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<title>Techdirt. Stories filed under &quot;monopoly&quot;</title>
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<image><title>Techdirt. Stories filed under &quot;monopoly&quot;</title><url>http://www.techdirt.com/images/td-88x31.gif</url><link>http://www.techdirt.com/</link></image>
<item>
<pubDate>Tue, 5 Mar 2013 17:00:00 PST</pubDate>
<title>DailyDirt: Do Not Pass Go, Do Not Collect $200...</title>
<dc:creator>Michael Ho</dc:creator>
<link>http://www.techdirt.com/articles/20101208/01354312183/dailydirt-do-not-pass-go-do-not-collect-200.shtml</link>
<guid>http://www.techdirt.com/articles/20101208/01354312183/dailydirt-do-not-pass-go-do-not-collect-200.shtml</guid>
<description><![CDATA[ Sometimes, a free market doesn't create a thriving bazaar of competition. Occasionally, huge monopolies form, and the result is less competition (and sometimes less innovation). Maybe it doesn't matter if you own Mediterranean and Baltic Avenue, but it could if you have Park Place and Boardwalk. Here are a few examples of monopolies you might run into someday.

<ul>

<li> <a title="http://www.npr.org/blogs/money/2013/02/19/172323211/beer-map-two-giant-brewers-210-brands" href="http://n.pr/YD6Abn">Anheuser-Busch InBev and SABMiller own a lot of beer companies, and Anheuser-Busch InBev wants to buy up Grupo Modelo next.</a> If the deal goes through, 46% of the US beer market would be controlled by a single company. [<a href="http://www.npr.org/blogs/money/2013/02/19/172323211/beer-map-two-giant-brewers-210-brands">url</a>]</li>

<li> <a title="http://www.cbsnews.com/8301-18560_162-57527151/sticker-shock-why-are-glasses-so-expensive/" href="http://cbsn.ws/ZFjecV">Eyeglasses aren't exactly hard to make, but they can be surprisingly expensive for a few grams of plastic.</a> Luxottica is the company behind the glasses that about half a billion people wear, but maybe that will change when Google starts selling its fancy eyewear....  [<a href="http://www.cbsnews.com/8301-18560_162-57527151/sticker-shock-why-are-glasses-so-expensive/">url</a>]</li>

<li> <a title="http://www.theatlantic.com/magazine/archive/1982/02/have-you-ever-tried-to-sell-a-diamond/304575/" href="http://bit.ly/ZFitAD">If you've ever bought (or tried to sell) a diamond, you've probably run across a little company called De Beers.</a> Chemistry professors should curse De Beers for the broadly held myth that a diamond is forever... diamonds are not the most thermodynamically stable form of carbon by a long shot. [<a href="http://www.theatlantic.com/magazine/archive/1982/02/have-you-ever-tried-to-sell-a-diamond/304575/">url</a>]</li>

</ul>

If you'd like to read more awesome and interesting stuff, check out this unrelated (but not entirely random!) <a title="http://www.stumbleupon.com/to/stumble/stumblethru:www.techdirt.com" href="http://bit.ly/fagV8c">Techdirt post</a>.<br /><br /><a href="http://www.techdirt.com/articles/20101208/01354312183/dailydirt-do-not-pass-go-do-not-collect-200.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101208/01354312183/dailydirt-do-not-pass-go-do-not-collect-200.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101208/01354312183/dailydirt-do-not-pass-go-do-not-collect-200.shtml?op=sharethis">Email This Story</a><br />
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<slash:department>urls-we-dig-up</slash:department>
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<pubDate>Wed, 19 Dec 2012 05:31:55 PST</pubDate>
<title>The TSA's True Focus Isn't 'Safety' - It's Self-Preservation</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20121217/17563321412/tsas-true-focus-isnt-safety-its-self-preservation.shtml</link>
<guid>http://www.techdirt.com/articles/20121217/17563321412/tsas-true-focus-isnt-safety-its-self-preservation.shtml</guid>
<description><![CDATA[ Despite its own worst efforts, the TSA doesn&#39;t seem to be going anywhere. Year after year, <a href="http://www.techdirt.com/articles/20111212/03463017042/tsa-continues-to-embarass-elderly-with-unnecessarily-degrading-search-procedures.shtml" target="_blank">horror story</a> after <a href="http://www.techdirt.com/articles/20111003/12305416186/tsa-force-breast-cancer-patient-to-submit-to-patdown-refuse-to-let-her-show-id-card-about-implants.shtml" target="_blank">horror story</a> surfaces, detailing abuse of American citizens at the hands (very often literally) of TSA agents. If they&#39;re not <a href="http://www.techdirt.com/articles/20110510/02250114227/tsa-frisks-baby-says-stroller-set-off-explosives-alarm.shtml" target="_blank">poking</a>, <a href="http://www.techdirt.com/articles/20110713/17505215082/woman-arrested-not-letting-tsa-grope-her-daughter.shtml" target="_blank">prodding</a>, <a href="http://www.techdirt.com/articles/20120216/12515417782/tsa-insists-that-it-doesnt-pick-hot-women-out-extra-scrutiny.shtml" target="_blank">fondling</a> or carelessly tossing <a href="http://www.techdirt.com/articles/20120116/22570917432/bakery-creates-tsa-safe-cupcakes-after-tsa-defends-its-confiscation-dangerous-cupcakes.shtml" target="_blank">supposed explosives</a> into a trash can five feet away, they&#39;re confiscating harmless plastic swords while allowing <a href="http://www.techdirt.com/articles/20111024/10294616491/loaded-gun-falls-out-checked-bag-feeling-secure-airports-yet.shtml" target="_blank">loaded handguns</a> on board. If they&#39;re not digging around in <a href="http://www.techdirt.com/articles/20120404/17021118376/size-matters-why-tsa-fears-thirteen-inch-laptops-not-eleven-inch-ones.shtml" target="_blank">someone&#39;s laptop</a> searching for who knows what, they&#39;re <a href="http://www.techdirt.com/articles/20121001/06072120556/how-do-you-know-if-tsa-agent-stole-ipad-theres-app-that.shtml" target="_blank">"diverting" iPads</a> into their personal collections.<br />
<br />
<a href="http://www.aviationpros.com/news/10843416/government-auditors-show-need-for-alternative-to-tsa" target="_blank">A report by the Government Accounting Office (GAO) suggests that the TSA&#39;s main focus isn&#39;t safety, it&#39;s self-preservation</a>. As yearly budget reviews loom, the TSA suddenly needs to "look busy" and justify its continued existence. Anything that might cut back its funding is briefly humored and then discarded. (via <a href="http://reason.com/24-7/2012/12/17/government-auditors-show-tsa-interested" target="_blank">Reason 24/7</a>)
<blockquote>
<i>Congress in 2002 set up a program giving airports the option of having private employees conduct screening operations. Unfortunately, TSA was put in charge of deciding which locations could participate. A total of 16 out of 440 commercial airports nationwide got into the program before TSA Administrator John S. Pistole slammed the door shut last year.</i></blockquote>
Keeping private companies out of government operations ensures a steady flow of tax dollars. While taxpayers might appreciate the relief, the TSA isn&#39;t interested in dividing the pie into more slices that it absolutely has to. While it maintains its (again, very often literal) stranglehold on airport security, the airports it "services" are losing business directly as a result of its frequent bad behavior. As the GAO states, "Passengers who have negative encounters with the screening process generally associate their experiences with the specific airport."&nbsp;<br />
<br />
Private companies would be forced to follow the hated TSA procedures, but even with these limitations, the Department of Homeland Security isn&#39;t interested in taking on new "partners."
<blockquote>
<i>[T]op Democrats want the TSA to continue rejecting applications to the program "until the costs and possible benefits can be accurately assessed," as Rep. Bennie G. Thompson of Mississippi, the ranking member on the House Homeland Security Committee, urged.</i></blockquote>
Kind of tough to assess costs and benefits if you&#39;re unwilling to actually let the program run. This lockout extends further than private companies looking to get into the airport security business. The deck is stacked against private screeners, whose performance is assessed by the one entity that is relying on their failure to stay in the money.
<blockquote>
<i>Right now, the performance of private screeners is assessed under a process directed by TSA. It&#39;s not particularly surprising that this government agency is going to do everything it can to limit potential competition. Congressional auditors found, "TSA has not conducted regular reviews comparing private and federal screener performance and does not have plans to do so." The agency isn&#39;t about to document its own relative failure.</i></blockquote>
In fact, the TSA does all it can to keep from being criticized. Here&#39;s how the traveler complaint process "works:"
<blockquote>
<i>At Ronald Reagan Airport, for example, angry flyers aren&#39;t given a form they can turn in on the spot to document their concerns. Instead, they&#39;re handed a tiny, easily lost sliver of paper containing TSA&#39;s website and mailing address.</i></blockquote>
Ah, technology... wait... what? A slip of paper that contains the TSA&#39;s website URL? If the TSA actually was interested in feedback, it could easily set up a kiosk where travelers could file a complaint electronically with reports that could be viewed and acted on daily. Instead, it justs hands out something of use to nobody and hopes that time and distance either takes the traveler out of the complaining mood or makes the details unreliably fuzzy. The TSA benefits from its neo-Luddite approach which keeps complaints to an absolute minimum, a quasi-fact it frequently references when defending itself against any complaints that somehow make it through.<br />
<br />
All of these actions have allowed the TSA to rake in nearly $8 billion <i>a year</i> without having done a single thing to improve its policies, protect travelers or <a href="http://www.techdirt.com/articles/20120109/07365217342/tsa-posts-its-top-good-catches-2011-list-not-one-which-is-actual-terrorist.shtml" target="_blank">prevent terrorism</a>.<br /><br /><a href="http://www.techdirt.com/articles/20121217/17563321412/tsas-true-focus-isnt-safety-its-self-preservation.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121217/17563321412/tsas-true-focus-isnt-safety-its-self-preservation.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121217/17563321412/tsas-true-focus-isnt-safety-its-self-preservation.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>give-'em-a-inch-and-they'll-take-a-mile-(and-your-plastic-sword)</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121217/17563321412</wfw:commentRss>
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<pubDate>Fri, 27 Jul 2012 17:32:00 PDT</pubDate>
<title>EA Settles Price Fixing Lawsuit For $27 Million; NFL Monopoly Left Intact</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20120724/18234419817/ea-settles-price-fixing-lawsuit-27-million-nfl-monopoly-left-intact.shtml</link>
<guid>http://www.techdirt.com/articles/20120724/18234419817/ea-settles-price-fixing-lawsuit-27-million-nfl-monopoly-left-intact.shtml</guid>
<description><![CDATA[ EA Games has agreed to a $27 million settlement for charges of price-fixing related to its NFL, NCAA and (lawl) Arena Football League games. While this may come as somewhat a relief to purchasers of EA games, it&#39;s highly unlikely that this will result in EA changing its core strategy. It certainly doesn&#39;t seem to have had any affect on EA&#39;s exclusive license with the NFL (which continues through 2013), a deal that was the impetus for this lawsuit.<br />
<br />
First off, the settlement sounds super-big, but in reality, <a href="http://consumerist.com/2012/07/ea-settles-price-fixing-lawsuit-but-apparently-still-has-monopoly-on-nfl-games.html" target="_blank">it breaks down to couch change for those people who were "fortunate" enough to make a "recent" purchase of one of the named EA Sports titles</a>.
<blockquote>
<i>Those who bought games for a PlayStation 2, original Xbox or Nintendo GameCube could receive up to $6.79 per title. Games purchased for the PlayStation 3, Xbox 360 and Nintendo Wii will garner a $1.95 refund, reports USA Today.</i></blockquote>
The named platforms call to question the term "recent," which is used in <a href="http://content.usatoday.com/communities/gamehunters/post/2012/07/ea-settles-lawsuit-over-alleged-price-fixing/1#.UA8v9rSe6s1" target="_blank">the original USA Today article on the subject</a>.
<blockquote>
<i>In a statement, law firm Hagens Berman says EA will create a $27 million fund for players who purchased a <b>recent</b> copy of any Madden NFL, NCAA Football or Arena Football title.</i></blockquote>
The larger payout for older platforms is likely due to the event that led to EA locking down an exclusive deal to publish Madden Roster Update as the sole representative of the National Football League.<br />
<br />
Way back in 2004, 2K Sports released <a href="http://en.wikipedia.org/wiki/ESPN_NFL_2K5" target="_blank">ESPN NFL 2K5</a> at the extremely friendly price point of $19.99, or under half the price of EA&#39;s game, which debuted at the normal $50. Not only did it beat Madden in the price war (and force EA to drop Madden&#39;s price to $29.99), but in many critics&#39; estimation, it was a superior game, especially in terms of presentation.<br />
<br />
EA felt threatened by this move and responded the way any corporation that would go on to hold the title of "<a href="http://consumerist.com/2012/04/congratulations-ea-you-are-the-worst-company-in-america-for-2012.html" target="_blank">Worst Company in America</a>" would: by throwing its considerable weight around and locking down an exclusive deal with the NFL. No doubt the NFL was also worried, having momentarily been associated with a budget-priced game. Hence, nothing but Madden until 2013 and this lawsuit, which was filed in 2010.<br />
<br />
The NFL&#39;s vice president of consumer products, Gene Goldberg, <a href="http://sports.espn.go.com/espn/sportsbusiness/news/story?id=1945691" target="_blank">said at the time</a> that he wasn&#39;t concerned that EA&#39;s monopoly would result in stagnation, stating that there is "a lot of self-imposed pressure to make [Madden] stand out in a robust and diverse marketplace." Maybe so, but I would imagine that EA&#39;s flagship football game would have improved much more dramatically with a high-quality competitor constantly breathing down its (overpriced) neck. 2K Sports&#39; product was so far ahead of Madden at the time that gamers still find it to be a <a href="http://www.youtube.com/watch?v=COi3Qer15Og" target="_blank">better experience than <i>Madden 11</i></a>.<br />
<br />
This isn&#39;t EA&#39;s only NFL-related lawsuit, either. U.S. District Judge Richard Seeborg just gave the go-ahead for former NFL players to seek class-action status in their lawsuit against EA for using their likenesses in Madden NFL games. EA had hoped to avoid this sort of situation by stripping names and shuffling jersey numbers, but the retired players pointed out that their digital alter egos were accurate in terms of skills and physical appearance.<br />
<br />
EA played the "stats are facts" card, quoting an earlier decision that saw Major League Baseball being told that player&nbsp;<a href="http://www.techdirt.com/articles/20080602/1216571291.shtml" target="_blank">names and statistics are facts</a>, and therefore cannot be copyrighted. Seeborg&#39;s ruling <a href="http://www.sfgate.com/bayarea/article/Ex-NFL-players-cleared-to-sue-video-game-maker-3457287.php" target="_blank">dismissed this claim</a>, stating that current publicity rights laws and pointing out that Madden games show the retired players "in their conventional role as football players" and is the "digital equivalent" of "using the players&#39; pictures to sell T-shirts."&nbsp;<br />
<br />
Speaking of "couch change," the proposed settlement pales in comparison to the damages originally sought in the price-fixing lawsuit, which alleged that without the exclusive NFL deal, Madden would have been forced to price its games at a more reasonable $29.99, rather than the $50-60 we&#39;re all kind of tired of paying. This difference resulted in gamers <a href="http://www.gamepolitics.com/2009/07/14/economist-ea039s-madden-monopoly-cost-gamers-926-million" target="_blank">paying an extra $701-926 million</a> for EA sports games between 2005 and 2010.<br />
<br />
But $27 million it is. Gamers shouldn&#39;t start counting that incoming couch change just yet though. This settlement still needs to be approved by the court, a move which could take months. While this might be of some consolation to the gamers who filed the suit, it feels more like a gesture of hands-folded-politely compliance, as if to show that EA is a "Good Corporate Citizen" and, as such, is worthy of its continued NFL-granted monopoly. And despite its exclusive client currently "entertaining" two lawsuits, the NFL doesn&#39;t seem to be interested in shopping around for new suitors, leading one to believe that it really doesn&#39;t care much for non-exclusive deals... or for <a href="http://www.proplayerinsiders.com/eller-retired-players-sue-nflpa/" target="_blank">its former players</a>.<br /><br /><a href="http://www.techdirt.com/articles/20120724/18234419817/ea-settles-price-fixing-lawsuit-27-million-nfl-monopoly-left-intact.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120724/18234419817/ea-settles-price-fixing-lawsuit-27-million-nfl-monopoly-left-intact.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120724/18234419817/ea-settles-price-fixing-lawsuit-27-million-nfl-monopoly-left-intact.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>there's-no-'innovate'-in-'exclusive-contract'</slash:department>
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<pubDate>Wed, 13 Jun 2012 09:21:00 PDT</pubDate>
<title>The EU Telco Plan To Have The UN 'Tax &#038; Track' Internet Usage Goes Against Fundamental Internet Principles</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120612/04232519285/eu-telco-plan-to-have-un-tax-track-internet-usage-goes-against-fundamental-internet-principles.shtml</link>
<guid>http://www.techdirt.com/articles/20120612/04232519285/eu-telco-plan-to-have-un-tax-track-internet-usage-goes-against-fundamental-internet-principles.shtml</guid>
<description><![CDATA[ We've been talking for a few months about the nefarious plan by the UN's ITU (International Telecommunications Union) to try to begin regulating the internet, and just how <a href="http://www.techdirt.com/articles/20120221/02544717824/be-afraid-russia-china-seek-to-put-place-top-down-regulation-internet.shtml">dangerous</a> that would be.  This is especially true as totalitarian countries have pretty clear plans to use this process to come up with ways to lock down the internet -- and potentially balkanize it.  In the last few weeks the issue has been getting a lot <a href="http://www.techdirt.com/articles/20120601/10182719172/tell-un-to-keep-its-hands-off-peoples-internet.shtml">more attention</a>, especially in the US, where there's widespread agreement that this is not something for the UN or ITU to be involved in.
<br /><br />
Of course, a big part of the problem is just how <a href="http://www.techdirt.com/articles/20120606/11152719224/threat-un-internet-takeover-is-only-vague-because-un-shares-no-details.shtml">secretive</a> the entire process is.  Not only does it lack transparency, it entirely lacks accountability.  It's a system that is ripe for abuse -- and a combination of either gullible or crafty officials seem to have no problem helping enable that kind of abuse.
<br /><br />
As we noted in that last post, some of the first proposals had started leaking, and the deeper people dig into them, the worse they look.  The basic proposal that is making the rounds is the one submitted by ETNO -- the European Telecommunications Network Operators Association.  What they're proposing is a system that effectively puts in place a massive <a href="http://news.cnet.com/8301-1009_3-57449375-83/u.n-could-tax-u.s.-based-web-sites-leaked-docs-show/" target="_blank"><i><b>tax system for the internet</b></i></a>.  Basically, they're taking a long-standing setup concerning how much it costs for <i>telephone calls</i>, in which the calling party pays a ton of money to "connect" to an international phone system.  Ever wondered why phone calls to foreign countries can be so crazy expensive?
<br /><br />
That's why.
<br /><br />
And now the plan is to basically pretend that the internet is just like the phone system, so they can extend this "calling party pays" plan to <a href="http://news.cnet.com/8301-1009_3-57449640-83/european-telcoms-defend-leaked-proposal-for-u.n-internet-tax/" target="_blank">one where the "sending party" pays</a>.  The reasoning here is more or less twofold: (1) lots of these countries still have (either fully or partially) nationally owned telcos (or at least telco monopolies), whose business models have been completely undercut by the internet.  Since these firms have been monopolists from the very beginning, they've never been very good at innovating or adapting to the times.  The idea of shifting what had been a key money maker -- collecting tolls for international phone calls -- and then applying it to the internet <i>sounds</i> really attractive to lazy national telco folks who would love a system that just starts printing money for them.  (2)  While they don't like to admit it, plenty of other countries remain quite jealous of the of large massively successful internet companies which are mostly based in the US.  By placing a "sending party pays" tax, it's a way for European (and other) countries to more or less put up toll booths on the internet for these companies, forcing Google, Facebook, Twitter and others to "pay" to reach people in their countries.  Oh, and on top of that, it's a chance for them to make plans to <a href="http://www.zdnet.co.uk/blogs/communication-breakdown-10000030/block-net-neutrality-in-new-internet-rules-un-urged-10026365/" target="_blank">drop net neutrality</a> and the basic end-to-end principle that defines the internet.
<br /><br />
In fact, the head of the ITU, in a series of speeches in which he insists he wants to cut short these rumors of a "UN takeover" of the internet, makes it abundantly clear that a big part of this plan is to simply funnel cash to national telcos, which he assumes (with no proof) will automatically go towards funding new infrastructure.  Take for example, one of his <a href="http://www.itu.int/en/osg/speeches/Pages/2012-05-01.aspx" target="_blank">recent speeches</a> in Canada, in which he repeatedly talks up how we need to get money to telcos so they'll invest in infrastructure:
<blockquote><i>
Ladies and gentlemen,
<br /><br />
Everyone wants mobile broadband and the benefits it will bring. But few seem willing to pay for it &#8211; including both the over-the-top players, who are generating vast new demand through their applications, and consumers, who have become accustomed to unlimited packages.
<br /><br />
This is putting tremendous pressure on mobile operators, who need to invest in high-capacity broadband networks in order to maintain quality of service as demand rises.
<br /><br />
At the same time, as broadband becomes increasingly viewed as basic infrastructure for social and economic development, operators are being asked to extend the reach of their networks to under-served populations.
<br /><br />
These are strategic, bottom-line issues, and we need to be talking about them.
</i></blockquote>
The argument he makes is that if we don't somehow subsidize and funnel excess cash to the telcos, they might not be able to survive or invest in additional core internet infrastructure.  Of course, all of that ignores the <i>customer</i>, and assumes a primary position for telcos who'd love to bring in this cash (though they appear to severely underestimate both the collateral damage and the lasting impact  of such agreements).  All of this ignores the fact that there's so much demand for true broadband internet access that more and more private solutions are appearing, none of which require putting a massive tax on the internet.  Furthermore, it seems to assume no one will invest in broadband without government help.  This, of course, ignores the fact that the effective monopolies of many national telcos has made those companies fat, lazy and slothful when it comes to actual innovation.  There are all sorts of reasons to invest in broadband projects that don't require "taxation" every time internet packets cross national boundaries.  Furthermore, if these telcos not only have a national monopoly, but are also getting free money from the outside world, what incentive do they really have to actually invest in improving the network?
<br /><br />
If you think that roaming charges and international phone calls are crazy in Europe, you haven't seen anything until this ITU proposal moves forward.
<br /><br />
And, of course, there's an even more nefarious and mostly unspoken aspect to all of this.  While so much of the focus has been on money (and a little bit on technology), there's a bigger issue: destroying privacy online.  No one will say that out loud, of course, but taxing the internet as it crosses borders opens up the door to <i>tracking</i> internet usage.  Because <i>you can't tax something that you can't track</i>.  So all of these proposals have the implicit problem that they open the door for countries who don't truly believe in privacy for their citizens, to also track how they use the internet, and defending it as required to remain in compliance.  Anyone believe that won't be abused by corrupt and authoritarian governments?
<br /><br />
In the end, this leads to an inevitable balkanization of the internet -- in which internet traffic crossing borders is taxed and tracked as it wasn't before (where the peering system has been mostly effective with just a few minor hiccups).  Once you have such taxation it becomes cost prohibitive for some countries to even offer full internet access to its citizens, and that can get worse over time.  Add to that the ability to widely track what people do online (and the ability to ditch the end-to-end principle of the internet) and -- especially for more authoritarian governments -- you open a huge can of worms to let officials spy on all sorts of internet activity <i>in the name of</i> supporting a "international relations."
<br /><br />
This is why people should be speaking out loudly against these proposals.  So far, it's basically the US against everyone else -- and the US only has one vote.<br /><br /><a href="http://www.techdirt.com/articles/20120612/04232519285/eu-telco-plan-to-have-un-tax-track-internet-usage-goes-against-fundamental-internet-principles.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120612/04232519285/eu-telco-plan-to-have-un-tax-track-internet-usage-goes-against-fundamental-internet-principles.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120612/04232519285/eu-telco-plan-to-have-un-tax-track-internet-usage-goes-against-fundamental-internet-principles.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>this-is-bad</slash:department>
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<pubDate>Fri, 1 Jun 2012 08:02:02 PDT</pubDate>
<title>Google Claims Microsoft And Nokia Are Using Patents To Violate Antitrust Laws</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120531/18054919158/google-claims-microsoft-nokia-are-using-patents-to-violate-antitrust-laws.shtml</link>
<guid>http://www.techdirt.com/articles/20120531/18054919158/google-claims-microsoft-nokia-are-using-patents-to-violate-antitrust-laws.shtml</guid>
<description><![CDATA[ I've pointed out a few times in the past that I don't think it really helps either company when Microsoft and Google to <a href="http://www.techdirt.com/articles/20080203/225559163.shtml">trade</a> antitrust allegations against each other.  Both companies are facing (or have faced) significant antitrust questions themselves, and raising them against each other just seems like sour grapes.  A few months ago, Microsoft <a href="http://www.techdirt.com/blog/innovation/articles/20120224/03464017863/patent-aggressor-microsoft-files-eu-complaint-against-googlemotorola-charging-too-much-to-license-patents.shtml">filed</a> an EU complaint against Google, arguing that its plans for licensing the Motorola patents it acquired amounted to an antitrust violation.  Now, Google has hit back, <a href="http://www.bloomberg.com/news/2012-05-31/google-files-complaint-in-europe-against-microsoft-correct-.html" target="_blank">filing a similar accusation back at Microsoft (and Nokia)</a>, arguing that their deal, transferring some 2,000 patents and patent applications to Canadian patent troll Mosaid, represents an antitrust violation:
<blockquote><i>
Nokia and Microsoft are colluding to raise the costs of mobile devices for consumers, creating patent trolls that side- step promises both companies have made.
</i></blockquote>
I'm still pretty damn skeptical of either claim.  The fact that both were filed in the EU is telling, as the EU generally has a much more aggressive interpretation of antitrust law, meaning that both of these filings really look like two giants slapping each other around for sport, rather than competing in the marketplace.
<br /><br />
The only thing that I <i>do</i> find kind of interesting about both filings is the fact that they're focused on the use of patents as a lever for antitrust activity.  Patents are, by their very nature, a government-granted monopoly.  And there have been arguments made that, as such, their usage deserves extra scrutiny when it comes to antitrust analysis.  Though, on the flip side, people might point out that, as government-granted monopolies, patents are immune from antitrust analysis, since <i>by their very nature</i>, they're a government-granted allowance for antitrust behavior.  It is, after all, the government granting a monopoly.  Should it really be any surprise that companies then do <i>monopolistic</i> things with them?
<br /><br />
Either way, I don't see either filing ending well for either company involved.  If anything, we can just hope that it helps demonstrate how patents themselves are tools of monopolistic antitrust behavior.<br /><br /><a href="http://www.techdirt.com/articles/20120531/18054919158/google-claims-microsoft-nokia-are-using-patents-to-violate-antitrust-laws.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120531/18054919158/google-claims-microsoft-nokia-are-using-patents-to-violate-antitrust-laws.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120531/18054919158/google-claims-microsoft-nokia-are-using-patents-to-violate-antitrust-laws.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>who-is-this-helping</slash:department>
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<pubDate>Tue, 8 May 2012 19:31:00 PDT</pubDate>
<title>Honeywell's Lawsuit Against Nest: The Perfect Example Of Legacy Players Using Patents To Stifle Innovation</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20120508/03354418823/honeywells-lawsuit-against-nest-perfect-example-legacy-players-using-patents-to-stifle-innovation.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20120508/03354418823/honeywells-lawsuit-against-nest-perfect-example-legacy-players-using-patents-to-stifle-innovation.shtml</guid>
<description><![CDATA[ I'd been meaning to write about this lawsuit ever since it was filed, but other stuff got in the way, so this is a bit of a catch-up post, to go along with Honeywell's response to Nest's counterclaims (which we'll get to in a bit).  But the key to this highly questionable lawsuit is that electronics giant Honeywell wants to use the patent system to <a href="http://dockets.justia.com/docket/minnesota/mndce/0:2012cv00299/124497/" target="_blank">effectively kill off the well-hyped Nest thermostat</a>.  Nest, a company that launched just last fall, got some well-deserved <a href="http://www.techdirt.com/blog/innovation/articles/20111026/01492716514/applying-apples-design-sense-to-other-items-like-thermostat.shtml">attention</a> for applying an Apple-like design sense to everyday gadgets -- starting with the lowly thermostat, a device that really hasn't seen that much innovation in quite some time.  The product was, indeed, a pretty big leap forward, and I know a bunch of people who have Nest devices and love them.
<br /><br />
But, of course, under a crony capitalist system, the incumbents can't have any of this nasty "disruption."  Honeywell was not pleased.  Bizarrely, just days before Honeywell filed the lawsuit, it had told GigaOm that it had built something similar to Nest but <a href="http://gigaom.com/cleantech/honeywell-20-years-ago-we-killed-off-our-learning-thermostats/" target="_blank">killed it off</a> because consumers weren't interested.  Yeah, this certainly sounds like a company jealous that Nest actually figured out how to truly innovate (bring something to market in a way consumers want) rather than just invent (create something new).
<br /><br />
The simple fact here is that consumers really seem to like the Nest, and apparently Honeywell is ill-equipped to compete in the marketplace.  So it's response is to sue and try to kill off the competition.  It's a sickening display of a legacy company resting on its laurels afraid to actually compete in the market against a disruptive player that's younger and nimbler and actually in touch with what consumers want.  Out of this, we get some absolutely ridiculous claims, such as the suggestion that Honeywell has patented the idea of a thermostat asking you what temperature you like, and only Honeywell could do such a thing:
<center>
<a href="http://imgur.com/6rB5d"><img src="http://i.imgur.com/6rB5d.png"  width=500 /></a>
</center>
<br />
Honeywell also seems to suggest that merely connecting a thermostat to the internet infringes on its patents, because, of course, no one else could have possibly thought of connecting home devices to the internet before Honeywell came along.  While the filing also does highlight some evidence that Nest looked at Honeywell thermostats, isn't that how competition works?  You look at what others are doing, and figure out how you can do it better?  Basically, what Honeywell seems to be admitting is that it can't do it better, so instead it will sue.
<br /><br />
Nest's counterclaim hit back pretty hard on a bunch of these points, stating upfront:
<blockquote><i>
This lawsuit is a bald effort by Honeywell to inhibit competition from a promising new company and product in a field that Honeywell has dominated for decades.  Nest Labs, with its Nest Learning Thermostat, has generated consumer and critical enthusiasm around the home thermostat -- a device that most people had long since written off as a bland, dumb appliance....  That "blah-looking controller" on the market today is very often from Honeywell, which has long dominated the thermostat market, but has yet to generate a device that offers ordinary consumers as much as the Nest Learning Thermostat.  Instead of countering product innovation with its own new products, Honeywell has a track record of responding to innovation with lawsuits and overextended claims of intellectual property violations.  
</i></blockquote>
Nest also points out that Honeywell has lost previous lawsuits that similarly appeared to be bullying competitors.  The Nest response doesn't just call out the company for what it's obviously trying to do, but further claims that all of the patents are "hopelessly invalid" and points to prior art that raises significant questions about the validity of the patents in play.
<br /><br />
Nest also files some counterclaims for declaratory judgment -- which basically start out as a long commercial about Nest and how awesome everyone thinks it is.  While this may seem out of place, there's a reason for this.  The company is trying to demonstrate that it's not just a clone of Honeywell, but that <i>it</i> (not Honeywell) is the true innovator here.  It not only pumps itself up, but provides plenty of evidence of Honeywell's own failures to innovate.
<br /><br />
The latest news is that Honeywell has now filed its own response to Nest's counterclaims and (not surprisingly), Honeywell is not at all happy.  It says that Nest's counterclaims are "self-serving characterizations based on Nest Labs' unfounded opinions and speculations that are irrelevant to Honeywell's valid claims..."  These are legal filings, so I'm pretty sure that all of them are "self-serving."  As for whether or not they're "unfounded opinions and speculations," that seems like a pretty big stretch from Honeywell, in an attempt to smear any competition making valid legal arguments against them.
<br /><br />
Either way, it does not seem like either side is likely to back down any time soon.  So, what remains is a classic case of a legacy industry player who failed to adapt reacting to the young upstart everyone likes by going legal, rather than actually competing.  This is pretty short-sighted.  If it actually competed in the market it might learn <i>why</i> people like the Nest device and why they're buying them instead of Honeywell thermostats.  All I know is that my house has a Honeywell thermostat currently, and this lawsuit makes me much more interested in buying a Nest device to replace it.<br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20120508/03354418823/honeywells-lawsuit-against-nest-perfect-example-legacy-players-using-patents-to-stifle-innovation.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20120508/03354418823/honeywells-lawsuit-against-nest-perfect-example-legacy-players-using-patents-to-stifle-innovation.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20120508/03354418823/honeywells-lawsuit-against-nest-perfect-example-legacy-players-using-patents-to-stifle-innovation.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>if-you-had-invented-nest,-you'd-be-making-nest-devices</slash:department>
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<pubDate>Mon, 7 May 2012 10:22:00 PDT</pubDate>
<title>AT&#038;T Argues That More Competition Is Bad For You &#038; Leads To Higher Prices</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120504/01472218773/att-argues-that-more-competition-is-bad-you-leads-to-higher-prices.shtml</link>
<guid>http://www.techdirt.com/articles/20120504/01472218773/att-argues-that-more-competition-is-bad-you-leads-to-higher-prices.shtml</guid>
<description><![CDATA[ Apparently AT&#038;T-land is a place where basic economics doesn't apply.  AT&#038;T boss Randall Stephenson, still hurt from the rejection of his attempted merger with T-Mobile, is telling the world that <a href="http://www.dslreports.com/shownews/ATT-CEO-Theres-Too-Many-Damn-Competitors-119320" target="_blank">greater competition means higher prices and less efficient markets</a>.  That this goes against nearly all understanding of economics seems like an important point that would be worth bringing up to Stephenson, but apparently the reporters present didn't bother.  In particular, he claims that AT&#038;T had to increase its data rates by 30% because it doesn't own T-Mobile.  That makes no sense, but okay.  Then he claims that competition makes things less efficient:
<blockquote><i>
"The more competitors you have, the less efficient the allocation of spectrum will be," he said. "It's got to change. I don't think the market's going to accommodate the number of competitors there are in the landscape."
</i></blockquote>
This is how a monopolist argues: if we controlled everything, why things would be much more efficient.  He's seriously arguing that the fact that they have to compete for resources means that they can't get the same level of monopoly rents.  Yeah, that's called capitalism, where you actually have to compete in the market.  I mean, I'm sure UPS hates that it has to share the roads with Fedex (so inefficient), but it's actually good for the consumers to have real competition.  Apparently, though, AT&#038;T has a different point of view.<br /><br /><a href="http://www.techdirt.com/articles/20120504/01472218773/att-argues-that-more-competition-is-bad-you-leads-to-higher-prices.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120504/01472218773/att-argues-that-more-competition-is-bad-you-leads-to-higher-prices.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120504/01472218773/att-argues-that-more-competition-is-bad-you-leads-to-higher-prices.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>economics-free-zone</slash:department>
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<pubDate>Wed, 25 Apr 2012 14:03:00 PDT</pubDate>
<title>Oracle/Google Case Shows Just How Totally Pointless It Is To Have Patents On Software</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120424/00411918621/oraclegoogle-case-shows-just-how-totally-pointless-it-is-to-have-patents-software.shtml</link>
<guid>http://www.techdirt.com/articles/20120424/00411918621/oraclegoogle-case-shows-just-how-totally-pointless-it-is-to-have-patents-software.shtml</guid>
<description><![CDATA[ Julie Samuels has a fantastic piece over at Wired using the Oracle v. Google case to <a href="http://www.wired.com/wiredenterprise/2012/04/opinion-samuels-google-oracle/" target="_blank">explain why patents simply don't make any sense in the software world</a>:
<blockquote><i>
For starters, software often does not require the type of heavy investment that should result in a 20-year monopoly. Instead of expensive laboratories or years of testing for FDA approval, for example, you often just need a coder and a computer. Even complex programs don&#8217;t require 20 years of exclusivity to recoup their investment. Software patents are often not even necessary for successful businesses: Facebook and, yes, Google &#8212; never relied on software patents to grow their early businesses.
<br /><br />
Software patents are also notoriously vague and difficult to understand, making it impossible for small inventors to navigate the system without expensive legal help. And that brings us to the most dangerous aspect of software patents: litigation.
<br /><br />
It turns out that software patents are nearly <a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1868979">five times more likely</a> to be the subject of litigation as other patents. In fact, lawsuits surrounding software patents have <a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1868979">more than tripled</a> since 1999, and they have become part of the price of doing business in America. Take Spotify. After realizing much success in Europe, Spotify launched its U.S. product in July, and just weeks later it found itself facing a patent suit.
</i></blockquote>
Of course, tons of software developers recognize this implicitly.  I know an awful lot of software developers in Silicon Valley.  I can't think of a single one who thinks patents are a good thing or even remotely useful (and this includes many developers who <i>have</i> patents).  In development circles, it seems that nearly everyone thinks patents are a waste of time and money.  And that's because software doesn't work the way that the patent system envisions.
<blockquote><i>
Perhaps most troubling, the patent system fails to recognize how people create and use technology. Software is fundamentally situated as a building-block technology. You write some code, and then I improve upon it &#8212; something the open source community has figured out. Google&#8217;s use of Java in its Android OS also demonstrates how innovators create, by making its own product and and incorporating some elements of the Java language (which, incidentally, Java&#8217;s creators have a history of supporting). And when those two come together, it results in an incredibly popular product, here the Android OS.
</i></blockquote>
It's the difference between an idea and actually bringing that idea to market.  That difference is always ignored or underestimated by patent lawyers -- but developers know the difference.  The patent system wasn't designed by software developers, though.  And it shows.<br /><br /><a href="http://www.techdirt.com/articles/20120424/00411918621/oraclegoogle-case-shows-just-how-totally-pointless-it-is-to-have-patents-software.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120424/00411918621/oraclegoogle-case-shows-just-how-totally-pointless-it-is-to-have-patents-software.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120424/00411918621/oraclegoogle-case-shows-just-how-totally-pointless-it-is-to-have-patents-software.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>it's-now-how-people-code</slash:department>
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<pubDate>Fri, 13 Apr 2012 12:46:00 PDT</pubDate>
<title>Why Do Copyright Industry Profits Get To Be The Yardstick For Civil Liberties?</title>
<dc:creator>Rick Falkvinge</dc:creator>
<link>http://www.techdirt.com/articles/20120410/14194118444/why-do-copyright-industry-profits-get-to-be-yardstick-civil-liberties.shtml</link>
<guid>http://www.techdirt.com/articles/20120410/14194118444/why-do-copyright-industry-profits-get-to-be-yardstick-civil-liberties.shtml</guid>
<description><![CDATA[ <p>For a long time, the copyright industry has cried foul over technical progress, and demanded taxpayer compensation for how these new developments circumvent their existing privileges. It didn't start with the internet; they've done so for well <a href="http://falkvinge.net/2012/01/27/the-copyright-industry-a-century-of-deceit/">over a century</a>, starting with complaining about the gramophone and the self-playing piano. But as they are crying over lost sales, real or imagined, why is the rest of the world accepting that this field -- the copyright industry's profits -- is the place where the debate should be playing out?</p>

<p>You've all seen the stories. The sky is falling, the end is nigh, music will come to an end, people sharing their knowledge and culture and thus disrespecting the copyright monopoly rips the bread out of starving artists' children's kittens' mouths, yada yada yada.</p>

<p>What I can't understand for my life is why this industry's profits are even being debated. Who cares how much money a particular industry makes? That is not relevant at all for the form, size and shape of our most basic civil liberties as they apply online.</p>

<p>Let me try an analogy. When mankind communicated privately 30 years ago, our parents sent physical letters in the mail. They wrote a message by hand or with a <a href="http://en.wikipedia.org/wiki/Typewriter">typewriter</a> on a piece of paper, put the paper in an envelope and sealed it, wrote the recipient's home address on the outside of the envelope, manually affixed a <a href="http://en.wikipedia.org/wiki/Postage_stamp">stamp</a> to pay for delivery, and put it in a mailbox. The postal service would then <strong>physically</strong> carry the envelope with the letter inside to its recipient's home, where it could be read. This delivery took a day or a couple of days, just like when we order new shiny gadgets today and things need to be physically delivered.</p>

<p>So, let's take a look at what rights our parents had in this scenario. First, they and they alone determined whether to identify themselves as sender - on the outside of the envelope, for the delivery services to know; on inside of the envelope, for only the recipient to know; or frankly, not <strong>at all.</strong> That was their prerogative. Nobody had the right to open letters in transit just to see that they didn't contain any illegal material, and nobody was allowed to track who was communicating (sending letters) to whom.</p>

<p><strong>It is perfectly reasonable that we demand these fundamental rights of our parents' private communications to carry over into the online world, to our children's equivalent environment of life.</strong></p>

<p>Now, once you say that anybody should be able to send anything to anybody on the net without interference, because that's in the civil liberties that our ancestors fought, bled and died for, the copyright industry jumps in and complains. "We can't make any money if you allow this to happen", they would say.</p>

<p>My response is "So what?".</p>

<p><strong>The role of any entrepreneur is to make money given the contemporary constraints of society and technology. They do not get to dismantle civil liberties, even if - and perhaps especially if - they are unable to make money in the face of sustained civil liberties.</strong></p>

<p>If the copyright industry can't sell their products in the face of sustained civil liberties, they get to go out of business or sell something else instead. Mustard, perhaps.</p>

<p>The important trap to observe here is that it's not our problem if the copyright industry's sales are slumping - whether they are or not. It is irrelevant to the debate on civil liberties online. By starting to discuss the profits issue, the copyright industry wins the framing of the debate - that they should somehow have a right to such profit; that society must be shaped so they can continue to make a profit. No entrepreneur gets that luxury.</p>

<p>The copyright industry is not a stakeholder in copyright monopoly legislation. They are a <strong>beneficiary</strong>. There's a difference.</p>

<p>The only stakeholder in the copyright monopoly legislation is the public. <strong>The copyright monopoly is a balance between the public's interest of having access to culture and knowledge, and the same public's interest of having new culture and knowledge created.</strong> That's it. Those are the only two interests that go into the legal wording of the monopoly.</p>

<p>The copyright industry, meanwhile, profits from the current means of achieving this balance - just like Blackwater Security (or whatever their name is this week) profits off of United States foreign policy. (You remember Blackwater, the private security firm that was playing GTA IRL on the streets of Baghdad?) Actually, let's stick with Blackwater for a while. Can you imagine what would happen if Blackwater was considered a legitimate stakeholder in US foreign policy, and whose tantrums were taken seriously when they demanded more opportunities for profits in the foreign policy, violating people's civil liberties in the process?</p>

<p>Can you really imagine what would happen if the concern for Blackwater's continued profits would be allowed to take center stage, ahead of people's sustained civil liberties? I'm betting we would see about the same thing that's happening to the net right now with the copyright industry's equally asinine tantrums. This is the crucial difference between a beneficiary and a stakeholder.</p>

<p>Just because the copyright industry has benefited from this monopoly construct in the past, that doesn't mean that they have any right whatsoever to profit from it tomorrow. That's not a concern at all in reforming the copyright monopoly. In drafting such legislation, our only concern is maximizing the knowledge and culture available to the public.</p>

<p><em>Rick Falkvinge is the founder of the Swedish and first Pirate Party. Follow him as <a href="http://twitter.com/Falkvinge">@Falkvinge</a> on Twitter, read his <a href="http://falkvinge.net/">private blog</a>, or get him for <a href="http://falkvinge.net/keynotes/">a keynote</a>.</em></p><br /><br /><a href="http://www.techdirt.com/articles/20120410/14194118444/why-do-copyright-industry-profits-get-to-be-yardstick-civil-liberties.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120410/14194118444/why-do-copyright-industry-profits-get-to-be-yardstick-civil-liberties.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120410/14194118444/why-do-copyright-industry-profits-get-to-be-yardstick-civil-liberties.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>focusing-on-what-really-matters</slash:department>
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<pubDate>Thu, 5 Jan 2012 09:47:45 PST</pubDate>
<title>It Is Time To Stop Pretending To Endorse The Copyright Monopoly</title>
<dc:creator>Rick Falkvinge</dc:creator>
<link>http://www.techdirt.com/articles/20120102/16374417254/it-is-time-to-stop-pretending-to-endorse-copyright-monopoly.shtml</link>
<guid>http://www.techdirt.com/articles/20120102/16374417254/it-is-time-to-stop-pretending-to-endorse-copyright-monopoly.shtml</guid>
<description><![CDATA[ <p>There is a saying in the political discussion in Sweden: "Anything you say before <em>but</em> in a political statement doesn't count." We've seen a lot of that practice in recent years with increasingly horrendous cultural monopoly laws.</p>

<p>People in corporate and political suits alike are climbing on top of one another to be the most statesmanlike in stating "We are fully committed to the copyright monopoly, but these proposed enforcement laws are just nuts," worded in all the synonyms you can find in a thesaurus.</p>

<p>Why? Why do people feel forced to phrase their views on policy like that?</p>

<p>If the enforcement laws are nuts, but still needed for the monopoly to be effective, why is the part before the "but" there -- where people say they support the copyright monopoly, but are firmly rejecting the laws needed keep it in effective existence for a few more years?</p>

<p>For I believe that the copyright industry <strong>is actually right</strong> that these ridiculous laws are needed to sustain the copyright monopoly. General-purpose networked computers, free and anonymous speech, and sustained civil liberties make it impossible to maintain this distribution monopoly of digitizable information. As technical progress can't be legislated against, basic civil liberties would have to go to maintain the crumbling monopoly. And these are the laws we're seeing on the table.</p>

<p><strong>There comes a tipping point when somebody says that this entire system of cultural monopolies is absurd. A tipping point where the part before the "but" is unceremoniously and collectively dropped, the part that didn't count anyway. A tipping point where everybody just stops pretending to support it. I think it is time to create that point on the history line.</strong></p>

<p>For what is the copyright monopoly, anyway? It is a set of monopolies from the era of guild-regulated commerce, when privately dictated monopolies were the norm and the expected. Specifically, the eldest tradesmen in every guild dictated what, where, and how trade happened within that craft. The copyright monopoly is a remnant from this era that should have been thrown out with the establishment of free enterprise laws in the 1850s.</p>

<p>Also, it is not really one single monopoly, but five quite different ones that are lumped together under a common umbrella term.</p>

<p>The first two types of copyright monopoly are commercial monopolies on duplication and public performance. These are the monopolies usually broken by today's free communication, the monopolies that can't coexist with today's technology and sustained civil liberties.</p>

<p>Then, there are two kinds of moral rights - <em>droits morals</em>. There is the right for the creator to prevent any performance, derivation, remix, satire, etc. of a piece that they do not approve of, and there is the right for a creator to be credited as such.</p>

<p>(I actually support this last right -- the right to credit. But does it really require <em>legislation</em>? The social, corporate and academic penalties for plagiarism are much higher than those of the law. Why is that particular law needed, then?)</p>

<p>The fifth monopoly isn't technically part of the copyright monopoly, but is frequently called "copyright" anyway. It is the so-called "neighboring rights" that were the result of the record industry's <a href="http://falkvinge.net/2011/02/16/history-of-copyright-part-6-hijacked-by-record-industry/">corporativization as IFPI</a> in then-fascist Italy: the duplication monopoly over specific recordings. This, too, is broken by today's free communication.</p>

<p>I sometimes hear the old guard say that there would be no culture if there was no copyright monopoly. That is an outrageous insult to creators all over the world today. We create not because of a monopoly, but because of who we are; we have created and shared culture since we learned to put red paint on the inside of cave walls. Today, about eight years' worth of video are uploaded to YouTube every day.</p>

<p><strong>People today create not because of the copyright monopoly, but despite it.</strong></p>

<p>The second common question is how the artists shall get paid. That, too, is a red herring. First of all, it is <a href="http://falkvinge.net/2011/01/31/how-shall-the-artists-get-paid/">not a policy problem</a>, and second, it is <a href="http://christianengstrom.wordpress.com/2011/09/16/studies-on-the-cultural-sector-in-the-file-sharing-era/">not a problem at all</a>.</p>

<p>This pretense from the old guard goes well in hand with the origins of the copyright monopoly. It was never for the artists at all. When the copyright monopoly <a href="http://falkvinge.net/2011/02/02/history-of-copyright-part-2-tudoric-feud/">was first created</a> on May 4, 1557, it was a means of censorship of political dissent. It lapsed in 1695. When it was reinstated in 1709, it was at the request of <em>printers and distributors</em> who had gathered their families on the stairs of English Parliament <a href="http://falkvinge.net/2011/02/05/history-of-copyright-part-3-the-monopoly-dies-and-rises/">to claim</a> that no culture would be <em>printed or distributed</em> if they didn't get their monopoly reinstated.</p>

<p>Nobody at the time thought to claim something as preposterous as the copyright monopoly being a precondition for people wanting to create culture. It never was.</p>

<p>On the contrary, it is a guild-era instrument. To show a parallel, buttonmakers in France in the 1600s went berserk when tailors <a href="http://www.techdirt.com/articles/20070110/004225.shtml">bypassed them and made buttons out of cloth instead</a>.  They demanded the right to invade people's homes and search their wardrobes for violations of the guild privileges. Sound familiar?</p>

<p>Another parallel also happened in France, where certain popular printed cloth fabrics were monopolized. People manufactured them anyway, and the nobility responded with increasingly harsh punishments for violations of their monopolies, up to and including death by torture. Even the death penalty <a href="http://torrentfreak.com/and-when-even-the-death-penalty-doesnt-deter-copying-what-then-110807/">didn't stop that copying</a>. How far is the copyright industry prepared to go? They never answer that question.</p>

<p>Any law must be necessary, effective, and proportionate: it must identify a real problem that needs legislation, it must solve that problem, and it must not create worse problems in the process. No aspect of the copyright monopoly meets these three legislative quality criteria. Therefore, I reject the concept as a whole.</p>

<p><strong>I reject and oppose this monopoly that was never for the creators, but always for the distributors: a guild whose time is up and obsolete, and which has no business trampling on our civil liberties.</strong></p>

<p>Let's see more people drop that part before the "but". If the copyright industry is right in saying that these laws are required to maintain the copyright monopoly, and I think they are, then that just underscores how we should stop pretending to endorse this guild-era monopoly, and instead say it is time for it to go.</p>

<p>And nobody will think the worse of you for stating that opinion. Quite the opposite. Nobody expects an honest politician or corpsuit.</p>

<p><em>Rick Falkvinge is the founder of the Swedish and first Pirate Party. Follow him as <a href="http://twitter.com/Falkvinge">@Falkvinge</a> on Twitter, read his <a href="http://falkvinge.net/">private blog</a>, or get him for <a href="http://falkvinge.net/keynotes/">a keynote</a>.</em></p><br /><br /><a href="http://www.techdirt.com/articles/20120102/16374417254/it-is-time-to-stop-pretending-to-endorse-copyright-monopoly.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120102/16374417254/it-is-time-to-stop-pretending-to-endorse-copyright-monopoly.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120102/16374417254/it-is-time-to-stop-pretending-to-endorse-copyright-monopoly.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>but-but-piracy</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120102/16374417254</wfw:commentRss>
</item>
<item>
<pubDate>Thu, 21 Apr 2011 06:38:07 PDT</pubDate>
<title>UK Politicians Want To Regulate Google... Because It's Good At What It Does</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110420/01455413971/uk-politicians-want-to-regulate-google-because-its-good-what-it-does.shtml</link>
<guid>http://www.techdirt.com/articles/20110420/01455413971/uk-politicians-want-to-regulate-google-because-its-good-what-it-does.shtml</guid>
<description><![CDATA[ I recognize that there's been a weird <a href="http://www.techdirt.com/articles/20110411/02301413844/uk-paper-insists-google-is-out-to-destroy-british-culture.shtml">backlash against Google</a> in the UK, since Prime Minister David Cameron has been asking questions about why companies like Google <a href="http://www.techdirt.com/articles/20101105/02161311736/uk-plans-to-review-copyright-laws-yet-again-with-eye-towards-fair-use.shtml">aren't starting in the UK</a>.  Rather than actually looking into the core issues, it appears that many are simply trying to take Google down a notch instead.  The latest, as pointed out by <a href="https://twitter.com/#!/glynmoody/statuses/60343824530153472" target="_blank">Glyn Moody</a> appears to be a bit of a retread of some older arguments.  However, it's being done by British MPs.  Yes, they're <a href="http://www.iptegrity.com/index.php?option=com_content&#038;task=view&#038;id=635&#038;Itemid=9" target="_blank">suddenly calling on the UK government to regulate Google</a>.
<br /><br />
Why?  Well, as far as I can tell, the argument is that Google is good at what it does, and people like it, so thus it must be punished.  I really wish there were more to it than that, but that really does seem to be the heart of it: let's regulate Google because we're jealous that it's successful.
<br /><br />
The debate apparently was kicked off by MP Dominic Raab, repeating the old story about Foundem, whose only purpose in life seemed to be to <a href="http://www.techdirt.com/articles/20101130/11035212059/wait-can-anyone-explain-why-google-should-promote-other-search-engines.shtml">bitch about Google</a>.  Foundem, of course, was a tiny search engine that no one heard of that <a href="http://econsultancy.com/us/blog/4456-foundem-vs-google-a-case-study-in-seo-fail" target="_blank">offered little value</a>, and was exactly the kind of website that people <i>hate</i> getting pointed to in search results, because it feels spammy.  Google -- quite reasonably -- buried Foundem's results.  It wasn't -- as Foundem's execs and Raab now claim -- because Google was "scared" of this competitor and was shutting it out of the market, but <b>because Foundem sucked</b> and people didn't like it.
<br /><br />
Yet Raab uses this example of Google <i>better serving its customers</i>, as an excuse to regulate the company:
<blockquote><i>
Mr Raab said that  the effect was to suppress Foundem  in Google search results. Mr Raab pointed out that the alleged treatment of Foundem would be sufficient to bury and kill off many businesses.  He accused Google of deliberately
"stacking the deck" against small competitors and called for government policy to address what he called &lsquo;search engine transparency'.
<br /><br />
Mr Raab accused the regulators, Ofcom and the Office of Fair Trading, of complacency. He called on them to take action against companies abusing dominance.  "Search engines are the gateways to the Internet, and with a 95% share, Google is in a dominant position"
<br /><br />
 "If Google does not allow consumers to access potential competitors via its search engine gateway, they will be choked out of the market-place" he said. 
</i></blockquote>
First of all, search engines are <a href="http://www.techdirt.com/articles/20101223/14325412399/anyone-notice-that-sites-dont-have-to-rely-google-so-much-traffic-any-more.shtml">less and less</a> the gateway to the rest of the internet in an age of social media.  Even if Google dominates in search traffic, more and more people are finding out about other sites online <i>from their friends</i> via social media.  Second, and more importantly, nowhere does Raab explain why what Google did was <i>bad</i>.  He just assumes that it must be bad.  However, if Google is suppressing <i>bad</i> results that users <i>don't want</i>, isn't that a good thing?  Serving customers better is a good thing, and if Foundem's having trouble getting users, the fault is clearly with Foundem, not Google.  And it's pretty weak for politicians to be looking to prop up a failed company, just because another company is good at what it does.<br /><br /><a href="http://www.techdirt.com/articles/20110420/01455413971/uk-politicians-want-to-regulate-google-because-its-good-what-it-does.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110420/01455413971/uk-politicians-want-to-regulate-google-because-its-good-what-it-does.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110420/01455413971/uk-politicians-want-to-regulate-google-because-its-good-what-it-does.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>searching-for-a-clue</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110420/01455413971</wfw:commentRss>
</item>
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<pubDate>Tue, 2 Nov 2010 13:47:24 PDT</pubDate>
<title>Hasbro Sends Sharron Angle Cease &#038; Desist For Monopoly-Like Game Board On Website</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101102/04180211683/hasbro-sends-sharron-angle-cease-desist-for-monopoly-like-game-board-on-website.shtml</link>
<guid>http://www.techdirt.com/articles/20101102/04180211683/hasbro-sends-sharron-angle-cease-desist-for-monopoly-like-game-board-on-website.shtml</guid>
<description><![CDATA[ It does seem odd that Nevada Senate candidate Sharron Angle (who apparently has a half-decent chance of winning) keeps running into intellectual property issues.  Angle, of course, was the candidate who <a href="http://www.techdirt.com/articles/20100708/04193710124.shtml">promised to sue</a> Harry Reid, whose job she's trying to take, for copyright infringement, because his campaign reposted an older version of her website to suggest she was changing her positions.  As far as I can tell, no such lawsuit was ever actually filed.  However, Angle got into some infringement hot water herself when Righthaven sued her for <a href="http://www.techdirt.com/articles/20100904/23231810908.shtml">copying</a> a LVRJ article on her website.  Now we can add Hasbro to the list.  <a href="http://www.techdirt.com/articles/20080724/1259431780.shtml">Hasbro</a>, the notoriously <a href="http://www.techdirt.com/articles/20090304/0202423987.shtml">overprotective</a> game maker, is <a href="http://www.huffingtonpost.com/2010/11/01/sharron-angle-hasbro-cease-desist_n_777107.html" target="_blank">threatening Angle because she put up a fake gameboard</a> for a game which attacks Reid.  Apparently, the boardgame looks too much like Monopoly for Hasbro's tastes.  Apparently, Hasbro wants to make sure it keeps its monopoly on Monopoly...  If Angle actually wins, it would be nice if she then used her new job to help fix problematic intellectual property laws that get in the way of free speech, but seeing as she seemed willing (at least in talking) to use the laws herself in the same manner, I doubt we'll see anything productive from her on this topic.<br /><br /><a href="http://www.techdirt.com/articles/20101102/04180211683/hasbro-sends-sharron-angle-cease-desist-for-monopoly-like-game-board-on-website.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101102/04180211683/hasbro-sends-sharron-angle-cease-desist-for-monopoly-like-game-board-on-website.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101102/04180211683/hasbro-sends-sharron-angle-cease-desist-for-monopoly-like-game-board-on-website.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>cultural-commentary</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101102/04180211683</wfw:commentRss>
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<pubDate>Mon, 28 Dec 2009 23:04:21 PST</pubDate>
<title>CenturyLink Won't Provide DSL, Wants To Block Competitor From Getting Fed Funds To Offer Wireless</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20091228/1801247525.shtml</link>
<guid>http://www.techdirt.com/articles/20091228/1801247525.shtml</guid>
<description><![CDATA[ It's no secret that many ISPs prefer to have a monopoly.  We've seen it over and over again in efforts to block competitors from getting into the space, while at the same time they lobby the government for more rights of way and other benefits.  The latest example is CenturyLink (a combination of CenturyTel and Embarq) in North Carolina.  The company has made it clear that it won't provide DSL to certain "low density" areas.  And if that's what it wants to do, fine.  But, it shouldn't then try to block those who <i>do</i> want to offer broadband, such as Electronic Solutions Inc., which Broadband Reports notes has <a href="http://www.dslreports.com/shownews/ISPs-Wont-Give-You-Broadband-Wont-let-Anyone-Else-Either-106148" target="_blank">applied for federal broadband stimulus funds</a> to offer wireless broadband services in those areas.  Yet, CenturyLink has <a href="http://stopthecap.com/2009/12/23/centurylink-opposing-broadband-stimulus-applications-that-might-overlap-its-person-county-nc-limited-service-area/" target="_blank">filed a complaint with the government</a> saying that because it offers broadband in "some or all" (see what it did there?) of the areas ESI wants to provide service in, CenturyLink is suggesting that the feds shouldn't give ESI the money it's asking for.
<br /><br />
Now, this is a case where accurate data on broadband penetration might be helpful, but when Connected Nation keeps <a href="http://www.techdirt.com/articles/20091223/1246267491.shtml">winning contracts</a> to provide such maps -- and Connected Nation is set up by the same broadband incumbents who don't want competition, guess how accurate those maps will be?<br /><br /><a href="http://www.techdirt.com/articles/20091228/1801247525.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20091228/1801247525.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20091228/1801247525.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>if-we-won't,-no-one-can...</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20091228/1801247525</wfw:commentRss>
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<pubDate>Wed, 5 Aug 2009 11:38:18 PDT</pubDate>
<title>Rep. Lofgren: A Real Antitrust Issue That Needs Scrutiny Is Copyright</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090805/1039465778.shtml</link>
<guid>http://www.techdirt.com/articles/20090805/1039465778.shtml</guid>
<description><![CDATA[ We talk here quite frequently about the fact that copyright (and patents) are gov't granted monopolies, and should be watched carefully because of that.  Historically, economically speaking, gov't granted monopolies are bad for innovation and the economy.  However, over the last few decades, there's been a big push by those who benefit from monopoly rents to try to redefine them as "intellectual property" rather than the more accurate description as a gov't granted monopoly.  For the most part, our elected officials have bought into that language shift.  Could that finally be changing back to a recognition that copyrights are monopolies and deserve the same scrutiny as any other economic monopoly?  Today we saw a small move in that direction with a Congressional Rep admitting that copyrights are a monopoly and deserve scrutiny from the Judicial Dept. for that very reason.
<br /><br />
I'm at the always-excellent <a href="http://www.netcaucus.org/events/2009/sotnwest/" target="_new">State of the Net West</a> event today, and the second discussion is about <i>Antitrust in the Internet Era</i>, and the discussion was introduced and led by Congresswoman Zoe Lofgren, who had a number of surprising (in a good way) remarks.  On traditional antitrust issues, she's worried that antitrust actions aren't being used to stop anti-competitive behavior but <i>for</i> anti-competitive purposes.  She notes that many in Congress don't really understand the purpose and reasoning behind antitrust and assume that dominance or marketshare automatically means there's an antitrust problem.  And, of course, there is the problem of regulatory capture.  So, she notes that you'll see elected officials basically read out talking points on antitrust issues from competitors -- rather than actually looking at whether or not there's real harm to the market.  So, she suggests that the framework for antitrust issues should be looking at <i>innovation</i> and whether or not that's happening or is being hindered.  Of course, the cynical out there (you know who you are) might suggest that these sound sorta like Google's talking points... Either way, she says she's trying to set up a seminar for the Judiciary Committee about antitrust, to get them better educated about the real issues related to antitrust, and that seems like a good thing.
<br /><br />
However, much more interesting and unexpected were her brief comments at the end of her remarks, where she took on copyright, noting that <i>it</i> is a gov't granted monopoly that deserves antitrust scrutiny.  She said, "Let's face it, copyright extension these days is 'limited' to the life of Mickey Mouse."  And yes, there was sarcasm in her voice over the word "limited."  The guy sitting next to me who works at Disney started shuffling uncomfortably.... Lofgren went on to say that copyright is being used to put up barriers to competition and innovation and is an issue that antitrust regulators really should be scrutinizing.  This is <i>really</i> surprising, but really good to hear.  Lofgren has been one of the (very) few elected officials who actually does "get" copyright issues, but this is the first time I've heard <i>any</i> elected official recognize that copyright is a monopoly/antitrust issue that deserves serious scrutiny for the way it's so frequently abused for anticompetitive purposes.<br /><br /><a href="http://www.techdirt.com/articles/20090805/1039465778.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090805/1039465778.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090805/1039465778.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>about-time...</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090805/1039465778</wfw:commentRss>
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<item>
<pubDate>Thu, 23 Apr 2009 09:42:52 PDT</pubDate>
<title>Forget Video Games... Look At The Evil Influence Of The Board Game Monopoly</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090422/2250554617.shtml</link>
<guid>http://www.techdirt.com/articles/20090422/2250554617.shtml</guid>
<description><![CDATA[ While hardly a month goes by without yet another indignant opinion piece arguing about how video games are corrupting our youth, it seems that some are now exploring the <a href="http://www.techdirt.com/articles/20080711/0218421649.shtml">moral panics</a> around other sorts of children's entertainment.  <a href="http://jedipunk.newsvine.com">Jedipunk</a> points us to a brilliant tongue-in-cheek parody of all those anti-video game "think of the children" stories... but <a href="http://www.telegraph.co.uk/comment/columnists/rowanpelling/5196174/Look-where-the-morals-of-Monopoly-have-got-us.html" target="_new">applying the same logic to the board game Monopoly</a>.
<blockquote><i>
For all the modern angst about violent computer games, this innocent-looking board game has probably had a more corrosive influence on western morals. For starters, Monopoly brazenly encourages players to plunder their savings and put every last penny into property.... Most pernicious of all Monopoly's venal influences, however, is surely the Community Chest card that says, "Bank error in your favour, collect &pound;200." There's no suggestion you should alert the bank to its mistake when you can buy a couple more houses and profit by some idjit's error.
</i></blockquote>
Indeed.  Alert the politicians!<br /><br /><a href="http://www.techdirt.com/articles/20090422/2250554617.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090422/2250554617.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090422/2250554617.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>i-mean...-seriously...</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090422/2250554617</wfw:commentRss>
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<item>
<pubDate>Wed, 7 Jan 2009 09:34:33 PST</pubDate>
<title>Today's Ridiculous Lawsuit: Wal-Mart, Netflix Sued Over Conspiracy To Create A Monopoly</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090106/2249073307.shtml</link>
<guid>http://www.techdirt.com/articles/20090106/2249073307.shtml</guid>
<description><![CDATA[ Way back in 2002, Wal-Mart decided to enter the <a href="http://www.techdirt.com/articles/20021015/0952210.shtml">online DVD rental business</a>, launching an almost exact replica of Netflix.  Of course, Wal-Mart quickly discovered what almost every other player in that marker discovered: just offering a competing service to Netflix isn't enough to get anyone to use it.  Wal-Mart had a lot of difficulty signing up customers (and keeping them once they signed up).  The whole project was going nowhere fast, and eventually, Wal-Mart decided that it was a waste of time to throw more money into a project that was pretty far removed from its main business, and decided to simply <a href="http://www.techdirt.com/articles/20050519/0945229.shtml">let Netflix take over</a> its online DVD rental service.  This was a reasonable business move.
<br /><br />
However, nearly four years later, a lawsuit has been filed claiming that <a href="http://www.latimes.com/business/la-fi-walmart7-2009jan07,0,2586887.story" target="_new">Netflix and Wal-Mart "conspired to create a monopoly" in the online video rental market</a>, and as a result of that monopoly, Blockbuster raised its prices.  Read that sentence again.  Netflix and Wal-Mart are being accused of creating a <i>monopoly</i> -- and because of that <i>monopoly</i> another major player in the space raised its prices.
<br /><br />
If there's another major player in the space, <i>there is no monopoly</i>.
<br /><br />
Besides, the folks bringing the lawsuit are going to have to convince a judge that the relevant market is online DVD subscription services, rather than any kind of home movie viewing service (which includes store rentals, purchases, internet downloads, subscription services and more).  This seems like a random bogus lawsuit targeted at a company with deep, deep pockets (Wal-Mart), rather than anything serious.<br /><br /><a href="http://www.techdirt.com/articles/20090106/2249073307.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090106/2249073307.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090106/2249073307.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>ugh</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090106/2249073307</wfw:commentRss>
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<pubDate>Mon, 15 Sep 2008 09:09:00 PDT</pubDate>
<title>Making Results Better For End Users Isn't Acting Like A Monopolist</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20080914/1943402262.shtml</link>
<guid>http://www.techdirt.com/articles/20080914/1943402262.shtml</guid>
<description><![CDATA[ With the Justice Department getting closer and closer to going after Google for supposed <a href="http://www.techdirt.com/articles/20080911/1812042242.shtml">antitrust</a> violation, we're going to see more and more articles like the one in the New York Times this weekend that tries to <a href="http://www.nytimes.com/2008/09/13/technology/13nocera.html?partner=rssuserland&#038;emc=rss&#038;pagewanted=all" target="_new">highlight the story of a company "harmed" by Google's market power</a>.  In this case, it's the story of a guy who runs a directory site that was based entirely on Google arbitrage.  He bought ads on Google's search engine to drive people to his directory page, and then littered the page with AdSense to collect revenue from people clicking through.  The NY Times presents this as being somewhat harmful, but I have to side with Jeff Jarvis who <a href="http://www.buzzmachine.com/2008/09/13/google-monopoly-or-marketplace/">doesn't see</a> what Google did wrong.
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Google arbitrage sites are a <i>problem</i> for the end user.  They're based on the simple concept of forcing people to go an extra click to siphon some money away.  If I'm looking for a particular site on Google I don't first want to go to a directory -- I want to go directly to the site.  That's true for many, many users -- and Google's efforts in punishing arbitrage sites isn't anticompetitive, it's about improving the user experience, which is something that should be praised, not sued.  The only <i>problem</i> noticed in the scenario was that the guy chose a bad business model, where he was totally reliant on a single company for both all of his traffic <i>and</i> all of his revenue.  He made the decision to base his entire business on a single supplier, and that supplier has every right to change the terms of its deals in an effort to make a better consumer experience.  This isn't Google being anticompetitive -- it's Google serving its customers.<br /><br /><a href="http://www.techdirt.com/articles/20080914/1943402262.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20080914/1943402262.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20080914/1943402262.shtml?op=sharethis">Email This Story</a><br />
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<slash:department>and-again-and-again-and-again</slash:department>
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