assign 10c and 10d

TOPICS: Copyright, Distribution Channels, Legal Environment, Technology

SUMMARY: Three-dimensional printers represent a threat to many businesses that thought they were immune from competition caused by disruptive technology. 3-D printers represent a threat because companies do not control manufacturing and production. Designers create digital patterns and templates used on printers to make many different kinds of objects. The issues of distribution, piracy and copyright are similar to those experienced in the music and entertainment businesses. The cost to replicate an object using a 3-D printer can be significantly different than the price you pay for auto parts, a coffee cup or a toy in a traditional retail outlet. Companies that manufacture products understand the threat, but aren't sure how to respond or develop strategies that walk the tightrope between control and alienating users. The issue is becoming more important because patterns and printing are cheaper and more accessible. The legal environment involves some uncertainty. Is the designer, the person who wrote the code or the individual who operated the printer the target of possible legal challenges? Action against 3-D printing currently follows guidelines from the Digital millennium Copyright Act. Websites that host content infringing copyright have to remove it when the rightful owners notify them. One company, Shapeways, prints 3-D orders for hobbyists and merchants. The company responds to takedown notices and asks users if they are the rightful copyright owner when they uploaded design. Companies manufacturing physical products may not have anticipated competition from 3-D printers, they need to understand the threats and consider strategies to meet the threat.

CLASSROOM APPLICATION: As the costs of 3-D printers decline and more users began adopting the technology to print objects ranging from auto parts to toys, companies need to consider how they will protect their intellectual property. Distribution channels in many different industries were affected by changes in technology in recent years. The music business was changed significantly when listeners started downloading digital music instead of buying CDs. More recently downloads decreased as listeners used streaming services. The pay-tv industry was also disrupted because cord cutters can find their shows via alternative distribution channels. Manufacturing companies use technology to gain efficiencies in production, but losing control of distribution because of 3-D printing presents a more significant threat. Intellectual property laws and copyright often don't protect industries when technology offers alternative distribution channels. There isn't an online outlet like YouTube or iTunes to distribute 3-D designs and files. It is more difficult to trace and confirm infringement with 3-D files as compared to movies and music. Manufacturing companies should prepare business models and strategies to address the changes from 3-D printing technology.

QUESTIONS:  1. Do a web search and give a brief explanation of how 3-D printing works.Q 2-4 below. 2. Think back to our Discussion Forum topic in Week 5 about Disney Movie Studios and their desire to create a franchise of goods and services around the movie “Frozen”. How could this 3-D printer issue effect this Franchise business model?

3. What are some of the legal issues involved with 3-D printing? 4. Discuss the Shapeways business model and tell us how the company responds to intellectual property and copyright concerns from companies. End