Debate II: Intellectual Property

Patents and Copyright protection should be maximized, it is too risky to do otherwise...

What is intellectual property or IP?

Definition:  Intellectual property, often known as IP, allows people to own their creativity and innovation in the same way that they can own physical property. The owner of IP can control and be rewarded for its use, and this encourages further innovation and creativity to the benefit of us all.

"In some cases IP gives rise to protection for ideas but in other areas there will have to be more elaboration of an idea before protection can arise. It will often not be possible to protect IP and gain IP rights (or IPRs) unless they have been applied for and granted, but some IP protection such as copyright arises automatically, without any registration, as soon as there is a record in some form of what has been created."

The four main types of IP are:

1) **Patents for inventions - new and improved products and processes that are capable of industrial application


2) Trade marks for brand identity - of goods and services allowing distinctions to be made between different traders


3) Designs for product appearance - of the whole or a part of a product resulting from the features of, in particular, the lines, contours, colors, shape, texture or materials of the product itself or its ornamentation;


4) **Copyright for material - literary and artistic material, music, films, sound recordings and broadcasts, including software and multimedia
 

http://www.intellectual-property.gov.uk/

A brief history of copyright...


The scholars of Ancient Greece and the Roman Empire were the first to be concerned about being recognized as the authors of their works, but they did not have any economic rights. It was not until the invention of printing in the late fifteenth century that a form of copyright protection was devised. Until then, the copying of a manuscript was a painstakingly slow process done mainly by monks. It was limited to copying religious works for orders and the royal courts of Europe. The majority of people were illiterate; only privileged members of society had access to these manuscripts.
 

The Father of American Copyright.

Noah Webster crusaded to obtain copyright protection not only for his successful spelling books and dictionaries, but generally for all authors. Under the Articles of Confederation, he personally traveled around the country to lobby each legislature to pass a copyright statute. He also maintained an active correspondence with many of the drafters of the Constitution, and early members of Congress and the administration, some of whom were authors themselves—including James Madison, George Washington, Thomas Jefferson, and Alexander Hamilton. This engraving is from a Samuel F. B. Morse portrait of Webster. Webster’s lobbying efforts continued through 1831, when he successfully argued for an extension of the period of copyright protection. The extension bill was introduced and supported by his son-in-law, William W. Ellsworth, in the House, and his cousin, Daniel Webster, in the Senate.

Webster’s American Spelling Book of 1783, which eventually sold over 30 million copies, and his American Dictionary of the English Language, published in 1838 when he was in his seventies, were instrumental in developing a standard form of English for the new country.

http://www.digitalopportunity.org/article/view/110790/1/

New Delhi, May 4, 2005: The advent of free-market, knowledge driven economy is reshaping many paradigms; an important one being the way intellectual property is perceived and treated. In the digital era, established norms about ownership rights of individual/indigenous resources have either become questionable or defunct and irrelevant. At the same time, these issues remain important for a country's economic well being, especially as each nation scrambles to safeguard its position in the free-market tug of war.

In an attempt to understand these issues, the British Council and the Developing Library Network, jointly organized a talk - Copyright in the Digital Era – by Prof. Paul Sturges, of the Dept of Information Science, Loughborough University, U.K. Prof. Sturges spoke at length about copyright, its history, the present scenario and emerging issues. Prof. Sturges is also a consultant to OneWorld South Asia.

He said, "the very concept of copyright, as we know it today, is Anglo-American. Traditional economies, including India, have never taken an individualistic or materialistic approach towards invention/art/traditional medicine as they always regarded knowledge as communal property. A number of conflicts arising in the international arena regarding intellectual property are because of the differences in the two approaches."

Prof. Sturges said: “Historically, the concept of copyright can be traced to the industrialized nations in the 18th century. Copyright was treated as a legal bargain between the creators and the State that enabled a reward for sale by financial means or through the recognition of one's contribution.”

Printed matter - books, scientific papers and other material - could be protected by law, published, sold and put in shops to market. Copyright infringement, if any, was limited because the process of copying manuscripts was cumbersome with the technology then available.

The digital era has removed such procedural restraints and entire manuscripts and art work/software can not only be copied but also disseminated with the click of a button. People have easy access to intellectual resources because of photocopying, hacking and file sharing.


The response of the copyright industry has so far been stringent and more so in the last few years. Again, Microsoft came up as the most common and relevant example of various infringement suits that have been brought up against smaller companies and even individuals in some cases.


Going Forward...and on the other side:


Some sections of the international civil society feel strongly that copyrights do little but breed monopolies and place an undue emphasis on individual gains rather than benefit
the society.
An important example would be the open source and open access movements for example software like Linux or the popular online encyclopedia Wikipedia.org.

Prof. Sturges stressed that in the current scenario, enforcement of copyright may indeed not be the best way forward. He concluded by saying that it was important for the public sector and civil society organizations to understand the current trends in copyright and lobby governments for changes that protect the interests of the whole community.
 

 

An interesting article:

The Purpose of Copyright by Lydia Pallas Loren
Lydia Pallas Loren is Associate Professor of Law, Northwestern School of Law of Lewis & Clark College.
http://www.open-spaces.com/article-v2n1-loren.php

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The newspaper you read this morning, the television show you watched last night, the movie you are going to see this weekend, the computer software you use to prepare your letters or send your email, the music you listen to in the car on your way to work: they are all copyrighted. Copyright permeates our lives and yet, despite its impact on our lives, relatively few people, including lawyers, have sufficient knowledge or understanding of what copyright is. And far too many people, including lawyers, have major misconceptions concerning copyright. These misconceptions are causing a dangerous shift in copyright protection, a shift that threatens the advancement of knowledge and learning in this country. This shift that we are experiencing in copyright law reflects a move away from viewing copyright as a monopoly that the public is willing to tolerate in order to encourage innovation and creation of new works to viewing copyright as a significant asset to this country's economy. The most recent example of this shift is the new Digital Millennium Copyright Act, sign by the President on October 28, 1998.

Understanding the root cause and the dangers of this shift requires exposing the most fundamental and most common misconception concerning the underlying purpose of the monopoly granted by our copyright law. The primary purpose of copyright is not, as many people believe, to protect authors against those who would steal the fruits of their labor. However, this misconception, repeated so often that it has become accepted among the public as true, poses serious dangers to the core purpose that copyright law is designed to serve.

The core purpose of copyright law is not difficult to find; it is stated expressly in the Constitution. Article I, section 8, clause 8 of the United States Constitution provides that Congress shall have the power: "to promote the Progress of Science and useful Arts, by securing for limited times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries."

This clause is the constitutional basis for the Copyright Act and also the Patent Act. It is the only clause in the grant of powers to Congress that has a stated purpose. Section 8 of Article I gives Congress the power to take such actions as declare war, coin money, raise and support Armies, and provide and maintain a navy. Yet none of these other grants say for what purpose the power is to be exercised. The copyright clause, in contrast, is very specific about its purpose. The exclusive rights that are granted to authors are "to promote the Progress of Science and useful Arts." To fully appreciate this clause, one must understand "science" in its eighteenth century meaning. At the time of the writing of the Constitution "science" denoted, broadly, knowledge and learning. So the core purpose of copyright law, as expressly stated in the Constitution is: to promote the progress of knowledge and learning.

Why did the founding fathers feel the need to state the purpose of copyright and patent, expressly, when none of the other enumerated powers has an express purpose stated? One probable reason lies in the history of the monopoly of the copyright.


A Quick Trip Back in History

When the printing press was introduced into England in 1476, the need for protection of printed works was inevitable. The probable genesis of copyright law was the crown's grant of a letters patent, the printing patent, giving one entity a monopoly on the printing of certain works. Of course, a fee for that monopoly was paid to the crown, thus making the letters patent a source of revenue for the crown.

If the crown could grant these patents, the guild of booksellers, called the Stationers' Company, found that they could agree among themselves to allow a monopoly on works. The members of the Stationers' Company were almost all of the printers in England; if they agreed to respect one another's claims to particular works it was a de facto monopoly. Thus, the idea of a "copyright" started out as a member of the guild registering the title of the manuscript or "copy" with the guild. Registering a copy with the guild gave that printer the exclusive right in the copy. Thus copyright as first used was a noun - the exclusive right in the copy, whereas today many think of copyright more as a verb - the exclusive right to copy.

A bookseller's registration of the copy with the guild gave the bookseller the exclusive right to print and vend the work as a matter of private law, agreed to by members of the guild. The problem with private law, however, is that it can only be enforced among those who have agreed to it. The bookseller's private law copyright was no exception. It was enforceable only among the members of the Stationers' Company. Because of this limitation, the booksellers often sought public affirmation or codification of their private law.

In 1557, the desires of the booksellers and the desires of the crown coincided. The crown perceived the need to gain greater control over "the dangerous possibilities of the printed word" and so granted a royal charter to the Stationers' Company that limited most printing to only members of the company. This charter also empowered the company to search out and destroy "unlawful" books, which gave the guild the public enforcement mechanism for its private law. If a nonmember was printing a work that had been registered with the company by a member, the nonmember could now be stopped. It also meant that if a work which was disagreeable to the crown was being published, it too could be stopped. This arrangement provided the crown with added policemen to enforce its goal to control printed works. Censorship was born.

The power of censorship and press control through the Stationers' Company copyright lasted for over 150 years. Finally, in the early 1700s parliament refused to continue to support the monopoly that the stationers had enjoyed for centuries and the power of censorship that the crown had enjoyed along with it.

Copyright in the United States

The framers of the United States Constitution, suspicious of all monopolies to begin with, knew the history of the copyright as a tool of censorship and press control. They wanted to assure that copyright was not used as a means of oppression and censorship in the United States. They therefore expressly provided for the purpose of copyright: to promote the progress of knowledge and learning.

With the stated goal firmly fixed in the Constitution, the task of accomplishing that goal was given to Congress. The means for achieving that goal are also stated in the Constitution. The promotion of the progress of knowledge and learning was to be accomplished by "securing for limited times to Authors .... the exclusive Right to their ... Writings." The monopoly of the copyright would be tolerated, but only as a means to an end. The Constitution adopts a Field of Dreams approach to the creation of works of authorship - the idea that "if you protect it, they will come." By establishing this marketable right to the use of one's expression, copyright supplies the economic incentive to create and disseminate ideas. As the Supreme Court has recognized: "The immediate effect of our copyright law is to secure a fair return for an 'author's' creative labor. But the ultimate aim is, by this incentive, to stimulate artistic creativity for the general public good."

In fulfilling the constitutionally mandated goal of copyright law, Congress has had to ask, as one early legislative report did, two questions: "First, how much will the legislation stimulate the producer and so benefit the public; and second, how much will the monopoly granted be detrimental to the public?" As Judge Walker of the Second Circuit recently summarized: "The copyright law seeks to establish a delicate equilibrium. On the one hand, it affords protection to authors as an incentive to create, and, on the other, it must appropriately limit the extent of that protection so as to avoid the effects of monopolistic stagnation." The founding fathers wanted copyright to be a mechanism by which our democracy would grow and flourish - a way in which our storehouse of knowledge is stocked.


An Interesting Video http://www.cnn.com/video/partners/clickability/index.html?url=/video/tech/2006/07/23/yoon.anti.piracy.snitches.cnneo found on CNN.com:

http://www.cnn.com/video/partners/clickability/index.html?url=/video/tech/2006/07/23/yoon.anti.piracy.snitches.cnn
 

The Future of Copyright

The protection granted to copyright owners is essential in providing the economic incentive for the creation of works. But in determining the scope of the monopoly rights granted to copyright owners, given the extreme length of the monopoly, we must not lose sight of the true purpose of copyright - to promote the progress of knowledge and learning - and we must all realize that too broad a monopoly will impede rather than promote that progress on which this country was founded.

Initially the base of this country's economy was land; there was, after all, so much of it. Then, the base of the economy became manufacturing, the industrial age. Now, we have begun what is referred to as the information age. The way information-based products are protected is through intellectual property, including copyright. The economic importance of copyright has led to additional rights for copyright owners, longer terms of copyright protection, and legal protection for the technological locks put on works in digital media.


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http://www.k-state.edu/academicservices/intprop/webtutor/sld004.htm

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Top Five Reasons to File Copyright Registration For Your Website

1)Registration is required before you can file a lawsuit.
2)Statutory damages up to $150,000 per infringement are only available if copyright is registered.
3)Attorneys’ fees only available if copyright is registered.
Evidence.
Negotiating Leverage.
Detailed Reasons

The Importance of Copyright
by Nathan Hampton


With the advance of technology, our economy has become increasingly dependent on the storage, transfer, and manipulation of information. As a result, issues relating to copyright are taking on a greater importance. However, the same technological advances have made violations of these protections much easier to achieve, sometimes to the point of requiring only a trivial amount of effort.

These forces have created two competing viewpoints in our society. The first viewpoint is typically associated with the creators and distributors of copyrighted works, and holds that the relative simplicity of violating a copyright requires strengthening of copyright laws and increasing the severity of punishments for such violations. Opposed to this is the idea that technological advances have made the concept of copyright protection obsolete, necessitating the abolishment of the legal structures which enforce those protections. The battle between these views has become prominent in recent years, with both sides using increasingly heated rhetoric to advance their viewpoint.

While the public debate regarding so-called "intellectual property" has become increasingly polarized, there is a middle ground which can accommodate a variety of competing interests. In these essays, we explore the nature of information, the rationale for copyright, and five ways to ensure that copyright protection continues to serve both individuals and society.

Matter, Energy, Property, and Information
In the fundamental order of the universe, there is matter and there is energy. The homes in which we live, the clothing we wear, and the food we eat are made of matter - "[s]omething that occupies space and displays the properties of inertia and gravitation...." [1] Energy is not as easily perceived, but it is also inextricably linked with our day-to-day existence. Electrical energy powers lights, televisions, and other devices, and our bodies convert the food we eat into the energy used to eat, drink, play, and work.

Despite the vast amount of matter and energy in the universe, that matter and energy are finite resources. We can change the form of matter and energy and use that matter or energy to serve our needs, but we cannot create or destroy matter and energy. We can even convert matter to energy (and vice-versa), but the sum amount of matter and energy in the universe remains the same.

Because matter and energy are finite resources, they are governed by what economists call the Law of Scarcity. In layman's terms, the Law of Scarcity states that there is not enough for everyone to have as much as they want of everything, so we give up one scarce resource in exchange for another at various times. To facilitate this basic principle, most human societies have developed a system of allotting scarce resources amongst the populace, which we commonly call "property."

The concept of property is simple: if I have a hammer, you do not have that hammer. I cannot wave a magic wand and turn one hammer into two and let you have one of them. If I give you my hammer, then for as long as you have it I cannot drive nails with it. And if I own that hammer, then I have, by law, complete and total control over whether or not I permit anyone else to drive nails with it. It is entirely at my whim to decide how or even if it is used, because I have physical control over it. If I surrender ownership of that hammer to you, however, then I also give up any and all control over how and by whom that hammer may be used.

Consider, now, the concept of information: a particular pattern of matter and/or energy to which a sentient being assigns a meaning. Like energy, information is intangible, though it may be recorded in a tangible form. Unlike energy, however, information is infinite. If I have some bit of information - the sky is blue, for example - I can share that information with you without giving up anything that I have. In fact, I can share that information with everyone I meet without diluting my own ability to use that information. As a result, the laws of scarcity and property do not apply. They simply do not make sense, because information is, by it's very nature, infinite. [2]

The Rationale for Copyright
The economic system in most Western nations is based primarily upon the Law of Scarcity - that which is more scarce has a greater value than that which is less scarce. Because information is non-scarce, the 'normal' laws of economics state that it has no value, a statement which is patently false. Obviously, however, information does have value. The value of information may be pragmatic or aesthetic, but in all cases, the value produced by that information is maximized when it is available to as many people as possible. In an ideal world, therefore, information would be created and shared without cost.

Unfortunately, there are two problems which prevent this ideal from being a reality. The inherent value information has for society as a whole is significant, but the inherent value of information to a specific individual is quite small. Because people are, by nature, self-interested, this means that there is only minimal incentive to create information. Secondly, the production of information consumes scarce resources. While some might produce information solely for their personal satisfaction or out of a genuine sense of social benefit, their ability to do so is limited both by laws of economics, which require them to earn an income, and by laws of biology, which require them to eat.

What is Copyright?
To address these issues, Western nations developed two systems to encourage the creation of information: patents and copyrights. Patents, which we will not address here, encourage the development of materials which have a pragmatic benefit to society; the inventor is temporarily given virtually unlimited authority to control who may and may not make use of her invention, in order that he may exact economic rewards from people for its use as an incentive for her to create the invention in the first place. In return, the invention enters the public domain when that authority expires.

Copyrights are intended to provide an incentive for works which have an aesthetic value - works which improve public discourse or enrich the culture. As with patents, the creator of a work is, as an incentive, granted certain exclusive rights for a limited period of time during which he may exact economic rewards deriving from the creation of that work. Unlike patents, however, copyrights grant only limited authority and provide numerous exceptions (see below for more details).

The Current Status of Copyright
The writers of the U.S. Constitution were aware of both the social benefits of information and the need to provide specific incentives to encourage its production. As a result, Article I, Section 8 reads (in part) "The Congress shall have power ... To promote the progress of science [3] and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries...." Congress has, over the years, exercised this power a number of times. Provisions of current laws governing copyrights grant the creator of a work the exclusive right

"To reproduce the work in copies or phonorecords; To prepare derivative works based upon the work; To distribute copies or phonorecords of the work to the public by sale or other transfer of ownership, or by rental, lease, or lending; To perform the work publicly, in the case of literary, musical, dramatic, and choreographic works, pantomimes, and motion pictures and other audiovisual works; To display the copyrighted work publicly, in the case of literary, musical, dramatic, and choreographic works, pantomimes, and pictorial, graphic, or sculptural works, including the individual images of a motion picture or other audiovisual work; and In the case of sound recordings, to perform the work publicly by means of a digital audio transmission." [4]

Copyright protection commences "from the time the work is created in fixed form," and lasts for the life of the author plus seventy years or, for anonymous works and works made for hire, the shorter of 95 years from publication or 120 years from creation. Registration and copyright notices are not required for protection, but provide additional legal protection against violations of copyright.
 

start ups:

From a small start-up it is now a substantial company (see turnover) selling and products and licensing its technology. IP is a vital part of the company strategy. It has an R & D programme expanding its product range, which includes IP protection for new products. The company founder has now sold his interest in the company and retired on the considerable income he received. The company believes strongly that without the patent protection in its start-up phase, there would have been many copiers and it would not have survived.