January 30, 2008 9:48 AM PST

Intellectual property rights: You can't have it both ways

by Steve Tobak
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Have you ever, I mean ever, copied software, a CD, a DVD, or a video tape without permission or paying? How about downloading music, video, pictures, or art?

If you answered yes, congratulations, you're just like everybody else.

On the other hand, you probably also think U.S. screenwriters are being screwed by the studios. And that China and other countries shouldn't be illegally copying and selling material copyrighted in the U.S.

That, my friend, is called a double standard.

Something else to consider:

Did you read this post about Trend Micro suing Barracuda Networks for patent infringement. Do you agree with the blogger? Do you think companies like Qualcomm, Rambus, or Trend Micro are patent trolls that unjustly enrich their shareholders at the expense of consumers?

If you answered yes, did you know that companies like IBM and Texas Instruments derive significant revenue from patent licensing? And how do you think Microsoft earns a living? Do you think the company's $14 billion in annual profits are derived from selling plastic, cardboard, and paper?

And how do you feel about companies in China and other countries incorporating U.S. patented technology into their products without compensating the inventors? Ask virtually any U.S. technology company if its technology--its intellectual property--has been stolen and sold for profit overseas. The aggregate lost profits are staggering.

If that bugs you, that's also a double standard.

Sure, there are patent trolls--companies that aggregate patents and sue potential violators--but Qualcomm, Rambus, Trend Micro, IBM, Texas Instruments, and Microsoft are not them.

By definition, a patent, a copyright, or a trademark--intellectual property--entitles the owner to reasonable compensation for its use by others. It's the law. If you don't agree, you can always challenge it in court; that's what our legal system is for.

We are a nation of laws. Without them, I doubt we would have the quality of life we have. And without intellectual property rights, I doubt we'd have technology-enriched lives. It's not a perfect system, but it works pretty well. You either buy into that or you don't. You can't have it both ways.

Steve Tobak is managing partner of Invisor Consulting LLC. He is a member of the CNET Blog Network, and is not an employee of CNET. Disclosure.
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by markav1212 January 30, 2008 6:39 AM PST
Patent Law is greatly abused, it used to be that you had to take an item using your invention to the patent office. Sadly no more. The law should be changed so that a company has 3 years to market a product using a patent, and then must continously market a product or have another company market a product using the patent for it to remain in effect. This would would prevent massive filings of patents that cannot work. And it would stop patent trolling companies from existing.
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by stevewr February 27, 2008 2:51 PM PST
sure, go ahead and build an atomic collider and sit it on an examiner's desk. there's a reason why they stopped requiring working models. you my friend have been duped by the theives...or you may yourself be a thief. work for MS?
by BroWren January 30, 2008 10:52 AM PST
If the MPAA can distribute my Linux kernel patches without following the GPL license, and get away with it, I see no wrong in the average Joe ignoring the licenses on movies.

The RIAA doesn't give a damn about copyright, either, they're worried about their business model failing as they lose control of distribution channels. They're middlemen. I couldn't care less about their well-being because they produce *nothing* of value. Let them die out and a direct artist-to-listener model be born. THEN you can ***** about copyright violation as the people doing the actual work are the ones being harmed.

As for large patent holders with products on the market, like MS and IBM? They have so many crosslicensed patents that you'd need a supercomputer just to plot the tangled web. The purpose isn't to promote innovation, rather, it is to create barriers to market entry and stop any *unauthorized* innovation from occurring. IBM holds patents on things as basic as on-screen menus, and is so large that anyone doing *real* innovation would not be able to defend themselves, even against a false patent claim.

The fact is, IP law gives large companies disproportionate amounts of power for far too long, it stifles innovation, and it encourages companies to behave like patent trolls rather than actually producing anything. Complaining about individuals copying CDs and movies is entirely the wrong place to start the argument.
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by voo.doo January 30, 2008 12:17 PM PST
>THEN you can ***** about copyright violation as the people doing the actual work are the ones being harmed

You seem to believe that the copyrights of musical artists should be respected?

You should know that in many cases the artist does own a percentage of the copyright, and/or receives some form of royalties based on unit sales of their work. When you steal music you are stealing from the artist.

In fact some major artists own their publishing rights outright. If you steal these artists music you are only stealing from them. But do you know what publishing ownership each artist has, so you can be sure you are only ripping-off the evil corporations?

By the way, the RIAA is a trade group that represents copyright holders. They make no money from royalties themselves.

If you believe that record labels add nothing of value, you know very little about the music industry. the direct artist to consumer model almost works for established acts (its interesting that Radiohead pulled their free download and when back to selling products)

But for new, unknown, artists labels provide funding (in the form of an advance) that enables them to quit their day jobs and focus on creating, and marketing/publicity services and tour support which they would not be able to afford on their own.

That doesn't mean there isn't a place for artists that want to go it alone, but if an artist chooses to sign with a label, it shouldn't make them fair game for ripping off.

With regard to patents, you should realise that even when a company like IBM or MS owns a patent, it was probably invented by an employee, who is compensated for their work, and probably owns stock in the company. So when you steal the IP you are harming the people who did the work.

It may sound cool to say "screw the evil corporations" but the reality is that many ordinary people depend on corporations for their livelihood.

In any case the point of the article is that in society of laws we don't have the luxury of choosing which ones to follow or when. Stealing is stealing regardless of what you steal or form whom
by iptofar January 30, 2008 11:04 AM PST
The issue is that IP rights have gone too far. U2's producer just wrote a multi-page rant on the subject as if IP were as essential a right as real property law. The fact is, mozart and beethoven both wrote before IP laws were invented and arguably, no one has eclipsed their accomplishments since. IP rights originally derived from the benefit to the society at large. IP rights now have been converted to money paid by average working people to those at the top and corporations created to extract money from the public using IP rights. Believe it or not, average people invent every day. They just don't have a large market to extract royalties from. Imagine if every engineer exerted his/her IP rights on every little turn the way artists are allowed. A car would cost 10 x it's current cost and research would grind to a halt while the attorneys decrypted who got what. The fact is, the current law is stifling innovation because unless you have an attorney on staff, any invention is liable to infringe on a patent filed for something that never worked or made it to market.

Finally, if China is such an offender, why do the studios go the extra mile to get into their market when something new is released? They won't go after china because that's not where the paid off politicians are.

The current IP laws are proof that we have the best gov't money can buy.
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by stskhalsa January 30, 2008 12:07 PM PST
Double Standard?
Simplistic, shallow analysis?

IP law is broken. Period. Fair use doctrine, which was a significant right granted to licensees of IP has been completely trashed by organizations like the RIAA and MPAA, and it's biting them in the keester.... and it's gonna get MUCH worse before it gets better.

The real problem is that intermediaries (read "RIAA lawyers") have created an adversarial climate between producers of IP (used to be "artists") and consumers (used to be "fans"). Hint: this isn't the way to create a healthy environment which benefits both the artists and their fans, and it's going to be the artists who ultimately suffer.

Too bad...
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by Goodman.seth January 30, 2008 4:30 PM PST
Really? Are you saying a user uploading a song or movie onto a P2P site with every intent on sharing it with millions of users and in return be able to download songs or movies from other users for free is FAIR USE covered by copyright law? Give me a break. I don't think the RIAA should be suing its customer base, but you cannot fault them for taking legal action. They are NOT trashing the fair use doctrine, they are by definition strictly upholding it (hence why they win their lawsuits). Our current situation is very much a double standard, that is absolutely undeniable, please don't confuse bias with fact.
by acedtect January 30, 2008 4:54 PM PST
Your examples above could constitute fair use. I see no double standard issue there. As for the patents, it's more complicated than you put it, but you have a point. However I still think the fact that large companies have legitimate patents doesn't mean that obvious patents should be granted.
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by Travis Ernst January 30, 2008 7:28 PM PST
Patent law is more complex when the article skimmed on. If you develop a new component for say a car that allows it to achieve much greater MPG than the base model (say company 123's) you have a product you can market. However, here is the catch, Once you file all the paperwork and submit it to for a Patent, and IF it is granted one, it (your device) is now a PUBLIC DOCUMENT. Any joe can look at the device you are making (as long as it is not coding or programming based; unsure how that is stored at the Patent Office) and start making copies and selling them.

Nobody is protecting your patent if you are a small company. The legal fees to defend in suits will run you at least 6 figures per year if not more if you have problems. All that paperwork did was say you John Doe developed the device and can claim ownership to the creation to it in legal conflicts. Yet you still have to spend money and time away from the office defending this.

There is the other way to go... Don't bother to file a patent. Keep record of your developments on paper, and if it ever goes to court you can prove that you developed it and were making it since date 19xx. The same goes for Name use (artists). I knew of a band that filled paperwork for a band name, it had not been "trademarked" yet. However a band had been using it for a handful of years. They were forced to change names even though they legally had claim to the name.
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by stevewr February 27, 2008 2:57 PM PST
read david pressman's "Patent it Yourself" and you'll understand patent law...if you care to.
by gnuosphere February 10, 2008 8:38 PM PST
A response to this article here...

http://gnuosphere.wordpress.com/2008/02/11/steve-tobak-argues-for-intellectual-property/
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by RicABlair February 11, 2008 11:01 PM PST
Really behind what everyone is saying is that the legal system is broke. As has been so aptly stated so so long ago, "Kill all the lawyers...politicians" Geeks rule.
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by stevewr February 27, 2008 2:55 PM PST
Glad to see there are still some out there who are discerning and not so easily duped by corporate thieves. Good article.
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About Train Wreck

Steve Tobak is a marketing consultant and former chip industry executive. Train Wreck provides insight into dysfunctional corporate behavior, among other things. When he's not airing the industry's dirty laundry, Steve likes to hang around the house, make believe he's working, and drive his wife crazy. Find out more at www.invisor.net or email Steve at trainwreck@invisor.net. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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