CHAPTER
12 Intellectual Property
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12.1 Introduction to Intellectual Property
LEARNING OUTCOMES
5.2.1 Define intellectual property as creations of the mind that have value but can exist purely as
data.
Creative works such as an artist’s designs, a composer’s songs or the software created by a programmer
take effort to create and are valuable as they benefit their owners. The owner of a song, for instance, can
benefit from feeling entertained by listening to the song. This is similar to how physical property such
as a chair or a house requires effort to produce and also benefits their owners. However, unlike physical
property, some works are creations of the mind and can exist purely as data with no physical form. Such
creative works are called intellectual property.
The owner of physical property such as a chair or a house ER MS
can easily use locks or chains to prevent the property KEY T
from being stolen or used by others without permission.
However, it is not as easy to do the same for intellectual Intellectual Property
property such as music or computer programs. For Creations of the mind that have
instance, while it is easy to copy music files or programs value but can exist purely as
from one computer to another, doing so may be illegal if data with no physical form
the owner of this intellectual property disallows it.
While the legal conditions for whether a work is considered intellectual property are complex and vary
depending on type, intellectual property must generally have:
1 Originality and Creativity 2 Fixation 3 Ownership
The work must be original The work must be fixed The work must have an
and showcase a degree of in a tangible medium of identifiable owner or author
creativity. It cannot be copied expression (e.g., saved as for legal rights to be assigned
from existing works. a digital file). It cannot be and enforced. In Singapore,
an idea without a fixed and only humans can be
recorded description. recognised as authors under
the Copyright Act.
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1. Discuss whether each of the following may be considered intellectual property.
a) Sculptures
b) Business logos
c) Facts
d) Source code
e) Titles
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12.2 Copyright
LEARNING OUTCOMES
5.2.2 Describe copyright as the legal right of owners to control the use and distribution of their
intellectual property under the Copyright Act.
5.2.3 Explain that copyright owners can grant a license to authorise or forbid the use and
distribution of their intellectual property under certain conditions.
The legal right of owners to control the use and
ERMS distribution of their intellectual property is called
KEY T copyright. Copyright protects programmers against
theft, misuse, and unauthorised copying of their
Copyright software.
The legal right of owners to control the
use and distribution of their intellectual However, some owners may intentionally want to give
property away their intellectual property or to openly declare
that they have granted permission for use of the
License intellectual property under certain conditions. An official
An official description of activities that are description of activities that are authorised or forbidden
authorised or forbidden by the owner of by the owner of intellectual property is called a license.
intellectual property While it is possible to write a license from scratch, most
intellectual property owners typically re-use existing
licenses. A wide range of licenses with different levels
of restrictiveness are available. A license can also refer
to the authorisation that is granted by the owner of the
intellectual property after a fee is paid or when certain
conditions are satisfied.
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Between 2011 and 2018, legal disputes ensued regarding
the copyright status of selfies taken by Naruto, a Celebes
crested macaque in Indonesia, using a professional wildlife
photographer’s camera. The court ultimately ruled that
the photographs, being created by a non-human, are not
copyrightable.
Similarly, AI-generated content without an identifiable human
author is not copyrightable under Singapore law. However,
if a user makes significant creative modifications to the AI-
generated content, the human-authored parts of the work can
potentially be protected by copyright.
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1. Copyright is the legal right granted exclusively to programmers for protecting their software or program code
from theft, misuse, and unauthorised copying. True or False?
2. Copyright owners may use licenses to grant other users access and use of a copyrighted work in exchange for
a fee. True or False?
12.3 Software Licenses
LEARNING OUTCOMES
5.2.4 Identify computer programs as an example of intellectual property and distinguish between
proprietary software, freeware, shareware as well as free and open-source software (FOSS)
based on their licenses.
It is important to understand the different types of software licenses to avoid infringing copyright laws.
12.3.1 Proprietary Software
Proprietary software refers to commercial software
for which most of the legal protections under
copyright are retained. It is usually not legal to copy,
modify or distribute proprietary software. The terms
and conditions for which the proprietary software
may or may not be used under copyright protection
law are usually communicated to users through an
End User License Agreement (EULA) that the user
must accept in order to use the software. In addition
to these restrictions, the source code for proprietary Windows macOS Operating
software is usually kept secret. Operating System System
While these restrictions may seem severe, it is
important to remember that software is a form of
intellectual property, and it is the right of the owner
to be compensated for use of the property (usually
by selling licenses).
The Windows operating system is an example of
proprietary software where unauthorised copying is Microsoft Excel Adobe Photoshop
illegal and majority of the source code is kept secret.
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12.3.2 Freeware and Shareware
Freeware is proprietary software that it is available for
use at no cost. Some freeware may also be known as “lite”
versions of proprietary software, which allow users to try
a limited version of the software while promoting the full
version. Similarly, shareware is demonstration software
that is distributed for free but for a specific evaluation
period only. After the evaluation period, the program
expires, and the user can no longer access the program Google Chrome Microsoft Teams
unless they pay a registration fee.
Like most proprietary software, the source code for
freeware and shareware is usually kept secret and
modifying the software is usually illegal. However, unlike
most proprietary software, it may be legal to copy and
distribute freeware and shareware. Adobe Reader and
Skype are examples of freeware, while Camtasia Studio WinZip Zoom
and WinRAR are examples of shareware.
12.3.3 Free and Open-Source Software (FOSS)
Free and open-source software (FOSS) grants users the
freedom to change, copy, study, and share the software.
The term “free” in “free software” refers to the freedom to
use, not the price. Despite the freedom to copy, modify,
and distribute FOSS, it is still protected under copyright,
allowing the copyright owners to impose certain terms of
use. For instance, these terms may include the requirement
to always distribute the software with its source code, Blender Scratch
provide attribution to the original authors, and ensure that
any modifications are distributed under a similar license.
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There are many FOSS licenses created by When the legal protections typically granted
various institutions with varying levels of to intellectual property have expired, been
restrictiveness, such as the Apache License, surrendered, or are inapplicable, the intellectual
the Berkeley Software Distribution (BSD) property is placed in the public domain. Public
License, the Massachusetts Institute of domain software is not protected by copyright,
Technology (MIT) License, the GNU Lesser allowing anyone to legally copy, modify, and
General Public License (LGPL), and the GNU distribute it. Some authors may intentionally
General Public License (GPL). Knowledge of release software into the public domain to
these licenses and the differences between benefit the public. For example, the first-ever
them is not covered in this textbook. program for running a web server was released
in 1990 under the public domain.
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Freeware Besides software, various other copyrighted works
Proprietary software that is available for use such as books, photographs, and music can be licensed
at no cost similarly using Creative Commons (CC) licenses. These
licenses, like FOSS licenses, grant users the freedom
Free and open-source software (FOSS) to copy, modify, and distribute copyrighted works.
Software where users are given freedom to However, it’s important to note that CC licenses are not
change, copy, study and share the software intended for software and should not be used for this
and its source code purpose. Instead, they are suitable for licensing content
that is delivered using software. For example, higher-
Proprietary Software education course materials like videos and notes that
Commercial software for which most of the are created by universities and shared freely on the
legal protections under copyright are retained Internet (known as open courseware) often utilize CC
licenses.
Shareware
Demonstration software that is distributed for The Linux operating system is an example of FOSS
free but for a specific evaluation period only licensed under the GPL, in which the source code is
freely available for modification. The Python interpreter
used in Chapter 4 of this textbook is also distributed
under an FOSS license.
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1. The source code of proprietary software is usually kept secret. True or False?
2. Shareware refers to software that is used for demonstration purposes and is usually made available for a
specific evaluation period only. True or False?
3. Free and open-source software refers to software that is free-of-charge as long as users abide by its terms of
use. True or False?
12.4 Software Piracy
LEARNING OUTCOMES
5.2.5 Recognise software piracy as the illegal use and distribution of copyrighted computer
programs in a manner that is forbidden by their license.
The crime of copying, distributing and/or using copyrighted software illegally is called software piracy.
Despite being illegal, software piracy is still prevalent and can take place in many forms. For instance, in
2023, a Singaporean company had to pay over $30,000 in damages after its employee installed and used
an unlicensed copy of licensed software on a company laptop. Activities such as installing multiple copies
of proprietary software without purchasing additional licenses or sharing proprietary software with
unlicensed users are considered software piracy and can lead to similar legal repercussions. This illicit
practice causes significant revenue loss for intellectual property owners, ultimately resulting in higher
prices for legitimate buyers.
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While some users may unintentionally install pirated software
without realising it, the distribution and installation of
KEY T
pirated software typically involve unusual steps that should Crack
alert the user to its illegality. For instance, software pirates A program that modifies software
may distribute installation files through illegitimate websites so that the software cannot detect
or use programs called cracks to modify the proprietary that it is being used illegally
software, making it undetectable for illegal use. Pirated
software for mobile phones may require users to perform Software Privacy
complex steps to modify their phones before installation or The crime of copying, distributing
to bypass the built-in software store for installation. Use of and/or using copyrighted software
pirated software could also unnecessarily expose computers in a manner that is not permitted by
to spyware, malware and viruses that can lead to identity its license
theft, loss of personal data, and unexpected system failures.
If you suspect that you have unintentionally installed pirated software, seek assistance from a teacher or
parent to verify the legality of the installed software. In most cases, pirated software can be replaced with
an alternative open-source program that uses a less restrictive license and can be downloaded legally for
free.
12.5 Copyright Infringement
Software piracy is an example of copyright infringement, which is the use or distribution of copyrighted
work without the permission of the copyright owner. Copyright infringement can happen with any
copyrighted materials, such as texts or pictures on the Internet, and it is like stealing. For instance, in 2024,
a Singaporean and his two companies were charged for selling illegal streaming devices and offering to
install computer programs that would help customers watch pirated shows, infringing the copyrights
of companies such as Disney, Netflix and the Football Association Premier League. If convicted, such an
offender may face a lengthy jail term and multiple hefty fines.
Students using materials from the Internet for schoolwork should adhere to the following guidelines to
avoid committing copyright infringement:
Check and follow the website’s terms and Limit reproduction of a copyrighted work to
conditions. 10% (for educational purposes only).
Websites often have rules about using their If you are using copyrighted materials for research,
content, like whether you can copy, download, or study, or other educational purposes, you can
link to materials. Some content may have a specific copy up to 10% of the electronic version of a work.
license, like a CC license, that states if you can use The copied work should not be changed and must
it or not. If there are no notices, you should ask the be properly cited to avoid plagiarism.
copyright owners for permission.
Consider using public domain material instead. Verify and cite your sources when using
generative AI.
Works found in the public domain can be copied It is important to be aware that generative AI can
and modified without permission. However, it is create inaccurate and potentially plagiarised
still important to acknowledge or cite the authors content. Therefore, it is crucial to acknowledge
properly to avoid plagiarism. your use of generative AI, and to verify and cite the
sources used by the AI to generate the content.
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Copyright Infringement
The use or distribution of copyrighted work
without the permission of the copyright
owner
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Plagiarism is the act of passing off someone else’s original work as your own. It is a serious ethical offense
and can often tarnish one’s reputation.
A student who is found to have committed plagiarism may receive no marks for the relevant academic
assignment, project, or thesis. Depending on the severity of the offense, the student may also be denied
a grade for the relevant course, or face expulsion from the educational institute. For example, in 2024, a
Singapore law graduate had her law license revoked after it was found that she committed plagiarism in an
examination while she was an undergraduate.
Although plagiarism and copyright infringement are two different concepts, they may overlap to a
considerable extent. In Singapore, a person who wilfully commits such an infringement and derives
significant commercial advantage from it may be given a fine of up to $20,000 or a prison term of up to 6
months.
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1. For each of the following scenarios, state whether the person described is guilty of copyright infringement.
a) Alice takes her friend’s artwork and submits it for a contest as her own artwork without her friend’s
permission.
b) Bob installs a computer game on two different computers even though the license he purchased allows for
one installation only.
c) Cindy purchases an educational license for a spreadsheet program and installs the program on her home
laptop for school projects.
d) Dan downloads some public domain source code and submits it as his own for a homework assignment.
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1. Which of the following best describes intellectual property?
A Creations of the mind that have value and can exist purely as data
B Ideas that are discussed in public forums and social media
C Physical goods that are original and showcase a degree of creativity
D Public knowledge that can be freely used by anyone
2. Which of the following statements regarding licenses is true?
A Licenses are automatically granted upon request
B Licenses can both authorise or forbid the use and distribution of intellectual property under certain
conditions
C Licenses can only forbid the use and distribution of intellectual property under certain conditions
D Licenses transfer copyright from the original owner to the licensee
3. Match each type of software to its correct description.
Software that is free to use, modify and
Proprietary software
distribute.
Software that is available for free but might offer
Freeware
additional features for a price.
Software that is owned by an individual or
Shareware
company, often requiring a purchase or license.
Free and open-source Free software that may come with limitations on
software usage, such as being offered for a trial period.
4. To combat software piracy, some developers use an online activation system where the software must first
connect to a server and receive the developer’s authorisation before the software can be used.
a) Define software piracy.
b) Suggest two ways that an online activation system might be detrimental to legitimate users of the software.
5. Across the world, the music, television, and film industries have been hit hard by acts of piracy.
a) Describe two potential economic effects on the music and film industries if piracy is not curbed.
b) Siti enjoys watching a television series that is only available on an online video site. After some research, she
realises that she can download the television series onto her computer hard drive so that she can watch the
videos without going online. Explain whether doing so is considered to be copyright infringement.
c) Alex finds a photograph of a wall mural on a website. He notices that the photograph was labelled with the
icon shown in Figure 7.12.
Figure 7.12 Icon used in a photograph’s label
Search online and explain what this icon represents.
d) Describe a situation where music can be downloaded legally without copyright infringement.
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ANSWER
Pg. 471-Quick Check 12.1
1. a) Sculptures may be considered intellectual property. A sculpture is a work of art and an expression of
creativity by a human, usually an artist.
b) Business logos may be considered intellectual property. A business logo is a creative work that is designed
and drawn by a human, usually a designer.
c) Facts are not considered intellectual property. A fact is not original or an expression of creativity and cannot
be owned.
d) Source code may be considered intellectual property. Source code is a form of creative work that is written
and designed by a human, usually a programmer.
e) Titles are not typically considered intellectual property. Titles are often too short to be considered distinctive
or creative as they may be used by multiple creative works of similar nature.
Pg. 473-Quick Check 12.2
1. a) False. Copyright is the legal right granted to all owners of intellectual property, not exclusively to
programmers only.
b) True
Pg. 475-Quick Check 12.3
1. a) True
b) True
c) False. FOSS licenses grant users the freedom to change, copy, study and share the copyrighted software and
its source code. Not all software that is free-of-charge is considered FOSS, and conversely, some FOSS may
incur costs related to distribution, additional services, support, or customisation.
Pg. 477-Quick Check 12.5
1. a) Guilty of copyright infringement. (By passing someone else’s work off as her own, Alice is also guilty of
plagiarism.)
b) Guilty of copyright infringement.
c) Not guilty of copyright infringement.
d) Not guilty of copyright infringement. (However, by passing someone else’s work off as his own, Dan is guilty of
plagiarism.)
Pg. 478-Review Questions
1. A
2. B
3.
Software that is free to use, modify and
Proprietary software
distribute.
Software that is available for free but might offer
Freeware
additional features for a price.
Software that is owned by an individual or
Shareware
company, often requiring a purchase or license.
Free and open-source Free software that may come with limitations on
software usage, such as being offered for a trial period.
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ANSWER
4. a) Software piracy is the crime of copying, distributing and/or using copyrighted software in a manner that is
not permitted by its license
b) Any 2 of the following (accept any possible answer):
• Legitimate users may face inconvenience or may not be able to use the software altogether if they are in
a location with poor or no internet connectivity as the online activation system requires a connection to
the developer’s server for authorisation.
• If the developer’s server goes offline due to business or technical reasons, legitimate users will not be
able to use the software altogether.
• The online activation system may limit the number of activations allowed per license, which can
inconvenience legitimate users if they need to reinstall or transfer the software but are unable to
“deactivate” the software on the old systems (e.g., due to lack of access or hardware failure).
5. a) Possible answers include (accept any possible answer):
• The price of music albums, television programmes and films would go up to compensate for the loss
in sales due to piracy.
• There would be fewer music albums, television programmes and films produced as people would find
it increasingly difficult to make money from doing so.
b) Siti’s actions are considered to be copyright infringement as she did not have explicit permission from the
copyright owner to copy the television series onto her hard drive.
c) The icon indicates that the photograph is under a Creative Commons license. It means that users are
granted permission to copy, modify and distribute the photograph under certain conditions.
d) Music may be downloaded legally without copyright infringement as long as the copyright owner has
given permission for the downloading to occur. For instance, the copyright owner may allow a music file
to be downloaded from a legitimate online music store as long as payment is made. Alternatively,
the music file can be placed under a Creative Commons license, which explicitly gives everyone
permission to download the file as long as certain conditions are met.
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