Solveig's recent comment on the subdued market reaction to EMI's DRM-free strategy raises interesting points- is there more free culture now that a major label has jettisoned DRM, is there more competition and innovation in the digital music market, is consumer welfare improved?

The over-reactive predictions of self-proclaimed consumer advocates in their war on innovators would set public policy in the wrong direction. By magnifying all kinds of possible harms caused by innovators and intellectual property policies, these advocates justify their own existence. In crying wolf, and seeking credit for scaring away the wolf, by starting fires and claiming fame for putting out the fires, our new advocates only serve themselves, not consumers nor innovation.

I would caution our new economy consumer advocates. As Michael Fricklas recently stated on IPcentral: "while some parasitic behavior can be tolerated- too much parasitic behavior kills not only the host but also the parasite!"

posted by Noel Le @ 12:15 PM | Markets: Business, Investment & Innovation

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