{"id":25134,"date":"2012-05-31T19:46:11","date_gmt":"2012-05-31T23:46:11","guid":{"rendered":"https:\/\/ipwatchdog.com\/?p=25134"},"modified":"2012-05-31T19:46:11","modified_gmt":"2012-05-31T23:46:11","slug":"digital-property-rights-an-evolving-business-landscape","status":"publish","type":"post","link":"https:\/\/ipwatchdog.com\/2012\/05\/31\/digital-property-rights-an-evolving-business-landscape\/id=25134\/","title":{"rendered":"Digital Property Rights – An Evolving Business Landscape"},"content":{"rendered":"
Creativity and invention are highly valued within the United States as reflected by patent laws dating back to 1790, with mention of intellectual property even included in the U.S. Constitution. Protecting these ideals was seen as key to promoting an innovative spirit within American society and encouraging the creation of new products. Ultimately, a steady influx of new products and services translates into a healthy economic market as consumers reap the benefits of innovation.<\/p>\n
With the advent and rise of the Internet, digital property rights have become an increasingly hot-topic in the Board rooms and Executive Offices of major companies, particularly those in the hi-tech industry. Much like the information protected under intellectual property rights, digital products provide their creators with certain protections under the law. The problems and legal challenges facing major companies like Yahoo and Facebook will help better define the laws surrounding digital property rights, and likely present opportunities as well as a whole host of new legal questions.<\/p>\n
Intellectual Property Rights\u00a0<\/strong><\/p>\n The Internet is the newest marketplace for business transactions and laws have yet to catch up with the different types of digital property available online. Digital property rights represent the next generation of intellectual property rights, which puts them on the same playing field as patents, copyrights and trademark brands.<\/p>\n As intellectual property, digital information exists inside the Internet realm. In effect, transactions and agreements between companies and consumers take place in a virtual world as opposed to the \u201creal-life\u201d world standard laws were designed to protect.<\/p>\n Instead of the written contract agreements drawn up between companies, new or existing businesses operate in an online marketplace that allows for considerable flexibility. Business-to-consumer transactions also operate within this virtual territory. Under these circumstances, it\u2019s really no surprise to see major companies, such as Napster, Amazon, Google and Yahoo clash in areas having to do with digital property rights.<\/p>\n Digital property rights disputes arise when some form of counterfeiting or piracy occurs between companies. With the many forms that digital-intellectual property can take, rights infringements tend to pop up in unexpected places, though the companies involved in some of the more publicized disputes may very well have seen trouble brewing beforehand.<\/p>\n Patent Violations<\/strong><\/p>\n Whenever an online company develops a new software technology, the company has the option of patenting their creation. And while payment transaction screens provide an ideal advertising space for generic credit\u00a0ads, Amazon.com \u2013a major online bookseller- decided to streamline their customer purchase transactions instead.<\/p>\n Amazon.com developed a new technology known as 1-click technology or \u201cone-click buying, which enables customers to make purchases in a single click. Rather than enter credit card and billing information each time a purchase is made, this information is stored in customer account files. Amazon was awarded a patent on this technology in 1999.<\/p>\n As this technology gives online businesses a convenient way to get the customer to the checkout as soon as possible, it didn\u2019t take long for other large online companies to try to infringe on Amazon\u2019s patent rights. Less than a month after Amazon received the patent, Barnes & Noble set up an \u201cExpress Lane\u201d checkout option that also allowed customers to make a purchase in one-click without having to look through a\u00a0best credit card compare<\/a>\u00a0<\/strong>before making a purchase.<\/p>\n Not surprisingly, Amazon filed a lawsuit against Barnes & Noble for patent infringement violations. And while the lawsuit was settled in 2002, the terms of the settlement have yet to be disclosed. But at least Amazon had patents to enforce. \u00a0So many of the new tech elite have little or no patent footprint. \u00a0Will the failure to protect what they are building wind up to be their achilles heel?<\/p>\n Licensing Infringements\u00a0<\/strong><\/p>\n The Internet thrives on new technologies involving web applications and their ability to interconnect with other digital devices. As many web applications are designed to interconnect with new cell phone technologies, the companies who develop the apps can benefit from increases in site traffic when mobile phone users pull up their application.<\/p>\n New web applications fall under the digital property category, so a company that owns a patent can require other companies to purchase usage licenses. This licensing option allows other companies to include the application on their device\u2019s app menu.<\/p>\n