N40GL
Open Channel 'D'
Class is in session.
Okay - things are getting very muddled here. Let's break this down.
<b>The Original Code</b>
What's in the EEC? Computer code. Who owns that? Intellectual property law says that it's owned by the author. So I think its fair to say that Ford owns it, having either hired the software developers as employees to write it, or contracting with an outsourcing entity to write it as a work for hire.
Ford may choose to 'perfect' their rights by filing a copyright for the code, or patenting the code as the 'first to invent' such code. More likely, they'll hold it as a trade secret internally. However, just because they haven't registered or filed doesn't diminish their ownership rights - it just makes them slightly harder to defend.
<b>Infringement</b>
So does that make any changes to the code an infringement of Ford's intellectual property rights? Maybe yes; maybe no.
The Digital Millennium Copyright Act (sec. 1201(f), et seq) specifically permits reverse engineering to achieve interoperability. This grew out of the <i>Sony v. Connectix </i> case, where Connectix created Playstation game cartridges without having access to the Playstation code, and was sued by Sony. The courts held that the Connectix game cartridge was a 'new product', and that the reverse engineering conducted was solely to figure out how to get their game cartridge to work in the player, and was permitted under the law. There's an Atari case that I can't find right now that also applies to Patent law.
So, were I arguing this case on behalf of, say, Superchips, I'd say I reverse engineered the code for compatibility of my 'new product' - the handheld tuner and those little flip-chip boards. This clearly is legal.
Now - if I was Ford, and had a couple of smart software developers in house, I'd recognize that reverse engineering isn't a perfect solution, and I'd recognize that Forded be better off by making sure Superchips (and others) had good code so they had the best resources possible to make new products (i.e. flip-chips) with, so that customers remained happy with their Ford product.
That's why I think there is such a free-flow of code between the two bodies of developers. Superchips gets 'known good code' and Ford gets feedback from what customers go to tuners for and what they want to see in new product. Win-win on both sides.
<b>So, where does that leave us?</b>
I think it's reasonable to conclude that Ford owns the core code in the EEC and (however it was derived) Superchips owns the code that modifies what Ford's code does. There are two distinct piles of software here.
<b>The Tuner</b>
The tuner receives a license to use the Superchips software, based on the Intellectual Property Rights (IPR) owned by Superchips. Remember that under Intellectual Property Law, all rights not granted in a license are reserved to the grantor (or owner) of the IPR.
So I would expect that Superchips tuner software license is licensed to a named user (like, say, Lidio) at a named place (Alternative Auto) for a certain type of use (tuning and modifying Ford computer code) and to leave a copy of the modified computer code in the customer's car.
I also expect the license says that Lidio can only tune for a customer that uses the modified code for personal use and not for resale. This restriction is probably embedded in the program, and written into the modified code in the EEC when the tuning software does its magic, as some sort of comment file.
Even though the customer does not see, know about or read that embedded restriction does not make it any less valid. If you go read some of your Sony music disks, likely you'll find a text file that contains a license in respect of how you use the music disk that I bet you didn't know was there (Sony is famous for this). It's been well litigated that this license is valid and enforceable, and it doesn't really matter what the media for the license might be (inside a CD-ROM or embedded in the EEC-IV). You're stuck with it.
<b>Work for Hire</b>
Therefore, Lidio owns a license from Superchips to use the tuning software on customer cars under a fairly narrow set of circumstances.
You, as a customer, go to Lidio and change the tune in your car. You think it's a "work for hire." Is it?
Probably, but remember that Lidio only has a limited set of rights (via license) under all the rights of Superchips (under ownership). Lidio can't grant to you any more rights than he has to give (or that Superchips allows him to grant).
So Lidio can only give you rights to use the modified tune, and not to resell it. You, as a customer, can commission a "work for hire" from Lidio, but what he delivers to you will be limited in its rights - you get ownership of the modified tune, but it doesn't include rights to resell it. It's a limited ownership concept.
Lidio doesn't own it, either. I suspect Superchips would assert they have some sort of rights to the modification, but not ownership, either.
<b>Who Owns the Tune?</b>
You do, but you have limited rights of usage. That's not in conflict with the concept of 'ownership' as 'use' is often quite different under the law (as any Realtor will tell you). I 'own' my MM, but I can't 'use' it to break the speed laws without penalties.
I would bet that the business model that would be constructed for 'full ownership' of the tune, including rights to resell and modify and copy and so forth would be EXTREMELY expensive, because the creators of the tools that allowed someone to do that know that their window of time to sell their product is very short (since, once a sale is made, that guy gives it to all his friends who were potential customers of the software writers). That means they have to recoup their costs over a much smaller base of customers, so the price goes way, way up.
<b> Open Source?</b>
The Open Source Community believes all software should be free for use, ownership and distribution by everyone. Unfortunately, that means software developers never get paid because there's never any money generated from sales to pay them. This has led to "Monetized Open Source," where software developers charge for software, or give software away and charge for maintenance, or charge for the right to distribute, or to modify, or whatever other rights will make a buck. This just makes ownership and economic issues more complex. It ain't worth going into here.
<b>The Test</b>
I'll be passing out a test now. Please don't copy from your neighbor and turn the test in at the next forum.
Okay - things are getting very muddled here. Let's break this down.
<b>The Original Code</b>
What's in the EEC? Computer code. Who owns that? Intellectual property law says that it's owned by the author. So I think its fair to say that Ford owns it, having either hired the software developers as employees to write it, or contracting with an outsourcing entity to write it as a work for hire.
Ford may choose to 'perfect' their rights by filing a copyright for the code, or patenting the code as the 'first to invent' such code. More likely, they'll hold it as a trade secret internally. However, just because they haven't registered or filed doesn't diminish their ownership rights - it just makes them slightly harder to defend.
<b>Infringement</b>
So does that make any changes to the code an infringement of Ford's intellectual property rights? Maybe yes; maybe no.
The Digital Millennium Copyright Act (sec. 1201(f), et seq) specifically permits reverse engineering to achieve interoperability. This grew out of the <i>Sony v. Connectix </i> case, where Connectix created Playstation game cartridges without having access to the Playstation code, and was sued by Sony. The courts held that the Connectix game cartridge was a 'new product', and that the reverse engineering conducted was solely to figure out how to get their game cartridge to work in the player, and was permitted under the law. There's an Atari case that I can't find right now that also applies to Patent law.
So, were I arguing this case on behalf of, say, Superchips, I'd say I reverse engineered the code for compatibility of my 'new product' - the handheld tuner and those little flip-chip boards. This clearly is legal.
Now - if I was Ford, and had a couple of smart software developers in house, I'd recognize that reverse engineering isn't a perfect solution, and I'd recognize that Forded be better off by making sure Superchips (and others) had good code so they had the best resources possible to make new products (i.e. flip-chips) with, so that customers remained happy with their Ford product.
That's why I think there is such a free-flow of code between the two bodies of developers. Superchips gets 'known good code' and Ford gets feedback from what customers go to tuners for and what they want to see in new product. Win-win on both sides.
<b>So, where does that leave us?</b>
I think it's reasonable to conclude that Ford owns the core code in the EEC and (however it was derived) Superchips owns the code that modifies what Ford's code does. There are two distinct piles of software here.
<b>The Tuner</b>
The tuner receives a license to use the Superchips software, based on the Intellectual Property Rights (IPR) owned by Superchips. Remember that under Intellectual Property Law, all rights not granted in a license are reserved to the grantor (or owner) of the IPR.
So I would expect that Superchips tuner software license is licensed to a named user (like, say, Lidio) at a named place (Alternative Auto) for a certain type of use (tuning and modifying Ford computer code) and to leave a copy of the modified computer code in the customer's car.
I also expect the license says that Lidio can only tune for a customer that uses the modified code for personal use and not for resale. This restriction is probably embedded in the program, and written into the modified code in the EEC when the tuning software does its magic, as some sort of comment file.
Even though the customer does not see, know about or read that embedded restriction does not make it any less valid. If you go read some of your Sony music disks, likely you'll find a text file that contains a license in respect of how you use the music disk that I bet you didn't know was there (Sony is famous for this). It's been well litigated that this license is valid and enforceable, and it doesn't really matter what the media for the license might be (inside a CD-ROM or embedded in the EEC-IV). You're stuck with it.
<b>Work for Hire</b>
Therefore, Lidio owns a license from Superchips to use the tuning software on customer cars under a fairly narrow set of circumstances.
You, as a customer, go to Lidio and change the tune in your car. You think it's a "work for hire." Is it?
Probably, but remember that Lidio only has a limited set of rights (via license) under all the rights of Superchips (under ownership). Lidio can't grant to you any more rights than he has to give (or that Superchips allows him to grant).
So Lidio can only give you rights to use the modified tune, and not to resell it. You, as a customer, can commission a "work for hire" from Lidio, but what he delivers to you will be limited in its rights - you get ownership of the modified tune, but it doesn't include rights to resell it. It's a limited ownership concept.
Lidio doesn't own it, either. I suspect Superchips would assert they have some sort of rights to the modification, but not ownership, either.
<b>Who Owns the Tune?</b>
You do, but you have limited rights of usage. That's not in conflict with the concept of 'ownership' as 'use' is often quite different under the law (as any Realtor will tell you). I 'own' my MM, but I can't 'use' it to break the speed laws without penalties.
I would bet that the business model that would be constructed for 'full ownership' of the tune, including rights to resell and modify and copy and so forth would be EXTREMELY expensive, because the creators of the tools that allowed someone to do that know that their window of time to sell their product is very short (since, once a sale is made, that guy gives it to all his friends who were potential customers of the software writers). That means they have to recoup their costs over a much smaller base of customers, so the price goes way, way up.
<b> Open Source?</b>
The Open Source Community believes all software should be free for use, ownership and distribution by everyone. Unfortunately, that means software developers never get paid because there's never any money generated from sales to pay them. This has led to "Monetized Open Source," where software developers charge for software, or give software away and charge for maintenance, or charge for the right to distribute, or to modify, or whatever other rights will make a buck. This just makes ownership and economic issues more complex. It ain't worth going into here.
<b>The Test</b>
I'll be passing out a test now. Please don't copy from your neighbor and turn the test in at the next forum.