Define a Software Copyright
- A copyright holder has a legal monopoly on five basic rights with respect to his work: reproduction, distribution, adaptation, public performance and public display. This means that, without the copyright holder's permission, no one else may copy the algorithm. No one may distribute it (even free of charge) and no one may adapt it for use in another algorithm without the copyright holder's permission as well. A copyright protects only the algorithm, not the system that executes it, although software patents are available for such systems. It is sometimes difficult to draw a clear legal distinction between an algorithm and an executing system with respect to a particular item of software.
- The U.S. Copyright Office offers registration of copyrights. Although you don't have to register your algorithm to qualify for protection, registration grants you additional rights. As of 2011, register your copyright online for a fee of $35; register it by surface mail for $50. Even if you register online, you may have to submit a copy of your algorithm by surface mail.
- If you sue an infringer in state court, you will have to prove the amount of your damages before you can recover a judgment. This can be difficult and time-consuming if, for example, you have to prove how much money you lost due to the infringer's competition. If you register your software with the U.S. Copyright Office before someone else infringes it, you may obtain statutory damages. Even if you wait until after infringement to register, registration will allow you to sue in federal court. Registration makes it easier to prove that you created the algorithm before the infringer did. It also helps you prove that the infringement was not "innocent" because registration results in public notice of your copyright.
- A court may award compensatory damages, calculated as either the amount of money that you lost due to the infringement or the amount the infringer gained. Federal courts can award statutory damages of up to $150,000 per infringing act with no need to prove damages. A court can also issue an injunction forbidding the infringer from committing further infringements. Violation of an injunction can lead to criminal penalties. Otherwise, you cannot unilaterally press criminal infringement charges, although a prosecutor may initiate a prosecution in response to your complaint.