Inequality Promotion

Inequality Promotion data point: Intellectual Protectionist CEO pay

Tuesday, May 7th, 2013

Confirming my biases we have For Media Moguls, Paydays That Stand Out. Media company CEOs are the highest compensated of any industry, and are far more highly compensated relative to market capitalization than any other (as has often been pointed out, media companies are a small part of the overall economy and in theory ought to just be bought out in order to end their assault on freedom of communications).

But an even higher proportion of the most compensated CEOs are dependent on intellectual protectionism than is accounted for by the media category. #1 is the CEO of Oracle, #6 is the CEO of Nike (I’m guessing that suppression of counterfeiting is significant), and would-be (due to late filing) #2 is the CEO of Activision-Blizzard, a gaming software company.

Why are IP CEOs unusually highly compensated (thus unusually contributing to inequality)? Why? The article cites concentrated ownership and weak governance of media companies (which begs another question) and concludes:

For the time being, traditional media business models are prospering and the leaders of the incumbents are fat and happy. But that might make them bigger, slower targets and in the end, easier to overtake.

I wouldn’t count on it. If you think inequality is a problem (inherently or because it leads to inequality of power, then law) then intellectual protectionism must be attacked on policy and product fronts.

Pat Choate and Intellectual Protectionism

Saturday, April 13th, 2013

From at least the mid-1980s through the mid-1990s Pat Choate seemed to me to be the go-to pundit for anti-foreign (where “foreign” means “not USian”) punditry. His basic view seemed to be that foreign businesses, governments, and people were bad and sought to undermine everything USian. Hence he was opposed to trade and immigration, and sought a variety of nationalist and nativist policies to fight this conspiracy. I hated everything he wrote. “Protectionist” was a charitable description of him.

He ran for VP with Ross Perot in 1996. I ceased to notice him from about that time, probably largely because I started to cut back on following the spectacle of current events around then.

Today I learned via two posts at Techdirt that Choate had by 2005 (date of a book he wrote titled Hot Property, with hilarious burning compact disc book cover art) added intellectual protectionism to his repertoire:

We recently posted about an absolutely ridiculous NY Times op-ed piece in which Pat Choate argued both that patent laws have been getting weaker, and that if we had today’s patent laws in the 1970s that Apple and Microsoft wouldn’t have survived since bigger companies would just copy what they were doing and put them out of business. We noted that this was completely laughable to anyone who knew the actual history. A day or so ago, someone (and forgive me, because I can no longer find the tweet) pointed me on Twitter to a 45 minute excerpt from a documentary about the early days of Microsoft and Apple and it’s worth watching just to show how laughably wrong Choate obviously is.

I’m sorry to report that I get some dim satisfaction from learning that Choate’s trajectory led him to intellectual protectionism and feel some additional validation for using that term to describe copyright, patent, trademark, and nearby.

I also noticed today, in searching for “intellectual protectionism”, that Rick Falkvinge is thinking about using the term. I endorse that, though more recently my preferred expansion of “IP” is Inequality Promotion — “intellectual” and “protect” each sound nice, and there’s precious little about equality in “IP” discourse. But there is a bit about inequality in the first use I can find of “intellectual protectionism” more or less in contrast to “intellectual property”, a 1999 OECD publication The Future of the Global Economy: Towards a Long Boom? in a description of a “high friction world” scenario:

This is a winner-take-all economy where a small knowledge elite captures most of the economic value. The economic structure rewards a few and leaves the great majority behind. The resulting social friction of a two-tier society consisting of “knows” and “know-nots” consumes much of the economy’s potential in a vicious cycle.

The fruits of innovation drive economic growth in some parts of the world, creating local islands of prosperity. Highly educated knowledge workers do very well, but a modest education produces little economic benefit. Low wages characterise most service and manufacturing work. Overall, organisations evolve very slowly and remain mainly traditional in form. The “fast” gradually pull away from the “slow”. Highly divergent outcomes result as a few countries do well behind high-security shields and others fall behind. Intellectual protectionism is rife and the free flow of ideas is highly constrained by those who want to protect the value of their intellectual property and those who want to prevent the informational “pollution” of their populations.

Realize Document Freedom Day

Wednesday, March 27th, 2013

Open formats and open standards are excellent causes, but without free/open source software implementations and widespread adoption thereof, the causes are uphill battles, at best. So I’m appalled that the Document Freedom Day (which is today, March 27) website information and suggested actions are merely conceptual.

Let’s fix that, here’s the deal. Download, try, become an expert:

LibreOffice. If in 2013 you’re still using Microsoft Office, you’re either in an organization/industry with extreme lock-in through custom business automation or similar that is built exclusively on Microsoft tools, or you’re actively contributing to the destruction of freedom and equality in the world. If you’ve never tried LibreOffice, or if you’ve tried one of its predecessors (OpenOffice) more than a year ago, try LibreOffice (again) now. It’s excellent, including at reading and writing non-free document formats, a necessity for adoption. But most of the value in software is not inherent, rather in many people using and knowing the software. Network effects rule, and you can make a huge difference! If you can’t be bothered, make up for it with a large donation to The Document Foundation, LibreOffice’s nonprofit organization.

As the DFD website explains, document freedom isn’t just about word processor and spreadsheet documents, or even just about storage formats, but any format used to store or transmit data. Thus I put Jitsi as the second most important application to use in order to realize document freedom. It implements open standards such as XMPP and SIP to provide all of the functionality of Skype, which is completely proprietary in its formats and implementation, willing to work with oppressive governments, and increasingly castigated as bloatware or even malware by people who don’t care much about freedom. Jitsi recently released 2.0. If in the unlikely event you’ve tried it before, it’s definitely worth another look.

Probably everyone knows about Firefox, but not everyone uses it, and it does have the best support for open formats of the top browsers. Also, Firefox has progressed very nicely the last years.

Praise for Document Freedom Day

DFD has missed an opportunity to promote the realization of document freedom, but that would be good in addition to, not in place of their existing messages. Direct use of free software that implements open standards is incredibly powerful, but not the only way to make progress, and despite my mini-rant above The free software movement attaches too much political significance to personal practice. People should demand their governments and other institutions adopt open standards and free software, even if people cannot do so as individuals, just as people should generally demand adoption of good policy even if they cannot personally live wholly as if good policy were already in place.

DFD does a reasonable job of raising awareness of good policy. I strongly encourage doing a bit to realize document freedom today, but sharing a link to documentfreedom.org on your social networks helps too. Just a little bit, but what can you expect from clicktivism?

I expect pro-free/open clicktivism to promote the realization of freedom!

I have similar complaints about Defective By Design campaigns. Speaking of which, their No DRM in HTML5 campaign is highly pertinent to DFD!

Putatively “open” advocates and organizations sending around .docx files and such, above mini-rant applies especially to you.

April (a French free software organization) has some nice posters explaining open formats.

OA mandate, FLOSS contrast

Friday, February 22nd, 2013

The Obama administration:

has directed Federal agencies with more than $100M in R&D expenditures to develop plans to make the published results of federally funded research freely available to the public within one year of publication and requiring researchers to better account for and manage the digital data resulting from federally funded scientific research

A similar policy has been in place for NIH funded research for several years, and more are in the works around the world.

Peter Suber, as far as I can tell the preeminent chronicler of the Open Access (OA) movement, and one of its primary activists, seems to have the go-to summary post.

Congratulations and thanks to all OA activists. I want to take this particular milestone in order to make some exaggerated contrasts between OA and free/libre/open source software (FLOSS). I won’t bother with cultural, educational, and other variants, but assume they’re somewhere between and lagging overall.

  • OA is far more focused on end products (papers), FLOSS on modifiable forms (source)
  • OA is far more focused on gratis access (available on-line at no cost), FLOSS on removing legal restrictions (via public licenses)
  • OA has a fairly broad conception of info governance, FLOSS focused on class of public licenses, selection within that class
  • OA is far more focused on public and institutional policy (eg mandates like today’s), FLOSS on individual developer and user choices
  • OA is more focused on global ethics (eg access to knowledge in poor regions), FLOSS on individual developer and user ethics

If you’ve followed either movement you can think of exceptions. I suspect the above generalizations are correct as such, but tell me I’m wrong.

Career arrangements are an obvious motivator of some of these differences: science more institutional and tracked, less varied relative to programming. Thus where acting on individual ethics alone with regard to publishing is often characterized as suicidal for a scientist, it is welcome, but not extraordinary nor a cause for concern for a programmer. At the same time, FLOSS people might overestimate the effectiveness of individual choices, merely because they are relatively easy to make and expressive.

One can imagine a universe in which facts are different enough that the characteristics of movements for something like open research and software are reversed, eg no giant institutions and centralized funding, but radical individual ethics for science, dominance of amazing mainframes and push for software escrow for programming. Maybe our universe isn’t that bad, eh?

I do not claim one approach is superior to the other. Indeed I think there’s plenty each can learn from the other. Tip-of-the-iceberg examples: I appreciate those making FLOSS-like demands of OA, think those working on government and institutional policy in FLOSS should be appreciated much more, and the global ethical dimension of FLOSS, in particular with regard to A2K-like equality implications, badly needs to be articulated.

Beyond much needed learning and copying of strategies, some of those involved in OA and FLOSS (and that in between and lagging) might better appreciate each others’ objectives, their commonalities, and actively collaborate. All ignore computational dominance of everything at their peril, and software people self-limit, self-marginalize, even self-refute by limiting their ethics and action to software.

“Commoning the noosphere” sounds anachronistic, but is yet to be, and I suspect involves much more than a superset of OA and FLOSS strategy and critique.

Copyright mitigation, not balance

Monday, September 10th, 2012

EU Commission VP Neelie Kroes gave a speech on copyright reform that while surely among the best on the subject from a high level politician (Techdirt coverage) is fundamentally broken.

Kroes argues that a lot has changed in the last 14 years about how information is consumed, distributed, produced, and used in research and that copyright needs to adapt to these changes. If that argument eventually obtains significant mitigation of copyright, great, but it’s mostly wrong, and I suspect questions far too little and gives away way too much to all invested in the current regime. For example:

And now let’s remind ourselves what our objectives as policymakers should be for the creative sector.

We should help artists live from their art. Stimulate creativity and innovation. Improve consumer choice. Promote our cultural heritage. And help the sector drive economic growth.

We can’t look at copyright in isolation: you have to look at how it fits into the real world. So let’s ask ourselves: how well is the current system achieving those objectives, in the world we live in today?

What about freedom? Equality?

Regarding new technologies in the last 14 years, there have been some (and Kroes was not so bold as to even hint at Napster and successors, nor broad offenses against these and the web), but those are not at all what makes copyright mitigation interesting, except down in the weeds of how specific regulations interact with specific technologies and practices — the view of the universe from the vantage of administrators and agitators of the current regime — understandably, as this is where most day to day battles are fought.

Instead, mitigation of anti-commons information policy is interesting and desirable, and has been especially pertinent at various times (eg 1800s) throughout human history, because free speech is always desirable and under threat by the embarrassments of control, corruption, and rent seeking. These are not qualities to be “balanced”, but diseases to be mitigated as much and for as long as possible.

The objectives Kroes says policymakers should have are fine, if secondary. Copyright (and patents, and sadly more) simply should not be seen as relevant to any of them, except as a barrier to be mitigated, not balanced nor adapted.

Free as in Software Freedom Law Shows

Wednesday, July 18th, 2012

In the latest Free as in Freedom podcast Karen Sandler and Bradley Kuhn play a recording of and discuss my FOSDEM law&policy presentation from back in February. The podcast covered all but one FOSDEM law&policy talk, see the archives.

I’m very happy with how this episode turned out. I managed to at least briefly include more points in a half hour than I recall having done, and Sandler and Kuhn manage to discuss far more of them than I would’ve hoped. Listen (ogg, mp3) and refer to slides (pdf, odp).

Further notes on two issues mentioned in the discussion follow.

Equality and Freedom

I’m glad that Sandler mentioned free software’s great equality story. But, I should say what I mean by that. I don’t primarily mean equal access, though that’s important. I mean contributing to reducing inequality of income, wealth, power. I’ve done precious little to articulate this, and I don’t know anyone else who has either, but there’s a reason it is the very first of my suggested considerations for future policy. Similarly, I think free software’s grand freedom story is not the proximate freedoms to run, study, modify, share software, but their role in protecting and promoting a free society. Again, much more needs to be said, provocatively (and that, critiqued, etc). Software freedom and nearby ought be claiming space in the commanding heights of political dialogue.

Hardware design licensing

I’m glad that Kuhn stated that he sees no reason for not using GPLv3 for hardware designs, and scoffs (privately, I suppose) at people making up new licenses for the same. As far as I know there are two papers that try to make the case for new hardware design licenses, and as far as I can tell they both fail. But, as far as I know no FLOSS establishment institution has proclaimed the correctness of using GPLv3 or a compatible license for hardware designs, nor explained why, nor reached out to open hardware folk when discussing new such licenses. How can this change? Perhaps such people should be alerted to copyleft-next. Perhaps I should be happy that hardware has been long ignored; one can imagine a universe with an equally twisted late 1990s vintage GNU FHL to accompany the GNU FDL.

Joke background

CC0, passports, and (a related one from Asheesh Laroia is told on the show) credit cards.

In 2009 Sandler and Kuhn interviewed me for the previous podcast, the Software Freedom Law Show. I did not blog about it then, but much of the discussion is probably still pertinent, if you wish to listen.

Future of Copyright

Monday, April 30th, 2012

“Copyright” (henceforth, copyrestriction) is merely a current manifestation of humanity’s malgovernance of information, of commons, of information commons (the combination being the most pertinent here). Copyrestriction was born of royal censorship and monopoly grants. It has acquired an immense retinue of administrators, advocates, bureaucrats, goons, publicists, scholars, and more. Its details have changed and especially proliferated. But its concept and impact are intact: grab whatever revenue and control you can, given your power, and call your grabbing a “right” and necessary for progress. As a policy, copyrestriction is far from unique in exhibiting these qualities. It is only particularly interesting because it, or more broadly, information governance, is getting more important as everything becomes information intensive, increasingly via computation suffusing everything. Before returning to the present and future, note that copyrestriction is also not temporally unique among information policies. Restriction of information for the purposes of control and revenue has probably existed since the dawn of agriculture, if not longer, e.g., cults and guilds.

Copyrestriciton is not at all a right to copy a work, but a right to persecute others who distribute, perform, etc, a work. Although it is often said that a work is protected by copyrestriction, this is strictly not true. A work is protected through the existence of lots of copies and lots of curators. The same is true for information about a work, i.e., metadata, e.g., provenance. Copyrestriction is an attack on the safety of a work. Instead, copyrestriction protects the revenue and control of whoever holds copyrestriction on a work. In some cases, some elements of control remain with a work’s immediate author, even if they no longer hold copyrestriction: so-called moral rights.

Copyrestriction has become inexorably more restrictive. Technology has made it increasingly difficult for copyrestriction holders and their agents to actually restrict others’ copying and related activity. Neither trend has to give. Neither abolition nor police state in service of copyrestriction scenarios are likely in the near future. Nor is the strength of copyrestricition the only dimension to consider.

Free and open source software has demonstrated the ethical and practical value of the opposite of copyrestriction, which is not its absence, but regulation mandating the sharing of copies, specifically in forms suitable for inspection and improvement. This regulation most famously occurs in the form of source-requiring copyleft, e.g., the GNU General Public License (GPL), which allows copyrestriction holders to use copyrestriction to force others to share works based on GPL’d works in their preferred form for modification, e.g., source code for software. However, this regulation occurs through other means as well, e.g., communities and projects refusing to curate and distribute works not available in source form, funders mandating source release, and consumers refusing to buy works not available in source form. Pro-sharing regulation (using the term “regulation” maximally broadly to include government, market, and others; some will disbelieve in the efficacy or ethics of one or more, but realistically a mix will occur) could become part of many policies. If it does not, society will be put at great risk by relying in security through obscurity, and lose many opportunities to scrutinize, learn about, and improve society’s digital infrastructure and the computing devices individuals rely on to live their lives, and to live, period.

Information sharing, and regulation promoting and protecting the same, also ought play a large role in the future of science. Science, as well as required information disclosure in many contexts, long precedes free and open source software. The last has only put a finer point on pro-sharing regulation in relation to copyrestriction, since the most relevant works (mainly software) are directly subject to both. But the extent to which pro-sharing regulation becomes a prominent feature of information governance, and more narrowly, the extent to which people have software freedom, will depend mostly on the competitive success of projects that reveal or mandate revelation of source, the success of pro-sharing advocates in making the case that pro-sharing regulation is socially desirable, and their success in getting pro-sharing regulation enacted and enforced (again, whether in customer and funding agreements, government regulation, community constitutions, or other) much more so than copyrestriction-based enforcement of the GPL and similar. But it is possible that the GPL is setting an important precedent for pro-sharing regulation, even though the pro-sharing outcome is conceptually orthogonal to copyrestriction.

Returning to copyrestriction itself, if neither abolition nor totalism are imminent, will humanity muddle through? How? What might be done to reduce the harm of copyrestriction? This requires a brief review of the forces that have resulted in the current muddle, and whether we should expect any to change significantly, or foresee any new forces that will significantly impact copyrestriction.

Technology (itself, not the industry as an iterest group) is often assumed to be making copyrestriction enforcement harder and driving demands for for harsher restrictions. In detail, that’s certainly true, but for centuries copyrestriciton has been resilient to technical changes that make copying ever easier. Copying will continue to get easier. In particular the “all culture on a thumb drive” (for some very limited definition of “all”) approaches, or is here if you only care about a few hundred feature length films, or are willing to use portable hard drive and only care about a few thousand films (or much larger numbers of books and songs). But steadily more efficient copying isn’t going to destroy copyrestriction sector revenue. More efficient copying may be necessary to maintain current levels of unauthorized sharing, given steady improvement in authorized availability of content industry controlled works, and little effort to make unauthorized sharing easy and worthwhile for most people (thanks largely to suppression of anyone who tries, and media management not being an easy problem). Also, most collection from businesses and other organizations has not and will probably not become much more difficult due to easier copying.

National governments are the most powerful entities in this list, and the biggest wildcards. Although most of the time they act roughly as administrators or follow the cue of more powerful national governments, copyrestriction laws and enforcement are ultimately in their courts. As industries that could gain from copyrestriction grow in developing nations, those national governments could take on leadership of increasing restriction and enforcement, and with less concern for civil liberties, could have few barriers. At the same time, some developing nations could decide they’ve had enough of copyrestriction’s inequality promotion. Wealthy national governments could react to these developments in any number of ways. Trade wars seem very plausible, actual war prompted by a copyrestriction or related dispute not unimaginable. Nations have fought stupid wars over many perceived economic threats.

The traditional copyrestriction industry is tiny relative to the global economy, and even the U.S. economy, but its concentration and cachet make it a very powerful lobbyist. It will grab all of the revenue and control it possibly can, and it isn’t fading away. As alluded to above, it could become much more powerful in currently developing nations. Generational change within the content industry should lead to companies in that industry better serving customers in a digital environment, including conceivably attenuating persecution of fans. But it is hard to see any internal change resulting in support for positive legal changes.

Artists have always served as exhibit one for the content industry, and have mostly served as willing exhibitions. This has been highly effective, and every category genuflects to the need for artists to be paid, and generally assumes that copyrestriction is mandatory to achieve this. Artists could cause problems for copyrestriction-based businesses and other organizations by demanding better treatment under the current system, but that would only effect the details of copyrestriction. Artists could significantly help reform if more were convinced of the goodness of reform and usefulness of speaking up. Neither seems very likely.

Other businesses, web companies most recently, oppose copyrestriction directions that would negatively impact their businesses in the short term. Their goal is not fundamental reform, but continuing whatever their current business is, preferably with increasing profits. Just the same as content industries. A fundamental feature of muddling through will be tests of various industries and companies to carve out and protect exceptions. And exploit copyrestriction whenever it suits them.

Administrators, ranging from lawyers to WIPO, though they work constantly to improve or exploit copyrestriciton, will not be the source of significant change.

Free and open source software and other constructed commons have already disrupted a number of categories, including server software and encyclopedias. This is highly significant for the future of copyrestriction, and more broadly, information governance, and a wildcard. Successful commons demonstrate feasibility and desirability of policy other than copyrestriction, help create a constituency for reducing copyrestriction and increasing pro-sharing policies, and diminish the constituency for copyrestriction by reducing the revenues and cultural centrality of restricted works and their controlling entities. How many additional sectors will opt-in freedom disrupt? How much and for how long will the cultural centrality of existing restricted works retard policy changes flowing from such disruptions?

Cultural change will affect the future of copyrestriction, but probably in detail only. As with technology change, copyrestriction has been incredibly resilient to tremendous cultural change over the last centuries.

Copyrestriction reformers (which includes people who would merely prevent additional restrictions, abolitionists, and those between and beyond, with a huge range of motivations and strategies among them) will certainly affect the future of copyrestriction. Will they only mitigate dystopian scenarios, or cause positive change? So far they have mostly failed, as the political economy of diffuse versus concentrated interests would predict. Whether reformers succeed going forward will depend on how central and compelling they can make their socio-political cause, and thus swell their numbers and change society’s narrative around information governance — a wildcard.

Scholars contribute powerfully to society’s narrative over the long term, and constitute a separate wildcard. Much scholarship has moved from a property- and rights-based frame to a public policy frame, but this shift as yet is very shallow, and will remain so until a property- and rights-basis assumption is cut out from under today’s public policy veneer, and social scientists rather than lawyers dominate the conversation. This has occurred before. Over a century ago economists were deeply engaged in similar policy debates (mostly regarding patents, mostly contra). Battles were lost, and tragically economists lost interest, leaving the last century’s policy to be dominated by grabbers exploiting a narrative of rights, property, and intuitive theory about incentives as cover, with little exploration and explanation of public welfare to pierce that cover.

Each of the above determinants of the future of copyrestriction largely hinge on changing (beginning with engaging, in many cases) people’s minds, with partial exceptions for disruptive constructed commons and largely exogenous technology and culture change (partial as how these develop will be affected by copyrestriction policy and debate to some extent). Even those who cannot be expected to effect more than details as a class are worth engaging — much social welfare will be determined by details, under the safe assumption that society will muddle through rather than make fundamental changes.

I don’t know how to change or engage anyone’s mind, but close with considerations for those who might want to try:

  • Make copyrestriction’s effect on wealth, income, and power inequality, across and within geographies, a central part of the debate.
  • Investigate assumptions of beneficent origins of copyrestriction.
  • Tolerate no infringement of intellectual freedom, nor that of any civil liberty, for the sake of copyrestriction.
  • Do not assume optimality means “balance” nor that copyrestriction maximalism and public domain maximalism are the poles.
  • Make pro-sharing, pro-transparency, pro-competition and anti-monopoly policies orthogonal to above dimension part of the debate.
  • Investigate and celebrate the long-term policy impact of constructed commons such as free and open source software.
  • Take into account market size, oversupply, network effects, non-pecuniary motivations, and the harmful effects of pecuniary motivations on creative work, when considering supply and quality of works.
  • Do not grant that copyrestriction-based revenues are or have ever been the primary means of supporting creative work.
  • Do not grant big budget movies as failsafe argument for copyrestriction; wonderful films will be produced without, and even if not, we will love whatever cultural forms exist and should be ashamed to accept any reduction of freedom for want of spectacle.
  • Words are interesting and important but trivial next to substance. Replace all occurrences of “copyrestriction” with “copyright” as you see fit. There is no illusion concerning our referent.

This work takes part in the and is published under the CC BY-SA 3.0 license.

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Intellectual Protectionism’s regressive double taxation of the real economy

Sunday, April 29th, 2012

How Apple Sidesteps Billions in Taxes:

Almost every major corporation tries to minimize its taxes, of course. For Apple, the savings are especially alluring because the company’s profits are so high. Wall Street analysts predict Apple could earn up to $45.6 billion in its current fiscal year — which would be a record for any American business.

For anyone slightly concerned about inequality, this record ought to raise another red flag concerning the effect of copyright and patent monopolies. (Similarly, review a list of the wealthiest individuals.)

Apple serves as a window on how technology giants have taken advantage of tax codes written for an industrial age and ill suited to today’s digital economy. Some profits at companies like Apple, Google, Amazon, Hewlett-Packard and Microsoft derive not from physical goods but from royalties on intellectual property, like the patents on software that makes devices work. Other times, the products themselves are digital, like downloaded songs. It is much easier for businesses with royalties and digital products to move profits to low-tax countries than it is, say, for grocery stores or automakers. A downloaded application, unlike a car, can be sold from anywhere.

The growing digital economy presents a conundrum for lawmakers overseeing corporate taxation: although technology is now one of the nation’s largest and most valued industries, many tech companies are among the least taxed, according to government and corporate data. Over the last two years, the 71 technology companies in the Standard & Poor’s 500-stock index — including Apple, Google, Yahoo and Dell — reported paying worldwide cash taxes at a rate that, on average, was a third less than other S.& P. companies’. (Cash taxes may include payments for multiple years.)

First tax: monopoly pricing. Second tax: burden shifted to entities less able to move profits. Remove monopolies for much good, then resume debate about all aspects of taxation per usual, as you wish.

Caveats:

  • Real economy usually refers to non-financial sector. Suggestions welcome for non-IP sector.
  • I may be double counting: without copyright and patent, “real” economy share of profits would increase, tax burden concomitantly.
  • Not all profits that are easy to move result from copyright and patent, e.g., I suspect a small proportion of Google’s profits are even indirectly resulting from such.
  • There are more non-IP than IP-related entities on record wealth and profit lists, in particular natural resource entities. I don’t claim IP is the dominant source of inequality — but surely an increasing one — and more easily mitigated than natural resource entities, or for that matter, dictators and other state entities, which I wish were included on rich lists.

Counterfeiting against inequality and addiction

Tuesday, January 24th, 2012

When I read articles blaming advertisers for the bad behavior of (especially relatively poor) people who want advertised products (quoted material below mostly from linked story) I tend to think:

  1. To the extent “corporate pushers have made us addicts”:
    1. As a letter-to-the-editor from Michael Slembrouck says “You can ask your dealer to stop selling you dope because you have a problem, but if you keep giving him money he’s going to keep giving you the same dope.”
    2. It seems to me that being able to ignore/forgo potentially addictive messages/products is an important survival skill.
  2. More [free] speech (broadly speaking) is the answer:
    1. What is the hidden role of patent and trademark? In other words, what is the role of lack of cheap copies? Cheap copies would reduce incentive to advertise in the first place, and also reduce “the dreary feeling many get from walking by store windows knowing society offers no legal path for them to ever possess what is inside.” Is bad behavior supposedly related to lack of access to fashionable items reduced where counterfeit goods are plentiful? That’s a serious question, though of course answers will largely be swamped by cross cultural confounders.
    2. Regarding addiction and other adverse things characterized as such, I still think one of the best messages trusted figures (friends, ministers, the famous, etc) can convey is how totally unacceptable it is to follow spam — and I consider advertising to include a continuum from spam to useful information, with that critiqued as solely “manufacturing desire” tending toward the spam end.
    3. If advertising is so powerful, why not use it more for counter-addiction-and-other-adverse-messages? In the link above, I wished for the Ad Council to run a don’t-click-on-spam campaign. Maybe too close to its membership for comfort. Fortunately, access to media has improved greatly, including access to organizing for access to media. Hopefully things like LoudSauce (crowdfunded advertising) will help make that happen.

As indicated by the title, I mostly blogged this for 2(a). I think the contribution of intellectual protectionism to inequality is woefully underexplored and underexploited. I made a new category on this blog, Inequality Promotion, to remind me to attempt further exploration and exploitation.