† 1998 Julie E. Cohen.
† Visiting Assistant Professor, Georgetown University Law Center (Fall 1998); Visiting Assistant Professor, University of Michigan Law School (Spring 1999); Assistant Professor, University of Pittsburgh School of Law. Internet: <cohen@law.pitt.edu>. I thank Harry Flechtner, Steve Goldberg, Kate Heidt, Avery Katz, Mark Lemley, Larry Lessig, Jerry Reichman, M. Douglas Scott, and Bill Vukowich for their valuable comments and suggestions and Steven Serdikoff and Richard DeCristofaro for research assistance. I appreciate David Friedman's attention to my work.
1. See U.C.C. § 2B-102(a)(27) (Aug. 1, 1998 Draft). As defined in Article 2B, "informational rights" encompass "all rights in information created under laws governing patents, copyrights, mask works, trade secrets, trademarks, publicity rights, or any other law that permits a person, independently of contract, to control or preclude another person's use of the information on the basis of the rights holder's interest in the information." Id.
Unless otherwise noted, all citations to 'Article 2B' or 'proposed Article 2B' in this article refer to the July 24-31, 1998 Proposed Draft. Current and previous drafts of proposed Article 2B, together with other official documents from the drafting process, are available online via the National Council of Commissioners on Uniform State Laws' Web page collection of draft uniform laws, maintained by the Biddle Law Library at the University of Pennsylvania Law School. See National Council of Commissioners on Uniform State Laws, Drafts of Uniform and Model Acts, (last modified Oct. 21, 1998) <http://www.law.upenn.edu/library/ulc/ulc.htm#ucc2b>. Correspondence and other documents submitted by interested parties during the drafting process are also available on the Web. See Carol A. Kunze, The 2B Guide (last modified Nov. 1, 1998) <http://www.2BGuide.com/>.
2. See U.C.C. § 2B-208 (July 24-31, 1998 Draft) (validating mass market standard-form license terms); id. § 2B-310 (authorizing licensors to implement electronic regulation of performance); id. § 2B-715 (authorizing licensor self-help following cancellation of a covered agreement).
3. See id. §§ 2B-208, Reporter's Notes 3-4, 2B-310, Reporter's Note 1, 2B-715, Reporter's Note 3; see also U.C.C. Article 2B, Preface at 9 (July 24-31, 1998 Draft) ("Article 2B does not create contract law here-it merely provides a more coherent base for contracting."); Raymond T. Nimmer, The Relation Between Contract and Intellectual Property Law, 13 BERKELEY TECH. L.J. 827, 829 (1998).
4. See U.C.C. § 2B-105, Reporter's Notes 2-3; see also id. § 2B-105, Reporter's Notes 7-8; Nimmer, supra note 3, at *. For a different characterization of Article 2B's approach to the relationship between contract and copyright, see David F. McGowan, Free Contracting, Fair Competition, and Article 2B: Some Reflections on Federal Competition Policy, Information Transactions, and "Aggressive Neutrality," 13 BERKELEY TECH. L.J. * (1998).
5. See, e.g., ProCD, Inc. v. Zeidenberg, 86 F.3d 1447, 1454 (7th Cir. 1996); Brief of Amicus Curiae Software Publishers Association in Support of Plaintiff-Appellant, ProCD, Inc. v. Zeidenberg, 86 F.3d 1447 (7th Cir. 1996) (No. 96-1139); Information Indus. Ass'n, Comments of the Information Industry Association on Article 2B and Prof. Charles McManis' Proposed Amendment to Section 2B-308 (July 18, 1997) <http://www.infoindustry.org/ppgrc/doclib/grdoc010.htm>; Copyright Comm., Ass'n of Am. Publishers, Contractual Licensing, Technological Measures and Copyright Law (visited Nov. 11, 1998) <http://www.publishers.org/home/abouta/copy/licensing.htm>; see also Robert W. Gomulkiewicz & Mary L. Williamson, A Brief Defense of Mass Market Software License Agreements, 22 RUTGERS COMPUTER & TECH. L.J. 335 (1996); Holly K. Towle, Electronic Transactions and Contracting, in SECOND ANNUAL INTERNET LAW INSTITUTE 515 (PLI, 1998).
6. Currently, self-help repossession is authorized in certain circumstances by U.C.C. Articles 2A and 9, which govern leases and secured transactions respectively. See U.C.C. § 2A-525 (1990), U.C.C. § 9-503 (1972). The standards that govern self-help repossession under Articles 2A and 9 are derived from the pre-U.C.C. common law. See infra text accompanying notes 45-54.
7. See, e.g., John Perry Barlow, The Economy of Ideas: A Framework for Rethinking Patents and Copyrights in the Digital Age, WIRED, Mar. 1994, at 85; JAMES BOYLE, SHAMANS, SOFTWARE, AND SPLEENS: LAW AND THE CONSTRUCTION OF THE INFORMATION SOCIETY 35-41 (1995); Julie E. Cohen, Lochner in Cyberspace: The New Economic Orthodoxy of "Rights Management," 97 MICH. L. REV. 301, 381-90 (1998); J. Bradford DeLong & A. Michael Froomkin, The Next Economy?, in INTERNET PUBLISHING AND BEYOND: THE ECONOMICS OF DIGITAL INFORMATION AND INTELLECTUAL PROPERTY (Deborah Hurley et al. eds., forthcoming 1998); Esther Dyson, Intellectual Value, WIRED, July 1995, at 136.
8. See, e.g., WIPO Copyright Treaties Implementation Act: Hearing on H.R. 2281 Before the Subcomm. on Telecommunications Trade & Consumer Protection of the House Comm. on Com., 105th Cong. (1998) [hereinafter H.R. 2281 Commerce Hearing] (statement of Robert W. Holleyman, II, President, The Business Software Alliance); Copyright Legislation: Hearings on H.R. 2281 Before the Subcomm. on Cts. and Intell. Prop. of the House Comm. on the Judiciary, 105th Cong. (1997) [hereinafter H.R. 2281 Judiciary Hearings] (statements of Robert W. Holleyman, II, President, The Business Software Alliance; Allee Willis, on behalf of Broadcast Music, Inc.; Tom Ryan, CEO, SciTech Software, Inc., on behalf of the Software Publishers' Ass'n; Gail Markels, General Counsel and Senior Vice President, Interactive Digital Software Ass'n; and Allen R. Adler, Vice President for Legal and Governmental Affairs, Association of Am. Publishers); National Information Infrastructure: Hearing on S. 1284 Before the Senate Comm. on the Judiciary, 104th Cong. (1996) [hereinafter S. 1284 Hearing] (testimony of Kenneth R. Kay, Executive Director, Creative Incentive Coalition); Copyright Protection on the Internet: Hearings on H.R. 2441 Before the Subcomm. on Cts. and Intell. Prop. of the House Comm. on the Judiciary, 104th Cong. (1996) [hereinafter H.R. 2441 Hearing] (statements of Barbara A. Munder, Senior Vice President, The McGraw-Hill Companies, Inc.; Frances W. Preston, President and CEO, Broadcast Music, Inc.; Jack Valenti, Chairman and CEO, Motion Picture Ass'n of Am., Inc.; and the Association of Am. Publishers); see also WORKING GROUP ON INTELLECTUAL PROPERTY RIGHTS, U.S. DEP'T OF COMMERCE, INTELLECTUAL PROPERTY AND THE NATIONAL INFORMATION INFRASTRUCTURE: THE REPORT OF THE WORKING GROUP ON INTELLECTUAL PROPERTY RIGHTS 10-12 (1995) [hereinafter NII WHITE PAPER].
9. See Jon Bing, The Contribution of Technology to the Identification of Rights, Especially in Sound and Audio-Visual Works: An Overview, 4 INT'L J.L. & INFO. TECH. 234 (1996); CHRISTOPHER BURNS, INC., COPYRIGHT MANAGEMENT AND THE NII: REPORT TO THE ENABLING TECHNOLOGIES COMMITTEE OF THE ASSOCIATION OF AMERICAN PUBLISHERS (1996); Charles Clark, The Publisher in the Digital World, in INTELLECTUAL PROPERTY RIGHTS AND NEW TECHNOLOGIES: PROCEEDINGS OF THE KNOWRIGHT '95 CONFERENCE 85 (Klaus Brunnstein & Peter Paul Sint eds., 1995; Daniel J. Gervais, Electronic Rights Management Systems (ERMS): The Next Logical Step in the Evolution of Rights Management (visited Nov. 13, 1998) <http://www.copyright.com/>; Daniel J. Gervais, Electronic Copyright Management Systems (ECMS): From Rights Trading to Electronic Publishing (visited Nov. 13, 1998) <http://www.copyright.com/>; Mark Stefik, Shifting the Possible: How Digital Property Rights Challenge Us to Rethink Digital Publishing, 12 BERKELEY TECH. L.J. 138 (1997); MARK STEFIK, Letting Loose the Light: Igniting Commerce in Electronic Publication, in INTERNET DREAMS: ARCHETYPES, MYTHS, AND METAPHORS 219 (1996); PETER WAYNER, DIGITAL COPYRIGHT PROTECTION (1997); Robert Weber, Digital Rights Management Technologies, <http://www.ncri.com/articles/rights_management/ifrro95.html>. See generally Julie E. Cohen, A Right to Read Anonymously: A Closer Look at "Copyright Management" in Cyberspace, 28 CONN. L. REV. 981, 983-87 (1996) (describing capabilities of digital rights management systems).
10. See Weber, supra note 9, § 3.1.1; see also CHRISTOPHER BURNS, INC., supra note 9, at 17-21, 31-35; Stefik, Shifting the Possible, supra note 9, at 140-44; STEFIK, Letting Loose the Light, supra note 9, at 228-38.
11. For information provider testimony in support of legislation, see H.R. 2281 Commerce Hearing, supra note 8; H.R. 2281 Judiciary Hearings, supra note 8; S. 1284 Hearing, supra note 8; H.R. 2441 Hearing, supra note 8; see also NII WHITE PAPER, supra note 8. Legislation designed to protect digital rights management systems was enacted this year. See Digital Millennium Copyright Act, Pub. L. No. 105-304, 112 Stat. 2860 (1998). For discussion of its provisions, see infra note 201.
12. See, e.g., 17 U.S.C. §§ 107 (1994) (fair use doctrine, which allows, inter alia, reuse of protected expression for purposes of criticism, classroom or research use, and parody), 108 (1994) (library copying privileges), 109(a) (1994) (limitation of exclusive distribution right to first sale of copy for most works), 110 (1994) (public performance and display exemptions for nonprofit activities and organizations), 302 (1994) (duration of copyright protection).
13. See 17 U.S.C. § 102(b) (1994); Feist Publications, Inc. v. Rural Tel. Serv. Co., 499 U.S. 340, 349-50 (1991); Jessica Litman, The Public Domain, 39 EMORY L.J. 965, 993 (1990).
14. See Feist, 499 U.S. at 349-50. Even for those compilations that incorporate original expression in the selection or arrangement of the underlying data, copyright protection extends only to those aspects and not to the data itself. 17 U.S.C. § 103(b) (1994). See generally 1 MELVILLE B. NIMMER & DAVID NIMMER, NIMMER ON COPYRIGHT § 3.04[B][2] (46th rel. 1998).
15. See infra Part V.A. Compare International News Serv. v. Associated Press, 248 U.S. 215 (1918) (recognizing a common law cause of action for misappropriation of uncopyrightable news content), with 17 U.S.C. § 301(a) (1994) (preempting "equivalent" state-created rights in subject matter of copyright). On the appropriate role of data misappropriation law within the interstices of federal copyright law, see National Basketball Ass'n v. Motorola, Inc., 105 F.3d 841, 852-54 (2d Cir. 1997); see also United States Golf Ass'n v. St. Andrews Sys., 749 F.2d 1028, 1037-38 (3d Cir. 1984) (articulating a narrow basis for the misappropriation tort).
There may soon exist federal protection for uncopyrightable databases and their contents. Database protection bills were introduced in both houses of Congress in 1998. See Collections of Information Antipiracy Act, H.R. 2652, 105th Cong. (1997); Collections of Information Antipiracy Act, S. 2291, 105th Cong. (1998). The House bill was incorporated into the Digital Millenium Copyright Act, which passed the House on July 29, 1998. See Digital Millenium Copyright Act, H.R. 2281, 105th Cong., Title V. However, the Senate-approved version of the Digital Millenium Copyright Act did not include database protection. See Digital Millenium Copyright Act, S. 2037, 105th Cong. Because the Senate has yet to hold hearings on database protection, the database provisions were removed from the final version of the bill. See Digital Millenium Copyright Act, Pub. L. No. 105-304, 112 Stat. 2860 (1998). Whether and to what extent such protection would be inconsistent with the constitutional origins of and limits to federal copyright protection are unresolved questions. Cf. infra Part V.A (discussing constitutional preemption of state laws that confer property-like protection on uncopyrightable material).
16. See UNIF. TRADE SECRETS ACT