Intellectual Property

Two Controversies: 

• One group of people that feel intellectual property should be unprotected and unrestricted
• Another group feels government should pass and enforce laws to protect intellectual property

The key issue is about producer rights and user rights and a balance between public and private interests.

 

Due to the non-rivalrous nature of intellectual property it is difficult to compare unauthorized use of intellectual property to the crime of theft.

Common Law (Physical Property)

Theft requires deprivation of the rightful owner of his or her rights to possess, use, or destroy property. 

Example:  Tom steals Suzie’s car. Suzie cannot use or have access to her car.

Intellectual Property

Ideas, written word, audible sounds, or electronic media are so easily reproduced.  When reproduced, there is no such deprivation to the owner.

Example:  Suzie steals a copy of the music Tom has recorded.  In this case, Tom is not deprived access to enjoy his copy of the music.    

NOTE:  Many forms of intellectual property meet the non-rival test for public goods:  The use of the good by one individual does not reduce the consumption of that good by others.

With the click of a mouse text, images, video and sound files can be easily copied and downloaded.  A lot of this information is protected by law.  However, the ease of reproducing information by digital technology and the internet is of great concern for creators and users of such information.  Warnings may be posted on the site to remind users that information should not be copied without permission of rights holder. 

 

Exclusive Rights

1. Grants exclusive rights only on copying/reproduction of the item or act protected (e.g. copyright)
2. Grants a right to prevent others from doing something

• Copyrights prevent users from copying the material form of expression of an idea.  However, they do not stop the user from expressing the same idea in a different form.  It also does not stop users from using the same form of expression even if they have no knowledge of the original. 
• Patents and trade marks will go a step beyond a copyright.  It will prevent the user from making the same design even if they have no knowledge or have seen the claimed property.  In order for these right to be enforces the rights holder must apply or register for these rights.  These rights are more expensive to enforce.

Note: Exclusive Rights may differ by subject matter, the regulated actions associated with subject matter, and the length and limitations of the rights.  Most exclusive rights are government awarded for a limited period of time.

Generally…it is the unauthorized reproduction or commercial exploitation that is regulated by exclusive rights and is nothing more than the right to sue an infringer.

 

The thought is that people would approach the rights holder and request permission to perform the acts to which the rights holder has exclusive right. 

 

Licensing – Is the granting of permission by rights holder.  These licenses stipulate the extent of the licensee’s ability to perform the acts the rights holder may control. 

 

Other Licenses – Attempt to establish additional conditions beyond the acts of the rights holder may control.  These licenses are governed by general contract principles.  In many jurisdictions the law places limits on what restrictions the licensor (the person granting the license) can impose. 

 

Basic reason to protect Intellectual Property is to protect against financial lost.

Example One:  Suzie downloads Tom’s music, so she doesn’t buy his CDs.  Tom loses out on sales, which cut into his profits.

Example Two:  Employee of Software Company Number One takes ideas and brings them to Software Company Number Two.   Software Company Number Two is able to bring their software to the market faster based on this knowledge causing Software Company Number One to lose profits.

Pros: By sharing intellectual property, such as with the computer example, advances can be brought to market quicker than when ideas are not shared.

Cons: Actions by Suzie and employee of software company have violated intellectual property and have hurt the other party financially.  Lack of sharing ideas can slow down progress.