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A bill introduced Sept. 18 would make clear that consumers actually owned the electronic devices, and any accompanying software on that device, that they purchased, according to sponsor Rep. Blake Farenthold's (R-Texas). The You Own Devices Act (H.R. 5586) would amend the Copyright Act “to provide that the first sale doctrine applies to any computer program that enables a machine or other product to operate.” The bill, which is unlikely to receive attention during Congress's lame-duck legislative session, was well-received by consumer's rights groups.

Section 109(a) of the Copyright Act, 17 U.S.C. §109(a), serves as the foundation for the first sale doctrine. H.R. 5586 would amend Section 109(a) by adding a provision covering “transfer of computer programs.” That provision would state:if a computer program enables any part of a machine or other product to operate, the owner of the machine or other product is entitled to transfer an authorized copy of the computer pro gram, or the right to obtain such copy, when the owner sells, leases, or otherwise transfers the machine or other product to another person. The right to transfer provided under this subsection may not be waived by any agreement.

‘Things' Versus SoftwareFarenthold had expressed concern during a Sept. 17 hearing on Section 1201 of the Digital Millennium Copyright Act over what he perceived was a muddling between patents and copyrights when it comes to consumer products. “Traditionally patent law has protected things and copyright law has protected artistic-type works,” he said. “But now more and more things have software in them and you are licensing that software when you purchase a thing.” Farenthold asked the witnesses if there was a way to draw a distinction in copyright “between software that is an integral part of a thing as opposed to an add-on app that you would put on your telephone.”

(Reuters) - IBM Corp has been sued by a shareholder who accused it of concealing how its ties to what became a major U.S. spying scandal reduced business in China and ultimately caused its market value to plunge more than $12 billion. IBM lobbied Congress hard to pass a law letting it share personal data of customers in China and elsewhere with the U.S. National Security Agency, in a bid to protect its intellectual property rights, according to a complaint filed in the U.S. District Court in Manhattan.The plaintiff in the complaint, Louisiana Sheriffs' Pension & Relief Fund, said this threatened IBM hardware sales in China, particularly given a program known as Prism that let the NSA spy on that country through technology companies such as IBM.

The Baton Rouge pension fund said the revelation of Prism and related disclosures by former NSA contractor Edward Snowden caused Chinese businesses and China's government to abruptly cut ties with the world's largest technology services provider.It said this led IBM on October 16 to post disappointing third-quarter results, including drops in China of 22 percent in sales and 40 percent in hardware sales.While quarterly profit rose 6 percent, revenue dropped 4 percent and fell well below analyst forecasts.IBM shares fell 6.4 percent on October 17, wiping out $12.9 billion of the Armonk, New York-based company's market value.The lawsuit names IBM, Chief Executive Virginia Rometty and Chief Financial Officer Mark Loughridge as defendants, and says they should be held liable for the company's failure to reveal the risks of its lobbying and its NSA ties sooner.

The case is Louisiana Sheriffs' Pension & Relief Fund v. International Business Machines Corp et al, U.S. District Court, Southern District of New York, No. 13-08818.