Thomson Reuters Lawsuit Against Competing Software Product Dismissed

from the reverse-engineering-allowed dept

Last year, we wrote about the troubling lawsuit filed by Thomson Reuters claiming that George Mason University, the makers of an open bibliography software, Zotero, had violated its copyright by reverse engineering the file format used by Thomson Reuters' own proprietary bibliography software, EndNote. Zotero could open bibliographies created in EndNote and then resave them in an open format -- a very useful tool that should be perfectly legal -- but which Thomson Reuters claims violated its license agreement, which bars reverse engineering. Luckily, a judge has tossed out the lawsuit, though (as of right now) it's not entirely clear what the reason for the dismissal was (the ruling doesn't appear to be anywhere online, and the reports on it don't seem to have the details either). Hopefully, Thomson Reuters takes the hint and drops the case, but there's probably a half-decent chance that it will refile the suit or appeal. However, one hopes that the company realizes that felony interference with a business model isn't a crime, and reverse engineering has been held to be perfectly legal. Also, wouldn't it be nice if the company focused on competing by innovating on tools and features, rather than trying to sue competitors out of existence? Update: There's a great analysis of the complaint, that goes much more deeply into the details -- and corrects some misperceptions in this and the earlier post (though, I'd still argue it's copyright law that makes the license enforceable in the first place).

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Does Apple Own The Copyright On A File You Create Via iTunes?

from the discussion-should-be-legal dept

Last last year, the EFF publicly blasted Apple for threatening a wiki site, called BluWiki, that had been set up by a firm OdioWorks to reverse engineer interoperability with iPods and iPhones so that those devices could work with other software apps (such as Songbird), rather than being locked into iTunes. Apple had threatened the wiki site with a DMCA violation claim, and the EFF pointed out numerous problems with the DMCA claim. Now things have been kicked up a notch, as the site, along with help from the EFF have sued Apple to have the site declared legal. The EFF argument points out that an open discussion site alone is hardly violating the anti-circumvention provisions of the DMCA, but perhaps the more interesting argument is the fact that the iTunes DB file, which is at the heart of this matter, is created by each user independently and is not encrypted. There are two interesting arguments here. First, since the file is not encrypted, there is no encryption to circumvent, thus no violation of the anti-circumvention clauses. Second, since the file is created by the user and his or her own interaction with the software, Apple has no claim on the copyright of the file. If there's any copyright at all, the argument goes, it belongs to the user, and thus they should have every right to do whatever they want with it. This should be a lawsuit worth watching.

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Reverse Engineering Can Resolve Conflict Between Standardization And Competition

from the dmca-for-example dept

Over at the Technology Liberation Front, my co-blogger Adam Thierer discusses the trade-offs between platform competition and standardization, a subject Mike has written about in the past. Adam explores the mobile phone and console markets, and points out that the proliferation of incompatible devices has created real costs for developers who want to build on top of those various platforms. He makes some good observations, but I think he's missing the importance of reverse-engineering in resolving the dilemma he identifies. If a platform is proprietary, then we really do face a trade-off between standardization and competition. But open, flexible standards allow both: many firms can offer competing products, but they all work together because they're all designed for a common platform. Moreover, if the standard is well designed, the competing products can offer a wide variety of different features, and the standard can grow and evolve over time as vendors propose and adopt new extensions. That's the story of the web, for example, which features both competition and interoperability. The standard has evolved organically, as various vendors proposed and adopted new standards and often adopted those of their competitors.

The question, of course, is how to reach this "sweet spot" of an open, flexible, and universal platform. Sometimes (as with the web) we just get lucky, and the designer of the initial standard has the foresight to make it open and extensible. But when that doesn't happen, and it often doesn't, the next best hope is reverse engineering: a company (e.g. IBM) develops a proprietary platform which achieves popularity and is then reverse-engineered by competitors, transforming it into a de facto open standard. The modern PC platform isn't really controlled by anybody, although Microsoft and Intel have more influence than most other vendors. And because nobody controls it, it's both fiercely competitive and highly interoperable.

Because reverse engineering is so important in transforming closed standards into open ones, we should be especially worried about laws that stand in the way of that process. I've written before that the Digital Millennium Copyright Act is one such roadblock. For example, one would expect companies to be working hard to reverse-engineer Apple's iTunes-iPod ecosystem in order to sell iPod clones. We might expect the emergence of a de facto open standard around Apple's platform, with a variety of iPod clones and drop-in iTunes replacements. Unfortunately, in part because the DMCA limits the reverse-engineering of FairPlay, Apple's DRM technology, few vendors have attempted this. Hence, the DMCA is helping to perpetuate the competition-versus-standardization dilemma Adam laments.

Timothy Lee is an expert at the Insight Community. To get insight and analysis from Timothy Lee and other experts on challenges your company faces, click here.

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