Limitation of Sales Warranties as an Alternative to Intellectual Property Rights: An Empirical Analysis of IPhone Warranties’ Deterrent Impact on Consumers

By: Marc L. Roark Apple’s success with the Apple iPhone has brought with it certain problems. Its success has engendered a community that has attempted to circumvent Apple’s exclusive service agreement with AT&T. Unfortunately for Apple (and similarly situated manufacturers), intellectual property law allows consumers to alter their products so as to circumvent relationships that manufacturers may have with others. The patent and copyright law first sale doctrine allows consumers to manipulate a product after it is purchased. As a result, manufacturers are increasingly turning to alternatives to intellectual property to secure control over the device after the sale. One such alternative is the exclusion of warranty under Article 2 of the Uniform Commercial Code. This iBrief considers whether limitation of warranties have the deterrence effect manufacturers desire. Said differently, it considers whether manufacturers can use warranty limitations to prevent consumers from using their products in an unauthorized manner. The iBrief presents a behavioral model based on the Triandis model of planned behavior and enhances the model by accounting for likely and unlikely benefits and detriments. The model suggests that participants weigh the probability and magnitude of the detriment against the probability and magnitude of the beneficial impact when making

Standards × Patents ÷ Antitrust = ∞: The Inadequacy of Antitrust to Address Patent Ambush

By: Jonathan Hillel “Patent ambush” describes certain rent-seeking behavior by the owner of patent rights to a technology that is essential to an industry standard. Two cases, Qualcomm and Rambus, represent attempts of the Third and D.C. Circuits, respectively, to address patent ambushes using federal antitrust statutes. In both cases, antitrust law proves inadequate to the task. Under Qualcomm, licensees gain too much power to extort undervalued royalty rates from patent holders who have disclosed their rights during standard-setting. Under Rambus, coupled with the dearth of other options to combat patent ambushes, non-disclosing patent holders are given free reign over standardized markets, to the detriment of end-users. This iBrief argues that the flaws in each rule inhere from a fundamental inadequacy of antitrust law to address patent ambush. Download Full Article (PDF) Cite: 2010 Duke L. & Tech. Rev. 017

Applying Copyright Abandonment in the Digital Age

By: Matthew W. Turetzky Copyright law protects orphan and parented works equally–but it shouldn’t. Consequently, current law unnecessarily restrains public access to works that authors have not exercised dominion over for decades. This problem has come to the fore in the Google Books settlement, which critics argue will give Google a de facto monopoly over orphan works. But this criticism implicates an obvious question: Why are orphan works protected by copyright law in the first place? If orphan works were in the public domain, then no one would worry about Google’s supposed “monopoly” because Google’s competitors would be free to copy the works without facing class action lawsuits. To address these concerns, I propose a new equitable defense to copyright infringement: the orphan theory of abandonment. Download Full Article (PDF) Cite: 2010 Duke L. & Tech. Rev. 019

The Rise of Computerized High Frequency Trading: Use and Controversy

By: Michael J. McGowan Over the last decade, there has been a dramatic shift in how securities are traded in the capital markets. Utilizing supercomputers and complex algorithms that pick up on breaking news, company/stock/economic information and price and volume movements, many institutions now make trades in a matter of microseconds, through a practice known as high frequency trading. Today, high frequency traders have virtually phased out the “dinosaur” floor-traders and average investors of the past. With the recent attempted robbery of one of these high frequency trading platforms from Goldman Sachs this past summer, this “rise of the machines” has become front page news, generating vast controversy and discourse over this largely secretive and ultra-lucrative practice. Because of this phenomenon, those of us on Main Street are faced with a variety of questions: What exactly is high frequency trading? How does it work? How long has this been going on for? Should it be banned or curtailed? What is the end-game, and how will this shape the future of securities trading and its regulation? This iBrief explores the answers to these questions. Download Full Article (PDF) Cite: 2010 Duke L. & Tech. Rev. 016

Privacy Expectations and Protections for Teachers in the Internet Age

By: Emily H. Fulmer Public school teachers have little opportunity for redress if they are dismissed for their activities on social networking websites. With the exception of inappropriate communication with students, a school district should not be able to consider a public educator’s use of a social networking website for disciplinary or employment decisions. Insisting that the law conform to twenty-first century social norms, this iBrief argues that the law should protect teachers’ speech on popular social networking websites like Facebook and MySpace. Download Full Article (PDF) Cite: 2010 Duke L. & Tech. Rev. 014

Private Ordering and Orphan Works: Our Least Worst Hope?

By: Keith Porcaro The political capture of copyright law by industry groups has inadvertently led to orphan works problems arising in less organized industries, such as publishing. Google Book Search (GBS) is a prime example of how private ordering can circumvent legislative inefficiencies. Digital technologies such as GBS can open up a new business model for publishers and other content industries, centered around aggregated rights holdings. However, the economic inertia that private ordering represents may pose a threat to the knowledge-oriented goals of copyright law. Download Full Article (PDF) Cite: 2010 Duke L. & Tech. Rev. 015

Keeping the LEDs on and the Electric Motors Running: Clean Tech in Court After Ebay

By: Eric Lane The recent rise of non-practicing patentees (NPPs) in the clean technology space comes at a time when the international community is debating the role of intellectual property rights in the deployment and implementation of technologies to combat climate change. While the impact of intellectual property rights on the deployment of clean technology has been studied, less attention has been given to the role intellectual property regimes play in maintaining the operation of those technologies already deployed in the fight against global warming. This iBrief focuses on clean technologies that have already achieved substantial market penetration and observes that recent trends in patent law are, to a large extent, allowing those technologies to continue working to reduce carbon emissions. Specifically, the course correction in the law of patent injunctions brought about by eBay v. MercExchange and the endorsement of court-imposed ongoing royalty payments in Paice v. Toyota demonstrate an important shift in patent law that is tempering the impact of clean tech NPPs in Title 35 infringement actions in federal courts. However, these trends have caused a tactical adjustment by clean tech NPPs—namely, filing suits in the U.S. International Trade Commission (ITC), where the remedy of an exclusion

Disloyal Computer Use and the Computer Fraud and Abuse Act: Narrowing the Scope

By: Greg Pollaro Congress drafted the Computer Fraud and Abuse Act (CFAA) to protect government interest computers from malicious attacks by hackers. As computer use has expanded in the years since its enactment, the CFAA has similarly expanded to cover a number of computer-related activities. This iBrief discusses the extension of the CFAA into the employer/employee context, suggests that this goes beyond the Act’s express purpose, compares the different approaches taken by the circuit courts in applying the CFAA to disloyal computer use by employees, and argues that the more recent approach taken by the Ninth Circuit provides a better model for determining if and when the CFAA should apply to employees. Download Full Article (PDF) Cite: 2010 Duke L. & Tech. Rev. 012

Who Owns the Virtual Items?

By: Leah Shen Do you WoW? Because millions of people around the world do! Due to this increased traffic, virtual wealth amassed in MMORPGs are intersecting in our real world in unexpected ways. Virtual goods have real-life values and are traded in real-life markets. However, the market for trading in virtual items is highly inefficient because society has not created property rights for virtual items. This lack of regulation has a detrimental effect not just the market for virtual items, but actually the market for MMORPGs. Assuming we want to promote the production of MMORPGs as a market, society requires a set of distinct property rules to decrease the inefficiencies in the virtual market. In creating these regulation, we may be able to take cues from intellectual property laws, as many of the problems surrounding virtual goods are akin to intellectual property. Download Full Article (PDF) Cite: 2010 Duke L. & Tech. Rev. 011

Chatter, Clatter, and Blinks: Defective Car Alerts and the Role of Technological Advances in Design Defect/failure to Warn Cases

By: James Forrest McKell Jr. Car owners are familiar with the warning lights on the dashboard and the beeping sound reminding them to use their seatbelt. But, neither the legislature nor courts have concretely defined the legal nature of these alerts. This iBrief will analyze when a deficient alert becomes a defective product tort claim and determine the appropriate theory under which such claims should be brought. Download Full Article (PDF) Cite: 2010 Duke L. & Tech. Rev. 010