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Intellectual Property

Updated Jan 30, 2024 ·

Intellectual Property​

Intellectual property (IP) covers creations of the mind, including inventions, artistic works, designs, and symbols used in commerce. Protecting IP helps maintain competitive advantage and encourages innovation.

Common types of IP include:

  • Patents

    • Protect inventions and give inventors exclusive rights
    • Valid for a limited period
    • Encourage disclosure of new technologies

Copyright law protects original works like literary, artistic, and musical creations, giving creators exclusive rights to reproduce, distribute, and display their work.

Key points:

  • Duration: Usually lasts the author’s life plus 70 years
  • Fair Use: Allows limited use without permission for criticism, teaching, research, or news reporting
  • Infringement: Unauthorized use can result in fines or legal action

Protected works include:

  • Literary works
  • Musical works (with words)
  • Dramatic works (with music)
  • Pantomimes and choreographic works
  • Pictorial, graphic, and sculptural works
  • Motion pictures and audiovisual works
  • Sound recordings
  • Architectural works

In computer software, copyright law only protects the expression of the code, such as the source code, object code, and structure, not the underlying ideas, algorithms, or functionality.

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For works with multiple authors, copyright protection typically lasts 70 years after the death of the last surviving author.

The Digital Millennium Copyright Act (DMCA) of 1998 addresses copyright issues in the digital age, particularly online.

  • Prohibits bypassing copyright protection mechanisms
  • Allows backup copies of software if properly licensed
  • Covers streaming of audio and video over the internet

Additionally, it limits ISP liability for users’ copyright violations:

  • ISPs are treated like common carriers, similar to telephone companies
  • Not liable for users’ transient activities

Trademarks​

Trademarks protect brand names, logos, and slogans that identify and distinguish products or services.

  • Help prevent consumer confusion and protect brand identity
  • Can be licensed or sold to others
  • Strengthen legal protection against infringement

A key advantage is Intent: you can register a trademark even if you haven’t started using it yet.

In the U.S., trademarks are granted for an initial 10 years and can be renewed indefinitely in 10-year periods.

Patents​

Utility patents protect inventions, giving inventors exclusive rights to make, use, sell, or license their invention for 20 years from the filing date. After this period, the invention enters the public domain.

Patents must meet three main requirements:

  1. Novelty: The invention is new and not previously disclosed
  2. Non-obviousness: The invention is not an obvious improvement to someone skilled in the field
  3. Utility: The invention has a practical purpose or application

There are three types of patents:

  1. Utility Patents

    • Cover new and useful processes, machines, or compositions of matter
    • Protect the functional aspects of inventions
    • Most common type of patent

  2. Design Patents

    • Protect the ornamental design or appearance of an article
    • Do not cover functional aspects
    • Typically last 15 years from grant

  3. Plant Patents

    • Protect new and distinct plant varieties that are asexually reproduced
    • Encourage innovation in horticulture and agriculture
    • Last 20 years from filing date

Trade Secrets​

Trade secrets are confidential business information that provides a competitive edge, such as formulas, practices, designs, or processes.

  • Protected without registration, as long as secrecy is maintained
  • Protection lasts as long as the information remains secret
  • Examples include the Coca-Cola formula and Google's search algorithm

Both copyrights and patents can help protect trade secrets, but there are important limitations:

  1. Public Disclosure

    • Filing a copyright or patent requires revealing details publicly
    • This removes the "secret" nature of the information
    • Competitors may learn and potentially copy aspects of the work

  2. Limited Duration

    • Copyrights and patents only provide protection for a set period
    • After expiration, the work or invention enters the public domain

By nature, trade secrets are not registered. They are kept confidential, with access limited to authorized personnel on a need-to-know basis. Adequate controls and security measures are essential to maintain their secrecy.

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The Economic Espionage Act of 1996 was created to criminalize the theft or misappropriation of trade secrets.

It was later extended by the Defend Trade Secrets Act of 2016, which strengthened federal protections and provided a civil cause of action for trade secret theft.

Software Licensing​

Software licenses define how software can be used, modified, and distributed. Common types include:

  • Proprietary Licenses

    • Restrict modification, copying, and redistribution
    • Typically require purchase or subscription
    • Examples: Microsoft Windows, Adobe Photoshop

  • Open Source Licenses

    • Allow users to view, modify, and share the source code
    • Examples: MIT, GPL, Apache

  • Freeware

    • Free to use, but limited rights for modification or redistribution
    • Examples: Adobe Acrobat Reader, Skype

  • Shareware

    • Free to try for a limited time
    • Requires payment for continued use
    • Examples: WinRAR, Demo games

  • Enterprise License Agreements (ELAs)

    • Cover use across an entire organization
    • Often include volume discounts and support
    • Simplify license management for large companies

  • End-User License Agreements (EULAs)

    • Legal agreement between software provider and user
    • Defines permitted and restricted uses
    • Usually displayed during installation

  • Concurrent Use Licenses

    • Allow a set number of users to access software at the same time
    • Useful for shared resources in organizations
    • Helps optimize software costs

  • Named User Licenses

    • Assigned to specific individuals
    • Only licensed users can access the software
    • Provides better tracking and compliance

  • Cloud Services License Agreements

    • Govern access to software hosted in the cloud
    • Define subscription terms, data use, and service levels
    • Examples: Microsoft 365, Salesforce