The Copyright Industry

Copyright is not only about protecting the rights of creators, but has also become a major branch of industry with significant contributions to the global economy. According to the International Intellectual Property Alliance the U.S. copyright industry has grown almost three times as fast as the economy as a whole for the past 20 years. In 1997, the total copyright industries contributed an estimated US$ 529.3 billion to the U.S. economy with the core copyright industries accounting for US$ 348.4 billion. Between 1977 and 1997, the absolute growth rate of value added to the U.S. GDP by the core copyright industries was 241 %. Also the copyright industry's foreign sales in 1997 (US$ 66.85 billion for the core copyright industries) were larger than the U.S. Commerce Department International Trade Administration's estimates of the exports of almost all other leading industry sectors. They exceeded even the combined automobile and automobile parts industries, as well as the agricultural sector.

In an age where knowledge and information become more and more important and with the advancement of new technologies, transmission systems and distribution channels a further increase in the production of intellectual property is expected. Therefore as copyright establishes ownership in intellectual property it is increasingly seen as the key to wealth in the future.

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Intellectual Property: A Definition

Intellectual property, very generally, relates to the output, which result from intellectual activity in the industrial, scientific, literary and artistic fields. Traditionally intellectual property is divided into two branches:

1) Industrial Property

a) Inventions
b) Marks (trademarks and service marks)
c) Industrial designs
d) Unfair competition (trade secrets)
e) Geographical indications (indications of source and appellations of origin)

2) Copyright

The protection of intellectual property is guaranteed through a variety of laws, which grant the creators of intellectual goods, and services certain time-limited rights to control the use made of their products. Those rights apply to the intellectual creation as such, and not to the physical object in which the work may be embodied.

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Transparent customers. Direct marketing online



This process works even better on the Internet because of the latter's interactive nature. "The Internet is a dream to direct marketers", said Wil Lansing, CEO of the American retailer Fingerhut Companies. Many services require you to register online, requiring users to provide as much information about them as possible. And in addition, the Internet is fast, cheap and used by people who tend to be young and on the search for something interesting.

Many web sites also are equipped with user tracking technology that registers a users behaviour and preferences during a visit. For example, user tracking technology is capable of identifying the equipment and software employed by a user, as well as movements on the website, visit of links etc. Normally such information is anonymous, but can be personalised when it is coupled with online registration, or when personal identifcation has been obtained from other sources. Registration is often a prerequisite not just for obtaining a free web mail account, but also for other services, such as personalised start pages. Based on the information provided by user, the start page will then include advertisements and commercial offers that correspond to the users profile, or to the user's activity on the website.

One frequent way of obtaining such personal information of a user is by offering free web mail accounts offered by a great many companies, internet providers and web portals (e.g. Microsoft, Yahoo, Netscape and many others). In most cases, users get "free" accounts in return for submitting personal information and agreeing to receive marketing mails. Free web mail accounts are a simple and effective direct marketing and data capturing strategy which is, however, rarely understood as such. However, the alliances formed between direct advertising and marketing agencies on the one hand, and web mail providers on the other hand, such as the one between DoubleClick and Yahoo, show the common logic of data capturing and direct marketing. The alliance between DoubleClick and Yahoo eventually attracted the US largest direct marketing agency, Abacus Direct, who ended up buying DoubleClick.

However, the intention of collecting users personal data and create consumer profiles based on online behaviour can also take on more creative and playful forms. One such example is sixdegrees.com. This is a networking site based on the assumption that everybody on the planet is connected to everybody else by a chain of six people at most. The site offers users to get to know a lot of new people, the friends of their friends of their friends, for example, and if they try hard enough, eventually Warren Beatty or Claudia Schiffer. But of course, in order to make the whole game more useful for marketing purposes, users are encouraged to join groups which share common interests, which are identical with marketing categories ranging from arts and entertainment to travel and holiday. Evidently, the game becomes more interesting the more new people a user brings into the network. What seems to be fun for the 18 to 24 year old college student customer segment targeted by sixdegrees is, of course, real business. While users entertain themselves they are being carefully profiled. After all, data of young people who can be expected to be relatively affluent one day are worth more than money.

The particular way in which sites such as sixdegrees.com and others are structured mean that not only to users provide initial information about them, but also that this information is constantly updated and therefore becomes even more valuable. Consequently, many free online services or web mail providers cancel a user's account if it has not been uses for some time.

There are also other online services which offer free services in return for personal information which is then used for marketing purposes, e.g. Yahoo's Geocities, where users may maintain their own free websites, Bigfoot, where people are offered a free e-mail address for life, that acts as a relais whenever a customer's residence or e-mail address changes. In this way, of course, the marketers can identify friendship and other social networks, and turn this knowledge into a marketing advantage. People finders such as WhoWhere? operate along similar lines.

A further way of collecting consumer data that has recently become popular is by offering free PCs. Users are provided with a PC for free or for very little money, and in return commit themselves to using certain services rather than others (e.g. a particular internet provider), providing information about themselves, and agree to have their online behaviour monitored by the company providing the PC, so that accurate user profiles can be compiled. For example, the Free PC Network offers advertisers user profiles containing "over 60 individual demographics". There are literally thousands of variations of how a user's data are extracted and commercialised when online. Usually this happens quietly in the background.

A good inside view of the world of direct marketing can be gained at the website of the American Direct Marketing Association and the Federation of European Direct Marketing.

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Feeding the data body

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Legal Protection: WIPO (World Intellectual Property Organization)

Presumably the major player in the field of international intellectual property protection and administrator of various multilateral treaties dealing with the legal and administrative aspects of intellectual property is the WIPO.

Information on WIPO administered agreements in the field of industrial property (Paris Convention for the Protection of Industrial Property (1883), Madrid Agreement Concerning the International Registration of Marks (1891) etc.) can be found on: http://www.wipo.org/eng/general/index3.htm

Information on treaties concerning copyright and neighboring rights (Berne Convention for the Protection of Literary and Artistic Works (1886) etc.) is published on: http://www.wipo.org/eng/general/index5.htm

The most recent multilateral agreement on copyright is the 1996 WIPO Copyright Treaty. Among other things it provides that computer programs are protected as literary works and also introduces the protection of databases, which "... by reason of the selection or arrangement of their content constitute intellectual creations." Furthermore the 1996 WIPO Copyright Treaty contains provisions concerning technological measures, rights management information and establishes a new "right of communication to the public". It is available on: http://www.wipo.org/eng/diplconf/distrib/treaty01.htm

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Legal Protection: European Union

Within the EU's goal of establishing a European single market also intellectual property rights are of significance. Therefore the European Commission aims at the harmonization of the respective national laws of the EU member states and for a generally more effective protection of intellectual property on an international level. Over the years it has adopted a variety of Conventions and Directives concerned with different aspects of the protection of industrial property as well as copyright and neighboring rights.

An overview of EU activities relating to intellectual property protection is available on the website of the European Commission (DG Internal Market): http://www.europa.eu.int/comm/internal_market/en/intprop/intprop/index.htm

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Atrocity Stories

Atrocity stories are nothing else than lies; the two words "atrocity stories" simply pretend to be more diplomatic.
The purpose is to destroy an image of the enemy, to create a new one, mostly a bad one. The story creating the image is not necessarily made up completely. It can also be a changed into a certain variable direction.
The most important thing about atrocity stories is to follow the line of possibility. Even if the whole story is made up it must be probable or at least possible, following rumors. Most successful might it be if a rumor is spread on purpose, some time before the atrocity story is launched, because as soon as something seems to be familiar, it is easier to believe it.

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Fuzzy logic

A superset of Boolean logic (George Boole) introduced by Lotfi Zadeh in the 1960s as a means to model the uncertainty of natural language. Fuzzy logic is a type of logic that recognizes more than simple true and false values. It represents a departure from classical two-valued sets and logic, that use "soft" linguistic (e.g. large, small, hot, cold, warm) system variables and a continuous range of truth values in the interval [0,1], rather than strict binary (true or false) decisions and assignments.

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American Petroleum Institute

Major national trade association representing petroleum industry efforts in exploration and production, transportation, refining, and marketing.

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Viacom

One of the largest and foremost communications and media conglomerates in the
world. Founded in 1971, the present form of the corporation dates from 1994 when Viacom Inc., which owned radio and television stations and cable television programming services and systems, acquired the entertainment and publishing giant Paramount Communications Inc. and then merged with the video and music retailer Blockbuster Entertainment Corp. Headquarters are in New York City.

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Atlantic Richfield Company

American petroleum corporation created in 1966 by the merger of Richfield Oil

Corporation and Atlantic Refining Company. A further merger in 1969 brought in Sinclair Oil Corporation. Atlantic Richfield has petroleum operations in all parts of the United States as well as in Indonesia, the North Sea, and the South China Sea. The company also owns and operates transportation facilities for liquid petroleum, including pipelines and tankers; produces and sells chemicals, coal, and metal products; and is involved in the development of solar energy products and in other energy-related activities. Headquarters are in Los Angeles.

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Pfizer

Pfizer Inc is a research-based, global pharmaceutical company. The company has three business segments: health care, animal health and consumer health care. Its products are available in more than 150 countries. Headquarters are in New York.

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Salomon Smith Barney

Investment banking firm and securities dealer. Founded in the 19th century in Philadelphia, in 1993 Smith Barney became a wholly owned subsidiary of Travelers Group Inc. The 1998 merger of Citicorp and Travelers Group brought together Citibank, Travelers, Salomon Smith Barney, Commercial Credit and Primerica under Citigroup's trademark red umbrella.

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Binary number system

In mathematics, the term binary number system refers to a positional numeral system employing 2 as the base and requiring only two different symbols, 0 and 1. The importance of the binary system to information theory and computer technology derives mainly from the compact and reliable manner in which data can be represented in electromechanical devices with two states--such as "on-off," "open-closed," or "go-no go."

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Royal Dutch/Shell Group

One of the world's largest corporate entities in sales, consisting of companies in more than 100 countries, whose shares are owned by NV Koninklijke Nederlandsche Petroleum Maatschappij (Royal Dutch Petroleum Company Ltd.) of The Hague and by the "Shell" Transport and Trading Company, PLC, of London. Below these two parent companies are two holding companies, Shell Petroleum NV and the Shell Petroleum Company Limited, whose shares are owned 60 percent by Royal Dutch and 40 percent by "Shell" Transport and Trading. The holding companies, in turn, hold shares in and administer the subsidiary service companies and operating companies around the world, which engage in oil, petrochemical, and associated industries, from research and exploration to production and marketing. Several companies also deal in metals, nuclear energy, solar energy, coal, and consumer products.

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