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Copyright and Intellectual Property Right 1 Use and Protection of Intellectual Property in Online Business • Intellectual property (general term) includes: – All products of the human mind • Tangible or intangible – Protections afforded by copyrights and patents, trademarks registration, service marks • Right of publicity – Limited right to control others’ commercial use of an individual’s name, image, likeness, identifying aspect of identity – Limited by U.S. First Amendment provisions 2 Use and Protection of Intellectual Property in Online Business (cont’d.) • Online businesses must avoid: – Deceptive trade practices – False advertising claims – Defamation or product disparagement – Infringements of intellectual property rights • By using unauthorized content 3 World Intellectual Property Day April 26 2009 WORLD IP DAY On World Intellectual Property Day this year, WIPO's focus is on promoting VISIONARY INNOVATION as the key to a secure future. Copyright Issues • Copyright – Right granted by government to the author (creator) of literary or artistic work • Specific time length provided in copyright law – Gives author (creator) sole and exclusive right to the work (print, publish, sell) – Includes virtually all forms of artistic or intellectual expression 5 Copyright Issues (cont’d.) • Idea contained in an expression – Cannot be copyrighted • Requirement – Idea must be separate from expression – Example: mathematical calculations • Collection of facts – Can be copyrighted – Example: Yahoo! Web Directory 6 Copyright Issues (cont’d.) • U.S. law still allows registration (no longer required) • Work created after 1989 – Copyrighted automatically by virtue of copyright law • Most U.S. Web pages protected by automatic copyright provision • Web client computer copy of HTML file – Acceptable under fair use • Includes copying it for use in criticism, comment, news reporting, teaching, scholarship, or research 7 FIGURE 8-7 U.S. law governing the fair use exception 8 Copyright Issues (cont’d.) • Fair use specific factors – Nonprofit educational uses have better chance of qualifying than commercial uses – Court may consider painting using different standards than sound recording – Small sections qualify when entire work might not – Court may consider amount of damage caused to value of copyrighted work 9 Copyright Issues (cont’d.) • Copyright law difficult to apply – Due to elements such as fair use • Vicarious copyright infringement – Entity capable of supervising infringing activity – Obtains a financial benefit from infringing activity • Example: Napster – Failed to monitor its network – Profited indirectly from the infringement • Music downloads, copying – Legality unclear in many cases 10