Posts Tagged: "copyright"

At this time of the year all typically sit back and reflect on the year that has been, spend time with family and friends, watch some football and set a course to follow into the new year. So here are the top 10 events that shaped the patent, innovation and intellectual property industry during 2010 — at least according to me, and with a heavy patent emphasis. What did you expect?

United States Supreme Court issued a non-decision in the matter of Costco Wholesale Corporation v. Omega, S.A. The Per Curiam decision simply read: “The judgment is affirmed by an equally divided Court. Justice Kagan took no part in the consideration or decision of this case.” Unfortunately, this non-decision could well signal the beginning of the end for the first sale doctrine given that goods manufactured and sold outside the United States can apparently be controlled downstream by the copyright owner without the copyright owner having exhausted rights through the sale.

Copyright trolls are a relatively new beast, and it’s hard to nail down a definition, so I’m just going to fall back on the immortal words of Justice Stewart’s famed copout “I shall not today attempt further to define the kinds of material I understand to be embraced . . . but I know it when I see it . . .” Boy, you said it, Justice Stewart. Of course, he was talking about obscenity and I’m talking about troglodytes. But to me, copyright trolls are like patent trolls. They have very little or no interest in the progress of the arts and brandish their copyright like a sword. They threaten to sue anyone and everyone who even looks at their copyrighted material without permission.

Earlier today, at 2:32 pm Pacific Time, a jury in the United States Federal District Court for the Northern District of California handed down the largest copyright damages verdict in United States history, ordering SAP AG to pay Oracle USA, Inc. the sum of $1.3 billion. After polling, the jury was excused at 2:33 pm and the Court adjourned at 2:35 pm, but this case is certainly long from over. There will likely be innumerable post trial motions and the inevitable bluster about an appeal, which is all but guaranteed. But for today, renowned trial attorney David Bois and his capable team can savor an enormous victory in this monumental case.

For goodness sake stop thinking that you will get rich by selling your idea to industry and sit back and collect royalty checks for doing nothing. If inventing were that easy everyone would be a filthy rich inventor! Many people will have great ideas, but what separates those who can turn their ideas into money from those who cannot is a strategy to define the idea enough so that it can become an asset that can be protected.

The fashion industry claims it loses millions of dollars in revenue every year because of copycats buying one very expensive handbag or shoe or other item, deconstructing it, farming it out (usually to some factory in Asia), and making copies of it to be sold for a fraction of the price. There is now proposed legislation attempting to address and put a dent in the very lucrative knock-off market. Enter the “Innovative Design Protection and Piracy Prevention Act” (S.3728), courtesy of Senator Chuck Schumer (D-NY). Now, imitation is the no longer the sincerest form of flattery, it’s the basis for a lawsuit. Swell. Sen. Schumer is proposing to amend Chapter 13 of the Copyright Statute- Protection of Original Designs. (See the text of his proposed amendment) Fortunately, dear readers, I’m here to make sense of this, or at least give it a hero’s try. It is copyright, after all, and I can only do so much.

As explained by the Organisation for Economic Co-Operation and Development in a draft report draft report: “The overall degree to which products are being counterfeited and pirated is unknown and there do not appear to be any methodologies which could be employed to develop an acceptable overall estimate.” The OECD draft report goes on to explain that based on best estimates that international trade in counterfeit and pirated goods could well have accounted for up to US$ 200 billion in 2005, but that figure does not tell the entire story. This $200 billion figure does not include counterfeit and pirated products that are produced and consumed domestically, nor does it include the significant volume of pirated digital products distributed via the Internet.

Perfect 10, Inc., the former publisher of Perfect 10 Magazine, is back at it with Google over whether Google’s display of certain images of scantily clad women infringes the copyrights owned by Perfect 10. Perfect 10 created and sold pictures of nude models through a now defunct print magazine, and now creates and sells pictures through a password-protected subscription website. Simultaneous actions are pending in both United States and Canada, each with recent rulings over the last two weeks, with a ruling in Canada on July 18, 2010, and a ruling on Google’s motion for summary judgment in the United States District Court for the Central District of California on July 26, 2010.

I have wondered out loud why we don’t have more of a bounce coming off this Great Recession. Certainly the historical dysfunctionality of the Patent Office prior to Director Kappos has something to do with that. It seems to me that open source has also lead many otherwise capable individuals to turn away from innovating. They are not looking for paradigm shifting open spaces and instead toward copying, or simply being blissfully ignorant about whether they are advancing or simply reinventing what others have already invented. The march forward has ceased in part due to the Patent Office backlog and due to an infatuation with open source and reinventing the wheel.

The day-long symposium included discussion of online copyright policy in the United States, specifically the impact of current copyright laws, existing and emerging techniques used to illegally distribute and obtain protected works, the extent and economic impact of infringement, and the role of emerging business models for legitimate distribution of content. During the symposium, it was announced that the Department of Commerce will issue a Notice of Inquiry (NOI) this month seeking public comment on the effectiveness of copyright law, and ultimately will issue a report which will contribute to the Administration’s domestic policy and international engagement in the area of online copyright protection.

Companies enter into software development deals with independent contractors without adequately addressing copyright ownership. Many times, it is assumed by the programmer that the copyright, including the right to modify and prepare derivative works, remains with her or him. From the company side it is generally assumed that when someone is paid to create copyrighted material that flows from the original creation those copyrights will be owned by the commissioning party. Neither assumption is true, which means that when a dispute arises, litigation ensues and unnecessary expenses mount.

Last summer J.D. Salinger sued the author/publisher of the book entitled “60 Years Later Coming Through the Rye” for copyright infringement. Salinger claimed that the book was a sequel to his famous book entitled “Catcher in the Rye” and therefore it was an infringing derivative work. The Second Circuit agreed with the district court that Salinger is likely to ultimately prevail in his lawsuit because the book is probably an infringing work which is not protected by the fair use exception to copyright infringement. However, the Second Circuit remanded because it held that the test used by the district court to decide whether to issue a preliminary injunction was no longer the proper test to use in light of the 2006 Supreme Court decision in eBay v. MercExchange, 547 U.S. 388.

The complaint alleges that in some cases the republication and distribution occurs within a minute or two after the article is published by Dow Jones. In just one two-week period, Briefing.com copied a substantial portion of at least 100 articles and republished more than 70 headlines within three minutes of the initial publication on Dow Jones Newswires. Dow Jones alleges that this conduct violates Dow Jones’ copyrights, amounts to “hot news” misappropriation, violates the DMCA and is otherwise unfair competition.

Last week a patent application on an energy efficient device that provides enhanced copyright protections was published, not surprisingly with Apple, Inc. as the assignee. On Thursday, February 4, 2010, US Patent Application 20100030928 published, titled Media processing method and device. Certainly not the most sexy title possible, but the thrust of the invention is a device that allows the…

The reason giant companies hate patent trolls is because they are not capable of being counter-sued. There is no deterrent effect because patent trolls do not make, use or sell anything, they just sue. So giant companies are targets in the same way that smaller companies without patents are targets of big companies with patents. No one should aspire to be a target. A simple truth is that a small business without patents might as well dress themselves up as a buck during hunting season complete with a bulls-eye pre-drawn. So here is the case for every business to get patents, particularly software patents. Ignore it if you like, but you do so at your own peril.