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01.19.2007 (previous | next)
Property Rights: It's a Bandwagon

Jack Shafer of Slate, not exactly a bastion of conservative thought, just published a strong piece advocating a property-rights approach to spectrum. Lead-off:

Suppose Congress had established in the early 19th century a Federal Publications Commission to regulate the newspaper, magazine, and newsletter businesses. The supporters of the FPC would have argued that such regulation was necessary because paper-pulp-grade timber is a scarce resource, and this scarcity made it incumbent upon the government to determine not only who could enter the publications business but where. Hence, the FPC would issue publication licenses to the "best" applicants and deny the rest.
And conclusion:
Technology alone can't bring the spectrum feast to entrepreneurs and consumers. More capitalism—not less—charts the path to abundance.
And ditto for content, I would add -- what is needed is more capitalism, not less, wihch means better definitions of property rights, better DRM, and free markets.

For those who want the government to expand fair use or otherwise micromanage intellectual property rights, bear in mind Shafer's summing up of FCC history:

what the FCC really excelled at was postponing the creation of new technologies. It stalled the emergence of such feasible technologies as FM radio, pay TV, cell phones, satellite radio, and satellite TV, just to name a few. As Declan McCullagh wrote in 2004, if the FCC had been in charge of the Web, we'd still be waiting for its standards engineers to approve of the first Web browser.
The last thing we need is a comparable freezing of investment and energy in the content space while academicians and governments engage in endless omphaloskepsis about the exact meaning of "fair."

posted by James DeLong @ 9:48 AM | Big Tent, Telecom

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Who's advocating putting the FCC in charge of copyright law? Fair use is a limitation on copyright law that gives individuals greater freedom to repurpose creative works without interference from the legal system. You can certainly argue that this will lead to the under-rewarding of content creators, and a resulting under-production of creative works. But "micro-managing" seems like a bizarre charge to level here.

If anything, the micro-managing is being done by those who want to put the FCC in charge of such technological issues as "broadcast flags," closing the "analog hole," etc. Those proposals *would* involve government bureaucrats deciding on the design of technological devices. In contrast, expanding the scope of creative activities that are not subject to copyright law would mean less, not more, government interference with the creative process.

Posted by: Tim at January 19, 2007 1:43 PM

Hear hear, Tim.

Jim, if you're saying government should stay out of the markets, then you can't have it one way and not the other. Substituting one kind of government interference you don't like (i.e., definitions of fair use) with one you do (forcing electronics manufacturers to implement protection measures) is a bit hypocritical, as both would upset the market and potentially limit development in one way or another.

Posted by: Commons Music at January 20, 2007 1:33 PM

Tim/Commons,

Jim is being practical rather than idealistic.

Some forms of regulatory policy (such as copyright) are more valuable to productive free markets than an anarchistic free for all. Of course, that assumes that you're looking at the overall market to judge regulatory policies, rather than individual instances where they may or may not reflect free market ideals (aka, missing the forrest for the trees).

Posted by: Noel Le at January 20, 2007 7:25 PM

Noel:

I do not think government-mandated protection systems are in any sense practical or valuable to the overall market.

Posted by: Commons Music at January 22, 2007 12:39 AM








 
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