Intellectual Property Fundamentals
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Intellectual Property Fundamentals Presented by: The Intellectual Property Advisory Group © 2016 by the State of California, Department of General Services What is intellectual property? Intellectual property (IP) is a legal term that refers to creations of the mind, including an idea, invention or process that are protectable under copyright, patent, trademark, and trade secrets law. Common examples include: Books Sculpture Designs Discoveries Logos Phrases Software Symbols Words There are four main types of intellectual property: 1. Copyrights 2. Trademarks 3. Trade Secrets 4. Patents What is copyright? Copyright protects original work of authorship such as literary works, audio/video recordings, software, photos, and maps created by a state agency, department or by one of its consultants or vendors. Copyright law is governed by the U.S. Copyright Act of 1976 (Title 17, U.S.C., section 101 et seq.) Examples of works of authorship: Presentations Books Brochures Copyright Protection The person who created the work is called the “author.” An author automatically has copyright protection for his or her original works of authorship once they have been expressed in a tangible form. Tangible: is it real; can it be touched or reproduced; is it something that can be perceived by the senses. The author has the exclusive right to do and authorize others to: 1. Reproduce the work 2. Prepare derivative work 3. Distribute copies of the work 4. Perform the work 5. Display the work Creation of Copyrighted Materials Copyright does NOT protect thoughts or ideas Copyright protects the method of expression and not the facts contained in an original work of authorship Copyright protection arises upon fixation in a tangible media; registration is not required but does have important advantages (federal law recognizes both registered and unregistered copyrights) Thus, a story cannot be copyrighted until its words are transcribed on paper or a similar medium; similarly, a song cannot be copyrighted until its notes and lyrics are recorded or set in some other perceptible form Use of the Copyright Symbol The © symbol can be used EVEN IF the work is not registered with the U.S. Copyright Office As a best practice, the symbol should be used on any copyrightable materials that a state agency or department posts or publishes and wants to protect Questions about the use of the © symbol should be discussed with agency or department legal counsel Duration of a Copyright Pre-1978 works: One 28 year term plus an additional term of 67 years Works created in 1978 and beyond: The life of the author plus 70 years Work made for hire: 95 years after the first publication or 125 years after creation, whichever expires first Once the relevant time period expires, and in other very limited circumstances, the work typically enters the public domain and may be freely used without restriction Ownership of Copyrighted Materials In the case of actual employees who use employer resources and time to create the materials, the employer is the owner However, an independent contractor or service contract provider will own the copyright to the materials UNLESS: a. The work qualifies as a work made for hire (narrow circumstances AND there is a written agreement so providing); or b. The independent contractor assigns the copyright to the work to the principal. There are several nuances in California law that can make it problematic to use a work made for hire agreement with independent contractors who are individuals (i.e., they might be deemed employees for certain insurance purposes) When Are Copyrighted Material in the Public Domain The term public domain denotes materials that are not protected by intellectual property laws such as copyright, trademark, or patent laws The public owns these works, not an individual author or artist; consequently, anyone can use a public domain work without obtaining permission, but no one can ever own it Posting a copyrighted work, such as a state manual, on the Internet means that it is downloadable and will be difficult to protect Consequently, when posting state owned materials on the Internet, it is best to post them in a format such as .pdf and to include terms and conditions outlining the appropriate use of these materials (a “click wrap” agreement requiring consent is one example of these terms and conditions) Dangers of Using Internet Materials An article of IP typically takes a tangible form, such as in a book or DVD; however, there are separate and distinct intangible rights that also attach when IP is created Under the “first sale” doctrine, a purchaser acquires the ability to sell or transfer the tangible article but she does not obtain any of the intangible IP rights, such as the ability to reproduce or distribute the work Given that IP protection arises upon fixation of the work in a tangible medium, Internet content generally should not be used without written permission and appropriate attribution This restriction has special relevance with respect to music found on the Internet as companies that own these works are very zealous in protecting their property interests Exceptions to this general rule are discussed in the “Defenses to a Claim of Infringement” and the “Fair Use” sections of this training Navigating the Use of Photographs Found on the Internet The use of photographs found on the Internet presents special problems as most are protected under copyright law Consequently, the use of a photograph found on the Internet typically requires written permission or a waiver from the copyright owner Some Internet sites, such as Creative Commons, have standard licenses that may permit some uses of a photograph so long as license requirements are strictly met The question of whether a photograph found on the Internet may be used is a difficult one with the result that agency or departmental legal counsel should be consulted prior to use One state agency had to use a photograph taken by staff because a suitable one, with the appropriate licenses, could not be found on the Internet Copyright and Social Media Social Media, such as Facebook and Twitter, utilize a great deal of copyrighted materials that should only be used with the utmost of caution These social media sites have very strict terms and conditions; it is very easy to violate these terms, which may prompt a legal claim for copyright infringement Posting copyrighted materials that are owned by the state runs the risk that these materials will be deemed within the public domain Remember: It is not necessary for copyrighted materials to contain the © designation so the absence of the designation does NOT mean that these materials are free to use If a license is obtained for copyrighted materials, care must be exercised not to violate the terms of the license as this could also prompt a copyright infringement claim Copyright Registration Registration is not necessary or required but is strongly recommended for published or commercially-distributed works because it is a pre- requisite for the owner to pursue a legal action for copyright infringement. Eligibility for copyright: Advantages of Copyright Registration Enables the copyright owner to institute a federal court action in order to prevent others from engaging in the exclusive rights of the owner (i.e., reproduction, distribution, public performance, public display, or the preparation of derivative works) Registration establishes a public record of the copyright claim Registration of a copyright with the U.S. Copyright Office allows an aggrieved owner to seek statutory damages and attorney fees in a copyright infringement lawsuit A copyright notice is not required for enforceability but it creates a presumption of knowledge. A copyright notice consists of ©, the year of first publication, and the name of the copyright owner Registering a copyright is the least expensive form of IP protection and usually takes approximately eight to fourteen months (see, www.copyright.gov/help/faq/faq-what.html) Registration of Works Created by State Employees Using Public Funds Not all copyrightable materials should be registered by state agencies and departments, such as emails and meeting agendas Some materials created by a state governmental entity might be suitable for release into the public domain in order to maximize the overall public benefit The decision to register (or not) must be made at the management or legal office level based on the policies, missions and goals of the respective state agency or department Factors to Consider When Deciding Whether to Register a Copyright The importance of public access to the materials The risk of unauthorized, private commercial gain arising from the unrestricted use of the materials (one state department had to act to prevent the use of a sponsored vehicle license plate on popcorn bags being sold at a local store) The importance of the materials in disseminating the goals and mission of the state agency or department to the public The feasibility of licensing the use of the materials on a non-exclusive, limited basis The overall public perception created by limiting access to the information or materials NOTE: The fact that copyrightable materials are not registered does not mean that the materials lack legal protection; the common law establishes protection for such unregistered materials Should Copyrighted Materials be Placed in the Public Domain? The answer to this important question involves a three-part process: Is the work one that the state agency or department desires or needs to protect based on the factors outlined in the previous slide, including the potential value of the work? Should the materials be placed in the public domain due to the importance of public access and the need to further the mission and goals of the agency or department? If the agency or department determines that copyright protection is warranted, should the materials be registered with the U.S.