Post Intellectual Protectionism

Evidence-free Policy

Saturday, April 23rd, 2005

James Boyle’s Deconstructing Stupidity column in the Financial Times has gotten lots of well-deserved linkage. Unfortunately that linkage is almost completely devoid of analysis, perhaps excepting posts from Karl-Friedrich Lenz and Donna Wentworth.

Too bad, as Boyle makes a couple of interesting claims. The first is that for intellectual property “our policy-process is almost evidence-free.” Or worse, decisions run contrary to available evidence, as Boyle explored in more depth in a column on database rights last November. However, Boyle implies that there is something special about intellectual property policy (emphasis added):

Since only about 4 per cent of copyrighted works more than 20 years old are commercially available, this locks up 96 per cent of 20th century culture to benefit 4 per cent. The harm to the public is huge, the benefit to authors, tiny. In any other field, the officials responsible would be fired. Not here.

I wish IP policymakers were particularly stupid and immune to the consequences of their decisions as compared to policymakers in other fields. Unfortunately the same bad decisions get made again and again, regardless of contrary evidence, in field after field, at least in those where decisions are political. Three examples off the top of my head:

I could make this list very long and I’m sure you can think of many other cases.

What to do about it? The Journal of the American Planning Association paper linked directly above wants malpractice for planners:

The policy implications of our findings are clear. First, the findings show that a major planning and policy problem—namely misinformation—exists for this highly expensive field of public policy. Second, the size and perseverance over time of the problem of misinformation indicate that it will not go away by merely pointing out its existence and appealing to the good will of project promoters and planners to make more accurate forecasts. The problem of misinformation is an issue of power and profit and must be dealt with as such, using the mechanisms of transparency and accountability we commonly use in liberal democracies to mitigate rent-seeking behavior and the misuse of power. To the extent that planners partake in rent-seeking behavior and misuse of power, this may be seen as a violation of their code of ethics—that is, malpractice. Such malpractice should be taken seriously by the responsible institutions.

Failing to do so amounts to not taking the profession of planning seriously.

Many of the authors’ suggestions may improve the situation and some could be applied to other areas of political decisionmaking. I’ll also take the opportunity to flog yet again policy markets. See the last paragraph of this post for more links and explanation.

Another suggestion is to simply reduce the scope of political decisionmaking. However, this is rarely a popular strategy. “Do something” is always the order of the day. Regardless of how ill considered something may be it is always more appealing than doing nothing. In the case of IP (how about Innovation Policy, there’s a non-pejorative repurposing of the acronym we can all agree on–turns out it is already in pretty wide use, though only 123,000 hits on Google versus 70,200,000 for intellectual property) that means extending copyright terms, expanding the scope of patents and of course more draconian enforcement. Who put the government in my bedroomgizmo?

Another interesting claim from Boyle:

To some the answer is obvious: corporate capture of the decision making process. This is a nicely cynical conclusion. But wait. There are economic interests on both sides. The film and music industries are tiny compared the consumer electronics industry. Yet copyright law dances to the tune played by the former, not the latter.

I suspect capture is not a paradoxical explanation of IP. Rights holders have a very concentrated interest in innovation policy decisions, the consumer electronics industry, much less so. A thought experiment demonstrates this: If tomorrow all works older than twenty years fell into the public domain, some rights holders of the freed works (a subset of the 4% available commercially!) would experience sharply reduced income as licensing revenues disappeared and very cheap copies came onto the market. Would you run out and buy more consumer electronics as a result? Eventually you might increase consumption of consumer electronics as a result of the availability of more and cheaper content, but I doubt it is something consumer electronics companies would count on.

Although I suspect capture is an important part of the explanation for the current dreadful state of innovation policy, Boyle does an excellent job of explaining some additional factors, including maximalism, roughly equivalent to the “do something” political imperative, authorial romance, and changes in the composition of those directly affected by IP law.

I believe that like maximalism, various romances (delusions) are at the heart of public acceptance of demonstrably failed policies. Boyle mentions in passing that many delusions are honestly held rather than being the result of corruption. I fear that this only makes positive change via politics more difficult.

Imperial Public License

Friday, April 8th, 2005

This is too stupid to blog, but I’m going to go ahead and expose my inability to exercise self restraint on my moron level intelligence.

CNET reports on Sun executive Jonathan Schwartz critisizing the GPL as a tool of U.S. imperialism:

The GPL purports to have freedom at its core, but it imposes on its users “a rather predatory obligation to disgorge all their IP back to the wealthiest nation in the world,” the United States, where the GPL originated, Schwartz said. “If you look at the difference between the license we elected to use and GPL, there are no obligations to economies or universities or manufacturers that take the source code and embed it in (their own) code.”

This has got to be one of the more wrongheaded statements by software executives about free software (though I haven’t followed SCO in a long time).

Should one choose to incorporate GPL’d code in their software, there is an obligation to release the derived software’s code under the GPL. Anyone in the world may use the code under the GPL’s terms. Only in the sense that the U.S. is part of the world is there a requirement to “disgorge” relevant IP (the derived software’s code) to the U.S.

This is predatory and imperialistic in approximately the same manner that trade between people in different nations is considered by some to be predatory and imperialistic — it isn’t, except in the clouded heads of Schwartz and economic neanderthals.

Oh, and the geographic origin of the GPL is completely irrelevant.

Reported in the same story, Schwartz makes another wrongheaded argument. At least this one isn’t a complete non sequitur:

“Economies and nations need intellectual property (IP) to pull themselves up by their own bootstraps. I’ve talked to developing nations, representatives from academia and manufacturing companies that had begun to incorporate GPL software into their products, then…found they had an obligation to deliver their IP back into the world,” Schwartz said.

To the contrary, ignoring IP has proven a great way to develop quickly. The U.S. did not enforce European claims until the 1890s. More recently all of the Asian tigers have engaged in copycat development. Imitation is simply a great way to quickly close the technology gap with the most advanced economies. IP owners in the U.S. and other advanced economies want governments of developing economies to enforce strong IP — becuase that is in the IP owners’ interest, not because it is a reasonable development strategy.

By the way, ignoring IP can mean ignoring the requirements of the (copyright dependent) GPL as well.

Via Dana Blankenhorn.

Also today, read about Jonathan Schwartz, visionary.

H C

Wednesday, March 23rd, 2005

This music had every cell and fiber in my body on heavy sizzle mode.

Thurston Moore on mixtapes, could be describing me listening to early Sonic Youth or one of my many ecstasy-inducing 120 minute cassettes that I’m mostly afraid to touch, really need to digitize. Yes, Moore relates it all to MP3, P2P, etc., sounding like he’s from the EFF:

Once again, we’re being told that home taping (in the form of ripping and burning) is killing music. But it’s not: It simply exists as a nod to the true love and ego involved in sharing music with friends and lovers. Trying to control music sharing – by shutting down P2P sites or MP3 blogs or BitTorrent or whatever other technology comes along – is like trying to control an affair of the heart. Nothing will stop it.

[Via Lucas Gonze.]

I’d like little more right now than to have Sonic Youth or one of Moore’s many avant projects to release some crack under a Creative Commons license. Had they already you could maybe find it via the just released Yahoo! Search for Creative Commons. (How’s that for a lame segue?)

Shallow thinking about filesharing

Monday, February 7th, 2005

Tyler Cowen “cannot accept the radical anti-copyright position” and so proffers apologia for the radical intellectual protectionist position. (NB no anti-copyright position is being argued in MGM v. Grokster.) Regarding Cowen’s three arguments:

1. In ten year’s time, what will happen to the DVD and pay-for-view trades? BitTorrent allows people to download movies very quickly.

BitTorrent downloads tend to be faster than those on typical file sharing networks but still very slow. Netflix is a far superior option unless you place a very low value on your time (in addition to waiting many hours in the case of BitTorrent to weeks in the case of eDonkey for a download to complete you also need to spend time finding active torrents or hash links and dealing with low quality, mislabled and overdubbed copies, which often means starting over, even after you’ve learned how to deal with all of these. I pity the computer semi-literate who just wants to snag some “free” movies) .

Note that DVDs already account for more than half of Hollywood domestic revenue. Furthermore the process will be eased when TVs and computers can “talk” to each other more readily. Yes, I am familiar with Koleman Strumpf’s excellent work showing that illegal file-sharing has not hurt music sales. But a song download can be a loss leader for an entire CD or a concert tour. Downloading an entire movie does not prompt a person to spend money in comparable fashion.

Radical protectionists said made similar arguments about the VCR, as have those in countless businesses faced with new technology. In the case of the VCR, entrepreneurs figured out how to use the new technology to make billions. Similarly, it should be up to entrepreneurs to figure out how to thrive in the environment of ubiquitous networking, rather than up to lawmakers to ensure existing businesses survive technological change.

2. Perhaps we can make file-sharing services identify (and block) illegally traded files. After all, the listeners can find the illegal files and verify they have what they wanted. Grokster, sooner or later, will be able to do the same. Yes, fully decentralized and “foreign rogue” systems may proliferate, and any identification system will be imperfect. But this is one way to heed legitimate copyright suits without passing the notorious “Induce Act.”

Fully decentralized filesharing systems have proliferated. LimeWire is #2 at download.com and several other decentralized filesharing clients make the top 50 downloads list.

The imperfections of an identification and blocking system will include invasion of privacy and censorship.

3. I question the almost universal disdain for the “Micky Mouse” copyright extension act. OK, lengthening the copyright extension does not provide much in the way of favorable incentives. Who innovates with the expectation of reaping copyright revenues seventy-five years from now? But this is a corporate rather than an individual issue. Furthermore economic research indicates that current cash flow is a very good predictor of investment. So the revenue in fact stimulates additional investment in creative outputs. If I had my finger on the button, I still would have pushed “no” on the Mickey Mouse extension, if only because of the rule of law. Privileges of this kind should not be extended repeatedly due to special interest pressures. But we are fooling ourselves if we deny that the extension will benefit artistic output, at least in the United States.

The paper Cowen links to above (Cash Flow and Outcomes: How the Availability of Cash Impacts the Likelihood of Investing Wisely) is hardly encouraging regarding the efficacy of additional investments correlated with increased cash flow.

Eric Rescorla points out that subsidizing organizations that happen to hold copyright to work created 70 years ago is hardly the best way to subsidize new content creation, should one wish to do that.

Mass Destruction of Software Patents

Thursday, February 3rd, 2005

Is there something in the ether? Two people “near” me declare software patents potential “Weapons of Mass Destruction” yesterday and today, apparently having been struck by the idea independently: Patents as WMD’s from Mitch Kapor (Creative Commons is housed in his office space) and On Software Patents and WMDs from Ben Adida (who represents Creative Commons at the W3c).

Kapor and Adida have different scenarios in mind. Very roughly North Korea and Al Qaeda respectively.

See also Wikipedia on the software patent debate.

Infoanarchy, DRM and Celestial Jukebox

Monday, January 10th, 2005

On the brouhaha over Bill Gates’ interview with CNET at CES. The relevant bit:

[D]o you think intellectual-property laws need to be reformed?

No, I’d say that of the world’s economies, there’s more that believe in intellectual property today than ever. There are fewer communists in the world today than there were. There are some new modern-day sort of communists who want to get rid of the incentive for musicians and moviemakers and software makers under various guises. They don’t think that those incentives should exist.

And this debate will always be there. I’d be the first to say that the patent system can always be tuned–including the U.S. patent system. There are some goals to cap some reform elements. But the idea that the United States has led in creating companies, creating jobs, because we’ve had the best intellectual-property system–there’s no doubt about that in my mind, and when people say they want to be the most competitive economy, they’ve got to have the incentive system. Intellectual property is the incentive system for the products of the future.

The “communists” bit is the part that has gotten so many people worked up.

The Response. I enjoy calling out Gates’ idiocies as much as the next person, though much of the response I’ve seen has been a tad ebullient. Microsoft fans don’t create fascist art knockoffs when that company’s detractors incorrectly call it fascist. Glenn Otis Brown has the best response I’ve seen, posted on the Creative Commons weblog.

What Would Brezhnev Do? In a communist state would there be no financial incentives for artists? No, they’d simply be employed by the state. The Soviet Union took information control to extremes, including prohibiting use of photocopiers by scientists. I suspect that had the USSR survived to this day, the KGB would now be furiously trying to make Digital Restrictions Management work so as to gain access to a few of the wonders of computing without permitting open communication.

Advice to Gates. Call reformers anarchists rather than communists. For most people “anarchist” is derogatory and you wouldn’t be telling quite as much of a bald-faced lie.

The Real Issue. Forget labels. Gates’ substantial claim is that strong intellectual protectionism drives economic growth. Gates believes this. He isn’t simply shilling for MSFT’s latest strategy. It is on this point that Gates must be rebutted.

Apologies to you the reader and to Robert Nozick for this post’s overwrought title.

Individual Rights Management

Wednesday, December 29th, 2004

Cory Doctorow correctly lambastes those soft on DRM for the umpteenth time. The following excerpt sparked a thought:

DRM isn’t protection from piracy. DRM is protection from competition.

Reminds me of airport “security” and similar. In the essay IDs and the illusion of security Bruce Schneier makes a case (not nearly as forcefully as can be done) that

Identification and profiling don’t provide very good security, and they do so at an enormous cost.

I’d argue that most measures justified by “security” actually make us less secure, in part because of their enormous cost. Another time.

Anyway, I think there’s a nice (ugly) symmetry in the arguments of apologists for Digital Restrictions Management and the national security state. Both are really much about restricting competition.

[Schneier link via Anton Sherwood.]

Lexus, Mercedes, Porsche

Wednesday, December 29th, 2004

Tyler Cowen cites a Harper’s Index factoid:

Number of American five-year-olds named Lexus: 353

One of them works at Raisins, featured in the first South Park episode I ever watched and still my sentimental favorite. Every kid should watch this episode. If it is available on DVD I can’t find it, but search for “South Park 714” or “South Park Raisins” on any filesharing network — South Park episodes are among the most shared content.

Also see Christian Hard Rock, which tackles filesharing. Almost every episode is well worth watching for kids and adults. Skip the movie, it sucks ass.

Speculate on Creators

Wednesday, November 17th, 2004

Alex Tabarrok writes about An Auction Market for Journal Articles (PDF). Publishers bid for the right to publish a paper. The amount of the winning bid is divided by the authors and publishers of papers cited by the paper just auctioned. Unless I’m missing something all participating journals taken together lose money unless the share of cited authors is zero and transaction costs are nil. Still, the system could increase incentives to publish quality papers, where “subsequent authors will want to cite this” is a proxy for quality.

I’m reminded a tiny bit of BlogShares (“Blogs are valued by their incoming links and add value to other blogs by linking to them”), but especially of Ian Clarke‘s FairShare, which is a proposal for speculative donations:

Anybody can “invest” in an artist, and if that artist goes on to be a success, then the person is reward in proportion to their investment and how early they made it. But where does this return on investment come from? The answer is that it comes from subsequent investors. For example, lets say that you invest $10. $4.50 might go straight to the band, $1 might go to the operator of the system, and the remaining $4.50 would be distributed among previous investors in the band, those who invested more early would get a bigger proportion than those who invested less, later-on. Of course, most people will not make a profit, but they are rewarded by knowing that they contributed towards an artist that they liked, and helped reward others who believed in that artist, and who may have brought the artist to their attention.

Under FairShare participating creators taken together and individually would make money, as payments are from without the system, driven by the generosity and greed of fans and speculators.

A system in the spirit of one or both of these proposals could perhaps help fund a voluntary collective licensing scheme of the sort contemplated for digital music, but conceivably applicable to other types of work.

If the journal market idea really could foster a self-sustaining business model it could be a boon to the open access movement. Restricting access is rather pointless when your main business concern is to get your articles cited.

I’ve rambled about open access models elsewhere.

Mundane floating concrete

Thursday, October 28th, 2004

I attended Patri Friedman’s talk on seasteading last night. Basic idea: build floating platforms to allow for social experimentation not feasible within established jurisdictions. Many people have had variations on that particular crazy idea. Friedman distinguishes Seastead from the rest with a focus on incrementalism.

Fun quotes (from memory):

“Don’t get distracted by new technologies”

“A picture is worth a thousand words, a million pounds of concrete means you’re serious.”

“[lack of established jurisdiction, low moving cost] holds for 71% of the earth’s surface and 99.9999% of the universe.”

Back to earth, Friedman plans to start with Baystead, a scaled-down platform for 4-10 people in the San Francisco Bay. Even if his cost estimates ($200K-$500K) are off by a factor of ten (I wouldn’t be surprised), you still have what amounts to an expensive and unique floating home, of which there are many.

New houseboat design, model for dominant mode of living in the universe, or floating nursing home*, I have to admit that I’m intrigued. My wife mentioned the other day that a new coworker lives on an oceangoing houseboat, usually docked in Alameda, but just returned from a trip to Mexico. How cool — and I have zero interest in boats as boats. Plus the cost of joining the boring cult of renting a home from a bank (home “ownership”) is backbreaking in the bay area — why not do something interesting instead?

* I tend to agree with “Brock”, who comments:

Short Answer: Small, discrete economic units (cruise ships, islands) are just never going to be efficient as large, diverse economies.

As for cheap, high-quality care, don’t forget the medical outsourcing to India & Thailand. That will take off like a rocket-ship, and also sweep the rug out from the “wandering Medical Cruiseliner” idea. That particular mountain will not come to Muhammed.

While the comment concerns a tongue-in-cheek post about nursing home cruise ships (why not, nursing homes are so expensive) unrelated to seasteading, it probably applies to seasteads. Friedman said that opposition from governments will be the main obstacle to seasteading taking off. Economic viability might be a far tougher obstacle.

Addendum: Concerning defense of a large seastead in international waters, Friedman said that deterring pirates would be easy, but not giving governments a reason to attack and proving valuable to the same is the best defense against navies. But what if the ‘stead is hated for its freedom? Won’t the terrorists and evil states be impelled by a hateful illogical logic to attack unless the ‘steaders preemptively attack first?!

Joking. What I want to mention is something I overheard one student telling another as people left the lecture. From memory:

I was with him until he mentioned building a library. A patriot missile or something could stop an attack, but the media companies will never let him get away with that. Boom!

Friedman had said that one of many things a seastead community could do is host a digital library of all the works of humans free for the inhabitants. Kind of funny that someone thought that copyright violation is the one thing sure to provoke a violent response. I guess that’s the kind of image one obtains by persecuting one’s customers.