Chapter 4. Legal Issues 1

Intellectual Property

Table of Contents

Patents and the Digital World
Some benchmark cases
Domain Name Piracy or “Cybersquatting
Copyright Law
Copyright on the Web
Hyperlinking and Reuse of Information
The Public Domain
The Concept of the Commons
Eldred vs. Ashcroft
Practical Considerations
The Digital Copy
Peer to Peer File Sharing
A Current Case: Music Publishing
Some Solutions
Code, Copyright and Law
Some conclusions
  • What is intellectual property?

    • Patents, copyright and trade marks

  • What rights do we have to own intellectual property?

The Internet has allowed ideas and information to be freely and easily communicated on an unprecedented level. The ethos of this sharing was entirely cooperative, being primarily to disseminate results among a scientific community, and did not allow for the ownership of information. As the Internet has matured, it has had to come to terms with such restrictions as copyright, patents and libel laws, though these laws and restrictions have had difficulty in keeping up with the technology.

Patents and the Digital World

  • patents for processes and products, but not ideas?

    • some very silly patents!

    • can software be patented?

  • differentiate patents from copyright ownership

Patent law is undergoing changes in an attempt to adapt it to the new digital world. In the process, many poor decisions have been made and many bad patents have been granted. For an overview of the current situation in the US, read the Patent Law Primer. For the latest patent and policy news (again US biased), there's a website run by the O'Reilly publishing group, who have interests in the Open Source ethos.

Should we allow the patenting of information and ideas? What about computer programs, or even programming algorithms and techniques? See Ludlow (1996) for more details.

Some benchmark cases

  • the Unisys GIF/LZW algorithm

  • US case of amazon.com v. Barnes & Noble regarding 1-click ordering

  • BT claiming patent for hypertext links (the “Hidden Page” patent)

  • Microsoft applying to patent XML? Or at least their document definitions.

Unisys GIF/LZW algorithm. 

  • Compression algorithm patent that is violated in many web-graphics, and by most image-editing software

  • .png format developed directly in response by the open source community

  • See also the League for Programming Freedom

amazon.com v. Barnes & Noble. 

  • Boycott of amazon.com by open-source community

  • Initial injuction eventually thrown out by US court

BT's Hidden Page Patent. 

  • Proof of “prior art” needed to undermine BT's case

  • See for example, Michelle Delio's (2002) report (Move Over, BT: He Invented Links) in Wired News.

  • Should such a fundamental and simple technology be patentable

Domain Name Piracy or “Cybersquatting

  • Who owns which domain name?

  • Should anyone have the right to own a particular name?

In recent years, the system of allocation of names on the Internet has given rise to a new form of profiteering. Before many of the larger corporations became aware of the need for a corporate website, opportunists would register their name as an Internet domain name, then wait for the company to stir, realise that it needed the name, and then offer the name for sale for a large sum. Many of these opportunists did take significant amounts of money, though the practice was always considered dubious. Several court cases were filed against them, but the results were variable, almost always being settled behind closed doors, well before a judgement was reached.

However, in one case[1], a company that had registered the names of a number of UK businesses as domain names was forced to relinquish those names, as their use could be regarded as “passing-off”, i.e. the use of a trademarked name to imply that a website has a connection to the trademark's owner. This is a direct violation of the Trade Marks Act 1994, which covers use of any registered trade mark in any context. In this case, the company had speculatively registered names such as marksandspencer.com, sainsburys.com and britishtelecom.com, and initially offered the names for sale to the companies concerned, but with the implication that they would be sold to the highest bidder if each company refused to buy outright. It was this intention that forced the judgement against the speculators.

Today, most cases are settled out of court, and usually within the mechanisms for dispute resolution provided by the registrar (in the UK, this is Nominet.UK.

Copyright Law

  • How has copyright law evolved?

Copyright on the Web

  • Who owns the information on your web page?

  • Hyperlinking encourages the use of other people's material on your pages

  • How can you protect your information and software?

Copyright law exists primarily to protect your investment of research, analysis or creativity as a producer of media and ideas. Anything that you yourself create can be claimed as copyright. So when you create a web page, all that you write as original material is yours, and can't be used by others without your permission.

However, creating web resources often involves reusing other peoples original works, and there the boundaries become blurred. How much rewriting must you do to claim it as your own work? What if you incorporate graphics, HTML code or scripts from other's sites?

The hyperlink positively encourages the author to link to other people's material. HTML also makes it possible to seamlessly incorporate outside material into web pages. Is this appropriate?

And of course, the web is an open, accessible medium where it's easy to copy and paste material without thinking about copyright - so how do authors protect their creations?

Hyperlinking and Reuse of Information

  • Simple links to other's websites are generally acceptable

  • Deep linking can be problematic

    • Links to information contained in another's website which bypass their homepage and thus possibly the identity of the copyright owner.

  • Framing

    • Using information from other website by placing it within a frame displaying your identity

  • Test case: Shetland Times[2]

  • General rule: acknowledge your sources and don't pretend that material is your own.

In the test case mentioned here, a website owner was found to be reusing the news reports of another site, presenting them as articles that he had written himself. This is considered by the UK courts as 'passing off', as presenting information not owned by you as your own work.

Other legislation and cases that apply here include the Copyright and Rights in Databases Regulations (1997), which safeguards the effort invested in data gathering and encoding for large-scale databases, particularly those made available to the public. It prohibits the reuse of significant amounts of information contained in the database by a third party without permission or acknowledgement. This was recently tested in the case of the British Horseracing Board vs. William Hill.

The Public Domain

Copyright and Creativity

 

Art is making something out of nothing and selling it.

 
 --Frank Zappa

The Concept of the Commons

  • common culture, heritage and information

  • the copyright-free resources we all share access to

  • new works deliberately placed into the commons

Traditionally, the concept of a “commons” relates to land use, and we often think of common land as having shared ownership. In fact, land, facilities or objects deemed to be part of the commons are owned by everyone and no-one.

Think of the street outside your house. Most likely, it is maintained by the local council, who take money from you to do so. However, they don't own the land in the normal sense, though they have responsibilities towards it. Everyone has equal access to it, and can use it almost as if it were their own.

In intellectual property terms, the equivalent is the creative work that has fallen (or been placed) into the public domain. No-one can claim ownership of it, and hence cannot charge royalties for its use. Everyone should have equal access and equal right to use the work.

Eldred vs. Ashcroft

  • What should be placed into the commons?

  • How long should copyright last?

In the early nineties, Eric Eldred was a hobbyist who scanned works of literature and placed them onto his website, so that anyone could access them. He took works which had passed out of copyright, and made them available for free in a new format. However, as he accumulated a larger and larger collection of works, he began to hit a problem. More recent works, which were nearing their release from copyright, were suddenly put out of reach of this cultural service, through the extension of the copyright term. And this happened repeatedly.

Eldred began to question why this was happening, and why some works never seemed to be released from the restrictions of copyright (Lessig 2004:Ch.13).

Practical Considerations

  • Why has the Internet precipitated these problems?

The Digital Copy

  • Traditional media has often had inherent deterrents to copying:

    • cost

    • imperfect copying methods

    • inconvenience

  • Digital data often has no such barriers

    • it can be easy to make a perfect copy of information

The limitations of traditional media have meant that passing off a copy as an original has been difficult to achieve and easy to detect if done on a large scale, though generally copies have become acceptable in quality for personal use. This has led to a concept of “fair use”, which permits making personal backups etc., of traditional products. Certain copyrighted material is subject to fair use when quoted, criticised or parodied, though much material (especially new media) is not covered, though most of us have developed our own idea of fair use, as applied to the text, music and video we use.

With digital media, we need to re-examine the fair use idea, and there have been several attempts to formalise it in the courts, with little success. Many copyright holders still consider any copy to be an illegal one, and some refuse to publish works digitally because of this.

These problems are similar to those inherent in protecting the copyright of software, which has never been satisfactorily solved.

Peer to Peer File Sharing

  • Distributed, often decentralised, many publishers

    • each participant becomes a distributor on a network

    • equivalent to “home taping” but on a global scale

  • P2P also widely used to distribute legal software and media

A Current Case: Music Publishing

  • Problem: Music piracy/sharing

    • MP3 format - high quality, fast download

    • More convenient than tapes & CDs

    • Easily distributed

  • Peer to peer sharing mechanisms/software

    • decentralised, therefore difficult to sue

    • personal, cooperative and participatory

  • Video piracy/sharing is also gaining popularity using DivX formats

In an attempt to curb the illegal distribution of music and video, some companies have introduced copy-protection on CDs and DVDs. The CD protection has been particularly problematic, as it relies on the user not being able to read the disk in a purely digital form. It works by introducing errors which are normally corrected by most audio CD players, but which cause the digital copy to break or skip in computer CD players, which don't have error correction mechanisms.

Of course, the protection was quickly broken by hackers reverse-engineering the error correction mechanism, by using more sophisticated CD players, or in one case, by obliterating a section of the disk using a marker pen... within hours of a CD being released, there are usually digital copies on the net.

In fact, there is a subculture on the Internet now which competes to produce the earliest digital copies of the latest films and music, generated by taking hidden video cameras into premiere showings, leaking material from the record companies themselves, and so on.

Companies such as Microsoft have a difficult position; they want to tap into the popularity of digital media and encourage its use, but in such a way that the powerful media companies do not object to.

Some Solutions

Password protection. A password is sent independently of the download, which is then needed to use the media or software. Ineffective, since passwords can easily be exchanged with the copied file.

Digital signatures. ensuring authenticity of both supplier and consumer, can be used to prevent unauthorised playing or copying;

Encrypted downloads. attempts to copy-protect the media, preventing use without authorisation;

Digital Rights Management. encompasses all these ideas, usually integrated into a digital media player;

Micropayments. A very small charge (perhaps less than 10p) is made for each view or play, but accumulates to significant amounts if sufficiently popular. The key to this is the ease of making the payment.

Media tax. In some countries, a more rudimentary solution has been tried, which tries to add a surcharge on blank media used for copying, the revenue from which is used to compensate copyright holders. In most cases, this has been quickly abandoned, not least because the compensation mechanism is usually too complex to work well. In addition, there is a sense that this approach legitimatises the copying process - if the downloader is paying the copy-tax, then the act of downloading will seem “less illegal” in some way. Many European countries still use this method for “fair-use” copies for personal use only.

Code, Copyright and Law

  • restricting authorised use by means of software

  • what happens if software restricts beyond “fair use”?

  • If successful, this code effectively becomes the law (Lessig 1999)

Some commentators are concerned about the implementations of DRM technology that are available, and in particular regarding the way they limit certain actions on the product which would normally be considered “fair use”. In fact, argues Lawrence Lessig [ Code and Other Laws of Cyberspace , 1999], the implementations of “fair use” embedded into these products effectively become the law, since they cannot be circumvented without contravening other laws (such as the Digital Millennium Copyright Act).

Some conclusions

Are we consumers, users or owners of media? Some advocates argue that we should move away from the traditional idea of the consumer of media, since the ability to make perfect copies means that nothing is physically lost when media is given away. They also argue that fair use should mean that if we buy media, we should have the right to back up that media, and to copy it for use on any or all devices we own.

Businesses are keen to re-sell us our previous media purchase in new formats (e.g. vinyl, cassette, CD, mp3, SA-CD, DVD-Audio, etc., etc.).

Is copying damaging the music industry? Of course, the music publishers see each digital copy as taking away revenue from their legitimate business. But according to various studies, this is a shaky conclusion; media sales have remained roughly static (even in a time of general market depression in the US), and when interviewed, those sharing media often use it as a 'try-before-you-buy' idea, and buy as much media as before, but make more informed choices about what they buy.

What does the popularity of media sharing tell us? Perhaps the sharing technologies have shown us that we consider the price of music and video to be too high, or not good enough value. The media companies need to reevaluate the way they create revenue, perhaps switching more to 'value-added' products and more 'collectible' packaging, which would make us feel as though we have bought something valuable to us.



[1] Marks and Spencer plc and others v. One in a Million Ltd., Court of Appeal, 23 July 1998.

[2] Shetland Times, Ltd. v. Dr. Jonathan Wills and Zetnews, Ltd., (Sess. Cas. Oct. 24, 1996) (order granting interim interdict)