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Intellectual Property

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Jason Mellen
Jason Mellen

The document discusses intellectual property (IP) rights including patents, copyrights, and trademarks. IP rights are intended to provide economic incentives for innovation by granting temporary monopolies. However, overuse of patents can undermine innovation by restricting the flow of ideas. Specific examples discussed include Amazon's 1-click patent, Microsoft's 2-click patent, and lawsuits brought by British Technology Group over software update patents. Whether the patent system helps or hinders innovation remains an open debate.

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Lecture Jun 27, 2012 What are Intellectual Property (IP) rights? Patents, copyrights, trademarks ≒Temporary grants of monopoly intended to give economic incentives for innovative activity Without IP rights, there would likely be less motivation to invent, create, and innovate NYT article: Debate on Intellectual Property WIRED article: Pirates of Kiev
Lecture Jun 27, 2012 Volti on IP rights (83-85) ≒a legitimate desire If [a business] has developed a novel technology, it wants the benefits of that technology to accrue only to itself, and not to others ≒The filing of a successful patent makes the inven-tion public (less secrets, via freedom of information) = benefit to the community Licensing
Lecture Nov-8-04 Volti on IP rights, cont. ≒However, patent protection may retard technological development. ≒A well-entrenched firm may suppress inventions that could seriously shake-up existing routines, or even threaten the firms existence. ≒The danger of the patent system being used to stifle competition has not gone unnoticed by the federal government. (Patent WMDs)
Lecture Jun 27, 2012 Positive IP rights Software Transportation techno-logies (Segway, hybrid bus, etc.) Telecommunication technologies (HipTop, Bluetooth, Treo 650) 息 2002, Segway 息 2003, Danger Inc.
Lecture Jun 27, 2012 Negative IP rights Ongoing frenzy to patent any and every tech-nological advance, business model / methods Undermine innovation (ie: chilling effect) Unnecessarily restrict the flow of ideas / diffusion of technological advances. Jeff Bezos 1-Click patent Microsoft British Technology Group software update case British Telecom hyperlinking case
Lecture Jun 27, 2012 Amazon 1-Click Patent Jeff Bezos, CEO Only company that lets customers purchase items with a single click Licenses this technology to Apple and others Successfully sued B&N 息 2003, Amazon
Lecture Jun 27, 2012 Is Bezos right or wrong? Shameless exploitation of a common sense technology? He got there first Jupiter Communications study: 27 % of online buyers aban-doned at least one order before completion, because experience was too exasperating. 息 2003, Amazon
Lecture Jun 27, 2012 Bezos, cont. ≒Despite the call from many thoughtful folks for us to give up our patents unilaterally, I don't believe it would be right for us to do so. ≒Weve spent thousands of hours to develop our 1-Click process. Ecommerce Times: Apple Licenses Amazon 1-Click Technology Any thoughts?
Lecture Jun 27, 2012 Microsoft 2-click Patent For handheld systems ≒now-patented technology is to make it easier for users to launch applications by either double-clicking a button or holding one down. Microsoft currently considering seeking payments from those who employ technologies covered in the patent, When Two Clicks Equal One Patent
Lecture Jun 27, 2012 British Technology Group (BTG) Famous for winning 1989 case against Pentagon, over hovercraft patents Now claims six patents on web-enabled software update technology, UK Firm Patents Software Downloads Currently suing Microsoft and Apple over this Also suing B&N, Amazon, and Netflix, on unrelated patent issue
Lecture Jun 27, 2012 BTG, cont. Antivirus companies (Norton, Symantec, etc.) could be next ≒BTG claims Microsoft's and Apple's operating systems, and MS Office products, infringe patented technologies. ...It seeks unspecified royalty payments for past infringements and injunction against future uses of its software. BTG Sue Apple and Microsoft Over Software Downloads
Lecture Jun 27, 2012 British Telecom Hyperlinking case BT claimed to hold patent on hyperlinks Asserted that every single hyperlink used on every U.S. website was utilizing intellectual property the company patented in 1976 and should therefore be subject to a licensing fee. Sargent patent Case dismissed; deemed without merit WIRED: Judge Tosses BT Hyperlink Case
Lecture Jun 27, 2012 BT Hyperlinking case, cont. What if it wasnt dismissed? How would this affect the Internet? How might this inhibit technological change / diffusion of technology?
Lecture Jun 27, 2012 Sometimes Patents are just Absurd U.S. Patent 5443036: Method of Exercising a Cat ≒A method for inducing cats to exercise consists of directing a beam of invisible light produced by a handheld laser apparatus onto the floor or wall or other opaque surface in the vicinity of the cat, then moving the laser so as to cause the bright pattern of light to move in an irregular way fascinating to cats, and to any other animal with a chase instinct.
Lecture Jun 27, 2012 More Volti & IP ≒Whether the patent system serves as stimulus or hindrance to technological advance is a matter of considerable debate, and one not likely ever to be settled. (85) ≒it is virtually impossible to determine if its advantages outweigh its disadvantages, or vice versa. (85)

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Intellectual Property

  • 1. Lecture Jun 27, 2012 What are Intellectual Property (IP) rights? Patents, copyrights, trademarks ≒Temporary grants of monopoly intended to give economic incentives for innovative activity Without IP rights, there would likely be less motivation to invent, create, and innovate NYT article: Debate on Intellectual Property WIRED article: Pirates of Kiev
  • 2. Lecture Jun 27, 2012 Volti on IP rights (83-85) ≒a legitimate desire If [a business] has developed a novel technology, it wants the benefits of that technology to accrue only to itself, and not to others ≒The filing of a successful patent makes the inven-tion public (less secrets, via freedom of information) = benefit to the community Licensing
  • 3. Lecture Nov-8-04 Volti on IP rights, cont. ≒However, patent protection may retard technological development. ≒A well-entrenched firm may suppress inventions that could seriously shake-up existing routines, or even threaten the firms existence. ≒The danger of the patent system being used to stifle competition has not gone unnoticed by the federal government. (Patent WMDs)
  • 4. Lecture Jun 27, 2012 Positive IP rights Software Transportation techno-logies (Segway, hybrid bus, etc.) Telecommunication technologies (HipTop, Bluetooth, Treo 650) 息 2002, Segway 息 2003, Danger Inc.
  • 5. Lecture Jun 27, 2012 Negative IP rights Ongoing frenzy to patent any and every tech-nological advance, business model / methods Undermine innovation (ie: chilling effect) Unnecessarily restrict the flow of ideas / diffusion of technological advances. Jeff Bezos 1-Click patent Microsoft British Technology Group software update case British Telecom hyperlinking case
  • 6. Lecture Jun 27, 2012 Amazon 1-Click Patent Jeff Bezos, CEO Only company that lets customers purchase items with a single click Licenses this technology to Apple and others Successfully sued B&N 息 2003, Amazon
  • 7. Lecture Jun 27, 2012 Is Bezos right or wrong? Shameless exploitation of a common sense technology? He got there first Jupiter Communications study: 27 % of online buyers aban-doned at least one order before completion, because experience was too exasperating. 息 2003, Amazon
  • 8. Lecture Jun 27, 2012 Bezos, cont. ≒Despite the call from many thoughtful folks for us to give up our patents unilaterally, I don't believe it would be right for us to do so. ≒Weve spent thousands of hours to develop our 1-Click process. Ecommerce Times: Apple Licenses Amazon 1-Click Technology Any thoughts?
  • 9. Lecture Jun 27, 2012 Microsoft 2-click Patent For handheld systems ≒now-patented technology is to make it easier for users to launch applications by either double-clicking a button or holding one down. Microsoft currently considering seeking payments from those who employ technologies covered in the patent, When Two Clicks Equal One Patent
  • 10. Lecture Jun 27, 2012 British Technology Group (BTG) Famous for winning 1989 case against Pentagon, over hovercraft patents Now claims six patents on web-enabled software update technology, UK Firm Patents Software Downloads Currently suing Microsoft and Apple over this Also suing B&N, Amazon, and Netflix, on unrelated patent issue
  • 11. Lecture Jun 27, 2012 BTG, cont. Antivirus companies (Norton, Symantec, etc.) could be next ≒BTG claims Microsoft's and Apple's operating systems, and MS Office products, infringe patented technologies. ...It seeks unspecified royalty payments for past infringements and injunction against future uses of its software. BTG Sue Apple and Microsoft Over Software Downloads
  • 12. Lecture Jun 27, 2012 British Telecom Hyperlinking case BT claimed to hold patent on hyperlinks Asserted that every single hyperlink used on every U.S. website was utilizing intellectual property the company patented in 1976 and should therefore be subject to a licensing fee. Sargent patent Case dismissed; deemed without merit WIRED: Judge Tosses BT Hyperlink Case
  • 13. Lecture Jun 27, 2012 BT Hyperlinking case, cont. What if it wasnt dismissed? How would this affect the Internet? How might this inhibit technological change / diffusion of technology?
  • 14. Lecture Jun 27, 2012 Sometimes Patents are just Absurd U.S. Patent 5443036: Method of Exercising a Cat ≒A method for inducing cats to exercise consists of directing a beam of invisible light produced by a handheld laser apparatus onto the floor or wall or other opaque surface in the vicinity of the cat, then moving the laser so as to cause the bright pattern of light to move in an irregular way fascinating to cats, and to any other animal with a chase instinct.
  • 15. Lecture Jun 27, 2012 More Volti & IP ≒Whether the patent system serves as stimulus or hindrance to technological advance is a matter of considerable debate, and one not likely ever to be settled. (85) ≒it is virtually impossible to determine if its advantages outweigh its disadvantages, or vice versa. (85)

Editor's Notes

  1. That is, why bother with all the effort in creating something new, if anyone / everyone can just copy it? 95% of CDs / DVDs produced in the Ukraine are illegal. MPAA estimates Russia / Ukraine jointly accounted for $250 million in lost sales, due to piracy.
  2. That is, why bother with all the effort in creating something new, if anyone / everyone can just copy it? 95% of CDs / DVDs produced in the Ukraine are illegal. MPAA estimates Russia / Ukraine jointly accounted for $250 million in lost sales, due to piracy.
  3. That is, why bother with all the effort in creating something new, if anyone / everyone can just copy it? 95% of CDs / DVDs produced in the Ukraine are illegal. MPAA estimates Russia / Ukraine jointly accounted for $250 million in lost sales, due to piracy.
  4. Question: What are some other examples of IP rights stimulating innovation and economic growth? Although Microsoft is an 800 pound gorilla, its our 800 pound gorilla.
  5. B&N claimed the nature of e-commerce dictated a path that would inevitably lead most companies to 1-Click systems, much like how computers interfaces inevitably went from command-line to GUI, and how Apple couldnt sue MS. Judge didnt buy that argument.
  6. Many perspectives to approach this issue: ethically, technologically, legally, etc.
  7. Pose question to class
  8. Sargent patent: a system that allows text sent from a central computer to a terminal to include non-visible data, such as the programming code used in hyperlinks.
  9. Pose questions to class
  10. Ex: Brazil, Bangladesh, etc.