This article has been written by Shruti Chaturvedi, a 3rd year student of Agra College Agra
Abstract
As a fintech business, you undoubtedly deal with a lot of data. You must comprehend the many interconnected legal rights and obligations that pertain to the data as a way to know what one can accomplish using it. This covers contracts, financial regulation, data security, and intellectual property. Recognising this is crucial since a breach could harm your company. Recognise the considerations you should have for the utilisation of your contribution knowledge. Describe the potential intellectual property rights in information as well as the circumstances in which they may occur. Recognise the considerations you should make about the fundamental liberties of the information you produce. Copyright holders have made several attempts to protect against infringement threats. They have created technological impediments to unauthorised copying and prosecuted online file sharing service providers and users. Additionally, they have pushed governments to bolster legal protection. They have also pushed the police and prosecutors to use illegal copyright legislation more freely.
Keywords – Intellectual Property, Copyright, Software, Access
Introduction
Copyright is generated at the moment the piece is created. For those who volunteer or develop it, this has many advantages, but it also raises issues for those who own the information and wish to monitor public interest in their works, which are likewise made available to the public. Up until recently, authors might have chosen to grant artists permission to publish their creations. Users of this domain are able to access and use the protected content without restriction. When other individuals who make use of intellectual property accuse intellectual property owners of infringing their rights, those owners are always free to argue for their rights.
Since software is a sort of copyrighted work and is regarded as high technology, rules pertaining to software intellectual property rights are frequently insufficient. Software intellectual property is protected by copyright laws in the majority of nations. Software design concepts that are closely related to hardware can also be filed for patent protection. Although current software protection techniques cover a substantial portion of the security of computer software and systems, there are still some vulnerabilities in the system.
Briefing of the Copyright
The legal phrase “copyright” is used to describe the ownership rights that authors have over their literary and creative creations. It also refers to the rights that an original creator can only provide to another individual in order for them to exploit their creations. It is an intellectual property right granted to the author. This privilege empowers both beginner and experienced artists to present their creations to the public and provide a self-description of their work. The creator has the authority to copy and distribute their creations.
The copyright sign © or the term “copyright” should be used, ideally near the start of the notice, as they are well recognised.
Copyright date: Only years are mentioned in this text. The notice will include the year of publishing. Nonetheless, in situations when the content is updated often and spans multiple years, the complete duration of the content will be shown, as is the case with websites.
OR
Computer code, graphic interface elements, audio, video, application programming interface (API) structure, and other works are all autonomously covered by copyright. Specifications like source code, pseudo code, machine code, and firmware or hardware designed with a specific function can all be found in computer code. For a Fintech company, copyright is a crucial intellectual property asset, especially if the programme design offers computational and usability efficiencies.
To further enhance security, Fintech companies can find it advantageous to apply digital locks to duplicates of their creations. In many jurisdictions, it is illegal to bypass digital locks, which might offer protection against illegal individuals. Even mistakenly incorporating third-party copyright should raise red flags for Fintech companies since it can affect technology control and liberty of operation.
Issues Related to Copyright
These concerns might involve digital piracy, reasonable use exceptions, illegal copying or distribution, plagiarism, licencing agreements, and striking an equilibrium between upholding authors’ rights and fostering accessibility to information and cross-cultural interchange.
The following can involve duplicating any type of creative expression that is copyright-protected, including text, pictures, music, and videos.
For example, if someone uses an original creator video without their permission or copies the creator’s writing without their permission, this can be called an issue of copyright. Without the permission of another person, this may lead to the violation of these rights.
Copyright for Software
Regulations for the protection of computer software copyrights in India are found in the Copyright Act, 1957. The Copyright Act, 1957 stipulates in Section 2(o) that a computer programmes, tables, and compilations, including computer databases, are considered “literary works.” To acquire copyright for software, the developer only needs to store the programme on a tangible media, such as a hard drive, ROM, or other digital storage device. This automatically qualifies the software for copyright protection.
Authors (Copyright ) Rights
According to sections 14 and 57 of the Copyright Act, respectively, the author’s economic and ethical liberties in the work subject to copyright are safeguarded, including those in computer software and programmes. With regard to computer software and programmes, the owner or owners of the copyright are free to replicate any necessary copies, distribute copies to the general public, and adapt the work into cinematographic films or sounds. However, they are not allowed to be sold, rented out for profit, or offered for sale. When a computer programme is not the primary purpose of the rental, this type of commercial rental does not apply to computer software or programmes. Article 11 of the TRIPS Agreement is compliant with this rental rights provision. Although ethical principles are not expressly protected by the TRIPS Agreement, they are protected by the Copyright Act of 1957. In a nutshell, Section 51 states that in the event of any infringement of the Copyright Act, such as unauthorised use, civil remedies are available under Chapter XII of the Copyright Act 1957. These remedies include the issuing of an injunction and damages. Whereby aiding and abetting a breach is likewise prohibited and can result in up to three years in jail and a fine of up to Rs. two lakhs. When someone intentionally uses illegal copies of computer software, they are committing a crime that carries a minimum sentence of seven days in jail, which can be extended to three years, and a maximum fine of Rs. 50,000, which can go up to Rs. two lacs. A plaintiff may file a claim for a court order against infringements in the district court of the jurisdiction in which the claimant resides, conducts business, or works for compensation under Section 62 of the Copyright Act, 1957.
Landmark Case
Tata Consultancy Services v. State of Andhra Pradesh, 271 ITR 401 (2004)
The Supreme Court took into account that computer software, whether it is delivered in the form of diskettes, floppy discs, magnetic tapes, or CD ROMs, whether it is customised or canned, branded or not branded, tangible or intangible, and whether it comes with a computer or not, is intellectual property. It is also an item of value that can be transferred, supplied, preserved, processed, and so on, making it a “good” subject to sales tax.
The judge ruled that something would be considered good if it possessed the following qualities: (a) ability; (b) ability to be purchased and sold; and (c) ability to be transported, conveyed, delivered, stored, and possessed. Goods would be the same if software—customised or not—satisfied these requirements.
Source Code
The computer programme first code produced in one of the programme dialects is known as the source code. Only an expert in the domain of software or computers can read and comprehend this language. The version of the programme that is readable directly by the computer and is in binary form—basically, a series of zeros and ones—is known as the object code. Binary language is unable to be understood by humans unless it is decompiled or converted into the source code.
What if fintech data has been hacked?
The information that follows, if fintech data has been made accessible, includes customer and transactional data, credit history information, social media account information, card information, and any additional information that may be optionally made available.
What kinds of intellectual property rights could data contain?
- Rights of Database
- Rights of Copyright Database
- Literary Copyright
- Confidence
Some facts of Copyright
- Copyright shields ideas from expression, not ideas themselves.
- Works are protected by copyright.
- Copyright safeguards creative creations.
- There are exceptions to copyright.
- Copyright safeguards moral and financial rights.
- Copyright is inherently present.
- Works protected by copyright should never be distributed without the owner’s consent.
- Copyright offers a wide range of defences.
- Copyright is valid for a respectable amount of time.
Formalities while filing patent
The First Schedule lists the charges that are due for the granting of patents and the applications pertaining to them, as well as for additional expenses for which payments are necessary.
A physical filing of the patent applications and other papers is subject to an extra 10% fee.
The costs that are due under the Act or the rules can be delivered by bank draft or banker’s check, or they can be paid in currency or electronically at the relevant workplace. The money must be paid through the Controller of Patents and deposited into a designated bank account at the location of the relevant office. Should the draft or banker’s check be submitted via postal mail, the charges will be considered completed as of the day the document actually reaches the controller.
If there is a cost associated with a document, the whole fee needs to be paid with the paperwork.
If an application is transferred from a natural person to someone else, the new applicant must pay any discrepancy in fees together with the transfer request.
Intellectual Property in the Fintech Sector
In the process of creating and implementing Fintech goods and services, established financial institutions and start-ups are engaged in both friendly competition and cooperative efforts. Particularly when collaborating with several third parties, businesses should precisely describe and safeguard their intellectual property through registrations and paperwork. Following that, a business may manage how its intellectual property is used, especially how it is used through licencing and joint venture agreements.
Copyright in software
The software’s copyright protects individual code or UI components. In contrast to patents, copyright is automatically acquired upon creation of the original work; an application process is not required. Generally speaking, copyright is valid for the total number of years of the life of the copyright owner in addition to 50 years, or 75 years via publication if the software was developed by a corporate employee.
How to safeguard the software programme’s intellectual property?
Engage the services of a competent attorney or legal team to determine your actual rights and the most effective tactics to defend them.
When feasible, register trademarks and submit patent applications.
Before hiring someone or having a third-party contractor work for you, thoroughly investigate them and get their signatures on non-disclosure agreements. How to safeguard the software programme’s intellectual property.
Utilise safe devices for conserving and handling information, and comply with all recommended data security procedures.
A strong licencing management system is what is required to safeguard the software once the technology is prepared for commercial release.
How does it work?
By granting users licences that restrict their usage of the programme to approved uses, licencing management systems contribute to the protection of software’s intellectual property. Every licence aids in restricting the software’s use to ensure that each use abides by the terms of the agreement. The provider can also monitor the usage of the licences that every single client has paid with the help of an extensive licencing management system.
For various kinds of software, several licencing management models can be applied. Software differs from software and companies, and different variants of the same programme may require different approaches to software IP protection.
Conclusion
Copyright issue in fintech : Software, databases and content protection
A copyright issue can be raised if, in a fintech company, it has not been taken seriously. So for the protection of the forthcoming risks, the organisation needs to get ready by completing all the protocols that can help protect the software, database, and content.
The summary that can be drawn to issue the licences for the software programme’s and by taking the signature on the contract where it is mentioned that the vendor will not disclose the confidential information to any other person.
REFERENCES
Clear tax https://cleartax.in/s/copyright-protection-software ( last seen on November,18)
Mondaq https://www.mondaq.com/india/copyright/262564/copyright-protection-for-computer-software-an-indian-prospective ( last seen on November,18)
Finance Unlocked https://financeunlocked.com/videos/fintech-data-rights-in-data-1-4 ( last seen on November,18)
LinkedIn Newsletter https://www.linkedin.com/pulse/copyright-basics-10-facts-everyone-should-know-azeezat-periola?utm_source=share&utm_medium=member_android&utm_campaign=share_via ( last seen on November,18)
Thales https://cpl.thalesgroup.com/software-monetization/protecting-software-intellectual-property ( last seen on November,18)