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Supreme Court Lets Utilization Rights Stand

Moof writes "The United States Supreme Court refused to hear a case between a programmer and his former employer. What makes this news is the fact that the court is letting stand the rulings of the lower courts: Essentially if someone owns a physical copy of software, then they are allowed to modify the code as part of their regular use, no matter what other agreements are in place."

72 of 341 comments (clear)

  1. How does he legally claim copyright? by XorNand · · Score: 5, Interesting
    The U.S. Supreme Court declined to hear an appeal by a programmer who sued his former employer for changing his programs' source code.
    I RTFA, but don't understand how the programmer could claim copyright on something he wrote while being employed by this company. All work produced by a person during the course of his/her employment is owned by the employer, not the employee. Unless this guy had a special employment contract, or coded in his free time?
    --
    Entrepreneur : (noun), French for "unemployed"
    1. Re:How does he legally claim copyright? by Xentor · · Score: 5, Informative

      Maybe it was more of a consultant gig, where he sold them a black-box custom solution. They'd own the program, but he'd keep the code. They'd get it a little cheaper, but they'd have to hire him again whenever changes were needed...

      I've seen this tactic before... I wouldn't work that way.

      --
      "The amount of intelligence on this planet is a constant. The population is growing." -Cole's Axiom
    2. Re:How does he legally claim copyright? by aitikin · · Score: 5, Interesting

      I understand that's the way the laws and contracts are written. Thing is, a photographer is hired to take a picture for someone. The photographer takes said picture, gives the person the picture and is paid for it. Who owns the copyright? The photographer. Because of my understanding on that, I understand where the coder is coming from (to an extent. Lesson here, read you contract before signing!).

      --
      "Don't meddle in the affairs of a patent dragon, for thou art tasty and good with ketchup." ~ohcrapitssteve
    3. Re:How does he legally claim copyright? by MSZ · · Score: 2, Interesting

      Probably he had some rights in the program, if he didn't, the justification would be "you do not have copyright get lost", not about usage rights.

      I think the more important issue is that the court affirmed basic rights of a copy owner. These are under attack from EULAs and other directions. Good to see them recognized.

      --
      The moon is not fully subjugated. I demand a second assault wave preceded by a massive nuclear bombardment.
    4. Re:How does he legally claim copyright? by Anonymous Coward · · Score: 2, Informative

      Actually, that's not always the case. Copywrite law says that the author is the owner, unless they expressly give up those rights. Most of the time employment contracts have clauses that do just that; make the programmer give up rights to the code to the employer. Sometimes, though, it gets overlooked (especially with small companies that don't know any better). It's happened to me before, actually.

    5. Re:How does he legally claim copyright? by emag · · Score: 4, Insightful

      I don't understand it either. It sounds from TFA as though he wrote these programs in the normal course of his employment, clearly making the software the property of the company. That he "placed locks on the code and stipulated that Titleserv could run--but not alter--the programs" sounds as though he was attempting to hold the company hostage. Even with some additional information in one of the comments on TFA, it sounds like it was a co-ownership situation, where the company had every right in the world to make modifications as it needed them.

      --
      "The urge to save humanity is almost always a false front for the urge to rule." --H.L. Mencken
    6. Re:How does he legally claim copyright? by Xentor · · Score: 2, Interesting

      Hey, if I write a piece of software for hire, they get the code too. They buy it, they own it.

      Obviously this wouldn't apply to a shrink-wrapped commercial product, but then, that's not what this is about.

      --
      "The amount of intelligence on this planet is a constant. The population is growing." -Cole's Axiom
    7. Re:How does he legally claim copyright? by lantenon · · Score: 3, Informative
      From the wiki on work for hire:
      A "work for hire" (sometimes expressed as "work made for hire") is an exception to the general rule that the person who actually creates a work is the legally-recognized author of that work. According to copyright law in most countries, if a work is "made for hire", the employer - not the employee - is considered the legal author. The employer may be a corporation or an individual.

      The employee doesn't own this; the corporation does.

    8. Re:How does he legally claim copyright? by XorNand · · Score: 2, Informative

      Well, there's a difference between putting a photographer on the payroll and hiring him just for your wedding. If the photographer worked for a studio, the studio owner would actually own the images, not the guy who snapped them. The term "employee" (which was used in the article) has a very specific legal definition. Google "employee contractor IRS" to see exactly how well-defined it is.

      --
      Entrepreneur : (noun), French for "unemployed"
    9. Re:How does he legally claim copyright? by Dare+nMc · · Score: 2, Interesting

      If the photographer worked for a studio, the studio owner would actually own the images,
      followed your advice(google), to find who owns the copyright, all the first 5 links I clicked on say the opposite of what you claim.

      http://copylaw.com/new_articles/wfh.html
      the fact that under copyright law, authors are presumed to own the copyright in the works they create. The best way to avoid these problems is by having a written agreement in place before any work begins.

    10. Re:How does he legally claim copyright? by ScuzzMonkey · · Score: 2, Informative

      What the grandparent is getting at is that the corporate entity is the author of software, or any other "work for hire" built by an employee during his or her term of employment. That would be a better phrase to Google for, actually. Anything you come up with during your normal course of business (and in some cases, I believe it's been interpreted to including anything at all you create while employeed by the company) belongs to them.

      --
      No relation to Happy Monkey
    11. Re:How does he legally claim copyright? by Fareq · · Score: 2, Informative

      Because shrink-wrapped software is not produced as a work-for-hire -- and works for hire are one of the explicit exceptions to an author owning copyright.

    12. Re:How does he legally claim copyright? by richardtallent · · Score: 2, Informative

      From TFCD (court decision):

      "Titleserv initially asserted that the programs were "works made for hire" within the
      meaning of 17 U.S.C. 201(b). It later asserted entitlement to summary judgment regardless of
      whether Krause was an independent contractor or employee. For the purposes of its summary
      judgment ruling, the district court, adopting the magistrate judge's report, assumed arguendo that
      Krause was an independent contractor and owner of the copyright in the programs he developed."

    13. Re:How does he legally claim copyright? by Richard+Steiner · · Score: 2, Informative

      Yup, but thankfully it isn't universally true that all photographers keep the copyright -- our wedding photographer provided the option to buy the copyright to the photos she took, so when all was said and done we had the prints, the negatives, and the right to make copies however we wish. However, she retained the right to use the photos in her promotional materials.

      Most photographers wanted to retain copyright and provided no options, which is why we didn't give them our business. :-)

      --
      Mainframe/UNIX Bit Twiddler and long time Windows/Linux Hobbyist.
      The Theorem Theorem: If If, Then Then.
    14. Re:How does he legally claim copyright? by bwt · · Score: 4, Interesting

      I read the opinion. He was an independent contractor. By default, independent contractors own the copyrights to stuff they create. The idea is that the terms of their contract should spell out explicitly the full extent of the transfer of ownership, and that which is not given up is retained. If you are a regular employee stuff you create for work is owned by your employer because you are a part of them legally. This is the same idea that protects true employees from being sued by third parties, but does not protect contractors. These principles define what happens in the absense of explicit contract agreements.

    15. Re:How does he legally claim copyright? by TinyManCan · · Score: 2, Informative

      BTW, MS does give you the code if you're a big enough customer. Trust me when I say, you do not ever want to sign the NDA to get it though.

    16. Re:How does he legally claim copyright? by bwt · · Score: 2, Interesting

      You said it correctly: "work for hire" applies to material created by an employee during his or her term of employment. An independent contractor is NOT an "employee". There are a few very narrow cases where an independent contractor's work may be a "work for hire". All involve an explicit agreement to this effect, but even this is not sufficient to guarantee it legally. See this article for more info.

      Normally, stuff you creates when not on the job is yours even if you are an "employee". The only time this isn't the case is if your employment contract specifically contains terms stating otherwise. It's never the case that you lose rights to work you create "off the clock" involunatarily. You must agree explicitly. Courts almost always resolve contract ambiguity in favor of the author.

      For those that care, the case to read is CCNV v Reid, where the Supreme Court ruled in favor of a sculptor who created a statue for a non-profit organization when determining who owned the copyright. This opinion spells out everything and is the definitive precedent for all of this.

    17. Re:How does he legally claim copyright? by ankarbass · · Score: 2, Informative

      If you had read the opinion you would know that Krause 1) wrote the code in Clipper which for latecomers to the computer scene was a dbase compatible database system from the late eighties early nineties, and 2) knew that TitleServ had backup tapes so deleting the code would have been a pointless gesture.

      I've seen this happen a lot. Someone gets a gig and is careless about leaving source code lying around. Later they figure out that they might be able to sell their code to someone else, or that their relationship with the company is going to change, and realize that they should have been more careful in distributing source code.

      However the complaint involves not only the source code but executable only code as well. His choice of languge, clipper, allowed TitlServ to eventually decompile the executable only applications to which they didn't have source code. I suspect this is at the heart of Krause's complaint. Even if he realized too late that he left some source behind he probably felt at least with the two programs he was careful with that they would have to contract with him for more work or to bend over to get the source code. Today that might be a DMCA violation, but in days gone by, simply decompiling a program to make changes to it was not necessarily any sort of civil or criminal offense.

      If you're contracting for someone it's best to get this sort of thing in writing up front.

      ymmv.

      --
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    18. Re:How does he legally claim copyright? by Desert+Raven · · Score: 2, Informative

      Having done a bit of independent contracting and design work in the past, general rules of thumb:

      If you were working on an existing product owned by the employer, copyright is theirs.

      If you were working on a product substantially *designed* (not just spec'd) by the employer, copyright is theirs.

      If you were working with a team of others hired by the company, or employees of the company, copyright is theirs.

      If you were indistinguishable from an employee during your work (worked in their facilities, on their equipment, on their hours) it is generally considered "work for hire" and the copyright is theirs.

      If you recieved specs, then designed and built the product on your own time, on your own property/systems, without constant direct oversight, then the copyrights are most likely yours, with a perpetual, non-exclusive license given to the employer.

      That said, if you are relying on any of this without having it expressly written in your contract, you are a fool.

  2. Fair use has been reinforced... by the_skywise · · Score: 2, Interesting

    Ergo... If I have a physical copy of a CD, I'm allowed to alter it and/or its encryption, as I wish, to still hear my music so long as I'm not using it for any other purpose.

    1. Re:Fair use has been reinforced... by no_opinion · · Score: 4, Informative

      Wrong, that cannot be concluded from the ruling. If you read the opinion you'll see it is limited to software programs, not music or movies.

    2. Re:Fair use has been reinforced... by drgonzo59 · · Score: 2, Insightful

      Am I allowed then to also reverse engineer any software I buy on a CD?
      An executable is also a "binary" source code (series of 1s and 0s), then I can transform it into assembly using a disassember.
      So if I buy Windows XP, then I can run some of its parts through a disassembler, so I would have a more readable "source code", then I can change it any way I want, bypass any security mechanism, customize it to my liking and so on.

    3. Re:Fair use has been reinforced... by AviLazar · · Score: 2, Insightful

      Ergo not really. According to the article the changes constitute "an essential step in the utilization" of the program

      You do not need to rip music to your computer hard drive as an essential step to utilize the music. You can play it from the CD player.

      The article mentioned three criteria, and between the second and third there was the word and which means all three criteria must be met. The third criteria could also be argued against you.

      --

      I mod down so you can mod up. Your welcome.
    4. Re:Fair use has been reinforced... by SpasticThinker · · Score: 2, Insightful

      I think that the problem with cracking copy protection or reverse engineering software is not in you doing it for yourself - after all, if you did it only for yourself, no one would ever find out about it and sue you.

      It's the fact that almost 100% of the copy protection cracking/etc is done so the product can be freely distributed that has software/music/movie companies up in arms.

    5. Re:Fair use has been reinforced... by HTH+NE1 · · Score: 2, Insightful

      If you read the opinion you'll see it is limited to software programs, not music or movies.

      Maybe movies on VHS, but DVDs aren't just the storage of a movie for linear playback. Many commercial DVDs contain some programmed scripts that control how the content is played back. It has the capability to set and read variables and perform conditional branching.

      --
      Oh, say does that Star-Spangled Banner entwine / The myrtle of Venus with Bacchus's vine?
    6. Re:Fair use has been reinforced... by WhiteWolf666 · · Score: 2, Insightful

      I cannot play it from CD on my iPod.
      My Lexus's CD player will not play some DRM encrypted CDs.
      My Linux system (and I own nothing but Linux & OS X systems) will not run the proprietary DRM rootkits that enable access to various disks.

      For me, in several situations, I cannot use these CD players. I do not own a standalone CD player, except for the changer and 1-shot in my Lexus.

      --
      WhiteWolf666 an exBush supporter. All you new-school,compassionate,save the children Republicans can rot in hell
    7. Re:Fair use has been reinforced... by Agilus · · Score: 2, Interesting

      Easy solution: Someone make an interpreter that reads music files or encrypted files, or even better, ANY DATA FILE, as code. Just read sequences of bytes, and map each to a particular instruction, making sure to limit your language to be tolerant of bad memory accesses, or just disallow any bad accesses.

      Such an interpreter could be used to make digital art. Then, any data file run through it -is- code. :) If no one has coined this idea yet, I claim first patent rights to it. :)

      --
      hackshop.com - My tech hobby project hub
    8. Re:Fair use has been reinforced... by DCheesi · · Score: 2, Interesting

      Unfortunately, legislation trumps precedent. My understanding is that unless the Supreme Court rules the DMCA itself unconstitutional, its specific restrictions apply regardless of what the general precedent would otherwise be.

    9. Re:Fair use has been reinforced... by rewt66 · · Score: 2, Informative

      This is what Adobe did with PostScript fonts. IIRC, there was something about fonts were just shapes, and couldn't be copyrighted, or some such, so Adobe made the font into a program that drew the shapes, and then it was covered by copyright.

      Maybe somebody else remembers the details better...

    10. Re:Fair use has been reinforced... by HTH+NE1 · · Score: 2, Insightful

      OK, you may have a defense based on a right to adapt the menu scripts (.ifo), but that doesn't necessarily extend to the right to adapt the motion picture (.vob) that the menu scripts start and stop.

      And what of DVDs where subtitle tracks contain buttons that branch to other video (follow the white rabbit)? And doesn't each VOB know where to go next once its end is reached? That's a goto.

      And besides, isn't splitting hairs like that between programs and data like saying you can adapt the word processor but not to the extent where you can actually read any documents with it?

      --
      Oh, say does that Star-Spangled Banner entwine / The myrtle of Venus with Bacchus's vine?
  3. err... by soapdog · · Score: 2, Interesting

    didn't read TFA but won't thing rulling be used against DMCA in the future, like enabling you to patch DRM software you own and stuff like that?

    --
    -- Por mais que eu ande no vale das trevas e da morte, meu PowerMac G4 Não Travará!!!
  4. Contradiction by Apreche · · Score: 4, Interesting

    Isn't this a direct contradiction of the DMCA? What if I buy a physical copy of a game that has copy protection and modify that copy protection? Did the lower court make a bad ruling? Or is it only ok if you are not circumventing a copy protection measure?

    --
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    1. Re:Contradiction by briancarnell · · Score: 4, Insightful

      The article is quite clear that owning is very different from simply possessing a copy. Just because I have a copy of CIV IV does not necessarily mean I own the it under the definition used by the court here.

    2. Re:Contradiction by AviLazar · · Score: 2, Interesting

      Read the statement again..it lists THREE criteria and fills it with the word "and" which means you have to meet all three criteria. Ripping a game, or music or movie, is not an essential step in utilization. Also, it could be argued the third step. Not to mention, copy protection is covered under different laws. So even if you were correct about your statement and it was legal to do so, it is not legal to do so if a program has a copyright protection system (even a poorly designed one).

      --

      I mod down so you can mod up. Your welcome.
    3. Re:Contradiction by Macadamizer · · Score: 2, Interesting

      I fail to see a basic difference between this and using DeCSS to view a DVD on a unsupported platform.

      The big difference between using DeCSS and this case is that in this case, the owner of the materials figured out for themselves how to break the protections in the code. The DMCA prohibits the distribution of methods for breaking copy protections, but it doesn't prohibit you, an individual, from figuring out how to do it yourself. If you could figure out DeCSS on your own, you are free to use it on your own system -- but you can't distribute the information without running afoul of the DMCA provisions in the copyright code, and you are not allowed to purchase or otherwise obtain tools or methods for cracking copy protection from others.

      Basically, if you've got the skills to do it yourself, you can crack copy protection without running afoul of the copyright code. If you need help, or give help to anyone else, that's where you get into trouble.

      --

      "That's not even wrong..." -- Wolfgang Pauli
    4. Re:Contradiction by Xentor · · Score: 2, Informative

      That's a good point... I forgot about the whole ownership vs. license distinction. In the case of the article, the company had to prove that this software fell into the "ownership" category, while normally we just buy "licenses" for software.

      This link, posted in another comment, explains it better than the link in the /. submission...

      http://wistechnology.com/article.php?id=2194

      I stand corrected.

      --
      "The amount of intelligence on this planet is a constant. The population is growing." -Cole's Axiom
    5. Re:Contradiction by john82 · · Score: 2, Interesting

      On the face, it does indeed sound like a violation of DMCA:

      Krause left the programs, which were designed to manage client information, on Titleserv's servers when he quit working for the company. He placed locks on the code and stipulated that Titleserv could run--but not alter--the programs, prompting a lawsuit from the company, which claimed it needed to make code tweaks in order to fix bugs and to perform other "routine" functions. Company employees ultimately picked the locks and made the changes they said they needed.

      The developer locked the code and left specific instructions (EULA anyone?) that it was not to be edited. The company defeated the copy protection and violated the EULA.

      IANAL but it would seem to me that this case might open the door for a defeat of DMCA. The case itself was not about the merits of DMCA so there was no impact on the law.

      I also wonder about the impact of this case on EULAs. Apparently the code would require a recompile to add users or business functions. Hrmm... I want the functionality in WinXP Pro (strictly hypothetical) but I have XP Home. Guess I can ignore the EULA now?

  5. Even the supreme court :( by Fred_A · · Score: 5, Funny

    Great, now the supreme court starts to utilize "utilize". What's the point of utilizing fancy new words when thare are some fine regular words we could be utilizing instead that do just as well ?

    Ok so people can modify code as part of their regular utilizage, and we can uglify the language as part of our reguly utilization of it as well, blah.

    --

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    1. Re:Even the supreme court :( by Have+Blue · · Score: 4, Insightful

      Remember that this is a legal document we're reading. Each word has an extremely specific meaning that may or may not be the same as the colloquial meaning, and using a different one would have changed the legal meaning of the text.

    2. Re:Even the supreme court :( by richardtallent · · Score: 3, Interesting

      The word "utilize" came from the statute, not the court decision (and certainly not from the SC).

      "Utilize" is not the same thing as "use", which is why you see so many grammarians getting their collective panties in a wad over seeing it in print. To "use" something denotes action in conformance with the thing's designed purpose. To "utilize" something means to use in a way that differs from the as-designed purpose. I can't "utilize" a hammer to drive a nail, I can only "use" it. However, I can "utilize" a screwdriver handle to drive a nail.

      The fact that the word "utilize" was, er, used, actually played an important part in the district court's ruling. Use of that word specifically means that the owner can "stretch" a computer program to other purposes without violating copyright, as long as the principle use is the same (e.g., same sort of transactions being processed).

  6. That freaking guy by Hobbes897 · · Score: 3, Funny
    He placed locks on the code and stipulated that Titleserv could run--but not alter--the programs.
    So much progress from one man's prickishness.
    --
    Normality is now: overrated.
  7. Re:Precident by fred+fleenblat · · Score: 3, Insightful

    it would make a great precedent except that it happened afterward.

  8. The big point - who owned the code by MyNameIsFred · · Score: 5, Informative

    See this for more details. This issue appears to have been whether the company actually owned the source. The courts said yes.

  9. Don't get too excited! by bherman · · Score: 4, Interesting

    The difference between this software and say MS Office is that you don't "own" MS office, you have a license to use it but you do not have property rights on it.

    AFAIK.

    IANAL.

    --
    Error: Sig not found.
    1. Re:Don't get too excited! by panda · · Score: 2, Interesting

      The difference between this software and say MS Office is that you don't "own" MS office, you have a license to use it but you do not have property rights on it.

      If I don't "own" it, and I'm "licensing" it, then I didn't buy it; I'm only renting it. If I'm renting it, then why do I pay sales tax on the (non)purchase? Why does a business pay property tax on its software when it is counted as a capital asset? If Microsoft still owns the software, then Microsoft should pay the property tax. Since they don't, I take it that means that they agree that I bought the copy of the software and that I own it.

      --
      Just be sure to wear the gold uniform when you beam down -- you know what happens when you wear the red one.
    2. Re:Don't get too excited! by Pofy · · Score: 3, Interesting

      > The Software is licensed, not sold. This EULA does not grant you any rights to trademarks or service
      >marks of Microsoft.

      Yet they DO sell it. Writing something else does not change the fact that many times such software are sold, for example in a shop. Doesn't matter if you like to call it something else or write something else. Even more, a third part can't change and revoke a purchase deal between me and the shop.

      It is intresting to note also that "licensing" is bassically something non existant in laws regulating sales, leases, and such. Licensing is basically giving a permission to something that is forbidden. In this case, there is no such forbiden thing either. You may also try figuring out what happens if what you say is true if you do NOT agree to the EULA, or prior to even getting a chance to do so, perhaps on the way home from the shop. What is the "status" of the purchase you made then? Non existant? regulated by something you have not yet agreed to? Something else? The thing is, Microsoft DO sell it, they handle it like a sale and it is done like a sale, hence it is a sale. There are a whole bunch of laws regulating sales by the way.

  10. DMCA Violation! by Jtheletter · · Score: 5, Interesting
    So is there any reason why this programmer can't turn around and start another suit claiming that the company violated the DMCA when they "picked the lock" and circumvented his digital security measure without his permission?

    How is this any different than when I remove the DRM from an iTunes song as "an essential step in the utilization" of that song in my other digital music player(s)? Afterall, I own a physical copy of the software - the encoded song.

    Maybe that's not the best example but there are lots of others that I'm sure slashdotters can some up with.

    How is it that copyright law allows a holder's utilization to trump the agreement they had in place to run but not alter the software, yet pretty much any shrinkwrap/click-thru EULA isn't overruled by this same copyright utilization clause? Article was very light on details. Stinks of corporate favoritism at first glance.

    --
    -- I'm not a pessimist, I'm a realist. It's not my fault that life sucks so much. --
    1. Re:DMCA Violation! by ArsenneLupin · · Score: 2, Informative
      So is there any reason why this programmer can't turn around and start another suit claiming that the company violated the DMCA when they "picked the lock" and circumvented his digital security measure without his permission?

      As other people have pointed out, the alleged violations happened before the DMCA existed. And no law is retroactive (or rather: no law should be retroactive)

  11. Tests Two and Three by IanDanforth · · Score: 2, Interesting

    "Provided that they own a physical copy of the program"

    This test alone would directly contradict the DMCA, however the modification must also:

    "constitute 'an essential step in the utilization' of the program"

    and somewhat confusingly

    "the software [must be] used 'in no other manner.'"

    So what we're looking at here is a case where essential software can be modified, or if the program must be modified before it can be used. Then that's legal.

    So my question is, doesn't this mean I can alter/crack/reverse any program I want if I need to get it running on a *nix box? Isn't that essential for most programs before I can use it?

    -Ian

    1. Re:Tests Two and Three by DragonPup · · Score: 2, Insightful

      It's an interesting ruling.

      From the first part(physically owning), it seems to refer to owning the media on which the source is on(the server at titlserv)

      The second, I am assuming from the article, is implying that they changed the program to do maintance and fix some bugs so it would continue to work.

      Here's my take on the third. 'In no other manner'. The program, from the article, was not altered to do something other than the original intent. It was altered to fix bugs. I dont think ripping/cracking/etc to a *nix would qualify because it changes the 'manner' of the program/whatever was to be run on a Windows box/DVD player/Whatever.

      It seems to be a well reasoned decision, actually.

      --
      "Useless organic meatbag" -HK-47
  12. Own or license? by metoc · · Score: 5, Interesting

    From the ruling:

    Section 117(a)(1) provides an affirmative defense against copyright
    infringement for anyone who
    (i) owns a physical copy of a computer program,
    (ii) makes an adaptation "as an essential step in the utilization of the computer program in conjunction with a machine," and
    (iii) uses it "in no other manner."

    So if you 'owned' a physical copy of a Windows word processing app, and you adapted it so that it would run under Linux (machine), and made no other changes, you would not be infringing on someones copyright. But does the law distingish between 'own' and 'license'?

  13. Not likely a DCMA issue by RingDev · · Score: 3, Interesting

    He most likely ran the binaries through an obfuscator to make sure that any hard coded strings were appropriatly mangled and the code was not easily recoverable. That way, the code is "protected" but not encrypted and this would not fall under the DCMA's jurisdiction.

    -Rick

    --
    "Most people in the U.S. wouldn't know they live in a tyrannical state if it walked up and grabbed their junk." - MyFirs
  14. "Owning a copy" of a computer program by MotownAvi · · Score: 4, Interesting

    This is pretty huge. From the PDF:

    It is undisputed that Titleserv possessed executable copies of all the programs. The parties disagree whether Titleserv owned those copies within the meaning of 117(a). Krause claims that Titleserv never owned the program copies saved on its file server, but rather possessed the copies as a licensee pursuant to an oral agreement. Titleserv asserts that it owns copies of the programs because it paid Krause a substantial sum to develop them and has an undisputed right to possess and use them permanently.
    (emphasis mine)

    So suppose I go to CompUSA and buy Photoshop off the shelf. I paid a subtantial sum to Adobe, and I have an undisputed right to possess and use Photoshop permanently. Can I finally legally say that I own a copy of Photoshop?

  15. Re:this is good to know by bfischer · · Score: 2, Funny

    You kids these days are something else. My archives go back to 1968, but I can't find a punch card reader anymore. ;)

  16. Definition of the ruling by acherrington · · Score: 3, Informative

    I think that a lot of people are jumping on the "I can get rid of the copyright protection on my CD/DVD/GAME/Etc...." band wagon. This isn't exactly correct.

    The company involved owned the software... outright owned it. You must remember that when you purchase a copy of 99.99999999% of all works, you do not own it, rather you purchased a license for it. Bascially, they are saying you may mod your car or house, because you own it, but they haven't said anything about licensed software.

    --


    Victory is gained, not in knowing your opponents next move, but in preempting them.
    1. Re:Definition of the ruling by richardtallent · · Score: 2, Insightful

      License is a legal grant to "use" the program. Copyright is the legal protection to limit "distributing" the program (in original or derivative form). Ownership is the "bundle of rights" (First Sale doctrine, etc.) associated with legitimate physical posession of copies of the software.

      Apples, calculators, and bears. In this case, the *license* was oral, the *copyright* was assumed to be with the programmer, but the *ownership* rights trumped the other two claims based on the types of changes made to the source code by the company.

      Paying for the the development was not the only test for "ownership." Possession was the key, as was the oral license that allowed the company to "use" the program in perpetuity. The rights of ownership upheld by the court in this case uses the same tests as the next paragraph in the statute (the one that lets you make archive copies).

      In other words, this is likely a very good precedent for anyone who purchases an expensive box of bits and then finds it riddled with bugs, incapable of essential functions, or incompatible with their current or future platforms.

      This ruling is not out of line with the non-software world. Barring DMCA claims, car companies can't keep you from modding your car, and architects can't protect thier buildings from future modification or physical relocation. Posession still is 9/10ths of the law.

      However, it remains to be seen how the courts will deal with DMCA-covered protections that prevent the user from exercising the very rights of ownership that this decision affirms.

  17. Huh? by Descalzo · · Score: 2, Insightful
    Are you serious? Fair is only fair as long as it benefits the people you like?
    Remind me never to play any games with you.

    I apologize if you are being sarcastic, but you never know.

    We don't have sarcasm on Betelgeuse V.

    --
    I cried real tears when Li Mu Bai died.
  18. A little bit of his side by Stanistani · · Score: 3, Interesting

    Krause argued that Titleserv never owned the program copies at issue, but rather possessed them as a licensee pursuant to an oral agreement. Titleserv countered that it owned the copies because it paid Krause a substantial sum to develop them and had an undisputed right to possess and use them permanently.

    This quote is from:
    HERE

    Hoy! An oral agreement.
    Legal, binding, but not provable in this case.

  19. Modchips now legal? by _KiTA_ · · Score: 2, Interesting

    Does this count for modifying the bios (software) protection on systems such as the Playstation 2 and whatnot? Where does the limit stand between modifying software and modifying hardware that has software inside of it?

    I would also point out that the PS2 comes with driver CDs. So presumably... you could modify it there, legally.

    Right?

  20. You can't generalize it like that by billstewart · · Score: 5, Insightful
    First of all, this wasn't a Supreme Court decision - it was a Supreme Court refusal-to-decide, which leaves the appeals court for whatever district the case was filed in governing the case in that district only. If the appeals court or the district court below it wrote a really good opinion, it can be influential in other cases in other districts, but it doesn't have to be.

    Second, there were obviously contractual issues going on here. The news article doesn't say when or where the programmer wrote the programs, or whether he was a consultant or regular employee, or whether they were "work for hire", or what other contracts they had. It doesn't sound like typical work for hire by an employee, because that would normally be owned by the employer and the case would have been a slam-dunk way earlier. So the results of this case are likely to only be useful if you've got a similar contractual agreement, and we don't know what that agreement is because the article doesn't go into that kind of detail.

    --

    Bill Stewart
    New Fast-Compression-only CPR http://preview.tinyurl.com/dy575ks
    1. Re:You can't generalize it like that by Raffaello · · Score: 2, Informative

      In practice when the SCOTUS refuses to hear a case the highest appellate court ruling is treated as controlling law by other federal courts. If the SCOTUS lets a ruling stand then other federal courts, even in other districts will look long and hard before handing down a decision that goes against the ruling that the SCOTUS let stand. Federal judges do not like to be reversed by higher courts - its professionally humiliating. Essentially what's going on when a decision is overturned is that the SCOTUS or other appellate court is saying *BZZT* WRONG! What were you thinking when you made this ruling? It's BACKWARDS! Therefore, when the SCOTUS lets a ruling stand it becomes in practice controlling law on that/those issue/s because federal judges really don't like the public humiliation of having their decisions overruled by higher courts.

  21. GPL implication by GigsVT · · Score: 3, Interesting

    Surprised no one has picked up on the implication for the GPL.

    Right now you don't need to agree to the GPL to compile/use/run GPL software, since those things don't trigger copyright protections.

    But previous to this, if you modified it at all, copyright law kicks in and you must abide by the GPL, by modifying it, you stepped outside allowed use under "all rights reserved" and are thus you can only operate under the terms of the GPL.

    Under this precedent, you can modify it even if it were released under "All Rights Reserved" and thus do not need to comply with the GPL.

    This may have serious implications regarding possible GPL V3 clauses on internally modified GPLed software that is used as a network service. If you can modify the software within your rights under "All Rights Reserved" then you may not have to comply with any GPL V3 provision that says you must distribute source for internally modified GPL programs running as network services.

    --
    I've had enough abrasive sigs. Kittens are cute and fuzzy.
    1. Re:GPL implication by arkhan_jg · · Score: 2, Informative

      Just a slight correction; the GPL v2 does not kick in when you modify the code - you already have that right, as copyright law has little to nothing to say about modification (the DMCA does, but that only applies to copy prevention mechanisms) - the GPL is not a EULA. You may or may not have the right to make local copies for personal use only without needing the GPL, but that depends upon your particular fair use rights in your area.

      The GPL v2 only definitely kicks in when you want to distribute copies of the GPL software, which is otherwise illegal under copyright law. The terms are that you can distribute copies, as long as the new copies are also covered by the GPL, to whit, make available the source as well as the binaries. This defacto means if you want to sell or give away modified GPL software, you have to give them the modifications too. But only if you're distributing copies. You keep the modifications in-house, you don't need to give anyone anything, as the GPL is not needed to defend a case of copyright infringement; as you're not infringing copyright.

      Since you already have the right of modification, this ruling won't affect existing GPL v2 software, as the ruling doesn't address reselling copies of modified software.

      It's difficult to see how the GPL v3 is going to address the output of modified GPL software being used for network services; the GPL gains its strength from allowing more than copyright does, but at the price of sharing the source. Copyright law doesn't cover the output of programs, as it's not a derivative work. About the only way something like say, apache, could easily be covered is to force all web pages to include a copyrighted piece of GPL code, which then requires that the rest of the GPL software that generated that output to be made available as part of that 'bundling'.

      Still, assuming they did find some legal trick, like modifying the output, or the legal 'hack' of saying extra copies into memory or locally on hard-drives count as copyright infringement (works in some places, but not others), and thus compliance with the GPL needed to do so; then the ability to modify software without needing to comply with the GPL would indeed make this court case a possible road block for the GPL team.

      Note, IANAL, but this is my understanding based on discussions with people who are.

      --
      Remember kids, it's all fun and games until someone commits wholesale galactic genocide.
  22. Re:Wrong? by Proteus · · Score: 4, Interesting

    IANAL, but I don't think that [assignment of copyright to an employer] happens by default. That's why companies have you sign something that makes it explicit.

    I'm not an attorney, either, but I have been an employer. The error of the statement above, and a similar line of thought in this comment below, is that everything in a contract is stuff that isn't already in the law. That's simply not true.

    When you create a contract, you do it for a few reasons. One is to address things that aren't already covered adequately elsewhere. Another is to have a single document where all terms are agreed upon, to establish that all parties knew their rights and responsibilities -- even if they are already coded in law. Another is that terms in contracts are often easier to enforce than the same terms coded as law (in terms of suing someone for violation).

    When someone hires you to create a work, they own the copyright under the doctrine of "work for hire". The contracts do a couple of things: they spell this out explicitly, and often extend the provision to works you were not directly asked to create.

    --
    We may not imagine how our lives could be more frustrating and complex—but Congress can. – Cullen Hightower
  23. This is HUGE by John+Murdoch · · Score: 5, Insightful

    Don't just RTFA--read the decision. In particular, note this conclusion on page 11:

    We conclude in the absence of other evidence that Titleserv's right, for which it paid substantial sums, to possess and use a copy indefinitely without material restriction, as well as to 5 discard or destroy it at will, gave it sufficient incidents of ownership to make it the owner of the 6 copy for purposes of applying 117(a).4 7

    This is the conclusion the court reached after some extensive discussion of what it means to "own" a copy of a piece of software. Key point: the court is ruling on a specific law referring to ownership of a copy of a program, NOT ownership of (or even access to) the source code. The court discusses at length what ownership means--and concludes with the paragraph above. In other words, if you...

    • paid substantial sums of money
    • have the right to possess and use it indefinitely without material restriction
    • may discard or destroy it at all

    ...then you--as a matter of law--own a copy of the software.

    How huge is this?
    The immediate impact of this is to legalize reverse-engineering projects of custom software where the original coder can't or won't produce the source. The more interesting question is whether this legalizes the reverse-engineering of commercially-"licensed" software. On the one hand, this ruling makes it clear that--Microsoft's EULA to the contrary--I own several copies of Microsoft Office. On the other hand, the letter of the law, and the text of this decision, would seem to only permit me to use a disassembler to examine the code and fix bugs. Nothing--repeat--nothing in this decision would permit me to re-distribute that code. That's still very much an issue of copyright infringement.

    So can I reverse-engineer my Sony rootkit CD?
    Frankly, you shouldn't bother. You should take that rootkit CD back to Wal-Mart and tell them (in as loud a voice as you can muster) that you read "on the Internet that Sony's new CDs install a virus on your computer." But I digress....

    Where this is interesting is that it appears to overrule the software industry's assertion that you and I are licenseholders, not owners. This may force a wholesale change in EULAs--where it may become extremely interesting is in the question of the U.S. legal doctrine of First Sale. This says that if you buy something, you own it. And if you own it, you can do anything you want with it--including sell it to somebody else. The licensee/owner distinction that software companies have asserted is intended to prevent the creation of a used software market. EULAs typically include language that prohibits you from selling the software "license" to anyone else without getting permission from the vendor first, or otherwise jumping through hoops. Various vendor "authentication" programs that tie serialized CDs to the MAC addresses of your computer essentially do the same thing--you have to get permission from Microsoft to subsequently "unlock" that software and install it on a different PC. Under the doctrine of First Sale, that's blatantly illegal--IF you own the software.

    The bottom line:
    You may reasonably conclude that software industry lawyers are going to be working overtime on this.

  24. legal terms by rodentia · · Score: 2, Interesting


    Lawyers have no monopoly on precision in language, despite their claims to the contrary. In fact, a fair amount of legal effort is expended in cleaning up imprecision because Law continues to rely on natural language. That is as it should be, as Law is a humane discipline.

    The difficulty of legal jargon stems not from some greater degree of specificity, but rather from too great a reliance upon conventional (legal, precedential) usage. A good 85% of legal usage persists for its hoary connotative value (pointing to roots in Common or Roman law) and its ability to deter the uninitiated.

    --
    illegitimii non ingravare
  25. Work Made for Hire by PCM2 · · Score: 2, Informative
    When someone hires you to create a work, they own the copyright under the doctrine of "work for hire". The contracts do a couple of things: they spell this out explicitly, and often extend the provision to works you were not directly asked to create.
    IAANAL, but while that certainly may be true and such a doctrine does exist, it is more specific than you seem to believe it is.

    In order for a work that is created by a freelance contractor to qualify as a "work made for hire" (specific wording of copyright law), both parties have to specifically agree, in writing, that the work is a work made for hire. If no such agreement exists, then the contractor owns the copyright of the work. That's one good reason to have a contract if you are the one doing the hiring.

    In addition, the work must fall into one of nine specific categories delineated by copyright law -- for example, it might be a contribution to a collective work. Generally speaking, if a contractor wrote a software program from whole cloth and nobody else ever touched the code and there was no understanding that anybody ever would, then that program could probably not be considered a work made for hire under copyright law. If if the contractor's code is part of a collective work, however, it still is not a work for hire unless the abovementioned agreement is in place.

    The rules for employees are different. The employer clearly has the upper hand there.

    --
    Breakfast served all day!
  26. What the decision *really* means by Anonymous Coward · · Score: 4, Interesting
    The article is misleading, and the comments appear to be based on many wrong impressions on what this case decided.

    Firstly, they did not decide the the company had any copyright. The case does not explicitly say, however based on the decision it seems that Krause was a contractor, not an employee, otherwise the company would own the copyright. Either that, or the company had an incompetent lawyer who failed to plead that point, which would have seen the case summarily dismissed much more easily so that the more interesting stuff here would not have needed any discussion.

    Based on the description of things from the court, William Krause is not just an arsehole without the slightest bit of integrity in his body, but is a seriously incompetent programmer who should never be allowed to work in the industry again. He wrote the software in such a way that the only way to add customers to it was to modify the software - no input form for this guy, just hard code customer details into the source code. There were other problems of this nature, but that one alone should tell you enough to know he is incompetent and you should avoid him. Then when he and the company parted ways, he told them they could continue to use the software but could not make any modifications to it. Since they could not add customers to it, this effectively meant they could not get any use out of it. That should be enough to make it clear this guy is a complete arsehole.

    Now, under 17 USC 117(a)(2), the owner of a copy of the program (that is, not the owner of the copyright, but the owner of the physical copy) legitimately obtained, does not infringe by doing anything necessary as an essential step in using the software. The company made the modifications predominantly for the purpose of adding customers and related things that ought to be ordinary functionality of the program, but could only be done by modifying the code because of the way this incompetent had implemented the thing. They also fixed bugs, which the court found was an "essential" step in using the program.

    The company also reformatted the code and gave variables meaningful names. Now that would appear to go beyond essential steps, but it could be argued that this was necessary in order to be able to make the other essential modifications. It does not strike me as going quite as far as "essential", but put yourself in the position of the judge who has before him (or her) such a lowlife plaintiff. You can't change the law, but whether the step is essential or not is a question of fact that the judge can decide - if it's close enough to the fuzzy areas, whose side are you going to go with? As it turned out it seems the plaintiff did not argue that directly, but if he had he would most likely have lost on that point too.

    The company also made enhancements - to add stuff like cheque printing. The court found this essential by finding (as a matter of law) that making the program more useful to its owner is a part of utilisation, and modification is an essential step in doing that. This part does create some tension with DMCA provisions - is a game more useful if it does not require you to have its CD in the drive? There is certainly an argument to be made that "No-CD" modifications are legal under this rule. In Australia the tension of such an interpretation with its equivalent of the DMCA is resolved by Stevens v Sony, which would state that the CD checking code does not qualify as a technological protection measure since it does not prevent the copying, only makes the software useless if copied (in the wrong way).

    The final point is the most interesting one from a geek point of view. TitleServ also made modifications to make the software work with their new computer system, and more importantly, their new Windows operating system. The court found that copying the software onto the new Windows operating system and modifying it to work with that is protected. How does that help geeks? Think of Wine! Using Microsoft components on Li

  27. This doesn't invalidate the GPL by John+Murdoch · · Score: 2, Informative
    Which means it also invalidates the GPL, since that too, is a license.

    Hi!

    Um, no. Nothing is getting invalidated here. And this doesn't affect GPL'd software, precisely because you (generally) don't pay substantial sums of money for it. (Remember that paying substantial sums of money was one of the criteria for ownership.) Even if it does apply to GPL'd software, so what? Nothing's changed: the whole point of Open Source software, regardless of the license, is that you can examine the source code and make modifications. This decision simply puts commercial software on the same basis: if you paid substantial sums to buy it, can use it indefinitely, and have the ability to discard it if you choose, then for purposes of interpreting the statute you "own" a copy of the software.

  28. Re:You're buying a CD. by Pofy · · Score: 2, Informative

    >What is "sold" is a CD copy of the software.

    Uhu, of course, what else would it be? That is exactly what I said.

    > As it says, "you own the media on which the software is stored...."

    There is no such distinction, the CD *is* the copy of the work in question (software in this case). Since this is the US, you might want to look at the US copyright law and its definition. Especially of a "copy" which is a material object including the media it is stored on. There is no such thing as "the media and the software" as seperate entities. here, a link for you:

    http://www.law.cornell.edu/uscode/html/uscode17/us c_sec_17_00000101----000-.html

    And if you are too lazy, here is the text:

    "?Copies? are material objects, other than phonorecords, in which a work is fixed by any method now known or later developed, and from which the work can be perceived, reproduced, or otherwise communicated, either directly or with the aid of a machine or device. The term ?copies? includes the material object, other than a phonorecord, in which the work is first fixed."

    That is a copy of a work.

    >The right to copy and execute that software are what is spelled out in the EULA.

    The right to copy is covered and restricted by the LAW (copyright law in this case). For copying it is quite restrictive. Only if I need ADDITIONAL copying, that is forbidden by the copyright law, do I need any special licence. Otherwise I do not since there is nothing forbidding it.

    There is no such thing as "right to use". It is not covered by copyright law and is not a special right of the copyright holder. As long as the use does not involve infringing actions, it is perfectly allowed without any sort of permision or license.

  29. Re: that is, if you equate photography to coding by Invidious · · Score: 2, Insightful

    Well, I'm constitutionally obligated to take exception to this, even though I understand where you're coming from.

    The taking of a photograph involves selecting and controlling a host of variables with nearly infinite granularity. (I'll use a film-based solution since it cuts out Photoshop and such.) The Photographer chooses the film that he's using, which will affect things such as color balance and pallette, granularity, contrast, and sharpness. The ISO of the film also affects his choice of shutter speeds, which will limit the circumstances under which he will be able to capture the type of image he wants.

    The Photographer chooses a shutter speed in order to either freeze motion or to show it through motion blur. Now, does he show the motion by letting the subject blur, or does he pan with the subject while taking the picture to keep the subject sharp and blur the background?

    The photographer chooses an aperature, which directly affects the depth of field of the subject. Do you want everything tack-sharp, or do you wish to isolate one particular element by keeping that sharp and letting everything else fall out of focus? In doing this, the photographer has to keep in consideration the size of the depth of field, and the plane of focus.

    The photographer chooses a focal length, the choice of which can vastly affect the composition of the picture, the DoF, and a number of other things, even the way a face appears.

    The photographer chooses where to place the elements of the image within the frame, which can have a profound effect on the final feel of the image.

    The photographer chooses whether or not to use filters to modify the light entering the lens, and these filters can have dramatic effects -- a simple polarizing filter can change the look of an image immensely.

    The photographer chooses what lighting to use, and this includes the control of a vast number of variables. When using natural light, one's options are more limited, but this is still a major consideration. Do you sidelight your subjects? Frontlight them? Backlight them? Light them from above or below? Use a combination? Take the picture in shade or hard sun? It all depends. The control of lighting is one of the most frustrating and critical elements of a photographer's job.

    Finally, the photographer chooses the exact moment to capture. Being off by 1/16 of a second can change an image from something remarkable to something blah.

    Printing the image can be a simple thing, or an extremely complex one in the case of black and white fine-art prints done in a darkroom. That is another subject entirely, far too complex to get into, and it is entirely an art.

    This is what you pay for in a good photographer, and why it's an art. It may look to you like the photographer is just clicking a button, but the vast number of choices that aggregate, including some which are entirely stylistic, are what makes it an art. The photographer processes all of this data, makes his selections, often in only a few seconds, frames the picture, and takes the picture. Well, this is all assuming that you're using a professional photographer and not someone clicking away on automatic mode or something.

    The thing is, the photographer does just what you said -- he made a unique image. Technical skills will give you a decent photograph, but the ways that you choose to apply these -- there are literally an infinite number of ways to capture the same scene -- are what makes it an art.

    Frankly, programming is less of an art in comparison, and more of the 'service industry' job you say photography is: all that is is the application of a series of algorythms in order to solve a defined problem. The photographer is using a set of algorythms, too, but these are much fuzzier, and there is almost never one (or even a couple of) "best" solution. And the development of a software application is practically -never- from scratch any more. Common libraries, programming tools, APIs, and such make the

  30. Re: that is, if you equate photography to coding by nolife · · Score: 2, Interesting

    I am not discounting the complexity of taking the right photograph or trying to discount the art in any way but.. I could write an equally long and detailed description on how to replace a wheel bearing and brake pads, how to mix and master a sound board recording, how to diagnose and repair a vertical deflection circuit on a 27 in television, how to assemble a model airplane, how to do a good job hanging and finishing drywall, or how to detail and wax a car. Each requires a technical skill, practice, attention to detail, and patience to get it right. Getting the "right" photograph is not an absolute and is an opinion. ANYONE that can push a button and hold a camera can take a picture with decent equipment and a majority of the people looking at that actual picture would be decently satisfied with the results, it may not be the best, the lighting might be a little off but for the most part, it would be very acceptable to a majority of the general population. Throw in a little practice and maybe a basic understanding of photography and the results would be even better. How many times have you seen some random person get handed a camera and asked to take a shot for them? People are generally not picky or care about most of the things you described above. Maybe for the "hype" of a wedding where emotions and stress are involved everything must be right but that is the only time. Do you think you could ask anyone on the street to replace your wheel bearing, hang drywall for you, or hey quick, write me a software application that calculates the deflection of a piece of aluminum under load.

    My points have nothing to do with copyright either. IMHO, if I want photos taken by someone, I want to pay them to do a job for me, the material they take and the chance to take those photos was at my request. I am paying for the expertise and their experience, just as a I would pay someone to do a professional job to pave my driveway.

    --
    Bad boys rape our young girls but Violet gives willingly.