Quotulatiousness

November 8, 2024

The McDonald’s ice cream machines are always broken because of bad IP laws

Filed under: Business, Government, Law, Technology, USA — Tags: , , , , , , — Nicholas @ 03:00

Even if you never to to a McDonald’s yourself, you’ve undoubtedly heard that the ice cream machines are always broken. I hadn’t really given it any thought — it’s been years since I visited one of the restaurants and I don’t eat much ice cream — but Peter Jacobsen explains the weird and infuriating reason for the phenomenon:

Image Credit: Magnus D via Wikimedia | CC BY 2.0

How could it be that the ice cream machines at McDonald’s are so consistently broken? It turns out that, until just recently, it was illegal to hire most people to fix them. To understand why, we’re going to have to take a detour into the world of intellectual property.

DMCA Woes

So why has it been illegal for McDonald’s to hire people to fix their ice cream machines? Well, that’s where the Digital Millennium Copyright Act (DMCA) comes in. If you’re familiar with the DMCA, this is probably confusing to you.

Generally the DMCA is a big concern on content creation platforms like YouTube. If someone uses copyrighted music, he or she gets DMCAed. This is slang for when a video gets its monetization redirected to the owner of whatever copyrighted content was used.

DMCA takedowns draw a lot of ire, because the law is clumsily applied and often even legitimate uses of copyrighted content (e.g., fair use) are punished.

But the DMCA extends beyond content creation, as chronicled by Elizabeth Chamberlain of iFixit, an organization dedicated to ensuring that product owners have the right and ability to fix their property. Many machines ranging from phones to ice cream machines utilize copyrighted software to function. Sometimes, this software limits product users more than they’d like.

For example, iPhone software locks users into particular user interfaces. If a user wants to customize past some point, he’s going to have to modify the software more than the company intends. This process, called jailbreaking, involves breaking through “digital locks”. The DMCA often interprets breaking these locks as a violation of the intellectual property of the copyright holder.

The problem gets even worse when you recognize that fixing things — say, McDonald’s ice cream machines — means breaking past those digital locks. This means anyone hired to repair the machine would need an official blessing from the manufacturer.

However, things have changed. As of October 18th, the opening of digital locks for “retail-level commercial food preparation equipment” is now exempt from this DMCA rule. McDonald’s will now be able to hire from a larger group of people to fix their ice cream machines.

DMCA has allowed a lot of intellectual property owners to collect unearned rents while neglecting the needs of the customers who’ve bought, leased, or rented things that incorporate their IP.

Note, this is only an exemption to the rule. The rule itself has not changed. Second, other regulations still hamper McDonald’s franchise owners from fixing their own machines. As Chamberlain points out:

    While it’s now legal to circumvent the digital locks on these machines, the ruling does not allow us to share or distribute the tools necessary to do so. This is a major limitation … few will be able to walk through it without significant difficulty.

    It is still a crime for iFixit to sell a tool to fix ice cream machines, and that’s a real shame … Without these tools, this exemption is largely theoretical for many small businesses that don’t have in-house repair experts.

So your chance of getting a McFlurry has improved, but you can’t quite celebrate a total win yet.

The battle against these DMCA laws isn’t limited to ice cream machines. The “right to repair” movement spearheaded by organizations including iFixit has already battled for exemptions for medical devices, consumer devices like phones and tablets, vehicles, and assistive technologies for people with disabilities.

October 8, 2022

Faint glimmers of hope for Canadians’ “right to repair”?

Filed under: Business, Cancon, Law, Liberty, Technology — Tags: , , , , — Nicholas @ 03:00

Michael Geist on the state of play in modifying Canada’s digital lock rules to allow consumers a tiny bit more flexibility in how they can get their electronic devices repaired:

“The Self-Repair Manifesto from ifixit.com ‘If you can’t fix it, you don’t own it’. Hear, hear!” by dullhunk is licensed under CC BY 2.0 .

Canadian anti-circumvention laws (also known as digital lock rules) are among the strictest in the world, creating unnecessary barriers to innovation and consumer rights. The rules are required under the World Intellectual Property Organization’s Internet Treaties, but those treaties leave considerable flexibility in how they should be implemented. This is reflected in the countless examples around the world of countries adopting flexible anti-circumvention rules that seek to maintain the copyright balance. Canada was pressured into following the restrictive U.S. approach in 2012, establishing a framework is not only more restrictive than required under the WIPO treaties, but even more restrictive than the U.S. system.

One of the biggest differences between Canada and the U.S. is that the U.S. conducts a review every three years to determine whether new exceptions to a general prohibition on circumventing a digital locks are needed. This has led to the adoption of several exceptions to TPMs for innovative activities such as automotive security research, repairs and maintenance, archiving and preserving video games, and for remixing from DVDs and Blu-Ray sources. Canada has no such system as the government instead provided assurances that it could address new exceptions through a regulation-making power. In the decade since the law has been in effect, successive Canadian governments have never done so. This is particularly problematic where the rules restrict basic property rights by limiting the ability to repair products or ensure full interoperability between systems.

The best policy would be to clarify that the anti-circumvention rules do not apply to non-infringing uses. This would enable the anti-circumvention rules to work alongside the user rights in the Copyright Act (also known as limitations and exceptions) without restricting their lawful exercise. This approach was endorsed by the 2019 Canadian copyright review, which unanimously concluded:

    it agrees that the circumvention of TPMs should be allowed for non-infringing purposes, especially given the fact that the Nintendo case provided such a broad interpretation of TPMs. In other words, while anti-circumvention rules should support the use of TPMs to enable the remuneration of rights-holders and prevent copyright infringement, they should generally not prevent someone from committing an act otherwise authorized under the Act.

The government has not acted on this recommendation, but two private members bills are working their way through the House of Commons that provide some hope of change. First, Bill S-244 on the right of repair. Introduced by Liberal MP Wilson Miao in February, the bill this week passed second reading unanimously and has been referred to the Industry committee for further study. The lack of a right of repair exception in Canadian digital lock rules has hindered both consumers and Canadian innovation significantly, leaving consumers unable to repair their electronic devices and farmers often locked out of their farm equipment. After farmers protested against similar copyright restrictions, the U.S. established specific exceptions permitting digital locks to be circumvented to allow repair of software-enabled devices.

Given the impact on consumers, the agricultural sector, and the environment, a provision that explicitly permits circumvention for purposes of the right of repair in Canada is long overdue. Indeed, such an approach is consistent with the 2019 copyright review recommendation:

    Recommendation 19

    That the Government of Canada examine measures to modernize copyright policy with digital technologies affecting Canadians and Canadian institutions, including the relevance of technological protection measures within copyright law, notably to facilitate the maintenance, repair or adaptation of a lawfully-acquired device for non-infringing purposes.

October 23, 2021

The English Statute of Monopolies gets far more credit than it actually deserves

Filed under: Britain, History, Technology — Tags: , , , , , , , — Nicholas @ 03:00

The Statute of Monopolies (1624) is often said to have been critical in helping to start England on the road to the Industrial Revolution, but in the latest Age of Invention newsletter Anton Howes argues it is far more complicated than it seems:

Letters Patent Issued by Queen Victoria, 1839. On 15 June 1839 Captain William Hobson was officially appointed by Queen Victoria to be Lieutenant Governor General of New Zealand. Hobson (1792 – 1842) was thus the first Governor of New Zealand.
Constitutional Records group of Archives NZ via Wikimedia Commons.

One of the most frequently mentioned landmarks in the history of intellectual property is the Statute of Monopolies, passed by the English parliament in 1624. I’ve often seen it lauded as the beginning of the system of patents for invention, or the first patent law. I remember giving a talk a few years ago where I downplayed the role of formal institutions in encouraging the Industrial Revolution, prompting an outraged economist in the audience to point to the law as a sort of gotcha — “here’s a better explanation: with patents you incentivise invention, and the Brits had just invented patents”.

Which is all to illustrate that the Statute of Monopolies is often fundamentally misunderstood. So what, exactly, did it actually do? It’s a tale of opportunism, corruption, and court intrigue, with some actual innovation inbetween. The whole saga ended Francis Bacon’s political career, led to a major constitutional crisis, and set the scene for how inventors were to behave and act for well over a century. In this first part, I’ll give the context you’ll need to really appreciate what was going on, and I’ll publish the rest in the weeks to come.

First off, the Statute of Monopolies was certainly not the first patent law. Venice’s senate had enacted a law on monopolies for invention as early as 1474. But even then, we shouldn’t be looking for statutes at all. The history of patents does not begin in 1474, but much earlier, with plenty of monopolies over new inventions having already been granted by the ruling grand council of Venice, and by the authorities of other Italian cities like Florence. The key thing to recognise about early patents is that they were not a creation of parliaments or their statutes, but of those in charge. They were the creation of sovereigns, a creature of kings and queens (or in the case of republics like Venice, of governing councils).

As regular readers of this newsletter might remember, patent monopolies for invention had already had long history in England, well before 1624. Patents in general were a very ordinary tool of English monarchs, used to communicate their will. By issuing letters patent, monarchs essentially issued public orders, open for everyone to see. (Think “patently”, as in clearly or obvious, which comes from the same root.) Monarchs used letters patent to grant titles and lands, appoint or remove people as officials, extend royal protections to foreign immigrants, incorporate cities, guilds, even theatre troupes — in general, just to rule.

And, eventually, English monarchs copied the Venetians by issuing letters patent to grant temporary monopolies to particular people, to encourage them to make discoveries, publish books, or introduce new industries or inventions to the realm. It’s only over the passage of centuries that we’ve come to refer to patents for invention — a mere subset of letters patent, and really even a mere subset of patent monopolies for all sorts of other creative work — as simply patents. Intellectual property was thus a ruler-granted privilege, created in the same way that a town gains the official status of a city, or a commoner becomes a knight. English monarchs began granting monopolies for discovering new territories and trade routes from 1496, for printing certain books from 1512, and for introducing new industries or inventions from 1552 (with one weird isolated exception from as early as 1449).

February 12, 2021

Calls for the federal government’s Broadcasting bill (Bill C-10) to be withdrawn

Filed under: Cancon, Government, Media, Technology — Tags: , , , , , — Nicholas @ 05:00

Michael Geist updates the situation with the federal government’s attempt to massively rework the Canadian broadcast and internet regulation framework without proper scrutiny or transparency:

I have not been shy about expressing my concerns with the Bill C-10, the Broadcasting Act reform bill. From a 20 part series examining the legislation to two podcasts to a debate with Janet Yale, I have actively engaged on policy concerns involving regulation that extends far beyond the “web giants”, the loss of Canadian sovereignty over broadcast ownership, the threat to Canadian intellectual property, and the uncertainty of leaving many questions to the CRTC to answer. Yet beyond the substance of the bill, in recent days an even more troubling issue has emerged as Canadian Heritage Minister Steven Guilbeault, his Parliamentary Secretary Julie Dabrusin, and the Liberal government abandon longstanding commitments to full consultation, transparency, and parliamentary process.

Last week, I appeared before the Standing Committee on Canadian Heritage as part of what it is calling a “pre-study” on Bill C-10. In this case, “pre-study” is euphemism for avoiding the conventional parliamentary process. Bill C-10 has not yet passed second reading in the House of Commons and has not been referred to committee for study. There have been extensive debates in the House and last week Conservative MP Michael Kram called for the bill to be withdrawn, noting that politicians could do Canadians a lot of good by “rewriting it from scratch.” That move drew criticism from Guilbeault during an interview at the CMPA Prime Time event, as he called for pressure on the Conservatives to support referring the bill to committee. There are instances of pre-study, but doing so concurrently with second reading makes no sense since a pre-study allows for a wide range of amendments, whereas after second reading the permitted amendments are more limited.

In an earlier era (or with a different government), the prospect of conducting a study of the bill while simultaneously engaging in second reading would garner loud objections. In fact, at the Heritage Committee hearing last week, opposition MPs wondered why they were already being asked for amendments to the bill when they had yet to hear from witnesses, much less conduct an actual study of the bill. Indeed, for a government that once prized itself on robust consultation, it seemingly now wants to avoid any genuine consultation on Bill C-10, content to have potential amendments presented through lobbyists, rather than on the public record in open hearings.

The secrecy does not end there. At the same hearing (I was a witness and waited patiently for these issues to play out), Conservative MPs raised questions about promised data on how the government had arrived at claims that the bill will generate over $800 million in new money. Leaving aside the fact that Guilbeault has often inflated that figure to over $1 billion, there has no public disclosure about the source of this claim. Cartt.ca reports that officials told the committee that the calculations could be “confusing” without a verbal explanation. Days later, Dabrusin told the committee that in fact the data had been provided to the committee late last year but perhaps not distributed to committee members.

When I was questioned by Conservative MP Kevin Waugh during my appearance before the committee, he again raised concerns about the claim. Dabrusin interjected with a point of order to make it clear that the data had been provided to the committee, albeit not distributed to MPs. What made the exchange so striking was that Dabrusin – a parliamentary secretary – seemingly did not give any thought to the fact that the data has not been made publicly available. Promoting long overdue disclosures to a handful of MPs while the public is kept in the dark is hardly the stuff worthy of praise or a point of order.

March 30, 2019

The EU’s copyright regulation is a stalking horse for online censorship and control

Filed under: Business, Europe, Government, Liberty, Media, Technology — Tags: , , , , , , — Nicholas @ 03:00

To the amazement of many non-EU observers, the European Parliament passed blatantly authoritarian and corporatist changes to the rules on copyrights that will have potentially vast impact on the internet across the world, not just inside the EU. At City A.M., Kate Andrews explains why this is such bad news for all internet users:

The two most controversial points in the law – Article 11 and Article 13 – are almost certain to stifle digital activity, and interfere with the free way that people currently use online platforms.

Article 11, known as the “link tax”, would make online platforms compensate press publishers for links and article content posted on their sites.

As my colleague Victoria Hewson highlighted in her latest briefing, this approach has been “widely criticised as a distortive measure that seeks to prop up a declining industry”.

As many local and national newspapers decline in readership and revenue, governments have become increasingly protectionist in their attempts to “rebalance” the sector, by cracking down on online platforms.

The link tax has little merit, even if rebalancing is the goal. News outlets which require payment for readership already have logins and paywalls to protect their content from free access.

[…]

Article 13 will also be distortive to the market, as it makes online platforms increasingly liable for copyright infringement.

As Hewson’s briefing notes, major online platforms already have routine screening processes for content that violates copyright law or their own rules. But the new regulations “remove the protection for platforms previously available if they removed violating content promptly on receiving notice of it, and contravene fundamental rights such as free expression and freedom from monitoring”.

The Directive claims that safeguards – including pastiche, parody, and quotations – will be protected, and that meme content has been excluded.

But the algorithms which these platforms will have to implement to adhere to Article 13 are going to struggle to see the difference between infringement and fair use when comparing uploads to content that is registered as copyrighted.

January 7, 2019

QotD: The lifecycle of the pop music industry

Filed under: Business, History, Media, Quotations, Technology — Tags: , , , — Nicholas @ 01:00

… the music industry, the people involved in the business end of things, is about half the size it was at its peak. A couple of years ago I did a post on the state of music. Per capita music sales have collapsed from their peak 15 years ago. That peak was largely a bubble created by the advent of the compact disc. Everyone went out and repurchased their music collection in the new digital format. A lot of old stuff was remastered for the new format and that boosted sales too.

We are now in a time when selling songs is no longer very profitable. Often, bands will put their new releases on YouTube free of charge. The song itself is a form of marketing for their live shows. In my youth, the opposite was the case. Bands went on tour to promote their latest album. The tickets to the show were often cheaper than the album. Now, anything you want is on-line so trying to monetize the songs has become a lost cause. As a result, the focus is on making money from the live shows.

In many respects, pop music is back to where it was before the great wars of the 20th century. In the 19th century, sheet music was the item of value in the music business. Many of our intellectual property laws, in fact, come from efforts to protect the owners of sheet music. The main source of income for musicians, however, was the live act. They went around performing for customers. It is where the expression “sing for your supper” started. Often musicians were paid, in part, with a meal.

The Z Man, “The Cycle of Life”, The Z Blog, 2017-03-01.

July 31, 2017

Patents, Prizes, and Subsidies

Filed under: Economics, Science, Technology — Tags: , , , , , — Nicholas @ 02:00

Published on 17 May 2016

Growth on the cutting edge is all about the creation of new ideas.

So, we want institutions that incentivize such creation. How do we do this? The answer is somewhat tricky.

The first goal for good ideas is for them to spread as freely as possible. The further the reach, the greater the gains. The problem is, if just anyone can use ideas, then why would we ever pay for them? And without the right incentives, why would innovators create new ideas at all?

Imagine yourself as the creator of a new drug. Typically, it costs about a billion dollars to do this, not counting the time and effort needed to get the drug FDA-approved.

Now, if there were no protections in place, then theoretically, once the formula’s known, everyone could just copy the make-up of your new drug. See, the thing about pharmaceuticals is, once the formula’s known, production is relatively cheap. Given that, let’s assume imitations start flooding the market.

Predictably, the price of your new drug will plummet.

Once prices hit rock-bottom, you’ll have no way to recoup the $1 billion you spent on R&D.

Given that kind of result, we reckon you probably won’t want to develop more good ideas.

The US founding fathers anticipated this problem. Knowing that innovators needed incentives to have good ideas, the founders wrote a protection mechanism into the Constitution.

They gave Congress the ability to grant exclusive rights to inventors — rights to use and sell their inventions, for a limited period of time. This exclusive right, is what we call a patent. Patents grant inventors a temporary monopoly over the use and sale of their intellectual property.

Now, as nice as this is, patents are a thorny subject.

For one, how long should patents last? Also, how much innovation is considered enough to merit a patent grant? Not to mention, are patents the only way to reward good ideas?

The answer is no.

There are two more incentive options here: prizes, and subsidies.

Let’s start with subsidies. University and research subsidies are particularly effective in the basic sciences. Since innovations in this space are rather abstract, subsidies incentivize research without requiring the applications of the research to be explicitly named. The problem is, when we’re incentivizing just research, then researchers might pick directions that are interesting, but not particularly useful.

This is why the third incentive option — prizes — exists.

Prizes reward the output of solving a certain problem. Another plus, is that prizes leave solutions unspecified. They provide a problem to work on, but give quite a lot of leeway as to how the problem is solved.

Now, knowing the complexity inherent in patents, you might think that prizes and subsidies are good enough alternatives. But none of these incentives for ideas, are inherently better than any of the others. Patents, prizes, and subsidies all involve their own tradeoffs and questions.

For example, who decides what gets subsidized? Who decides which goals merit a prize?

It’s hard to determine what mix of institutions, will best incentivize the production of good ideas. Patents, prizes, and subsidies all navigate these conflicting goals, in their own way.

And yes, all this talk of incentives and conflicting goals and tradeoffs might be like walking a tightrope. But, it’s a tightrope we can’t opt out of. Certainly not if we want the economy to keep growing.

In our next release, you’ll watch a TED talk from a certain economist that elaborates further on ideas. And then, we’ll wrap up this course segment with the Idea Equation. Stay tuned!

June 15, 2017

Activists lobbying the UN to make cultural appropriation an international crime

Filed under: Bureaucracy, Law, Liberty, Politics — Tags: , , , , , — Nicholas @ 03:00

The stupid, it burns:

Due to the fact that the United Nations doesn’t have anything more important to deal with, delegates from 189 countries, including the United States and Canada, are lobbying in Geneva for the organization to institute laws to make cultural appropriation illegal – and for those laws to be implemented quickly.

The delegates are a part of a specialized international committee in the World Intellectual Property Organization (WIPO) which was founded in 2001 to expand intellectual property regulations to protect indigenous art, forms of expression like dance, and even words.

According to CBC, James Anaya, dean of law at the University of Colorado, said that the United Nations document should “obligate states to create effective criminal and civil enforcement procedures to recognize and prevent non-consensual taking and illegitimate possession, sale and export of traditional cultural expressions.”

Not only could the state put you in jail for cultural appropriation, those who feel as though their culture is appropriated would be able to sue you for damages. In other words, you could go to jail for making and selling burritos if you’re not Mexican, or wearing a kimono while white.

There has never been a human culture that has not “appropriated” from other cultures except for those so isolated that they never encounter other cultures. Appropriation is literally older than civilization, and no action of WIPO is going to change that. It may, however, provide even more ways for emotional and legal blackmail to be made profitable, and give even more tools to those who long to force others to bend to their will.

Ed Krayewski has more at the Hit and Run blog:

What sort of appropriation does the committee want to stop? University of Colorado Law Dean James Anaya, an indigenous leader and a technical analyst for the IGC, points to products that purport to be made or endorsed by indigenous groups but aren’t. At the Geneva meeting, Anaya offered Urban Outfitters’ “Navajo line” as an example. The Navajo Nation actually brought suit in U.S. court against Urban Outfitters over that line of products in 2012, and the case was settled out of court last year. It’s unclear how an international intellectual property bureaucracy would improve the situation.

But it’s clear how it could create new avenues for rent-seeking. The World Intellectual Property Organization generates revenue from fees, such as the ones it charges for international trademarks. Any system the IGC creates is likely to include a similar international mechanism for registering whichever “traditional cultural expressions” get protections. Such a setup could have a chilling effect on any commercialization of folklore, even by members of the original indigenous communities.

After all, the same forces of globalization and decentralization that have made intellectual property laws more difficult to enforce offer the potential to drastically expand native producers’ reach. KPMG has noted, for example, that the internet offers a “new potential for indigenous Australians in regional and remote areas to access global audiences.” An IGC-style intellectual property regime would inevitably require such entrepreneurs, not just the big corporations accused of cultural appropriation, to get additional approvals for their activity.

Meanwhile, the same governments with long histories of abusing indigenous populations would be responsible for deciding who belongs to such populations and who faces criminal penalties for not meeting the governments’ definitions. Kathy Bowrey, a law professor at the University of New South Wales in Australia, tells Reason that she would love to see the IGC succeed in setting up an system that genuinely protects indigenous culture. But she has no hopes that it will. Given the “racist practices that mark everyday lives of First Nations people domestically,” she says, “I’m not sure why there is an expectation that these states would operate differently on the international stage.”

June 30, 2016

More tales from Garnet Rogers’ Night Drive

Filed under: Books, Cancon, Media — Tags: , , , — Nicholas @ 03:00

While I’m eagerly awaiting the delivery of my copy of Garnet’s book, here is a report from the Local Xpress on Garnet’s upcoming appearance at the Canso Stan Rogers Folk Festival this Canada Day weekend:

The length of the journey to Canso, home of the Stan Rogers Folk Festival, is no deterrent to the hardy hundreds who’ve packed the event every July long weekend for the past two decades.

But that winding Guysborough road is just a fraction of the journey that the festival’s namesake made with his brother and bandmate Garnet Rogers prior to Stan’s death in 1983. Many of those miles are chronicled in Garnet’s new book Night Drive: Travels With My Brother, which he’s launched in time for Stanfest’s 20th anniversary. The book stretches from their parents’ roots in Canso and Pictou County to the brothers’ final conversation at the Kerrville Folk Festival in Texas. In between lies a rough and tumble tale of a furtive search for folk music glory, where it took more than talent to get ahead, and dreams seemed to get dashed on a daily basis.

    “Somebody made the comment that parents should buy the book and give it to any of their kids who decide they want to become a musician or a folksinger […] It really is kind of a cautionary tale.”

[…]

Decades later, much of it has been romanticized, and writing Night Drive was an opportunity for Garnet to strip away the rose-coloured glasses, and also tell his side of the story.

    “I got invited to this thing recently where the City of Hamilton is honouring Stan with a lifetime achievement award, making him a citizen of the city or something like that, sponsored by the Hamilton Spectator […] On the face of it, God bless them, but I felt like a bystander. There was no mention of the fact that I was there, or as far as Stan was concerned, 50 per cent of the equation.

    “Stan handed over 49 per cent of his publishing to me, half ownership of the songs, that should mean something in terms of how he at least perceived my contribution, but the average person doesn’t know any of that. So part of writing this was simply to say I was there. I don’t want someone coming up to me and giving me some blather about how seeing Stan changed their life and they’ll never forget that concert, but they don’t remember that I was there, because I bloody was.

    “So a lot of it was setting the record straight, but more importantly I wanted it to be funny.”

And much of the book is laugh-out-loud hilarious, as Rogers describes how he and his brother were performing the musical equivalent of “scrawling your name on a cave wall” while playing for distracted pit miners at a disco in Labrador City. Or in a pressure cooker of a bar in Jasper, Alta., where the audience was split down the middle between railway and oil rig workers who hated each other, which eventually erupted in a melee that nearly saw Stan charged with assault with a deadly weapon, in this case a mike stand.

    “There was something in that ‘three young guys in a van together’ thing […] Whether the gig was good, bad or indifferent, you could always find something to laugh about. Like the opening chapter about the non-existent gig in Baltimore and that young woman sitting on the couch with no underwear, every damn detail of that story is absolutely true, not even remotely exaggerated.

    “It was just as squalid as it sounds, and you come out of something like that, the worst disaster ever, but you’re laughing and laughing, and a few hours later you realize you’re miles from home and completely broke. But in the meantime you’ve got three young guys who are just dying with laughter because of the insanity of the situation.”

October 7, 2015

The enigma of the Trans-Pacific Partnership

Filed under: Economics — Tags: , , , , , — Nicholas @ 05:00

We don’t know what’s in it, so it could be a multi-national version of “we have to pass it to find out what’s in it”. Megan McArdle manages to raise one cheer for the agreement:

I’ve spent the morning reading about the Trans-Pacific Partnership. I went in prepared to deliver a column full of details, winners and losers, strong opinions about the good provisions and the bad. But what really comes to mind is a dismal thought: “Is this the best we can do?”

Oh, yes, I know the statistics. Forty percent of the world’s economy. Thousands of tariffs falling. I know the opposition points too, about giveaways to business, intellectual property rules, outsourcing jobs. No one is talking about the larger story, though, which is that the biggest trade news in a decade involves a regional deal of relatively limited impact.

It was not always thus. When I was a fledgling journalist, a wee slip of a thing, we economics writers looked to major global trade negotiations to advance the cause of freer markets, and not incidentally, the material progress of mankind. We looked down on regional side-deals because they were such weak tea compared with the robust brew of a global agreement. Regional deals distorted the flow of trade, encouraging people not to exploit comparative advantage and production capabilities, but rather to seek the best combination of tariff rules from among competing regional frameworks. I have heard arguments that such deals, by distorting trade and weakening the pressure to make global deals, were actually worse than doing nothing. Indeed, I may have made such arguments.

You don’t hear those arguments any more, and that’s because we free-traders have largely given up on global trade agreements. The Doha round of World Trade Organization talks collapsed in the face of European agricultural protectionism and intransigence among countries with large numbers of subsistence farmers. Nativism, protectionism, nationalism seem to be rising as a political force in many countries. Global trade volumes are looking anemic. In this climate, regional agreements seem attractive, in much the same way that the remaining bar patrons assume a winsome glow around closing time.

How have things come to such an unpretty pass?

July 13, 2015

“Links to this Site are not permitted except with the written consent of TO2015™”

Filed under: Bureaucracy, Cancon, Media, Sports — Tags: , , , , — Nicholas @ 04:00

Toronto’s Pan Am Games organizers appear to have been living in a cave without an internet connection for the last 15 years:

The organisers of the Pan American Games in Toronto, which start this week, require that people seek formal permission to link to its website at [toronto2015 DOT org].

Under the website’s terms of use, amid piles of incomprehensible legalese seemingly designed to hide from the fact that social media exists, it is decreed that no one is allowed to use one of those hyperlink thingies to connect to the website unless they first get approval. It reads:

    Links to this Site are not permitted except with the written consent of TO2015™. If you wish to link to the Site, you must submit a written request to TO2015™ to do so. Requests for written consent can be sent to branduse@toronto2015.org. TO2015™ reserves the right to withhold its consent to link, such right to be exercised in its sole and unfettered discretion.

Eagle-eyed readers will have noticed that the $2bn sports event – effectively a mini-Olympics – also appears to have trademarked the term “TO2015.” Which makes about as much sense.

Incredibly, this is not a misreading of the terms, and it doesn’t appear to have been a mistake either. Instead, it’s about the increasingly insane approach that intellectual property lawyers are taking to sponsors – and non-sponsors – of sporting events.

Alongside such gems as forcing people to put tape over their own computers if a computer company is a sponsor, and stopping people for drinking anything that isn’t a sponsor drink (if there is a drinks sponsor), now it seems the Pan Am Games lawyers have decided they need to prevent the internet from entering the hallowed sponsor world.

Strictly speaking, anyone who links to the website or even anyone who uses the games’ own hashtag of [hashtagTO2015] is violating its terms, and could be sued. Although not a court in the land would actually enforce it.

Notice that, as I live in Canada, I’ve carefully obfuscated the URL and the hashtag so you don’t accidentally click on them and violate their intellectual property right claims or anything. I suspect this will be the only actual coverage of the games I’ll be posting, just to be on the safe side. Discussion of the financial side, or the disruption to normal life in Toronto caused by the games, of course, is still fair game.

July 10, 2015

A new and exciting (if you’re a lawyer) aspect of photography

Filed under: Europe, Law, Liberty — Tags: , , , — Nicholas @ 03:00

As a casual photographer, I think very little about taking a photo of a building or landscape visible from the sidewalk or other public place. This casual attitude may become a relic of the past if EU regulators have their way, as Brian Micklethwait explains:

Basically, some EU-ers are talking about making it illegal to profit without permission by taking a photo, in public, of a publicly visible building or work of art, and then posting it on any “profitable” blog or website. The nasty small print being to the effect that the definition of “profitable” is very inclusive. For the time being, it would exclude my personal blog, because my blog has no income of any kind. But does Samizdata get any cash, however dribblesome, from any adverts, “sponsorships”, and so forth? If so, then me placing the above photo of the Shard at Samizdata might, any year now, become illegal, unless Samizdata has filled in a thousand forms begging the owners of the Shard, and for that matter of all the buildings that surround it, to allow this otherwise terrible violation of their property rights, or something.

“Might” because you never really know with the EU. At present this restriction applies in parts of the EU. It seems that a rather careless MEP tried to harmonise things by making the whole of the EU as relaxed about this sort of things as parts of it are now, parts that now include the UK. But, the EU being the EU, other EU-ers immediately responded by saying, no, the way to harmonise things is to make the entire EU more restrictive. Now the MEP who kicked all this off is fighting a defensive battle against the very restriction she provoked. Or, she is grandstanding about nothing, which is very possible.

Being pessimistic about all this, what if the restriction does spread? And how long, then, before the definition of “for profit” is expanded to include everything you do, because if it wasn’t profitable for you, why would you do it? At that point, even my little hobby blog would be in the cross hairs, if I ever dared to take and post further pictures of London’s big buildings.

Some better news for me is that if this scheme proceeds as far as it eventually might, my enormous archive of photographs of people taking photographs will maybe acquire a particular poignancy. It will become a record of a moment in social history, which arrived rather suddenly, and then vanished. Like smoking in public.

May 9, 2015

Every time you extend copyright terms, you reduce the availability of our musical heritage

Filed under: Business, Cancon, Law — Tags: , , — Nicholas @ 03:00

Michael Geist on the negative aspects of the Canadian government’s surprise extension of copyright terms:

The government yesterday tabled its budget implementation bill (Bill C-59), which includes provisions to extend the term of copyright for sound recordings and performances. The extension adds 20 years to the term (to 70 years). It also caps the term at 100 years after the first fixation of the sound recording or performance. The change is not retroactive, so sound recordings currently in the public domain will stay there. The government’s unexpected decision to extend the term of copyright for sound recordings and performances will not only cost consumers by reducing competition and stop cheaper, legal music alternatives from coming to the market – but it will also reduce access to Canada’s music heritage.

This is the inescapable conclusion based on studies elsewhere, which find that longer copyright terms discourage re-issuing older releases, which often means that the musical heritage is lost. For example, Tim Brooks conducted a detailed study in 2005 on how copyright law affects reissues of historic recordings. He concluded that longer copyright terms significantly reduce public access. First, he examined the data in the United States, which at the time had the longest term of protection:

    our analysis shows that rights-holders have reissued – or as a practical matter allowed legal access to – only a small fraction of the historic recordings they control. Overall, 14 percent of listed pre-1964 recordings were found to be available from rights holders, mostly from the 1940s, 1950s and early 1960s. The figure drops to ten percent or less for most periods prior to World War II, and approaches zero for periods before 1920. This study focused on recordings in which there is demonstrated interest; it is likely that the percent of all recordings that have been reissued is even less.

January 12, 2015

If you’ve used the term “Streisand Effect”, you need to pay royalties now…

Filed under: Humour, Law, Liberty — Tags: , , , , — Nicholas @ 03:00

Techdirt‘s Mike Masnick isn’t asking for a lot, he just wants to ensure that his intellectual property is respected … in a way that ensures that his kids won’t starve in the street:

I have to admit that I had no idea that it had been 10 years since I coined the term “The Streisand Effect” until the SkepticHistory Twitter feed called my attention to it earlier this week. I had thought about saving this for the weekend “this week in history” post, but it seems worth delving into today — especially with folks like the thieves at Gawker Media putting up a whole story about it and stealing all the attention and whatnot.

So, yeah, ten years ago this week, I coined “the Streisand Effect,” which was actually on a story about how the Marco Beach Ocean Resort was all offended by the fact that Urinal.net (a site that, yes, still exists and is still being updated) had posted a photo of a urinal from the resort, and the resort insisted that it was illegal to use its name. As we pointed out, this stupid takedown request would only draw more attention, and then we wrote:

    How long is it going to take before lawyers realize that the simple act of trying to repress something they don’t like online is likely to make it so that something that most people would never, ever see (like a photo of a urinal in some random beach resort) is now seen by many more people? Let’s call it the Streisand Effect.

That last link then went back to a 2003 story about how Barbra Streisand had sued photographer Kenneth Adelman for photographing her house from a helicopter. Adelman had been photographing the entire California coastline, hoping to use it to document coastal erosion, and posted all the photographs online. Streisand got upset that her coastal home was shown, and sued. But, of course, before this, no one knew (or cared) that it was Streisand’s home. The image had been viewed six times (including twice by Streisand’s lawyers), but following the news of the lawsuit, hundreds of thousands of people went to see the photo. It was a story that stuck with me, and seemed to be repeated every few months in some form or another. So when I saw that Urinal.net threat, I just jokingly said we should call such things “The Streisand Effect.”

August 28, 2014

Digital “ecosystems”, “platforms”, and sunk costs

Filed under: Business, Technology — Tags: , , — Nicholas @ 09:19

The Guardian Technology Blog looks at how digital product vendors attempt to lock you into their own (more profitable) platform or ecosystem:

Depending on your view, the stuff you own is either a boon to business or a tremendous loss of opportunity.

For example, your collection of spice bottles in your pantry means that I could possibly sell you a spice rack. On the other hand, it also means that I can’t design a special spice rack that only admits spice bottles of my own patent-protected design, which would thereby ensure that if you wanted to buy spices in the future you’d either have to buy them from me or throw away that very nice spice rack I sold you.

In the tech world, this question is often framed in terms of “ecosystems” (as in the “Google/Chrome/Android ecosystem”) or platforms (as in the “Facebook platform”) but whatever you call it, the discussion turns on a crucial different concept: sunk cost.

That’s the money, time, mental energy and social friction you’ve already sunk into the stuff you own. Your spice rack’s sunk cost includes the money you spend on the rack, the time you spent buying fixings for it and the time you spent affixing it, the emotional toil of getting your family to agree on a spice rack, and the incredible feeling of dread that arises when you contemplate going through the whole operation again.

If you’ve already got a lot of sunk costs, the canny product strategy is to convince you that you can buy something that will help you organise your spices, rip all your CDs and put them on a mobile device, or keep your clothes organised.

But what a vendor really wants is to get you to sink cost into his platform, ecosystem, or what have you. To convince you to buy his wares, in order to increase the likelihood that you’ll go on doing so — because they match the decor, because you already have the adapters, and so on.

The vendor wants to impose a switching cost on you, to penalise you for disloyalty should you defect to another ecosystem/platform. The higher your switching costs, the worse the vendor can afford to treat you — rather than supplying the best goods at the best price, he can provide the best goods at the best price, plus the switching cost you’d have to pay if you went somewhere else. Or he can offer the best price, but offer goods whose manufacture — and quality — is cheaper by a sum of about the cost you’d have to pay for switching.

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