A Master’s thesis under the supervision of Tilburg University in Tilburg (Netherlands) for the partial fulfilment of the LL.M. in Law and Technology. How supportive is the current European IP-regime for End-Users? An assessment when rooting or modifying (embedded) software. by I.C. Adiyaman Supervisor: dr. M.H.M. Schellekens Second reader: dr. I.E. Bayamlıoğlu Abstract: The primary purpose of this study is to determine what legal and regulatory challenges end-users face when they want to root or modify their (embedded) software. Data for this research was obtained from several research articles, legislation, and other literature that was found both online (e.g. SSRN & Westlaw) and in the Tilburg University library. On the basis of the results of this research, it can be concluded that from a legal perspective, the scope of modifying or rooting software is very limited. The overlapping legal dogmas, the fragmentation in different European intellectual property laws and contractual obligations makes it nearly impossible to modify software in the end-users’ preferred way. Instead of clarifying the exceptions, the European legislation made it blurrier for end-users who would like to know when they could analyse, modify or root their software. The possible exemptions for rooting activities, provided by the different intellectual property laws in Europe are too strict and not sufficiently clear in order to determine their scope. Even if there is a small legal possibility to tinker software, the possibility is often controlled by a proprietary license or has overlap with other legal dogmas. The safest option for end-users, remains to be modifying open source software under an open source license. The variety of such licenses makes it possible to choose the most preferred license. Although negotiation of these licenses is not possible, the source code is always available for modification or rooting purposes. These limited options for end-users raises the question of whether rights-holders enjoy too much protection under or as prescribed for in European IP-laws. A public debate should be a good starting point about what these technologies are capable of and should map out how powerful these right-holders have become. Although this process is known to be slow, this will be the best option in order to map out all the stakes and draw a possible road map which will lead to the best remedy. 2 Table of content ABSTRACT: ...................................................................................................................................... 2 1 INTRODUCTION ....................................................................................................................... 5 1.1 PROBLEM DESCRIPTION ................................................................................................................. 5 1.2 RESEARCH QUESTION .................................................................................................................... 5 1.3 METHODOLOGY ........................................................................................................................... 6 1.4 THESIS STRUCTURE ....................................................................................................................... 6 2 WHAT ARE THE TECHNICAL OBSTACLES WHICH END-USERS FACE WHEN ROOTING SOFTWARE? 7 2.1 MOTIVES FOR ROOTING SOFTWARE ................................................................................................. 7 2.2 THE IMPORTANCE OF ROOTING. ...................................................................................................... 7 2.3 THE PROCESS OF ROOTING SOFTWARE ............................................................................................. 8 2.3.1 Circumvention of Technical Protection Measures ........................................................... 9 2.3.2 Tinkering within the digital environment ........................................................................ 9 2.3.3 Reverse engineering the source code ............................................................................ 10 3 WHAT ARE THE LEGAL OBSTACLES WHICH END-USERS FACE WHEN ROOTING SOFTWARE? ... 13 3.1 COPYRIGHT LAW ........................................................................................................................ 13 3.1.1 Software Directive 2009/24/EC ..................................................................................... 13 3.1.2 Exclusive rights in the Software Directive ...................................................................... 14 3.2 PARACOPYRIGHT ........................................................................................................................ 18 3.2.1 Digital Rights Management ........................................................................................... 18 3.2.2 End User License Agreements ........................................................................................ 20 3.3 PATENT LAW ............................................................................................................................. 23 3.3.1 European Patent Convention ......................................................................................... 23 3.3.2 Exclusive rights in patent law ........................................................................................ 23 3.3.3 Contributory patent infringement ................................................................................. 24 3.3.4 Difference with copyright protection ............................................................................. 26 3.4 TRADE SECRET LAW .................................................................................................................... 27 3.4.1 European Trade Secret Directive 2016/943/EC ............................................................. 27 3.4.2 Article 4 European Trade Secret Directive ..................................................................... 28 3.4.3 The effects of adapting the Directive ............................................................................. 29 4 WHAT ARE THE LEGAL POSSIBILITIES FOR END-USERS WHEN ROOTING SOFTWARE? ............. 31 4.1 COPYRIGHT LAW EXCEPTIONS ....................................................................................................... 31 4.1.1 Exhaustion ..................................................................................................................... 31 4.1.2 Intended purpose ........................................................................................................... 32 4.1.3 Line-monitoring and decompilation .............................................................................. 33 4.1.4 Back-up copy ................................................................................................................. 35 4.1.5 Adaptation ..................................................................................................................... 35 4.1.6 Does the Software Directive create opportunities for end-users? ................................. 37 4.2 PARACOPYRIGHT ........................................................................................................................ 39 4.2.1 Digital Rights Management ........................................................................................... 39 4.2.2 Does article 7(c) Software Directive, create opportunities for end-users? .................... 41 4.2.3 Open Source Licensing ................................................................................................... 43 4.2.4 Does Open Source Licensing create opportunities for end-users? ................................. 47 4.3 PATENT LAW EXCEPTIONS ............................................................................................................ 48 4.3.1 Article 27 Unified Patent Court agreement ................................................................... 48 4.3.2 Article 28 Unified Patent Court agreement ................................................................... 48 4.3.3 Article 29 Unified Patent Court agreement: Exhaustion ................................................ 49 4.3.4 Does the Unified Patent Court agreement create opportunities for end-users? ........... 50 3 4.4 TRADE SECRET LAW EXCEPTIONS ................................................................................................... 52 4.4.1 Article 5(a) and (b) European Trade Secret Directive .................................................... 52 4.4.2 Article 5(c) and (d) European Trade Secret Directive ..................................................... 53 4.4.3 Does the European Trade Secret Directive create opportunities for end-users? ........... 53 5 CONCLUSION ......................................................................................................................... 55 6 LITERATURE ........................................................................................................................... 59 6.1 PRIMARY SOURCES ..................................................................................................................... 59 6.1.1 Legislation ..................................................................................................................... 59 6.1.2 Case law ......................................................................................................................... 61 6.2 SECONDARY SOURCES ................................................................................................................