Chapter 13: Exploiting Legal Loopholes

After deciding to venture into the electronic gaming industry, Ethan spent the past two months since his arrival in the city researching at the library. This way, he understood what Barbara, the lawyer, meant by the significance of the fifty-six years mentioned.

According to the 1909 Copyright Act in America, the protection period for copyright holders was set at twenty-eight years from the date of creation, with an option to extend it once, making it fifty-six years in total.

In other words, regardless of how popular a work becomes, its creator can only enjoy the profits for fifty-six years from the date of its inception. After this period, the work becomes public domain, open for anyone to use.

This reality was quite harsh because there could be a situation where the author is still alive, but others are already exploiting their work.

Ethan found this legal provision confusing because, in his memory, the copyright protection law stated that it extended for seventy years after the author's death. Back then, he thought America's copyright protection law changed at some point, but now...

That moment seemed to be just around the corner?

"Barbara, are you suggesting that the 1909 Copyright Act will be amended soon?" Evelyn, not being naive, directly asked the question echoing Ethan's thoughts.

"Yeah~ The Copyright Act is about to change! You heard me right, I said soon!"

Barbara leaned back, her hands resting on the sofa's armrest. The soft sensation made her instinctively squint, even her voice carried a hint of pleasure.

"Darlings! From the information I've gathered, a company that thrives on copyrights is about to collapse. Because if they follow the current copyright protection law, a few years later, their cash cow will turn into public domain. So, several years ago, they dispatched lobbyists to approach both political parties, willing to invest a considerable amount of money to push for changes in copyright protection laws."

"For this matter, I, my colleagues, and my teachers all believe this company will succeed because it holds extraordinary significance for America."

Upon hearing this, Ethan burst into laughter.

"Barbara, is it Disney? Mickey?" He asked straightforwardly.

"Hmm? Exactly! Walt Disney!" Ethan's words made Barbara laugh too.

Her slender eyebrows raised, making her appear incredibly amusing. "Their Mickey is about to expire in '84! So, all you need to do is wait a bit, and you'll perfectly enjoy the convenience brought by the new legal provisions!"

"Why?"

Evelyn couldn't comprehend and said, "Barbara, if we register copyright now, shouldn't we still be able to enjoy the new legal protection after it takes effect?"

"No, that's not how it works."

Before Barbara could respond, Ethan, with memories from his past life, interjected, "Evelyn, I understand what Barbara means. Capitalists are greedy, and no one knows how they will lobby or if they will harm others while securing themselves."

"For example, when lobbying for Disney, they could easily add a distinction between copyrights under an individual's name and those under a legal entity! Different durations for natural persons and legal entities."

"Barbara's point is simple: by registering copyright now, we're gambling with our Franklin Greens against the capitalists, as we can wait for the new laws and choose the most suitable provision for ourselves. If the provision for natural persons is better, we can apply as individuals; otherwise, we can establish a company."

Exactly! Ethan suddenly remembered! In some version of the American Copyright Act from his past life, there were different treatments for the nature of copyright holders!

He didn't know the specific provisions because he wasn't a legal expert, but the name Disney could prove everything!

Walt Disney died in 1966, and if we followed the convention of seventy years after the author's death, Mickey's expiration date should be 2036. However, before Ethan's transmigration, he had heard that Mickey's copyright was about to expire, and Disney was lobbying Congress to amend copyright laws. Since there was a time gap, there must be a problem!

Without Barbara's lawyerly reminder, he might not have paid attention to this point or cared.

But since Barbara mentioned it...

In this land of the free, if one doesn't follow the copyright maniacs regarding copyright protection, wouldn't that be foolish?

Thinking to this point, Ethan paused.

He locked eyes with the girl, seeing surprise in her eyes.

So he smiled and said, "Evelyn, in this country, if you don't focus on maximizing your interests, you'll never be able to participate in the business game."

"Who wants to do business?" Understanding Evelyn muttered in dissatisfaction.

"Even if you don't do business, you need to understand because it's the same for other things."

Ethan smiled and said, "In America, whatever you do, the first thing you need to do is find ways to protect your interests by any means necessary."

"Even if you want to change the world, you need to be strong first."

"Okay! Okay! I was naive just now, okay?" Evelyn didn't want to argue and conceded voluntarily.

Barbara, who witnessed everything, embraced herself, showing appreciation. "Ethan Jones, right? Are you interested in law? If you are, you can come to Stanford this year."

She waved her hand, saying, "Although Stanford's fall applications ended in March for ordinary folks, you can casually choose a major for four years, and after that, directly come to the law school..."

"Honestly! I think your philosophy is excellent! Many folks think passing the bar exam can save the world! But they don't realize that only by improving themselves can they change everything!"

"Anyway, I feel that if you become a lawyer, the future will be bright for you."

The sudden olive branch made Evelyn subconsciously widen her eyes.

The girl knew it was an opportunity.

While Ethan politely declined the invitation.

"Oh, Barbara, thank you very much for your recognition. If needed, I will definitely come to you."

"Now, I just want to know, without registering copyright, how to legally protect ourselves."

"I believe, since you advised us not to register copyright and pointed out the drawbacks of that damned expedited service, there must be other ways to bypass all of this, right?"

Ethan smiled.

His demeanor was extremely gentlemanly.

"You do have talent, but it's a pity."

Barbara nodded with a smile, "Since you've grasped my meaning, I'll be direct. The current laws do have loopholes, especially for things like arcade games, which can be operated without copyright registration."

Under Ms. Barbara's guidance, Ethan quickly understood how to exploit legal loopholes while protecting himself. The key was to patent the arcade game "Snake."

At first glance, "Snake" didn't seem patent-worthy; its content was pieced together using existing technologies. If formally reviewed, the patent office would likely reject it.

However, the American patent application process had two channels: formal and provisional. The former required a series of documents, such as formal claims, oaths or declarations, Information Disclosure Statements (IDS), and specified inventors. After submission, no modifications to the patent content were allowed. On the other hand, the provisional application required no documents; the applicant only needed to file a record with the patent office, and it was valid for one year.

Even though a provisional application didn't result in a patent certificate, it didn't matter to Ethan. All he needed was legal protection before the new copyright protection law came into effect. Once the patent office stamped their approval, anyone daring to copy the game would face legal consequences.

The difference between the provisional application at the patent office and the expedited service at the copyright office was significant. The latter could only be applied for after an infringement occurred, and during the copyright confirmation process, the victim had no evidence to sue anyone.

In contrast, the provisional application at the patent office allowed lawyers to confront the plagiarizer as soon as an infringement occurred. Even if the court ultimately ruled it as a copyright infringement rather than a patent infringement, they had already skipped the waiting stage.

When the court ordered the defendant to stop selling game consoles, if Milowa had done that at the time, Atari wouldn't have flourished!

Once the court issued an order to stop the infringement, Nolan Bushnell wouldn't have made a dime! Ethan admired this approach.

Protecting one's interests with the safety net of legal clauses? That was some wizardry!

However, at the same time, Ethan encountered a new problem.

He looked at Barbara in confusion and said, "Barbara, if what you're saying is true, then something's not right. I remember Milowa registered a patent for their home console Odyssey. Why couldn't they sue using that?"

As soon as the words left his mouth, Ethan felt something was off. After thinking for two seconds, he shouted, "Oh! Fxxk!!! Nolan Bushnell made arcade games!"

"Yeah~~~"

Barbara applauded Ethan's reaction, happily saying, "Milowa's patent is for a home console, while Atari produces electronic arcade games. The two products are different. How can Milowa use a patent for a home console to sue over electronic arcade games?"

"And in your case, the situation is different. Currently, most businesses believe that home consoles are unprofitable products. So, if someone wants to copy you, they can only copy in the electronic arcade game sector. By then, if you discover infringement, you can directly sue them."

This legal maneuver truly opened Ethan's eyes!

Although he had known that making big money wasn't easy, this situation was beyond simple!

He felt that this couldn't be described with just a single word!

The fifty-minute conversation was incredibly enlightening for him. When it was time to say goodbye to Barbara, Ethan did so with great enthusiasm.

After multiple expressions of gratitude, he watched her leave from the office door.

Observing her hurry to class, Ethan had a question, "Does Professor Barbara handle defense cases?"

"Of course," Evelyn, standing next to him, nodded with a smile.

"How does she charge?"

"I asked this before. Before coming to the school, her hourly consultation fee was fifty dollars. After coming to the school, she only answers questions for school staff, students, and friends."

This fee structure made Ethan somewhat nostalgic. "This is the real benefit of going to college, right?"

"So, do you regret it?" Evelyn wanted to give it another try. "If you regret it, it's not too late. You can catch up now."

"Regret? Are you kidding?"

Ethan glanced at Evelyn and said, "I, Ethan Jones, am resolute! I'm not the kind of person who regrets!"

"Even if I didn't meet Professor Barbara today, I could have found someone else!"

"Remember, with or without someone on Earth, it still spins!"

"Is that so?" Ethan's tough words made Evelyn show a playful smile. "Does this mean you won't ask for my help in the future?"

At this point, she stretched lazily, "Oh, this is really a good thing! Finally, no one will bother me!"

"?" Ethan was dumbfounded.

"!" After giving Ethan a glance, she teased, "I was wrong, brother!" He knelt faster than a Gallic rooster.