Next-Generation Software Piracy

Someone I know in the software business recently came to me with an interesting story. He had received a firm, business-like e-mail message from a lawyer representing a very large US-based publishing house demanding that he immediately cease using a trademarked term on his private website. It seems that the title of one of his pages was the same as one the lawyer's client uses on books, educational goods, and other items. If he didn't comply with the request, he was promised legal action would be taken against him. Not wanting to test the company's resolve over the issue, he immediately changed the offending passage to something else. Many of you out there might find this case a bit extreme - just a bored American lawyer with too much time on his hands and a search engine at his disposal you might say. Well, not really. Although there was clearly no intent to do anything wrong here, it is a sign of the times. Lots of people - especially at the corporate level - are getting very touchy on the subject of intellectual property being stolen by way of the Internet. It's not just words and slogans being copied and used without authorization, but photos, graphics, scripts - even layouts and designs. After all, some corporate websites cost a small fortune to put together. As is the case with traditional software piracy, why should someone be able to copy and use something for free that someone else has spent lots of time and money creating? From the legal point of view, quite simply, they can't. A cute little animation running on a website that took many hours to put together is no different - with respect to intellectual property rights - than a software package that does the payroll. The idea of intellectual property being a major resource is not new to this age of the computers, especially to the Americans and their armies of lawyers and trade reps. In the very first part of the US Constitution, close to the top of the document, it clearly reads that Congress has the power to promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries (Article I, Section 8). Considering that this power is listed before the ones about military matters, including the power to declare war, might give you some idea of how seriously the subject was, and still is, regarded. In the early 80s, before the laws caught up with them, software pirates were everywhere. Many people laughed at the idea of going to jail or being sued simply for making a copy of a floppy disk. Such a thing, at the time, was unthinkable. Today, piracy still goes on, but it is a serious crime throughout most of the civilized world. Pirates get sued, arrested, and do time - even in Japan. The laughing on the subject stopped a long time ago. There can be little doubt the same thing will eventually happen with the intellectual property that is displayed on websites. The laws are still catching up with the technology, but expect major legislation to be passed, in Japan and elsewhere, very soon. A simple rule to follow is only use material on your website you have created yourself or have been granted permission to use, especially when it comes to photographs and images. As far as text content goes, only use links to the original location of the story or article. Never copy it to a separate page on your site. The concern over intellectual property on websites is leading to new URL/HTML technologies that make copying of images and text much more difficult. More on this subject later in the year. Retail human feelings There is a new business opportunity on the horizon in Japan for companies that make computer-based Customer Relations and Customer Management Systems. For years, many Japanese retailers have been running point systems for loyal customers, usually in the form of a little card stamped by the cashier every time a purchase is made. Because of the current state of the economy, companies are looking for new ways to hold on to their existing customer base and generate more sales. Computerizing and expanding existing loyalty programs seem to be moving quickly ahead in this market. Such systems are starting to be used in other countries and, I am told, have been used by airlines for years. When a passenger that fits a specific profile (frequent flyer, high income, friend of the shacho) checks in at the airport, the acronym AOP, meaning A-ct O-n P-resence, supposedly lights up on the attendant's computer screen. The airline employee is immediately transformed into the most caring, concerned person in the entire world. This good feeling is then electronically transmitted to every employee with whom the AOP person will come into contact during the rest of his or her journey. This system might sound a bit phony to those of us who fly economy, but it does convey to a valued customer that they are a valued customer. There is nothing phony about the obvious fact that their business is appreciated. And if such a system works at 35,000 feet, there is no reason why it won't work at the checkout counter. Thomas Caldwell is a freelance journalist working and living in Tokyo. He can be reached at caldwell@gol.com.

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