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Hacking the Xbox

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Chapter 12 - Caveat Hacker 179<br />

art” to create <strong>the</strong> invention without much experimentation. Once a<br />

patent is awarded, <strong>the</strong> application is made public. By making <strong>the</strong><br />

information public, <strong>the</strong> patentee contributes to society’s store of<br />

knowledge.<br />

A patent confers no affirmative rights, however; if you patent an improvement<br />

to someone else’s invention, you can’t practice <strong>the</strong> improvement<br />

without infringing on <strong>the</strong> underlying patent. If you invent and<br />

patent a new drug, you may still need regulatory approval before you can<br />

sell <strong>the</strong> drug.<br />

To be patentable, an invention must be useful, novel, and “nonobvious”<br />

to one “skilled in <strong>the</strong> art.” The novelty and nonobviousness requirements<br />

mean that <strong>the</strong> invention must be a sufficient development in technology<br />

before <strong>the</strong> right to exclude is given. Developments that do not meet <strong>the</strong>se<br />

high standards are denied protection.<br />

Trade Secrets<br />

A third area of law — trade secrecy — is also considered part of intellectual<br />

property law, although it is not really property. A trade secret is commercially<br />

valuable business or o<strong>the</strong>r information known to <strong>the</strong> user but not to<br />

competitors. Secrecy, although not absolute secrecy, is <strong>the</strong> essence of a trade<br />

secret; one must take reasonable precautions to protect <strong>the</strong> trade secret<br />

against disclosure.<br />

There’s an obvious relationship between patents and trade secrets, because<br />

both protect useful information. If <strong>the</strong> useful information isn’t patentable<br />

at all, <strong>the</strong>re’s no choice. But one might not want patent a patentable<br />

invention for several reasons. You might not want to disclose information<br />

in <strong>the</strong> patent application. Also, if you don’t expect <strong>the</strong> technology to be<br />

valuable for very long, it might not be worth getting a patent that lasts 20<br />

years.<br />

The main downside of trade secrecy is that it provides no protection against<br />

independent invention or against reverse-engineering. Trade secrecy is<br />

<strong>the</strong>refore unwise if <strong>the</strong> secret can be figured out from <strong>the</strong> product. If, on<br />

<strong>the</strong> o<strong>the</strong>r hand, <strong>the</strong> invention is a process used in making <strong>the</strong> product, it<br />

might be hard to reverse-engineer. Even though Coca-Cola has been on<br />

<strong>the</strong> market for many years, apparently no one has figured out how to<br />

duplicate it.<br />

The Constitutional Copyright Bargain<br />

Intellectual property rights are a means to an end — to promote <strong>the</strong><br />

progress of knowledge and technology. As <strong>the</strong> Supreme Court once said,<br />

“<strong>the</strong> monopoly privileges that Congress may authorize are nei<strong>the</strong>r unlimited<br />

nor primarily designed to provide a special private benefit.” 17<br />

17 Sony v. Universal City Studios 464 U.S. 417, 429 & 432 (1984).

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