Quotulatiousness

September 11, 2012

Manufacturers may follow the music industry pattern

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

An interesting article in The Economist:

As an expert on intellectual property, Mr Weinberg has produced a white paper that documents the likely course of 3D-printing’s development — and how the technology could be affected by patent and copyright law. He is far from sanguine about its prospects. His main fear is that the fledgling technology could have its wings clipped by traditional manufacturers, who will doubtless view it as a threat to their livelihoods, and do all in their powers to nobble it. Because of a 3D printer’s ability to make perfect replicas, they will probably try to brand it a piracy machine.

[. . .]

As with any disruptive technology — from the printing press to the photocopier and the personal computer — 3D printing is going to upset existing manufacturers, who are bound to see it as a threat to their traditional way of doing business. And as 3D printing proliferates, the incumbents will almost certainly demand protection from upstarts with low cost of entry to their markets.

Manufacturers are likely to behave much like the record industry did when its own business model — based on selling pricey CD albums that few music fans wanted instead of cheap single tracks they craved — came under attack from file-swapping technology and MP3 software. The manufacturers’ most likely recourse will be to embrace copyright, rather than patent, law, because many of their patents will have expired. Patents apply for only 20 years while copyright continues for 70 years after the creator’s death.

[. . .]

In that, the record industry was remarkably successful. Today, websites and ISPs have to block or remove infringing material whenever they receive a DMCA takedown notice from a copyright holder — something that happens more often than actually justified. Google reckons that more than a third of the DMCA notices it has received over the years have turned out to be bogus copyright claims. Over a half were from companies trying to restrict competing businesses rather than law-breakers.

Rallying under the banner of piracy and theft, established manufacturers could likewise seek to get the doctrine of “contributory infringement” included in some expanded object-copyright law as a way of crippling the personal-manufacturing movement before it eats their lunch. Being free to sue websites that host 3D design files as “havens of piracy” would save them the time and money of having to prosecute thousands of individuals with a 3D printer churning out copies at home.

September 7, 2012

Jesse Kline: Consumers the biggest losers in Apple-Samsung battle

Filed under: Business, Law, Technology — Tags: , , , , — Nicholas @ 00:07

In the National Post, Jesse Kline points out that the grubby legal dispute between Apple and Samsung may end up hurting the consumer much more than either of the combatants:

Software is unique because it is covered under both copyright and patent law. Computer software is written in a human-readable language, called source code, that is then translated by the computer into something the machine can understand. Much like writing a book, or newspaper article, source code is automatically covered under copyright law.

But no one is alleging that Samsung copied Apple’s code. What Samsung was sued for was achieving the same outcome as Apple, even though it was done in a different way. In this literary world, this would be akin to someone being sued for violating the copyright on Harry Potter, just because they wrote their own story about a boy wizard.

Intellectual property laws are supposed to encourage innovation by allowing companies and individuals to profit off works that may have cost a significant amount of money to develop. Apple says it was undercut in price because its competitor simply copied its design. In actual fact, Android was cheaper to produce because it is based on the open source Linux operating system, which saved money compared to Apple proprietary system.

For its part, Samsung accuses Apple of resorting “to litigation over market competition in an effort to limit consumer choice.” It’s one thing for the legal system to protect new inventions and original works, but this is quite clearly a case of a company engaging in anti-competitive behaviour.

September 1, 2012

Digital “inheritance”: law has not caught up to our online lives

Filed under: Law, Media, Technology — Tags: , , , — Nicholas @ 00:01

As I mentioned in a post the other day, our laws are still designed for a world where most things have a physical presence, and the problems we see in intellectual property and patent law are just the start of the turmoil our legal system will have to face:

What will happen to your Facebook account after you are gone?

Dealing with digital assets after someone dies is becoming a challenge for families and the legal system alike.

Lawmakers are trying to clarify rules governing the passage of social-media and email accounts, along with other online assets that might have financial value. Several states have enacted laws to deal with post-death access to digital assets, and several more are working on similar legislation, says Gene Hennig, a lawyer at Gray Plant Mooty in Minneapolis and a commissioner of the Uniform Law Commission.

That group, which recommends uniform state laws, plans to come up with a recommended statute that more states could adopt.

“Eventually people are going to start putting in their wills what they want, and we need to know what’s allowed,” Mr. Hennig says. “In the olden days, grandma had a chest in the attic full of photo albums. Now, your chest of photos is in your computer.”

Update, 3 September: Bruce Willis wants his kids to inherit the music library he’s built up, but the iTunes licensing won’t let him do that.

August 11, 2012

The Broadcasting Treaty zombie rises from the grave

Filed under: Law, Media, Technology — Tags: , , , , , — Nicholas @ 09:31

Cory Doctorow explains why we still need to fight against WIPO’s latest attempt to gain even more legal rights over content:

The UN’s World Intellectual Property Organization’s Broadcasting Treaty is back. This is the treaty that EFF and its colleagues killed five years ago, but Big Content won’t let it die. Under the treaty, broadcasters would have rights over the material they transmitted, separate from copyright, meaning that if you recorded something from TV, the Internet, cable or satellite, you’d need to get permission from the creator and the broadcaster to re-use it. And unlike copyright, the “broadcast right” doesn’t expire, so even video that is in the public domain can’t be used without permission from the broadcaster who contributed the immense creativity inherent in, you know, pressing the “play” button. Likewise, broadcast rights will have different fair use/fair dealing rules from copyright — nations get to choose whether their broadcast rights will have any fair dealing at all. That means that even if you want to reuse video is a way that’s protected by fair use (such as parody, quotation, commentary or education), the broadcast right version of fair use might prohibit it.

Worst of all: There’s no evidence that this is needed. No serious scholarship of any kind has established that creating another layer of property-like rights will add one cent to any country’s GDP. Indeed, given that this would make sites like Vimeo and YouTube legally impossible, it would certainly subtract a great deal from nations’ GDP — as well as stifling untold amounts of speech and creativity, by turning broadcasters into rent-seeking gatekeepers who get to charge tax on videos they didn’t create and whose copyright they don’t hold.

July 25, 2012

Reason.tv: Fan fiction versus copyright

Filed under: Books, Cancon, Law, Liberty, Media — Tags: , , , , — Nicholas @ 09:34

“It takes a big studio to make The Avengers, but it doesn’t necessarily take a big studio to write a piece of Avengers fan fiction,” says Georgetown University law professor and fan fiction advocate Rebecca Tushnet. “Big content companies largely recognize that fan activities are really good for them because they engage people.”

The growing popularity of fan fiction, a genre in which fans create their own stories featuring characters or settings from their favorite works of popular culture, raises thorny copyright issues. “Given how broad copyright is now, it’s now possible to say fan fiction is an infringing derivative work,” Tushnet explains. “In order to deal with that…we now talk about fair use, which allows people to make fair, limited uses of works without permission from the copyright owner.”

As a member of the Organization for Transformative Works, Tushnet works to defend fan fiction creators caught in the legal debate between protected intellectual property and fair use.

July 7, 2012

Tim Worstall: the software patent system is FUBAR’ed

Filed under: Business, Law, Technology — Tags: , , , , , , — Nicholas @ 11:05

In Forbes, Tim Worstall explains the odd situation of Amazon trying to obtain patents to use defensively when (not if) they get sued for entering the smartphone market:

… Amazon isn’t searching out patents which would allow it to build phones to, say, the GSM or CDMA standards. For those patents, by virtue of being included in those standards, must be made available to all comers on reasonable and non-discriminatory terms (RAND, or Europeans add “Fair” to the beginning to give FRAND). So any patent that is actually necessary to make a phone that interacts with the network is already available to them on exactly the same terms that Samsung, Apple, Nokia or anyone else pays for them.

No, what Amazon is looking for is just some bundle of patents, somewhere, that have something to do with mobile telephony. So that when (and sadly, it really is when, not if) they get sued by someone or other for breaching a patent then they’ve got some great big bundle of documents that they can wave back at them. Such patents can range from the possibly valid (slide to unlock perhaps) through to two that really irk me: Apple claiming a patent on a wedge shaped notebook and, unbelievably to me, on the layout of icons on the Galaxy Tablet in Europe.

I take this to be evidence that the technology patent system has simply got out of hand: that the system is entirely Fubar in fact. We need to recall what a patent is supposed to do: it is not that intellectual property is some God given right. Rather, we realise that given that ideas and technologies are public goods it is very difficult to make money out of having invented them. Thus we artificially create intellectual property in the form of patents and trademarks. But we are always walking a narrow line between encouraging invention by awarding such rights and discouraging derivative inventions by awarding rights that are too strong.

July 5, 2012

Cisco “updates” consumer routers to allow tracking of internet usage, automatic bricking for terms & conditions violations

Filed under: Law, Liberty, Technology — Tags: , , , , , , — Nicholas @ 08:08

If you have a modern Cisco or LinkSys router on your home network, you may have just given up a significant amount in the last “update” the company distributed. ESR has the details:

For those of you who have missed the news, last a few days Cisco pushed a firmware update to several of its most popular routers that bricked the device unless you signed up for Cisco’s “cloud” service. To sign up, you had to agree to the following restrictions:

    When you use the Service, we may keep track of certain information related to your use of the Service, including but not limited to the status and health of your network and networked products; which apps relating to the Service you are using; which features you are using within the Service infrastructure; network traffic (e.g., megabytes per hour); internet history; how frequently you encounter errors on the Service system and other related information (“Other Information”).

So in order to continue using the hardware you bought and paid for and own, you have to agree to let Cisco snoop your browser history and monitor your traffic — a clickstream they would of course instantly turn around and sell to advertising agencies and other snoops. Those terms are so loose (“including but not limited to”) that they could legally read your email and sell that data too.

Disgusted enough yet? Wait, it gets better. The cloud terms of service also includes this gem:

    You agree not to use or permit the use of the Service: (i) to invade another’s privacy; (ii) for obscene, pornographic, or offensive purposes; (iii) to infringe another’s rights, including but not limited to any intellectual property rights; (iv) to upload, email or otherwise transmit or make available any unsolicited or unauthorized advertising, promotional materials, spam, junk mail or any other form of solicitation; (v) to transmit or otherwise make available any code or virus, or perform any activity, that could harm or interfere with any device, software, network or service (including this Service); or (vi) to violate, or encourage any conduct that would violate any applicable law or regulation or give rise to civil or criminal liability.

Translated out of lawyerese, this gives Cisco the right to brick your router if you use it to view anything Cisco considers pornography, or do anything that it might consider IP theft — like, say, bit-torrenting a movie. Or even if you send anything it considers unsolicited advertising — which doesn’t have to mean bulk spam, see “any other form of solicitation”?

The sum of these paragraphs is: “We control your digital life. We can spy on you, we can filter your traffic, we can cut off your net access unilaterally if you do anything we don’t like, and you have no recourse.”

The idea of replacing your router with one that can load and run an open source rather than proprietary system just became a lot more enticing (such things do already exist, although not for all routers).

July 4, 2012

ACTA rejected decisively by European Parliament

Filed under: Europe, Law, Media — Tags: , , , , — Nicholas @ 09:37

Apparently even the insulated, protected European Parliament can be moved if enough people are actively against something — in this case it was the Anti-Counterfeiting Trade Agreement (ACTA). Michael Geist explains:

When ACTA was formally signed by most participants in October 2011 in Tokyo, few would have anticipated that less than a year later, the treaty would face massive public protests and abandonment by leading countries. But with tens of thousands taking to the streets in Europe earlier this year, ACTA became the poster child for secretive, one-sided IP agreements that do not reflect the views and hopes of the broader public. This morning, the European Parliament voted overwhelmingly against the agreement, effectively killing ACTA within the EU. The vote was 478 against, 39 in favour, with 165 abstentions. This is a remarkable development that was virtually unthinkable even a year ago. Much credit goes to the thousands of Europeans who spoke out against ACTA and to the Members of the European Parliament who withstood enormous political pressure to vote against the deal.

The European developments have had a ripple effect, with the recent Australian parliamentary committee recommendation to delay ACTA ratification and the mounting opposition around the world. ACTA is not yet dead — it may still eke out the necessary six ratifications in a year or two for it to take effect — but it is badly damaged and will seemingly never achieve the goals of its supporters as a model for other countries to adopt and to emerge as a new global standard for IP enforcement. That said, ACTA supporters will not take today’s decision as the final verdict. In the coming weeks and months, we can expect new efforts to revive the agreement within Europe and to find alternative means to implement its provisions. That suggests the fight will continue, but for today, it is worth celebrating how the seemingly impossible — stopping a one-sided, secretly negotiated global IP agreement — became possible.

This has been referred to as the biggest parliamentary defeat ever for a European Commission initiative. In theory, the ACTA treaty cannot be enacted into EU law without being approved by the European Parliament (although, as we’ve seen before, the EU is adept at getting around minor inconveniences like referenda and recalcitrant national governments).

April 28, 2012

Charles Stross analyzes the economic and technical arguments for removing DRM on ebooks

Filed under: Books, Business, Economics, Media — Tags: , , , — Nicholas @ 00:08

A post at Charles Stross’s blog from earlier this week, when Macmillan announced that they were removing DRM from their ebook lines:

After I recommended that the major publishers drop mandatory DRM from their ebook products, I realized that my essay had elided a bunch of steps in my thinking, and needed to reconsider some points. Then I realized that it’s not a simple, straightforward argument to make. Consequently, I ended up writing another essay, although I’ve tried to summarize my conclusions below.

First, my conclusions:

1. The rapid current pace of change in the electronic publishing sector is driven by the consumer electronics and internet industry. It’s impossible to make long term publishing plans (3-10 years) without understanding these other industries and the priorities of their players. It is important to note that the CE industry relies on selling consumers new gadgets every 1-3 years. And it is through their gadgets that readers experience the books we sell them. Where is the CE industry taking us?

2. Dropping DRM across all of Macmillans products will not have immediate, global, positive effects on revenue in the same way that introducing the agency model did …

3. However, relaxing the requirement for DRM across some of Macmillans brands will have very positive public relations consequences among certain customer demographics, notably genre readers who buy large numbers of books (and who, while a minority in absolute numbers, are a disproportionate source of support for the midlist).

4. Longer term, removing the requirement for DRM will lower the barrier to entry in ebook retail, allowing smaller retailers (such as Powells) to compete effectively with the current major incumbents. This will encourage diversity in the retail sector, force the current incumbents to interoperate with other supply sources (or face an exodus of consumers), and undermine the tendency towards oligopoly. This will, in the long term, undermine the leverage the large vendors currently have in negotiating discount terms with publishers while improving the state of midlist sales.

Now the details:

April 20, 2012

Reason.tv: Too Much Copyright

Filed under: Law, Liberty, Media — Tags: , , , , , , , — Nicholas @ 07:45

“This disconnect between the public’s view of copyright and fair use and what should and should not be prosecuted, versus the ‘copyright maximist’ view of the law, is our generation’s Prohibition,” says Ben Huh, CEO and founder of Cheezburger and a loud voice in the recent backlash to SOPA and PIPA, two congressional bills aimed at curbing internet piracy.

Copyright exists to “promote the useful arts” according to the Constitution. But is it still doing that? And should the government protect so-called “intellectual property” in the same way it protects other forms of property? Reason.tv posed these questions to Ben Huh, as well as a professor and a movie studio representative.

Tom Bell, a law professor specializing in property law, has serious reservations about attempts by groups like the Motion Picture Association of America (MPAA) to equate property and copyright through ad campaigns admonishing viewers with messages like, “You wouldn’t steal a car. Downloading pirated movies is stealing.”

“As soon as we start using [the word] ‘copyright’ for ‘property,’ we start taking less seriously our property rights for things like cars and houses,” says Bell. “When you steal a candy bar or a car, you’ve left somebody without something to eat or something to drive.”

April 14, 2012

Colombia tries to butter up Obama with “quickie” SOPA rules

Filed under: Americas, Law, Liberty, Media, Technology — Tags: , , , , , , — Nicholas @ 10:26

Colombia buckles under intense US lobbying to introduce SOPA-like copyright rules in time for President Obama’s visit:

President Obama is heading to Colombia this weekend for a summit, and we’d been hearing stories that US officials had been putting tremendous pressure on Colombian officials to pass new, ridiculously draconian copyright laws ahead of that visit. So that’s exactly what the Colombian government did — using an “emergency procedure” to rush through a bad bill that is quite extreme.

Earlier this year, Colombia tried to pass basically the same bill, which was called LesLleras, after Interior Minister German Vargas Lleras (who proposed it). That bill was so extreme that it resulted in SOPA-like protests, following significant concerns raised by the public as well as copyright and free speech experts. So, this time around, the government just claimed it was an emergency and rushed the bill through, despite all of its problems. They seemed to think that the public wouldn’t notice — but they’re wrong.

As is typical of idiotic trade agreements pushed via the USTR — who only seems to listen to Hollywood on these issues — the copyright bill includes all sorts of draconian enforcement techniques and expansions of existing copyright law, and removal of free speech rights. But what it does not include are any exceptions to copyright law — the very important tools that even the US Supreme Court admits are the “safety valves” that stop copyright law from being abusive, oppressive and contrary to freedom of speech

February 23, 2012

Michael Geist on why Canada should not appear in the US piracy watchlist

Filed under: Cancon, Law, Liberty, Media, Technology, USA — Tags: , , , , — Nicholas @ 13:16

You’d think, as Canada ranks 13th in the world for strength of intellectual property protection (much higher than the US at 24th spot), there’d be no question that Canada should not be considered as a “piracy haven”. But you’d be wrong:

In what has become an annual rite of spring, each April the U.S. government releases its Special 301 report — often referred to as the Piracy Watch List — which claims to identify countries with sub-standard intellectual property laws. Canada has appeared on this list for many years alongside dozens of countries. In fact, over 70% of the world’s population is placed on the list and most African countries are not even considered for inclusion.

While the Canadian government has consistently rejected the U.S. list because it “basically lacks reliable and objective analysis”, this year I teamed up with Public Knowledge to try to provide the U.S. Trade Representative Office with something a bit more reliable and objective. Public Knowledge will appear at a USTR hearing on Special 301 today. In addition, last week we participated in meetings at the U.S. Department of Commerce and USTR to defend current Canadian copyright law and the proposed reforms.

The full submission on Canadian copyright is available here. It focuses on four main issues: how Canadian law provides adequate and effective protection, how enforcement is stronger than often claimed, why Canada is not a piracy haven, and why Bill C-11 does not harm the interests of rights holders (critics of Bill C-11 digital lock rules will likely think this is self-evident).

January 22, 2012

Paulo Coelho: Pirate my work!

Filed under: Books, Law, Liberty, Media, Technology — Tags: , , , — Nicholas @ 11:48

Paulo Coelho finds himself on the opposite side of an issue from where he “should be”:

As an author, I should be defending ‘intellectual property’, but I’m not.

Pirates of the world, unite and pirate everything I’ve ever written!

The good old days, when each idea had an owner, are gone forever. First, because all anyone ever does is recycle the same four themes: a love story between two people, a love triangle, the struggle for power, and the story of a journey. Second, because all writers want what they write to be read, whether in a newspaper, blog, pamphlet, or on a wall.

The more often we hear a song on the radio, the keener we are to buy the CD. It’s the same with literature.

The more people ‘pirate’ a book, the better. If they like the beginning, they’ll buy the whole book the next day, because there’s nothing more tiring than reading long screeds of text on a computer screen.

H/T to Cory Doctorow for the link.

January 20, 2012

Julian Sanchez on SOPA/PIPA: “No matter how bad last season’s crops were, witch burnings are a poor policy response”

Filed under: Economics, Law, Liberty, Media, USA — Tags: , , , , — Nicholas @ 00:08

In a posting at the Cato@Liberty blog, Julian Sanchez discusses the claims of SOPA/PIPA supporters that new legislation is necessary to fight piracy:

Earlier this month, I detailed at some length why claims about the purported economic harms of piracy, offered by supporters of the Stop Online Piracy Act (SOPA) and PROTECT-IP Act (PIPA), ought to be treated with much more skepticism than they generally get from journalists and policymakers. My own view is that this ought to be rather secondary to the policy discussion: SOPA and PIPA would be ineffective mechanisms for addressing the problem, and a terrible idea for many other reasons, even if the numbers were exactly right. No matter how bad last season’s crops were, witch burnings are a poor policy response. Fortunately, legislators finally seem to be cottoning on to this: SOPA now appears to be on ice for the time being, and PIPA’s own sponsors are having second thoughts about mucking with the Internet’s Domain Name System.

That said, I remain a bit amazed that it’s become an indisputable premise in Washington that there’s an enormous piracy problem, that it’s having a devastating impact on U.S. content industries, and that some kind of aggressive new legislation is needed tout suite to stanch the bleeding. Despite the fact that the Government Accountability Office recently concluded that it is “difficult, if not impossible, to quantify the net effect of counterfeiting and piracy on the economy as a whole,” our legislative class has somehow determined that — among all the dire challenges now facing the United States — this is an urgent priority. Obviously, there’s quite a lot of copyrighted material circulating on the Internet without authorization, and other things equal, one would like to see less of it. But does the best available evidence show that this is inflicting such catastrophic economic harm — that it is depressing so much output, and destroying so many jobs — that Congress has no option but to Do Something immediately? Bearing the GAO’s warning in mind, the data we do have doesn’t remotely seem to justify the DEFCON One rhetoric that now appears to be obligatory on the Hill.

The International Intellectual Property Alliance — a kind of meta-trade association for all the content industries, and a zealous prophet of the piracy apocalypse, released a report back in November meant to establish that copyright industries are so economically valuable that they merit more vigorous government protection. But it actually paints a picture of industries that, far from being “killed” by piracy, are already weathering a harsh economic climate better than most, and have far outperformed the overall U.S. economy through the current recession. The “core copyright industries” have, unsurprisingly, shed some jobs over the past few years, but again, compared with the rest of the economy, employment seems to have held relatively stable at a time when you might expect cash-strapped consumers to be turning to piracy to save money.

January 13, 2012

Movie and music piracy: what’s the real economic cost?

Filed under: Economics, Law, Media — Tags: , , , , — Nicholas @ 09:00

On the Freakonomics blog, Kal Raustiala and Chris Sprigman look at the actual costs of piracy compared to the ludicrous claimed costs:

Supporters of stronger intellectual property enforcement — such as those behind the proposed new Stop Online Piracy Act (SOPA) and Protect IP Act (PIPA) bills in Congress — argue that online piracy is a huge problem, one which costs the U.S. economy between $200 and $250 billion per year, and is responsible for the loss of 750,000 American jobs.

These numbers seem truly dire: a $250 billion per year loss would be almost $800 for every man, woman, and child in America. And 750,000 jobs — that’s twice the number of those employed in the entire motion picture industry in 2010.

The good news is that the numbers are wrong — as this post by the Cato Institute’s Julian Sanchez explains. In 2010, the Government Accountability Office released a report noting that these figures “cannot be substantiated or traced back to an underlying data source or methodology,” which is polite government-speak for “these figures were made up out of thin air.”

More recently, a smaller estimate — $58 billion — was produced by the Institute for Policy Innovation (IPI). But that IPI estimate, as both Sanchez and tech journalist Tim Lee have pointed out, is replete with methodological problems, including double- and triple-counting, that swell the estimate of piracy losses considerably.

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