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02. 8.2007
My Business Model Makes Angels Sing, Your Business Model Hates Consumers

CNET today ran an editorial by a guy trying to drum up business for his little company, although the author never owned up to his angle in the piece. Here the opening from Les Ottolenghi, CEO of Intent MediaWorks:


Once media-hungry consumers get a taste of free music, video and games through file sharing, there's no turning back. File sharing offers consumers the complete package: rich media delivered directly to their computers, phones and e-mail addresses at no charge. Why would anyone want to return to a linear distribution system that requires more effort, more money and more limitations?

And there's this:

Entertainment companies looking for a way to monetize their content need to stop chasing the consumer dollar. That ship has sailed. As consumers become more comfortable morally and technologically about file sharing, they will be less and less willing to part with their cash for content.

Yet he also makes this dubious claim, based on his other assertions:

The good news for the industry is that a huge fan base with a potential for extraordinary profit has emerged.

My first question was this: What the heck is this guy smoking and could it possibly be legal? My second question was this: Is he on to something?

Continue reading My Business Model Makes Angels Sing, Your Business Model Hates Consumers . . .

posted by Patrick Ross @ 12:07 PM | DRM & Watermarks, etc. , Internet: P2P, Search Engines... , Markets: Business, Investment & Innovation , Theft of Service

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05.10.2006
Errors and Etiquette, Part Two: The End

I've decided not to beat this particular horse (that is, Cato's DMCA paper) any longer after today, especially as it is not quite dead. (Note to my SPCA friends and colleagues--it's just an analogy!) So just to sum up a few more problems, briefly, and then to make some kind of larger point, then, the end.

More problems in brief:

The Cato paper implies that Blackboard obtained an injunction against students seeking to present security research by "citing" the DMCA. A letter sent to the students mentions the DMCA, but the injunction was based on federal and Georgia anti-hacking statutes and trade secret law. Describing this case as involving "research" is problematic, although technical ingenuity certainly came into play, it seems to fit in the same class as the sort of ingenuity that racoons display in prying open trash cans. The Blackboard case arose when the students forcibly dismantled a debit card reader used by colleges and determined how to signal it. Very clever indeed. But it seems to me that the story loses some of its force as a horror story once one knows the details, and indeed throws doubt, perhaps deservedly, perhaps not, on other anecdotes related in this area.

Onward, relentlessly. The enthusiastic Cato author has acknowledged that his assertion that CSS does not prevent copying a DVD and playing back the copy in ordinary consumer equipment is not right. Ordinary consumer equipment will not copy the sectors of the disk in which the keys are stored and the result would not be playable.

So what? My last blog post on this topic ended up after some meandering with the larger point that the argument that a market could in fact thrive in a world without the DMCA was at least an interesting one, in being at the right "level" to qualify as a policy argument. That's the point I'm trying to work my way back to.

The argument about the CSS not preventing copies relates to a larger point about DRM and the DMCA that has been made repeatedly (by the unfortunate Tim Lee, by Adam Goldberg) namely that it does not prevent piracy. (This relates to a larger point still, which is that DRM is being misrepresented by evil corporations as an anti-piracy tool, when it is really all a plot to offer consumers less).

The statement that DRM does not prevent piracy is certainly true. It is also mostly false.


Continue reading Errors and Etiquette, Part Two: The End . . .

posted by Solveig Singleton @ 8:00 AM | DMCA , DRM & Watermarks, etc. , Theft of Service

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05. 8.2006
Of Errors and Etiquette, Part One: Linux

The Cato Institute recently published Tim Lee's paper on the DMCA. As might be noted in a police report, "words were exchanged" between the author, my colleagues, and myself on a number of points, substantive and otherwise. My take on this issue is that it presents hard problems. It is of no help whatsoever in resolving these problems to make factual and legal errors. So I will now review the record, try to identify errors, set out what is known and what is still unknown, and further explore the case against and for the DMCA.

Continue reading Of Errors and Etiquette, Part One: Linux . . .

posted by Solveig Singleton @ 9:34 AM | DMCA , DRM & Watermarks, etc. , Theft of Service

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