IIntellectual Property-Copyrights and Patents (TI)

This pages contains a selection of advice from The Ethics Office at Texas Instruments Corporation.

The advice is that of either TI Ethics Director Carl Skooglund or Glenn Coleman, Manager of Ethics Communication and Education. The articles were distributed among TI employees via TNEWS.

Unauthorized copying of software may violate TI policy and copyright laws

On the illegal copying of computer software

Copying software programs may be acceptable in some situations

Guidelines regarding patents and copyrights

TIers comments on patents and copyrights

Reverse engineering and patent infringement

Copyright act ruling

Reverse engineering

Upon finding unlicensed software

Article 39: Unauthorized copying of software may violate TI policy and copyright laws

Software Piracy is the illegal copying of software and is recognized as negatively affecting all users by driving up prices and reducing funds for research and development of future generation software. Moreover, it is a practice which is drawing increased attention from software industry trade associations. In the past 20 months, over thirty lawsuits have been brought against major corporations and other offenders pirating software.

Much of the software used at TI was created and copyrighted by other companies and may be subject to nondisclosure restrictions. TI does not usually own software created by third parties but receives and uses the software under a license agreement. It is TI policy to comply with license agreements which govern the use of software. Reproducing software without authorization may violate these agreements and U.S. copyright laws.

Personal computer software should be used on only one microcomputer at a time. If the microcomputer has a program loaded on its hard disk, that particular program should not be loaded on any other disk. This means that if a department has ten microcomputers with Lotus 1-2-3 installed on each, then that department should also have ten sets of original documentation and system disks assigned to those ten microcomputers. It is TI policy to purchase licensed copies of software for each personal computer used by TI employees. Each employee is responsible for ensuring that programs used are authorized copies. Violations of TI policy on unauthorized use of software can lead to disciplinary action, and may also be a civil or criminal violation of state and federal law.

Back to Top

Article Number 101: On the illegal copying of computer software

An anonymous question to the Ethics Office asked about the illegal copying of software. Since that activity is never acceptable at TI, what are some other options when we need the software to do our jobs?

TIers who call on the Ethics Office communications line or send me a message using the confidential features of our IMS system often choose to remain anonymous. Here is a response to an anonymous question. With all the discussion on cash flow here at TI, there are intense cost reduction pressures. Often we cannot get approval to buy software that we need to do our jobs. The temptation is to copy current software but this violates copyright laws. What can we do? We are really stuck! We cannot do our jobs without it and cannot get approval to buy it.

The first step is to determine whether the purchase of a particular software program is absolutely necessary. Are other options available that may be cost effective, for example, by sharing it over staggered break periods or multiple shift arrangements as we do in many operations where facilities, equipment, and software are a major investment? It is, of course, a primary responsibility of local managers and work teams to do what makes sense. There must be a match between computer resources, staffing levels, work schedules and program deadlines. And they must never depend on the use of illegally copied software. Any situations that cause TIers to feel that they are being forced to take improper actions to achieve their goals must be brought to the attention of the managers who are responsible for setting schedules and approving software purchasing decisions. Illegally copying software is never acceptable. Period. Options must be carefully considered. These discussions should include a serious review of whether, in certain instances, spending money may ultimately save money. TIers should take the initiative to have these issues reviewed.

Back to Top

Article Number 135: Copying software programs may be acceptable in some situations

This section addresses various ethics issues as well as comments and questions posed to the TI Ethics Office and will be changed weekly. Please, distribute these articles to those who do not have IMS access. For those who use a computer at work as well as a home computer or a laptop, the guideline for copying software for use on multiple machines may have changed. I continue to receive questions regarding the use of a PC software program on more than one computer at a time. Typically the questions involve a TIer who wants to know if it is okay to use a second copy of the software on a PC at home or on a laptop computer. Recently some software developers have made changes to their policies in an attempt to accommodate their multiple PC customer needs. But these changes vary from supplier to supplier. Following is an article from February's LOTUS Magazine. (Copyright Lotus Publishing Corp. Used with permission. All rights reserved.)

Finally, acknowledging that many people use more than one PC to do their work, both Lotus Development Corp. and WordPerfect Corp.--two of the last hard-liners on licensing issues--have changed their policies to reflect the new realities of home and portable computing. Both companies now allow users to install at least one extra copy of their software on a home or portable PC.

Lotus's published agreement is somewhat vague, stating that you can use this software on any compatible computer, provided you use the software on only one computer at a time. However, Lotus's Deputy General Counsel, Neal Goldman, concedes that if you have a machine at home or a laptop computer, you can copy the software to that second machine without having to buy a second license.

WordPerfect's published license agreement, which applies to all of its products, is more forthright. The WordPerfect policy grants you a special license to place an extra copy of the software on a home or laptop computer, as long as the extra copy is never loaded . . . at the same time the software is loaded on the primary computer.

It is very important that you understand the guidelines from the supplier of your particular software program. Don't make assumptions. These restrictions change and they are different among the suppliers. If you aren't absolutely certain about the rules for your software program, call Kathleen Humphrey in TI Legal at (214) 995-1302.

Back to Top

Article Number 140: Guidelines regarding patents and copyrights

An inquiry on the Ethics Office communication lines raised the issue of rights regarding inventions and copyright. The situation impacts the answer. A TIer recently asked me the following question: I am planning to write a software program at home on my own time. May I personally copyright the program and sell it? Or does TI have first rights to it?

The answer to this question depends on two issues

• Is the software patentable?
• Is creating software an expected part of the TIer's job responsibilities?

It is important to understand that the Assignment of Inventions and the Copyright Agreement that all TIers sign when they join the company have somewhat different conditions. The Assignment of Inventions Agreement states that all inventions, processes, diagrams, methods, apparatus or any improvements conceived or developed by a TIer that are within TI's field of interest will be assigned to TI. This applies to ideas that occur both at home and at work. If a software program developed by a TIer is significant enough to be patentable, then the Assignment of Inventions Agreement applies. See Assignment of Inventions and Company Information Agreement, TI10477D.

If, however, the software is not patentable, and most are not, the TI may still retain the rights to the program if creating software is an expected part of the TIer's job responsibilities. But non-patentable programs created by a TIer whose job does not involve software writing can be copyrighted personally and sold by the TIer. If you have questions regarding the Assignment of Inventions or Copyrights, contact Gary Honeycutt in TI Legal.

Back to Top

Article Number 141: TIers comments on patents and copyrights

The guidelines on ownership of patents and copyrights presented last week generated several comments and questions from TIers. They are presented here. Some interesting follow-up questions and comments arose in response to last weeks T NEWS Ethics article regarding the ownership of copyrights to unpatentable programs. In the article I commented that most software is not patentable.

Some TIers took exception to that remark for two reasons

1. They contend that, in fact, software inventions are frequently patentable
2. There is a general tendency to overlook the patent potential of software inventions and consequently some opportunities may be missed.

Also, a question was asked concerning the statement in the article that...TI may still retain the rights to the program if creating software is an expected part of the TIer's job responsibilities. The question was this. I am a software writer for TI. Suppose I create an unpatentable software program at home that is in an area completely different from my TI job responsibilities. Does TI still have the copyright ownership? In other words, since I am a software writer, does TI have a claim on any software that I create that may be in TI's field of interest? The answer is this. If the TI organization for which the software writer works believes that the program developed by the TIer is out of the scope of the TIer's job responsibilities, and it does not contain any TI Internal Data or other information that TI considers to be sensitive or proprietary, the program would be viewed by TI as belonging to the TIer. Any sensitive information contained in the program must be released by TI.

Back to Top

Article Number 142: Reverse engineering and patent infringement

In most instances, "reverse engineering" is an acceptable option for creating new products. However, there are legal and ethical limitations that must be considered.

Reverse engineering is a common procedure that typically involves the disassembly, examination, and analysis of a product to reveal its design and function. Normally, this is done for competitive analysis, and sometimes for the purpose of building and selling a similar product. It is legally and ethically acceptable for a company to purchase a commercially available product, to analyze it thoroughly, to design and develop a similar product and a method for its manufacture; provided the new product and method do not violate the patent rights of another company.

A TIer recently asked me the following questions about reverse engineering: Is it okay for TI to send a product from one supplier to a second supplier so that the second supplier can reverse engineer it? The answer is this. Although there would be no legal prohibition against this action (unless we had a confidentiality agreement), it would not be the ethical thing to do. The second supplier should purchase the product from the other supplier (or a distributor) and then proceed with the reverse engineering process.

If we buy a product from a supplier who may have copied another supplier's patented item and may be infringing it, are we in a legally dangerous situation? The answer to this question depends upon whether we have reason to believe that the product we are buying is, in fact, infringing a patent. Typically, our purchasing contracts protect us against this. Also, when we sell our products, we routinely agree to protect our customers against patent infringement liability. But if we strongly believe that a supplier is infringing a patent, then we have an ethical obligation to avoid buying that product from them. Additionally, there are legal reasons to avoid the practice. If we knowingly buy an infringing product, both our supplier and TI could potentially be sued.

Back to Top

Article Number 155: Copyright act ruling

While it is quite common for us to make copies of written articles, there are copyright restrictions that each of us must understand.

Following is an excerpt from a recent news release that a TIer sent to me: A US federal judge ruled yesterday that for-profit corporations whose researchers copy scientific articles for internal use must first get permission from and compensate the copyright holders. The landmark decision, a defeat for Texaco, Inc., was the first ruling under the 1976 Copyright Act involving photocopying by research-oriented, profit-making companies. The case, brought by a group of scientific journal publishers, has been widely watched by corporations and the publishing industry. The suit was brought in Manhattan federal court in 1985 by publishers who found eight photocopied articles in the files of a Texaco research scientist who was chosen at random.

The TIer, who was concerned over possible similar violations by TI scientists and engineers, asked me what our policy positions on this issue. TI has purchased a photocopy license from Copyright Clearance Center, a non-profit clearinghouse that was established in 1977 by publishers, authors, and photocopy users for the purpose of granting blanket advance permission to photocopy copyrighted materials. TI pays a substantial annual fee for that privilege. Gary Honeycutt, of TI Legal, further explains that TI libraries and copy centers are licensed to make photocopies of articles, for internal use only, from most of the books and periodicals that are widely distributed and routinely available on the open market.

We are not licensed to copy entire books or entire issues of any periodicals; nor should we expect to systematically distribute large numbers of copies on a "standing order" basis. Instead, the normal expectation is to respond to each request by sending copies directly to the requesting party, based upon his or her individual needs, as indicated by a specific identification of the article or articles needed.

When following such a routine practice, there is no need to search the detailed listing of one million titles registered with the Copyright Clearance Center. On an exceptional basis, however, when a large number of copies are requested, we should expect to look for confirmation that the item is expressly licensed. Under our photocopy license, it is acceptable for a US TIer to make a personal copy of an article and either file it or pass it to another TIer. However, our license does not allow our passing it to someone outside of TI. Many other countries, such as Japan, are presently developing these kinds of clearance centers and similar licensing may soon be available in those countries. International TIers should soon become familiar with their site and country copyright restrictions. TI should not make copies of any portion of copyrighted works that are not routinely available, such as technical manuals or other documentation supplied with purchased devices or systems; or training manuals, such as may be available only to students attending proprietary seminars.

Back to Top

Article Number 193: Reverse engineering

Reverse engineering can be accomplished in an acceptable manner... but there are risks. Reverse engineering is generally defined as examining a completed product with the intent of understanding the technology and process used in its design, manufacture, or operation. Quite often, reverse engineering requires disassembly or destruction of the item. TIers have asked that since reverse engineering is done in an attempt to understand technology that belongs to someone else, is it ethical? Can it pass the Ethics Quick Test? The first four of our ethics quick tests are:

• Is the action legal?
• Does it comply with our values?
• If you do it, will you feel bad?
• How will it look in the newspaper?

When these four are applied to the concept of reverse engineering, some TIers have felt that it may not pass. First of all, it is perfectly legal to disassemble, examine and even destroy the item. The serious legal issue of patent infringement arises if we choose to adopt protected information or process as our own. Seeking counsel from TI Legal in this situation is absolutely vital. Reverse engineering is a very common, accepted and expected practice in our business world today. When we put a product on the market, we assume that it will be reverse engineered by competitors and others. Once it is on the market, there are few secrets left...perhaps some in our manufacturing process. That is one reason we so vigorously defend infringements on our patents. But this philosophy allows reverse engineering to pass the last three quick tests. If TIers decide that reverse engineering is appropriate for their situation, they should obtain the item in an open manner, either through outright purchase on the open market or with the knowledge and permission of the owner. And, as mentioned before, be very careful in the high risk area of patent infringement.

Back to Top

Article Number 197: Upon finding unlicensed software

This section addresses various ethics issues as well as comments and questions posed to the TI Ethics Office and will be changed weekly. Please, distribute these articles to those who do not have IMS access.

The unauthorized copying of software is a form of misuse of the intellectual property of others and puts both the individual and TI at risk. In the normal course of their duties at TI, several TIers have reported finding software improperly installed on TI computers. Suppose you are performing maintenance on a PC or perhaps you share a computer with several others and you inadvertently come upon installed software for which there is no license copy for that machine. What do you do? What are your responsibilities? First of all, the use of an unlicensed copy of a software package is not only unethical, it can be illegal. It can amount to theft and in any event should be neither practiced nor tolerated at TI. So how would you handle any other situation involving potential misuses of assets? Would it be proper to ignore the unauthorized borrowing or conversion of a $200 tool or other piece of equipment that belonged either to TI or to a fellow employee? Of course not. Likewise, we each have a personal obligation to get involved, to take personal action, to be pro-active when we suspect or know that unauthorized copies of software are installed on TI systems. So what is the proper course of action?

The best response is for you to personally confront the operator or TIer to whom the machine is assigned. However, if this is not appropriate for the situation, contact either the supervisor, TI Security or the TI Ethics Office. While there are limitations on accessing the computers of others (refer to T DA; TNEWS.ARCHIVES.1992.10.P013), if you discover improper activity in the normal course of your job functions, then you should take appropriate action. TI considers theft in any form as a serious offense, and the unauthorized copying of software puts both the individual and the company at risk.

Back to Top