Legal Aspects of Managing Technology, 5th Edition (West legal studies in business academic series) PDF
Preview Legal Aspects of Managing Technology, 5th Edition (West legal studies in business academic series)
Apago PDF Enhancer Legal Aspects of Managing Technology FIFTH EDITION LEE B. BURGUNDER Professor of Business Law and Public Policy California Polytechnic State University San Luis Obispo Australia•Brazil•Japan•Korea•Mexico•Singapore•Spain•UnitedKingdom•UnitedStates LegalAspectsofManaging ©2011,2007South-Western,CengageLearning Technology,FifthEdition ALLRIGHTSRESERVED.Nopartofthisworkcoveredbythecopyright LeeB.Burgunder hereonmaybereproducedorusedinanyformorbyanymeans— VicePresidentofEditorial,Business: graphic,electronic,ormechanical,includingphotocopying,recording, JackW.Calhoun taping,Webdistribution,informationstorageandretrievalsystems,or inanyothermanner—exceptasmaybepermittedbythelicenseterms Editor-in-Chief:RobDewey herein. 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Foryourcourseandlearningsolutions,visitwww.cengage.com Purchaseanyofourproductsatyourlocalcollegestoreoratour preferredonlinestorewww.CengageBrain.com Printed in Canada 1 2 3 4 5 6 7 13 12 11 10 09 Contents Preface ...................................................................... xi CHAPTER 1 An Overview of the Technology Policy Environment in the United States......... 1 Introduction 1 TheIntellectual Property System 2 Patents 4 Copyrights 5 TradeSecrets 6 Trademarks 6 ThePublicPolicy ProcessintheUnited States 8 ThePower Struggle:Federal versus State 8 HowIntellectual PropertyPolicies AreMadeintheUnitedStates 11 TheExpanding ScopeofIntellectual Property Protection 13 TheRising Importance oftheFirst AmendmentinTechnology PolicyDisputes 15 Two RunningExamples 18 TAhepSelaf-Agdjuosti ngPStaDirCFlim bEer n19hancer DeCSS 20 Conclusion 21 CHAPTER 2 The International Technology Policy Environment ............................. 23 Introduction 23 Unilateral Measures: ActionsAgainst ImportsintotheUnited States 24 PrivateActionsforUnauthorized ImportsintotheUnitedStates 24 Enforcementthrough Administrative Action 25 Bilateral Arrangements andthe Importanceof TradeSanctions 26 Section 301and TradeSanctions 26 Special301andIntellectual PropertyProtection 27 Multilateral Approaches 29 GlobalIntellectual PropertyAgreements 30 WorldTradeOrganization 32 Regional TradePacts 39 International LawandtheInternet 40 PersonalJurisdiction: Where CantheLawsuit BeBrought? 41 WhatLawApplies? 53 CanaJudgment BeEnforced? 54 TheYahoo!Litigation 55 TheElcomSoft Controversy 57 Conclusion 59 iii iv Contents CHAPTER 3 Fundamental Requirements for Patent Protection in the United States .......... 61 Introduction 61 Overview ofPatent PoliciesandProcesses 64 BasicRequirements 65 PatentDuration 67 EnforcementIssues 70 Novelty 72 IstheInvention New 75 WasthePatentApplication FiledinTime? 81 WhoGetsthePatentWhen ThereAre MultipleInventors? 84 Nonobviousness 88 PatentableSubjectMatter andUtility 96 Patentable SubjectMatter 96 Utility 97 Design Patents 98 InternationalProtection ofIndustrial Designs 101 Conclusion 103 CHAPTER 4 Obtaining and Defending Patent Rights in the United States and Globally...... 105 Introduction 105 ThePatentAAppplicaatigonoPr ocePss:DInFitia lCEonnsidheraationnsce105r PatentOwnershipand theRighttoFilethePatentApplication 107 Invention AssignmentAgreements 107 ImportantSteps beforeApplying 109 Expected FeesandCosts toObtainandMaintain aPatent 111 ElementsofthePatent Application 111 Enablement 112 BestMode 115 Information DisclosureStatement 116 TheClaims 117 PTOProcedures and Appeals 118 Secrecy Orders 118 Secrecy ofInformation Submitted tothePTO 119 ThePatentExamination Process 120 Appeals 121 LossofPatent Rights 121 Reexamination 121 OppositionProcedures 123 Litigation 124 Infringement andRemedies 124 LiteralInfringement 125 DoctrineofEquivalents 126 ProsecutionHistoryEstoppel 127 Infringementof ProcessPatents 131 RemediesforPatentInfringement 131 International PatentProtection Issues 136 SubstantivePatentPolicyIssues 136 ProceduralPatentPolicyIssues 142 Conclusion 147 Contents v CHAPTER 5 Patent Protection for Computer Programs and Internet Business Methods...... 149 Introduction 149 PatentProtection forComputerPrograms: TheLongand Winding Road 150 ComputerProcesses Are Patentable SubjectMatter 150 OldStandards andtheImportance ofPhysicalTransformations 152 TheFederal Circuit Relaxes theStandards forComputer-Related Patents 153 1996PTO Examination Guidelines forComputer-Related Inventions 154 TheFederal Circuit’sStateStreet Decision: The PendulumContinues ItsLiberal Swing 154 TheFederal Circuit’sBilski Decision: ThePendulum BeginstoRetreat 155 RecentEvents InvolvingComputerProgramPatents 158 Other IssuesRegarding PatentsforComputerPrograms 159 ReceivingaPatentfromthePTO 159 ThePossibility ofCopyright Protection 160 InternationalPatent ProtectionofComputer Programs 161 TheControversy Continues:Should PatentProtection Be ExtendedtoComputerPrograms? 162 PatentProtection forInternet BusinessMethods 164 TheControversy overAmazon’sOne-Click BusinessMethod Patent 165 ThePTO’s BusinessMethod PatentInitiative 170 ThePotential ImpactofRecent CourtDecisions 171 Conclusion 171 CHAPTER 6 Apago PDF Enhancer Protection of Secret Information............................................. 173 Introduction 173 Importance ofTradeSecretProtection 175 Rationales forTrade SecretLaws 176 Important AspectsofTrade SecretLaws 178 Definition ofTradeSecret 178 Misappropriation 180 Proving Misappropriation 187 RemediesforTradeSecretMisappropriation 188 Trade SecretProtection Measures 199 FederalEconomic Espionage Act 204 International Trade SecretProtection 205 Concluding RemarksAbout Trade SecretProtection 207 PresentingUnsolicited IdeastoThirdParties 208 HowCompaniesHandleUnsolicited Ideas 211 AdviceforOffering Unsolicited Ideas 212 Conclusion 213 CHAPTER 7 Fundamental Aspects of Copyright Protection ................................ 215 Introduction 215 WhatMaybeProtected byCopyright 216 Protection ofOriginalExpressions 216 Protection ofDatabases 220 Copyright Protection ofProduct Designs 222 vi Contents RightsProvided by Copyright 226 TheBasic Exclusive Rights 226 RecentModels forLicensingCopyright Privileges 228 TheDigital Transmission RightforSound Recordings 230 Webcasting 232 Fairuseand OtherExceptions toCopyright Protection 233 CopyrightOwnership 242 WorksMadeforHire 242 JointWorks 247 MoralRights 247 How toObtainCopyright Protection 248 Registration andDeposit 248 CopyrightNotice 251 Durationof CopyrightProtection 252 Infringement andRemedies 253 TheSubstantial SimilarityStandard 253 Remedies 258 Conclusion 259 CHAPTER 8 Copyright Protection for Computer Programs and Digital Media .............. 261 Introduction 261 TheImportance ofDistinguishing IdeasfromExpressions inComputer Programs 262 Apago PDF Enhancer LevelsofAbstractions inCopyrightedWorks 262 TheAvailability ofAlternative Expressions 265 LevelsofAbstraction forComputerPrograms 266 TheOriginalApproach inComputerCopyright Cases 267 Protection forComputer Programs 267 TheOriginalApproach: Protection forMenu CommandHierarchies and UserInterfaces 270 TheRevised TrendinComputerCopyright Cases 272 Protection forComputer Programs 272 TheRevised Trend:Protection forMenu CommandHierarchies andUserInterfaces 275 InternationalCopyright Protection forComputerPrograms 279 ReverseEngineering ofComputer ProgramsandClean-Room Techniques 280 DigitalRemixingof Copyrighted Content 285 AudioRemixing 285 VisualRemixing 287 TheApplication ofFair UsetoDigital Remix 288 OtherDigitalRemix Issues 292 Conclusion 293 CHAPTER 9 Copyright and the Internet .................................................. 295 Introduction 295 Legal Responsibility fortheWrongful Conduct ofOthers 296 AFramework forAnalyzing LegalResponsibility 299 TheControversies Over VideoRecording Devices 299 Application ofSony’sPrinciples toDigital VideoRecorders 301 Contents vii TheControversies Over Audio RecordingDevices 303 TheAudio HomeRecording Act 304 TheControversy overPortable Digital MusicPlayers 304 Online ServiceProvider Liability 305 ContributoryandVicarious Liability 306 DMCAProtectsOSPsfromCopyright Infringement 309 Responsibility for CopyrightInfringements on Peer-to-Peer File-SharingNetworks 313 TheNapster Dispute 313 TheRecording andMotionPicture Industries Contendwith Post-Napster Services intheCourts 318 TheEntertainment IndustriesUse aMulti-Prong AttacktoCombatFileSharing 325 TheDMCA andCopyrightProtection Technologies 329 DMCA’sAnti-Circumvention and Anti-Trafficking Provisions 329 OtherRecentDMCAControversies 336 Proposed StatutoryAmendments totheDMCA 338 Internet LinkingIssues 339 Standard Linking 339 Deep-Linking 340 InlineLinking and Framing 340 Conclusion 344 CHAPTER 10 Protecting Trademarks and Product Designs in International Markets.......... 345 Apago PDF Enhancer Introduction 345 Fundamental Principles ofTrademark Protection 346 Trademarks andCompetitive Ethics 346 Trademarks andMarketEfficiency 349 GenericMarks 350 DescriptiveMarks 352 TheSpectrum ofTrademark Protection 353 Trademark Protection ofTrade DressandProduct Designs 356 DistinctivenessofTradeDressandProductDesigns 357 Functionality 361 Trademark Protection forComputersandRelatedDevices 365 FederalRegistration: Standards andProcedures 366 Likelihood ofConfusion 366 UseRequirements 367 Reasons toConduct aTrademark Search 368 Basic Registration Procedures 368 Intent-to-Use Applications 369 LossofRegistration Rights 369 Trademark Infringementand Remedies 370 Likelihood ofConfusion 370 Dilution 374 RemediesforInfringement 376 International AspectsofTrademark Protection 378 InternationalTrademark Registration 378 TheGrayMarket 383 Conclusion 386 viii Contents CHAPTER 11 Domain Names and Other Trademark Issues on the Internet .................. 387 Introduction 387 TheInitial ProblemswiththeInternet DomainNameSystem 387 NSI’sRevised Domain NameRegistration Policy 391 InternationalDomainName Complexities 392 Preliminary SuggestionstoResolveDomainName Problems 393 Anticybersquatting ConsumerProtection Act 394 ICANNAddresses DomainNameRegistrationIssues 397 NewTop-LevelDomain Names 397 TheUniformDispute ResolutionPolicy 399 “Suck” SitesandCritical Commentary 404 UsingTrademarks inMetatags 407 SearchEngines andSponsored Advertising 410 Trademark Issues withAdware 413 Responsibility of InterentAuction SitesforTrademark Infringement 414 Other RecentTrademark Issues 416 DomainNameTasting andSpeculating 416 Trademark ProblemsWithTwitterProfiles 417 Conclusion 418 CHAPTER 12 Tort Liability for Physical and Economic Harms .............................. 419 Apago PDF Enhancer Introduction 419 Negligence 419 Negligence andtheRestatementof Torts 420 CausationIssues inNegligence 421 ProximateCause:Responsibility forNegligence 422 DefensestoLiabilityforNegligence 423 WhatisNegligent Conduct? 424 Strict ProductsLiability 426 PolicyReasonsforStrictProducts Liability 426 FormsofProductDefects 427 TheRevised Restatement ofTortsonProducts Liability 431 ConsumerProduct SafetyCommission Regulations 435 Intentional TortsInvolving ComputerSystems 437 TrespassbyElectronicRobots 437 Spam 440 ComputerViruses, TrojanHorses, andWorms 446 Fraud 447 Conclusion 448 CHAPTER 13 Intrusions on Privacy and Other Personal Rights ............................. 449 Introduction 449 APreliminary Look atPrivacy 449 Sources ofLawsRegulating Privacy 450 ThePrivacyBalance 451 PrivacyConcerns inModernTechnology Contexts 452 Contents ix Monitoring Communications and PersonalActivities intheWorkplace 457 Monitoring forEfficiency 457 Monitoring InternetActivity 458 Monitoring E-MailCommunications 459 Recommendations Regarding Electronic MonitoringActivities 465 Collection of PersonalInformation from theInternet 466 Spywareand IdentityTheft 471 Legislativeand RegulatoryActionsintheUnitedStates 474 TheChildren’sOnlinePrivacyProtection Act 476 IndustryInitiativestothePrivacyofInformation ontheInternet 477 European UnionDirectiveonInformation PrivacyProtection 478 Recommendations forCoolEdge 479 ContentControl andtheRegulation ofIndecent Speech 480 TheCommunications Decency Actof1996 481 ChildOnlineProtection Act of1998 484 Defamation 484 Other ViolationsofPersonal Rights 490 IntrusionsonPublicityRights 490 Cyberbullying 491 Conclusion 492 CHAPTER 14 Important Contract Issues for Technology Companies......................... 493 IntroAdupctiaongo493 PDF Enhancer Warranties, Limitations,and Remedies 493 ExpressWarranties 495 Implied Warranties 497 RemediesforBreachofWarranties and LimitationsofRemedies 500 Shrink-Wrap andClick-Wrap Licenses 505 GeneralPrinciples Regarding Standardized Forms 505 Shrink-Wrap Licenses: Standardized FormsintheConsumerContext 505 Click-WrapLicenses 508 TheUniform Computer Information TransactionsAct 513 ElectronicCommerceIssues 514 Mass-Market Licenses 516 Warranties 517 ChoiceofLawand Forum 517 StrategicAlliances and theImportanceof AlternateDispute Resolution 518 StrategicAlliances 518 Alternative DisputeResolution 520 Conclusion 525 CHAPTER 15 Antitrust and Anticompetitive Conduct ...................................... 527 Introduction 527 Overview ofAntitrust 527 PhilosophicalJustifications forAntitrust 528 Federal AntitrustPolicyMakers 529 AntitrustEnforcement andRemedies 530
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