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CyberRegs: A Business Guide to Web Property, Privacy, and Patents: A Business Guide to Web Property, Privacy, and Patents

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CyberRegs: A Business Guide to Web Property, Privacy, and Patents: A Business Guide to Web Property, Privacy, and Patents


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  • Copyright 2002
  • Edition: 1st
  • Book
  • ISBN-10: 0-201-72230-5
  • ISBN-13: 978-0-201-72230-7

"Exceedingly well analyzed and thoughtfully presented. Bill Zoellick has skillfully set out the leading e-Business issues and pulls no punches in challenging the conventional wisdom underlying current law and policy. A great jumping off point for understanding--or changing--today's crucial business trends."
--Sara Greenberg, e-Business Attorney at Testa, Hurwitz & Thibeault, LLP

"The author has fully and admirably accomplished the stated purpose of examining the disruption and instability that the Web has introduced into the world of intellectual property."
--Dan Carroll, Chairman, The Carroll Group

"In this well-written, engaging book, Zoellick examines the technical, business, and political angles of complex issues facing the Web today. The issues raised in CyberRegs are ones that every organization doing business on the Web will face. Zoellick offers business managers fresh insight into coping with these challenges and makes a cogent argument for participating in the political debate over how we will regulate the Net economy."
--Mark Walter, Senior Editor, The Seybold Report

"The book cuts a clear, original, and insightful path through a set of timely controversial legal and business issues. It helps business people build successful strategies for today's Internet business climate, and provides useful and practical perspective for all citizens concerned about the future direction of Internet policy."
--Adina Levin, Senior Director, Corporate Strategy, Vignette Corporation

"Zoellick gets it. The author realizes that business is built on knowledge and trust, and he doesn't pander to his audience in getting that point across. This book will give nontechies background, and then some, to address emerging technology issues in business."
--Sol Bermann, J.D. Legal Project Manager Technology Policy Ohio Supercomputer Center

"Mr. Zoellick pulls from his own experience to provide an interesting look at some of the most important issues confronting business in the future--the nature of the digital economy and the forces that will shape its future growth and development. This is a debate that every business in America needs to join."
--Jon Garon, Professor of Law, Franklin Pierce Law School

"The book is the best one-volume survey for a generalist about the changing law of the Internet circa 2001."
--Paul M. Schwartz, Professor of Law, Brooklyn Law School

"This is an excellent book.... I've not seen any books on intellectual property that come at the topics the same way."
--Capers Jones III, Chief Scientist Emeritus of Artemis Management Systems and Software Productivity Research

"Bill has provided a masterful overview of a complex area of the law, explained the legal precedents that have shaped part of patent and copyright law over the past years, and has wrapped it all in the thoughtful backdrop of the immature and rapidly changing e-business landscape."
--Randolph Kahn, ESQ

Government regulation and new legislation, coupled with technology, have the potential to dramatically change the nature of the World Wide Web. This thought-provoking book explains what effects regulation may have on business managers, their organizations, and the Web as we know it.

CyberRegs brings you up to speed on current developments in patent, copyright, digital signature, and privacy policies. Taking an even-handed approach to the debate between greater and lesser control of the Internet, this book provides fascinating background on recent Web legislation. It discusses in depth the many complex policy issues now being hotly debated, and speculates on possible future legal outcomes.


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The Business of Inventing: A Case Study

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Table of Contents

(NOTE: Most chapters conclude with notes.)




1. Creating and Resisting Change.

Brief Background.

Copyright and Policy.

Setting the Stage for Napster.

Infringement by Users?

Contributory Infringement?

Taking Care of Business in the Courts.

Controlling the Market.

An Alternative and a Threat to Control.

Does Anyone Have the Time?

Business Takes Care of Business.


Lessons from Napster.

2. Congress Asserts Control.

The Digital Millennium Copyright Act.

The DMCA in Action.

Scope: The Question of Commercially Significant Purpose.

Restriction of Access.

Consequences and Causes.

Making Problems Simple.

Making Problems Simple.

Keeping Up with Developments.

3. Control Put Into Practice.

Electronic Distribution as Threat and Opportunity.

Four Strategies.

Technical Protection Services.

Contracts and Licensing Agreements.

Licenses as a Way to Constrain a User’s Rights.

Digital Distribution and New Laws Make Use of Licensing Easier.

Changing the Publishing and Distribution Model.

From Specific to General.

Changing the Business Model.

Convergence: Complete Control.

Technical Restriction.

Licensing: The Second Side of the Triangle.

Closing the Triangle: The DMCA.

A Complex Message for a Complex Problem.

4. Copyright Policy and Progress.

The Perspective from Mars.


Implications for Business.

Value Moves Downstream.

Business Focuses on Licenses, Not Sale of Copies.

Value Increases through Aggregation.

Practice and Policy.

Starting on the Wrong Foot.

Moving Forward.

5. Copyright: Further Reading.

II. Patents.

6. Subdividing the Internet Frontier.

The Power of Patents.

Why Have Patents at All?

Basic Rules.

Amazon’s 1-Click Patent.

What’s So Obvious?

Where’s Alice?


What to Make of All This.

7. Patent Sprawl.

Some Recent Internet Patents.

Concerns Raised by These Patents.

High-Level Approach Rather Than Detailed Technology.

Application of Traditional, Offline Approaches to the Internet.

The “Obviousness” Problem.

Impediment to Innovation.

Not Necessary for Growth.

Intellectual Property Time Bombs for Internet Businesses.

Burdensome Expenses of Litigation

Making Sense of the Dispute.

8. What is Patentable?


Adding a Computer to a Known Process.

Software Patents at the Start of the Internet Boom.

9. Claiming More: Business Method Patents.

An Initial Setback.

Expanding the Scope of Patents.

The Impact of State Street.

Subject Matter and Breadth.

State Street in a Nutshell A Market with Patent Protection A Market with Patent Protection

10. Predicting the Impact of Internet Patents.

A Market without Patent Protection.

What If?

The Argument against Patenting.

The Argument for Patenting.

A Market with Patent Protection.

A Potential Deal with Microsoft.

The Deal Goes Sour.

The Patent Works.

Financial Outcome, Thanks to the Patent.

Pros and Cons: Patent Policy.

11. The Business of Inventing.

A Business Method Laboratory.

Inventing from Value and Extending Value.

Walker Digital’s Big Idea.

Learning from Walker Digital’s Practices

12. Congress and Patents.

Scope of the American Inventors Protection Act.

Congress Meets State Street.

A Limited, Adapted Response.

Looking Forward.

13. Maximizing Benefit, Minimizing Cost.

Who’s Behind the Change?

14. Patents: Further Reading.

III. Electronic Signatures.

15. Matching the Legislation to the Problem.

What the Legislation Does.

What the Legislation Does Not Do.

What Is the Problem to Be Solved?

Unresolved Issues.

Summary of the E-SIGN Act Approach.

A Deeper Look Technical Background on Digital Signatures.


16. The Impact of the Legislation.

Recognizing How Little We Understand.

17. Learning From the Electronic Signatures Act.

Recognizing How Little We Understand.

Restricting Government Action to What Is Necessary.

Accepting the Fact That Markets Need Time to Work.

The E-SIGN Act as Model.

18. Electronic Signatures: Further Reading.

IV. Privacy.

19. A Market for Privacy.

Putting a Price on Private Information.

The Value of Aggregation.

Developing a Framework for Privacy Policy.

20. The Right to Privacy.

The Right to Be Let Alone.

The Basis for Privacy Rights.

The Nature of the Privacy Right.

Conflict with Other Laws Adds to the Confusion.

Recent Developments: Telemarketing.

Summarizing the Nature of the Privacy Right.

The Law and Privacy.

21. Consumer Concerns.

The DoubleClick Story.

Consumers and Web Privacy.

Let's Make a Deal.

Cede Some Control.

Make It Easy.


Broader Privacy Concerns.

The Tone of the Concerns.

Concern about Technology.

Creating Fertile Soil for Web Business.

A Deeper Look Technical Background on Cookies and Web Bugs.


Web Bugs.

More Information.

A Deeper Look Technical Background on the Platform for Privacy Preferences Project.

What Is in a P3P Privacy Policy Statement?

User Agents and Services.

What Bothers Privacy Activists.

Encoding the Industry View of Privacy.

Making Data Collection Easier.

Distracting from Creation of Meaningful Privacy Regulations.

P3P in the Business Context.

Is P3P a Good Thing?

22. The Privacy Debate in Congress.




State Laws.


Safe Harbor.

Notice of Change.

Assembling the Pieces.

23. A Privacy Framework.

Privacy as a Right.

Monetizing Privacy.

The Fallacy of the Powerless Customer.

My View.

24. Privacy: Further Reading.

Printed Resources.

Web Sites.

Epilogue.Index. 0201722305T081772001


There is no "innate nature" of the Web. This was one of the key insights that Lawrence Lessig expressed in his important book, Code.1 The coast of Maine has an innate nature. The Great Plains have an innate nature, as do the slickrock canyons of Utah. In each of these places, someone starting a business must contend with truly immutable dimensions of climate and geography. The fundamental character of such a place does not change except in geologic time; it exists apart from the people who live and work there.

The Web is not like that. It is made up of computer code, which is made by people. If people don't like the effects of the computer code, they can change it, quickly. The typical way to change a complex application that is in daily use, like the World Wide Web, is to add layers. The layers can consist of new computer code that changes the way people and companies access and use the Web. The layers can also consist of legal code, often coupled with encryption and other technical constraints, that has the same effect.

The fact that the face of the Web can be changed relatively quickly, over a matter of a year or two, means that talking about the "nature of the Web" is risky, if not out and out misguided. This has not stopped people from writing thousands of books and articles that do just that. The formula for such "Web nature" books is simple and, by now, familiar. They start by asserting that the Web changes everything and that old strategies cannot work in the new Internet era. Then, building on some set of assumptions about the supposed nature of the Web, the books reason forward to projections about what to do and what will succeed in the new Internet era of business.

Starting a business built on assumptions about the nature of the Web is even riskier than writing books about it. For example, it was supposed to be in the nature of the Web to do away with the middleman ("disintermediation"), creating a new world in which digital content moved freely and without control. But the Digital Millennium Copyright Act and the rest of copyright law has intervened to change all of that. People involved in creating technologies to enable free exchange of DVD movies are now involved in lawsuits that could ultimately lead to jail terms. Napster, the free music-exchange Web site, is, as I write this, facing possible shutdown by the major music labels.

Here is another example: it was supposed to be in the nature of the Web to enable new, personalized, one-to-one shopping, thus creating enormous new retail opportunities. Many things have gone wrong with this idea over the past three years, transforming it from an article of faith to something that is now viewed with deep suspicion. One critical thing that got in the way is that consumers became uneasy about the collection and use of personal information on the Web. This consumer malaise has a good chance of transforming itself into federal privacy legislation. The new legislation, if enacted, will create a new Web nature.

The nature of the Web was also supposed to usher in a new era of business innovation. But it turns out that evolving patent law makes it possible for companies to own monopoly rights to such innovation for a period of 20 years. Sperry and Hutchinson, the S&H Green Stamps company that pioneered buyer incentive programs for retail stores, now licenses patented technology owned by Netcentives in order to offer incentive promotions on the Web. Once again, the intersection of law and the Web has transformed Web nature into something very different than people first expected.

The Web Grows Up

Not long ago people believed that the Web, by the force of its innate nature, would radically change business, opening enormous new opportunities. It was a great time to be in the stock market. It was a great time to be starting companies. There was the expectation of new beginnings.

Many things came together to change such expectations. The change came, in part, because many Web businesses were built on naive, though hopeful, ideas. Another problem was that investment extended itself too far, indulging in "irrational exuberance," to use Alan Greenspan's memorable phrase. Part of the problem was simple miscalculation and poor execution.

Web companies also lost sight of the fact that they work in a firmly established context of existing property rights, power structures, and laws. Like an exuberant, self-confident kid, Web business has discovered that it needs to learn some lessons about how the world really works.

This metaphor of "growing up" is useful because it captures both what is necessary and what is dangerous as we come to terms with the Web. The necessary part is the recognition that the Web exists in a powerful context of constraints. The once-popular notion that the Web's freedom-loving, anarchistic "nature" will sweep away existing rules, business arrangements, and even governments is, of course, romantic and a poor foundation for planning, policy, or new business strategy.

The dangerous aspect of the current transition is that vision and excitement about the future could be replaced with cynicism and control. The other side of the belief that the Web is an inevitable, irresistible force of positive change and growth is the belief that it is a force of chaos and destruction that must be controlled. For every John Perry Barlow who proclaims to the governments of the world that Cyberspace has no elected government and that governments are not welcome,2 there is a Jack Valenti who sees "brazen disdain for laws and rules."3 Neither approach is good for Web business.

Business and Policy

I wrote this book because it is clear that government regulation and new legislation, coupled with technology, have the potential to dramatically change the nature of the Web. Lawrence Lessig is right: the intersection of new Web architectures, new laws, and commercial business interests will create a new kind of Web business reality. The new Web business has the potential to be so radically different from the Web of the late 1990s as to be nearly unrecognizable to a denizen from the old world of "Net 95."

Here's the critical thing: you can change the outcome of this story. The shape of Web business--its nature, if you like--is in flux. Most legislation regarding key Web business issues is still tentative and uncertain. The arguments for and against different kinds of regulation or new government action are still taking shape.

What this means is that there are two really good reasons for you to pay more attention to the way that laws, business interests, and Web architecture are intersecting to change Web business. The first is, of course, that it is in your own business interest to understand the changes and to be able to anticipate the next stage of developments. The second and even more interesting reason is that you can work to ensure that the new developments make sense for you and your business.

I have found that most business managers are ill prepared to capitalize on either of these potential benefits. It is clear that they need to

  • Come up to speed quickly on the last decade of developments in patent policy, copyright policy, and privacy policy so that they can be conversant about current issues
  • See the bigger picture about how these legal and policy developments could affect business activity on the Web
  • Begin to articulate a coherent viewpoint that expresses their particular interests with regard to these areas of policy

This book strives to respond to these needs.

An Emerging Viewpoint

This book is not a tract. The business community is always characterized by a broad diversity of viewpoints. Businesspeople from all points of view are well served by a careful review of recent developments and by an attempt to sort through the issues and set them out fairly. I have tried to produce such a review and attempt at explication.

But it is inevitable that, in spending so much time working with policy issues and talking with experts, a point of view emerges. What emerged was not what I expected when I started out gathering material for this book. At the outset, I saw that the issues that this book examines--copyright, patent law, privacy, and electronic identity--would have big impacts on the nature of the Web and on the shape of Web business. Naively, I hoped to uncover policy programs and proposals that were as large and striking as the issues themselves.

What emerged instead was a strong sense that we should be cautious and parsimonious in proposing regulations and legislation. In some cases we already have new legislation that is potentially dangerous, changing the Web and the fundamental relationship between producer and user in ways that seem to me to be too rapid and far reaching, given our current level of understanding. In other cases we seem too anxious to patch problems and to use bailing wire to effect quick solutions before we understand the bigger picture of what is going on. So, the result of all this research, for me, was increased respect for the argument that we should proceed with restraint, understanding that the full development of the Web will take decades. Far from being a "do-nothing" point of view, this emergent viewpoint argues strongly for forceful, articulate intervention against some of the current proposals being put forth by different interest groups that want rapid development of new policies to "fix" the Web.

Whether you agree with my arguments for this emergent viewpoint or not, I hope you find the background perspective and the arguments that I present useful in establishing your own point of view. Debate is a good thing; we need more of it, and more effort to inform and support it.

Taking Responsibility for the Web

This is a difficult time. We are about five years into what was supposed to be a revolution in the way we use information and collaborate with others. As with any difficult revolution, not everything has worked as planned. Reactionary forces have mobilized and have, in some cases, aligned with government forces in order to use the original momentum and strength of the revolution as a way to consolidate power and position. At times like this what is needed is not renewed revolutionary zeal but careful, clear thinking about outcomes, about the mechanisms of change, and about the arrangements of property and power.

This sounds like radical stuff. It's not. The business community as a whole has a vested interest in continued growth, change, and innovation. The Web has been a prime generator of these benefits for the last five years. We now know that there is nothing inevitable about continued growth, change, and innovation. We have learned that the Web will only reflect the "nature" that we create for it. It is time to stop acting on the basis of an innocent hope in the power of the Web as something that is real in itself, apart from the businesses and people that use it and shape it. It is time to start accepting responsibility for creating the policies that will make the Web the kind of place that we want it to be.

It is my hope that this book contributes to your participation in that process.


  1. Lawrence Lessig, Code (New York: Basic Books, 1999). See Chapter 5 for more about his book.
  2. John Perry Barlow, "A Declaration of the Independence of Cyberspace," February 8, 1996. Available in May 2001 on the Web at http://www.theconnection.org/archive/category/technology/barlow.shtml.
  3. Jack Valenti, President and CEO of the Motion Picture Association of America, testifying before the House Commerce Committee's Subcommittee on Telecommunications, Trade and Consumer Protection on February 16, 2000 (106th Congress, Second Session, "Video on the Internet: iCraveTV.com and Other Recent Developments in Webcasting").



Note: Page numbers followed by the letters f and n indicate figures and notes, respectively


Abacus Direct, and DoubleClick privacy statement, 215

Abraham, Spencer, on E-SIGN Act, 161

ACLU. See American Civil Liberties Union

ACM. See Association for Computing Machinery

Adleman, Leonard, RSA public key cryptography algorithm, 126, 174–175

Adobe Systems Incorporated, PDF format, 41, 46

Aggregation of content, 57–58

Agre, Philip E., 273

Aharonian, Greg, 155

Alderman, Ellen, 205, 273

     patentability of, 94–95, 103
     in patents, 94–95, 96, 99n2

A&M Records, Napster v., 1–26. See also Napster
     Universal v. Corley and, 29

     Barnes and Noble sued by, 73, 76
     credit card digit display patent, 81–82
     Intouch Group, Inc. suit against, 85
     1-Click ordering system (See 1-Click ordering system)
     State Street v. Signature Financial Group impact on, 104–105

America Library Association, on DMCA, 35

America Online (AOL), patent licensing from Netcentives, 84

American Civil Liberties Union (ACLU), privacy and telemarketing, 206

American Express, patent licensing from Netcentives, 84

American Inventors Protection Act of 1999, 136–144
     First Inventor Defense, 137–142
     scope of, 136–137

"Anonymizer," 216, 234

AOL. See America Online

APPEL. See P3P Preference Exchange Language

Arrington, Clarence, 205

Association for Computing Machinery (ACM), 61
     DCMA, opposition to, 35
     Grace Murray Hopper award, 111

Asymmetric encryption, 174–176

Automated Telephone Consumer Protection Act (TCPA), 206

Award, Grace Murray Hopper, 111


Barlow, John Perry, on government involvement in Internet business, 152

Barnes and Noble
     Amazon.com suit against, 73, 76
     Express Lane ordering system for, 67
     injunction against, 73, 76

Barton-Davis, Paul, on obviousness of 1-Click ordering system, 74

BBBOnline (Better Business Bureau Online), and P3P, 245

BCD (Binary coded decimal) numbers, conversion to binary numbers, 94

Benson, Gottschalk v., 94–96

Bentsen, Lloyd, 106

Berman, Howard, and Business Method Patent Improvement Act of 2000, 141–143, 185

Berman, Jerry, on privacy legislation, 260–261

Berne Convention for the Protection of Literary and Artistic Works, 24n4

Berners-Lee, Tim, 68, 155–156

Bertelsmann AG
     BMG, 17
     Napster agreement with, 17–18
     and publishing and distribution model, 47

     contributory infringement and, 9
     noninfringing use and, 9
     "time shifting," 9

Better Business Bureau Online (BBBOnline), and P3P, 245

Bezos, Jeff
     BountyQuest, investment in, 75–76
     Tim O'Reilly addressing, 67–68

Biddle, C. Bradford, 187

Binary coded decimal (BCD) numbers, conversion to binary numbers, 94

Blown to Bits (Evans and Wurster), 62

Borland Quattro Pro, 112–113

     description of, 79n10
     in 1-Click patent dispute, 75–76

Boyle, James, 61–62, 156, 210–211, 273

Brandeis, Louis
     on Olmstead v. United States, 201
     on privacy, 201
     "The Right to Privacy" (Brandeis and Warren), 198–199

     in business method patents, 142
     First Inventor Defense and, 139
     and patentability, 105–106

Bricklin, Dan, 110
     Grace Murray Hopper award, 111
     and spreadsheet patent, 119n6

Brin, David, 274

Burns, Conrad, on privacy policy, 253–254

Business community
     and copyright, 33
     Digital Millennium Copyright Act (DMCA) and, 35
     and Internet, 277
     in patent policy change, 148, 149
     privacy and, 226–227

Business method(s)
     breadth in patenting, 142
     definition of, 141
     First Inventor Defense for, 137–142
     future uses of and patents, 139
     for Internet business (See Internet business method(s))
     non-obviousness in patenting, 142
     Patent and Trade Office affected by patenting, 147–148
     patentability of, 102–103, 104
     patenting, 126, 131–132, 147
     public review and comment for patenting, 142

Business method exception, 102–103, 104

Business method laboratory, 125–127

Business Method Patent Improvement Act of 2000, 141–143, 185
     criticism of, 143

Business model, changing, 47–48


Cat exercise, patent for, 87, 87f

CBS and consumer information, 193

CD audio
     copyright and, 10
     MP3 and, 10

Center for Democracy and Technology, 238, 275
     on privacy legislation, 260–261

Certification authorities, 165–166, 176
     VeriSign, Inc., 165–166, 176, 188
     VeriSign OnSite 4.0 Administrator's Handbook, 188

Chase, Brad, and Stac licensing, 116

Children's Online Privacy Protection Act (COPPA), 250
     safe harbor provision for, 257

Chuck D., on Napster, 15–16

CIP ("continuation-in-part"), 129–130

Circumvention, 28
     devices for, 29

"Click-wrap" agreements, 45

Clinton, Bill, signing of E-SIGN Act, 159

Coase, Ronald, 266–267

Coase theorem and privacy, 266–267

The Code Book (Singh), 188

Code (Lessig), 63, 274

Cohen, Julie, 62

"Comment: Misplaced Priorities: The Utah Digital Signature Act and Liability Allocation in Public Key Infrastructure" (Biddle), 187

Compuserve "Trend" system, 76

     American Inventors Protection Act of 1999, 136–144
     Business Method Patent Improvement Act of 2000, 141–143
     copyright changes by, 59
     on copyright policy, 1
     and copyright scope, 9
     digital copying, response to, 54
     E-SIGN Act (See Electronic Signatures in Global and National Commerce Act)
     empowerment by Constitution, 7
     House Commerce Committee's Subcommittee on Telecommunications, 34
     and licensing framework, 55–56
     and Patent and Trade Office budget, 153n2
     and patent policy changes, 135–144
     and patents, authority to grant, 69
     response to State Street v. Signature Financial Group, 137–138

     on copyright law, 6, 7
     empowerment of Congress by, 7, 69
     patent law based on, 68
     privacy in, 199–200

Consumer information
     access to, 254–255
     aggregation of, 193
     as business deal, 218–220
     context-based decisions and, 219
     Coyle, Tracy, and, 191–192
     defining, 252
     on Internet, 217–223
     in Internet transactions, 220–221
     market for, 194
     marketing of, 191–192
     privacy of, 207–209
     and regulation of collection, 252
     Web Engagement: Connecting to Customers in e-Business (Zoellick), 275

Content, aggregation of, 57–58

Contents Scramble System (CSS), 28

Context M.B.A., 111

"Continuation-in-part" (CIP), 129–130

Contract research organizations (CROs), 56–57

Contracts, 42–45

     in audio sample previewing, 85
     DoubleClick use of, 213–214, 233
     and Electronic Communications Privacy Act, 228n14
     IP addresses and, 233–234, 235n1
     management of, 234
     Netscape development of, 74
     in 1-Click ordering, 71
     and privacy, 213–214
     purpose of, 232
     rules for, 232–233
     vs. Web bugs, 231–232

COPPA. See Children's Online Privacy Protection Act

     and access to material, 31–32
     application of, 7, 17
     business community and, 33
     and CD audio, 10
     Congressional changes to, 59
     and content use, 32
     contributory infringement on, 8–9
     control over, 32, 48–50
     and decryption, 31–32
     devices and, 48–50
     and digital information, 54
     digital media and, 3–4
     electronic distribution and, 40, 58
     exclusive control over, 32
     "fair use" and, 7, 31
     first-sale rule for, 43–44
     foreign, 53
     further reading about, 61–64
     granting of, 7
     history of, 5
     infringement on, 8–9
     Internet distribution and, 5, 33
     licensing and, 55, 60
     limitations on, 7, 43–44
     as moral right, 24n4, 33
     noninfringing use and, 9
     objectives of, 53
     ownership of, 6
     vs. patent, 68
     in promoting progress, 8
     purpose of, 7
     scope of, 9
     "space shifting" and, 10
     as stabilizer, 59
     technical protection services for, 48–49
     "time shifting" and, 9

Copyright Act of 1709. See Statute of Anne

Copyright law and policy
     Berne Convention for the Protection of Literary and Artistic Works, 24n4
     circumvention, 28–29
     complexity of conflict over, 278–279
     conservativeness of, 22
     Constitution on, 6
     Constitutional basis for, 7
     contracts in, 42–43
     Federal Copyright Act of 1790, 6
     and foreign copyright, 6
     and future uses, 11–13, 22–23
     licenses in, 42–43
     limits on, 184
     market action in, 186
     and Napster, 1
     political basis of, 21
     resolutions for, 279–282
     Stationer's Company and, 5
     Statute of Anne, 5–6
     technical innovation and, 21–23
     Uniform Computer Information Transactions Act, 45, 51n3
     utilitarian basis of, 6, 21–22

Corley, Eric, 28

Corley, Universal v., 28–36
     and DMCA scope, 30–31
     Napster v. A&M Records and, 29

Council of Better Business Bureaus, safe harbor program in, 257

     narrow focus of, 146–147
     in patent policy change, 146–147

Coyle, Karen, 276

Coyle, Tracy, 191–192
     Coase theorem and, 267

CROs. See Contract research organizations

Cryptography and Network Security: Principles and Practice (Stallings), 188

CSS. See Contents Scramble System

Cybergold, ad view patent and, 104–105


D., Chuck, on Napster, 15–16

Data compression algorithm
     infringement by Microsoft, 116–117
     patent for, 114–117
     patentability of, 85–86

Data Encryption Standard (DES), 173–174

Database Nation: The Death of Privacy in the 21st Century (Garfinkel), 274

Databases, and privacy, 224–225

Davis, Randall, 63–64

The Death of Privacy (Rosenberg), 190

DeCSS, 28

DES (Data Encryption Standard), 173–174

Devices, and copyright, 48–50

Diamond v. Diehr, 96–98
     novelty and, 97
     in patent policy change, 146

Dickinson, Q. Todd
     on Amazon patent validity, 73
     on business method patents, 147

Diehr, Diamond v. See Diamond v. Diehr

Diehr, James R., 95

Diffie, Whitfield, and asymmetric encryption, 174

Digital certificate. See Digital signature(s)

"The Digital Dilemma: A Perspective on Intellectual Property in the Information Age" (Davis and Samuelson), 63–64

The Digital Dilemma (Computer Science and Telecommunications Board of the National Research Council), 62, 64

Digital ID. See Digital signature(s)

Digital information
     Congressional response to, 54
     control of, 55
     copying, 54
     copyright and, 54
     reading, 55
     referencing, 54

Digital Millennium Copyright Act (DMCA), 28–36
     and business community, 35
     and copyright control, 49, 50
     debate over, 34–35
     and DeCSS, 28
     and devices, 49, 50
     and end users, 37n6
     opposition to, 35
     scope of, 30–31
     and user access, 31–32

Digital music files
     exchange of, 4
     MP3 format for, 4

Digital signature(s), 163, 173–177
     authentication of, 165–166
     certification authority for, 165–166, 176
     definition of, 170–171n4
     description of, 173

Discovermusic.com, Inc., sued by Intouch Group, Inc., 85

DMCA. See Digital Millennium Copyright Act

Doonesbury (comic strip), in 1-Click patent dispute, 76

DOS. See Microsoft DOS

     Abacus Direct acquired by, 214
     adMonitor patent and, 92n1
     cookies used by, 213–214, 233
     infringement and, 82–83
     investigations of, 216
     L90 sued by, 82
     L90 suit against, 83
     and online advertising patent, 82–83
     opt-out policy of, 215–216
     privacy and, 213–217
     privacy statement of, 214–217
     profiling by, 213–217
     Sabela Media sued by, 82
     24/7 Media countersuit against, 82–83
     24/7 Media suit against, 82

DoubleSpace, and Stac Electronics, 116–117

Douglas, William O., on software patentability, 95, 135

Duet service, 21

Durham, Alan L., 156

DVD movies
     computer playback of, 27–28
     CSS for, 28
     and Linux, 27–29


e-Patent Strategies (Glazier), 156

E-SIGN Act. See Electronic Signatures in Global and National Commerce Act

Ebrary, 55

'870 patent, 84

Electronic Communications Privacy Act and cookies, 228n14

Electronic distribution
     "click-wrap" agreements and, 45
     copyright and, 58
     as copyright threat, 40
     focus of, 56–58
     licenses for, 43–45
     model for (See Publishing and distribution model)
     protection measures for, 41–51

Electronic Frontier Foundation, opposition to DCMA, 35

Electronic Privacy Information Center, 275
     on P3P, 244

Electronic signature(s), 159–188
     authentication of, 164, 165–166
     description of, 173
     digital (See Digital signature)
     further reading about, 187
     initial uses of, 179–180
     integrity of documents using, 164–165, 166
     liability for, 164, 167–169
     nonrepudiation of, 165, 166–167
     notarizing, 163–164

Electronic signature law and policy
     complexity of conflict over, 278
     E-SIGN Act (See Electronic Signatures in Global and National Commerce Act)
     resolutions for, 279–282
     state laws for, 169
     Utah Digital Signature Act (See Utah Digital Signature Act)

Electronic Signatures in Global and National Commerce Act (E-SIGN)
     in business contexts, 180–182
     and electronic records, 162
     exemptions from, 162
     government action in, 184–185
     impact of, 180
     intent of, 180
     and Internet business, 161
     limits of, 184
     market action in, 185–186
     and paper-based business, 162
     purpose of, 161–162, 280
     signing of, 159
     and state laws, 169
     vs. Utah Digital Signature Act, 183

Eli Lilly, Prozac patent, 105

     asymmetric, 174–176
     The Code Book (Singh), 188
     Cryptography and Network Security: Principles and Practice (Stallings), 188
     Data Encryption Standard (DES), 173–174
     Enigma, 173
     private key for, 175
     public key for, 175
     RSA public key cryptography algorithm for, 174–175
     symmetric, 173–174

The End of Privacy (Sykes), 225, 275

     and copyright, 5
     unification with Scotland, 5

Enigma, 173

Enteraindom, LLC sued by Intouch Group, Inc., 85

Entertainment Software Rating Board, safe harbor program in, 257

Evans, Philip, 62

Excel. See Microsoft Excel

Expedia. See Microsoft Expedia

Express Lane ordering system, injunction against use of, 67


Fair Credit Reporting Act, 190, 224

"Fair use"
     definition of, 7
     elimination of, 31

Fast food, revenue management for, 128–129

Federal Copyright Act of 1790, 6

Federal Trade Commission (FTC)
     music distribution industry investigated by, 14–15
     in privacy policy enforcement, 256
     and safe harbor programs, 257

First Inventor Defense, 137–142
     background of, 139–140
     and breadth, 139
     limitations of, 139–140
     and novelty, 139
     scope of, 140

First-sale rule, 43–44

Fischetti, Mark, 155–156

Flystra, Dan, 110

Foote Cone & Belding, 192

'411 patent. See 1-Click ordering system

Frankston, Bob, 110

Frost, Marion, and consumer information, 193

FTC. See Federal Trade Commission


Garfinkel, Simson, 274

Gartner, Gideon, 130

Gartner Group, 130

Gates, Bill, 84
     and Stac Electronics, 115–116

George, Glen, 114

Glazier, Stephen C., 156

Glieck, James, 156

Gnutella and decentralized file exchange, 24n4

Gottschalk v. Benson, 94–96
     and algorithm patentability, 94–95
     and software patentability, 94–95

Grace Murray Hopper award, 111


Hagel, John, III, 268–269

Halbert, Deborah J., 63

Hellman, Martin, asymmetric encryption, 174

Hi/fn, 117
     Previo, 117

Hinkle, Charles, 206

Hollings, Ernest, privacy policy by, 252

Hollings, Fritz
     Automated Telephone Consumer Protection Act, 206
     on privacy and telemarketing, 206

House Judiciary Committee, Jack Valenti before, 13

"Hub and Spoke," data processing system for, 101


IBM personal computer, 111

"Infomediaries," 268–269

Intellectual property, theft of, 33–34

Intellectual Property in the Age of Universal Access (ACM), 61

Intellectual Property in the Information Age: The Politics of Expanding Ownership Rights (Halbert), 63

     business community and, 277
     characteristics of, 282
     decentralized nature of, 282–284
     homogenous nature of, 282–284
     patents and, 65–66, 106–107
     and privacy, 217–223, 225
     and sovereignty, 277–278

Internet business(es)
     E-SIGN Act and, 161
     growth of, 89
     innovation and, 118
     vs. mail order, 269–270

Internet business method(s)
     applicability of patents to, 89
     application of traditional approaches to, 86
     government involvement in, 151–152
     innovation and patenting of, 88–89
     licensing, 88–89
     non-obviousness in, 86–88
     objections to patenting, 85–90
     obviousness in, 86–88
     patentability of, 85–90, 102–103, 104
     patenting, 81–92
     Priceline, 81–92
     society benefit from patenting, 88
     State Street v. Signature Financial Group impact on, 104–105

Internet business model(s)
     patenting, 81–85
     Priceline patent for, 83–84

Internet distribution
     and copyright, 5, 33
     as publishing threat, 48

The Internet Edge (Stefik), 64

Internet Explorer 6.0. See Microsoft Internet Explorer 6.0

Internet Patent News Service, 155

Internet piracy, House Commerce Committee's Subcommittee on Telecommunications and, 34

Internet resources on privacy, 275–276

Intouch Group, Inc.
     Amazon.com sued by, 85
     audio sample previewing patent, 84–85
     Discovermusic.com, Inc. sued by, 85
     Enteraindom, LLC sued by, 85
     Liquid Audio sued by, 85
     Listen.com sued by, 85

Inventing Software (Nichols), 157

     developing, 122–124
     impact of, 124
     licensing potential of, 128
     as primary business, 125–127
     protectibility of, 124
     value of, 127–130

IP addresses, and cookies, 233–234, 235n1

Ivey, Glen, 114


Johansen, Jon, 27

Junkbusters, 275–276


Kaplan, Lewis
     on DMCA scope, 30–31
     on Universal v. Corley, 30–31

Katz v. United States, 202–203

Keck, John, on consumer information, 192

Kennedy, Caroline, 205, 273

Kidz Privacy, 276

Knowledge Networks, and consumer information, 193


     adMonitor patent for, 82–83
     DoubleClick sued by, 83
     DoubleClick suit against, 82

Law and policy
     for copyright (See Copyright law and policy)
     for electronic signatures (See Electronic signature law and policy)
     for patents (See Patent law and policy)
     for privacy (See Privacy law and policy)

"Legislating Market Winners: Digital Signature Laws and the Electronic Commerce Marketplace" (Biddle), 187

Lessig, Lawrence, 63, 274

Licenses, 42–45
     "click-wrap" agreements for, 45
     Congress addressing, 55–56
     and copyright, 55
     copyright supplemented by, 60
     definition of, 42
     Ebrary, 55
     economic forces in, 149
     for electronic distribution, 43–45, 49, 50
     first-sale rights and, 44
     invention potential for, 128
     legislation for, 60
     by Netcentives, 84, 86
     of patents, 127
     revenue models for, 57
     and user rights, 43–44

Liebowitz, Stan J., 157

Linux, 27
     DeCSS, 28
     DVD movies and, 27–29
     history of, 27

Liquid Audio, sued by Intouch Group, Inc., 85

Listen.com, sued by Intouch Group, Inc., 85

Lotus 1-2-3, 111–113

Lotus Development, 111–113

Lucent Technologies, patent application by, 72

Lutton, Theodore A., 95


Macintosh platform, Microsoft Excel for, 112

Mail order vs. Internet business, 269–270

Margolis, Stephen E., 157

Marketel suit against Priceline, 83–84

McNealy, Scott, on privacy, 209

Microsoft, Stac v., 116–117

Microsoft and Expedia, Priceline v., 83–84

Microsoft Corporation
     Stac Electronics, partnership with, 115–116
     Stac Electronics licensing for, 116–117

Microsoft DOS
     5.0 release of, 115
     6.0 release of, 115–117
     6.21 release of, 117
     Stac Electronics licensing for, 116–117

Microsoft DoubleSpace, and Stac Electronics, 116–117

Microsoft Excel, 112–113

Microsoft Expedia, sued by Priceline, 84

Microsoft Internet Explorer 6.0, P3P in, 238, 242

Microsoft .NET initiative, and P3P, 237, 238

Microsoft Windows
     3.0 release of, 115
     and DVD playback, 27–28
     Microsoft Excel for, 112–113

Middlehoff, Thomas, 17

Monopoly (game), 125

Moore, David, on opt-in policy, 253

Moore, Geoffrey, terminology applied to Internet commerce, 218

Morgan Stanley, 110

Moser, Kathryn, 206

Motion Picture Association of America (MPAA), Jack Valenti and, 13, 34

MP3 format
     and CD audio, 10
     description of, 4
     exchange of, 4

MPAA. See Motion Picture Association of America

Music distribution industry
     investigated by FTC, 14–15
     price fixing by, 15

Music industry. See Recording industry


The Naked Society (Packard), 190

     as alternate channel for promotion, 15–16
     Bertelsmann agreement with, 17–18
     client software for, 4
     copyright infringement of, 8–9
     copyright policy and, 1
     customer base of, 14
     as for-fee service, 19, 20
     function of, 4
     future uses of, 11–13, 19
     innovation of, 15–16
     Ninth Circuit Court of Appeals and, 3, 19
     noninfringing use of, 11–13
     peer-to-peer exchange on, 4
     Prince on, 16
     and publishing and distribution model, 47
     and recording industry, 16
     reply to District Court ruling, 3
     royalties and, 17
     "space shifting" and, 10
     stay of injunction against, 12–13

Napster, TVT Records v., 19

Napster v. A&M Records, 1–26
     Universal v. Corley and, 29

National Association of Attorneys General, and privacy policy, 255

National Association of Telecomputer Operators, privacy and telemarketing, 206

National Research Council, Computer Science Telecommunications Board, 62

.NET initiative. See Microsoft .NET initiative

Net Worth (Hagel and Singer), 268–269

     patent licensing by, 84, 86
     reward redemption patent for, 84

Netscape, cookie system development by, 74

New technologies, and emerging markets, 16–17

New York Times Magazine, "Patently Absurd," 156

Nichols, Kenneth, 157

'916 patent, 84–85

Non-obviousness, 93, 107
     in business method patents, 142
     of credit card digit display patent, 82
     definition of, 70
     in Internet business methods, 86–88
     and 1-Click ordering, 71, 72, 74
     presumption of obviousness, 142

     and Diamond v. Diehr, 97
     First Inventor Defense and, 139
     and patentability, 93, 107


Obviousness. See Non-obviousness

O'Connor, Kevin, on privacy standards, 216

Oklahoma City bombing, surveillance and, 225

Olmstead v. United States, 200–202

1-Click ordering system (patent), 67–68, 70–79, 105
     Compuserve "Trend" system and, 76
     cookies in, 71
     Doonesbury (comic strip) in dispute over, 76
     examination of, 72
     infringement on, 74–75
     non-obviousness and, 71, 72
     obviousness of, 74
     power conferred by, 75
     review of, 72
     Thomson Consumer Electronics in dispute over, 76
     validity of, 73

1,000 Ways to Win Monopoly Games (Walker), 125–127

Online Privacy Alliance (OPA), 191, 276

OPA (Online Privacy Alliance), 191, 276

O'Reilly, Tim
     on Amazon patent, 67–68
     BountyQuest, investment in, 75–76


Packard, Vance, 190

Parker Brothers Monopoly (game), 125

Patel, Marilyn, Napster ruling by, 11–12

     for ad views, 104–105
     for adMonitor, 82–83
     algorithms in, 94–95, 96, 99n2
     and Amazon.com, 67–68, 70–79, 81–82, 105
     application consideration for, 97
     application for, provisional, 124
     applications of, 69–70
     approaches to working with, 131–132
     arguments against, 112–113
     arguments for, 113–114
     for audio sample previewing, 84–85
     for business methods (See Business method(s))
     for cat exercise, 87, 87f
     CIP applications for, 129–130
     Congressional authority to grant, 69
     vs. copyright, 68
     for credit card digit display, 81–82
     and Cybergold, 104–105
     for data compression algorithm, 85–86, 114–117
     for data processing system for hub and spoke configurations, 101–102
     disputing, 142, 149
     and DoubleClick, 82–83
     economic forces and, 149
     and Eli Lilly, 105
     further reading about, 155–157
     granting of, 124
     infringing on future, 89–90
     innovation and, 118
     and Internet, 65–66
     for Internet business methods, 81–92
     and Intouch, 84–85
     and L90, 82–83
     licensing, 84, 88–89, 127, 149
     litigation expense of, 89–90
     Lucent Technologies application for, 72
     and Netcentives, 84
     for 1-Click ordering system (See 1-Click ordering system)
     for online advertising, 82–83
     and Priceline, 83–84, 105
     protection of, 122, 124, 127
     protections provided by, 65, 68
     provisional application for, 124
     for Prozac, 105
     public review of, 142
     for revenue management applications, 124, 129
     as revenue source, 123
     for reverse auction, 83–84, 105
     for reward redemption, 84
     for RSA public key cryptography algorithm, 126
     scope of, 70
     and Signature Financial Group, 101
     society benefit from, 88
     and Stac Electronics, 85–86
     as threat to Web, 65
     vs. trade secrets, 140
     United States Patent Office (See United States Patent and Trade Office)
     validity of, 72–73, 137

Patent and Trade Office. See United States Patent and Trade Office

Patent law and policy
     American Inventors Protection Act of 1999, 136–144
     business community in changing, 148, 149
     Business Method Patent Improvement Act of 2000, 141–143
     changes in, 65–66, 145–153
     complexity of conflict over, 279
     Congressional changes to, 135–144
     Constitutional basis for, 65, 68
     courts in changing, 146–147
     Diamond v. Diehr in, 146
     First Inventor Defense against infringement, 137–142
     government action in, 184–185
     Patent and Trade Office in changing, 147–148
     proposals for changes to, 151
     resolutions for, 279–282
     State Street v. Signature Financial Group in, 146–147

Patent Law Essentials (Durham), 156

Patentability, 93–99
     of algorithms, 94–95, 103
     breadth of patent in, 105–106
     of business methods, 102–103, 104
     of computer-aided processes, 95–98
     of data compression algorithm, 85–86
     Gottschalk v. Benson, 94–95
     of Internet business methods, 85–90
     of Internet technologies, 106–107
     non-obviousness in (See Non-obviousness)
     novelty in, 93, 107
     policy and, 93, 95
     presumption of obviousness in, 142
     prior art in (See Prior art)
     rules for, 69–70
     of software, 94–95, 96, 103, 106–107, 135
     of software applications, 95–99
     and State Street v. Signature Financial Group, 103
     subject matter in, 93

"Patently Absurd" (Glieck), 156

PATNEWS (Aharonian), 155

PDF format, 46
     security features of, 41

The Perfect Storm (film), 66

Perine, Keith, 274

Personal Software, 110
     and spreadsheet patent, 119n6

Personally Identifying Information (PII). See Consumer information

"The Persuader" (Perine), 274

Pew Internet and American Life Project, 191

PGP (Pretty Good Privacy), 176

Platform for Privacy Preferences Project (P3P), 222, 237–247
     bias of, 243–244
     in business context, 245
     debate over, 238
     Microsoft .NET initiative with, 237
     objections to, 243–245
     and privacy legislation, 245
     privacy seal organizations and, 245
     purpose of, 238
     scope of, 239–241
     statement policy for, 239–241
     user agents for, 241–242

Policy, patentability and, 93, 95

Pretty Good Privacy (PGP), 176

     Marketel suit against, 83–84
     Microsoft Expedia sued by, 84
     reverse auction patent for, 83–84, 105

Priceline v. Microsoft and Expedia, 83–84

Prince, on Napster, 16

Prior art, 107
     BountyQuest role in finding, 75–76, 79n10
     Compuserve "Trend" system as, 76
     definition of, 70
     disclosure of search for, 142
     and patent validity, 72–73
     in protectibility, 122–123
     uncovering, 77

Privacy, 189–276
     "anonymizer" in, 216, 234
     and business community, 226–227
     from businesses, 200
     Coase theorem and, 266–267
     as commodity, 191–194
     in conflict with other rights, 204–205
     consumer choice and, 269
     consumer concerns with, 218–223
     of consumer information, 207–209
     cookies and, 213–214
     databases and, 224
     The Death of Privacy (Rosenberg), 190
     defining right to, 208–209
     and DoubleClick, 213–217
     fears for, 224
     further reading about, 273–276
     from government, 199–200
     "infomediaries" and, 268–269
     Internet and, 217–223, 225
     Internet resources for, 276
     as legal right, 194, 197–199, 264–265
     mail order vs. Internet business, 269–270
     The Naked Society (Packard), 190
     Net Worth (Hagel and Singer), 268–269
     as property, 198–199, 265–269
     P3P (See Platform for Privacy Preferences Project)
     The Right to Privacy (Alderman and Kennedy), 205
     surveillance and, 224–225
     technology and, 208
     telemarketing and, 205–206
     threats to, 189–190

Privacy law and policy
     Automated Telephone Consumer Protection Act, 206
     Children's Online Privacy Protection Act (COPPA), 250
     complexity of conflict over, 278
     consent issues in, 252–254
     consumer protection and, 250
     and consumers, 219
     coverage of, 251–252
     Electronic Communications Privacy Act and, 228n14
     employee rights and, 250
     enforcement of, 256–257
     Fair Credit Reporting Act, 190, 224
     FTC in enforcing, 256
     government surveillance and, 249–250
     and information collection, 252
     Katz v. United States, 202–203
     key issues for, 250–258
     National Association of Attorneys General and, 255
     notice of change issues in, 258
     objectives for, 258–261, 270
     Olmstead v. United States, 200–202
     opt-out procedure in, 253–254
     Platform for Privacy Preferences Project (P3P) and, 245
     press and, 205
     resolutions for, 279–282
     safe harbor provision for, 257–258
     scope of, 251–252
     state laws in, 203–204, 206, 255–256
     technology access and, 249
     tort categories for, 203–204

Privacy statement(s)
     Abacus Direct and, 215
     consent to, 252–254
     of DoubleClick, 214–217
     notice of change in, 258
     opt-in, 221, 252–254
     opt-out, 215–216, 221, 252–254
     purpose of, 237

Private-sector privacy, 207–209

Prosser, Dean William, privacy tort categories by, 203–204

Protectibility. See Patent(s), protection of

Prozac, 105

P3P. See Platform for Privacy Preferences Project

A P3P Preference Exchange Language (APPEL), 241–242

P3P Privacy Policy Statement, 239–241

PTO. See United States Patent and Trade Office

Public Enemy, Chuck D. of, 15–16

Publishing and distribution model
     Bertelsmann and, 47
     changing, 45–46
     Napster experimentation with, 47


Quattro Pro. See Borland Quattro Pro

Quayle, Dan, 106


RealNetworks, TRUSTe investigation of, 257–258

Recording industry
     and Napster for-fee service plan, 20
     Napster threat to, 16

Reno, Janet, on intellectual property theft, 33–34

Revenue management
     for fast food, 128–129
     patenting applications of, 129
     for vending machines, 121–124

The Right to Privacy (Alderman and Kennedy), 205, 273

"The Right to Privacy" (Brandeis and Warren), 198–199

Rivest, Ron, RSA public key cryptography algorithm, 126, 174–175

Rohrabacher, Dana, on trade secrets vs. patents, 140

Rosen, Ben, 110

Rosenberg, Jerry, 190

Rotenberg, Marc, 273

Rothenberg, Mark, on P3P, 244

RSA public key cryptography algorithm, 126, 174–175

Rubber-curing process, patentability of, 95–98


Sabela Media. See 24/7 Media

Safe harbor, 257–258
     in COPPA, 257
     FTC and, 257

Samuelson, Pamela, 61, 63–64, 109

Saris, Patti B., on business method exception, 102–103

Schumer, Charles, on First Inventor Defense, 137–138

Scotland, unification with England, 5

S&H Green Stamps. See Sperry & Hutchinson Company

Shamans, Software, and Spleens (Boyle), 61–62, 156, 210–211, 273

Shamir, Adi, RSA public key cryptography algorithm, 126, 174–175

"Shifting the Possible: How Trusted Systems and Digital Property Rights Challenge Us to Rethink Digital Publishing" (Stefik), 64

Signature Financial Group, 101
     data processing system for hub and spoke configurations by, 101–102
     "Hub and Spoke," 101
     State Street sued by, 102–103

Signature Financial Group, State Street v., 101–105, 106–107
     Congressional response to, 137–138
     in patent policy change, 146–147

Singer, Marc, 268–269

Singh, Simon, 188

Smith, Demetra, and 1-Click ordering system patent, 72

     Gottschalk v. Benson, 94–96
     growth of industry, 89
     patentability of, 94–95, 96, 103, 106–107, 135
     for spreadsheets (See Spreadsheet software)

Software applications, patentability of, 95–99

Software Arts
     and spreadsheet patent, 119n6
     VisiCalc (See VisiCalc)

"Some Reflections on Copyright Management Systems and Laws Designed to Protect Them" (Cohen), 62

Sony v. Universal Studios
     contributory infringement and, 9, 11
     and copyright purpose, 7
     noninfringing use and, 9
     Supreme Court on, 7, 11
     "time shifting" and, 9

"Space shifting," 10

Sperry & Hutchinson Company, 86
     patent licensing from Netcentives, 84

Spreadsheet software
     Borland Quattro Pro, 112
     Context M.B.A., 111
     Grace Murray Hopper award for, 111
     IBM personal computer and, 111
     impact of, 110
     Lotus 1-2-3, 111–113
     for Mac, 112
     Microsoft Excel, 112–113
     for Microsoft Windows, 112
     patenting, 119n6
     Personal Software, 110
     Software Arts, 110
     VisiCalc, 110–114

Stac Electronics
     data compression algorithm patent for, 85–86
     DoubleSpace and, 116–117
     Hi/fn, 117
     Microsoft Corporation, partnership with, 115–116
     Microsoft DOS, licensing for, 116–117
     Previo, 117
     Stacker, 115–117

Stac v. Microsoft, 116–117

Stacker, 115–117

Stallings, William, 188

Stallman, Richard, on 1-Click ordering system patent, 75

State Street Bank and Trust, 101
     Signature Financial Group suit against, 102–103

State Street v. Signature Financial Group, 101–105, 106–107
     Congressional response to, 137–138
     impact of, 104–105
     in patent policy change, 146–147
     patentability and, 103

Stationer's Company, 5

Statute of Anne, 5–6

Stefik, Mark, 64

Stevens, John Paul
     on copyright purpose, 7
     on Diamond v. Diehr, 96
     on software industry growth, 89
     on software patentability, 96
     on Sony v. Universal Studios, 7

Stewart, Potter
     on Katz v. United States, 202–203
     on privacy, 202–203

Subject matter, patentability of, 93

Supreme Court. See also individual justices
     on contributory infringement, 11
     on copyright purpose, 7
     on Diamond v. Diehr, 96
     on privacy, 201, 202–203
     on software industry growth, 89
     on software patentability, 95, 96
     on Sony v. Universal Studios, 7, 11

     and Oklahoma City bombing, 225
     and privacy, 224–225

Sykes, Charles, 225, 275

Symmetric encryption, 173–174


Taft, William
     on Olmstead v. United States, 201
     on privacy, 201

TCPA (Automated Telephone Consumer Protection Act), 206

Technical protection services (TPS), 41–42, 48–49

Technology and Privacy: The New Landscape (Agre and Rotenberg), 273

Tedesco, Dan, 121

Telemarketing and privacy, 205–206

The Transparent Society (Brin), 274

Thomson Consumer Electronics in 1-Click patent dispute, 76

'368 patent, 82–83
     vs. '061 patent, 92n1

'399 patent. See Amazon.com, credit card digit display patent

Thurber, James, 97

"Time shifting," 9

Time Warner, 85

     definition of, 203
     and privacy, 203–204

Torvalds, Linus, 27

TPS. See Technical protection services

Trade secrets vs. patents, 140

"Trend" system, in 1-Click patent dispute, 76

     and P3P, 245
     RealNetworks investigated by, 257–258
     safe harbor program in, 257

Trusted systems, 64

TVT Records v. Napster, 19

24/7 Media
     DoubleClick countersued by, 82–83
     DoubleClick sued by, 82
     DoubleClick suit against Sabela Media, 82
     online advertising patent, 82–83
     opt-in policy by, 253
     '368 patent vs. '061 patent, 92n1

2600: The Hacker's Quarterly, DeCSS distribution by, 28

'207 patent, 83–84


Uniform Computer Information Transactions Act (UCITA), 45, 51n3

United States, Katz v., 202–203

United States, Olmstead v., 200–202

United States Patent and Trade Office (PTO), 65
     budget for, 153n2
     business method patents' effect on, 147–148
     customer base of, 149
     1-Click ordering system examination by, 72
     in patent policy change, 147–148
     reorganization of, 137

Universal Studios, Sony v.
     contributory infringement and, 9, 11
     and copyright purpose, 7
     noninfringing use and, 9
     Supreme Court on, 7, 11
     "time shifting" and, 9

Universal v. Corley, 28–36
     and DMCA scope, 30–31
     Napster v. A&M Records and, 29

Utah Digital Signature Act, 161
     "Comment: Misplaced Priorities: The Utah Digital Signature Act and Liability Allocation in Public Key Infrastructure," 187
     vs. E-SIGN Act, 183
     and liability, 167–168
     market action in, 185–186
     specific technology and, 169


Valenti, Jack
     before House Judiciary Committee, 13
     on Internet piracy, 34
     on VCRs, 13

VCR. See Video cassette recorder

Vending machines, revenue management for, 121–124

VeriSign, Inc., 176
     VeriSign OnSite 4.0 Administrator's Handbook, 188

Video cassette recorder (VCR)
     contributory infringement and, 9
     as motion picture industry threat, 13
     "time shifting" and, 9

VisiCalc, 110–114
     patent for, 119n6

Vivendi Universal, Duet service, 21


Walker, Jay, 84
     background of, 125–127
     and Monopoly game, 125
     1,000 Ways to Win Monopoly Games, 125
     on patenting business methods, 126

Walker Asset Management Limited Partnership, Priceline patent, 83–84

Walker Digital, 121–133
     and fast food, 128–129
     opinions on, 130
     Priceline patent, 83–84
     and revenue management, 121–124, 128–129
     and vending machines, 121–124

Warren, Samuel, 198–199

Weaving the Web: The Original Design and Ultimate Destiny of the World Wide Web (Berners-Lee and Fischetti), 155–156

Web bugs
     cookies vs., 231–232
     management of, 235
     purpose of, 234–235

Web Engagement: Connecting to Customers in e-Business (Zoellick), 235, 275

WebTV and consumer information, 193

Whiting, Douglas, 114

Windows. See Microsoft Windows

Winners, Losers & Microsoft: Competition and Antitrust in High Technology (Liebowitz and Margolis), 157

World Wide Web Consortium (W3C), Platform for Privacy Preferences Project (P3P), 222, 238

Wurster, Thomas S., 62

Wyden, Ron, on privacy policy, 253–254


Yahoo.com, State Street v. Signature Financial Group impact on, 104–105


'056 patent, 101–102

'061 patent, 82–83
     vs. '368 patent, 92n1

Zoellick, Bill, 235, 275


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