Published on 18 Mar 2015
AIDS has killed more than 36 million people worldwide. There are drugs available to treat AIDS, but the price of one pill is incredibly high in the U.S. — coming in at 25 times higher than its cost. Why is that? In this video, we show how patent rights have created a monopoly in the U.S. market for AIDS medication, causing pills to be very expensive. In other countries, however, such as India, which does not recognize patents on AIDS medication, prices remain low. Using this example, we go over how monopolies use market power to increase prices.
December 2, 2015
Maximizing Profit under Monopoly
What did the ministry officials tell new minister Mélanie Joly about copyright?
Michael Geist commends the federal government for transparency when they published the briefing information provided to new Heritage minister Mélanie Joly, but points out that the information isn’t complete:
Last week, Canadian Heritage posted the Ministerial briefing book that officials used to bring new minister Mélanie Joly up-to-speed on the issues in her portfolio. The proactive release is a great step toward further transparency. While the mandate letter from the Prime Minister provides insight into government policy priorities, the briefing book sheds light on what department officials view as priorities and how they frame key issues.
The copyright presentation is particularly revealing since it presents Minister Joly with a version of Canadian copyright lacking in balance in which “exceptions are always subject to certain conditions” but references to similar limitations on rights themselves are hard to find. Department officials present a frightening vision of emerging copyright issues, pointing to mandated Internet provider blocking, targeting copyright infringement that occurs on virtual private networks, and “hybrid” legal/illegal services that may be a reference to Canadians accessing U.S. Netflix. The suggestion that Canadian Heritage officials have identified site blocking or legal prohibitions on VPN or U.S. Netflix usage as emerging copyright issues should set off alarm bells well in advance of the 2017 copyright reform process.
So what didn’t officials tell Minister Joly? The reality is that the Minister would benefit from a second presentation that discusses issues such as:
- the emergence of technological neutrality as a principle of copyright law
- how Canada may be at a disadvantage relative to the U.S. given the absence of a full fair use provision
- the growth of alternate licensing systems such as Creative Commons
- how term extension for sound recordings was passed even though the issue was scarcely raised during the 2012 reform process
- why extending the term of copyright (as proposed by the TPP) would do enormous harm to Canadian heritage.
Yet none of these issues are discussed in the briefing.
Can the Royal Navy fund a “cheap and cheerful” frigate?
In the most recent British government SDSR plan, the Royal Navy’s hopes to get 13 new Type 26 frigates have been trimmed down to only eight. Save the Royal Navy speculates on developing a cheaper ship design that could perhaps fill the gap:
Is it really possible to produce a fully effective frigate that is significantly cheaper than a T26? Let us call it the ‘Type 31’, It still requires point defence missiles, anti-ship weaponry, a hangar and small flight deck (even if only for a UAV or Lynx size helicopter), plus a command and control system and suite of sensors. Although the hull size could be reduced, a simpler propulsion system used and the anti-submarine capability eliminated or reduced. You might cut the cost by 30%, and get a general purpose ship but there is still the cost of developing a new design. (At least £200M has already been spent on the T26 design as well as various development ‘blind alleys’ along the way.) A second frigate type will also need its own equipment support logistics and training pipelines.
The desire to create an exportable frigate is laudable but will we not be re-inventing the wheel when there are already cheaper foreign designs that could be licensed or adapted. The highly successful German MEKO design and the Danish Stanflex system are good examples.
If your warship is designed to cope in high-intensity conflict then it will need expensive weapons and sensors. Today’s generation of supersonic anti-ship missiles are truly formidable. Modern surface ships face greater and more diverse threats than ever. To counter this requires good sensors, agile missiles and an array of decoys, backed up by last-ditch close in weapon systems (CIWS). Although the general purpose frigate may not be dedicated to hunting submarines, it will still need a decent sonar to give some hope of prosecuting a submarine or detecting and avoiding torpedo attack. Submarines are also getting more and more stealthy with a growing arsenal of weapons. Without quiet propulsion and sophisticated sonars (i.e. towed arrays) that can detect threats at range and helicopters to attack, the Type 31 could ‘just be another target’.
If your escorts are really going to escort anything eg. an aircraft carrier or merchant shipping, then it needs more than just last-ditch self-defence weapons. A Phalanx CIWS may defend the ship it is mounted on, but it is little use protecting another vessel. If the escort ship can only defend itself, it has very limited use or must be permanently on the offensive. The Sea Ceptor being fitted to the Type 23 and Type 26 frigates has the major advantage over the Sea Wolf it replaces by having more than double the range (around 25Km), significantly extending the size of the protection umbrella over ships being escorted. Frigates are traditionally built to hunt submarines, if our Type 31 has no real ASW capability then it is pretty limited in a wartime role.
QotD: “It’s microaggressions all the way down”
A while back, when I wrote about shamestorming, I ended up in a Twitter discussion with a guy who chided me for letting my privilege blind me to the ways that minorities (specifically women in tech, and more broadly on the Internet), experience microaggressions. You know how that conversation ended? When I pointed out that he had just committed a classic microaggression: mansplaining to me something that I had actually experienced, and he had not. As soon as I did, he apologized, though that hadn’t really been my intent. My intent was to point out that microaggressions are often unintentional (this guy clearly considered himself a feminist ally).
But I inadvertently demonstrated an even greater difficulty: Complaints about microaggressions can be used to stop complaints about microaggressions. There is no logical resting place for these disputes; it’s microaggressions all the way down. And in the process, they make impossible demands on members of the ever-shrinking majority: to know everything about every possible victim group, to never inadvertently appropriate any part of any culture in ways a member doesn’t like, or misunderstand something, or make an innocent remark that reads very differently to someone with a different experience. Which will, of course, only hasten the scramble for members of the majority to gain themselves some sort of victim status that can protect them from sanction.
Megan McArdle, “How Grown-Ups Deal With ‘Microaggressions'”, Bloomberg View, 2015-09-11.