Intellectual property rights involve the legal protection of intellectual property such as music, books, and movies. Laws such as the Copyright Act of 1976, the Digital Millennium Copyright Act, and the Digital Theft Deterrence and Copyright Damages Improvement Act of 1999 were designed to protect the creators of intellectual property. However, with the advance of technology, ethical issues still abound for websites. For example, until it was sued for copyright infringement and subsequently changed its business model, Napster.com allowed individuals to download copyrighted music for personal use without providing compensation to the artists.
A decision by the Federal Copyright Office (FCO) helped lay the groundwork for intellectual property rules in a digital world. The FCO decided to make it illegal for web users to hack through barriers that copyright holders erect around material released online, allowing only two exceptions. The first exception was for software that blocks users from finding obscene or controversial material on the web, and the second was for people who want to bypass malfunctioning security features of software or other copyrighted goods they have purchased. This decision reflects the fact that copyright owners are typically being favored in digital copyright issues.
However, digital copyrights continue to be a controversial issue in the United States and across the world, and existing laws are often difficult to enforce. Approximately 22 percent of all Internet traffic involves copyrighted material, including illegally downloaded or uploaded music, movies, and television shows. In China, the market for pirated goods of all types, from DVDs to pharmaceuticals and even cars, has become a multibillion dollar industry. Traditionally, China’s government proved weak in protecting intellectual property, and the underground market for such pirated goods—which are sold all over the world—has grown at a rapid pace. Downloaders of illegal content are less concerned with the law than nondownloaders and are more likely to engage in other forms of illegal conduct such as shoplifting.
While intellectual property rights’ infringement always poses a threat to companies that risk losing profits and reputation, it can also threaten the health and well-being of consumers. For example, illegally produced medications, when consumed by unknowing consumers, can cause sickness and even death. Research on software piracy has shown that high levels of economic well-being and an advanced technology sector are effective deterrents to software piracy. However, as the number of patents filed in China increase, so are intellectual property lawsuits. China is convening special intellectual property courts to handle cases of alleged violations involving software piracy and patent and copyright infringement. It seems intellectual property theft is becoming a more important issue in China as China tries to boost its business image in the international community.
3-3nPrivacy Issues
Consumer advocates continue to warn consumers about new threats to their privacy, especially within the health care and Internet industries. As the number of people using the Internet increases, the areas of concern related to its use increase as well. Some privacy issues that must be addressed by businesses include the monitoring of employees’ use of available technology and consumer privacy. Current research suggests that even when businesses use price discounts or personalized services in exchange for information, consumers remain suspicious. However, certain consumers are still willing to provide personal information despite the potential risks.
A challenge for companies today is meeting their business needs while protecting employees’ desire for privacy. There are few legal protections of an employee’s right to privacy, which allows businesses a great deal of flexibility in establishing policies regarding employee privacy while using company equipment on company property. For example, the Electronic Communications Privacy Act of 1986 prohibits the interception of electronic communication and access to stored electronic communications. However, exemptions are made for the “normal course of employment,” and it is generally agreed that employers have to right to monitor company email. Additionally, employee consent also removes protection. From computer monitoring and telephone taping to video surveillance and GPS satellite tracking, employers are using technology to manage their productivity and protect their resources. The ability to gather and use data about employee behavior creates an ethical issue related to trust and responsibility.
Electronic monitoring allows a company to determine whether productivity is being reduced because employees spend too much time on personal activities. Having this information enables the company to take steps to remedy the situation. Many employers have policies that govern personal phone and Internet use on company time. Additionally, some companies track everything from phone calls and Internet history to keystrokes and the time employees spend at their desks. One study found that 48 percent of professionals have sent personal emails from their work email account. This can be frustrating for employers if they believe employees are spending too much time on personal matters or using their work emails to send inappropriate messages. However, employers must also exert caution. As mentioned in Chapter 1, the National Labor Relations Board has ruled that employees can use their employer’s email system for union organizing and communications about wages. Instituting practices that show respect for employee privacy but do not abdicate the employer’s responsibility helps create a climate of trust that promotes opportunities for resolving employee–employer disputes without lawsuits. On the other hand, if personal data is gathered that includes medical or religious information, it can result in litigation.
There are two dimensions to consumer privacy: consumer awareness of information collection and a growing lack of consumer control over how companies use the personal information they collect. For example, many are not aware that Google, Inc., reserves the right to track every time you click on a link from one of its searches. Online purchases and even random web surfing can be tracked without a consumer’s knowledge. In the European Union, websites that use cookies, or small bits of information stored on a user’s computer that can collect personal information, must first ask users for consent.
Personal information about consumers is valuable not only to businesses but also to criminals. It is estimated an identity is stolen once every two seconds. Personal information is stolen and sold online. Although some of this information comes from sources such as social networking profiles, poorly protected corporate files are another major source. U.S. organizations report hundreds of security breaches annually.
There is an ethical responsibility to protect consumer’s personal information from cybercrime. Any organization needs to develop a compliance system to stop or create a greater risk to deter cybercriminals. Also every organization needs a recovery plan for when a hacker steals personal data. Most likely data breaches will occur and there is an ethical responsibility to quickly notify consumers. Employees should be trained to protect data and understand risks associated with information technology.
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