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02.16.2007 (previous | next)
Redirecting the Mob

An excellent story by BNA tells us Rep. Rick Boucher (D-VA) plans to reintroduce yet again a bill to defang the DMCA. When Tech Daily approached me about this possibility recently, they quoted me thusly:

Patrick Ross, a senior fellow for the Progress and Freedom Foundation, is not optimistic that the bill would be 'any more market-friendly' than previous versions. He called the legislation 'hazardous to competition.' Boucher is 'inclined to use the power of the federal government to mandate terms he would like to see in the digital content industry instead of letting consumers demand through the market what they would like to see,' Ross said.

The BNA story suggests that for once in my life at least I was prescient. Boucher plans to put into law a fair-use exemption for space-shifting creative works in the home environment. Never mind the fact that I saw all sorts of business models doing just that at CES in Las Vegas, from the opening keynote by Bill Gates through the entire conference. Boucher makes clear in his BNA interview that he doesn't want to let consumers in the market direct the process; he instead hopes to impose mob rule through congressional fiat.

BNA paraphrases Boucher as saying that "most reasonably minded people would find format shifting to be permissible." Okay, by that standard, most people seem to find exceeding the speed limit by 5-10 miles per hour to be permissible. Thus, Congress should increase the federal speed limit by 10 miles per hour. Of course, then most drivers would find exceeding the new limit by 10 miles an hour to be permissible. We're in a bit of a bind now.

That example involves government safety mandates. But there is far more cause for Congress to intervene there than there is in space-shifting, which is purely a market issue. More than that, it is a theft of the property rights of creators. Creators have upon creation of their works the right to dictate how their work will be used. If a movie studio only wants a DVD to play on DVD players, not on video MP3 players, that is its right. Should we legalize illegal hacking tools to deprive rights-holders of monetizing space-shifting? And where do we draw the line? Can I hack a PlayStation 3 in my bedroom to play a Nintendo Wii game from my family room?

Boucher's reasonably minded people, his mob, want space-shifting. Fine. I'll actually concede that the demand is growing, at least among those who actually have the latest high-tech devices that could play back the creative works. And I saw at CES plenty of CE vendors looking to capitalize on that. If we assume this mob has formed, why does Boucher want to appease the mob by changing the law? Oh right, because he's a congressman, that's what congressmen do. But the far better approach is to let new consumer-friendly versions of DRM roll out in the market and see how they're received.

BNA cites the Advanced Access Content System, which allows consumers to move "contents of a DVD to his or her computer and from there to a portable media player" or to "use a home media server to beam the contents of a DVD to a variety of TVs within the home." Yet Boucher says "[i]t remains to be seen how effective [AACS] will be." If so, shouldn't we at least wait until we legislate? Boucher is acknowledging he's willing to cut short a market solution in favor of legislation.

BNA also cites Microsoft's PlayReady DRM, which permits space-shifting of "music, games, videos and pictures between their PCs and their mobile devices." Microsoft's Andy Moss (one of the most knowledgable people on the planet regarding DRM) seems resistant to Boucher's desire to reduce the protections of the DMCA for creators, saying the 1998 law "seems to have served its purpose" by providing "reasonable checks and balances." He predicts the DMCA will evolve over time but sees no need for "wholesale changes."

Now there is one angle to note here; if Boucher is successful in gutting the DMCA, much of DRM becomes irrelevant and Microsoft's business models are harmed. But the consumers are also harmed. We are rapidly moving to a world where Consumer A who is happy with a TV and a DVD player can buy a DVD that only plays on DVD players, while Consumer B who has every CE toy under the sun can buy a DVD that can have the content move around across all of that consumer's devices. Now Consumer B would have to pay more than Consumer A; more usage, more cost. There would not be any free-riding on Consumer A, who doesn't need the space-shifting of Consumer B. This, of course, is the rub; the mob Boucher speaks with is comprised solely of Consumer Bs, who like the free-riding model and don't want a market where they have to pay more for more uses. Understandable, but not the best way to make law. Let's hope Boucher's colleagues recognize that, and redirect the mob to the market.

posted by Patrick Ross @ 3:09 PM | Legislation and Legislators

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Comments

Patrick,

When you say "Creators have upon creation of their works the right to dictate how their work will be used" it is only true as been put into copyright law through lobbying of the various rights organizations. What one Congress can implement, another can take away. If tomorrow Congress decided to constrict copyright limits to 1 year instead of life plus 50 it has every right to do so.

Moreover, all property is subject to the input of the community (public) voice. Have you not heard of zoning laws? That is why you as the owner of a plot of land cannot erect a manufacturing plant in a residential zone.

Posted by: brian at February 16, 2007 3:50 PM

Brian, no offense, but you are misreading history and the Constitution. Here's the Progress Clause, Article 1, Section 8, Clause 8: “To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.” As it did with other rights, the Founding Fathers recognized here the preexisting "exclusive right" of creators over their works, and empowered Congress to "secur[e]" those rights. The only limits stipulated in the Constitution involve time; in other words, copyright would be a full right, but not a permanent one.

You are absolutely right that all property, when found in a nation state, can find restrictions put on it. John Locke, a favorite of Jefferson and Madison, went so far as to say that property rights were invoilate. I am sympathetic to his point of view. But being a utilitarian society, we have not embraced that form of absolute thinking with property or intellectual rights. Still, policymakers should always ask about the balance, for any restrictions on property rights is in fact a government taking of those rights, usually without compensation. So Congress should ask, when Boucher's bill is introduced, is the taking from the creative community worth providing consumers with something that is already arriving in the market?

Posted by: Patrick Ross at February 16, 2007 4:21 PM

Patrick,

When I was referring to lobbying, I meant most of the changes in copyright law since the 20th century have been at the behest of the rights organizations, not how the law was incorporated into the Constitution. Also, copyright law doesn't just stipulate the time factor of the rights holder, but goes into arcane decisions such as how big a tv a bar can have without abridging the "rights" of the copyright holder.

Posted by: brian at February 16, 2007 4:38 PM

Patrick Ross, the noted wikipedia contributer, misquotes the Constitution by omitting the part that is directly relevant to Brian's point.

Section 8 is, in fact written as one sentence which enumerates the powers of the Congress. The clause 8 is thus part of a sentence which reads (with the other intervening clauses omitted for clarity:

"The Congress shall have Power:

....To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries;

--And To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof."

So the Congress was granted the power (not the duty) to make laws which could secure to Authors and Inventors exclusive rights.

Two points that PFF continues to ignore:

1. These exclusive rights are in fact government granted monopolies (of limited time), and they are in fact special abridgements of the First Amemndment. There was nothing "pre-existing" in this right, but it was entirely created by the government.

2. The Congress has no duty to enact such laws by the Constitution. They do have the Powers to enact laws to grant such monopolies, if it is their wont. It is within their power to repeal all such laws.

What PFF fails to realize, (and here they are doing very much a diservice to their corporate pay masters) is that the very unreasonable "IP" laws are causing the backlash against IP laws in general. PFF would be much smarter to push for reasonable copyright laws (say 14 years, renewable once) then to push for the IP maximalization, which could very well lead to their being no IP laws in certain jurisdictions.

Such evaporation of IP laws couuld very well be a part of a populist regime, and if you don't think a populist regime could happen in USA, I have two words for you: Ross Perot.

Posted by: enigma_foundry at February 16, 2007 11:58 PM

"Inclined to use the power of the federal government to mandate terms he would like to see in the digital content industry instead of letting consumers demand through the market what they would like to see."

Doesn't the initial passage of the DMCA fit this description at least as well as Boucher's legislation? After all, wasn't the DMCA itself a government attempt to mandate the terms on which consumers obtained copyrighted content?

Posted by: Tim at February 17, 2007 11:54 AM

"What PFF fails to realize, (and here they are doing very much a diservice to their corporate pay masters) is that the very unreasonable 'IP' laws are causing the backlash against IP laws in general. PFF would be much smarter to push for reasonable copyright laws (say 14 years, renewable once) ..."

With all respect, I find this assessment of the "backlash" to be dubious. To my reading, neither the scholarly antagonism toward IP (the Lessig copyleft) nor the grumbling of the teenage Digg hordes is inherently based in irritation that new works won't be in the public domain 28 years from now.

Certainly in the latter case -- the "populist" backlash -- the whole thing stems from cockeyed notions that because we now have tools that CAN copy things, we SHOULD be free to copy. (And even that iteration of the stance is being generous to those who simply want free stuff.) It's not much more complicated than that.

A lot of the recent arguments that have sprung up on the anti-IP side are really just post-hoc rhetoric advanced in the service of that underlying stance. "Copyright duration is too long now" is one of the most glaring.

That position may well be right on its own merits, and is worthy of vigorous debate, but it is certainly not the spark of the copyright "backlash."

Posted by: Tom at February 17, 2007 12:36 PM

***Doesn't the initial passage of the DMCA fit this description at least as well as Boucher's legislation? After all, wasn't the DMCA itself a government attempt to mandate the terms on which consumers obtained copyrighted content?***

Tim, the initial passage of the DMCA was a way for Congress to enable online business models by helping creators deter copying and unauthorized use. Thus, the goals of the DMCA would not have been resolved merely by market dynamics, and creators would not have been able to tap the INternet to the extent they currently are. On the other hand, what Boucher is trying to achieve, enabling more free use of information, can arise from market mechanisms- by content creators selectively waiving their privileges under copyright policy, by leverage of dual licensing and creative commons type licensing.

***the "populist" backlash -- the whole thing stems from cockeyed notions that because we now have tools that CAN copy things, we SHOULD be free to copy.***

I agree entirely with Tom's point.

Posted by: Noel Le at February 17, 2007 4:10 PM

"With all respect, I find this assessment of the "backlash" to be dubious. To my reading, neither the scholarly antagonism toward IP (the Lessig copyleft) nor the grumbling of the teenage Digg hordes is inherently based in irritation that new works won't be in the public domain 28 years from now."

No. If the copyright term were 28 years, already all of Jimi Hendrix, the Doors, and the Beatles would be public domain. The fact that these works would be available would function as steam control...

Posted by: enigma_foundry at February 18, 2007 5:14 PM

Your assertion was that copyright durations are "CAUSING the backlash against IP laws in general." That is what I was responding to. Your assertion was not that shortened copyright durations might, perhaps, theoretically alleviate the backlash.

At any rate, I've been in the trenches of these online debates for years, going back to the very early days of the Napster program. I watched the evolution of the hoi polloi arguments right before my eyes:

1. "Man, they want to keep me from getting this music, this sucks."

2. "Well, wait a minute -- technically, you could say we're only SHARING. Isn't that like what my buddies and I do with our CDs? This sucks."

3. "What is 'the RIAA'? This sucks."

4. "What is 'copyright'? This sucks."

5. "Man, they don't understand the Internet. How is Napster any different from the public library? They don't get shut down for copyright stuff. This sucks."

6. "The record labels want to keep me from getting MP3s. Those guys are gazillionaires already. This sucks."

7. "This will only help their record sales. This sucks."

8. "Who cares if they lose money, bands make their real money touring. This sucks."

9. "Somebody just told me about this thing called 'fair use.' They're violating my rights! This sucks."

10. "Somebody just told me that Disney bought off the government. Copyrights are too long! This sucks."

Etc. etc. etc. etc.

And THAT is how the popular "backlash" evolved. Today it's teeming with a swarm of anti-IP sentiment and rationalizations for infringement. But forever and always, when you want to know what "caused" it, you must always refer back to #1.

Posted by: Tomas (aka Tom) at February 18, 2007 6:27 PM

"Your assertion was that copyright durations are

'CAUSING the backlash against IP laws in general.' That is what I was responding to. Your assertion was not that shortened copyright durations might, perhaps, theoretically alleviate the backlash."

No you have again misquoted me. I said:

"...the very unreasonable "IP" laws are causing the backlash against IP laws in general."

A PART of these unreasonable laws is the copyright length. There are many other unreasonable parts, for example the DMCA which is just government-sponsored protection racket, that, in addition to giving special protections to the content industry, also runs over little "silly leftist" ideas like the First Amendment.

Posted by: enigma_foundry at February 18, 2007 7:40 PM








 
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