires • Enforced by non-disclosure agreements • No protection against independently duplicating the secret
  • 14. Employment Agreements • Typically two choices – Sign the document – Look for work elsewhere • Company seeks to preserve its competitive advantage – All forms of Intellectual property – Investment in the individual • Recognizes the creative nature of engineering
  • 15. Intellectual Property Rights • Company generally owns whatever you create • Engineering work is creative – Flashes of inspiration can occur anywhere • Typical limitations on nature of the work • Company generally gets the right of first refusal, after which the inventor can go and do • Company may or may not want the spin-off
  • 16. Non-Compete Clause • Says you won't leave the company, take what you learn and go compete with it • Protects the company's investment in you • More restrictive clause should be accompanied by suitable compensation • Restrictions should not be overly vague
  • 17. Non-Disclosure Agreement • Commonly referred to as an "NDA" • Standard business practice when engaging in business negotiations – Contracts, sales, mergers, partnerships, etc. • Typically standard boilerplate • Ultimately still relies on good faith of the participants – Never enter into an NDA with someone you don't already trust