Intellectual property (IP) is a category of
property
Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner of property may have the right to consume, alter, share, r ...
that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are
patent
A patent is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an enabling disclosure of the invention."A ...
s,
copyright
A copyright is a type of intellectual property that gives its owner the exclusive right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, educatio ...
s,
trademark
A trademark (also written trade mark or trade-mark) is a type of intellectual property consisting of a recognizable sign, design, or expression that identifies products or services from a particular source and distinguishes them from othe ...
s, and
trade secret
Trade secrets are a type of intellectual property that includes formulas, practices, processes, designs, instruments, patterns, or compilations of information that have inherent economic value because they are not generally known or readily ...
s. The modern concept of intellectual property developed in England in the 17th and 18th centuries. The term "intellectual property" began to be used in the 19th century, though it was not until the late 20th century that intellectual property became commonplace in the majority of the world's legal systems.
["property as a common descriptor of the field probably traces to the foundation of the ]World Intellectual Property Organization
The World Intellectual Property Organization (WIPO; french: link=no, Organisation mondiale de la propriété intellectuelle (OMPI)) is one of the 15 specialized agencies of the United Nations (UN). Pursuant to the 1967 Convention Establishi ...
(WIPO) by the United Nations." in Mark A. Lemley
''Property, Intellectual Property, and Free Riding''
, Texas Law Review, 2005, Vol. 83:1031, page 1033, footnote 4.
The main purpose of intellectual property law is to encourage the creation of a wide variety of intellectual goods. To achieve this, the law gives people and businesses property rights to the information and intellectual goods they create, usually for a limited period of time. This gives economic incentive for their creation, because it allows people to benefit from the information and intellectual goods they create, and allows them to protect their ideas and prevent copying. These economic incentives are expected to stimulate
innovation
Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services. ISO TC 279 in the standard ISO 56000:2020 defines innovation as "a new or changed entit ...
and contribute to the technological progress of countries, which depends on the extent of protection granted to innovators.
The
intangible nature of intellectual property presents difficulties when compared with traditional property like land or goods. Unlike traditional property, intellectual property is "indivisible", since an unlimited number of people can "consume" an intellectual good without its being depleted. Additionally, investments in intellectual goods suffer from problems of appropriation: Landowners can surround their land with a robust fence and hire armed guards to protect it, but producers of information or literature can usually do little to stop their first buyer from replicating it and selling it at a lower price. Balancing rights so that they are strong enough to encourage the creation of intellectual goods but not so strong that they prevent the goods' wide use is the primary focus of modern intellectual property law.
History
The
Statute of Monopolies (1624) and the British
Statute of Anne (1710) are seen as the origins of
patent law
A patent is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an enabling disclosure of the invention."A p ...
and
copyright
A copyright is a type of intellectual property that gives its owner the exclusive right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, educatio ...
respectively, firmly establishing the concept of intellectual property.
"Literary property" was the term predominantly used in the British legal debates of the 1760s and 1770s over the extent to which authors and publishers of works also had rights deriving from the common law of property (''
Millar v Taylor
''Millar v Taylor'' (1769) 4 Burr. 2303, 98 ER 201 is an English court decision that held there is a perpetual common law copyright and that no works ever enter the public domain. It represented a major victory for the bookseller monopolies.
Fac ...
'' (1769), ''
Hinton v Donaldson'' (1773), ''
Donaldson v Becket
''Donaldson v Becket'' (1774) 2 Brown's Parl. Cases (2d ed.) 129, 1 Eng. Rep. 837; 4 Burr. 2408, 98 Eng. Rep. 257; 17 Cobbett's Parl. Hist. 953 is the ruling by the British House of Lords that held that copyright in published works was not perpe ...
'' (1774)). The first known use of the term ''intellectual property'' dates to this time, when a piece published in the ''
Monthly Review'' in 1769 used the phrase. The first clear example of modern usage goes back as early as 1808, when it was used as a heading title in a collection of essays.
The German equivalent was used with the founding of the
North German Confederation
The North German Confederation (german: Norddeutscher Bund) was initially a German military alliance established in August 1866 under the leadership of the Kingdom of Prussia, which was transformed in the subsequent year into a confederated st ...
whose
constitution
A constitution is the aggregate of fundamental principles or established precedents that constitute the legal basis of a polity, organisation or other type of entity and commonly determine how that entity is to be governed.
When these princ ...
granted legislative power over the protection of intellectual property (''Schutz des geistigen Eigentums'') to the confederation. When the administrative secretariats established by the
Paris Convention (1883) and the
Berne Convention
The Berne Convention for the Protection of Literary and Artistic Works, usually known as the Berne Convention, was an international assembly held in 1886 in the Swiss city of Bern by ten European countries with the goal to agree on a set of leg ...
(1886) merged in 1893, they located in Berne, and also adopted the term intellectual property in their new combined title, the
.
The organization subsequently relocated to Geneva in 1960 and was succeeded in 1967 with the establishment of the
World Intellectual Property Organization
The World Intellectual Property Organization (WIPO; french: link=no, Organisation mondiale de la propriété intellectuelle (OMPI)) is one of the 15 specialized agencies of the United Nations (UN). Pursuant to the 1967 Convention Establishi ...
(WIPO) by
treaty
A treaty is a formal, legally binding written agreement between actors in international law. It is usually made by and between sovereign states, but can include international organizations, individuals, business entities, and other legal pe ...
as an agency of the
United Nations
The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and security, develop friendly relations among nations, achieve international cooperation, and be a centre for harmoniz ...
. According to legal scholar
Mark Lemley
Mark A. Lemley (born c. 1966) is currently the William H. Neukom Professor of Law at Stanford Law School and the Director of the Stanford Law School Program in Law, Science & Technology, as well as a founding partner of the law firm of Durie Tan ...
, it was only at this point that the term really began to be used in the United States (which had not been a party to the Berne Convention),
and it did not enter popular usage there until passage of the
Bayh–Dole Act
The Bayh–Dole Act or Patent and Trademark Law Amendments Act ( Pub. L. 96-517, December 12, 1980) is United States legislation permitting ownership by contractors of inventions arising from federal government-funded research. Sponsored by senat ...
in 1980.
The history of patents does not begin with inventions, but rather with royal grants by Queen Elizabeth I
Elizabeth I (7 September 153324 March 1603) was Queen of England and Ireland from 17 November 1558 until her death in 1603. Elizabeth was the last of the five House of Tudor monarchs and is sometimes referred to as the "Virgin Queen".
El ...
(1558–1603) for monopoly privileges. Approximately 200 years after the end of Elizabeth's reign, however, a patent represents a legal right
Rights are legal, social, or ethical principles of freedom or entitlement; that is, rights are the fundamental normative rules about what is allowed of people or owed to people according to some legal system, social convention, or ethical ...
obtained by an inventor providing for exclusive control over the production and sale of his mechanical or scientific invention. demonstrating the evolution of patents from royal prerogative to common-law doctrine.
The term can be found used in an October 1845 Massachusetts Circuit Court ruling in the patent case ''Davoll et al. v. Brown'', in which Justice Charles L. Woodbury wrote that "only in this way can we protect intellectual property, the labors of the mind, productions and interests are as much a man's own ... as the wheat he cultivates, or the flocks he rears." The statement that "discoveries are ... property" goes back earlier. Section 1 of the French law of 1791 stated, "All new discoveries are the property of the author; to assure the inventor the property and temporary enjoyment of his discovery, there shall be delivered to him a patent for five, ten or fifteen years." In Europe,
French author A. Nion mentioned ''propriété intellectuelle'' in his ''Droits civils des auteurs, artistes et inventeurs'', published in 1846.
Until recently, the purpose of intellectual property law was to give as little protection as possible in order to encourage
innovation
Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services. ISO TC 279 in the standard ISO 56000:2020 defines innovation as "a new or changed entit ...
. Historically, therefore, legal protection was granted only when necessary to encourage invention, and it was limited in time and scope.
This is mainly as a result of knowledge being traditionally viewed as a public good, in order to allow its extensive dissemination and improvement.
The concept's origin can potentially be traced back further.
Jewish law includes several considerations whose effects are similar to those of modern intellectual property laws, though the notion of intellectual creations as property does not seem to exist — notably the principle of Hasagat Ge'vul (unfair encroachment) was used to justify limited-term publisher (but not author) copyright in the 16th century. In 500 BCE, the government of the Greek state of
Sybaris
Sybaris ( grc, Σύβαρις; it, Sibari) was an important city of Magna Graecia. It was situated in modern Calabria, in southern Italy, between two rivers, the Crathis (Crati) and the Sybaris (Coscile).
The city was founded in 720 BC ...
offered one year's patent "to all who should discover any new refinement in luxury".
According to Jean-Frédéric Morin, "the global intellectual property regime is currently in the midst of a paradigm shift". Indeed, up until the early 2000s the global IP regime used to be dominated by high standards of protection characteristic of IP laws from Europe or the United States, with a vision that uniform application of these standards over every country and to several fields with little consideration over social, cultural or environmental values or of the national level of economic development. Morin argues that "the emerging discourse of the global IP regime advocates for greater policy flexibility and greater access to knowledge, especially for developing countries." Indeed, with the Development Agenda adopted by WIPO in 2007, a set of 45 recommendations to adjust WIPO's activities to the specific needs of developing countries and aim to reduce distortions especially on issues such as patients’ access to medicines, Internet users’ access to information, farmers’ access to seeds, programmers’ access to source codes or students’ access to scientific articles. However, this paradigm shift has not yet manifested itself in concrete legal reforms at the international level.
Similarly, it is based on these background that the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement requires members of the WTO to set minimum standards of legal protection, but its objective to have a “one-fits-all” protection law on Intellectual Property has been viewed with controversies regarding differences in the development level of countries. Despite the controversy, the agreement has extensively incorporated intellectual property rights into the global trading system for the first time in 1995, and has prevailed as the most comprehensive agreement reached by the world.
Rights
Intellectual property rights include
patent
A patent is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an enabling disclosure of the invention."A ...
s,
copyright
A copyright is a type of intellectual property that gives its owner the exclusive right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, educatio ...
,
industrial design right
An industrial design right is an intellectual property right that protects the visual design of objects that are purely utilitarian. An industrial design consists of the creation of a shape, configuration or composition of pattern or color, or co ...
s,
trademark
A trademark (also written trade mark or trade-mark) is a type of intellectual property consisting of a recognizable sign, design, or expression that identifies products or services from a particular source and distinguishes them from othe ...
s,
plant variety rights
Plant breeders' rights (PBR), also known as plant variety rights (PVR), are rights granted to the breeder of a new variety of plant that give the breeder exclusive control over the propagating material (including seed, cuttings, divisions, tissue ...
,
trade dress
Trade dress is the characteristics of the visual appearance of a product or its packaging (or even the design of a building) that signify the source of the product to consumers. Trade dress is an aspect of trademark law, which is a form of intelle ...
,
geographical indications
A geographical indication (GI) is a name or sign used on products which corresponds to a specific geographical location or origin (e.g., a town, region, or country). The use of a geographical indication, as an indication of the product's source, ...
, and in some jurisdictions
trade secret
Trade secrets are a type of intellectual property that includes formulas, practices, processes, designs, instruments, patterns, or compilations of information that have inherent economic value because they are not generally known or readily ...
s. There are also more specialized or derived varieties of ''
sui generis'' exclusive rights, such as circuit design rights (called
mask work
Layout designs (topographies) of integrated circuits are a field in the protection of intellectual property.
In United States intellectual property law, a "mask work" is a two or three-dimensional layout or topography of an integrated circuit ...
rights in the US),
supplementary protection certificates for pharmaceutical products (after expiry of a patent protecting them), and
database rights
A database right is a '' sui generis'' property right, comparable to but distinct from copyright, that exists to recognise the investment that is made in compiling a database, even when this does not involve the "creative" aspect that is reflect ...
(in
European law
European Union law is a system of rules operating within the member states of the European Union (EU). Since the founding of the European Coal and Steel Community following World War II, the EU has developed the aim to "promote peace, its valu ...
). The term "industrial property" is sometimes used to refer to a large subset of intellectual property rights including patents, trademarks, industrial designs, utility models, service marks, trade names, and geographical indications.
Patents
A
patent
A patent is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an enabling disclosure of the invention."A ...
is a form of right granted by the government to an inventor or their successor-in-title, giving the owner the right to exclude others from making, using, selling, offering to sell, and importing an
invention for a limited period of time, in exchange for the public disclosure of the invention. An invention is a solution to a specific technological problem, which may be a product or a process and generally has to fulfill three main requirements: it has to be
new
New is an adjective referring to something recently made, discovered, or created.
New or NEW may refer to:
Music
* New, singer of K-pop group The Boyz
Albums and EPs
* ''New'' (album), by Paul McCartney, 2013
* ''New'' (EP), by Regurgitator ...
,
not obvious and there needs to be an
industrial applicability
In certain jurisdictions' patent law, industrial applicability or industrial application is a patentability requirement according to which a patent can only be granted for an invention which is susceptible of industrial application, i.e. for an in ...
.
[WIPO Intellectual Property Handbook: Policy, Law and Use. Chapter 2: Fields of Intellectual Property Protection](_blank)
WIPO 2008 To enrich the body of knowledge and stimulate innovation, it is an obligation for patent owners to disclose valuable information about their inventions to the public.
Copyright
A
copyright
A copyright is a type of intellectual property that gives its owner the exclusive right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, educatio ...
gives the creator of an original work
exclusive right
In Anglo-Saxon law, an exclusive right, or exclusivity, is a de facto, non-tangible prerogative existing in law (that is, the power or, in a wider sense, right) to perform an action or acquire a benefit and to permit or deny others the right t ...
s to it, usually for a limited time. Copyright may apply to a wide range of creative, intellectual, or artistic forms, or "works".
Copyright does not cover ideas and information themselves, only the form or manner in which they are expressed.
Industrial design rights
An
industrial design right
An industrial design right is an intellectual property right that protects the visual design of objects that are purely utilitarian. An industrial design consists of the creation of a shape, configuration or composition of pattern or color, or co ...
(sometimes called "design right" or ''design patent'') protects the visual design of objects that are not purely utilitarian. An industrial design consists of the creation of a shape, configuration or composition of pattern or color, or combination of pattern and color in three-dimensional form containing aesthetic value. An industrial design can be a two- or three-dimensional pattern used to produce a product, industrial commodity or handicraft. Generally speaking, it is what makes a product look appealing, and as such, it increases the commercial value of goods.
Plant varieties
Plant breeders' rights
Plant breeders' rights (PBR), also known as plant variety rights (PVR), are rights granted to the breeder of a new variety of plant that give the breeder exclusive control over the propagating material (including seed, cuttings, divisions, tissue ...
or plant variety rights are the rights to commercially use a new variety of a plant. The variety must amongst others be novel and distinct and for registration the evaluation of propagating material of the variety is considered.
Trademarks
A
trademark
A trademark (also written trade mark or trade-mark) is a type of intellectual property consisting of a recognizable sign, design, or expression that identifies products or services from a particular source and distinguishes them from othe ...
is a recognizable
sign,
design
A design is a plan or specification for the construction of an object or system or for the implementation of an activity or process or the result of that plan or specification in the form of a prototype, product, or process. The verb ''to design' ...
or
expression
Expression may refer to:
Linguistics
* Expression (linguistics), a word, phrase, or sentence
* Fixed expression, a form of words with a specific meaning
* Idiom, a type of fixed expression
* Metaphorical expression, a particular word, phrase, o ...
which distinguishes
products
Product may refer to:
Business
* Product (business), an item that serves as a solution to a specific consumer problem.
* Product (project management), a deliverable or set of deliverables that contribute to a business solution
Mathematics
* Produ ...
or
services
Service may refer to:
Activities
* Administrative service, a required part of the workload of university faculty
* Civil service, the body of employees of a government
* Community service, volunteer service for the benefit of a community or a p ...
of a particular trader from similar products or services of other traders.
Trade dress
Trade dress
Trade dress is the characteristics of the visual appearance of a product or its packaging (or even the design of a building) that signify the source of the product to consumers. Trade dress is an aspect of trademark law, which is a form of intelle ...
is a legal term of art that generally refers to characteristics of the visual and aesthetic appearance of a product or its packaging (or even the design of a building) that signify the source of the product to consumers.
Trade secrets
A
trade secret
Trade secrets are a type of intellectual property that includes formulas, practices, processes, designs, instruments, patterns, or compilations of information that have inherent economic value because they are not generally known or readily ...
is a
formula, practice, process,
design
A design is a plan or specification for the construction of an object or system or for the implementation of an activity or process or the result of that plan or specification in the form of a prototype, product, or process. The verb ''to design' ...
, instrument,
pattern
A pattern is a regularity in the world, in human-made design, or in abstract ideas. As such, the elements of a pattern repeat in a predictable manner. A geometric pattern is a kind of pattern formed of geometric shapes and typically repeated li ...
, or compilation of
information
Information is an abstract concept that refers to that which has the power to inform. At the most fundamental level information pertains to the interpretation of that which may be sensed. Any natural process that is not completely random ...
which is not generally known or reasonably ascertainable, by which a
business can obtain an economic advantage over competitors and customers. There is no formal government protection granted; each business must take measures to guard its own trade secrets (e.g., Formula of its soft drinks is a trade secret for Coca-Cola.)
Motivation and justification
The main purpose of intellectual property law is to encourage the creation of a wide variety of intellectual goods for consumers. To achieve this, the law gives people and businesses property rights to the information and intellectual goods they create, usually for a limited period of time. Because they can then profit from them, this gives economic incentive for their creation. The intangible nature of intellectual property presents difficulties when compared with traditional property like land or goods. Unlike traditional property, intellectual property is indivisible – an unlimited number of people can "consume" an intellectual good without it being depleted. Additionally, investments in intellectual goods suffer from problems of appropriation – while a landowner can surround their land with a robust fence and hire armed guards to protect it, a producer of information or an intellectual good can usually do very little to stop their first buyer from replicating it and selling it at a lower price. Balancing rights so that they are strong enough to encourage the creation of information and intellectual goods but not so strong that they prevent their wide use is the primary focus of modern intellectual property law.
By exchanging limited exclusive rights for disclosure of inventions and creative works, society and the patentee/copyright owner mutually benefit, and an incentive is created for inventors and authors to create and disclose their work. Some commentators have noted that the objective of intellectual property legislators and those who support its implementation appears to be "absolute protection". "If some intellectual property is desirable because it encourages innovation, they reason, more is better. The thinking is that creators will not have sufficient incentive to invent unless they are legally entitled to capture the full social value of their inventions".
This absolute protection or full value view treats intellectual property as another type of "real" property, typically adopting its law and rhetoric. Other recent developments in intellectual property law, such as the
America Invents Act, stress international harmonization. Recently there has also been much debate over the desirability of using intellectual property rights to protect cultural heritage, including intangible ones, as well as over risks of
commodification derived from this possibility. The issue still remains open in legal scholarship.
Financial incentive
These exclusive rights allow owners of intellectual property to benefit from the property they have created, providing a financial incentive for the creation of an investment in intellectual property, and, in case of patents, pay associated
research and development costs.
In the United States Article I Section 8 Clause 8 of the Constitution, commonly called the Patent and Copyright Clause, reads; "The Congress shall have power 'To promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries.'" ”Some commentators, such as
David Levine
David Levine (December 20, 1926 – December 29, 2009) was an American artist and illustrator best known for his caricatures in ''The New York Review of Books''. Jules Feiffer has called him "the greatest caricaturist of the last half of the ...
and
Michele Boldrin
Michele Boldrin (; 20 August 1956) is an Italian-born economist, academic and former politician expert in economic growth, business cycles, technological progress and intellectual property. He is the Joseph Gibson Hoyt Distinguished Professor i ...
, dispute this justification.
In 2013 the
United States Patent & Trademark Office
The United States Patent and Trademark Office (USPTO) is an agency in the U.S. Department of Commerce that serves as the national patent office and trademark registration authority for the United States. The USPTO's headquarters are in Alexa ...
approximated that the worth of intellectual property to the
U.S. economy is more than US $5 trillion and creates employment for an estimated 18 million American people. The value of intellectual property is considered similarly high in other developed nations, such as those in the European Union. In the UK, IP has become a recognised asset class for use in
pension-led funding and other types of business finance. However, in 2013, the
UK Intellectual Property Office
The Intellectual Property Office of the United Kingdom (often referred to as the UK IPO) is, since 2 April 2007, the operating name of The Patent Office. It is the official government body responsible for intellectual property rights in the UK ...
stated: "There are millions of intangible business assets whose value is either not being leveraged at all, or only being leveraged inadvertently".
Economic growth
The WIPO treaty and several related international agreements underline that the protection of intellectual property rights is essential to maintaining economic growth. The ''WIPO Intellectual Property Handbook'' gives two reasons for intellectual property laws:
One is to give statutory expression to the moral and economic rights of creators in their creations and the rights of the public in access to those creations. The second is to promote, as a deliberate act of Government policy, creativity and the dissemination and application of its results and to encourage fair trading which would contribute to economic and social development.
The
Anti-Counterfeiting Trade Agreement
es, Acuerdo Comercial Anti-Falsificación
, image = Anti-Counterfeiting Trade Agreement map (English).svg
, image_width = 260
, caption =
, type = Plurilateral agreement
, date_drafted ...
(ACTA) states that "effective enforcement of intellectual property rights is critical to sustaining economic growth across all industries and globally".
Economists estimate that two-thirds of the value of large businesses in the United States can be traced to intangible assets. "IP-intensive industries" are estimated to generate 72% more
value added
In business, total value added is calculated by tabulating the unit value added (measured by summing unit profit sale price and production cost">Price.html" ;"title="he difference between Price">sale price and production cost], unit depreciation ...
(price minus material cost) per employee than "non-IP-intensive industries".
A joint research project of the
WIPO
The World Intellectual Property Organization (WIPO; french: link=no, Organisation mondiale de la propriété intellectuelle (OMPI)) is one of the 15 specialized agencies of the United Nations (UN). Pursuant to the 1967 Convention Establishin ...
and the
United Nations University
The (UNU) is the think tank and academic arm of the United Nations. Headquartered in Shibuya, Tokyo, Japan, with diplomatic status as a UN institution, its mission is to help resolve global issues related to human development and welfare thr ...
measuring the impact of IP systems on six Asian countries found "a positive correlation between the strengthening of the IP system and subsequent economic growth."
Morality
According to Article 27 of the
Universal Declaration of Human Rights
The Universal Declaration of Human Rights (UDHR) is an international document adopted by the United Nations General Assembly that enshrines the rights and freedoms of all human beings. Drafted by a UN committee chaired by Eleanor Roosevelt, ...
, "everyone has the right to the protection of the moral and material interests resulting from any scientific, literary or artistic production of which he is the author". Although the relationship between intellectual property and
human rights
Human rights are moral principles or normsJames Nickel, with assistance from Thomas Pogge, M.B.E. Smith, and Leif Wenar, 13 December 2013, Stanford Encyclopedia of PhilosophyHuman Rights Retrieved 14 August 2014 for certain standards of hu ...
is a complex one, there are moral arguments for intellectual property.
The arguments that justify intellectual property fall into three major categories. Personality theorists believe intellectual property is an extension of an individual. Utilitarians believe that intellectual property stimulates social progress and pushes people to further innovation. Lockeans argue that intellectual property is justified based on deservedness and hard work.
Various moral justifications for private property can be used to argue in favor of the morality of intellectual property, such as:
# ''Natural Rights/Justice Argument'': this argument is based on Locke's idea that a person has a natural right over the labour and products which are produced by their body. Appropriating these products is viewed as unjust. Although Locke had never explicitly stated that natural right applied to products of the mind, it is possible to apply his argument to intellectual property rights, in which it would be unjust for people to misuse another's ideas. Locke's argument for intellectual property is based upon the idea that laborers have the right to control that which they create. They argue that we own our bodies which are the laborers, this right of ownership extends to what we create. Thus, intellectual property ensures this right when it comes to production.
# ''Utilitarian-Pragmatic Argument'': according to this rationale, a society that protects private property is more effective and prosperous than societies that do not. Innovation and invention in 19th century America has been attributed to the development of the
patent
A patent is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an enabling disclosure of the invention."A ...
system. By providing innovators with "durable and tangible return on their investment of time, labor, and other resources", intellectual property rights seek to maximize social utility.
The presumption is that they promote public welfare by encouraging the "creation, production, and distribution of intellectual works".
Utilitarians argue that without intellectual property there would be a lack of incentive to produce new ideas. Systems of protection such as Intellectual property optimize social utility.
# ''"Personality" Argument'': this argument is based on a quote from
Hegel: "Every man has the right to turn his will upon a thing or make the thing an object of his will, that is to say, to set aside the mere thing and recreate it as his own". European intellectual property law is shaped by this notion that ideas are an "extension of oneself and of one's personality". Personality theorists argue that by being a creator of something one is inherently at risk and vulnerable for having their ideas and designs stolen and/or altered. Intellectual property protects these moral claims that have to do with personality.
Lysander Spooner
Lysander Spooner (January 19, 1808May 14, 1887) was an American individualist anarchist, abolitionist, entrepreneur, essayist, legal theorist, pamphletist, political philosopher, Unitarian and writer.
Spooner was a strong advocate of the labor ...
(1855) argues "that a man has a natural and absolute right—and if a natural and absolute, then necessarily a perpetual, right—of property, in the ideas, of which he is the discoverer or creator; that his right of property, in ideas, is intrinsically the same as, and stands on identically the same grounds with, his right of property in material things; that no distinction, of principle, exists between the two cases".
Writer
Ayn Rand argued in her book ''
Capitalism: The Unknown Ideal'' that the protection of intellectual property is essentially a moral issue. The belief is that the human mind itself is the source of wealth and survival and that all property at its base is intellectual property. To violate intellectual property is therefore no different morally than violating other property rights which compromises the very processes of survival and therefore constitutes an immoral act.
Infringement, misappropriation, and enforcement
Violation of intellectual property rights, called "infringement" with respect to patents, copyright, and trademarks, and "misappropriation" with respect to trade secrets, may be a breach of civil law or criminal law, depending on the type of intellectual property involved, jurisdiction, and the nature of the action.
As of 2011 trade in counterfeit copyrighted and trademarked works was a $600 billion industry worldwide and accounted for 5–7% of global trade.
[Miriam Bitton (2012]
Rethinking the Anti-Counterfeiting Trade Agreement's Criminal Copyright Enforcement Measures
The Journal of Criminal Law & Criminology 102(1):67–117
Patent infringement
Patent infringement typically is caused by using or selling a patented invention without permission from the patent holder, i.e. from the patent owner. The scope of the patented invention or the extent of protection is defined in the
claims
Claim may refer to:
* Claim (legal)
* Claim of Right Act 1689
* Claims-based identity
* Claim (philosophy)
* Land claim
* A ''main contention'', see conclusion of law
* Patent claim
* The assertion of a proposition; see Douglas N. Walton
* A righ ...
of the granted patent. There is
safe harbor in many jurisdictions to use a patented invention for research. This safe harbor does not exist in the US unless the research is done for purely philosophical purposes, or in order to gather data in order to prepare an application for regulatory approval of a drug. In general, patent infringement cases are handled under civil law (e.g., in the United States) but several jurisdictions incorporate infringement in criminal law also (for example, Argentina, China, France, Japan, Russia, South Korea).
Copyright infringement
Copyright infringement is reproducing, distributing, displaying or performing a
work
Work may refer to:
* Work (human activity), intentional activity people perform to support themselves, others, or the community
** Manual labour, physical work done by humans
** House work, housework, or homemaking
** Working animal, an animal t ...
, or to make
derivative works, without permission from the copyright holder, which is typically a publisher or other business representing or assigned by the work's creator. It is often called "piracy".
While copyright is created the instant a work is fixed, generally the copyright holder can only get money damages if the owner registers the copyright. Enforcement of copyright is generally the responsibility of the copyright holder.
The
ACTA trade agreement, signed in May 2011 by the United States, Japan, Switzerland, and the EU, and which has not entered into force, requires that its parties add criminal penalties, including incarceration and fines, for copyright and trademark infringement, and obligated the parties to actively police for infringement.
[Irina D. Manta Spring 201]
The Puzzle of Criminal Sanctions for Intellectual Property Infringement
Harvard Journal of Law & Technology 24(2):469–518 There are
limitations and exceptions to copyright
Limitations and exceptions to copyright are provisions, in local copyright law or the Berne Convention, which allow for copyrighted works to be used without a license from the copyright owner.
Limitations and exceptions to copyright relate to a ...
, allowing limited use of copyrighted works, which does not constitute infringement. Examples of such doctrines are the
fair use
Fair use is a doctrine in United States law that permits limited use of copyrighted material without having to first acquire permission from the copyright holder. Fair use is one of the limitations to copyright intended to balance the interests ...
and
fair dealing
Fair dealing is a limitation and exception to the exclusive rights granted by copyright law to the author of a creative work. Fair dealing is found in many of the common law jurisdictions of the Commonwealth of Nations.
Fair dealing is an en ...
doctrine.
Trademark infringement
Trademark infringement occurs when one party uses a trademark that is identical or
confusingly similar to a trademark owned by another party, in relation to products or services which are identical or similar to the products or services of the other party. In many countries, a trademark receives protection without registration, but registering a trademark provides legal advantages for enforcement. Infringement can be addressed by civil litigation and, in several jurisdictions, under criminal law.
Trade secret misappropriation
Trade secret misappropriation is different from violations of other intellectual property laws, since by definition trade secrets are secret, while patents and registered copyrights and trademarks are publicly available. In the United States, trade secrets are protected under state law, and states have nearly universally adopted the
Uniform Trade Secrets Act
The Uniform Trade Secrets Act (UTSA), published by the Uniform Law Commission (ULC) in 1979 and amended in 1985, is a Uniform Act promulgated for adoption by states in the United States. One goal of the UTSA is to make the state laws governing tra ...
. The United States also has federal law in the form of the
Economic Espionage Act of 1996
The Economic Espionage Act of 1996 () was a 6 title Act of Congress dealing with a wide range of issues, including not only industrial espionage (''e.g.'', the theft or misappropriation of a trade secret and the National Information Infrastructu ...
(), which makes the theft or misappropriation of a trade secret a federal crime. This law contains two provisions criminalizing two sorts of activity. The first, , criminalizes the theft of trade secrets to benefit foreign powers. The second, , criminalizes their theft for commercial or economic purposes. (The statutory penalties are different for the two offenses.) In
Commonwealth common law
In law, common law (also known as judicial precedent, judge-made law, or case law) is the body of law created by judges and similar quasi-judicial tribunals by virtue of being stated in written opinions."The common law is not a brooding omnipres ...
jurisdictions, confidentiality and trade secrets are regarded as an
equitable right rather than a
property
Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner of property may have the right to consume, alter, share, r ...
right but penalties for theft are roughly the same as in the United States.
Criticisms
The term "intellectual property"
Criticism of the term ''intellectual property'' ranges from discussing its vagueness and abstract overreach to direct contention to the semantic validity of using words like ''property'' and ''rights'' in fashions that contradict practice and law. Many detractors think this term specially serves the doctrinal agenda of parties opposing reform in the public interest or otherwise abusing related legislations, and that it disallows intelligent discussion about specific and often unrelated aspects of copyright, patents, trademarks, etc.
Free Software Foundation
The Free Software Foundation (FSF) is a 501(c)(3) non-profit organization founded by Richard Stallman on October 4, 1985, to support the free software movement, with the organization's preference for software being distributed under copyleft (" ...
founder
Richard Stallman
Richard Matthew Stallman (; born March 16, 1953), also known by his initials, rms, is an American free software movement activist and programmer. He campaigns for software to be distributed in such a manner that its users have the freedom to ...
argues that, although the term ''intellectual property'' is in wide use, it should be rejected altogether, because it "systematically distorts and confuses these issues, and its use was and is promoted by those who gain from this confusion". He claims that the term "operates as a catch-all to lump together disparate laws
hich
Ij ( fa, ايج, also Romanized as Īj; also known as Hich and Īch) is a village in Golabar Rural District, in the Central District of Ijrud County, Zanjan Province, Iran
Iran, officially the Islamic Republic of Iran, and also ...
originated separately, evolved differently, cover different activities, have different rules, and raise different public policy issues" and that it creates a "bias" by confusing these monopolies with ownership of limited physical things, likening them to "property rights".
Stallman advocates referring to copyrights, patents and trademarks in the singular and warns against abstracting disparate laws into a collective term. He argues that "to avoid spreading unnecessary bias and confusion, it is best to adopt a firm policy not to speak or even think in terms of 'intellectual property'."
Similarly, economists
Boldrin and
Levine Levine (French transliteration from Russian) / Levin (surname), Levin (English transliteration from Russian Левин) is a common Jewish language, Jewish (Ashkenazi Jewish) surname. Levinsky is a variation with the same meaning (see French version ...
prefer to use the term "intellectual monopoly" as a more appropriate and clear definition of the concept, which, they argue, is very dissimilar from property rights. They further argued that "stronger patents do little or nothing to encourage innovation", mainly explained by its tendency to create market monopolies, thereby restricting further innovations and technology transfer.
On the assumption that intellectual property rights are actual rights, Stallman says that this claim does not live to the historical intentions behind these laws, which in the case of copyright served as a censorship system, and later on, a regulatory model for the printing press that may have benefited authors incidentally, but never interfered with the freedom of average readers. Still referring to copyright, he cites legal literature such as the United States Constitution and
case law to demonstrate that the law is meant to be an optional and experimental bargain to temporarily trade property rights and free speech for public, not private, benefits in the form of increased artistic production and knowledge. He mentions that "if copyright were a natural right nothing could justify terminating this right after a certain period of time".
Law professor, writer and political activist
Lawrence Lessig
Lester Lawrence Lessig III (born June 3, 1961) is an American academic, attorney, and political activist. He is the Roy L. Furman Professor of Law at Harvard Law School and the former director of the Edmond J. Safra Center for Ethics at Harvard ...
, along with many other
copyleft
Copyleft is the legal technique of granting certain freedoms over copies of copyrighted works with the requirement that the same rights be preserved in derivative works. In this sense, ''freedoms'' refers to the use of the work for any purpose ...
and free software activists, has criticized the implied analogy with physical property (like land or an automobile). They argue such an analogy fails because physical property is generally rivalrous while intellectual works are non-rivalrous (that is, if one makes a copy of a work, the enjoyment of the copy does not prevent enjoyment of the original).
Other arguments along these lines claim that unlike the situation with tangible property, there is
no natural scarcity of a particular idea or information: once it exists at all, it can be re-used and duplicated indefinitely without such re-use diminishing the original.
Stephan Kinsella
Norman Stephan Kinsella (; born 1965) is an American intellectual property lawyer, author, and deontological anarcho-capitalist. His legal works have been published by Oxford University Press, Oceana Publications, Mises InstituteQuid Pro Book ...
has objected to ''intellectual property'' on the grounds that the word "property" implies scarcity, which may not be applicable to ideas.
Entrepreneur and politician
Rickard Falkvinge
Rick Falkvinge (born Dick Greger Augustsson on 21 January 1972) is a Swedish information technology entrepreneur and founder of the Swedish Pirate Party. He is currently a political evangelist with the party, spreading the ideas across the worl ...
and
hacker
A hacker is a person skilled in information technology who uses their technical knowledge to achieve a goal or overcome an obstacle, within a computerized system by non-standard means. Though the term ''hacker'' has become associated in popu ...
Alexandre Oliva have independently compared George Orwell's fictional dialect
Newspeak
Newspeak is the fictional language of Oceania, a totalitarian superstate that is the setting of the 1949 dystopian novel ''Nineteen Eighty-Four'', by George Orwell. In the novel, the Party created Newspeak to meet the ideological requirements ...
to the terminology used by intellectual property supporters as a linguistic weapon to shape public opinion regarding copyright debate and
DRM
DRM may refer to:
Government, military and politics
* Defense reform movement, U.S. campaign inspired by Col. John Boyd
* Democratic Republic of Madagascar, a former socialist state (1975–1992) on Madagascar
* Direction du renseignement milita ...
.
Alternative terms
In
civil law jurisdictions, intellectual property has often been referred to as
intellectual rights
Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, ...
, traditionally a somewhat broader concept that has included
moral rights
Moral rights are rights of creators of copyrighted works generally recognized in civil law jurisdictions and, to a lesser extent, in some common law jurisdictions.
The moral rights include the right of attribution, the right to have a work ...
and other personal protections that cannot be bought or sold. Use of the term ''intellectual rights'' has declined since the early 1980s, as use of the term ''intellectual property'' has increased.
Alternative terms ''monopolies on information'' and ''intellectual monopoly'' have emerged among those who argue against the "property" or "intellect" or "rights" assumptions, notably
Richard Stallman
Richard Matthew Stallman (; born March 16, 1953), also known by his initials, rms, is an American free software movement activist and programmer. He campaigns for software to be distributed in such a manner that its users have the freedom to ...
. The
backronym
A backronym is an acronym formed from an already existing word by expanding its letters into the words of a phrase. Backronyms may be invented with either serious or humorous intent, or they may be a type of false etymology or folk etymology. The ...
s ''intellectual protectionism'' and ''intellectual poverty'', whose initials are also ''IP'', have found supporters as well, especially among those who have used the backronym ''
digital restrictions management
Digital rights management (DRM) is the management of legal access to digital content. Various tools or technological protection measures (TPM) such as access control technologies can restrict the use of proprietary hardware and copyrighted works. ...
''.
The argument that an intellectual property right should (in the interests of better balancing of relevant private and public interests) be termed an ''intellectual monopoly privilege'' (IMP) has been advanced by several academics including Birgitte Andersen and
Thomas Alured Faunce
Thomas may refer to:
People
* List of people with given name Thomas
* Thomas (name)
* Thomas (surname)
* Saint Thomas (disambiguation)
* Thomas Aquinas (1225–1274) Italian Dominican friar, philosopher, and Doctor of the Church
* Thomas the A ...
.
Objections to overly broad intellectual property laws
Some critics of intellectual property, such as those in the
free culture movement, point at intellectual monopolies as harming health (in the case of
pharmaceutical patent
A chemical patent, pharmaceutical patent or drug patent is a patent for an invention in the chemical industry, chemical or pharmaceuticals industry. Strictly speaking, in most jurisdictions, there are essentially no differences between the legal ...
s), preventing progress, and benefiting concentrated interests to the detriment of the masses, and argue that the public interest is harmed by ever-expansive monopolies in the form of
copyright extension
A copyright is a type of intellectual property that gives its owner the exclusive right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, education ...
s,
software patents
A software patent is a patent on a piece of software, such as a computer program, libraries, user interface, or algorithm.
Background
A patent is a set of exclusionary rights granted by a state to a patent holder for a limited period of time, u ...
, and
business method patents
Business method patents are a class of patents which disclose and claim new methods of doing business. This includes new types of e-commerce, insurance, banking and tax compliance etc. Business method patents are a relatively new species of paten ...
. More recently scientists and engineers are expressing concern that
patent thickets
A patent thicket is "an overlapping set of patent rights" which requires innovators to reach licensing deals for multiple patents. This concept is associated with negative connotations and has been described as "a dense web of overlapping intellec ...
are undermining technological development even in high-tech fields like
nanotechnology.
Petra Moser has asserted that historical analysis suggests that intellectual property laws may harm innovation:
Overall, the weight of the existing historical evidence suggests that patent policies, which grant strong intellectual property rights to early generations of inventors, may discourage innovation. On the contrary, policies that encourage the diffusion of ideas and modify patent laws to facilitate entry and encourage competition may be an effective mechanism to encourage innovation.
In support of that argument,
Jörg Baten
Jörg Baten (born 24 June 1965 in Hamburg) is a German economic historian. He is the former President of the European Historical Economics Society, current co-Editor-in-chief of Economics and Human Biology and is currently a professor of economic ...
, Nicola Bianchi and Petra Moser find historical evidence that especially compulsory licensing – which allows governments to license patents without the consent of patent-owners – encouraged invention in Germany in the early 20th century by increasing the threat of competition in fields with low pre-existing levels of competition.
Peter Drahos Professor Peter Drahos is an Australian academic and researcher specializing in the areas of intellectual property and global business regulation amongst others. He is the Director of the Centre for Governance of Knowledge and Development and was fo ...
notes, "Property rights confer authority over resources. When authority is granted to the few over resources on which the many depend, the few gain power over the goals of the many. This has consequences for both political and economic freedom within a society."
The
World Intellectual Property Organization
The World Intellectual Property Organization (WIPO; french: link=no, Organisation mondiale de la propriété intellectuelle (OMPI)) is one of the 15 specialized agencies of the United Nations (UN). Pursuant to the 1967 Convention Establishi ...
(WIPO) recognizes that conflicts may exist between the respect for and implementation of current intellectual property systems and other human rights. In 2001 the UN
Committee on Economic, Social and Cultural Rights The Committee on Economic, Social and Cultural Rights (CESCR) is a United Nations is a 18-member Committee, entrusted with overseeing implementation of the International Covenant on Economic, Social and Cultural Rights (ICESCR).
It meets (usually t ...
issued a document called "Human rights and intellectual property" that argued that intellectual property tends to be governed by economic goals when it should be viewed primarily as a social product; in order to serve human well-being, intellectual property systems must respect and conform to human rights laws. According to the Committee, when systems fail to do so, they risk infringing upon the human right to food and health, and to cultural participation and scientific benefits. In 2004 the General Assembly of WIPO adopted ''The Geneva Declaration on the Future of the World Intellectual Property Organization'' which argues that WIPO should "focus more on the needs of developing countries, and to view IP as one of many tools for development—not as an end in itself".
Ethical problems are most pertinent when socially valuable goods like life-saving medicines are given IP protection. While the application of IP rights can allow companies to charge higher than the marginal cost of production in order to recoup the costs of research and development, the price may exclude from the market anyone who cannot afford the cost of the product, in this case a life-saving drug.
"An IPR driven regime is therefore not a regime that is conductive to the investment of R&D of products that are socially valuable to predominately poor populations".
Libertarians have
differing views on intellectual property.
Stephan Kinsella
Norman Stephan Kinsella (; born 1965) is an American intellectual property lawyer, author, and deontological anarcho-capitalist. His legal works have been published by Oxford University Press, Oceana Publications, Mises InstituteQuid Pro Book ...
, an
anarcho-capitalist
Anarcho-capitalism (or, colloquially, ancap) is an anti-statist, libertarian, and anti-political philosophy and economic theory that seeks to abolish centralized states in favor of stateless societies with systems of private property enfo ...
on the
right-wing of libertarianism, argues against intellectual property because allowing property rights in ideas and information creates
artificial scarcity
Artificial scarcity is scarcity of items despite the technology for production or the sufficient capacity for sharing. The most common causes are monopoly pricing structures, such as those enabled by laws that restrict competition or by high fi ...
and infringes on the right to own tangible property. Kinsella uses the following scenario to argue this point:
agine the time when men lived in caves. One bright guy—let's call him Galt-Magnon—decides to build a log cabin on an open field, near his crops. To be sure, this is a good idea, and others notice it. They naturally imitate Galt-Magnon, and they start building their own cabins. But the first man to invent a house, according to IP advocates, would have a right to prevent others from building houses on their own land, with their own logs, or to charge them a fee if they do build houses. It is plain that the innovator in these examples becomes a partial owner of the tangible property (e.g., land and logs) of others, due not to first occupation and use of that property (for it is already owned), but due to his coming up with an idea. Clearly, this rule flies in the face of the first-user homesteading rule, arbitrarily and groundlessly overriding the very homesteading rule that is at the foundation of all property rights.
Thomas Jefferson
Thomas Jefferson (April 13, 1743 – July 4, 1826) was an American statesman, diplomat, lawyer, architect, philosopher, and Founding Father who served as the third president of the United States from 1801 to 1809. He was previously the natio ...
once said in a letter to Isaac McPherson on 13 August 1813:
If nature has made any one thing less susceptible than all others of exclusive property, it is the action of the thinking power called an idea, which an individual may exclusively possess as long as he keeps it to himself; but the moment it is divulged, it forces itself into the possession of every one, and the receiver cannot dispossess himself of it. Its peculiar character, too, is that no one possesses the less, because every other possesses the whole of it. He who receives an idea from me, receives instruction himself without lessening mine; as he who lights his taper
Taper may refer to:
* Part of an object in the shape of a cone (conical)
* Taper (transmission line), a transmission line gradually increasing or decreasing in size
* Fishing rod taper, a measure of the flexibility of a fishing rod
* Conically t ...
at mine, receives light without darkening me.
In 2005 the
Royal Society of Arts launched the
Adelphi Charter, aimed at creating an international policy statement to frame how governments should make balanced intellectual property law.
Another aspect of current U.S. Intellectual Property legislation is its focus on individual and joint works; thus, copyright protection can only be obtained in 'original' works of authorship. Critics like Philip Bennet argue that this does not provide adequate protection against
cultural appropriation of indigenous knowledge, for which a
collective IP regime is needed.
Intellectual property law has been criticized as not recognizing new forms of art such as the
remix culture
Remix culture, sometimes read-write culture, is a term describing a society that allows and encourages derivative works by combining or editing existing materials to produce a new creative work or product. A remix culture would be, by default, pe ...
, whose participants often commit what technically constitutes violations of such laws, creation works such as
anime music video
An anime music video (AMV) is a fan-made music video consisting of clips from one or more Japanese animated shows or movies set to an audio track, often songs or promotional trailer audio. The term is generally specific to Japanese anime, howev ...
s and others, or are otherwise subject to unnecessary burdens and limitations which prevent them from fully expressing themselves.
Objections to the expansion in nature and scope of intellectual property laws
Other criticism of intellectual property law concerns the expansion of intellectual property, both in duration and in scope.
As scientific knowledge has expanded and allowed new industries to arise in fields such as biotechnology and nanotechnology, originators of technology have sought IP protection for the new technologies. Patents have been granted for living organisms, and in the United States,
certain living organisms have been patentable for over a century.
The increase in terms of protection is particularly seen in relation to copyright, which has recently been the subject of serial extensions
in the United States and
in Europe.
With no need for registration or copyright notices, this is thought to have led to an increase in
orphan works
An orphan work is a copyright-protected work for which rightsholders are positively indeterminate or uncontactable. Sometimes the names of the originators or rightsholders are known, yet it is impossible to contact them because additional details ...
(copyrighted works for which the copyright owner cannot be contacted), a problem that has been noticed and addressed by governmental bodies around the world.
Also with respect to copyright, the American film industry helped to change the social construct of intellectual property via its trade organization, the
Motion Picture Association of America
The Motion Picture Association (MPA) is an American trade association representing the five major film studios of the United States, as well as the video streaming service Netflix. Founded in 1922 as the Motion Picture Producers and Distrib ...
(MPAA). In amicus briefs in important cases, in lobbying before Congress, and in its statements to the public, the MPAA has advocated strong protection of intellectual property rights. In framing its presentations, the association has claimed that people are entitled to the property that is produced by their labor. Additionally Congress's awareness of the position of the United States as the world's largest producer of films has made it convenient to expand the conception of intellectual property. These doctrinal reforms have further strengthened the industry, lending the MPAA even more power and authority.
The growth of the
Internet
The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, pub ...
, and particularly distributed search engines like
Kazaa and
Gnutella
Gnutella is a peer-to-peer network protocol. Founded in 2000, it was the first decentralized peer-to-peer network of its kind, leading to other, later networks adopting the model.
In June 2005, Gnutella's population was 1.81 million compute ...
, have represented a challenge for copyright policy. The
Recording Industry Association of America, in particular, has been on the front lines of the fight against
copyright infringement
Copyright infringement (at times referred to as piracy) is the use of works protected by copyright without permission for a usage where such permission is required, thereby infringing certain exclusive rights granted to the copyright holder, s ...
, which the industry calls "piracy". The industry has had victories against some services, including a highly publicized case against the file-sharing company
Napster, and some people have been prosecuted for sharing files in violation of copyright. The electronic age has seen an increase in the attempt to use software-based
digital rights management tools to restrict the copying and use of digitally based works. Laws such as the
Digital Millennium Copyright Act
The Digital Millennium Copyright Act (DMCA) is a 1998 United States copyright law that implements two 1996 treaties of the World Intellectual Property Organization (WIPO). It criminalizes production and dissemination of technology, devices, or ...
have been enacted that use criminal law to prevent any circumvention of software used to enforce digital rights management systems. Equivalent provisions, to prevent circumvention of copyright protection have existed in EU for some time, and are being expanded in, for example, Article 6 and 7 the
Copyright Directive
The copyright law of the European Union is the copyright law applicable within the European Union. Copyright law is largely harmonized in the Union, although country to country differences exist. The body of law was implemented in the EU through ...
. Other examples are Article 7 of the Software Directive of 1991 (91/250/EEC), and the
Conditional Access Directive
Directive 98/84/EC of the European Parliament and of the Council of 20 November 1998 on the legal protection of services based on, or consisting of, conditional access is a European Union directive in the field of intellectual property law, made ...
of 1998 (98/84/EEC). This can hinder legal uses, affecting
public domain
The public domain (PD) consists of all the creative work to which no exclusive intellectual property rights apply. Those rights may have expired, been forfeited, expressly waived, or may be inapplicable. Because those rights have expired, ...
works,
limitations and exceptions to copyright
Limitations and exceptions to copyright are provisions, in local copyright law or the Berne Convention, which allow for copyrighted works to be used without a license from the copyright owner.
Limitations and exceptions to copyright relate to a ...
, or uses allowed by the copyright holder. Some
copyleft
Copyleft is the legal technique of granting certain freedoms over copies of copyrighted works with the requirement that the same rights be preserved in derivative works. In this sense, ''freedoms'' refers to the use of the work for any purpose ...
licenses, like the
GNU GPL 3
The GNU General Public License (GNU GPL or simply GPL) is a series of widely used free software licenses that guarantee end users the four freedoms to run, study, share, and modify the software. The license was the first copyleft for general us ...
, are designed to counter this. Laws may permit circumvention under specific conditions, such as when it is necessary to achieve interoperability with the circumventor's program, or for
accessibility reasons; however, distribution of circumvention tools or instructions may be illegal.
In the context of trademarks, this expansion has been driven by international efforts to harmonise the definition of "trademark", as exemplified by the
ratified in 1994, which formalized regulations for IP rights that had been handled by common law, or not at all, in member states. Pursuant to TRIPs, any
sign which is "capable of distinguishing" the products or services of one business from the products or services of another business is capable of constituting a trademark.
Use in corporate tax avoidance
Intellectual property has become a core tool in corporate tax planning and
tax avoidance
Tax avoidance is the legal usage of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable by means that are within the law. A tax shelter is one type of tax avoidance, and tax havens are jurisdi ...
.
[Intellectual property (IP) has become the leading tax-avoidance vehicle.] IP is a key component of the leading multinational tax avoidance
base erosion and profit shifting
Base erosion and profit shifting (BEPS) refers to corporate tax planning strategies used by multinationals to "shift" profits from higher-tax jurisdictions to lower-tax jurisdictions or no-tax locations where there is little or no economic ...
(BEPS) tools,
which the OECD estimates costs $100–240 billion in lost annual tax revenues.
In 2017–2018, both the U.S. and the EU Commission simultaneously decided to depart from the
OECD BEPS Project timetable, which was set up in 2013 to combat IP BEPS tax tools like the above,
and launch their own anti-IP BEPS tax regimes:
* U.S.
Tax Cuts and Jobs Act of 2017
The Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, , is a congressional revenue act of the United States originally introduced in Congress as the Tax Cuts and Jobs A ...
, which has several anti-IP BEPS abuse tax regimes, including GILTI tax and the BEAT tax regimes.
* EU Commission 2018 Digital Services Tax, which is less advanced than the U.S. TCJA, but does seek to override IP BEPS tools via a quasi-VAT.
The departure of the U.S. and EU Commission from the OECD BEPS Project process, is attributed to frustrations with the rise in IP as a key BEPS tax tool, creating intangible assets, which are then turned into royalty payment BEPS schemes (double Irish), and/or
capital allowance Capital allowances is the practice of allowing tax payers to get tax relief on capital expenditure by allowing it to be deducted against their annual taxable income. Generally, expenditure qualifying for capital allowances will be incurred on speci ...
BEPS schemes (capital allowances for intangibles). In contrast, the OECD has spent years developing and advocating intellectual property as a legal and a GAAP accounting concept.
Gender gap in intellectual property
Women have historically been underrepresented in the creation and ownership of intellectual property covered by intellectual property rights. According to the World Intellectual Property Organization, women composed only 16.5% of patent holders even as recently as 2020. This disparity is the result of several factors including systemic bias, sexism and discrimination within the intellectual property space, underrepresentation within
STEM, and barriers to access of necessary finance and knowledge in order to obtain intellectual property rights, among other reasons.
See also
*
Copyfraud
A copyfraud is a false copyright claim by an individual or institution with respect to content that is in the public domain. Such claims are wrongful, at least under US and Australian copyright law, because material that is not copyrighted is f ...
*
Defensive publication
A defensive publication, or defensive disclosure, is an intellectual property strategy used to prevent another party from obtaining a patent on a product, apparatus or method for instance. The strategy consists in disclosing an enabling descriptio ...
*
Freedom of information
Freedom of information is freedom of a person or people to publish and consume information. Access to information is the ability for an individual to seek, receive and impart information effectively. This sometimes includes "scientific, Indigeno ...
*
Information policy
Information policy is the set of all public laws, regulations and policies that encourage, discourage, or regulate the creation, use, storage, access, and communication and dissemination of information. It thus encompasses any other decision-makin ...
*
Libertarian perspectives on intellectual property
libertarianism, Libertarians have differing opinions on the validity of intellectual property.
Political parties
The Libertarian Party of Canada takes "a moderate approach to patents and copyrights", calling for "a careful review of existing and ...
*
New product development
In business and engineering, new product development (NPD) covers the complete process of bringing a new product to market, renewing an existing product or introducing a product in a new market. A central aspect of NPD is product design, along ...
*
Sweat of the brow
Sweat of the brow is an intellectual property law doctrine that is chiefly related to copyright law. According to this doctrine, an author gains rights through simple diligence during the creation of a work, such as a database, or a directory. ...
References
Citations
Sources
* Arai, Hisamitsu. "Intellectual Property Policies for the Twenty-First Century: The Japanese Experience in Wealth Creation", WIPO Publication Number 834 (E). 2000
wipo.int* Bettig, R. V. (1996). Critical Perspectives on the History and Philosophy of Copyright. In R. V. Bettig, Copyrighting Culture: The Political Economy of Intellectual Property. (pp. 9–32). Boulder, CO: Westview Press.
* Boldrin, Michele and David K. Levine. "Against Intellectual Monopoly", 2008
dkleving.com* Hahn, Robert W., ''Intellectual Property Rights in Frontier Industries: Software and Biotechnology'', AEI Press, March 2005.
* Branstetter, Lee, Raymond Fishman and C. Fritz Foley. "Do Stronger Intellectual Property Rights Increase International Technology Transfer? Empirical Evidence from US Firm-Level Data". NBER Working Paper 11516. July 2005
weblog.ipcentral.info* Connell, Shaun. "Intellectual Ownership". October 2007
rebithofffreedom.org* De George, Richard T. "14. Intellectual Property Rights." In ''The Oxford Handbook of Business Ethics'', by George G. Brenkert and Tom L. Beauchamp, 1:408–439. 1st ed. Oxford, England: Oxford University Press, n.d.
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