Intellectual Property

Intellectual Property; Copyright; Patient;

Trade Secrets; Intellectual Property Issues
Plagiarism, Reverse Engineering, Open-
Source Code, Competitive Intelligence,
Trademark Infringement, and Cybersquatting
WHAT IS INTELLECTUAL PROPERTY?
IP refers to creations of the mind, such as inventions, literary and artistic works,
symbols, names, images, and designs used in commerce.

Purpose: Protects creators' rights, encourages innovation and creativity, and

provides economic benefits.

Types: Copyright, Patent, Trademark, Trade Secret.

Subtopics: Copyright, Patents, Trade Secrets, Plagiarism, Reverse Engineering,
Open-Source Code, Competitive Intelligence, Trademark Infringement,
Cybersquatting
• Copyright
• Definition: Legal right granting the creator of an original work exclusive rights
to its use and distribution, usually for a limited time.
• Purpose: Protects authors, artists, and creators against unauthorized use.
• Examples:
• Music: Unauthorized copying or distribution of songs, e.g., Napster’s copyright
lawsuits.
• Software: Illegal duplication of software like Microsoft Windows or Adobe Creative
Suite.
• Key Aspects:
• Fair Use: Limited use for commentary, criticism, news reporting, and educational
purposes.
• Public Domain: Works not protected by copyright or those whose copyright has
expired.
• Public Domain
• the copyright has expired
• the copyright owner failed to follow copyright renewal rules
• the copyright owner deliberately places it in the public domain,
known as “dedication,” or
• copyright law does not protect this type of work
• Rights Granted by Copyright
• Exclusive Rights: Owners can control the reproduction, distribution, and
creation of derivative works.
• Transferable: Copyright holders can license or transfer these rights to others.
• Adaptability: Expands to cover new forms, including audiovisual works (1976
Act) and computer software.
• Copyright Infringement
• Definition: Unauthorized copying of a significant part of a copyrighted work.
• Penalties: Range from $200 for innocent infringement to $100,000 for willful
infringement.
• Court Discretion: Courts have significant leeway in determining damages.
• Copyright law in Nepal is governed by the Copyright Act, 2059 (2002)
• Scope of Protection
• The Act protects a range of intellectual creations, including literary, musical,
artistic works, cinematographic films, and software.
• Both published and unpublished works are covered.
• The law applies not only to Nepalese citizens but also provides reciprocal
protection for foreign works, aligning with international copyright
agreements.
• Duration of Copyright
• For most works, copyright lasts for the lifetime of the creator plus 50 years.
• For works created anonymously, pseudonymously, or by legal entities, the
duration is 50 years from the date of publication.
• Infringement and Penalties
• Unauthorized use of copyrighted material is considered an infringement.
• Penalties include fines and imprisonment, and infringing materials may be seized or destroyed.
• Rights holders may also seek compensation for damages.
• What are the Exclusive Rights?
• The original creators/authors of works, protected by copyright, have Exclusive Right to use or
authorize others to use the work on agreed terms. The following rights are the exclusive rights
provided to the creators/authors by
• Copyright:
• Right of reproduction.
• Right of translation.
• Right of adaption, arrangement and other alteration.
• Right of public performance.
• Right of broadcasting.
• Right of communication to the public.
• Right of distribution.
• Right of rental
• What are the Moral & Economic Rights?
• 1. Moral Rights: –
• Copyright Law protects the Moral Rights, which involve the right to claim
authorship of a work and the right to oppose changes to it that could harm the
creators' rights. It will not be transferred in any condition.
As per the Copyright Law owners/authors shall have the following moral rights:–
• Right of authorship.
• Right of disclosure.
• Right to make necessary amendment for improvement.
• Right concerning the works integrity
• Economic Rights: –
• Economic Rights are the creators' rights which can be transferred through the
written agreement to the business holders/users with clear provision regarding
the royalty/remuneration to the creators. Economic right of owners shall have
the exclusive rights to carry out the following aspects of works:–
• Right of Reproduction.
• Right of Broadcasting.
• Right of Public Performance.
• Right of Adaption.
• Right of Translation.
• Right of Public Recitation.
• Right of Public Display.
• Right of Distribution.
• PATENTS
• A patent is a type of intellectual property (IP) that grants the
owner exclusive rights to make, .use, and sell an invention for a
specified period
Purpose: Allows the patent holder to exclude others from making, using, or
selling the invention.
The patent system is governed by the Patent, Design and Trademark Act of
1965, which sets the legal framework for obtaining and enforcing patents in the
country
• Eligibility for Patents
• Both individuals and legal entities (e.g., companies) can apply for patents.
• Foreign nationals and companies can also apply for patents in Nepal, provided they appoint
a representative in Nepal.
• Patent Rights in Nepal
• Registering a patent in Nepal confers the following exclusive rights to the patent holder:
• Right to prevent others from making, using, offering for sale, selling or importing the
patented invention without permission

• Right to assign, transfer or license the patent rights to others

• Right to take legal action against infringers

• Requirements for Filing Patents in Nepal
• To file a patent application in Nepal, the following requirements must be met:
• The invention must be new, non-obvious and industrially applicable
• The applicant must be either the inventor or have acquired rights from the
inventor
• The application must include details of the invention, claims, drawings and
abstract
• The prescribed fees must be paid
• For foreign applicants, a Power of Attorney is required

• Procedure of Patent Registration in Nepal

• Step 1: Filing of Application at DOI
• Step 2: Formal Examination of Documents
• Step 3: Substantive Examination of Patent
• Step 4: Grant of Patent
• Duration of a Patent
• In Nepal, patents are valid for a period of 7 years from the filing date. The
patent can be extended once for an additional 7 years if the patent holder can
demonstrate the invention's continued utility and significance.
• After the maximum period of 21 years, the patent enters the public domain
and may be freely used by others.
• Penalties for Violation of Patent Rights
• The Patent Act prescribes penalties for infringement of patent rights in Nepal:
• Fine of up to NPR 500,000 for copying or using a registered patent without
permission
• Fine of up to NPR 250,000 for attempting or abetting patent infringement
• Confiscation of infringing goods/articles
• Registration of International Patents in Nepal
• Foreign patents can be registered in Nepal under the following
provisions:
• Nepal is a member of the Paris Convention, allowing priority claim of
patents filed in other member countries within 12 months
• Patent applications can be filed directly in Nepal by foreign applicants
• A certified copy of the foreign patent registration certificate must be
submitted
• The application and documents should be in English or Nepali language
• International Treaties
• Nepal is a member of the World Intellectual Property Organization (WIPO)
and has agreed to the Paris Convention for the Protection of Industrial
Property. However, it is not a member of the Patent Cooperation Treaty (PCT),
which limits the ability to use the PCT route for patent filings.

• Software Patent
• Covers inventions embodied in instructions executed by a computer.
• Controversy: Growing concerns over the impact of software patents on
development.
• Patent Disputes in Software Industry
• High-Profile Cases:
• Oracle vs. Google: Java-related patent claims.
• Apple vs. Samsung: Smartphone and tablet patents.
• Mformation vs. Research in Motion: Mobile device management patents.
• Google and Motorola Mobility: Acquisition partly for patent defense.
• Cross-Licensing Agreements
• Definition: Agreements where companies agree not to sue each other over
patents.
• Example: Apple and HTC entered a 10-year agreement.(multi touch patent)
• Impact on Small Firms: Smaller firms face challenges due to litigation costs
• Trade Secrets
• A trade secret is confidential information that gives a business
a competitive advantage
• Provides a competitive edge to businesses

• Characteristics of Trade Secrets

• Confidentiality: Must be exclusive to the entity and not publicly known
• Competitive Advantage: Gives the business an edge over competitors
• Unlimited Protection: Protected indefinitely as long as confidentiality is
maintained
• Types of Trade Secrets
• Commercial Information: Sales methods, client profiles, pricing, advertising
strategies
• Operational Information: Manufacturing processes, product designs, formulas,
know-how

• Protection of Trade Secrets

• No Formal Registration: Unlike patents or trademarks, trade secrets do not
require registration
• Automatic Protection: Similar to copyrights, protection starts from creation
• Key Elements of Trade Secret Protection
• Confidentiality: Essential to prevent unauthorized disclosure
• Economic Value: Information must provide a business advantage
• Reasonable Efforts to Protect: Need to implement security and confidentiality
measures
• Strategies to Protect Trade Secrets
• Confidentiality Agreements: Use NDAs with employees, partners, and vendors
• Access Control: Restrict access to sensitive information
• Employee Training: Educate employees about the importance of maintaining
confidentiality
• Document Security: Use physical and digital security measures for sensitive
data
• Advantages of Trade Secrets
• Unlimited Duration: As long as secrecy is maintained, trade secrets can last
indefinitely
• Flexibility: Protection covers a wide range of business information
• No Registration Costs: No fees or administrative burden associated with
registration
• Limitations and Risks
• Loss of Protection: If information is disclosed, protection is lost
• Risk of Reverse Engineering: Competitors may replicate the trade secret
through reverse engineering
• Legal Enforceability: Proving theft or unauthorized use in court can be
challenging
• Risks and Limitations of Trade Secrets
• Loss of Protection: Disclosure results in loss of exclusivity
• Vulnerability to Reverse Engineering: Competitors may replicate
• Challenging Enforcement: Proving unauthorized use in court can be difficult

• Example of trade secret

• Coco cola Recipe
• Google search algorithm
• KFC spices
• Listerine Formula
• Mc Donald big Mac Special Sauce
• Key IP Issues
• This section discusses several issues that apply to intellectual property and information
technology, including plagiarism, reverse engineering, open-source code, competitive
intelligence, trademark infringement, and cybersquatting.

1. Plagiarism
Plagiarism is the act of using someone else’s ideas, words, or work and presenting it as one’s
own without proper citation.

• Forms of Plagiarism:
• Direct Copying: Copying text or ideas directly from a source without acknowledgment.
• Paraphrasing without Attribution: Rewriting someone else's ideas in your own words
without credit.
• Self-Plagiarism: Reusing one’s own previous work without disclosure.
• Types of Plagiarism
• Global Plagiarism
• Definition: Submitting someone else's work as your own, typically an entire piece (e.g., an essay, report, or
project).
• Example: Submitting a purchased paper or an assignment written by someone else.
• Paraphrasing Plagiarism
• Definition: Rewriting someone else’s ideas or text in your own words without giving credit.
• Example: Changing the wording of a paragraph but maintaining the original idea without citing the source.
• Patchwork Plagiarism
• Definition: Combining phrases or sentences from multiple sources to create a new text without proper
citation.
• Example: Copying sentences from different articles and stitching them together without crediting the
sources.
• Self-Plagiarism
• Definition: Reusing your own previously submitted work without permission or proper acknowledgment.
• Example: Submitting the same research paper for multiple classes or publishing the same content in
different journals.
• Common Misconceptions:
• Some students believe that information on the internet is public and doesn't
require citation, which is incorrect.
• Misunderstandings around what needs citation, such as ideas, data, and creative
works.

• Causes and Consequences

1.Reasons for Plagiarism:
1. Pressure to achieve high grades.
2. Time constraints or lack of motivation.
3. Lack of understanding of proper citation.
2.Consequences of Plagiarism:
1. Academic penalties, including failing grades or expulsion.
2. Damage to reputation and credibility, especially in professional fields.
3. Potential legal consequences for copyright infringement.
• Plagiarism Beyond Academia
1.Professional Plagiarism:
1. Occurs in fields like journalism, literature, music, and software development, where
originality is critical.
• Tools to Detect and Prevent Plagiarism
1.Plagiarism Detection Software:
1. Tools like Turn-it-in, SafeAssign, iThenticate, and Glatt Plagiarism Services check
documents against large databases to detect similarities.
2. Example: Turnitin compares submissions with billions of web pages, archived student
papers, and academic sources.
2.Legal Precedent:
1. U.S. courts have ruled that using student papers in plagiarism detection software
constitutes "fair use," supporting its educational purpose.
• Preventive Measures
1.Educational Strategies:
1. Teach students what constitutes plagiarism and why it is unethical.
2. Show students how to properly cite sources, especially digital content.
2.Assignment Management:
1. Encourage drafts and portions of assignments due throughout the term to reduce last-
minute work that may lead to plagiarism.
2. Inform students about online paper mills and other sources, making it clear that
instructors are aware of these sources.
3.Utilizing Detection Tools:
1. Incorporate plagiarism detection tools into classroom activities, educating students on
their operation and consequences of misuse.
4.Developing Integrity:
1. Emphasize academic integrity, respect for intellectual property, and personal
responsibility in assignments.
Reverse Engineering
• Definition: The process of deconstructing a product to understand, replicate,
or improve it.
• Originally applied to hardware; now widely used in software.
• Purpose: Can be for learning, compatibility, or enhancement.

• Applications of Reverse Engineering in Software

• Purpose in Software:
• Analyzing code for higher-level abstraction.
• Adapting applications for different platforms (e.g., database migration).
• Benefits: Improves compatibility and helps maintain legacy system
• Industry Examples of Reverse Engineering
• Microsoft: Alleged reverse engineering of Apple's UI and OS features,
influencing DOS and early Windows.
• Bing vs. Google: Microsoft’s improvements in search results, allegedly similar to
Google's methods.
• Database Migration Example: Moving applications from Access to Oracle
through reverse-engineered code.
• Reverse Engineering for Interoperability
• Purpose: Make software compatible with other devices or platforms.
• Case Study: Sega v. Accolade, where Accolade used reverse engineering for
game compatibility with Sega consoles.
• Court Ruling: Allowed under fair use to promote competition.
• Compilers and Decompilers in Reverse Engineering
• Compiler: Translates source code (Java, C++) to machine code (binary).
• Decompiler: Converts machine code back to source code, allowing analysis.
• Example Tool: Reverse Engineering Compiler (REC) recreates C-like code from
machine language
• Ethics of Reverse Engineering
• Arguments For:
• Encourages competition and innovation.
• Enhances compatibility and consumer options.
• Useful for identifying security vulnerabilities.
• Arguments Against:
• Infringes on intellectual property rights.
• Reduces incentive for original developers.
• Can harm the original creator's profit potent
• Legal Restrictions on Reverse Engineering
• Software Licenses: Often prohibit reverse engineering.
• Legal Workarounds: Some companies move reverse engineering offshore.
• Court Decisions: Vary by purpose, e.g., interoperability is more acceptable
than duplication.
• Techniques and Tools Used
• Decompiling & Disassembly: Converts machine code to readable code.
• Common Tools: Reverse Engineering Compiler (REC), debugging tools.
• Use Cases: Debugging, security testing, migration.
• What is Open Source Code?
• Definition: Source code that is freely available for anyone to use, modify, and
distribute.
• Philosophy: Encourages transparency, collaboration, and continuous
improvement.
• Contrast with Proprietary Software: Closed-source, restricted access to code.

• Key Benefits of Open Source

• Adaptability: Can be modified to meet specific needs.
• Community Collaboration: Allows collective improvement and faster bug fixes.
• Transparency and Security: Open code allows users to verify security and
compliance.
• Common Applications of Open-Source Software
• Data Management: Moving and transforming data across platforms(mysql).
• Business Applications: Cost-effective solutions for business needs.
• Mobile Applications: Used in development for iOS, Android, and other mobile
platforms (python, javascript, PHP).
• Internet Infrastructure: Much of the web relies on open-source platforms (firefox,
brave, chromium).

• Examples of Open-Source Software

• Examples:
• 7-Zip - File compression
• Audacity - Sound editing
• Blender 3D - 3D modeling
• Firefox - Internet browsing
• OpenOffice - Productivity suite (word processing, spreadsheets)
• VideoDub - Video editing
• Why Do Developers and Firms Create Open Source Code?
• Recognition: Gain respect by solving common problems effectively.
• Giving Back: A way for developers to contribute after benefiting from open
source.
• Business Strategy: Promote expertise, attract clients, or earn future
maintenance fees.
• Public Good: Sometimes firms donate useful code they don't plan to
commercialize.
• Major Open Source Licenses
• General Public License (GPL): Protects open-source status, forbids proprietary
changes.
• Open Source Initiative (OSI): Certifies licenses that meet open-source criteria.
• OSI Certified License: Indicates adherence to OSI’s open-source standards.
• Importance of Licensing in Open Source
• Public Domain vs. Open-Source License: Public domain can lead to
proprietary use by others.
• Open-Source License Protection: Ensures shared freedoms and prohibits
privatization of code.
• Example of License Use: GPL's role in protecting GNU software.
• Competitive Intelligence
• Also, known as corporate intelligence, is the capacity to obtain, evaluate and
apply information on competitors, consumers and other market elements to
hep a company gain competitive advantage.
• Focus Areas
• CI examines rivals, customers, stakeholders, products, markets, economic
trends, technologies, and legal environments.
• Its goal is to anticipate and respond to issues before they arise, enhancing
decision-making and strategic planning.
• Activities Involved
• Investigating competitors' business plans, clients, markets, and responses to
various events.
• Understanding the impact of new technologies, distributors, stakeholders, and
market dynamics.
• Sources of Information
• Public and private sources such as:
• Industry reports, financial statements, patent databases, and government records.
• Competitor websites, job boards, trade exhibitions, and conferences.
• News media, customer reviews, employee reviews, and third-party reports.
• User-generated content on blogs, forums, social networks, and platforms like Wikipedia.
• Challenges
• The rapid growth of user-generated content has led to 'information overload.'
• Companies rely on tools and applications to manage, process, and analyze
large datasets effectively.
• Industry and Professional Organizations
• The Society of Competitive Intelligence Professionals (SCIP), founded in 1986
(renamed Strategic and Competitive Intelligence Professionals in 2010),
highlights CI's importance.
• SCIP organizes global seminars and summits to enhance CI practices and
decision-support technologies.
• Applications in Business
• Tactical advice for sales strategies, such as improving bids for major deals.
• Strategic insights for senior management to counter competitors and increase
market share.
• The scope and implementation of CI vary by industry, organization, and
context.
• Types of Competitive Intelligence
• Myopic Intelligence
• Focuses on immediate, short-term goals or issues without considering broader
implications or future trends.
• Often reactive, addressing immediate threats or opportunities.
• Example: Monitoring a competitor's new product launch but failing to analyze
how it aligns with broader market trends.
• Tactical Intelligence
• Targets specific, short- to medium-term objectives, often related to operational
efficiency or competitive positioning.
• Actionable and focused on current scenarios, providing insights for immediate
decision-making.
• Commonly used in sales, marketing, and operational planning.
• Long-Term Strategic Intelligence
• Takes a holistic, forward-looking approach to gather insights for sustainable
competitive advantage.
• Involves analyzing industry trends, emerging technologies, and potential
market disruptions.
• Supports high-level decision-making for long-term growth and positioning.
• Integration of All Three
• Effective competitive intelligence integrates these types:
• Use myopic intelligence for quick problem-solving in crises.
• Apply tactical intelligence to optimize ongoing operations.
• Leverage strategic intelligence to shape long-term goals and navigate
industry evolution.
• Example of CI
• Airline Ticket Industry
• Dynamic Pricing:
• Airlines monitor competitors’ ticket prices, demand patterns, and seasonal trends to adjust
their pricing dynamically.
Outcome: Competitive pricing to attract customers while maximizing revenue.
Sports Analytics
Player Performance Monitoring:
Tracking player stats, injuries, and trends in rival teams.
CI Activity: Analyzing game footage and real-time stats
Tech Startups
Product Differentiation:
Analyzing competitor features and customer reviews to refine products.
Outcome: Introducing unique features to capture market attention
Emerging Trends:
Staying ahead in fields like AI, blockchain, or IoT
• Cybersquatting
• Cybersquatting is the act of registering, selling, or using a domain name with
the intent of profiting from the trademark or goodwill of someone else’s
brand. It typically involves bad-faith practices where the cybersquatter
capitalizes on a brand's reputation, often causing confusion among customers.
• Examples of Cybersquatting Cases:
• Microsoft vs. MikeRoweSoft:
• A Canadian teenager registered “MikeRoweSoft.com,” which Microsoft
claimed was infringing on their trademark. The dispute was resolved with
Microsoft acquiring the domain.
• Apple vs. iPhone Domains
• Case: When Apple introduced the iPhone, several individuals preemptively
registered domain names such as "iphone.com" before Apple could.
• Types of Cybersquatting
• Typosquatting:
• Also known as URL hijacking.
• This involves registering domain names that are slight misspellings of popular
websites (e.g., “gooogle.com” instead of “google.com”) to exploit users who
mistype URLs.
• Name Jacking:
• This involves registering a domain name using an individual's name (e.g.,
celebrities, influencers, or public figures) to mislead or extort them for money
to obtain the domain.
• Identifying/Targeted Brand Squatting:
• The cybersquatted deliberately registers domain names that mimic the brand,
service, or product names of well-known companies(e.g., “amazoon.com” for
Amazon)
• How to identify Cybersquatting
• Investigate the Domain Name : Check if the domain name is identical or
confusingly similar to a registered trademark, brand, or personal name.
• Look for misspellings (typosquatting), similar phrases, or extensions (e.g., .net
instead of .com).
• Analyze the Website’s Content: If the domain hosts no website or has
unrelated, generic, or placeholder content, it could be held for resale.
• Check Domain Registration Details: Whois Lookup:Use a Whois database to
check the domain owner’s identity, registration date, and contact information.
• Tackling Cybersquatting
• File a Complaint Under UDRP
• The Uniform Domain-Name Dispute-Resolution Policy (UDRP) is an
international process for resolving disputes over domain names.
• Submit evidence showing:
• The domain is identical or confusingly similar to your trademark.
• The registrant has no legitimate interest in the domain.
• The domain was registered and used in bad faith.
• Use the Anticybersquatting Consumer Protection Act (ACPA)
• In the U.S., this federal law allows you to sue cybersquatters for damages and
obtain domain transfer orders.
• In Nepal there is no domain name protection law and cybersquatting are not
decided. Mercantile communication is official domain provider of com.np