Intellectual Property Law and Interactive Media

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1 Edward Lee Lamoureux Steven L. Baron Claire Stewart Intellectual Property Law and Interactive Media FREE FOR A FEE PETER LANG New York Washington, D.C./Baltimore Bern Frankfurt am Main Berlin Brussels Vienna Oxford

2 Contents Acknowledgments XI Introduction Shifting from Public to Private Interests Property Law Governing Products of the Mind Information Stewards' Rights and Responsibilities Types and Categories of Intellectual Property Law Finding, Reading, and Analyzing the Sources of Intellectual Property Law Organization of the US Court System Specialized Tribunals for Certain Intellectual Property Disputes How to Locate Intellectual Property Law Reading the Law Preview Discussion Questions

3 VI INTELLECTUAL PROPERTY LAW AND INTERACTIVE MEDIA Chapter 1: Copyright Legislative Development of US Copyright Law 34 Copyright Legislation: Early English Influences 34 Early American Scene th Century US Copyright Legislation: th Century US Copyright Legislation: th Century US Copyright Legislation: th Century US Copyright Legislation: th Century US Copyright Legislation: Compulsory Licensing 52 Pending Legislative Action 53 Traditional Media Copyright Cases with New Media Implications 55 New Media Cases and Copyright Law 58 DeCSS and DVD-Related DMCA Cases 6 ' Copyright Term Extension and Eldred. 62 Peer-to-Peer File Sharing 64 Summarizing Copyright and New Media 66 Discussion Questions Chapter 2: Three Copyright Issues Fair Use Purpose and Character of the Use: Parody and 2Live Crew Nature of the Work: J.D. Salinger's Unpublished Letters Amount and Substantiality: Cake-Decorating Instruction Booklets Market Effect: Hustler v. Moral Majority Fair Use in Practice De minimis Use and Private Use Market Failure Transformative Use Perhaps Written Guidelines Are the Answer Public Domain Orphaned Works Summarizing Special Issues in Copyright and New Media Discussion Questions ^ 80 8 ' 82 8^

4 CONTENTS VII Chapter 3: Patent 91 Types of Patents 94 Legislative Development of US Patent Law 95 Patent Legislation Early Influences 96 Early England 96 Colonial America and Early United States 97 19!h Century America m Century America 98 Traditional Media Patent Cases with New Media Implications 101 New Media Cases and Patent Law 107 Summarizing Patents and New Media 113 Discussion Questions 114 Chapter 4: Trademarks 115 Legislative Development of US Trademark Law 116 Early History of Trademarks 116 Modern Trademark Legislation and Development 119 Special Trademark Issues in New Media 120 Traditional Media Trademark Cases with New Media Implications 121 New Media Cases in Trademark Law 125 Summarizing Trademarks in New Media 130 Discussion Questions 131 Chapter 5: Trade Secrets 133 Legislative Development of US Trade Secret Law 135 Early Influences 135 Restatement of Torts, Uniform Trade Secrets Act (UTSA) Fine Points of the UTSA! 3 7 Economic Espionage Act of 1996 (EEA) 139 Traditional Media Trade Secret Cases with New Media Implications 140 New Media Cases in Trade Secret Law 143 Summarizing Trade Secrets in New Media 152 Discussion Questions 153

5 VIII INTELLECTUAL PROPERTY LAW AND INTERACTIVE MEDIA Chapter 6: Rights of Publicity, Privacy, and Defamation 155 Historical Touch Points ' 56 Rights of Publicity ' 57 Important Exceptions to Rights of Publicity ' 58 Foundations for Rights of Publicity 159 Traditional Media Rights of Publicity Cases with New Media Implications New Media Cases in Rights of Publicity Law ' 67 Rights of Privacy ' 80 Foundational Legislative Developments in Privacy Rights ' 8 ' Statutory Privacy Developments ' 82 Traditional Media Privacy Cases with New Media Implications ' 85 New Media-Related Rights of Privacy Cases ' 88 Defamation and New Media ' 89 Traditional Media Defamation Cases with New Media Implications ' 9' New Media-Related Cases in Defamation Law Summarizing Personal Torts in New Media ' ^ Discussion Questions ' 97 Chapter 7: International IP Law ' " Complexities of the International Scene Global Economic Policies Global Culture Issues 16 ' ' ^ The Internet Changes Everything 208 The International Legal Environment for IP Law New Media Cases Illustrating International IP Law 212 Summarizing International IP Law in New Media 2' 4 Discussion Questions 215 Chapter 8: Digital Rights Management How DRM Works ' 7 Acts vs. Tools 219 Strange but True: Tales of Digital Rights Management 220 Secure Digital Music Initiative (SDMI) 220 Cases Illustrating DRM 223 DRM's Effectiveness for Protecting Content 228

6 CONTENTS IX Triennial Rulemaking: Exemptions to the DMCA 229 A Turning Tide? 231 Summarizing Digital Rights Management 232 Discussion Questions 234 Chapter Nine: Toward Tomorrow, Today: JP Law in Virtual Worlds 235 Jurisdiction and Virtual Worlds 237 Buffer/RAM "Copies" and Reproduction Rights 239 First-Sale Doctrine and Transmission 240 Closer Examination of IP Issues in an Archetype Virtual World: Second Life 241 Ownership of Property in Virtual Worlds 242 Some of the Issues Raised by How Linden Lab Treats IP 245 Virtual World Judicial Developments 248 Summarizing IP Law in Virtual Worlds 250 Discussion Questions 252 Notes 253 Glossary 259 Works Cited 263 Cases 273 Index 277 About the Authors 297

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