Chapter 13: Exploiting Legal Loopholes

After deciding to enter the video game industry, Ethan had spent the past two months researching at the city library, so he understood what Barbara meant by the fifty-six years.

According to the American Copyright Act of 1909, copyright protection lasts for twenty-eight years from the creation of a work, with an option to extend for an additional term, totaling fifty-six years.

In other words, no matter how popular a work becomes, its author can only enjoy the benefits of the work for fifty-six years from its creation. After this period, the work enters the public domain and can be freely used by anyone.

This fact is undeniably harsh.

It could mean that even if an author is still alive, others might already be profiting from their work.

Ethan was puzzled by such a legal stipulation.

In his memory, copyright laws were supposed to grant protection for seventy years after the author's death. He had thought that the American copyright laws had been revised at some point, but now...

It seemed that time was drawing near?

"Barbara, do you mean the Copyright Act of 1909 will soon be revised?" Evelyn, not one to miss a detail, asked the same question Ethan had in mind.

"Yes, the copyright laws are about to be amended! You heard me correctly—I said soon!"

Barbara leaned back, resting her hands on the armrests of the sofa.

The soft cushion caused her eyes to narrow in satisfaction, and her voice carried a note of pleasure.

"Darlings! From what I've gathered, there's a company that relies on copyrights and is on the verge of collapse."

"If the current copyright laws remain in place, their golden goose will turn into public domain in a few years. So, several years ago, they began lobbying both political parties, desperately needing to push for an amendment to the copyright laws. They're willing to spend substantial amounts of money to achieve this."

"My colleagues, my mentors, and I all believe this company will succeed because it holds extraordinary significance for America…"

At this point, Ethan couldn't help but laugh.

"Barbara, it's Disney, isn't it? Mickey Mouse?" he asked candidly.

"Hmm? Yes, Walt Disney!" Barbara's response made her smile as well.

Her eyebrows arched playfully, and she appeared delightfully amused. "Their Mickey Mouse is set to expire in 1984! So all you need to do is wait a bit, and you'll be able to enjoy the benefits of the new laws!"

"Why?"

Evelyn was confused and asked, "Barbara, if we register our copyright now, won't we also benefit from the new laws once they're enacted?"

"No, that's not the case."

Before Barbara could respond, Ethan, recalling his past life, interjected, "Evelyn, I understand what Barbara means. Capitalists are inherently greedy, and no one knows what kind of lobbying tactics they'll employ, nor if they'll harm others while securing their own interests."

"For instance, is Mickey Mouse currently under personal or corporate copyright? Disney could potentially lobby to differentiate between personal and corporate copyright terms! Personal for one term, corporate for another."

"Barbara's point is simple: if we register our copyright now, we're gambling with greenbacks against the capitalists. We can wait for the new law to be enacted and then register under the most favorable terms. If the personal terms are more advantageous, we'll register under personal terms; otherwise, we'll establish a company."

That's right! Ethan suddenly remembered! In a previous version of the American copyright law, there were different treatments for the nature of copyright holders!

Though he didn't know the specifics, Disney's name confirmed it all!

Walt Disney passed away in 1966, so if the copyright lasted for seventy years after the author's death, Mickey's expiration should be in 2036. Yet, before Ethan's time travel, he had heard that Mickey's copyright was about to expire and Disney was lobbying Congress to amend the law. The time discrepancy indicated there must be an issue!

Without Barbara's reminder, he might not have noticed this point, and it would have been irrelevant.

But since Barbara mentioned it...

In America, if you don't follow the copyright moguls, aren't you being naive?

With that thought, Ethan paused.

He exchanged glances with Evelyn, who showed surprise in her eyes.

Smiling, he said, "Evelyn, in this country, if you don't maximize your own benefits, you'll never be able to engage in the business game."

"Who wants to do business?" Evelyn, now understanding, muttered in discontent.

"Even if you're not in business, you need to understand this because the same principle applies elsewhere."

Ethan smiled and said, "In America, whatever you do, the first thing you need to do is find every possible way to protect your own interests."

"Even if you want to change the world, you must first make yourself strong."

"Okay! Okay! I was immature just now, alright?" Evelyn, not wanting to argue further, conceded.

Barbara, observing the exchange, folded her arms with approval. "Ethan Jones, right? Are you interested in law? If so, you could come to Stanford this year."

She waved her hand. "Although Stanford's fall admissions closed in March for most people, that's not the case for you. You could choose any major for four years and then come directly to the law school."

"To be honest, I think your philosophy is excellent! Many people believe that passing the bar exam will save the world! But they don't realize that only by improving themselves first can they change everything!"

"I genuinely believe that if you become a lawyer, your future will be very bright."

The sudden offer caused Evelyn to widen her eyes in reflex.

The girl knew this was an opportunity.

Ethan, however, politely declined the invitation.

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

"Right now, I just want to know how to protect myself legally without registering the copyright."

"I'm confident that since you advised us against registering the copyright and mentioned the drawbacks of the expedited service, there must be other ways to circumvent all this."

"Is that so?"

Ethan smiled gracefully.

"Indeed, you have a gift, though it is a pity."

Barbara, unperturbed, nodded with a smile. "Since you've grasped my point, I'll be straightforward. There are indeed loopholes in the current law. For instance, electronic arcade machines can be left unregistered for copyright…"

Under Barbara's guidance, Ethan swiftly understood how to legally protect himself while exploiting legal loopholes.

The solution was to patent the arcade game "Snake."

At first glance, "Snake" appeared to lack patentable elements; its content was merely a compilation of existing technologies, and a formal review would likely result in a rejection by the patent office.

However, the American patent application process includes two types: formal and provisional.

The former requires a series of documents, including formal claims, affidavits or declarations, IDS (Information Disclosure Statement), and the specification of inventors, with no modifications allowed post-submission. The latter, a provisional application, requires no documents other than a filing with the patent office, valid for one year.

Though a provisional application does not issue a patent certificate, it is not crucial for Ethan's purpose. He only needed legal protection until the new copyright law was enacted. Once the patent office stamped it, any infringement on "Snake" would be subject to legal repercussions!

Unlike the expedited services of the copyright office, which can only be applied for after an infringement occurs—leaving the victim without evidence to sue—the provisional patent application allowed for legal action as soon as infringement occurred. Even if the court ruled it a copyright rather than a patent infringement, the preliminary claim phase would be bypassed.

Once the court accepted the infringement case, they could seek an injunction against the defendant!

If Miravida had done this, Atari would surely not have flourished!

If the court had ordered the defendant to cease selling the game machine, Nolan Bushnell would have made no money at all!

Ethan greatly admired this strategy.

Using fallback legal clauses to protect one's interests? That's truly masterful!

Yet, at the same time, Ethan had a new question.

He looked at Barbara with confusion and asked, "Barbara, if that's the case, something seems off. I remember Miravida patented their home console Odyssey—why couldn't they sue in the same way?"

As soon as he spoke, Ethan felt something was amiss.

After a brief moment of thought, he exclaimed, "Oh! Fxxk!!! Nolan Bushnell's work was arcade machines!!!"

"Yes~~~"

Barbara's reaction made her clap with delight. "Miravida's patent was for home consoles, while Atari's was for electronic arcade machines. The two products are different. How could Miravida use their home console patent to sue for electronic arcade machines?"

"And your situation is different now. Most businesses believe that home consoles are a losing product, so if someone wants to copy your work, it would be in arcade machines. Once you detect infringement, you can directly sue them."

The magic of this legal maneuver truly opened Ethan's eyes!

Though he had known that making a fortune was never simple, now…

He felt that describing this as simple was inadequate!

The fifty-minute discussion was immensely enlightening. As the time drew near, Ethan expressed his gratitude warmly when bidding farewell to Barbara.

After thanking her repeatedly, he watched her leave from the office door.

As he observed her brisk walk to class, Ethan wondered, "Barbara, do you offer defense services?"

"Certainly," Evelyn, standing beside him, nodded with a smile.

"How are the fees structured?"

"I asked this before. Before coming to the school, her consultation fee was fifty dollars per hour. Since joining the school, she only answers questions from students, faculty, and friends."

Ethan was struck by this pricing, "This is the real advantage of attending university, isn't it?"

"So, do you regret it?" Evelyn, still hopeful, asked. "It's not too late to change your mind. You can catch up now."

"Regret? Are you kidding?" Ethan glanced at Evelyn and declared, "I, Ethan Jones, am resolute! I am not the kind to regret!"

"Even if I hadn't met Barbara, I could find someone else!"

"After all, the Earth keeps spinning regardless of who is on it!"

"Is that so?" Evelyn's playful smile appeared. "Does this mean you won't seek my help in the future?"

She stretched with a yawn, "Ah, this is great! Finally, no one will bother me!"

"?" Ethan was bewildered.

"!" He stared at Evelyn in astonishment.

"I was wrong, sis!" He knelt faster than a Gallic rooster.