Monday, February 27, 2012

Entitlement for copyright owners

Business Insider had an article today about Reddit's FIA. In my article in the Urban Times last week I addressed some of these issues before he wrote this article. However, he raises points that I don't mention there and I feel that it's extremely important to discuss them.

First he says that the law would make the internet "Hugely Difficult to monitor." This raises a few questions. What does he mean by the internet? I helped define that in FIA, which I defined it as any data network including the web, social networks, FTP, peer to peer, email and a slew of other things. If he means this; then do we want the web to be easy to monitor? He trots out the case against it as child pornography of course, which I addressed in my Urban Times article. It's a powerful argument because it hits upon two competing sets of social norms, rights of privacy and abhorrence to child abuse.

The use of child porn is a technique that is designed to end the conversation and shut down dissent. It places supporters of privacy in a position that is not congruent with their belief system. Additionally, the connection between copyright and child porn mixes different issues and seriously different belief systems. This difference is extremely important as there have become two different competing sets of norms. The incumbent belief that copyright is stealing, and the one new that has been developed by Web Kids.I strongly suggest reading the previous link as it provides powerful arguments for the changing sets of norms that my generation and younger entail. (I'd be on the rather old side of that generation).

Using a somewhat bad analogy, we're using the "internet superhighway" and like the real highway people don't want everyone driving by to know what you have in your car. Even if you aren't doing anything illegal, do you want the cops to know that you have 5 cases of beer in the back and are going to be floating down a river all day? Probably not, cause they have no reason to know what you're doing. Now, our data is similar to those cases of beer. Using encryption puts that into the back of the trunk where a cop is required to have justifiable cause (in the US) to inspect it's contents. The person looking at the data would know the general direction your going and some of the ways you're getting there, but nothing more. Yes, it makes it more difficult to identify bad stuff, but it's difficult to do that on a real highway too. Just ask boarder patrol, and they have the right to inspect whatever they want.

Second, he essentially argues that copyright owners should have their content monitored by others. This is a huge subsidy for the copyright industry that will be paid for by other services. I'm going to use a physical world comparison, it doesn't work perfectly but it works reasonably well. Let's say that YouTube is similar to a Wal-Mart, or even Amazon.com. The author is arguing that YouTube needs to monitor as soon as the video is put on the web to ensure it is not infringing on copyrighted material. This would be similar to requiring Wal-Mart or Amazon.com to search for patent infringing technologies.

Why does this analogy work? In both cases these rights are state sanctioned monopolies. In both cases they are protecting a manifestation of an idea. Something that needs protection because it is extremely easy to protect. However, in Patent suits things are extremely different. The owners of the patent are required to sue companies that infringe on the patent. Wal-Mart and Amazon.com are both protected from the suit.

If Apple was allowed to sue Wal-Mart for the fact that an infringing technology is being sold there, Wal-Mart would have to bear the cost of policing their inventories for infringing material. In addition it would be in their benefit to be overly caution and remove potentially infringing products before anyone can see them. Part of the cost of owning a patent is the cost of policing products that may be infringing. By removing that burden from the copyright industry we are reducing the cost of the ownership of copyright and placing it on services like YouTube. This stifles innovation in services like YouTube because they have to include the extra cost of policy copyrighted material. A competitor to YouTube has a huge hurdle to overcome before they can even open.

Finally, he argues that the bill supports file sharing. I don't think that it does other than being based off of a different set of norms. I'd argue that the bill supports innovation over old business models. You can disagree with me on this, however it's been shown in several studies and some anecdotal evidence that increasing legal access to copyrighted content reduces pirating. If it is easier for a company to create interesting ways to provide access to content while paying the copyright industry then everyone wins. However, as Falkvinge puts it, "I don't care about industry profits." Realistically, I don't care about most companies profits, because I'm only dealing with the company to buy a product or service I want at a price that I believe is reasonable. If all the legal sources that are available to me to watch a show or listen to a song when a person wants to, it is not unreasonable for them to look for it elsewhere and then try to find it legally later if they liked it.

If the company is making bad choices for their business, why should the law change to improve their business model's chances of surviving? Anyone that supports free market capitalism should be horrified by this sort of industrial policy making. Essentially, these companies are being faced with disruptive technologies and working to push the government to protect them. It's similar to what has happened with the auto industry in the US.

In closing, FIA represents a dramatic change from the current norms and aligns more directly with a younger generation. This generation does not understand why companies prevent them from viewing content that they want to see. While being an open generation on Facebook, they also understand the importance of protecting the data that has been given to companies. They choose what information they share and with whom. They want an open internet so they have the ability to innovate like their parents generation. They believe that it should be a fundamental human right to have access to data and communicate with whoever they want. An industry that is not innovating should not have the ability to destroy the internet.

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