By now everyone has heard that Gizmodo's Editor, Jason Chen's, home was raided by authorities last week. The police seized computers and servers in an effort to ascertain how he obtained the stolen i-Phone 4G prototype phone. Gizmodo admitted they paid $5000.00 for the unreleased prototype and refused to reveal their source. The knew the phone was stolen and yet they still displayed and discussed the unreleased i-Phone 4G prototype on their website.
Of course Apple did not take their actions too kindly and promptly launched an investigation. Chen and Gizmodo are claiming the search warrant was unlawful because he deserves reporter's privilege. However reporter's privilege has never extended to a reporter who knowingly commits a crime or aids and abets in the commission of a crime. They are many arguments regarding what type of crime was committed by Chen, Gizmodo, and the employee that "allegedly" left the phone at a bar. However, I argue that Apple has every right to pursue prosecution based on California Law concerning "Theft of Trade Secrets."
Trade Secrets
Trade Secrets are a type of intellectual property. A trade secret can be a formula, practice, process, design, instrument, pattern, or compilation of information which is not generally known or reasonably ascertainable to the public.
Some examples of Trade Secrets are:
1. Formula for the soft drink, Coca-Cola
2. Business processes
3. Marketing Strategies
4. Food Recipes
5. Computer Algorithms
6. Prototypes
In addition, the trade secret must be of an economic advantage over a business' competitors or customers. Lastly, the owner of the trade secret must take reasonable efforts to maintain its secrecy.
Apparently Apple is upset that Gizmodo has exposed company's trade secrets of the prototype. Of course if Apple's competitors have been watching surely this exposure lessens Apple's competitive advantage over the competition. But knowing Apple, they will simply raise the stakes and change the design.
Consequences for Theft of Trade Secrets
Under California Law, the acquisition by improper means of trade secrets (meaning by theft, bribery, or breach of duty to maintain secret) is a punishable criminal crime and civil liability. California Civil Code Section 3426.1-3426.11 California law also holds the receiver of a trade secret liable if the receiver "knew or should have known" that the alleged wrongdoing was occurring. California Civil Code Sec. 3426.1(b).
Clearly Chen and Gizmodo knew that they had received the i-Phone 4G prototype, unlawfully. Therefore according to California Statute they are guilty of Theft of Trade Secrets.
In addition the California Penal Code states Theft of Trade Secrets is a crime and punishable by imprisonment in state prison or county jail not to exceed 1 year. California Penal Code Sec. 499 (c). I gather this is why the authorities raided Chen's home in an effort to ascertain whether they have enough evidence to prosecute Chen under this code.
One thing is clear. Apple has put the public on notice that they are not tolerating any such leaks in the future.
Tuesday, April 27, 2010
Thursday, April 22, 2010
The Do's and Don'ts of Twitter!
Hello Everyone:
Here is a copy of an article I posted on Black Web 2.0 regarding legal pitfalls Twitters find themselves in using Twitter.
Let me know what you think.
In light of the recent Library of Congress archive of all of our “tweets”, Twitterers need to be more cautious and cognizant of what they discuss or tweet on Twitter. Now most of us keep it simple and don’t engage in legal pitfalls such as defamation, terrorist threats, pornography, disclosure of private information, or intellectual property infringement. However there are others that treat Twitter like the wild wild west of social media networks. Defamation, pornography, and threats of Presidential assassination are rampant. There have been lawsuits filed and legal action taken against Twitters who engage in this type of behavior.
When using any social media network, anything you say or promote, good or bad is forever in cyberspace waiting to reward or punish you. And now that the federal government via the Library of Congress has all of our tweets, we should be more cautious and strategic about what we say on Twitter. Here is a list of Twitter dos and don’ts to assist Twitterers in avoiding legal liability or jail time.
1. Don’t threaten to kill the President or anyone else for that matter. Terrorist threats are a felony crime and you will go to jail.
2. Don’t engage in conversations or make statements about a person’s character or reputation unless they are 100% true, already known to the public, and are made for news reporting purposes and not to maliciously ruin a person’s reputation. Translation: Stop the Twitter fights!
3. Sending links to porn sites and posting porn is never a good idea. Links could potentially link to child porn sites and child pornography is a federal crime.
4. Although Twitter does not claim in ownership in Twitter’s content which may include intellectual property, other Twitter users may infringe or use your content for their own purposes. If you are tweeting copyright material, please do put a © sign behind the tweets to put others on notice of your ownership. This includes original thoughts, quotes, phrases, ideas, pictures, etc.
5. Never discuss company trade secrets or reveal your own private identifying information on Twitter.
Remember when using Twitter or any other social network, use common sense. Don’t engage in behavior that can cost you your freedom, job, or family.
Here is a copy of an article I posted on Black Web 2.0 regarding legal pitfalls Twitters find themselves in using Twitter.
Let me know what you think.
In light of the recent Library of Congress archive of all of our “tweets”, Twitterers need to be more cautious and cognizant of what they discuss or tweet on Twitter. Now most of us keep it simple and don’t engage in legal pitfalls such as defamation, terrorist threats, pornography, disclosure of private information, or intellectual property infringement. However there are others that treat Twitter like the wild wild west of social media networks. Defamation, pornography, and threats of Presidential assassination are rampant. There have been lawsuits filed and legal action taken against Twitters who engage in this type of behavior.
When using any social media network, anything you say or promote, good or bad is forever in cyberspace waiting to reward or punish you. And now that the federal government via the Library of Congress has all of our tweets, we should be more cautious and strategic about what we say on Twitter. Here is a list of Twitter dos and don’ts to assist Twitterers in avoiding legal liability or jail time.
1. Don’t threaten to kill the President or anyone else for that matter. Terrorist threats are a felony crime and you will go to jail.
2. Don’t engage in conversations or make statements about a person’s character or reputation unless they are 100% true, already known to the public, and are made for news reporting purposes and not to maliciously ruin a person’s reputation. Translation: Stop the Twitter fights!
3. Sending links to porn sites and posting porn is never a good idea. Links could potentially link to child porn sites and child pornography is a federal crime.
4. Although Twitter does not claim in ownership in Twitter’s content which may include intellectual property, other Twitter users may infringe or use your content for their own purposes. If you are tweeting copyright material, please do put a © sign behind the tweets to put others on notice of your ownership. This includes original thoughts, quotes, phrases, ideas, pictures, etc.
5. Never discuss company trade secrets or reveal your own private identifying information on Twitter.
Remember when using Twitter or any other social network, use common sense. Don’t engage in behavior that can cost you your freedom, job, or family.
Monday, April 12, 2010
Elan Requesting Ban on Imports of Apple’s iPAD
Elan, a touch-pad manufacturer, petitioned the United States International Trade Commission requesting the Commission ban all imports of Apple’s new iPad. Elan and Apple are currently involved in patent infringement litigation regarding the “touch-pad” function of Apple’s iPhone, iPad, iPod Touch, and Apple’s line of MacBooks. Elan has alleged that Apple used two of the company’s patents for “touch-pad” technology without their permission and refuses to properly compensate the company for creating the technology. Apple is denying the allegation and is also counter-suing Elan for infringing three of its patents for “touch-pad” technology.
Ban on Imports
Although Apple is an American company, all of its products are manufactured by two Chinese IT solutions companies, Foxconn and Inventec. Apple contracts with these Chinese manufacturers to produce their product and they in turn ship the products back to the U.S. for sale.
U.S. International Trade Commission
The International Trade Commission is a independent organization that “with broad investigative responsibilities on matters of trade. Among other things, the Commission also adjudicates cases involving imports that allegedly infringe intellectual property rights.” If the International Trade Commission determines that Apple violated Trade Laws by importing infringing products, the Commission could ban all Apple “touch-pad” technology into the U.S.
What’s Next
I doubt the International Trade Commission will issue such a ban on Apple’s “touch-pad” products. Both Elan and Apple are claiming patent infringement and are entrenched in patent infringement litigation. I think the International Trade Commission may await the result of any settlement or court decision before making such a decision. I think we all have to wait until the dust settles on this one.
Ban on Imports
Although Apple is an American company, all of its products are manufactured by two Chinese IT solutions companies, Foxconn and Inventec. Apple contracts with these Chinese manufacturers to produce their product and they in turn ship the products back to the U.S. for sale.
U.S. International Trade Commission
The International Trade Commission is a independent organization that “with broad investigative responsibilities on matters of trade. Among other things, the Commission also adjudicates cases involving imports that allegedly infringe intellectual property rights.” If the International Trade Commission determines that Apple violated Trade Laws by importing infringing products, the Commission could ban all Apple “touch-pad” technology into the U.S.
What’s Next
I doubt the International Trade Commission will issue such a ban on Apple’s “touch-pad” products. Both Elan and Apple are claiming patent infringement and are entrenched in patent infringement litigation. I think the International Trade Commission may await the result of any settlement or court decision before making such a decision. I think we all have to wait until the dust settles on this one.
Tuesday, April 6, 2010
Net Neutrality: Good or Bad Public Policy
Hello:
Here is a reprint of an article I wrote over at Black Web 2.0. It is gaining a lot of buzz. What do you think of Net Neutrality.
There is a lot of buzz surrounding Net Neutrality. Consumers want to know how it affects them in regards to their Internet service. In this article, I will attempt to explain Net Neutrality in plain terms and further explain what is means for you, the consumer.
Net Neutrality
Net Neutrality is the principle that everyone regardless of wealth, power, or influence should have the same access to the Internet.
Does everyone have the same access to the Internet?
Apparently not. The Federal Communications Commissions imposed sanctions against Comcast when it discovered the cable giant discriminated against peer-to-peer networking file traffic in an effort to restrict bandwidth usage demand on its broadband network. Comcast is appealing this decision. Consumers have also alleged the principle providers of broadband service, are charging a premium to consumers who require faster connections, better quality of service, and larger bandwidths to transmit data.
Federal Communications Policy regarding Internet Freedoms
The FCC imposed sanctions against Comcast based on the Four Internet Freedoms enacted in 2005. Due to numerous consumer complaints and vocal opposition from the cable industry, last fall, the FCC included two more rules to round out the set. They are as follows:
1. Consumers are entitled to access the lawful Internet content of their choice.
2. Consumers are entitled to run applications and use services of their choice, subject to the needs of law enforcement.
3. Consumers are entitled to connect their choice of legal devices that do not harm the network.
4. Consumers are entitled to competition among network providers, application and service providers, and content providers.
5. Broadband providers cannot block or degrade lawful traffic over their networks, favor certain content or applications over others and cannot “disfavor an Internet service just because it competes with a similar service offered by that broadband provider.”
6. Broadband providers must be transparent about the service they are providing and how they are running their networks.
The FCC announced their intention to formally adopt all 6 rules that will become the FCC policy on Net Neutrality. The Commission requested public comment and debate regarding the proposed rules and will make its final decision this year.
How Does Net Neutrality Affect the Consumer?
Net Neutrality benefits the consumer because the consumer will be confident they can use the Internet at an affordable flat rate without having to pay for faster connections or more bandwidth. Also consumers can rest assured that if they are using a large amount of bandwidth, the cable operators would not be able to block their Internet access.
Net Neutrality particularly affects business consumers who offer VoIP, downloadable movies, gaming and other services that require a great deal of bandwidth. These business consumers argue that Net Neutrality is needed so they can effectively compete with Cable operators that may offer the same services.
How Does Net Neutrality Affect Cable Operators?
Of course, cable operators and other Internet Service Providers are against Net Neutrality. The cable operators argue they have to charge a premium for better quality of service (faster connections, larger bandwidth). Understandably, the Cable operators argue that they will not be able to invest in better networks and connections if they cannot charge a premium to those who “tax” the broadband system. They also contend that Net Neutrality will stifle competition and result in higher flat rates for consumers.
The bottom line is that there needs to be some type of balance regarding Net Neutrality Rules. Yes the Internet should be open and non-discriminatory. However, providers of broadband and other Internet services should be able to charge a bit more for consumers who tax their service.
Here is a reprint of an article I wrote over at Black Web 2.0. It is gaining a lot of buzz. What do you think of Net Neutrality.
There is a lot of buzz surrounding Net Neutrality. Consumers want to know how it affects them in regards to their Internet service. In this article, I will attempt to explain Net Neutrality in plain terms and further explain what is means for you, the consumer.
Net Neutrality
Net Neutrality is the principle that everyone regardless of wealth, power, or influence should have the same access to the Internet.
Does everyone have the same access to the Internet?
Apparently not. The Federal Communications Commissions imposed sanctions against Comcast when it discovered the cable giant discriminated against peer-to-peer networking file traffic in an effort to restrict bandwidth usage demand on its broadband network. Comcast is appealing this decision. Consumers have also alleged the principle providers of broadband service, are charging a premium to consumers who require faster connections, better quality of service, and larger bandwidths to transmit data.
Federal Communications Policy regarding Internet Freedoms
The FCC imposed sanctions against Comcast based on the Four Internet Freedoms enacted in 2005. Due to numerous consumer complaints and vocal opposition from the cable industry, last fall, the FCC included two more rules to round out the set. They are as follows:
1. Consumers are entitled to access the lawful Internet content of their choice.
2. Consumers are entitled to run applications and use services of their choice, subject to the needs of law enforcement.
3. Consumers are entitled to connect their choice of legal devices that do not harm the network.
4. Consumers are entitled to competition among network providers, application and service providers, and content providers.
5. Broadband providers cannot block or degrade lawful traffic over their networks, favor certain content or applications over others and cannot “disfavor an Internet service just because it competes with a similar service offered by that broadband provider.”
6. Broadband providers must be transparent about the service they are providing and how they are running their networks.
The FCC announced their intention to formally adopt all 6 rules that will become the FCC policy on Net Neutrality. The Commission requested public comment and debate regarding the proposed rules and will make its final decision this year.
How Does Net Neutrality Affect the Consumer?
Net Neutrality benefits the consumer because the consumer will be confident they can use the Internet at an affordable flat rate without having to pay for faster connections or more bandwidth. Also consumers can rest assured that if they are using a large amount of bandwidth, the cable operators would not be able to block their Internet access.
Net Neutrality particularly affects business consumers who offer VoIP, downloadable movies, gaming and other services that require a great deal of bandwidth. These business consumers argue that Net Neutrality is needed so they can effectively compete with Cable operators that may offer the same services.
How Does Net Neutrality Affect Cable Operators?
Of course, cable operators and other Internet Service Providers are against Net Neutrality. The cable operators argue they have to charge a premium for better quality of service (faster connections, larger bandwidth). Understandably, the Cable operators argue that they will not be able to invest in better networks and connections if they cannot charge a premium to those who “tax” the broadband system. They also contend that Net Neutrality will stifle competition and result in higher flat rates for consumers.
The bottom line is that there needs to be some type of balance regarding Net Neutrality Rules. Yes the Internet should be open and non-discriminatory. However, providers of broadband and other Internet services should be able to charge a bit more for consumers who tax their service.
Monday, April 5, 2010
IPLAW101 Listed as 1 of 20 Twitters to follow on theGrio a NBC Universal Company
Hello Everyone!
Good news! IPLAW101 was listed as one of the 20 Twitters you should follow on Twitter! Thanks to theGrio and BlackWeb20.com. Check out the slide show of the 20 influential Twitters here.
theGrio is a a video-centric news community site devoted to providing African Americans with stories and perspectives that appeal to them but are underrepresented in existing national news outlets. It is affiliated with MSNBC.com and is owned by NBC Universal. Black Web 2.0 is is the premier destination for African-American’s in Technology and New Media.
Good news! IPLAW101 was listed as one of the 20 Twitters you should follow on Twitter! Thanks to theGrio and BlackWeb20.com. Check out the slide show of the 20 influential Twitters here.
theGrio is a a video-centric news community site devoted to providing African Americans with stories and perspectives that appeal to them but are underrepresented in existing national news outlets. It is affiliated with MSNBC.com and is owned by NBC Universal. Black Web 2.0 is is the premier destination for African-American’s in Technology and New Media.
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