Chapter 4 Review Questions



1. What is intellectual property? Give ten examples of intellectual property.

The term intellectual property is used to describe a unique creation of the human mind that has commercial value. Examples of intellectual property include poems, photographs, songs, plays, books, paintings, sculptures, movies, logos, slogans, designs, perfumes, recipes, and computer programs.

2. Summarize John Locke’s explanation why there is a natural right to property.

John Locke holds that when people remove something from Nature through their own labor, they have mixed their labor with it, and therefore they have a property right in that object.

3. What paradoxes arise when we attempt to extend a natural right to property into the realm of intellectual property?

If more than two people create the identical intellectual property, there is only one instance of that property, not two, meaning both people cannot claim full rights to that property. Copying an intellectual property is different from stealing a physical property. Perfect copies can be made of objects embodying an intellectual property. When this happens, the original owner has lost exclusive control over use of the property, even though he or she still has the original article.

4. What are the ways in which an individual or firm may protect intellectual property in the United States?

An individual or firm in the United States may protect intellectual property through trade secrets, trademarks, service marks, patents, and copyrights.

5. What is the difference between a trademark and a trade secret?

A trademark is a word, symbol, picture, sound, color, or smell used to identify a product. It is good when a company's trademark becomes well known to the public. Examples of trademarks are Kleenex, McDonald's Golden Arches, and Advil. Your college or university's logo is most likely trademarked.
A trade secret is a piece of intellectual property that is kept confidential. Examples of trade secrets are formulas, processes, proprietary designs, strategic plans, and customer lists. The information loses much or all of its value if it becomes public knowledge.

6. What are the relative advantages and disadvantages of patents versus trade secrets?

·         The advantage of a trade secret is that it does not expire.
·         The disadvantage of a trade secret is that a company cannot prevent another company from attempting to reverse engineer the formula or process.
·         The advantage of a patent is that the government gives the patent owner the exclusive right to the intellectual property.
·         The disadvantage of a patent is that this right expires after 20 years.

7. When referring to copyrighted materials, what is meant by the term “fair use”?

Fair use refers to those circumstances under which it is legal to reproduce a copyrighted work without permission.

8. Explain how advances in information technology have made it easier for consumers to violate copyright law.
 
As information technology has advanced, companies have begun using digital media (such as CDs and DVDs) to store copyrighted songs, movies, and computer programs. The widespread availability of personal computers and CD/DVD burners has made it much easier for consumers to make copies of CDs and DVDs.

9. How has the DigitalMillennium Copyright Act affected fair use of copyrighted material by consumers?

The Digital Millennium Copyright Act curtails fair use of copyrighted material by consumers by making it illegal to make copies of DVDs.

10. What does the term “digital rights management” mean? Describe three different technologies that have been used or proposed for digital rights management.

Digital rights management refers to any of a variety of actions owners of intellectual property stored in digital form may take to protect their rights. Examples of digital rights management include encryption, digital watermarking, and making CDs copyproof.

11. What is a peer-to-peer network?
 
A peer-to-peer network is a transient (temporary) network allowing computers running the same networking program to connect with each other and access files stored on each other's hard drives. Peer-to-peer networks facilitate file sharing.

12. What property makes the peer-to-peer network FastTrack more difficult to shut down than Napster?
 
Napster relied on a single central server to mediate requests. FastTrack distributes the index of available files among many supernodes. Shutting down Napster simply requires shutting down the single central server. Shutting down FastTrack would require shutting down all of the supernodes. Hence FastTrack would be more difficult for the judicial system to shut down than Napster.

13. How does BitTorrent provide an order-of-magnitude increase in downloading speed, compared to Kazaa and Grokster?
 
BitTorrent achieves an order-of-magnitude increase in downloading speed, compared with KaZaA and Grokster, by allowing a user to download different pieces of a file from many di
erent sources simultaneously.

14. The U.S. Supreme Court ruled that Sony was not responsible for the copyright infringements of Betamax customers, but Grokster and StreamCast were responsible for the copyright infringements of those who used their peer-to-peer networks. Explain the differences in the two situations that led the Supreme Court to reach opposite conclusions.

Sony did not actively encourage its customers to break copyright law. The Supreme Court ruled that time-shifting was not an infringement of copyright. In contrast, Grokster and StreamCast actively encouraged the availability of copyrighted files on their networks and helped consumers download these files, because these actions increased the popularity of their services and heightened their advertising revenues.

15. Why are patents considered an unreliable way of protecting intellectual property rights in software?

Patents are considered an unreliable way of protecting intellectual property rights in software because the Patent Office has given out many bad software patents than cannot hold up in court. This has happened because for decades the Patent Office did not give out patents on software. During this time a lot of”prior art” was being developed. Now, when a company applies for a software patent, the Patent Office may not be aware of some of the prior art. It may issue a patent even though the algorithm is not novel. Such a patent has little value. The existence of bad patents in software reduces the value of software patents in general.

16. Suppose company A wants to develop a program that duplicates the functionality of a program made by company B. Describe how company A may do this without violating the copyrights held by company B.

Company A resorts to “clean room" software development. Two independent teams work on the project. The first team is responsible for determining how Company B's program works and produces a technical specification. The second team relies solely on the technical specification to develop the software. Because the code developers are isolated from Company B's product, Company A can ensure no code get copied, even unconsciously.

17. When describing a software license, what does the phrase “open source” mean?

Open source refers to software in which the source code is distributed along with the executable program.
18. How has Linux affected the market for proprietary software?

Linux has affected the market for proprietary software by putting price pressure on companies selling proprietary versions of UNIX. It is providing an alternative to servers running the Windows operating system. Linux is also putting pressure on Microsoft and Apple, which sell proprietary operating systems for desktop computers.

19. Suppose your band has recorded a song and posted it as an MP3 file on your Web site.
How can you allow people to download your music for noncommercial purposes while retaining your copyright on the song?

My band can select a Creative Commons license that allows people to download music for noncommercial purposes, but still protects the band's copyright to the song.