Sixteen U.S. Senators who sit on the Committee on Small Business and Entrepreneurship sent a letter to the Federal Trade Commission (FTC) on April 2, which urged commission members to support efforts and calls by the states to combat IP theft.
In the letter, the bipartisan group of Senators wrote: “We are writing to you to ask you to consider a request submitted by the National Association of Attorneys General (NAAG) to use all the tools at your disposal to fight the theft and use of stolen American manufacturing information technology (IT) and intellectual property (IP).” SBE Council shares the concerns of these Senators as the theft of, and disregard for, IP hurts small to mid-size firms and their ability to compete domestically and internationally. Innovation and investment also suffer as a result of such theft.
Specifically, the letter points to businesses that use stolen IP. The Senators believe this is unfair, stifles innovation and forces “law-abiding businesses – large and small –to compete against those businesses that reduce their operating costs through the use of pirated IP.”
The NAAG has asked for the support of the FTC in fighting stolen IP, and put that request in writing on November 4, 2011.
Karen Kerrigan, President & CEO
Showing posts with label IP theft. Show all posts
Showing posts with label IP theft. Show all posts
Tuesday, April 03, 2012
Tuesday, January 31, 2012
Megaupload and Protecting IP
The anti-intellectual property forces on the Internet are upset, as various governments around the world are doing exactly what they should be in protecting private property from theft.
On January 19, the U.S. Justice Department and FBI announced one of "the largest criminal copyright cases ever brought by the United States." The target? As described by the DoJ, it's "an international organized criminal enterprise allegedly responsible for massive worldwide online piracy of numerous types of copyrighted works through Megaupload.com and other related sites."
All entrepreneurs and businesses that rely on and build value through IP, and the consumers that enjoy and want more IP-based products and services, should strongly approve of, even celebrate, such actions by law enforcement.
To say that this was an international effort is a bit of an understatement, as in addition to the U.S., law enforcement from New Zealand, Hong Kong, the Netherlands, the United Kingdom, Germany, Canada, Australia and the Philippines were involved to varying degrees.
The seven people charged in the indictment - four originally arrested in New Zealand - are charged with "engaging in a racketeering conspiracy, conspiring to commit copyright infringement, conspiring to commit money laundering, and two substantive counts of criminal copyright infringement."
Federal authorities estimate that the harm to copyright holders is far in excess of $500 million, with $175 million in illegal profits being earned.
The DoJ explained: "According to the indictment, for more than five years the conspiracy has operated websites that unlawfully reproduce and distribute infringing copies of copyrighted works, including movies-often before their theatrical release-music, television programs, electronic books, and business and entertainment software on a massive scale... The indictment states that the conspirators conducted their illegal operation using a business model expressly designed to promote uploading of the most popular copyrighted works for many millions of users to download. The indictment alleges that the site was structured to discourage the vast majority of its users from using Megaupload for long-term or personal storage by automatically deleting content that was not regularly downloaded."
Again, if you operate a business or have a job in the movie, television, publishing and software industries, this case is a positive step forward.
Unlike lawful online storage sites, Megaupload is commonly known as allowing widespread and easy access to unauthorized copies of video and music. Large files can be accessed, shared and/or downloaded anywhere by anyone.
In a January 20 report, the New York Times highlighted the difference between Megaupload, for example, and legitimate services: Aaron Levie, chief executive of Box.net, a popular online storage company, "noted that his company and Dropbox, as well as the services from Google and Microsoft, were less likely prosecution targets because they depended to a large extent on legitimate corporate purchases of their storage. These services are more focused on sharing within organizations and small groups. While this can make it more difficult for an outsider or the authorities to see who is storing what, it makes it less likely that huge copyright violations are taking place. Lori Shen, a spokesman for YouSendIt, said any comparison between that site and Megaupload would be inaccurate. ‘YouSendIt is a private and secure business collaboration tool for business users. It provides a secure vehicle to share, send, sign and sync business content online,' Ms. Shen said."
And on January 23, another Times article pointed out steps being taken in response to these actions, including: "Filesonic, Fileserve, FileJungle and UploadStation now forbid users from downloading any content they did not upload themselves."
The Wall Street Journal also explained the recent shift in pirating and its international aspects: "Sites such as Megaupload, known as cyberlockers, have grown in popularity and shifted the technology and business of stealing content. Cyberlockers-so called because they offer virtual storage homes for files that can be accessed from any device with a Web browser-are often foreign sites that offer a smorgasbord of pirated movies, TV shows, music and e-books that people can download with a few clicks, say media companies, and now account for about half of all online pirate activity."
Unfortunately, nations like China and Russia serve as ideal hosts for such services given that government enforcement of intellectual property is weak, at best, in those nations. And that's exactly where assorted IP thieves are increasingly turning to operate.
The Megaupload case should not be a cause for concern or protest by IP creators or consumers. Instead, it should be highlighted as an example of government exercising its proper role of enforcing property rights, and international cooperation protecting IP in the integrated, twenty-first century economy.
_______________
Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. His new book is "Chuck" vs. the Business World: Business Tips on TV.
On January 19, the U.S. Justice Department and FBI announced one of "the largest criminal copyright cases ever brought by the United States." The target? As described by the DoJ, it's "an international organized criminal enterprise allegedly responsible for massive worldwide online piracy of numerous types of copyrighted works through Megaupload.com and other related sites."
All entrepreneurs and businesses that rely on and build value through IP, and the consumers that enjoy and want more IP-based products and services, should strongly approve of, even celebrate, such actions by law enforcement.
To say that this was an international effort is a bit of an understatement, as in addition to the U.S., law enforcement from New Zealand, Hong Kong, the Netherlands, the United Kingdom, Germany, Canada, Australia and the Philippines were involved to varying degrees.
The seven people charged in the indictment - four originally arrested in New Zealand - are charged with "engaging in a racketeering conspiracy, conspiring to commit copyright infringement, conspiring to commit money laundering, and two substantive counts of criminal copyright infringement."
Federal authorities estimate that the harm to copyright holders is far in excess of $500 million, with $175 million in illegal profits being earned.
The DoJ explained: "According to the indictment, for more than five years the conspiracy has operated websites that unlawfully reproduce and distribute infringing copies of copyrighted works, including movies-often before their theatrical release-music, television programs, electronic books, and business and entertainment software on a massive scale... The indictment states that the conspirators conducted their illegal operation using a business model expressly designed to promote uploading of the most popular copyrighted works for many millions of users to download. The indictment alleges that the site was structured to discourage the vast majority of its users from using Megaupload for long-term or personal storage by automatically deleting content that was not regularly downloaded."
Again, if you operate a business or have a job in the movie, television, publishing and software industries, this case is a positive step forward.
Unlike lawful online storage sites, Megaupload is commonly known as allowing widespread and easy access to unauthorized copies of video and music. Large files can be accessed, shared and/or downloaded anywhere by anyone.
In a January 20 report, the New York Times highlighted the difference between Megaupload, for example, and legitimate services: Aaron Levie, chief executive of Box.net, a popular online storage company, "noted that his company and Dropbox, as well as the services from Google and Microsoft, were less likely prosecution targets because they depended to a large extent on legitimate corporate purchases of their storage. These services are more focused on sharing within organizations and small groups. While this can make it more difficult for an outsider or the authorities to see who is storing what, it makes it less likely that huge copyright violations are taking place. Lori Shen, a spokesman for YouSendIt, said any comparison between that site and Megaupload would be inaccurate. ‘YouSendIt is a private and secure business collaboration tool for business users. It provides a secure vehicle to share, send, sign and sync business content online,' Ms. Shen said."
And on January 23, another Times article pointed out steps being taken in response to these actions, including: "Filesonic, Fileserve, FileJungle and UploadStation now forbid users from downloading any content they did not upload themselves."
The Wall Street Journal also explained the recent shift in pirating and its international aspects: "Sites such as Megaupload, known as cyberlockers, have grown in popularity and shifted the technology and business of stealing content. Cyberlockers-so called because they offer virtual storage homes for files that can be accessed from any device with a Web browser-are often foreign sites that offer a smorgasbord of pirated movies, TV shows, music and e-books that people can download with a few clicks, say media companies, and now account for about half of all online pirate activity."
Unfortunately, nations like China and Russia serve as ideal hosts for such services given that government enforcement of intellectual property is weak, at best, in those nations. And that's exactly where assorted IP thieves are increasingly turning to operate.
The Megaupload case should not be a cause for concern or protest by IP creators or consumers. Instead, it should be highlighted as an example of government exercising its proper role of enforcing property rights, and international cooperation protecting IP in the integrated, twenty-first century economy.
_______________
Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. His new book is "Chuck" vs. the Business World: Business Tips on TV.
Monday, April 25, 2011
World Intellectual Property Day 2011 and Small Business
Are entrepreneurs and small businesses ready to celebrate April 26? It’s World Intellectual Property Day. Why is this day important to small business?
This year’s theme is “Designing the Future.” It’s noted in a statement from WIPO (World Intellectual Property Organization): “This year’s World Intellectual Property Day on April 26 celebrates the role of design in the marketplace, in society and in shaping the innovations of the future… The intellectual property system encourages designers to produce attractive items that are easier, more comfortable and safer to use, by helping to protect original designs against unauthorized copying and imitation. In international markets, companies need to be able to protect their designs quickly and cost-effectively in several countries.”
WIPO Director General Francis Gurry added: “Design is where form meets function. It determines the look and feel of the products we use each day – from everyday household items to the latest tablet computers. Design marries the practical with the pleasing. It brings style to innovation.”
In terms of protecting IP, it is small and mid-size firms that benefit most.
WIPO points out: “New products, brands and creative designs appear almost daily on the market and are the result of continuous human innovation and creativity. Small and medium-sized enterprises (SMEs) are often the driving force behind such innovations.”
WIPO stresses how important it is for small and mid-size businesses to protect their IP, noting: “If left unprotected, a good invention or creation may be lost to larger competitors that are in a better position to commercialize the product or service at a more affordable price, leaving the original inventor or creator without any financial benefit or reward. Adequate protection of a company's intellectual property is a crucial step in deterring potential infringement and in turning ideas into business assets with a real market value.”
Indeed, the U.S. Patent and Trademark Office points out the annual costs of IP theft are estimated at $250 billion and 750,000 jobs. On small enterprises, the USPTO points out: “Small businesses often find themselves at a particular disadvantage because they often lack the resources and expertise available to larger corporations. Small businesses also often lack the familiarity with the process of protecting their intellectual property: research conducted in Spring 2005 by the U.S. Patent and Trademark Office (USPTO) indicates that only 15 percent of small businesses that do business overseas are aware that their IP protection in the U.S. does not travel - that is, that a U.S. patent or trademark provides protection only in the United States.”
It is crucial that entrepreneurs and smaller firms understand how IP protections work, and how they can be used for their own ventures.
Small business owners can find help at the websites of both WIPO and the USPTO.
The USPTO’s “Small Business Education Campaign” page can be found by clicking here.
WIPO’s “Small and Medium-Sized Enterprises” page can be accessed here.
Why not use World Intellectual Property Day 2011 on April 26 to fully explore and utilize IP protections for your business?
Raymond J. Keating, Chief Economist
This year’s theme is “Designing the Future.” It’s noted in a statement from WIPO (World Intellectual Property Organization): “This year’s World Intellectual Property Day on April 26 celebrates the role of design in the marketplace, in society and in shaping the innovations of the future… The intellectual property system encourages designers to produce attractive items that are easier, more comfortable and safer to use, by helping to protect original designs against unauthorized copying and imitation. In international markets, companies need to be able to protect their designs quickly and cost-effectively in several countries.”
WIPO Director General Francis Gurry added: “Design is where form meets function. It determines the look and feel of the products we use each day – from everyday household items to the latest tablet computers. Design marries the practical with the pleasing. It brings style to innovation.”
In terms of protecting IP, it is small and mid-size firms that benefit most.
WIPO points out: “New products, brands and creative designs appear almost daily on the market and are the result of continuous human innovation and creativity. Small and medium-sized enterprises (SMEs) are often the driving force behind such innovations.”
WIPO stresses how important it is for small and mid-size businesses to protect their IP, noting: “If left unprotected, a good invention or creation may be lost to larger competitors that are in a better position to commercialize the product or service at a more affordable price, leaving the original inventor or creator without any financial benefit or reward. Adequate protection of a company's intellectual property is a crucial step in deterring potential infringement and in turning ideas into business assets with a real market value.”
Indeed, the U.S. Patent and Trademark Office points out the annual costs of IP theft are estimated at $250 billion and 750,000 jobs. On small enterprises, the USPTO points out: “Small businesses often find themselves at a particular disadvantage because they often lack the resources and expertise available to larger corporations. Small businesses also often lack the familiarity with the process of protecting their intellectual property: research conducted in Spring 2005 by the U.S. Patent and Trademark Office (USPTO) indicates that only 15 percent of small businesses that do business overseas are aware that their IP protection in the U.S. does not travel - that is, that a U.S. patent or trademark provides protection only in the United States.”
It is crucial that entrepreneurs and smaller firms understand how IP protections work, and how they can be used for their own ventures.
Small business owners can find help at the websites of both WIPO and the USPTO.
The USPTO’s “Small Business Education Campaign” page can be found by clicking here.
WIPO’s “Small and Medium-Sized Enterprises” page can be accessed here.
Why not use World Intellectual Property Day 2011 on April 26 to fully explore and utilize IP protections for your business?
Raymond J. Keating, Chief Economist
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