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<pubDate>Mon, 11 Mar 2013 15:01:50 PDT</pubDate>
<title>A Look At 'Ownership' Society</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130311/01065122276/look-ownership-society.shtml</link>
<guid>http://www.techdirt.com/articles/20130311/01065122276/look-ownership-society.shtml</guid>
<description><![CDATA[ We're big fans here of the WNYC radio show <a href="http://www.onthemedia.org/" target="_blank"><i>On The Media</i></a> which regularly covers a number of the same issues we cover here at Techdirt.  So we were quite thrilled to hear that their latest episode was entirely devoted to one of our favorite topics: <a href="http://www.onthemedia.org/2013/mar/08/" target="_blank">The Past, Present, and Future of Ownership</a>, mostly as it relates to ownership of things that are non-rivalrous and non-excludable.  There were lots of great segments:
<ul>
<li><a href="http://www.onthemedia.org/2013/mar/08/current-state-ownership/" target="_blank"><i>The Current State of Ownership</i></a>: which covered the <a href="http://www.techdirt.com/articles/20130304/02525022185/get-ready-drm-physical-goods.shtml">DRM Chair</a>, and also talks to one of our favorite scholars on the subject, Professor James Boyle, about how the concept of "ownership" of culture has gone too far.
</li><li><a href="http://www.onthemedia.org/2013/mar/08/happy-birthday/" target="_blank"><i>Happy Birthday</i></a>: which explored the history of the song and the claims that Warner Music owns it -- even though all of the evidence suggests that Happy Birthday is 100% <a href="http://www.techdirt.com/articles/20101021/17504911532/reminder-despite-what-you-may-have-heard-happy-birthday-should-be-in-the-public-domain.shtml">in the public domain</a>.  In the segment, producer PJ Vogt suggests that he wanted to test this by putting up a version of the song on iTunes, but unfortunately, their lawyers nixed that idea.
</li><li><a href="http://www.onthemedia.org/2013/mar/08/fan-fiction-and-law/" target="_blank">Fan Fiction and the Law</a>: in which they talk to another of our favorite scholars, Rebecca Tushnet on the nature of fair use.
</li><li><a href="http://www.onthemedia.org/2013/mar/08/3d-printing/" target="_blank">3D Printing</a>, in which Chris Anderson explains how 3D printing is going to change the world in amazing and astounding ways.
</li><li><a href="http://www.onthemedia.org/2013/mar/08/dont-screw-it/" target="_blank">Don't Screw It Up</a>, in which Public Knowledge's Michael Weinberg worries about politicians killing off all those amazing and astounding things that Chris Anderson talked about once they freak out about how 3D printing will disrupt a bunch of industries.
</li><li><a href="http://www.onthemedia.org/2013/mar/08/plagiarism-maybe-its-not-so-bad/" target="_blank">Plaigiarism: Maybe It's Not So Bad</a> where they talk to professor Kenneth Goldsmith, the new poet laureate of the NY MOMA, who apparently thinks that plagiarism is an art form.  He apparently has his students buy an online term paper, hand it in, and then has them defend it as if it was their own.  At one point, he notes that students are doing this anyway, so he might as well teach them to be better at it.
</li></ul>
All in all a great program for folks interested in these topics.  There was only one segment that I found disappointing.  I get the feeling someone at OTM felt they needed someone to represent "the other side" of the argument that "ownership society" has gone too far, and so they had musician and critic of the "new media world," David Lowery (you may recall him from <a href="http://www.techdirt.com/blog/?tag=david+lowery">the past</a>, like when he claimed that Apple iTunes did nothing more than <a href="http://www.techdirt.com/articles/20120220/00310917802/if-youre-going-to-compare-old-music-biz-model-with-new-music-biz-model-least-make-some-sense.shtml">host songs</a>, leaving out the whole aspect of bringing everyone together, processing payments, etc.)  In that segment, he chooses to <a href="http://www.onthemedia.org/2013/mar/08/meet-new-boss-worse-old-boss/" target="_blank">take a swipe</a> at <a href="http://www.techdirt.com/skyisrising/" target="_blank"><i>The Sky is Rising</i></a> report, which I co-authored, and he does so by completely misrepresenting what's in the report, as he has done in the past.  I responded in the comments on that story on OTM's own site, and a lively discussion has ensued.  Furthermore, Lowery took a completely gratuitous swipe at Amanda Palmer, bizarrely suggesting that the only reason she's successful is her penchant for getting naked.  His disdain for someone who actually is successful by embracing fans and the internet is quite clear and insulting to the thousands of artists who have found success online whether or not they get naked.  I don't mind people disagreeing with my opinion, but flat out saying we said stuff we never said is pretty bad, as is gratuitous insults for successful artists like Amanda Palmer, and it hurts OTM's reputation to present such things in that format.
<br /><br />
Either way, it's great to see the rest of the segments get public attention, as more and more people are recognizing that copyright law today is broken, and is creating a society where a focus on "ownership" takes things so far, as to actually hinder the rights of the public in dangerous ways.<br /><br /><a href="http://www.techdirt.com/articles/20130311/01065122276/look-ownership-society.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130311/01065122276/look-ownership-society.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130311/01065122276/look-ownership-society.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>it's-gotten-out-of-hand</slash:department>
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<pubDate>Wed, 5 Dec 2012 09:33:51 PST</pubDate>
<title>Why Copyright Shouldn't Be Considered Property... And Why A Return To 1790 Copyright May Be Desirable</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121205/03474821235/why-copyright-shouldnt-be-considered-property-why-return-to-1790-copyright-may-be-desirable.shtml</link>
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<description><![CDATA[ We recently <a href="http://www.techdirt.com/articles/20121119/07554721091/new-book-makes-case-why-copyright-needs-to-be-reformed.shtml">mentioned</a> that Jerry Brito of the Mercatus Center at George Mason University was publishing a book about the "free market case for copyright reform," called <a href="http://mercatus.org/copyrightunbalanced/" target="_blank">Copyright Unbalanced: From Incentive to Excess</a>. It's now <a href="http://www.amazon.com/Copyright-Unbalanced-From-Incentive-Excess/dp/0983607753/" target="_blank">available at Amazon</a>.  They also have a <a href="http://mercatus.org/copyrightunbalanced/Copyright_Unbalanced-Chapter_1.pdf" target="_blank">free chapter</a> available on the site.  Brito was kind enough to send me an advance copy of the short book, and it's a worthwhile read.
<br /><br />
Not surprisingly, it fits in quite well with our ongoing discussion of the recent RSC paper by Derek Khanna, and more specifically our <a href="http://www.techdirt.com/articles/20121121/23215021120/copyright-maximalists-attempt-to-downplay-significance-rsc-report-chanting-their-mantra-copyright-is-property.shtml">recent discussions</a> on why it makes little sense to assume that <a href="http://www.techdirt.com/articles/20121204/02422821219/fixing-copyright-is-copyright-part-free-market-capitalism.shtml">copyright is property</a> in economic terms.  As we've noted, it has <i>some</i> property-like attributes and many non-property-like attributes.  Ignoring the non-property-like attributes, even though they have vast economic implications, is a huge mistake, and basically means ignoring fundamental economics.
<br /><br />
Those posts have led to some interesting (and some less interesting) discussions in the comments.  And, in a bit of perfect timing, Brito's latest edition of his "Surprisingly Free" podcast <a href="http://surprisinglyfree.com/2012/12/04/tom-bell/" target="_blank">is with law professor Tom Bell</a> and makes one of the absolute best arguments I've heard -- from the legal perspective -- for why it's an absolute mistake to claim that copyright is property, contrary to the claim of some of the amateur lawyers in our comments.  Seriously, just listen to the podcast, but I'll highlight a few snippets.
<blockquote><i>
Copyright is not quite like other types of property.  It has some similarities, to be sure, but at its root it is <b>fundamentally different than tangible property</b> like fields and houses and cars and computers.  And that's because it is non-rivalrous in consumption.  Copyright is a special kind of economic good and special kinds of rules should therefore apply to it.  Among those rules, you should have those that take into account that you can have too much copyright.... 
</i></blockquote>
That, of course, is really no different than what we've said for a while.  It has property-like attributes, but many non-property like attributes as well.  Brito then makes the argument that copyright <i>is</i> a form of property, and then Bell highlights a few more differences about where copyright originates legally speaking, and also highlights some similarities.
<blockquote><i>
I don't want to get into a semantic discussion, but I am not completely comfortable with calling copyright property.   Simply saying property.  I don't even like the phrase intellectual property.  I prefer <u>intellectual privilege</u>.  I think copyright is a privilege, because <b>it's created by statute, it doesn't exist in a state of nature, it's not recognized by common law.  It's purely the creature of statute</b> and you can't say that about the sorts of property rights we enjoy in our persons and in our farms and our cars and computers.  Those rights, the rights in those forms of tangible property... you can't deny they're protected at the common law.  And many people, me among them, would say that they're protected in a state of nature.... 
<br /><br />
Important ramifications follow from what you call copyright.  Me?  I like to say <b>it's a privilege that has certain property-like aspects</b> and indeed the best things about copyright -- and there's a lot to like about copyright -- are those features that most resemble property.  It's alienable, you can transfer it to other people, you can go to the copyright office and check to see who owns the copyright.  There is something like trespass afforded to people who suffer wrongful use of their property.  Wonderful things.  That's the best thing about copyright.
</i></blockquote>
Brito points out, in response, that there are other "intangible" forms of property, naming taxi medallions and tradeable emissions permits. Bell points out that those often are <b>not</b> considered property.
<blockquote><i>
I was just talking to someone who works out here in Southern California in the local regional air quality control board, and we got into this conversation, and he said <b>"we don't call them property, we don't even call them privileges, we call them permits</b>"  I said "well you can buy and sell permits" and he said <b>"there are some things that are like property, but we don't call them property, because we don't want the state thinking, for example, we can't change the rules without suffering a takings claim."  And that's true of copyright as well.</b>  Look, if Congress decides tomorrow, that we're going to just stop copyright -- they won't, but they might say, per some of the suggestions, of our reformers in our book -- we're going to tinker around the edges, and maybe, just once, around the edges, trim back the restrictions.  If they did that, would they face a takings claim?  No, no!  It's just not part of common law...
</i></blockquote>
This is interesting, because I had actually believed that copyright likely <i>would</i> be covered by a "takings" claim (i.e., a prohibition under the 5th Amendment on "taking" away some property).  But as Bell notes, since copyright is not subject to common law, it seems wrong -- and to him, preposterous -- that it would be subject to a takings claim.  Of course, just watch: I bet if copyright <i>is</i> trimmed back, the entertainment industry will bring a case under this very theory.
<br /><br />
Bell then goes on to point out why, if such a "takings" claim <i>was</i> allowed, there would be a pretty big Constitutional problem very quickly.  And it stems from the "limited times" clause under copyright.  You'd have a bit of a conflict there, wouldn't you?
<blockquote><i>
Let's recognize, that if you take that approach to copyright, you pretty quickly run into a tough paradox.  And it's that the Constitution, says that "only for limited times" shall lawmakers protect these works of authors.  So if you're a fan of real property, intangible property, as I am, you don't want to hear about lawmakers saying "we're putting a fuse on your property rights in your house or your car or your computer.  We're going to let you have property rights for, oh, maybe 20 years and then 'poof' it's gone, anybody can take it."  No, we would take exception if the federal government said that policy with regard to our 401ks or our houses or cars, and for good reason.  Yet that's the policy we have copyrights, and it's <b>by design</b>.  It's in the Constitution.  It's as if the Constitution had a clause that said 'oh also, property rights in your farms and factories and houses -- yeah, we're going to end all those after 34 years.'  That's not how they treat tangible property.  We're glad of that.  And yet that is how we treat copyright and I think we should be glad of that.
</i></blockquote>
From there, Bell goes on to talk about the recommendations he makes in the book for how copyright should be reformed -- and he definitely goes pretty far out there with them:
<ol><i>
<li>Reinstate the Founders&#8217; Copyright Act,
</li><li>Withdraw the U.S. from the Berne Convention,
</li><li>Develop misuse doctrine into an escape from copyright,
</li><li>Focus copyright policy on consumers&#8217; costs, not producers&#8217; profits, and
</li><li>Reconceive &#8220;IP&#8221; as &#8220;Intellectual Privilege.&#8221;
</li></i></ol>
The discussion on those is very interesting, both in the book and in the podcast.  I won't spoil it all for you yet, but I will say that, yes, he's talking about going back to what copyright law was in 1790 -- meaning that it only lasts for two 14 year terms, and that it should cover <i>only</i> "maps, charts and books" since that's what the founders intended.  Also, infringement only happened <i>if you copied the entire thing</i>.  Copying a section was fine.  Interestingly, Bell's next book (also published by Mercatus) will apparently be published under those exact terms.  As for why other things shouldn't be covered, well, he notes that the founders didn't appear to think such expressive works like music, painting and sculpture required copyright, and it's not clear why that should have changed.
<br /><br />
There's also the "misuse" doctrine aspect, which is fascinating, in that he thinks it could act as a form of "training wheels" for a world without so much reliance on copyright:
<blockquote><i>
How can misuse doctrine open an escape from copyright? The 
doctrine bars claims of copyright infringement that arise under 
conditions of misuse. It does not, however, bar claims premised 
on violations of common-law rights, such as trade secrets or the 
contractual terms of a license. In effect, misuse doctrine corrects 
the overweening power that results from combining copyright 
privileges with common-law rights, by negating only the former. 
Suppose for instance that a copyright holder wrongly tried to squelch 
rights protected by the First Amendment and the fair use doctrine 
by including in its license a clause forbidding public criticism of 
the work. A court might remedy that misuse by denying the considerable enforcement powers afforded by the Copyright Act even 
while leaving the underlying contract in force. In practical terms, 
the dispute would become a matter of state contract law rather than 
federal legislation. Repeated applications of the same doctrine in 
other cases would eventually encourage the development of business models premised solely on contract law, tort law, trade secret 
law, and other common-law devices. Misuse thus opens an escape 
from a world where copyright comprehensively regulates access 
to expressive works to one where only common-law rules apply
</i></blockquote>
I'm not sure I fully agree with that -- and I can actually see how contract law could create a worse scenario (in which things like fair use, first sale, etc. would not be allowed). But it is a thought-provoking discussion.
<br /><br />
One other point that was quite interesting.  Bell argues that when you claim that copyright is "property" you actually harm real property rights, because things like fair use, first sale and other such "exceptions" suggest that it's equally fine to create similar exceptions to real property, and that's a road that we shouldn't want to travel down.
<br /><br />
If you'd actually like to see that discussion <i>live</i> and want to see some sparks fly, the Cato Institute is <a href="http://www.cato.org/event.php?eventid=9216" target="_blank">hosting a discussion of the book</a> with Brito and Bell, and moderated by Jim Harper... but also with the RIAA's Mitch Glazier to (I am guessing) argue strongly against all of this.  I imagine that ought to be entertaining, and it appears they'll be streaming the whole thing live online, Thursday at noon ET, 9am PT.  Should be a fun time.<br /><br /><a href="http://www.techdirt.com/articles/20121205/03474821235/why-copyright-shouldnt-be-considered-property-why-return-to-1790-copyright-may-be-desirable.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121205/03474821235/why-copyright-shouldnt-be-considered-property-why-return-to-1790-copyright-may-be-desirable.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121205/03474821235/why-copyright-shouldnt-be-considered-property-why-return-to-1790-copyright-may-be-desirable.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>bold-moves</slash:department>
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<pubDate>Mon, 26 Nov 2012 10:15:00 PST</pubDate>
<title>Copyright Maximalists Attempt To Downplay Significance Of RSC Report By Chanting Their Mantra: Copyright Is Property</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121121/23215021120/copyright-maximalists-attempt-to-downplay-significance-rsc-report-chanting-their-mantra-copyright-is-property.shtml</link>
<guid>http://www.techdirt.com/articles/20121121/23215021120/copyright-maximalists-attempt-to-downplay-significance-rsc-report-chanting-their-mantra-copyright-is-property.shtml</guid>
<description><![CDATA[ As promised, we're going to continue working on our series of posts analyzing the Republican Study Committee's (RSC) <a href="http://www.techdirt.com/articles/20121116/16481921080/house-republicans-copyright-law-destroys-markets-its-time-real-reform.shtml">report</a> on copyright myths and how to fix the broken system.  We already explored the first myth the paper discusses, that the purpose of copyright is to <a href="http://www.techdirt.com/articles/20121120/18240721105/fixing-copyright-purpose-copyright.shtml">compensate the creator</a>.  That has simply never been true.  The purpose is laid out plainly: "to promote the progress of science and the useful arts."  And if you really want to go back to the original meanings of all of this, the "science" part is what copyright was talking about, and they really meant for it to cover <i>learning</i>.  It was not originally intended for all creative content at all.  That's a later bastardization.  Even so, it's pretty clear that the purpose of copyright was to "promote the progress."  The <i>mechanism</i> was to create an artificial scarcity, via exclusion, that helped support one possible business model for content creators: selling copies of their works for a limited time.  That's it.  The purpose: promote the progress.  The mechanism: artificial scarcity.  The problem is when people confuse those two and assume the "mechanism" is the purpose.  Tragically, that's what happens all too often.
<br /><br />
After we published the initial post on this, some complained that we weren't giving "the other side" fair hearing.  So with this post, I wanted to highlight three responses from copyright maximalists, who claim that the arguments made in the RSC paper are faulty.  It's important to understand what is being said and where these arguments come from.  Let's start with Tom Giovanetti, the man who once called me a "bolshevik" for suggesting that copyright reform was necessary.  Amusingly, Giovanetti appears to <a href="http://www.ipi.org/ipi_issues/detail/copyright-and-the-gop" target="_blank">take credit for getting the RSC to pull the document</a>, though we know that those with much more significance made the calls that actually had an impact.  However, Giovanetti's dismissal of the RSC paper is based on one adamant statement: that copyright is property.  Period.  End stop.  No questions.
<blockquote><i>
Rather, it's because, as a property right, copyright is a critical element within the GOP's market-orientation. Markets simply don't work without property rights. You can't have contracts, or licensing, if you don't have clear and enforceable property rights. ALL business models, not just "new" business models, rest on property rights.
</i></blockquote>
This is one of those "nice in theory, totally not true in practice" claims.  Here's the thing: copyright has <em>some</em> elements that are "property-like."  It allows legal exclusion, like property.  It can be sold and transferred, like property.  But it has many facets that are not at all like property.  The content in question is non-rivalrous and non-excludable for the most part.  That's not at all like property.    Anyone who defines it as property, without acknowledging the "non-property-like" attributes, is either ill-informed or being purposely misleading.  I'll leave it to the reader to determine which is the case here.
<br /><br />
As for the idea that all business models "rest on property rights," that's an interesting argument, but again one not supported by reality.  Many business models are built on real property rights -- that is, property rights around scarce goods, which are excludable and rivalrous -- but when it comes to non-scarce or infinite goods, there are lots of new business models generated, often by increasing the value of different scarcities.  To prove Giovanetti wrong is easy.  You just point to any one of the the many content creators who give away their works for free, and profit elsewhere.  Hell, point to us.  You're reading this for free, and we're making money -- without relying on the "property right" of copyright.  Are we relying on some other property rights?  Sure.  Property rights for real, scarce, property.
<br /><br />
And that's the real problem with those who just default to the "copyright = property" argument.  It's silly and it's meaningless, because the fact that you can't necessarily rely on copyright for all your profits does not mean there aren't other property rights by which you can make money.  In fact, history has shown time and time again that when something is subject to unfettered copying, new business models appear elsewhere.
<blockquote><i>
Further, because the GOP believes in innovation, copyright is a natural fit, because copyright incentivizes and encourages the creation, distribution and promotion of new information. The alternative to copyright isn't free information, but less creation, less widely distributed and marketed.
</i></blockquote>
This is also empirically untrue.  Giovanetti seems to want to tell fairy tales by ignoring the actual evidence.  Over the last decade, at a time when copyright infringement has been widespread, the amount of content created has <a href="http://www.techdirt.com/skyisrising/">skyrocketed</a> at unprecedented rates, and that content has been much more widely distributed and marketed, thanks in part to new technologies. 
<br /><br />
Furthermore, if we're going to go hardcore "property rights," then it would seem that Giovanetti should really be supporting the copyright reformers, since current copyright reform tramples on property rights all the time.  My DVR can't automatically skip commercials.  But I paid for it.  Why can't I have it do what I want it to do?  I bought this DVD, why can't I legally move the content to my computer to watch it?  I bought this book in Thailand, why can't I now sell it in the US?  These are all issues where copyright is currently invading my property rights.  Now, you can make an argument that these are reasonable restrictions on my rights, but if you're going to just scream "property rights" like Giovanetti does, you would think that it's only fair to highlight the ways copyright intrudes on property rights as well.  But he doesn't. So, it's difficult to take Giovanetti seriously on this point at all.  And since his entire argument is based on this fallacy, let's just move on.
<br /><br />
Next up, we've got the Copyright Alliance, a lobbying organization that was set up to protect large studios and record labels' interests while pretending to support creators' interests.  They brought along a law professor named Mark Schultz, who you would hope would understand the law, but in fact has a rather simplistic argument that not only falls into the same Giovanetti trap of "but, but, but copyright is property," but goes further in arguing that copyright reformers are <a href="http://www.copyrightalliance.org/2012/11/copyright_economic_freedom_and_rsc_policy_brief" target="_blank">really just a bunch of evil "collectivists" seeking to redistribute property</a> from those who rightfully own it to anyone else.
<blockquote><i>
The people who create expressive works deserve to own them and benefit from them. So do the companies that finance and purchase these works for commercial exploitation.
</i></blockquote>
Note that we're already starting off on a bad foot, where the entire basis of the argument is a purely moral one -- that people "deserve" to "own" expressive works.  But this statement, beyond pulling at the moral question rather than anything factual, suffers from significant problems.  First, what is the "them" that people "deserve" to own? The original work?  Sure.  But, just as a candlemaker owns that candle, once he sells it to someone else, he no longer "owns" that candle.  So, this is a pretty weak starting point.  All copies of the work down the line?  Well, that's a problem too.  Because if I buy that candle, I can make a copy, and I'm not violating anyone's rights in the tangible world.  So, already we seem to be stepping beyond the normal bounds of how these things work.  But we're just beginning down a weird rabbit hole stuffed to the brim with strawmen that Schultz wants so badly to knock down:
<blockquote><i>
Many modern copyright scholars and commentators have embraced a severe utilitarian view of copyright. In this view, the sole justification for copyright is the benefit that creators provide to society. Society would benefit most if creators worked for free, but, alas, we cannot always convince them to do so. Copyright is thus an unfortunate necessity, given to creators to induce them to provide society what it needs. The labor or welfare of creators has no importance under this view&#8212;they and their works exist to serve the good of the greatest number.
</i></blockquote>
I know of no person, on any side of this debate, who has argued that "society would benefit most if creators worked for free."  What many of us have argued is that there are more compelling and useful business models from which they can benefit, while also providing greater societal benefit.  In economics, it's called increasing the pie.  But people like Schultz, who perhaps have little background in economics, seem to think that this is a zero sum game -- and if anyone else benefits, it means the content creator must be losing.  Reality says something quite different.  You can expand the pie such that the creator can benefit, and profit, and so can society.  That's what many of us are aiming towards.
<br /><br />
Furthermore, the claim that "copyright is a necessity" to incentivize creation once again ignores the fact that there are other, significant business models that don't rely on copyright at all.  It's difficult to take someone seriously when they set up a strawman that reflects an argument no one is actually making... and then knock it over with an even sillier argument that ignores the reality of the market.
<blockquote><i>
As between creators (along with those who finance and/or purchase the rights to their work) and others, who has a better claim to control and exploit a work of authorship? Of course, to a dedicated IP utilitarian, this question is irrelevant. Nobody deserves anything; society takes what it needs, subject to the need to persuade the producer to keep producing what the takers want. While such a churlish and ungenerous view of creators is apparently acceptable to some, many would find the implications chilling.
</i></blockquote>
Again, this is a pure strawman, made up in the fantasy world that lives in Schultz's mind.  I've never seen anyone argue that "society takes what it needs."  But he's right that the question he's asking is irrelevant.  He's asking who is best to "control and exploit" something that does not need to be controlled or exploited in the manner he suggests.  As an analogy, it is like he is saying "who better to control and exploit the road in front of your house, than the house owner?"  You could legitimately make that argument.  But, of course, we don't think of the road in front of your house as being something that someone needs to "exploit."  Why?  Because it is a piece of infrastructure that creates much greater benefit for everyone, such that they can profit.  This is not a case of taking away rights from someone to make them worse off.  It is about using core infrastructure to increase the pie and make greater opportunities for everyone.  When viewed that way, you can see where focusing on the direct exploitation of each work is pretty silly.  What if, instead, the system that works is one in which the music enables many other business models that allow for greater profits?
<br /><br />
So, Schultz's argument is based on the same basic fallacy as Giovanetti's, just at a slightly higher intellectual level.  Rather than just focusing on "copyright is property," Schultz is arguing both that copyright is property, and that we live in a zero sum world.  Since neither point is true, his argument falls apart entirely.  Moving on.
<br /><br />
The final stop on our tour of rationalization comes from Terry Hart's Copyhype blog, where he kicks it off with a bizarre, and entirely <a href="http://www.copyhype.com/2012/11/republican-study-committee-policy-brief-on-copyright-part-1/" target="_blank">false statement about me</a>, claiming that I stated I will "no longer be able to enjoy future papers, for they will only pale in comparison."  I said no such thing, nor do I believe any such thing.  Hart is usually quite careful in his statements, and the fact that he needs to resort to an outright lie to kick off his post should give you a sense of where he's going to come from with his attack on Derek Khanna's paper.
<br /><br />
Most of Hart's arguments are based on taking snippets of quotes from people in the past to argue "nuh-uh" to things in Khanna's paper.  That is, rather than argue reality, let's focus on what someone said years ago if it disagrees with the paper.  That's not particularly convincing.  It is not difficult to come up with just as many quotes from people arguing the opposite viewpoint at the same time.  So, for example, he quotes some people arguing that copyright is property -- both among the Founders and more recently at the Supreme Court.  But, it is equally true that there were Founders who believed copyrights to be evil monopolies, and there are Supreme Court rulings that state that copyright is not like property.  So, I'm not sure what good random quotes (sometimes out of context) do for this argument.
<br /><br />
But then we get to the crux of Hart's argument, which presents a rather troubling and misguided understanding of innovation in capitalist societies:
<blockquote><i>
One of the favorite claims of copyright skeptics is that creators routinely oppose new technology because it &#8220;disrupts their business model.&#8221; On the contrary, it is often the case that the businesses utilizing the new technology are the ones who feel entitled &#8212; entitled to profit off the exploitation of established rights without compensating creators merely because they are using new technology. In this case, creators do &#8220;deserve&#8221; compensation. This isn&#8217;t a prize at the bottom of the box, it&#8217;s one of the foundations of a just capitalist society.
</i></blockquote>
Note that we're taking a step up the intelligence scale here from Schultz, but basically making a more advanced version of the same argument: that someone "deserves" something.  Again, this is a moral argument that distracts from the point and is hard to support in reality.  Second, there is a major assumption in that paragraph that is simply untrue: the idea that companies "feel entitled to profit... merely because they are using new technology."  Nothing could be further from the truth, especially in a "just capitalist society."  In such worlds, there is no "entitlement" to profit.  There is merely <i>what you can get in the market.</i>  What many new companies are doing is not feeling entitled to profits because of new technologies, but <i>using new technologies to create economic growth</i> and then using that economic growth to put in place a business model in which people or companies transact with them willingly, such that they can profit.
<br /><br />
That is how capitalism works.
<br /><br />
What many maximalists seem to fail to understand is that these new technology providers <i>increase the pie</i>.  They create economic growth through new technologies and services, and they profit from some of that, but also leave open much of that expanded market for others to profit.  This is true throughout history.  I know that Hart, in particular, tends to break out in hives (a joke) whenever anyone brings up the "VCR," but it's an instructive example.  The movie industry insisted that it was allowing consumer electronics companies to "profit off the exploitation of established rights without compensating creators merely because they are using new technology."  And, yes, while Hart would like to scrub this point from history, Jack Valenti did say that the VCR was to the American filmmaker what the Boston Strangler was to the woman at home.  It was, as Valenti was making clear, supposedly going to kill the industry.
<br /><br />
But it didn't.  It was merely <b>five years</b> after Valenti said those words during a Congressional hearing that revenue to the Hollywood studios from home movies surpassed the box office.  Five years.  And it didn't require a new law.  Or forcing these "tech companies" to pay the rights holders what they "deserved."  No, instead all it took was the entertainment industry adapting to the new technology and realizing that the pie grew.  Massively.
<br /><br />
Amusingly, in his <a href="http://www.copyhype.com/2011/11/the-story-of-john-and-jack/"><em>let's forget Jack Valenti</em></a> post from last year, Hart had the following to say about the "myth" that copyright reformers build around Valenti's testimony:
<blockquote><i>
the myth that &#8220;content industries hate technology&#8221; fails for several reasons. It requires fabricating a group (&#8220;the content industry&#8221;), ascribing a broad characteristic to it (&#8220;hates technology&#8221;), and then pulling together disparate quotes from anyone who has stated a concern over some new technology as proof of the theory.
</i></blockquote>
Yet, of course, that's the exact same thing that Hart does in his post trying to debunk Khanna's paper.  He fabricates a group ("the tech industry") ascribes a broad characteristic to it ("feels entitled to profits that others deserve because of new technology") and then pulls together disparate quotes as proof of that theory.
<br /><br />
So, while I find Hart's critique of Khanna's work <i>informative</i> in surfacing a few interesting historical quotes, it too fails for the same basic reasons as the other two responses cited above.
<br /><br />
That said, I appreciate that they are willing to jump in to the debate, and find it sad that members of Congress, whether Republican, Democrat or anything else, have decided that it's not even worth having this debate at all.<br /><br /><a href="http://www.techdirt.com/articles/20121121/23215021120/copyright-maximalists-attempt-to-downplay-significance-rsc-report-chanting-their-mantra-copyright-is-property.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121121/23215021120/copyright-maximalists-attempt-to-downplay-significance-rsc-report-chanting-their-mantra-copyright-is-property.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121121/23215021120/copyright-maximalists-attempt-to-downplay-significance-rsc-report-chanting-their-mantra-copyright-is-property.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>you-can-say-it-as-many-times-as-you-want-and-it's-still-not-true</slash:department>
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<pubDate>Wed, 19 Sep 2012 08:46:44 PDT</pubDate>
<title>Anyone Who Says Copyright Cannot Be Used For Censorship Has No Credibility</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120917/00222620398/anyone-who-says-copyright-cannot-be-used-censorship-has-no-credibility.shtml</link>
<guid>http://www.techdirt.com/articles/20120917/00222620398/anyone-who-says-copyright-cannot-be-used-censorship-has-no-credibility.shtml</guid>
<description><![CDATA[ Adam Mossoff is a law professor at George Mason University.  I've come across some of his previous writings in the past, and have been repeatedly impressed at just how disconnected from reality they tend to be.  However, his latest piece, for the Austin American-Statesman takes the cake, entitled simply: <a href="http://www.statesman.com/opinion/insight/copyright-doesnt-limit-online-speech-2459014.html?cxtype=ynews_rss&#038;utm_source=twitterfeed&#038;utm_medium=twitter" target="_blank">Copyright doesn't limit online speech</a>.  Of course, this is empirically false.  Anyone who is even remotely intellectually honest admits that copyright can (and has) been used to limit speech.  Just ask the operators of a <a href="http://www.techdirt.com/articles/20111208/08225217010/breaking-news-feds-falsely-censor-popular-blog-over-year-deny-all-due-process-hide-all-details.shtml">hip hop blog</a> who had the site seized for over a year based on nothing other than an unsubstantiated claim by the RIAA.
<br /><br />
Or, how about the Russian activists who were shut down after the Russian government <a href="http://www.techdirt.com/articles/20100912/12440610969.shtml">used copyright claims</a> to seize their computers?
<br /><br />
So how does Mossoff get around that? Simple.  If you can't argue the facts, just make up a scenario that works in your favor.  He sets up a perfect strawman, insisting that those who argued against SOPA and PIPA claimed that <i>all</i> copyright violates the First Amendment:
<blockquote><i>
The argument that copyright violates the constitutional right to free speech seems to have particular force on the Internet, because, in the words of one federal court decision, "The Internet is a communications medium." Copyright owners seem to squelch this communication: They compel websites to take down infringing videos, music and writings. The music industry successfully sued widely used peer-to-peer services such as Napster and Grokster, and it continues to use automated programs called bots to track what music people download and from what websites. SOPA expanded copyright owners' legal rights to block websites containing infringing content, in effect relegating these websites to digital purgatory. As a law professor stated at a conference over the summer: "Copyright is the engine of censorship."
</i></blockquote>
But Mossoff then claims this is crazy talk, because he has bought into the view that copyright is not the monopoly privilege that it is but that it's "property."  Of course, that's hogwash.  The purpose of "property" is to best allocate <i>scarce</i> resources.  "Property" does not make sense either intellectually or economically for things that are not scarce, such as content.  Copyright is not a property right, no matter how many times maximalists incorrectly insist it is.  However, even if we accept Mossoff's incorrect assertion, he then layers on the ridiculous by claiming that copyright has no impact on speech other than that which is covered by copyright:
<blockquote><i>
Thus, copyright law secures the fruits of creative labors, but only those specific fruits &#8212; the value in the specific text, picture or song created by the artist.
<br /><br />
The right to free speech is the right to express one's thoughts without censorship by the government. Copyright does not prohibit anyone from creating their own original novels, songs or artworks. Importantly, copyright does not stop people from thinking, talking or writing about copyrighted works.
</i></blockquote>
Okay.  So what about all the original content created on the blogs that the government took down using copyright law?  Or the speech of those Russian activists?  This is where Mossoff appears to have a total blindspot, common to someone in academia with no experience in the real world.  Copyright is not used just to protect the rights granted under the Copyright Act.  It is used <i>regularly</i> to shut down <i>other expression</i>. 
<br /><br />
 Copyright claims <a href="http://www.techdirt.com/articles/20120904/22172920275/copyright-killbots-strike-again-official-dnc-livestream-taken-down-just-about-every-copyright-holder.shtml">took down</a> the official DNC livestream.  Bogus copyright claims <a href="http://www.techdirt.com/articles/20120903/18505820259/copyright-enforcement-bots-seek-destroy-hugo-awards.shtml">took down</a> the official Hugo Awards live stream.  Bogus copyright claims <a href="http://www.techdirt.com/articles/20120814/16393220051/universal-music-uses-bogus-dmca-claim-to-take-down-negative-review-drakes-album.shtml">took down</a> a negative review of a Universal Music album.  Questionable copyright claims <a href="http://www.techdirt.com/articles/20120715/14504819702/dan-bull-censored-copyright-protesting-being-censored-copyright.shtml">took down</a> parody commentary by Dan Bull, expressing his opinion on another copyright lawsuit (while the copyright holder left up tons of other versions of the song).  Copyright claims were used to <a href="http://www.techdirt.com/articles/20120625/10172319467/miami-heat-owner-sues-blogger-google-over-unflattering-photo.shtml">suppress an unflattering photo</a> that some rich dude didn't like.  A bogus copyright claim was used to take down a <a href="http://www.techdirt.com/articles/20120525/01520819073/fox-issues-dmca-takedown-to-google-over-sf-chronicle-article-claiming-it-was-movie-chronicle.shtml">totally unrelated</a> news article, after Fox thought it was about a movie which it wasn't.
<br /><br />
And that's all just from the past few months.  Anyone who insists that copyright has nothing to do with censorship because it only protects the rights established under the Copyright Act seems to have no credibility on the subject.
<br /><br />
Mossoff then further expands his thesis by claiming that copyright doesn't violate the First Amendment... because there are some limits on the First Amendment.  Of course, that argument makes no sense either.  Yes, there are some limits on the First Amendment.  That doesn't mean that <i>any</i> restriction on speech is okay under the First Amendment.  This is basic logical fallacy territory.  Just because there are some exceptions, doesn't mean that all exceptions make sense or are legal -- but Mossoff honestly seems to be making that argument.
<br /><br />
If you actually want intelligent and <i>nuanced</i> views on the conflict of the First Amendment and copyright law, rather than the ridiculous claims from Mossoff, I recommend Neil Netanel's <a href="http://books.google.com/books/about/Copyright_s_Paradox.html?id=vo9G-0iZNQIC" target="_blank"><i>Copyright's Paradox</i></a> or David Lange and Jefferson Powell's <a href="http://books.google.com/books?id=4PAv2Vxkk_AC&#038;printsec=frontcover&#038;dq=editions:7kK6mIgJO6IC&#038;source=bl&#038;ots=Fm7h2isVlj&#038;sig=MaGrRvyCxsnPqMqWGeeZXfSkh74&#038;hl=en&#038;sa=X&#038;ei=Ic1WUL79HeKdiALztoFI&#038;ved=0CCwQ6AEwAA#v=onepage&#038;q&#038;f=false" target="_blank"><i>No Law</i></a>.  Both books involve careful and detailed analyses of how and where copyright law and the First Amendment come into conflict.
<br /><br />
Mossoff just brushes all that off, saying that since both copyright and the First Amendment are in the Constitution, there's no conflict:
<blockquote><i>
In fact, both copyright and the right to free speech are based in the Constitution &#8212; in the copyright and patent clause in Article I, Section 8, and in the First Amendment.
<br /><br />
Strangely, people are now claiming that one part of the Constitution is an unconstitutional violation of another part of the Constitution.
</i></blockquote>
Of course, that's neither accurate nor "strange."  First off, free speech is a right in the Constitution.  Copyright <b>is not</b>.  It troubles me that a "law professor" would make such an obviously false claim.  The Constitution's Article I, Section 8 <i>only</i> grants Congress the right to create a copyright law -- explicitly for the purpose of "promoting the progress of science" (the "useful arts" stuff was about patents).  To suggest that the Constitution establishes copyright as a right is simply false.
<br /><br />
Second, there is nothing "strange" at all about the concerns people have raised about copyright law.  Even if we assume that Mossoff's initial suggestion that both come from the Constitution is accurate, what he ignores is <i>just how massively copyright law has changed</i> since it was first created.  In 1976, the US completely overhauled its copyright system, making it so pretty much anything new put in a "fixed" form was automatically granted copyright for life plus 50 years (later expanded to 70 years, thanks to Disney and Sonny Bono).  To pretend that copyright law we have today couldn't possibly conflict with the First Amendment because we also had copyright law in 1790 is ignoring that copyright law today looks nothing like copyright law in 1790.
<br /><br />
Mossoff, ridiculously, acts as if they're basically the same thing.
<br /><br />
It really makes you wonder how anyone can take these claims seriously when they're so uninformed.  Mossoff is apparently appearing this week at UT Austin for a discussion on free speech and intellectual property.  Thankfully, one of the other people appearing at the same event is Neil Netanel, the author of <i>Copyright's Paradox</i>, mentioned above.  Mossoff would do well to actually pay attention to what Netanel has to say.
<br /><br />
Let's make this simple: is copyright automatically censorship?  No.  But can it be used for censorship?  Absolutely.  I don't see how anyone who is even remotely intellectually honest can deny that.  Copyright maximalists are free to suggest that the censorship "costs" are minimal or can be minimized.  Or they can argue that this is collateral damage that is "worth it" for the supposed benefits provided by copyright law.  But to argue that copyright law is entirely unrelated to free speech violations is simply not a supportable position.  Yet it's the one Mossoff makes.  And for that reason, he has no credibility on the subject.<br /><br /><a href="http://www.techdirt.com/articles/20120917/00222620398/anyone-who-says-copyright-cannot-be-used-censorship-has-no-credibility.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120917/00222620398/anyone-who-says-copyright-cannot-be-used-censorship-has-no-credibility.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120917/00222620398/anyone-who-says-copyright-cannot-be-used-censorship-has-no-credibility.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>sorry-adam</slash:department>
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<pubDate>Tue, 26 Jun 2012 14:07:00 PDT</pubDate>
<title>Speak Out Against Copyright Holders Destroying True Property Rights</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120622/14185719439/speak-out-against-copyright-holders-destroying-true-property-rights.shtml</link>
<guid>http://www.techdirt.com/articles/20120622/14185719439/speak-out-against-copyright-holders-destroying-true-property-rights.shtml</guid>
<description><![CDATA[ For a while now, we've been following a series of very scary court cases that could <a href="http://www.techdirt.com/articles/20120608/18350819256/why-supreme-court-needs-to-make-sure-that-selling-used-ipad-isnt-copyright-violation.shtml">take away</a> your ability to sell physical products you own, by using a bizarre interpretation of copyright law by the courts.  You can click back on that link to read some of the background, but the short version is that courts are suggesting that if a physical product is manufactured outside the US, but anywhere on it includes something covered by copyright (an etching, content, software, etc.) then the entire product cannot be sold without permission from the copyright holder.  The reasoning makes so little sense as to be unbelievable.  Basically, it says that those products weren't made under US copyright law -- so they don't get "first sale" rights -- but they are still covered by copyright law, so selling them is copyright infringement. 
<br /><br />
 This is nonsensical for any number of reasons.  Unfortunately, the Supreme Court is about to hear the <a href="http://www.techdirt.com/articles/20120416/16434518517/supreme-court-to-review-if-its-legal-to-resell-book-you-bought-abroad.shtml">latest</a> such case, after ending up with a <a href="http://www.techdirt.com/articles/20101213/09353512255/supreme-court-ruling-you-may-not-be-able-to-legally-sell-product-first-made-outside-us.shtml">split court</a> the last time around.  The reason it was split was because Justice Kagan recused herself, due to being involved in the case prior to becoming a Justice.  Her involvement?  Penning the filing of the US government <i>against</i> first sale rights.  So it's very possible that she'll continue to retain that viewpoint on the court and basically kill off your ability to resell any good manufactured outside the US without permission.  This is scary stuff.
<br /><br />
While the issue is before the court, it's still important to get people to speak out about this.  A few public interest groups have put together a petition site called <a href="http://www.youvebeenowned.org/" target="_blank">You've Been Owned: Don't Let Copyright Trolls Steal Our Property Rights!</a> and <a href="http://ownershiprights.org/" target="_blank">Citizens for Ownership Rights</a>.  The goal is to get the Obama administration to actually recommend preserving first sale rights (contrary to its earlier position).  And, failing that, get Congress to change the laws to fix this problem which will drive many American manufacturers to move overseas.  This is, of course, part of the real problem: the language of the statute is awkward in a way that lets the court come to a completely nonsensical and contradictory result.
<br /><br />
What's important to recognize is that, for all the talk by copyright maximalists to falsely claim that copyright is no different than real property, and to insist we must "defend property rights" for copyright, here's a true case of property rights being under attack -- and it's because of an overly aggressive use of copyright.  The idea that you don't actually own what you bought is an anathema to true property rights.  That companies may be able to use copyright law to block you from selling used goods is a massive encroachment on individuals' property rights.  If all those copyright maximalists truly believed in property rights (rather than the truth: that they support a government granted monopoly privilege that benefits themselves) they, too, would support this effort against the demolition of first sale rights.<br /><br /><a href="http://www.techdirt.com/articles/20120622/14185719439/speak-out-against-copyright-holders-destroying-true-property-rights.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120622/14185719439/speak-out-against-copyright-holders-destroying-true-property-rights.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120622/14185719439/speak-out-against-copyright-holders-destroying-true-property-rights.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>can-you-resell-your-stuff?</slash:department>
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<pubDate>Thu, 12 Apr 2012 12:29:00 PDT</pubDate>
<title>Court Says That Copying Code Is Not Really Theft Under The Law</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120412/10210918473/court-says-that-copying-code-is-not-really-theft-under-law.shtml</link>
<guid>http://www.techdirt.com/articles/20120412/10210918473/court-says-that-copying-code-is-not-really-theft-under-law.shtml</guid>
<description><![CDATA[ We've been pointing out for a while that copyright <a href="http://www.techdirt.com/articles/20120314/02471518099/thinking-copyright-as-property-is-as-natural-as-thinking-smells-as-property.shtml">is not property</a> and that <a href="http://www.techdirt.com/articles/20120329/02304318285/nytimes-oped-explains-why-infringement-isnt-theft.shtml">infringement is not theft</a>.  And yet... some people can't seem to let this go -- insisting that both claims are true.  Of course, one retort from our side of the discussion is the simple fact that you don't see people who copy content being charged with "theft."  However, in a case that received plenty of publicity involving a Goldman Sachs employee who had <a href="http://www.techdirt.com/articles/20090724/0342385646.shtml">copied some code</a> from the company, he was actually charged with theft.  In response, however, a 2nd Circuit appeals court panel has said he was <a href="http://www.wired.com/threatlevel/2012/04/code-not-physical-property/?utm_source=twitter&#038;utm_medium=socialmedia&#038;utm_campaign=twitterclickthru" target="_blank">wrongfully charged, because code is not property</a>.  The court specifically cites the Dowling case, which we've discussed on <a href="http://www.techdirt.com/articles/20100913/22513210998.shtml">many occasions</a>, which makes clear that infringement is a different beast than theft.
<blockquote><i>
The infringement of copyright in Dowling parallels Aleynikov&#8217;s theft of computer code. Although &#8220;[t]he infringer invades a statutorily defined province guaranteed to the copyright holder alone[,] . . . he does not assume physical control over the copyright; nor does he wholly deprive its owner of its use.&#8221; Id. at 217. Because Aleynikov did not &#8220;assume physical control&#8221; over anything when he took the source code, and because he did not thereby &#8220;deprive [Goldman] of its use,&#8221; Aleynikov did not violate the NSPA.
</i></blockquote>
Of course, it's somewhat unfortunate that in a ruling in which the court finds that Aleynikov has been improperly charged with "theft" under the law... they still repeatedly refer to his actions as "theft."   It's too bad they did not properly note that he copied the code, but still repeatedly claim he "stole" it, as they describe his actions in passing -- but when they discuss the actual legal aspect, they admit that there was no theft.
<br /><br />
Separately, the court rejected the charges brought under the Economic Espionage Act, noting that the law he was charged under is limited to trade secrets concerning <i>products used in commerce</i>, and since the code in question was for internal use anyway, it did not qualify under the law.
<br /><br />
To some extent (and then further in a concurring opinion written by one of the judges on the panel), the court seems to suggest that it doesn't necessarily like these results (this is less clear in the official opinion, but it appears to be what the panel is implying at times), but that the problem is how Congress wrote these particular statutes.  It may be true that the laws are drafted poorly, but it's important that copying code is not seen as theft, because it <i>is not theft</i>.  Still, the overall ruling here is good, though it could have been more complete.<br /><br /><a href="http://www.techdirt.com/articles/20120412/10210918473/court-says-that-copying-code-is-not-really-theft-under-law.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120412/10210918473/court-says-that-copying-code-is-not-really-theft-under-law.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120412/10210918473/court-says-that-copying-code-is-not-really-theft-under-law.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>deprived-of-use</slash:department>
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<pubDate>Wed, 14 Mar 2012 09:39:13 PDT</pubDate>
<title>Thinking Of Copyright As Property Is As Natural As Thinking Of Smells As Property</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120314/02471518099/thinking-copyright-as-property-is-as-natural-as-thinking-smells-as-property.shtml</link>
<guid>http://www.techdirt.com/articles/20120314/02471518099/thinking-copyright-as-property-is-as-natural-as-thinking-smells-as-property.shtml</guid>
<description><![CDATA[ For many <a href="http://www.techdirt.com/articles/20070521/015928.shtml">years</a> we've explained why <a href="http://www.techdirt.com/articles/20080219/014250290.shtml">copyright isn't property</a>.  This debate flares up on a regular basis in various circles, and even here on the blog we just had the discussion all over again on my post about why <a href="http://www.techdirt.com/articles/20120309/18103118061/guess-what-copying-still-isnt-stealing.shtml">copying isn't stealing</a>.  The comment thread on that post is already quite epic, with much of it getting into a semantic debate.  And, while there is definitely a fair amount of circular talk, there are a number of really interesting and insightful points made in that (very long) discussion that are worth checking out.  In the end, though, part of it is just a semantic debate.  My point is merely that "property" has certain facets and "stealing" implies certain facets -- and when you're talking about copyright infringement, it matches <i>some but not all</i> of the key qualifications of property and theft.  Pretending that the parts that match are sufficient simply means that you ignore the rather important parts that don't match.
<br /><br />
But perhaps getting bogged down in semantics (even if they are important) is the wrong approach to getting past this debate.
<br /><br />
As we were discussing those issues, Paul Graham published one of his typically thought-provoking essays in which he discusses how the <a href="http://paulgraham.com/property.html" target="_blank">definition of property is changing</a>, such that copyright is no longer property.  Whether or not you agree with the way he frames things, he does provide a a great parable that makes a strong point:
<blockquote><i>
As a child I read a book of stories about a famous judge in eighteenth century Japan called Ooka Tadasuke. One of the cases he decided was brought by the owner of a food shop. A poor student who could afford only rice was eating his rice while enjoying the delicious cooking smells coming from the food shop. The owner wanted the student to pay for the smells he was enjoying. The student was stealing his smells!
<br /><br />
This story often comes to mind when I hear the RIAA and MPAA accusing people of stealing music and movies.
<br /><br />
It sounds ridiculous to us to treat smells as property. But I can imagine scenarios in which one could charge for smells. Imagine we were living on a moon base where we had to buy air by the liter. I could imagine air suppliers adding scents at an extra charge.
</i></blockquote>
Here's the point.  Even if you believe to your core that copyright is absolutely property in every sense of the word, and that copyright infringement is -- without question -- the absolute equivalent of stealing, to the "net native" generation, thinking of copyright in that manner <i>is as unnatural as thinking about a smell as property</i>.  That's the key point in all of this.  Argue semantics all you want.  It's not going to matter to the generation of folks who grew up on the internet.  No amount of "education" or semantic debate is going to convince them that copyright is property, just as no amount of education or debate is going to convince you that smells are property.
<br /><br />
Given that, you have two simple choices:
<ol>
<li>Continue to argue that copyright is property.
</li><li>Get on with your life and figure out how to thrive in a world where copyright isn't considered property.
</li></ol>
Which one do you think is going to be more effective?  Yeah, that's the point.<br /><br /><a href="http://www.techdirt.com/articles/20120314/02471518099/thinking-copyright-as-property-is-as-natural-as-thinking-smells-as-property.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120314/02471518099/thinking-copyright-as-property-is-as-natural-as-thinking-smells-as-property.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120314/02471518099/thinking-copyright-as-property-is-as-natural-as-thinking-smells-as-property.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>it-ain't-property</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120314/02471518099</wfw:commentRss>
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<item>
<pubDate>Fri, 17 Feb 2012 09:00:35 PST</pubDate>
<title>When We Copy, We Justify It; When Others Copy, We Vilify Them</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120217/01492417790/when-we-copy-we-justify-it-when-others-copy-we-vilify-them.shtml</link>
<guid>http://www.techdirt.com/articles/20120217/01492417790/when-we-copy-we-justify-it-when-others-copy-we-vilify-them.shtml</guid>
<description><![CDATA[ We've written <a href="http://www.techdirt.com/search.php?cx=partner-pub-4050006937094082%3Acx0qff-dnm1&cof=FORID%3A9&ie=ISO-8859-1&q=everything+is+a+remix&eid=&tid=&aid=&searchin=stories">multiple times</a> about Kirby Ferguson's excellent <a href="http://www.everythingisaremix.info/" target="_blank">Everything is a Remix</a> project that has produced three videos highlighting the problems and history of intellectual property and how copying  and derivative works are a core element of culture and invention.  He's now <a href="http://www.everythingisaremix.info/everything-is-a-remix-part-4/" target="_blank">released the fourth and final installment</a> in the series, and it's a great summary look at the general problems with intellectual property law today.
<center>
<iframe src="http://player.vimeo.com/video/36881035?title=0&amp;byline=0&amp;portrait=0" width="400" height="225" frameborder="0" webkitAllowFullScreen mozallowfullscreen allowFullScreen></iframe>
</center>
The key theme is that the <i>theory</i> (treating ideas, inventions, content, etc. as a form of "property" -- in the minds of many copyright and patent system supporters) simply doesn't match up with <i>reality</i> (where almost everything is a derivative work of some sort).  What the video does nicely is highlight the hypocrisy of it all.  As he notes brilliantly, when <i>we</i> copy (and everyone does copy), we justify it.  When others copy, however, suddenly we attack them and vilify them.  A perfect recent example of this, by the way, was former NYT executive editor Bill Keller's bizarre <a href="http://keller.blogs.nytimes.com/2012/02/10/piracy-twits/" target="_blank">defense</a> of the NYT copying and posting a work covered by someone else's copyright, just days after his own column came out in support of <a href="http://www.nytimes.com/2012/02/06/opinion/steal-this-column.html?_r=1&partner=rssnyt&emc=rss" target="_blank">greater legal enforcement</a> of copyrights.
<br /><br />
As he notes, this is psychologically understandable.  It's all about "loss aversion."  People feel a sense that they "own" something which they really do not -- and that's often boosted by the concepts of intellectual property that really spread the idea that you can, in fact, own an idea (and, yes, technically neither copyright nor patents apply directly to "ideas," but that's a nuance that most people fail to grasp when they see how content and inventions are considered "owned" under the laws of today).
<br /><br />
The video then talks about the <a href="http://www.techdirt.com/articles/20120215/04241517766/how-much-is-enough-weve-passed-15-anti-piracy-laws-last-30-years.shtml">continued expansion</a> of copyright laws, and the more nefarious effort to continue to ratchet things up through trade agreements like <a href="http://www.techdirt.com/search.php?cx=partner-pub-4050006937094082%3Acx0qff-dnm1&cof=FORID%3A9&ie=ISO-8859-1&q=acta+">ACTA</a> and <a href="http://www.techdirt.com/search.php?cx=partner-pub-4050006937094082%3Acx0qff-dnm1&cof=FORID%3A9&ie=ISO-8859-1&q=tpp&eid=&tid=&aid=&searchin=stories">TPP</a>.  But he also points out that this is somewhat ironic, since in its early years, the US refused to sign similar trade agreements, and was a "pirate nation" that ignored copyrights from around the globe.
<br /><br />
The video doesn't just cover copyrights, but digs into patents as well -- with specific attention paid to broad software patents that do little to contribute any knowledge to the world, but instead take broad concepts and seek to lock them up for the purpose of suing and trying to extract settlements from those actually creating and innovating.
<br /><br />
From there he breaks out the original purpose of both copyrights and patents under the US system.  In both cases, they were about benefiting the public: to encourage learning or to promote the progress of "useful" arts (inventions).  But when the laws fail to do that, then we should see the system as broken and seek to remedy it.
<br /><br />
All in all, Ferguson's series is a great introduction to many of the issues we cover around here.  I don't fully agree with everything in all of the videos -- and the latest one has a slight undertone suggesting that capitalism and markets in and of themselves are bad (which I think is conflating a few different issues).  But overall the videos are fantastic -- and in terms of production quality, it seems like each one in the series is better than the previous one.  He keeps maturing as a video maker, which is cool to see.  Ferguson is now moving on to a new project, called <a href="http://www.kickstarter.com/projects/kirby/this-is-not-a-conspiracy-theory" target="_blank"><i>This is Not a Conspiracy Theory</i></a>, for which he's raising funds on Kickstarter, so check it out.<br /><br /><a href="http://www.techdirt.com/articles/20120217/01492417790/when-we-copy-we-justify-it-when-others-copy-we-vilify-them.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120217/01492417790/when-we-copy-we-justify-it-when-others-copy-we-vilify-them.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120217/01492417790/when-we-copy-we-justify-it-when-others-copy-we-vilify-them.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>everything-is-a-remix</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120217/01492417790</wfw:commentRss>
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<pubDate>Wed, 13 Apr 2011 13:04:16 PDT</pubDate>
<title>Joe Biden: There's No Reason To Treat Intellectual Property Any Different Than Tangible Property</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110413/12094013882/joe-biden-theres-no-reason-to-treat-intellectual-property-any-different-than-tangible-property.shtml</link>
<guid>http://www.techdirt.com/articles/20110413/12094013882/joe-biden-theres-no-reason-to-treat-intellectual-property-any-different-than-tangible-property.shtml</guid>
<description><![CDATA[ Ah, Joe Biden.  Is there nothing about intellectual property that he can't get wrong?  Variety has an <a href="http://www.variety.com/article/VR1118035369?categoryid=13&#038;cs=1&#038;cmpid=RSS|News|LatestNews" target="_blank">interview with the Vice President on intellectual property issues</a>, and while there's nothing new, it's like a compendium of wrong or misleading statements.  It's no wonder the entertainment industry so loves him.  There's no lie or misrepresentation he won't repeat.  It starts out with a doozy.  Nearly every thing he says in the following paragraph is wrong or a misrepresentation:
<blockquote><i>
"Look, piracy is outright theft," Biden said. "People are out there blatantly stealing from Americans -- stealing their ideas and robbing us of America's creative energies. There's no reason why we should treat intellectual property any different than tangible property."
</i></blockquote>
First, "piracy" is not "outright theft."  Infringement and theft are two different things.  You would think that someone in Biden's position would know the basics.  Second, "ideas" are not protectable under US intellectual property law.  Expression can be copyrighted and inventions can be patented.  Ideas cannot be.  That Biden thinks they can be... is immensely troubling.  Third, how do you "rob" one of energy?  I'm beginning to think that Biden doesn't know what the word "steal" means.  Fourth, if this was "robbing us of America's creative energies," wouldn't we be seeing significantly less output and significantly less revenue?  Instead, we're seeing both <a href="http://www.techdirt.com/articles/20100621/0933449895.shtml">greater output</a> and greater revenue.  True, a few legacy <i>companies</i> within the wider industry are struggling to adapt, but that's not the same thing.  Fifth, there are tons of reasons why copyrights and patents should and <i>are</i> treated differently than tangible property.  Is Biden really suggesting that we should have infinite copyright and patents that do not expire and do not go into the public domain?  Because that appears to be what he's saying, and that's blatantly unconstitutional.   The Constitution says "for limited times" for a reason.  Does Biden not know this?
<blockquote><i>
He is quick to say that he considers it more than a problem of just the entertainment industry. "When our military is sold counterfeit equipment that is faulty, it affects our national security. And when cancer patients are sold fake cancer drugs that contain no medicine, it affects public health. These are serious issues for the American people."
</i></blockquote>
Biden may be even worse than <a href="http://www.techdirt.com/articles/20110406/12533513804/parade-strawmen-dominate-house-hearing-about-online-infringement.shtml">John Morton</a> at this conflation game.  Yes, we agree that counterfeit military equipment and fake drugs are dangerous.  No one denies that.  The <i><b>problem</b></i>, which everyone keeps pointing out and which neither Biden nor Morton seem to want to respond to, is that they're using those <i>small</i> and <i>specific</i> problems to then justify massive legal changes that have <i>nothing</i> to do with those legitimate problems.
<blockquote><i>
"Virtually every American company that manufactures something is getting killed by counterfeiters: clothing, software, jewelry, tires," Biden said. "If an American company has been successful at developing an idea, it's likely getting stolen."
</i></blockquote>
Getting killed?  Really?  Hyperbole much, Joe?  First of all, counterfeiting is a separate issue than copyright or patents, and isn't <i>really</i> an "intellectual property" issue, but a fraud issue.  Anyway, when you look at the <a href="http://www.techdirt.com/articles/20100801/17431810439.shtml">actual statistics</a> (not the made up ones by the industry) you learn that counterfeiting really isn't nearly as big a problem as people make it out to be, and it's certainly not "killing" most American businesses.  Yes, it is impacting a few businesses at the margin, but multiple studies have shown that people who buy counterfeits are not taking business away from the original company, but are doing it <a href="http://www.techdirt.com/articles/20091202/1503337167.shtml">aspirationally</a>, with the intention of buying the real product when they can.
<br /><br />
Besides, if we're really saying that copying ideas and passing them off as your own is "theft" and should be punished the same as "theft" of tangible goods, shouldn't Joe Biden be in jail?  After all, he's a notorious <a href="http://www.slate.com/id/2198597/" target="_blank">plagiarist</a>, who didn't just copy the words of another politician, but copied <i>his life story</i>, claiming things that happened to this other politician happened to him, when they had not.  So, if anyone knows "stealing ideas" and "counterfeits," it should be Biden. 
<br /><br />
Biden then moves on to what he believes is part of the solution:
<blockquote><i>
"I think the entertainment industry would agree that they have done a poor job in making their case and need to do better," Biden said. "I mean, they have some of the brightest and most creative people working for them."
<br /><br />
"They should be able to come up with an intelligent, original and effective public education campaign targeting this issue. To be honest, I am not certain they have dedicated the appropriate resources to this, and I hope they will."
</i></blockquote>
Or, perhaps, it's just that multiple studies have shown that this is <i>not an education issue</i>, and the more propaganda that the industry puts out, the less people respect copyright laws.  I mean, we're talking about Hollywood.  Does anyone really believe that they don't have the ability to create compelling content?  The problem is not the content, it's the underlying idea which people just aren't buying.  You can create propaganda all you want.  You just can't make people believe it if they know, deeply, that it's false.
<blockquote><i>
"Kids are taught that it is not right to steal a lollipop from the corner store," he said. "They also need to understand that it is equally wrong to knowingly steal a movie or a song from the Internet."
</i></blockquote>
Yeah, the industry has been making that a part of the "education campaign" for decades.  How's that been going?  The problem is that children aren't stupid.  And they can recognize that there's a pretty big difference in stealing a lollipop from the corner store (in which case the store no longer has a lollipop to sell) and in sharing a song or a movie with a friend, in which everyone gets greater enjoyment.
<blockquote><i>
Biden doesn't buy the idea that Hollywood's effort to increase enforcement is merely to protect dying businesses.
<br /><br />
"The fact is, media companies have already taken significant steps to adapt their business models to keep up with changes in how we watch movies and listen to music," Biden said. "Content is being offered to consumers in a variety of different ways that make it easy and cost-effective for people to access legal material. Anyone who does not understand this should simply talk with one of my grandkids."
</i></blockquote>
Oh come on!  The media companies' "significant steps" all came kicking and screaming, often with lawsuits and attempts to use pliant politicians like Biden to pass laws to outlaw the innovations they eventually come to rely on.  This is the same industry that tried to outlaw the VCR and the MP3 player.  Significant steps?  Yeah, only after being pushed by innovators and consumers.  In fact, many of those significant steps were taken <a href="http://www.techdirt.com/articles/20080109/013441.shtml">because</a> of infringement, which showed what consumers really wanted.  
<blockquote><i>
Biden said he sees a shift in China, where piracy is rampant and where Hollywood has long struggled to gain cooperation from the government to address the problem. He said South Korea's strengthened intellectual property laws have led to the "Korean Wave" in entertainment across Asia, and "China's leaders understand this." 
</i></blockquote>
And here, Biden is simply lying.  The Korean Wave of entertainment across Asia started way before the US (at the entertainment industry's behest) pressured Korea into implementing <a href="http://www.techdirt.com/articles/20090724/0159355642.shtml">draconian new copyright laws</a> in 2009.  Creative labels like JYP had sprung up years earlier, and the company's founder, JY Park, has stated in interviews that it was, in part, the widespread infringement online that drove him to push his artists into alternative business models that took them across Asia, where they make a ton of money.  The idea that it was these laws is simply a lie, and is clear from the timing.  Korean artists like Rain and Wonder Girls were known across Asia long before those changes were made.  In fact, even the term <a href="http://en.wikipedia.org/wiki/Korean_wave" target="_blank">"Korean Wave"</a> which Biden refers to, was given to Korean cultural exports in <i>1999</i>, a full ten years before Korea put in place new copyright laws.   And, during those intervening 10 years, South Korea had <i>the</i> highest rate of broadband penetration, and some of the highest rates of copyright infringement online as well.  And yet, the Korean Wave still happened.
<br /><br />
Shouldn't the "reporters" at Variety point some of this stuff out in response?  Or do they just parrot the Hollywood line and ignore facts?  Either way, why is Biden allowed to blatantly lie or misrepresent all of these things?<br /><br /><a href="http://www.techdirt.com/articles/20110413/12094013882/joe-biden-theres-no-reason-to-treat-intellectual-property-any-different-than-tangible-property.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110413/12094013882/joe-biden-theres-no-reason-to-treat-intellectual-property-any-different-than-tangible-property.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110413/12094013882/joe-biden-theres-no-reason-to-treat-intellectual-property-any-different-than-tangible-property.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>really-now?</slash:department>
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<pubDate>Fri, 11 Mar 2011 07:29:11 PST</pubDate>
<title>If Copyright Is 'Property' Why Aren't People Outraged When The Gov't Seizes Content From The Public?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110308/03044013397/if-copyright-is-property-why-arent-people-outraged-when-govt-seizes-content-public.shtml</link>
<guid>http://www.techdirt.com/articles/20110308/03044013397/if-copyright-is-property-why-arent-people-outraged-when-govt-seizes-content-public.shtml</guid>
<description><![CDATA[ <a href="https://twitter.com/#!/CopyrightLaw/statuses/44883728731869185" target="_blank">Michael Scott</a> points us to an interesting analysis of a recent academic paper exploring (yet again) the issue of whether or not <a href="http://ip.jotwell.com/the-public-domain-through-propertys-lens/?utm_source=feedburner&#038;utm_medium=feed&#038;utm_campaign=Feed: Jotwell (Jotwell)&#038;utm_content=Google Reader" target="_blank">patents and copyright should be viewed as property</a>.  I won't go into the specific arguments of the paper itself (take a look to read about it, if you'd like), but one key point did strike me as quite interesting:
<blockquote><i>
Professor Fagundes argues that property rhetoric currently is understood through the lens of "ownership" discourse, which understands "property" to mean private rights that are good against the world.  Exhibit A for this thesis is the very different public reactions to the Supreme Court's rulings in Kelo and Eldred. In each case, the Court held that the constitution did not protect members of the public from elected officials transferring their rights to another private party.  Certain groups were outraged by the Kelo result because, in their view, the Court had fundamentally disregarded specific private owner's property rights.  By contrast, the Act at issue in Eldred "took not just from the original plaintiff Eric Eldred, but from every member of the public the entitlement to use expired copyrighted materials for another twenty years."  (P. 655.)  This transfer, however, was greeted with a public yawn because it was not seen as a transfer of public property into private hands.
</i></blockquote>
If you're not familiar with the two cases (and you should be), <a href="http://en.wikipedia.org/wiki/Kelo_v._City_of_New_London" target="_blank">Kelo</a> was the Supreme Court case that ruled it was okay for eminent domain to be used by the government to take land away from a landowner and hand it to a private developer.  This got a lot of people quite upset about the government overstepping its bounds.  <a href="http://en.wikipedia.org/wiki/Eldred_v._Ashcroft" target="_blank">Eldred</a>, of course, argued effectively the same thing, in claiming that copyright extension transferred "property" from the public to private interests by blocking it from entering the public domain.  While it's worth noting that the Supreme Court seems somewhat consistent on the rulings, it certainly is notable that the folks who got upset by Kelo didn't get as upset by Eldred (yes, some of us were quite upset by Eldred, but it didn't get nearly the same widespread reaction).
<br /><br />
It could be that, in general, most people simply don't, implicitly, view copyright as property.  Or, it could be that many people don't quite understand copyright issues.  I think a bigger issue might just be that most people simply don't understand the importance and value of the public domain.  So, without realizing what they're losing, they don't recognize that works failing to move into the public domain is a bad thing.<br /><br /><a href="http://www.techdirt.com/articles/20110308/03044013397/if-copyright-is-property-why-arent-people-outraged-when-govt-seizes-content-public.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110308/03044013397/if-copyright-is-property-why-arent-people-outraged-when-govt-seizes-content-public.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110308/03044013397/if-copyright-is-property-why-arent-people-outraged-when-govt-seizes-content-public.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>property?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110308/03044013397</wfw:commentRss>
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<pubDate>Fri, 10 Dec 2010 19:39:00 PST</pubDate>
<title>Should Superhero Superpowers Be Considered Property?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101209/09505912211/should-superhero-superpowers-be-considered-property.shtml</link>
<guid>http://www.techdirt.com/articles/20101209/09505912211/should-superhero-superpowers-be-considered-property.shtml</guid>
<description><![CDATA[ We've had many, many debates around here over the question of whether or not "intellectual property" is <a href="http://www.techdirt.com/articles/20101014/02384511424/would-copyright-work-better-if-it-was-treated-more-like-property.shtml">actually property</a>. So it seems like many of you might enjoy this article, sent in by <a href="http://www.techdirt.com/profile.php?u=johnjac">johnjac</a>, where some attorneys with <i>way too much</i> free time on their hands <a href="http://lawandthemultiverse.com/2010/12/06/superpowers-as-personal-property/" target="_blank">discuss whether or not superpowers possessed by super heroes should be considered property or not</a>.  I will give you just this short snippet as a taste, which I assume will make you rush over to read the whole thing:
<blockquote><i>
If Superman uses the power of a blue sun to bestow superpowers on another person, is that a taxable asset transfer?&nbsp; Who would want to try to collect?
<br /><br />
If two superheroes marry, share a power, then later divorce, could one be forced to give up the power during the division of assets?&nbsp; Does it matter who had the power originally?&nbsp; Even though the shared power may be a <a href="http://en.wikipedia.org/wiki/Rivalry_%28economics%29">non-rival good</a>, one of the two superheroes may still have a claim to exclusivity.&nbsp; Perhaps the power is a trademark ability of one character, or maybe they signed a superhero pre-nuptial agreement that determined the disposition of any shared abilities.
<br /><br />
If one superhero lends a power to another (or to a normal person), does that superhero have an implied right to its return?&nbsp; In other words, is a <a href="http://en.wikipedia.org/wiki/Bailment">bailment </a>created?&nbsp; I think the answer here is yes.
</i></blockquote>
Enjoy.<br /><br /><a href="http://www.techdirt.com/articles/20101209/09505912211/should-superhero-superpowers-be-considered-property.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101209/09505912211/should-superhero-superpowers-be-considered-property.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101209/09505912211/should-superhero-superpowers-be-considered-property.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>the-debate-is-on</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101209/09505912211</wfw:commentRss>
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<item>
<pubDate>Tue, 23 Nov 2010 05:22:46 PST</pubDate>
<title>Just Calling Something Property, Doesn't Make It Property</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101122/01504611959/just-calling-something-property-doesnt-make-it-property.shtml</link>
<guid>http://www.techdirt.com/articles/20101122/01504611959/just-calling-something-property-doesnt-make-it-property.shtml</guid>
<description><![CDATA[ For years, we've pointed out how rather insidious it is to refer to copyright and patents as "property," as it leads to those who support traditional property rights to default to supporting these government-granted monopoly privileges as if they were property.  Stewart Baker, over at the Volokh Conspiracy, does a nice job <a href="http://volokh.com/2010/11/20/girl-talk-and-intellectual-property/" target="_blank">suggesting that some folks' brains seem to shut off once they see something called "property,"</a> even when it has little that makes it "property."  He's specifically addressing conservatives and libertarians, but on this debate, I think the traditional labels don't really apply.  I've seen liberal/progressives argue on exactly the same lines.  For better or for worse, copyright/patent debates don't seem to fall along traditional political lines.  Considering that most of the American political spectrum (despite what you might hear...) does believe in basic property rights, calling copyright "property" gets lots of people to agree that it must be important to support, without having them think through the details:
<blockquote><i>
    Viewed up close,   copyright bears little resemblance to the kinds of property that   conservatives value. Instead, it looks like a constantly expanding   government program run for the benefit of a noisy, well-organized interest   group -- like Superfund, say, or dairy subsidies, except that the benefits go   not to endangered homeowners or hardworking farmers but to the likes of   Barbra Streisand and Eminem.
<br /><br />
    It looks like Superfund in other ways, too. Copyright is a trial lawyer's dream -- a regulatory program enforced by private lawsuits where the plaintiffs have all the advantages, from injury-free damages awards to liability doctrines that extract damages from anyone who was in the neighborhood when an infringement occurred. ... It's asbestos litigation for the Internet age.
<br /><br />
Conservatives -- and especially libertarians -- seem like a cheap date on this issue.   You'd think libertarians would have been in the forefront of objecting to governmental intrusions into our lives at the behest of a special interest -- let alone the creation of a new class of quasicriminals, defined as more or less everyone who entered high school after 1996, who can be investigated and prosecuted whenever the government or some member of industry decides that they are too troublesome.
</i></blockquote>
Where it gets fun is that Baker points out that you could pull the same trick elsewhere, by calling other non-property things property.  For example, he tries to explain how property rights supporters could be taught to like the TSA's security procedures if we just noticed the "property rights" inherent in the discussion:
<blockquote><i>
Come to think of it, maybe I can persuade readers here that TSA's new enhanced security measures are just fine -- as long as we enforce the rules by giving all the passengers on the plane a "property" right not to travel with people who refuse body imaging and enhanced patdowns.  Instead of relying on oppressive government regulation, we&rsquo;d just let the passengers collect millions in "statutory damages" from noncompliant travelers.
</i></blockquote>
And that's kind of the point. You can create all kinds of fake "property rights," if you want to distract from what's actually going on.  But it doesn't make the underlying issue property.<br /><br /><a href="http://www.techdirt.com/articles/20101122/01504611959/just-calling-something-property-doesnt-make-it-property.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101122/01504611959/just-calling-something-property-doesnt-make-it-property.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101122/01504611959/just-calling-something-property-doesnt-make-it-property.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>good-points</slash:department>
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<pubDate>Fri, 15 Oct 2010 17:25:04 PDT</pubDate>
<title>Would Copyright Work Better If It Was Treated More Like Property?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101014/02384511424/would-copyright-work-better-if-it-was-treated-more-like-property.shtml</link>
<guid>http://www.techdirt.com/articles/20101014/02384511424/would-copyright-work-better-if-it-was-treated-more-like-property.shtml</guid>
<description><![CDATA[ Lawyer Terry Hart, who we linked to last month for his discussion about whether or not <a href="http://www.techdirt.com/articles/20100913/22513210998.shtml">it was okay to call infringement theft</a> has now written another piece <a href="http://www.copyhype.com/2010/10/should-copyright-be-treated-like-property/" target="_blank">arguing that those of us who point out that copyright is not property</a> may also be making a mistake.  Specifically, he points to a recent paper by Christopher Newman, which suggests that the problem might be that <a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1688585" target="_blank">we don't treat copyright <i>enough</i> like property</a>, and that if we treated it even more like property, many of the problems with copyright law, specifically in the area of derivative works, would be more efficiently handled.  In many ways, Newman's paper is quite similar to the argument of Bessen and Meurer <a href="http://www.researchoninnovation.org/dopatentswork/" target="_blank">in the patent realm</a>.  Their research details how much the patent system is hindering innovation, and they chalk up the problem to the fact that patents are not enough like property, in that the boundaries are not clearly defined.  Newman appears to take a similar position, with a few more specifics having to do with copyright.
<br /><br />
At a first glance, there is definitely something compelling about this argument (in both the patent and copyright realms).  The lack of clear boundaries in either is, certainly, part of the problem because it allows the copyright and patent holders to try to expand their ability to exclude well beyond what many people feel is reasonable or economically justifiable.  So, the argument goes, if the boundaries could be more properly calibrated, <i>and</i> clearly stated, it would do away with the worst abuses of each system. 
<br /><br />
In the end, though, I find neither argument convincing.  Both are predicated on the idea that property rights, when properly defined with clear boundaries, lead to the more efficient allocation of resources.  This is, of course, the fundamental rationale behind economics and property rights.  The problem?  They leave out an important condition: property rights are about the efficient allocation of resources <i>in the presence of scarcity</i>.  The real reason for property rights was to handle the allocation of <b>scarce</b> resources.  And, in fact, property rights do a pretty efficient job of that.  The problem is that when the resource isn't scarce, allocation is not the problem any more.  Putting property rights on non-scarce items doesn't make it more efficient, it makes it less efficient.  It's telling, then, that Newman's paper makes no mention of either abundance or scarcity.
<br /><br />
That's not to say the analysis provided in both Newman's paper or Bessen and Meurer's book isn't interesting and worth reading, but the fundamental error of not recognizing the different fundamental issues when dealing with scarce goods and abundant goods means that the solutions presented in each seem to be answering the wrong question, set up by a faulty assumption concerning the nature of property rights.
<br /><br />
The reason that we point out that copyright and patents should not be considered property is not because we believe, as Hart implies, that thinking that way only papers over the problems of copyright, but that, fundamentally, copyright and property rights serve exceptionally different purposes.  Could clearer boundaries improve things at the margin?  Perhaps, though I doubt how effective it can really be.  But, focusing on property rights as a "solution" is tackling the wrong problem.  We don't need more efficient allocation of creativity -- it can already be allocated perfectly efficiently, since you can never run out of a particular (digital) work.  So aiming for a better property rights regime, by definition, can only serve to limit that efficient allocation and make it <i>less efficient</i>.<br /><br /><a href="http://www.techdirt.com/articles/20101014/02384511424/would-copyright-work-better-if-it-was-treated-more-like-property.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101014/02384511424/would-copyright-work-better-if-it-was-treated-more-like-property.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101014/02384511424/would-copyright-work-better-if-it-was-treated-more-like-property.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>um,-no</slash:department>
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<pubDate>Wed, 14 Apr 2010 07:37:00 PDT</pubDate>
<title>Is Intellectual Property A Violation Of Real Property?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20091116/1339346953.shtml</link>
<guid>http://www.techdirt.com/articles/20091116/1339346953.shtml</guid>
<description><![CDATA[ While there was a recent argument being made (weakly) that <a href="http://blog.mises.org/archives/011203.asp" target="_blank">all property is intellectual property</a>, reader <a href="http://www.techdirt.com/profile.php?u=kayetech">Kerry Kaye</a> recently pointed out a discussion of the opposite point of view, saying that <a href="http://www.libervis.com/article/intellectual-property-a-violation-of-real-property" target="_blank">intellectual property is actually a <b>violation</b> of the concept of real property</a>.  I have to admit that, while I had hoped to find the article compelling, I actually found it to be lacking in substance.  At points it seems to go around in circles without clearly making a point.  You could, potentially, make a case that intellectual property tries to limit what you can do directly with the output of your own mind, and that is antithetical to the concept that you have the right to make use of the output of your own brain -- which could violated basic property rights, depending on your definition of property rights.  In fact, this is the part that I find most troubling about intellectual property laws (especially patents): that it effectively tells you that even if you come up with something entirely on your own, others can stop you from making use of those ideas.
<br /><br />
Perhaps a much more compelling (though, I'm sure not to strong believers in intellectual property) discussion on a similar topic is a recent piece by Vedad Krehic, (pointed out by <a href="http://twitter.com/CopyrightLaw/statuses/5758846684" target="_blank">Michael Scott</a>) that discusses how <a href="http://www.lewrockwell.com/orig10/krehic1.1.1.html" target="_blank">intellectual property laws turn IP holders against their own customers</a>.  In it, he makes a similar, but much clearer argument like the one above:
<blockquote><i>
If a friend, however, lends me a music CD and if I then make a copy, so that I can listen to the music without having to borrow the disc again in the future, nobody is harmed. It is possible that I could, for example, have made an agreement or contract with him when I borrowed the disc stating that I cannot copy it. If I were to do it anyway, I'd be in violation of a private agreement. If not, who is harmed by my act of duplication? I used my own tangible property (CD drive, computer, and hard drive or blank CD) to fashion a duplicate of the data on the CD. The original CD is still my friend's property. I return it to him, and while he is no better or worse off than he was before, I am now better off. The imprint of the music on my tangible property makes that property marginally worth more to me, as I can enjoy its use to a greater extent than previously.
<br /><br />
Was anyone harmed at any point here?
<br /><br />
Yes -- if you choose to believe the consumer entertainment industry. They claim there was a third party here that was being harmed. Can you see the third party? There was me, and there was my friend. There was my property and that of my friend. I don't see the third party anywhere in that process. I suppose my friend could have been in a contract with the person or organization he purchased the CD from not to copy it, but I wouldn't have been bound by that contract. Either way, I did nothing wrong.
</i></blockquote>
And this is where the trouble comes in for intellectual property versus real property:
<blockquote><i>
Can anyone please explain to me how someone can be a just owner of something, yet not be allowed to exercise his or her ownership rights over it? He can throw rancid tomatoes at the painting, but not duplicate the pattern that makes the painting a painting, rather than just canvas and paint? Or, to use a different type of copyrightable pattern, how can someone own their own brain yet not own the part of it containing a song they memorized?
<br /><br />
The logical conclusion is that the natural right of property and the idea of copyright, and of intellectual property in general, are fundamentally incompatible and conflict sharply. You cannot own something and have someone else dictate to you what you can and cannot do with it, without that being an element voluntarily arrived at through contract. In absence of a contract, the dictating party is initiating aggression against the just owner of an item. Intellectual property is an assault on tangible property.
</i></blockquote>
And that's the problem that we keep pointing out around here that troubles us so much.  There are many -- especially in copyright debates -- who insist that those who don't agree with copyright law should just avoid supporting those who do.  But they ignore how copyright law is used, regularly, to limit what should be fundamental property rights of individuals to do as they please to products they legally purchased.
<br /><br />
In fact, Krehic then takes this further, and notes that much of the entertainment industry's troubles today may be traced back to the fact that it has aggressively tried to use copyright law to stop people from doing what they want with their own property, and it's <i>that</i> mistake (which they keep compounding) that has resulted in customers defecting, rather than any issue of "piracy."  Again, it's easy to predict that intellectual property supporters will scoff at this and dismiss it as ridiculous, but there is growing evidence to support this position.  As we've seen over and over again, content creators who learn to embrace file sharing and the power of new technologies, while connecting with fans, and providing a smarter business model, have been thriving.  It's not piracy that's causing harm, it's bad business model choices, and many of those bad business model choices are driven by an over-reliance on the "crutch" that intellectual property provides, which gives firms the ability to take away property rights from individuals.<br /><br /><a href="http://www.techdirt.com/articles/20091116/1339346953.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20091116/1339346953.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20091116/1339346953.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>thinking-this-through</slash:department>
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<pubDate>Thu, 10 Sep 2009 06:31:21 PDT</pubDate>
<title>Lord Kames Explains Why Copyright Is Not Property... In 1773</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090901/0318106070.shtml</link>
<guid>http://www.techdirt.com/articles/20090901/0318106070.shtml</guid>
<description><![CDATA[ <a href="http://mimuspolyglottos.blogspot.com">Mockingbird</a> writes <i>&quot;I've posted the  full text of <a href="http://mimuspolyglottos.blogspot.com/2009/08/lord-kamess-opinion-in-case-of-hinton-v.html">Lord Kames's opinion</a> in the important Scottish Sessions case of </i>Hinton v. Donaldson<i> from 1773.  This was the case that rejected for Scotland, by a vote of 11-to-1, the theory of "common law copyright", that authors (meaning, in practice, publishers) had a perpetual copyright, at common law, of their writings.  It was followed a few months later by the English House of Lords's decision in <i>Donaldson v. Beckett,</i> in which the English Lords rejected  just as forcefully the claim that authors had perpetual copyright under the common law of England.<br />
<br />
Of the twelve Sessions Lords who decided the case, ten issued opinions.  Lord Kames's is one of the longer ones, and one of the most famous.  Kames builds his case on principles of common law, property law, and commercial law, and finds the claim of "common law copyright" to be inconsistent with the principles of all these areas of law:<blockquote>this claim, far from being founded on property, is inconsistent with it. The privilege an author has by statute, is known to all the world. But I purchase a book not entered in Stationer's hall; does it not become my property? I see a curious machine, the fire engine, for example. I carry it away in my memory, and construct another by it. Is not that machine, the work of my own hand, my property? I buy a curious picture, is there any thing to bar me from giving copies without end? It is a rule in all laws, that the commerce of moveables ought to be free; and yet, according to the pursuer's doctrine, the property of moveables may be subjected to endless limitations and restrictions that hitherto have not been thought of, and would render the commerce of moveables extremely hazardous. At any rate, the author of avery wise or witty saying, uttered even in conversation, has a monopoly of it; and no man is at liberty to repeat it.<br />
<br />
Lastly, I shall consider a perpetual monopoly in a commercial view. The act of Queen Anne is contrived with great judgement, not only for the benefit of authors, but for the benefit of learning in general. It excites men of genius to exert their talents for composition; and it multiplies books both of instruction and amusement. And when, upon expiration of the monopoly, the commerce of these books is laid open to all, their cheapness, from a concurrence of many editors, is singularly beneficial to the public. Attend, on the other hand, to the consequences of a perpetual monopoly.  Like all other monopolies, it will unavoidably raise the price of good books beyond the reach of ordinary readers. They will be sold like so many valuable pictures..... [the] booksellers, by grasping too much, would lose their trade altogether; and men of genius would be quite discouraged from writing, as no price can be afforded for an unfashionable commodity. In a word, I have no difficulty to maintain that a perpetual monopoly of books would prove more destructive to learning, and even to authors, than a second irruption of Goths and Vandals. "</i></blockquote><br /><br /><a href="http://www.techdirt.com/articles/20090901/0318106070.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090901/0318106070.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090901/0318106070.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>a-look-back</slash:department>
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<pubDate>Wed, 9 Sep 2009 08:00:00 PDT</pubDate>
<title>Bad Ideas: Trying To Make Content More Like Physical Property</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090908/1319056130.shtml</link>
<guid>http://www.techdirt.com/articles/20090908/1319056130.shtml</guid>
<description><![CDATA[ Let's play a little hypothetical.  Let's say that someone had discovered a way to automatically -- without any additional cost -- create all the food that the world's population needed, and automatically have it appear wherever and whenever needed.  Think of it like the "replicator" device in Star Trek, where you can just walk up to it, and it'll create whatever food you want.  The entire issue of hunger and worries about the "scarce resource" of food would go away.  Who, in their right mind, would want to break such a machine, and force this newly abundant resource back to being scarce?
<br /><br />
Yet, that seems to be exactly what's happening in the music world.  A whole bunch of folks have sent in this positively ridiculous attempt by some guy named Paul Sweazey to get the IEEE to endorse a new standard to <a href="http://arstechnica.com/tech-policy/news/2009/09/goodbye-drm-hello-stealable-digital-personal-property.ars" target="_new">make content act more like physical property</a> by allowing it to be "stolen."  It's basically a weird DRM system that would allow the content to be fully "taken away" from the original holder.  I've read the article a few times, and I have to be honest, that I don't quite get it.  Those who get the content would still be able to share the actual content with whoever they wanted, however many times they wanted it -- but there's a separate "playkey" and someone can "take" that away, such that those who had it before can't use it after.  But why would anyone "take" the playkey, other than to be a jackass?
<br /><br />
But the bigger issue is why bother in the first place?  Why purposely try to limit an abundant resource by making it scarce?  Sweazey claims:
<blockquote><i>
His answer is that such freely-copiable goods breaks the basic business model of human commerce by making goods nonrivalrous; it no longer has aspects of a private good, and this makes it difficult to sell.
</i></blockquote>
But, this is wrong.  It shows an out-of-date understanding of economics.  While it may mean that you can't directly create a (paid) market in that private good, it opens up and enables many more markets.  Going back to the food analogy: if you had many more people in the world who weren't hungry, and didn't have to spend all their money on food or food production, would that be good or bad for the economy?  It seems rather obvious that it would be good, as money could be spent on higher level things that expand the economy.
<br /><br />
Taking an abundant resource and actively working to make it act like a scarce resource makes no sense.  It limits progress and the wider economy, and it's the last thing that a group like the IEEE should be supporting.<br /><br /><a href="http://www.techdirt.com/articles/20090908/1319056130.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090908/1319056130.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090908/1319056130.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>bangs-head-on-desk</slash:department>
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<pubDate>Mon, 17 Aug 2009 12:21:00 PDT</pubDate>
<title>Why Virtual Property Doesn't Make Sense</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090817/0259395898.shtml</link>
<guid>http://www.techdirt.com/articles/20090817/0259395898.shtml</guid>
<description><![CDATA[ I've long had trouble with the idea that "property rights" <a href="http://www.techdirt.com/articles/20031203/2352200.shtml">make sense</a> in virtual worlds.  After all, the entire purpose of property rights is to <a href="http://www.techdirt.com/articles/20070521/015928.shtml">efficiently allocate resources</a> in the presence of scarcity.  If there's no scarcity, there's no question of efficient allocation (everyone can get as many copies as they want).  However, for whatever reason, there's been a big push to create "property rights" within virtual worlds.  <a href="http://yro.slashdot.org/story/09/08/13/1821203/Making-the-Case-That-Virtual-Property-Is-a-Bad-Idea?from=rss" target="_blank">Slashdot</a> points us to an excellent paper that <a href="http://works.bepress.com/john_nelson/3/" target="_new">goes through the arguments for assigning property rights in virtual worlds</a>, and even models out some scenarios based on them.  In the end, it finds no compelling reason for assigning property rights in virtual worlds. Here's just a snippet, from a look at whether or not property rights make markets more efficient in a virtual world:
<blockquote><i>
Extending property rights to virtual resources does not make more
efficient markets for those resources. The qualified approach to virtual
resource property rights provides no reductions in the search costs of a
buyer since the legal rights and attributes of those resources mirror those
granted by the virtual world's code-based regulations. Worse, a carte-blanche
approach will increase search costs by requiring a buyer to
determine where the code-based rights and attributes of a resource deviate
from its legal rights and attributes.
<br /><br />
Therefore, the efficient market justifications for virtual resource
property rights can not be satisfied under either the carte-blanche or
qualified approach to virtual resource property rights. The only way this
justification may be satisfied is if legislatures and courts reach into the
virtual worlds and mandate what specific rights and attributes virtual
resources can take.
</i></blockquote><br /><br /><a href="http://www.techdirt.com/articles/20090817/0259395898.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090817/0259395898.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090817/0259395898.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>bingo</slash:department>
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<pubDate>Tue, 21 Jul 2009 09:52:00 PDT</pubDate>
<title>How Copyright Can Be Viewed As Anti-Property</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090719/0108125588.shtml</link>
<guid>http://www.techdirt.com/articles/20090719/0108125588.shtml</guid>
<description><![CDATA[ One of the regular discussions we get into around here is over the question of whether or not things like copyright and patents <a href="http://www.techdirt.com/articles/20080306/003240458.shtml">are really property</a>.  The IP lawyers who insist that it's just like property focus on a rather simplistic (and wholly inaccurate) explanation of why it is property: which is that if it's a bundle of rights that can be transferred, then it is property.  But that's misleading.  Because it mixes up a couple of key elements that make this definition quite inconvenient.  The key among them is that those who hold IP rights rarely sell them (yes, it does happen, but it's a rare transaction when it does).  Instead, they mostly <i>license</i> the rights.  And that's rare with real property. Again, it <i>does</i> happen sometimes, but not very frequently -- and, when it does, it's <i>always</i> represented quite clearly as a <i>rental</i> or a <i>lease</i> rather than a purchase.  It's not even thought of in the same framework.  So, you have a major difference right there.
<br /><br />
And, in fact, there's a reasonable argument that when most of the transactions are licenses but are represented as purchases, it's actually very much against the basic principles of property, rather than for them.  <a href="http://twitter.com/thornkvist/statuses/2704239094" target="_new">Martin</a> points us to a fascinating and thoughtful writeup, by Nicklas Lundblad, originally written in <a href="http://noisesociety.com/nicklaslundblad.se/?p=17" target="_new">Swedish</a>, but the <a href="http://translate.google.com/translate?prev=hp&#038;hl=en&#038;js=y&#038;u=http%3A%2F%2Fnoisesociety.com%2Fnicklaslundblad.se%2F%3Fp%3D17&#038;sl=sv&#038;tl=en&#038;history_state0=" target="_new">Google translation is quite readable</a>, that discusses how the recent actions by Amazon to <a href="http://www.techdirt.com/articles/20090717/1559425587.shtml">delete purchased George Orwell ebooks</a> on the Kindle demonstrates just how anti-property "licensing" is (my own edit of part of the translation):
<blockquote><i>
What is interesting with the time, however, is that it illustrates an example of a conflict that has not been seen very often - between the copyright and ownership of individual copies of a work which we have purchased legally.  As noted in the article above, we would probably flinch [if someone] knocked on the door, courteously explained that the publisher who sold us the last part of Harry Potter no longer wants to provide a paper edition, and that therefore they had brought with him a little gasoline to burn up our copy .  Most of us would probably shut the door again, put on a little coffee and [laugh]... [if anyone] would try their hand at this.  But in the transition to the digital economy it will make it harder for us to protect our own space and our property, as more and more terminals are now sold [with what is] charmingly called a "kill switch".  The iPhone will have, like the Kindle and other terminals: an opportunity to, at a distance, without our consent in the case (but we have certainly agreed to it in any agreement anywhere) change the content of the technologies we use.
</i></blockquote>
And that very fact is incredibly anti-property.  The idea that something we believe we have legitimately <i>purchased</i> can suddenly be snatched away from us, at a distance, with no recourse is not property.  It's the opposite of property.  In the comments to our original post, someone pointed out that for all the copyright maximalists who like to refer to infringement as "theft," Amazon's deletion of <i>1984</i> was a lot closer to "theft" in that people who had purchased something suddenly found that it was gone.  Poof.  That is extremely anti-property, and anti-free market -- and that's a problem:
<br /><br />
The original article goes on to note that while a contractual agreement is the cornerstone of the free market, a license agreement built on copyright is quite different.  It's built with a very strong imbalance, backed up by government protectionism, that changes the free market structure.  Lundblad notes:
<blockquote><i>
The license is like a <b>parody of a contract</b> because the contract coordinating effect been eliminated from the outset by a law which gives one party all the bargaining power.
</i></blockquote>
While I have no doubt that this will upset and anger the folks who believe that copyright is absolutely 100% property, it's a rather compelling explanation of how copyright isn't just not like property, but in many ways is anti-property in that it violates some of the basic tenets of true property and true property rights.<br /><br /><a href="http://www.techdirt.com/articles/20090719/0108125588.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090719/0108125588.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090719/0108125588.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>removing-rights</slash:department>
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<pubDate>Mon, 11 Aug 2008 12:18:10 PDT</pubDate>
<title>Why Treating Patents As Property Is A Bad Idea</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20080803/1921371875.shtml</link>
<guid>http://www.techdirt.com/articles/20080803/1921371875.shtml</guid>
<description><![CDATA[ We've pointed out in the past why it <a href="http://www.techdirt.com/articles/20080306/003240458.shtml">doesn't</a> make much sense to treat "intellectual property" as "regular property," since it ignores some very important differences between the two.  James Bessen and Michael Meurer, who wrote the recent book <a href="http://researchoninnovation.org/dopatentswork/">Patent Failure</a> have always taken a slightly different approach.  While they agree with us that the patent system tends to do more harm than good (and they've got a <i>ton</i> of research to back that up), they claim that the problem is that patents don't act <i>enough</i> like property.  They say the problem is that the <a href="http://www.techdirt.com/articles/20080520/0716461180.shtml">"fuzzy boundaries"</a> around patents mean that there aren't clear rules or "fences" as with real property.  So, their prescription is to look for ways to treat patents more like real property.
<br /><br />
<a href="http://www.ericgoldman.org/">Eric Goldman</a> points us to a recent paper by well known law professor and patent system expert Mark Lemley <a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=999961" target="_new">on why it's a <i>good thing</i> that patents aren't treated more like property</a>.  Lemley is mostly a patent system supporter, but (unlike some around here) he appears to <a href="http://www.techdirt.com/articles/20070226/142913.shtml">recognize</a> that the system could be improved, and seems <a href="http://www.techdirt.com/articles/20070116/151246.shtml">open</a> to evidence concerning where the patent system does more harm than good.
<br /><br />
This paper makes some important distinctions between patents and real property, and notes that it's probably for the best that in the real world patents actually are <b>not</b> treated like property, because it would slow down innovation if, before anyone invented anything, they had to secure a ton of agreements with patent holders:
<blockquote><i>
It is currently very much in vogue to talk about patent rights as a form
of property, and in particular to draw analogies to real property. So let's engage in a thought experiment: what if we took the analogy seriously and
actually behaved with patents as we do with real property? Product manufacturers
would have to stop ignoring patents. No venture capitalist or bank
(or shareholder, should Intel fund the project internally) would give Intel the
money to build a new manufacturing plant (or "fab") unless it could demonstrate
that it had conducted an exhaustive search for patents it might infringe
in manufacturing its chips and had obtained irrevocable or at least long-term
licenses to use any patent that anyone might conceivably later assert against the chips or the manufacturing plant. Intel, in turn, would look to a
group of "patent insurance" firms that would spring up and that would conduct
the search and determine what patents needed to be licensed. Unless
and until all of this had happened, Intel could not start construction of its
fab, much less make or sell chips produced by that fab. If there were significant
disagreement over whether a party legitimately owned patent rights,
perhaps Intel could bring a declaratory judgment action to try to clarify
those rights, but it would hold construction in abeyance until it got an answer.
 And since there is no experimental use defense to patent infringement,
scientists at both universities and corporations would have to conduct
a similar search and wait to get permission from all possible interested parties
before they began their research, lest they infringe a patent in the lab.
<br /><br />
Would this world be desirable? I'm skeptical. Let's begin with the
benefits of such a world. Patent owners would get paid early and often.
Patent litigation would decrease, or maybe even disappear entirely, because
anyone who wanted to make a product would find the patent owner and
enter into a deal up front, or else not make the product. And patent owners
who compete in the marketplace, and rely on the patent to preserve exclusivity,
would not face competition during the often-protracted period during
which the patent is being litigated.
<br /><br />
At the same time, these benefits would come at significant cost. First,
both research and the manufacture of products would be regularly delayed
for years and perhaps decades as potential defendants identified and cleared
rights....
<br /><br />
Second, a real-property patent system would replace competition with
central coordination in a significant number of cases. So far we have assumed
that the patent owners will be willing to license their patents. But
that is likely not to be true in many cases. Patent owners who compete in
the marketplace want exclusivity, and there is no license price an equally
efficient competitor will be willing to pay that will compensate for the loss
of monopoly rights. Even patent owners who do not compete in the marketplace
may find it more lucrative to grant an exclusive rather than a nonexclusive
license to someone who does make a product, for the same reasons.
Nor will a competing company be particularly sympathetic to efforts
by outsiders to engage in research on the invention if the effect of that research
will be to design around or improve that core invention. The effect
of a real-property or title-search system is to replace competition in the
shadow of a patent while it is being litigated with single-firm markets
whenever the patentee participates in the market, either directly or by proxy.
Researchers who could not obtain a license would direct their scientific efforts
into different fields, and potential competitors would do the same,
meaning that the owner of a core patent could control who, if anyone,
worked on a particular technology. If you believe, as I do, that the evidence
suggests that competition is often a better spur to innovation than monopoly, removing that contingent competition is a potentially significant
cost.
<br /><br />
Third, and perhaps most important, a significant percentage -- maybe
as many as three-fourths -- of these patents turn out to be either invalid or
not infringed. It is this probabilistic nature that most critically distinguishes
patents from real property. Under the current system in patent-ignoring
industries, consumers benefit from competition during the time before those
patents are invalidated or held not to be infringed. Under a real-property patent system, the owners of invalid patents can capture supracompetitive
profits during the time before their patents are invalidated, profits made at
the expense of consumers and that they will never have to disgorge. That
extra profit, in turn, would create significant incentives to obtain and enforce
dubious patents....
<br /><br />
Finally, people usually build a house on a single plot of land, while as
I have noted, there may be hundreds or thousands of rights that must be
aggregated to build a multi-component product. As Carl Shapiro and I have
argued elsewhere, this fact exacerbates the patent holdup problem and leads
to systematic overpayments by manufacturing companies, because individual
patent owners won’t discount the royalty they charge to account for the
complementary rights owned by others.
</i></blockquote>
He goes into a lot more detail beyond that, and basically suggests that the current system of companies simply ignoring patents until later is probably better than going to one where patents are fully treated like property.
<br /><br />
However, he then suggests a bunch of changes to the patent system that could (he believes) create a more reasonable middle ground: (1) more resources to the patent office to get through more patents faster (2) preventing patent applicants from delaying the process through things like continuations (3) requiring rapid publication of all patent apps (4) allowing peer-review and post-grant opposition to better establish what a patent really covers (5) allow independent invention as a defense against infringement (6) change the rules on "willful infringement" (which currently encourage people not to look at any patents by tripling damages if they find out you even looked at a patent you're later found infringing on) (7) change patent remedy rules to end situations where patent holders can hold up the production of useful innovations (8) require companies to do patent searches to make sure they are not infringing (this, combined with #6 almost flips current willful infringement rules on their head) and (9) require the publication of any patent license terms.
<br /><br />
It's quite a list... At this point, this post is long enough not to get into whether or not this is a good or bad proposal (suffice it to say, I think some of it makes sense, while other parts are troubling -- and I'd bet that patent system supporters will say the ones I think are good are bad, and the ones I think are bad are good), but wanted to post it up here for discussion.<br /><br /><a href="http://www.techdirt.com/articles/20080803/1921371875.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20080803/1921371875.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20080803/1921371875.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>yet-again</slash:department>
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<pubDate>Wed, 20 Feb 2008 07:31:00 PST</pubDate>
<title>Another Look At The 'Does File Sharing Equal Stealing?' Question</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20080219/014250290.shtml</link>
<guid>http://www.techdirt.com/articles/20080219/014250290.shtml</guid>
<description><![CDATA[ Jon Healy, whose writing for the LA Times I admire quite a bit, has written up <a href="http://www.latimes.com/news/opinion/la-oew-healey18feb18,0,5092348.story" target="_new">a very balanced discussion concerning whether or not file sharing equals theft</a>.  He links to some of my writings on the subject, as well as pointing to the views of two Nobel Prize winning economists, F.A. Hayek and Milton Friedman, who both point out that copyright is not property, and treating it as such causes problems.  He then presents the entertainment industry's view, which (of course) is that copyright is no different than traditional property.  Then he brings in legal scholar Mark Lemley (of whose work I'm also a <a href="http://www.techdirt.com/articles/20070116/151246.shtml">fan</a>) who tries to bridge the gap by noting that copyright isn't property, but that infringing it "is wrong, and should be punished."  However, Lemley also points out that most people recognize copyright isn't traditional property, and the entertainment industry's insistence that they're the same works against the industry, as most people recognize immediately that this argument is false, taking away credibility.
<br /><br />
Healy comes out on the balanced side himself, suggesting that infringement is close enough to theft.  He does so by comparing it to "theft of service" for cable companies, and noting that "you're still acquiring something of value without paying for it, and you're doing it without the seller's permission."  This is a commonly used argument, and seems reasonable at a first pass, but I'd like to address why it's incorrect.  Just because you acquire something of value for free (and without the <i>original</i> seller's permission) it doesn't automatically make it "theft."  Let's run through some examples:
<ul>
<li> I go to the pizza shop and they offer me a free soda with two slices.  The soda has value, but I just got it for free, and did so without Coca-Cola granting permission.  I don't think anyone would claim this is stealing or even wrong or immoral.</li>
<li> My friend lets me borrow a book, which I read.  The book has value.  I got it for free, without the permission of the book author or publisher.</li>
<li> I get on a train and pick up the newspaper that a passenger left behind.  The newspaper has value.  I got it for free, without the newspaper company granting permission.  I don't think anyone would claim that's stealing.</li>
<li> I go to the beach.  The people sitting next to me are playing music on their stereo, that I can hear.  The music has value, but I just got it for free, without the permission of the record label.</li>
<li> I go see "Shakespeare in the Park."  I get to see something of great value for free, without permission of William Shakespeare.</li>
<li> Verizon sees that Sprint is going to announce an "all you can eat plan" and decides to <a href="http://www.dslreports.com/shownews/Verizon-Wireless-Announces-Unlimited-Calling-91984?nocomment=1">introduce its own</a> similar plan.  Verizon got that idea for a bundle from Sprint for "free" and certainly without Sprint's permission.  Yet, we call that competition, not stealing.</li>
</ul>
You can come up with your own examples.  Now I'm sure people will start picking apart each of these examples.  They'll say things like in the pizza/soda example, the pizza shop has implicit permission to resell the soda at any price they deem reasonable, since they paid for it in the first place.  But, if that's the case, then we have another problem for those who claim that copyright is real property -- because the same thing <i>isn't</i> true with copyrighted material.  Those who insist that copyright is the same as real property break their own rule by <i>also</i> insisting that they retain perpetual rights to the good, even after it's been sold.  If copyright were like real property, after the creator sold it, the buyer could do whatever they want with it, including giving it out for free.  Yet, it clearly is not like that.  Coca-Cola sold soda to the pizza shop and the pizza shop can do whatever they want with it, including giving it out for free.  So, if the entertainment industry wants to keep insisting that copyright is just like real property, and therefore infringement is theft, then they should also agree to let anyone who has bought their works do whatever they want with them, including give them away for free.
<br /><br />
In fact, each "but, this is different because" explanation for the examples above can easily be turned around to prove the point that <a href="http://www.techdirt.com/articles/20070521/015928.shtml">copyright is different</a> than real property -- because it applies the same rules differently and deals with fundamentally different types of goods or services.  What it really comes down to, yet again, is that this is a business model problem.  For years, an industry that relied on artificial scarcity is discovering that it's hard to keep that artificial barrier in place.  It can't pretend something is scarce when it's really infinite -- and trying to limit it will only backfire in the long run.  What you need to do, instead, is figure out new business models that embrace the infinite nature of the goods, and focus on selling additional scarce goods, preferably additional scarce goods that are made even more valuable by freeing up the infinite good.<br /><br /><a href="http://www.techdirt.com/articles/20080219/014250290.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20080219/014250290.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20080219/014250290.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>more-than-just-a-semantic-argument</slash:department>
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