MSc-IT Study Material
June 2010 Edition

Computer Science Department, University of Cape Town
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Chapter 6. Property Rights and Software

Table of Contents

Scenarios
Scenario 1: Pirated Software from Abroad
Scenario 2: Stealing an Idea
Scenario 3: Improving Software
Some Definitions
Current Legal Position
Copyright versus Patent Laws
Copyright
Trade Secrecy Laws
Patent Protection
Software and Patents
Software as Property
Is it wrong to copy proprietary software?
Fair Use in the Electronic Age
Answers and Discussions
Discussion of Activity 5
Discussion of Activity 6

Scenarios

Scenario 1: Pirated Software from Abroad

Bernie works for a large consulting company. When he was on holiday in South East Asia he found an Office suit that looks identical to Microsoft Office. The package he found costs R50 compared to the price tag of R3000 back home. Bernie knew that the seller does not honour US copyright law. Despite the documentation looking like it has been photocopied, he decided to buy it and returned home with it.

Activity 1

Do you think Bernie has done anything wrong? Do you think the customs will confiscate it should they find out? Discuss.

Scenario 2: Stealing an Idea

It is 1980 and Bingo software has just developed a new operating system called BOS. BOS is better than anything else around but Bingo is a small firm and needed venture capitol to start up. It spent 3 years bringing the product to the market, after which it launched and sold well for a year. At this point, it has recovered about 25% of initial investments. Pirate Pete entered the market with PPOS which is cheaper and has more features than BOS – but it appears to be a copied or slightly modified version of BOS. In addition to this, copying of BOS is rampant with customers making copies. Bingo did not last long and went bankrupt within a year.

Activity 2

Do you think that this is unfair? Has PPOS wronged Bingo? Have the customers wronged Bingo? Discuss.

Scenario 3: Improving Software

Earl develops a virus tester which is very good. It detects and repairs all known viruses. He makes the software and its source code available on the web for free and he also publishes an article on it. Jake reads the article and downloads a copy. He figures out how it works, downloads the source code and makes several changes to enhance it. After this, Jake sends Earl a copy of the modified software together with an explanation. Jake then puts a copy on the web, explains what he has done and gives appropriate credit to Earl.

Activity 3

Discuss whether or not you think Earl or Jake has done anything wrong?

Activity 4

There are some issues that you should think about before proceeding further. Write down any thoughts you might have on each of the following:

  • Distinction between hardware and software is often blurred.

  • Macro issues – should software be owned? Should it be protected like property?

  • Micro issues – are (unauthorised) copies illegal? (Ultimately it will be argued that copying is wrong because it is illegal not because there is some pre-legal immorality involved in the act.)

  • Legal and moral issues – descriptive (what the law says) versus normative (what the law should say)