In general; intangible nature of assets

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In general; intangible nature of assets

The common law frequently limits the definition of property to tangible items. In the computer environment, this limitation is significant. The most insistent problem in computer crime prosecutions, pursuant to common law, is the fact that the computer era created a number of intangible forms of property of great value to society, which often are not adequately protected by traditional legal concepts.

The value of a computer system is comprised mostly of intangibles, in particular, data and programs. A computer's operation consists mainly of changes in electrical charges. These electrical charges are not, traditionally, considered tangible. Therefore, there was a genuine concern that computerized data did not fall within the traditional concepts of property. The common law does not, as a rule, protect intangible property from theft or against damage. Therefore, if information was stolen without the physical taking of anything, there was no taking sufficient to constitute theft.

Furthermore, it is not at all certain that electric impulses on a computer medium are real or personal property, or that a change in the impulses is damage to the medium itself. Consequently, as a result of such concerns, there are provisions in virtually all computer crime laws that define property much more broadly, including intangible data, software, and information.

A typically broad definition of "property" is found in the Alaska law: 'Property' means an article, substance, or thing of value, including money, tangible and intangible personal property, including data or information stored in a computer program, system or network"FN22 The definitions in computer crime laws relate to three types of property: hardware, software, and services.