Should I lock my code to protect my wrights?????

Pierre

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We have in the past talked many times about this issue, here is real life.
Giant Robot Imprisons Parked Cars
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The robot that parks cars at the Garden Street Garage in Hoboken, New Jersey, trapped hundreds of its wards last week for several days. But it wasn't the technology car owners had to curse, it was the terms of a software license.

The garage is owned by the city; the software, by Robotic Parking of Clearwater, Florida.

In the course of a contract dispute, the city of Hoboken had police escort the Robotic employees from the premises just a few days before the contract between both parties was set to expire. What the city didn't understand or perhaps concern itself with, is that they sent the company packing with its manuals and the intellectual property rights to the software that made the giant robotic parking structure work.

The Hoboken garage is one of a handful of fully automated parking structures that make more efficient use of space by eliminating ramps and driving lanes, lifting and sliding automobiles into slots and shuffling them as needed. If the robot shuts down, there is no practical way to manually remove parked vehicles.

In the days that followed, both sides dragged each other into court. Robotic accused Hoboken of violating its copyright. "This case is about them using software without a license," said Dennis Clarke, chief operating officer of Robotic Parking, in a telephone interview last week.

At the same time, Hoboken accused Robotic of setting booby traps in the code, causing the garage to malfunction. Then Robotic accused Hoboken of endangering its business by allowing a competitor into the garage.

In the meantime, many of the garage's customers simply couldn't get their cars out.

According to Tom Jennemann, a staff writer who followed the story for the local Hudson Reporter, the distrust between the city and Robotic Parking goes back to the beginning of their relationship. "I think (the city) signed a bad contract," says Jennemann. This conflict began after the last software term ran out at the end of 2005, and the city began to license the software on a month-to-month basis. By the end of July it had no legal access to the software at all.

"It's more of a problem than people imagine," says Bill Coats, Partner at White & Case. More complex licensing schemes are becoming common, from term licenses like those offered by Robotic to "Self Help Features" that allow venders into their software after the sale, and "time bombs," where the term in the license is backed up by code in the program which simply stops it working after a certain date.

With ever more specialized software, companies and governments increasingly find themselves in situations they didn't anticipate. "More and more the (vendors) are realizing this gives them phenomenal leverage," said Coates.

Jonathan Band, a Washington policy consultant on intellectual property, thinks changing the law might help.

"I can see certainly some legislative solution ... (situations where) I need to hack into software on my own computer to make it work," he says. Especially in cases of vital infrastructure, like hospitals and power utilities, an overly restrictive license might not hold up in court.

But Case warns that any such legislation is likely to be circumvented in carefully written corporate contracts. He encourages the oldest market advice; buyer beware.

"Vendees are going to become more sophisticated in the deals they enter into." Case even sees this as a driver of open source software. "If you can get (open source software) you can't be shut down." But that's harder to do in highly custom applications.

When it's working, the robotic garage is a wonder. It allows twice the parking of a traditional ramp garage, says Robotic's Clarke. "If you back off and look at this, you are looking at elevator technology."

"Wonkavator" might be more apt. The lifts act independently of each other, and move in many directions, instead of just up and down. Every entry/exit station can accommodate 40 cars per hour, and every space is essentially a separate machine acting cooperatively. As the lot is used, it learns when particular cars tend to be picked up and dropped off and shuffles its load to optimize pickup time.

"It takes 30 seconds to get your car," says Clarke. But it's the software (that) is key to the smooth and safe operation of the facilities, according to Clarke. The software allows for remote administration of the lot as well.

After much public wrangling and court dates in Hoboken, the two acrimonious parties came to a settlement: the city would pay $5,500 a month for a three-year software license; Robotic would continue to provide technical support. And neither party would talk about the whole business anymore.

Coats, for one, doesn't think he'd like to have his car in that garage in three years.

Get more at WIRED

hoboken1_f.jpg
 
Hi Pierre

You've asked one question, and then told a story illustrating an entirely different kind of problem.

If you have produced original design and code, and have asserted your status as the copyright owner (point: how many people remember to actually put a simple copyright statement in their code documentation?) then I would say you are entitled to take reasonable steps to protect these rights. If locking access to the code achieves what you want then that would seem to me to be 'reasonable'. Whether a customer, or a court, would hold the same view is a different matter.

Of course you may be the plaintiff if you find someone has taken your original design, adapted it for their own purposes and are then passing it off as theirs. Or perhaps even worse, leaving your name and copyright statement in place with the implicit message to any subsequent user that what they have is genuine Pierre-code(TM).

Perhaps, rather than locking the code, you need to establish a licence agreement with your user(s). Your retain ownership at all times, they are simply allowed to make use of it. Hey, isn't that Rockwell, Siemens, AD, and all the others do with programming software? And out here in the real world there's a mass of individuals dedicated to breaking licence protection and doing illegal copying and use of the software.

I'm sorry, but I just don't know the answer to this. It does seem to be a uniquely software issue. We don't treat copyright on books in this manner. Of course people could produce illegal copies of "The Da Vinci Code" - the technology exists - but why doesn't it happen? Is it the distribution chains that are needed, or are there other factors? I suspect the cost of setting up a printing operation would require too much capital. Software piracy is just too cheap to perform, so it happens.

Back to the car-park software. The idea of building deliberate obsolescence in to a product, preventable by the customer paying a continuing maintenance fee, seems horrendous. If you were told this would happen for a hardware product you were purchasing I suspect you would reject it outright "Yes sir, this fridge is guaranteed good for 15 years, but every year after the first it will shut down unless you send us another cheque for $xx (insert ridiculous value)" And your response? Well, this is a family forum so I can't print it. Now, if it was phrased as "Yes sir, this fridge as it stands is guaranteed good for 15 years, but if you pay us an annual fee of $xx (insert ridiculous value) we will carry out all maintenance and upgrades, including new features we've not developed yet, including spare parts, so that in effect you always have a brand new fridge" you might view it slightly differently. You would probably still say 'no' but at least you could make a rational decision.

Regards

Ken
 
Building "Timebombs" into PLC programs is illegal in Germany and you would be prosecuted for the resulting costs if you tried it. I suspect that it might be directly or indirectly illegal in many other countries as well, so I'd be very careful before incorporating it in a program, in practice!
 
A pretty disgraceful story of what must be a disgraceful company, I'm sure any company learning of the 'time-bomb' story would not touch that particular software company with a barge pole.

If a company sells their software they don't always sell the rights, and often don't pass on the software, that's fair enough if they make that clear from the offset. To deliberately put code in that causes the equipment to no longer function after certain times is just not on.

I remember a story of one lot many years ago had a contract that mean't that one of their engineers had to attend site monthly. When the client company felt that the systemw as stable enough they finished the contract, a month later is all stopped. The engineer was resetting a counter monthly, once he stopped coming in the counter competed and stopped the plant.

Devious and dishonest I would call it.
 
First, I do not believe in time bombs and have not used them.

On the flip side, there are a lot of places where they do everything they can to rack up or invent a bunch of backcharges to reduce the amount they owe you and deliberatly hold your final payment.

I saw one manufacturing company manager dictate what the motor sizes would be there even when the design company told them that everything that he wanted was undersized. In the end when the sh** hit the fan, he blamed the design company and then they ended up with all of the backcharges and withheld payment. Eventually it was settled and the manager was fired.

I know of another company that has put a lot of small businesses out of business doing this. The only solution is to double the rates/qutoes knowing that they will do everything to screw you. They still trap small startup companies to this day.

I can see why some developers might me tempted to place timebombs with the intent of removing them once the project and payments are completed.

Again, I do not believe in them and do not do business with companies as described above but I can see where some companies might use them whether or not it is illegal or unethical.
 
Timebomb

I was requested by a previous employer to do just that, he came to me and requested i develop a "timebomb" like this.. He even wanted me to do this and give this to all the other System Integrators.. It would be simple.. If we dont get payment after a certain period the software must disable most of the program control..



It smelled fishy, i did some research and discovered if i had done this, the client could have taken me personally to court for sabotage.. Obviously I refused and lets say that where everything started becoming pear-shaped, I later left after being shunted into a corner..



It should be illegal, in the case where there are legal agreements for purchasing of a license, the people concerned know about this before hand, when it does expire and they don’t renew I say that they could have avoided that,



In the case where client does not know about the “timebomb” it is illegal and the programmer is held responsible for his software..



Rheinhardt
 
We make machines that can be purchased or rented by the hour. If a customer decides to rent by the hour then they purchase a code from us that they enter to charge the machine with x hours. 48 hours before all of the hours are used up the machine displays a notice that if they do not purchase more hours the machine will shut down. 48 hours later if they have not purchased more hours then the machine shuts down and can't be restarted until more hours are purchased and a new code entered... I've never thought of this as illegal or unethical.

Everyone here is talking about buying, purchasing, and selling a license to use software; what about leasing? From what the article says the software is essentially leased, not purchased... my opinion is whether this "time-bomb" was legal/ethical or not depends on if the city originally knew they were leasing the software and not purchasing the software.

I purchased my copy of DirectSoft from AD; that does not give me the right to sell copies of my copy, but it does give me the right to use the software indefinitely.
 
marksji said:
We make machines that can be purchased or rented by the hour. If a customer decides to rent by the hour then they purchase a code from us that they enter to charge the machine with x hours. 48 hours before all of the hours are used up the machine displays a notice that if they do not purchase more hours the machine will shut down. 48 hours later if they have not purchased more hours then the machine shuts down and can't be restarted until more hours are purchased and a new code entered... I've never thought of this as illegal or unethical.

Everyone here is talking about buying, purchasing, and selling a license to use software; what about leasing? From what the article says the software is essentially leased, not purchased... my opinion is whether this "time-bomb" was legal/ethical or not depends on if the city originally knew they were leasing the software and not purchasing the software.

I purchased my copy of DirectSoft from AD; that does not give me the right to sell copies of my copy, but it does give me the right to use the software indefinitely.


I don't believe what you're talking about can be termed a timebomb, your customer is accepting the terms you have given as a rental fee. The timebomb is where the customer does not know.

In the case of the car park, they paid someone to develope and install something, which the designers built in a ransom to ensure they always have to be the maintenance company.
 
PeterW said:
I don't believe what you're talking about can be termed a timebomb, your customer is accepting the terms you have given as a rental fee. The timebomb is where the customer does not know.

In the case of the car park, they paid someone to develope and install something, which the designers built in a ransom to ensure they always have to be the maintenance company.

I guess I'm looking at it from the viewpoint of I have no idea what the original agreement was, were they paid to develop and install the hardware and then lease the software and maintenance or did they sell their software and source or did they sell a license to use the software? The article does not mention any of this.
 
Everyone here is talking about buying, purchasing, and selling a license to use software; what about leasing? From what the article says the software is essentially leased, not purchased... my opinion is whether this "time-bomb" was legal/ethical or not depends on if the city originally knew they were leasing the software and not purchasing the software.

I must agree with PeterW as in my previous post, its all about informing the your cliets as to what exactly they are getting from you for what price..

As for the car park.
In the course of a contract dispute, the city of Hoboken had police escort the Robotic employees from the premises just a few days before the contract between both parties was set to expire. What the city didn't understand or perhaps concern itself with, is that they sent the company packing with its manuals and the intellectual property rights to the software that made the giant robotic parking structure work.

It sdoes not sound if there wasever a pre-defined license agreement but only a maintenance agreement of some sort..

Rheinhardt
 
What's missing in this whole disscuession is; What exactly are the contract terms? On the face of it it seems the vendor may have a contract that allows the code to expire, (or stop functioning), if a licence agreement is not paid, or is not renewed (hence the agreement to pay $5k per month for the next three years).

If this is the case, from my perspective, I would think that the vendor has unintentionally caused severe damage to their reputation. Typically when we enter a licensing agreement, it would be based on a % of the value of the production, (or in this case parking revenues). However we typically leave the dispute resolution (arm twisting) up to the lawyers and not timebombs in the software code, as it gives the impression that you have a defective product, and the courts are very likley to view these actions in a negitive light.

If the product is working properly, and your not getting paid as per the contract terms, you are most likely to prevail in litigation. If the product is not working properly, the onus of the litigation will be on you to demonstrate and justify why, making your case more complex.

In short licensing agreements are ok so long as they are not too complex. Time bombs wont protect you, and will likely cause more harm to you in the long run. If you do install a time bomb, it should be clearly documented in the contract that it's there, and there should be a clear indication on the equipment that shows when it's active.
 
To the original question "should i protect my code ?", I say "maybe".
If your software contains knowhow that is non-trivial, and it is possible that competitors would want to get that knowhow, then yes.
Or if the system that is being controlled could be damaged or otherwise shutdown if a "beginner" would start to fumble wit it, then yes.
Otherwise not.

The "normal" is that the supplier is the owner of the software. The customer has the right to use it at the location stipulated in the contract.
The customer does not have access to the programs involved. The customer normally does not have the ability to understand the software so it would be no use to him anyway. If the system is working and properly debugged, it will continue to work with no need to go online. Software does not get worn out or must be maintained as mechanics must.
On the other hand, there must be sufficient troubleshooting and testing built into the software to allow a "normal" tech to service the system.
The customer must sign a take-over document stating that he is now the owner of the equipment and he may use it. This document is normally signed after a succesful completion of a functional test. It is possible that there are still issues to be worked out, but if they are not serious it does not stop the document from being signed. Any pending issues, including software issues, will be noted in the take-over document, and the supplier must then sort them out within an aggreed period of time.
A guarantee period is normally aggreed in the contract, and it typically starts when the take-over document is signed. Software bugs that are uncovered after the take-over but before expiration of the guarantee must be corrected.
After the termination of the guarantee period, there are no more obligations of the supplier to the customer. Most suppliers do however consider a good relation to existing customers to be very important. A supplier that has lost his good name in the market is doomed.
All of this means that a typical customer does NOT need access to the software.

The above is just one variant of many possible for how the relation between a supplier and his customer. To my opinion, if the contract is like stated above, and both supplier and customer handles the project professionally, then it cannot go completely wrong.

I have seen a number of cases when the public is the customer, that the contract has been constructed in a most unfortunate way, for the customer that is not the supplier. I guess that the people negotiating contracts for the public are not so professional as they could be.
Still, the automation company that made the parkhouse should be most careful not to destroy their reputation in the market.

In the example with the parking house, a 3rd party (people that had parked their cars in the park house) was held hostage. This cannot be acceptable even if the automation supplier had a strong contract with the city of Hoboken. The city of Hoboken obviously could not wait for things being settled in court and was thus put under an unacceptable pressure.
If the system as a minimum would have allowed people to get their cars out of the parkhouse then the case could have ended differently.
We cannot know what the settlemen ended with, but I would guess that it must have been closest to the citys demands. This because of two things: It cannot be OK to involve 3rd parties. And, even if the automation company did win the case, it would have ended their business - noone would ever sign a contract with the automation company if it could end with them being in the same situation as the city of Hoboken was.
 

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