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<title>Techdirt. Stories filed under &quot;regulation&quot;</title>
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<image><title>Techdirt. Stories filed under &quot;regulation&quot;</title><url>http://www.techdirt.com/images/td-88x31.gif</url><link>http://www.techdirt.com/</link></image>
<item>
<pubDate>Thu, 2 May 2013 23:46:00 PDT</pubDate>
<title>New EU Regulation Threatens Rare Seed Varieties, Agricultural Independence And Food Supply Resilience In Europe</title>
<dc:creator>Glyn Moody</dc:creator>
<link>http://www.techdirt.com/articles/20130501/08595722907/new-eu-regulation-threatens-ancient-seed-varieties-agricultural-independence-food-supply-resilience.shtml</link>
<guid>http://www.techdirt.com/articles/20130501/08595722907/new-eu-regulation-threatens-ancient-seed-varieties-agricultural-independence-food-supply-resilience.shtml</guid>
<description><![CDATA[ <p>
Unless we are farmers, we tend to take seeds for granted.  But civilisation is built on seeds: it was the rise of large-scale agriculture, based in part on the skilful breeding of ever-better seeds, that eventually allowed towns and then cities to form; and with them, the trades, arts and sciences that were possible once enough food could be produced by just a fraction of the population.  That makes national seed policies -- how governments regulate the production and sale of plant varieties -- a crucial if neglected aspect of our urban lives.
</p>
<p>
It seems that the European Commission has been working on a massive re-vamp of its regulations governing seeds, and <a href="http://www.soilassociation.org/news/newsstory/articleid/5217/press-comment-proposed-eu-regulation-concerning-seed-varieties">people are increasingly worried by its plans</a>. Here's what the Soil Association, a UK charity founded in 1946 that campaigns for organic food production and related areas, has to say on the matter:

<i><blockquote>The Soil Association believes the proposed new EU regulation on the marketing of plant reproductive material will put the future of our plant biodiversity at risk. It will have a disastrous effect on the availability of rare varieties and farmers' varieties, and stop the exchange and selling of traditional seeds. This will not only affect farmers and growers in the short term by outlawing exchange of seed not currently commercially available, but in the long term will erode the diversity of species that even the large seed companies, who are driving the proposal, need to provide their future varieties.</blockquote></i>

The <a href="http://www.seed-sovereignty.org/PDF/EU_Comm_Draft_on_plant_reprodutive_material.pdf">draft of the regulation</a> (pdf) is around a hundred pages of pretty dry rules, but the essence is as follows.  The new regulation will apply to every kind of plant, and will impose strict rules on those producing or offering seeds and plants commercially.  They must register, every plant or seed they wish to sell must be certified, and these must be packaged according to strict rules that even specify what color the attached labels must be.
</p>
<p>
The intent may be laudable: to ensure that plant material that is available in the EU is safe, and that problems can be tracked back to their source.  But the bureaucratic burden and cost of compliance is likely to be well beyond most smaller seed producers.  Here's what the Soil Association sees as the chief problems:

<i><blockquote>The proposed regulation goes even further than the current European seed law which favours the production of uniform varieties (protected by plant breeder's rights) and discriminates against less homogenous open pollinated varieties and populations. This has already resulted in a non-reversible loss of agro-biodiversity. The proposed regulation will require every seed to be registered and an annual license to be paid for each variety.
<br /><br />
Under this law it won't be possible to register old and new niche varieties and populations (e.g. conservation and amateur varieties, landraces [<a href="https://en.wikipedia.org/wiki/Landrace">naturally-evolved local variants</a>] and farmers' selections) based only on an officially recognized description (ORD), without official registration and certification, as is currently practiced.
<br /><br />
If this regulation is passed, not only will we lose a huge number of plant varieties , we will lose the amazing diversity of appearance, taste, and potential benefits such as disease resistance and nutritional content.
<br /><br />
Furthermore despite assurances that this law will only apply to farmers the latest draft legislation suggests that every gardener will be subject to the regulation -- the effects will be disastrous for farmers and growers</blockquote></i>

As that makes clear, the new regulation will discriminate against traditional, unpatented varieties that don't have deep-pocketed companies behind them.  That's crazy for at least two reasons.
</p>
<p>
First, it is precisely these older varieties that collectively have the greatest genetic diversity.  That makes it more likely that some of them will be resistant to new diseases, and better able to cope with rapid climate change.  By forbidding the sale of these varieties unless they are registered and certified -- something that is likely to be prohibitively expensive given the huge number of them -- the regulations will cause the plants used across Europe to become genetically less diverse, more vulnerable to disease and less able to cope with changes in the environment.
</p>
<p>
On the other hand, the big multinational seed companies with patented varieties will easily be able to meet the expense of registering and certifying their products.  Since the unpatented alternatives that derive from ancient varieties or more recent landraces will no longer be permitted even in local flower and vegetable markets unless fully certified, the dominance of such giant seed companies in Europe is likely to grow.  The EU will come to rely on a few very large companies and their limited selection of patented products.  As well as increasing the likelihood of cartels forming, and higher prices, this shift will reduce both the independence and resilience of European agriculture.
</p>
<p>
What's particularly disturbing is that these far-reaching changes seem to have been drawn up almost entirely unnoticed.  It is only now that a few organisations like the Soil Association are finally alerting people to what is happening.  The bad news is that the European Commission is due to vote on the new regulation next week; but the good news is that <a href="http://open-seeds.org/bad-seed-law/">a recent email campaign led by the Open Source Seeds site may be having some effect</a>:

<i><blockquote>We have heard that due to the volume of people writing about this, last minute changes are being considered.</blockquote></i>

Let's hope so -- they're badly needed.
</p>
<p>
Follow me @glynmoody on <a href="http://twitter.com/glynmoody">Twitter</a> or <a href="http://identi.ca/glynmoody">identi.ca</a>, and on <a href="https://plus.google.com/100647702320088380533">Google+</a>
</p><br /><br /><a href="http://www.techdirt.com/articles/20130501/08595722907/new-eu-regulation-threatens-ancient-seed-varieties-agricultural-independence-food-supply-resilience.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130501/08595722907/new-eu-regulation-threatens-ancient-seed-varieties-agricultural-independence-food-supply-resilience.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130501/08595722907/new-eu-regulation-threatens-ancient-seed-varieties-agricultural-independence-food-supply-resilience.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>how-did-that-happen?</slash:department>
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<item>
<pubDate>Fri, 29 Mar 2013 14:16:50 PDT</pubDate>
<title>Feds Take A Step Closer To Trying To Regulate Bitcoin</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130325/03034522451/feds-take-step-closer-to-trying-to-regulate-bitcoin.shtml</link>
<guid>http://www.techdirt.com/articles/20130325/03034522451/feds-take-step-closer-to-trying-to-regulate-bitcoin.shtml</guid>
<description><![CDATA[ We're still somewhat <a href="http://www.techdirt.com/articles/20110420/02412713972/can-bitcoin-really-succeed-long-term.shtml">skeptical</a> about the longterm prospects for Bitcoin, even if it has shown the ability to rebound after its initial hypecycle <a href="http://www.techdirt.com/articles/20111128/03295016910/rise-fall-bitcoin-is-it-really-over-yet.shtml">crashed</a>.  However, we've always known that the government was uncomfortable with the concept of Bitcoin.  From Senator Chuck Schumer insisting that it <a href="http://www.techdirt.com/articles/20110605/22322814558/senator-schumer-says-bitcoin-is-money-laundering.shtml">was money laundering</a> to the FBI <a href="http://www.techdirt.com/articles/20120510/10550418870/fbi-explores-implications-bitcoin.shtml">exploring</a> the technology, you knew that sooner or later the government would try to do something.
<br /><br />
Recently, they took a step in the direction of trying to gain some tiny bit of control over Bitcoin by having the Financial Crimes Enforcement Network (FinCEN) issue new guidelines concerning <a href="http://arstechnica.com/tech-policy/2013/03/us-regulator-bitcoin-exchanges-must-comply-with-money-laundering-laws/" target="_blank">rules for (unnamed) "de-centralized virtual currency."</a>  Basically, the rules say that "money services businesses" including "money transmitters" will have to report "potentially suspicious transactions" to the government -- which potentially could involve a decent number of Bitcoin transactions.  The question was who qualifies, and the new rules basically suggest if there's a connection to another currency (say... US dollars), then you've got an issue.  Users of Bitcoin are clearly exempted, but with sellers... it's not so clear. As Tim Lee explains:
<blockquote><i>
On the other hand, "a person that creates units of convertible virtual currency and sells those units to another person for real currency or its equivalent is engaged in transmission to another location and is a money transmitter," and is therefore subject to federal regulations.
<br /><br />
However, this may only apply to those who perform money transmitting services "as a business." FinCEN says that "a user of virtual currency is not an MSB under FinCEN's regulations and therefore is not subject to MSB registration, reporting, and record keeping regulations." But with a peer-to-peer currency, the line between a "user" and an "administrator or exchanger" is not at all clear. The regulations define an exchanger as someone who "engaged as a business in the exchange of virtual currency for real currency."
</i></blockquote>
Of course, with an unclear rule, you can bet that some people are going to test the boundaries -- and that could eventually lead to a very interesting case, challenging specific aspects of Bitcoin.<br /><br /><a href="http://www.techdirt.com/articles/20130325/03034522451/feds-take-step-closer-to-trying-to-regulate-bitcoin.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130325/03034522451/feds-take-step-closer-to-trying-to-regulate-bitcoin.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130325/03034522451/feds-take-step-closer-to-trying-to-regulate-bitcoin.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>control-control-control</slash:department>
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<pubDate>Fri, 1 Feb 2013 12:48:44 PST</pubDate>
<title>Sen. Charles Grassley: An Unregulated Video Game Market Is A Dangerous Thing</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20130201/09445121852/sen-charles-grassley-unregulated-video-game-market-is-dangerous-thing.shtml</link>
<guid>http://www.techdirt.com/articles/20130201/09445121852/sen-charles-grassley-unregulated-video-game-market-is-dangerous-thing.shtml</guid>
<description><![CDATA[ It looks as if politicians just aren't going to let video games continue to operate without regulatory oversight. We've already seen <a href="http://www.techdirt.com/articles/20130116/18463821708/another-legislator-hops-board-violent-video-game-bandwagon-introduces-redundant-labeling-bill.shtml" target="_blank">Rep. Jim Matheson's bill</a>, which would basically turn a voluntary system (the ESRB) into a mandatory one with fines handed out for violations. It's a cynically redundant piece of legislation which would score Matheson a cheap political win, if it only had a chance in hell of passing. (The bill is even more redundant than that -- Matheson had this same bright idea twice before, <a href="http://www.techdirt.com/articles/20130116/18463821708/another-legislator-hops-board-violent-video-game-bandwagon-introduces-redundant-labeling-bill.shtml#c627" target="_blank">in 2006 and 2008</a>.)<br />
<br />
Now, at the current Judiciary Committee hearings on "gun violence," Sen. Charles Grassley <a href="http://thehill.com/blogs/hillicon-valley/technology/280171-grassley-voluntary-ratings-for-violent-video-games-not-enough" target="_blank">has suggested that current rating system just simply isn't good enough</a>.
<blockquote>
<i>"There are too many video games that celebrate the mass killing of innocent people &mdash; games that despite attempts at industry self-regulation find their way into the hands of children," Grassley said at a Judiciary Committee hearing called to examine the causes of gun violence in the wake of the mass shooting at Sandy Hook Elementary School in Newtown, Conn., last month.</i></blockquote>
Really? Everyone's current scapegoat, <i>Celebrate Mass Killing: Modern Warfare [Current Iteration]</i> and its spinoff, <i>Celebrate Mass Killing: Black Ops</i>, tend to celebrate the killing of people trying to kill you. And only if by "celebrate" you mean, "advance the storyline," and if by "advance the storyline," you mean "reach arbitrary hotspot that prevents enemy re-spawning and allows your more capable squadmates to turn a doorknob or something in order to continue celebrating mass killings."<br />
<br />
But more seriously, despite the attempts of the government to regulate tobacco and alcohol sales, these items still find their ways into the hands (and mouths) of underage persons. And despite the government's best efforts to keep porn out of the eyes and hands of youngsters, many, many teens have seen a thing or two and attempted even more. No system is perfect but I'm willing to put the stats of the purely voluntary ESRB (and the retailers involved) up against the stats of any government regulated, sin-tax-paying item.<br />
<br />
As for actual dangerous items currently regulated by federal and state governments, here's where they line up. <a href="http://www.theyeshivaworld.com/news/General+News/136197/Underage-Tobacco-Sales-Falls-To-All-Time-Low.html" target="_blank">Cigarette sales to minors are at 8.5%</a>, falling from 40% in 1997 (2011 statistics). If there's a national percentage on alcohol sales, it's very well hidden. Here's some information from various locales on underage sales compliance rates. Blount County, TN - <a href="http://www.thedailytimes.com/Breaking_News/story/Three-businesses-employees-cited-for-underage-alcohol-sales-id-024208" target="_blank">9.7%</a>, Escambia County, FL - <a href="http://www.northescambia.com/2010/07/undercover-sweep-targets-underage-alcohol-sales-in-north-escambia" target="_blank">5.8%</a>, Fort Wayne, IN - <a href="http://articles.wsbt.com/2011-07-25/liquor-stores_29814838" target="_blank">4.3% (liquor stores)/8.8% (bars and restaurants)</a>, Washington, D.C. - <a href="http://washingtonexaminer.com/d.c.-pushes-crackdown-on-underage-alcohol-sales/article/2504594" target="_blank">9.5%</a>, Salem, NH - <a href="http://www.eagletribune.com/newhampshire/x300772186/Two-Salem-clerks-charged-with-underage-alcohol-sales" target="_blank">2.9%</a>, Boulder, CO - <a href="http://www.buffzone.com/cu-news/ci_17893366" target="_blank">13%</a>. So, overall, roughly in line with cigarette sales, if not possibly lower.<br />
<br />
Both percentages are admirably low, but compare those percentages to what the ESRB has achieved <i>without</i> the threat of arrest or loss of a retail license.<br />
<br />
<a href="http://www.ftc.gov/opa/2011/04/violentkidsent.shtm" target="_blank">According to stats released by the FTC</a> (<a href="http://www.techdirt.com/articles/20130116/18463821708/another-legislator-hops-board-violent-video-game-bandwagon-introduces-redundant-labeling-bill.shtml#c773" target="_blank">h/t to commenter DCX2</a> for tracking this down), underage teenage shoppers were only able to obtain M-rated video games 13% of the time, as compared to 38% for R-rated DVDs, 33% for R-rated movie tickets and 64% for music with a Parental Advisory sticker.<br />
<br />
Grassley seems to feel that putting the government in charge of enforcement would keep fewer M-rated games from "finding their way into the hands of children." Perhaps he should first take a look at how effective existing regulation is at keeping cigarettes and alcohol out of minors' hands. According to the CDC, <a href="http://www.cdc.gov/alcohol/fact-sheets/underage-drinking.htm" target="_blank">39% of high school students had consumed alcohol in the last 30 days</a>. Not only that, but underage consumption (people aged 12-20) represents 11% of the <i>total amount</i> of alcohol consumed yearly in the US. As for cigarettes, <a href="http://www.cdc.gov/tobacco/data_statistics/fact_sheets/youth_data/tobacco_use/index.htm#estimates" target="_blank">the number is <i>only</i> 19.5% of high school students</a>.<br />
<br />
So, even a well-regulated market fails to prevent these items from being used/consumed by minors. Regulating the video game market will result in much of the same. Deciding it's now a <i>crime</i> to sell a minor an M-rated video game won't prevent a family member or friend from purchasing the latest "celebration of mass killing" for someone under the age of 18. Most people are going to feel that handing off Call of Duty to a 15-year-old weighs easier on their conscience than handing them a six-pack of beer, a pack of smokes or a gun.<br />
<br />
But here's the key issue: the government can safely regulate tobacco and alcohol sales without fear of trampling on the First Amendment. Not so with games, although Grassley seems willing to put on his boots and start trampling.
<blockquote>
<i>Grassley pointed to evidence that a mass killer in Norway had played the popular "Call of Duty: Modern Warfare" game and had referred to the game as part of his "training simulation."</i><br />
<br />
<i>"Where is the artistic value in shooting innocent civilians?" Grassley asked.</i></blockquote>
Oh, I see. We'll know what art is when Grassley points it out. Once again, Call of Duty is labeled an "innocent civilian shooter," somehow missing the point of the game completely. Sure, one could argue that Grand Theft Auto is an "innocent civilian shooter," but just because you <i>can</i> do it, doesn't make it the overall point of the game. You don't advance the story by shooting innocent people. It's always an option, but it's never required. (Personal note: I'm fairly sure I've run over <i>way more</i> civilians than I've actually shot, but I rarely get the urge to <a href="http://i.imgur.com/Ezq32Pd.gif" target="_blank">drive up and down the sidewalk at 60 mph</a> when I'm behind the wheel...)<br />
<br />
Once you have a politician asking for regulation and questioning artistic value in the same breath, you've got a problem on your hands. The <a href="http://www.techdirt.com/articles/20110629/03232914904/california-politician-who-wrote-unconstitutional-anti-video-game-law-plans-to-try-again-with-new-law.shtml" target="_blank">Supreme Court has already determined</a> that government regulation of video game content is a violation of the First Amendment, but recent events have seemingly made it "OK" to push this dubious agenda again. The president <a href="http://www.techdirt.com/articles/20130118/17393421735/obama-tasks-cdc-with-study-video-games-violent-media.shtml" target="_blank">has authorized a study</a> into violent media (including video games), but it looks as if these legislators don't have any interest in collection actual evidence before making their move.<br /><br /><a href="http://www.techdirt.com/articles/20130201/09445121852/sen-charles-grassley-unregulated-video-game-market-is-dangerous-thing.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130201/09445121852/sen-charles-grassley-unregulated-video-game-market-is-dangerous-thing.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130201/09445121852/sen-charles-grassley-unregulated-video-game-market-is-dangerous-thing.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>first-amendment-even-MORE-threatening,-apparently</slash:department>
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<item>
<pubDate>Fri, 14 Dec 2012 12:04:00 PST</pubDate>
<title>Robots Or Robber Barons?  What If The Answer Is Both And Neither?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121212/10051821362/robots-robber-barons-what-if-answer-is-both-neither.shtml</link>
<guid>http://www.techdirt.com/articles/20121212/10051821362/robots-robber-barons-what-if-answer-is-both-neither.shtml</guid>
<description><![CDATA[ For reasons that I do not fully understand, Paul Krugman is a name that gets people <i>really</i> worked up for often irrational reasons -- mostly having to do with red team / blue team political arguments that have little bearing on actual economics.  My personal preference is to ignore the whole somewhat meaningless "left/right" dichotomy (no matter where a particular economist is normally associated) and focus on the actual economics being discussed.  And, recently, Krugman has been doing some deep thinking on what he's referred to as the question of <a href="http://www.nytimes.com/2012/12/10/opinion/krugman-robots-and-robber-barons.html?_r=0" target="_blank">robots or robber barons</a>.  The issue may be a little deep in the weeds for folks who aren't econgeeks, but it is both really interesting and really important to think through.
<br /><br />
The short version -- hopefully translated sufficiently via my "econgeek to normal people" translator -- is that there are economic metrics out there suggesting that things should be much better than they are: in particular, companies are making massive profits.  But, at the same time, <i>wages</i> are not showing any sort of increase.  Krugman uses this graph to demonstrate the point:
<center>
<a href="http://imgur.com/JWROz"><img src="http://i.imgur.com/JWROz.jpg" width=500 /></a>
</center>
As the graphic shows, as a percentage, wages ("labor") have been dropping.  If the output is not going to wages, where is it going?  Krugman uses the term "capital," which, basically (in this case), just means return on investment for assets: that is, if you own stuff, you're getting a return on it, which is going into your pockets rather than to people doing work.  Of course, when you look just at percentages of a single factor, things can quickly get misleading -- and at least some have suggested that looking at just the percentage going to labor may be exaggerated by a <a href="http://worthwhile.typepad.com/worthwhile_canadian_initi/2012/12/capital-biased-technical-change-vs-low-interest-rates.html" target="_blank">hidden third factor, such as land</a>.  While using terms like "labor" and "capital" are standard in economics, I find that they actually can distort the conversation (and even Krugman notes that some of the discussion veers into what sounds like "Marxist" discussions on "capital" and "labor").
<br /><br />
A simpler and perhaps more useful way of looking at things is: Where is the money going and how is it spent?  And, as it stands now, over the past ten years, the amount of money going to wages, as a percentage of money being made, has been going down.  So what's it all mean?  Krugman has two theories -- both of which may actually be true to varying degrees.
<ul>
<li><b>Robots</b>: The idea here is that automation has meant fewer jobs, and thus has held down wages and kept the supply of workers high.  This is an old argument, of course, but perhaps one worth thinking about.  We'll discuss it more below.
</li><li><b>Robber barons</b>: That is, monopolists.  The argument here is that when you see an aggregation of wealth to "capital," it suggests that the free market is somehow "stuck," and one possible reason is that the "owners of capital" have effectively created monopolies, allowing them to retain more than a free market might allow, via monopoly rents.
</li></ul>
If you think both of those suggestions sound somewhat anachronistic, you're not wrong.  Both of those possible arguments sound quite similar to the complaints people made a century or so ago.  And, as with that situation, I'd argue that the two explanations that Krugman puts forth may both have some element of truth, but also may not tell the whole story by a long shot.
<br /><br />
Let's start with the robots.  For years, many have suggested that greater productivity from automation leads to lower demand for human employees, thus creating less demand for workers -- leading to lower salaries, high unemployment and all that jazz.  Many people (myself included) have often used the term "luddites" for this, after the original followers of Ned Ludd, who believed that the industrial revolution was destroying jobs, leading to the "Luddites" smashing machines.  The term is used pejoratively, because the original Luddites, for the most part, weren't just wrong but were ridiculously wrong.  Far from destroying jobs, automation eventually created many new jobs.
<br /><br />
And, instinctively, I have the same reaction to the argument when put forth here.  We've heard this claim for so long, that greater productivity leads to fewer jobs -- but in practice it has never come true.  It has, certainly, meant that there has been job <i>displacement</i>, and potentially a shift in <i>job skills requirements</i> -- which can be very difficult for those whose skills are no longer relevant.  But, in the longer term, such automation has always created more jobs.
<br /><br />
Does that necessarily mean that this shall always be the case?  Not necessarily, but I'd argue that the long history of it being true suggests that you would need very, very strong evidence to back up the claim this time around -- and I'm not convinced we've seen that.  Of course, playing devil's advocate to myself, I can see one plausible argument that someone could make (even if I don't think it's true):  automation in physical work increased demands for jobs in other sectors -- such as services and information processing (desk jobs).  But the <i>information age</i> revolution has now started to automate many of <i>those</i> jobs as well, and it's not clear where we move along the spectrum from there.  That is, as the argument goes, that new jobs have always been created further along the spectrum from manual labor to services to information processing, but we've more or less hit the end of the line.
<br /><br />
I find this difficult to believe for a few reasons.  First, the same argument was made in the past every time some new fears about automation came along.  And every time it turned out that there were new job opportunities.  I can't see that changing now.  At all.  If it becomes true that labor is really increasingly available or cheap, that will create all sorts of new opportunities to make use of it.  The news that Apple is going to start <a href="http://www.bloomberg.com/news/2012-12-10/will-apple-spark-a-u-s-manufacturing-renaissance-.html" target="_blank">making some computers in the US</a> is just a small indication of that possibility coming true.  And, yes, even if they're using a robot-centric process, they're still creating domestic jobs.  But, further on that, there's tremendous opportunity coming out of disruptive innovation to create new jobs where none really existed previously.  The number of people making a living by selling goods on things like eBay, Etsy or Amazon is astounding.  Even newer tools like Kickstarter and Indiegogo are creating additional possibilities, and we write about all sorts of interesting business models all the time -- creating new opportunities.  Similarly, we've seen things like distributed call center services, such that people can work from home and be productive.  In fact, this could help explain some aspects of wage decline, as some people, who might have formerly not been in the workforce at all, can now work part time from home.
<br /><br />
But, of course, job displacement is messy, and figuring out where the new job opportunities are, and how they apply on a wider scale, is not a smooth process at all.  It takes time to work out the kinks -- and that could explain the lag in wages.  It could simply be the dip in efficiency as we enter that chaotic period of experimentation and attempts at new things before it becomes more clear where the new job opportunities will be.
<br /><br />
The "robber baron" argument makes a lot more sense to me -- and it even appears that Krugman may be <a href="http://krugman.blogs.nytimes.com/2012/12/09/technology-or-monopoly-power/" target="_blank">leaning</a> bit more that way, after hearing from some other economists:
<blockquote><i>
<a href="http://www.washingtonmonthly.com/features/2010/1003.lynn-longman.html">Barry Lynn and Philip Longman</a> have argued that we're seeing a rapid rise in market concentration and market power. The thing about market power is that it could simultaneously raise the <em>average </em>rents to capital and reduce the return on investment as perceived by corporations, which would now take into account the negative effects of capacity growth on their markups. So a rising-monopoly-power story would be one way to resolve the seeming paradox of rapidly rising profits and low real interest rates.
</i></blockquote>
Of course,  I think that the use of the term "robber barons" is potentially misleading as well.  This isn't necessarily a case of the Andrew Carnegies, JD Rockefellers, JP Morgans and Cornelius Vanderbilts of old.  Instead, it often seems that what we're dealing with are less super greedy "robber barons" (and yes, I know some people will point to examples that suggest otherwise -- especially on Wall Street) and more of a fight <i>against</i> innovation.  This goes back to my recent discussion on <a href="http://www.techdirt.com/blog/innovation/articles/20121208/22042621314/corruption-laundering-art-manipulating-regulations-to-block-innovation.shtml">corruption laundering</a>, in which companies are able to secure favorable regulations that actually help them against disruptive upstarts by arguing that allowing the upstarts will harm "jobs" or will upset the economic apple cart.
<br /><br />
In the end, that leads me to wonder if what we're really seeing is a third thing, which can account for both the "robots" and "robber barons" story lines and tie back to that corruption laundering situation: the rise of what Andy Kessler has referred to as <a href="http://www.techdirt.com/articles/20110130/00441512884/entrepreneurs-who-create-value-vs-entrepreneurs-who-lock-up-value.shtml">political entrepreneurs</a> vs. market entrepreneurs.  In that scenario, you have companies who aren't quite robber barons, but are adept at using the political system to engage in a form of "corruption laundering" to put in place regulations that limit true competition <i>and</i> the kind of innovation that helps to speed up the creation of new jobs.
<br /><br />
In some sense, we've <a href="http://www.techdirt.com/articles/20110810/02261615462/politicians-innovation-paradox-job-creation.shtml">discussed this before</a>, in noting that politicians often fear disruptive innovation because it "destroys jobs" even as it's creating new ones.  So they pass regulations that hinder disruptive innovation, in an attempt to "protect jobs."  But the end result is that the few larger players in the industry tend to suck up control of that industry and, as such, limit job growth (and begin to profit by being able to capture the monopoly rents).  They can employ greater automation to suck more profits out of their own business, but also can hold back the disruptive innovation that creates new jobs.
<br /><br />
So, in that scenario, you get higher profits and fewer jobs -- with increasing automation.  But you're missing out on the important disruptive innovations that help create the new jobs.  Part of the problem with the "robots" storyline from Krugman is that it assumes all technological advancement is equal: that big companies automating is the same thing as disruptive innovation that enables new jobs.  I don't think that's true.  Either way, these are certainly big and important questions worth thinking about and exploring.<br /><br /><a href="http://www.techdirt.com/articles/20121212/10051821362/robots-robber-barons-what-if-answer-is-both-neither.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121212/10051821362/robots-robber-barons-what-if-answer-is-both-neither.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121212/10051821362/robots-robber-barons-what-if-answer-is-both-neither.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>efficiency-lags-change</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121212/10051821362</wfw:commentRss>
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<item>
<pubDate>Mon, 19 Nov 2012 03:35:45 PST</pubDate>
<title>California PUC Cracks Down On Innovative Ride Sharing Operations As Another Batch Of Taxi Drivers Sue Uber</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20121115/16194521069/california-puc-cracks-down-innovative-ride-sharing-operations-as-another-batch-taxi-drivers-sue-uber.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20121115/16194521069/california-puc-cracks-down-innovative-ride-sharing-operations-as-another-batch-taxi-drivers-sue-uber.shtml</guid>
<description><![CDATA[ We've covered the various <a href="http://www.techdirt.com/blog/?company=uber">regulatory and legal fights</a> that Uber has been dealing with lately.  The company, which basically has set up a super convenient way for people to book a ride (and, in some cases, taxis), keeps running up against a combination of local regulatory agencies who tend to feel that they get to lord over anyone who attempts to do anything involving driving people around for money, as well as existing limo and taxi providers who fear a more efficient system (especially when they profit off of inefficiencies).  Of course, <i>some</i> politicians and taxi/limo drivers recognize that greater efficiency is actually <i>good</i> for everyone, allowing a more convenient and useful system, and filling in gaps when regulated supply strains the system.
<br /><br />
However, too many are just focused on the status quo.  And this isn't to say that there isn't a place for regulatory bodies to ensure that cabs and limos are safe and that they don't take advantage of passengers.  But the line between protecting passengers and protecting legacy players from competition sure does become a blurry line very, very quickly.  And this week a bunch of these companies have run into legal problems on their home turf.  Uber, specifically, has <a href="http://gigaom.com/2012/11/14/cabbies-sue-to-drive-car-service-uber-out-of-san-francisco/" target="_blank">has been sued in San Francisco</a> by some cabbies demanding that the company be shut down.  They claim that Uber's car hailing service is really an unregulated taxi service, and thus, unfairly competing with them.
<br /><br />
Perhaps the bigger issue, however, is that the California Public Utilities Commission (PUC) has <a href="http://www.wired.com/business/2012/11/california-uber-uber/" target="_blank">fined Uber and two other companies, Lyft and SideCar</a> (who offer ridesharing).  As that Wired link notes, this seems to be a clash between two core concepts that seem to thrive in San Francisco: on the one hand, freedom to innovate and disrupt and, on the other hand, support in government intervention for the public good.  I'd argue that the two concepts aren't in quite as much conflict as the article suggests, if the intervention actually is for the public good.  The problem is that's not really clear here, and it's not hard to see how it's really for the sake of limiting competition.  
<br /><br />
SideCar points out that this is a case of regulators <a href="http://blog.side.cr/2012/11/14/sidecar-gets-20k-ticket-for-innovating-over-speed-limit/" target="_blank">not knowing</a> how to classify an innovation:
<blockquote><i>
asserting that we are operating a transportation carrier... is like saying Airbnb is a hotel chain, that Travelocity is an airline, or that eBay is a store
</i></blockquote>
Lyft, similarly, suggests that <a href="http://blog.lyft.me/post/35729018557/defending-lyft" target="_blank">there's a problem</a> in regulators taking a square peg and trying to shove it into a round hole, because they've never seen a square before:
<blockquote><i>
Transportation has historically been a highly regulated industry, and the existing regulations weren&#8217;t designed to imagine a world where two neighbors who have never met are able to connect within a matter of minutes to share a ride across town.
</i></blockquote>
Uber's CEO, Travis Kalanick, told Wired that the PUC fine is particularly ridiculous in its case, since it only works with drivers who are <i>already</i> regulated by the PUC.  It's just offering them another channel for finding customers.  But under the PUC's ruling, it appears that they want those people to be doubly regulated, which seems completely wasteful:
<blockquote><i>
Our contention is that if you read the regulations, such a notion doesn&#8217;t make sense. Are we supposed to give drivers a second drug and alcohol test? Are we supposed to have cars inspected by the DMV a second time after they&#8217;ve already inspected (our) partners&#8217; vehicles? 
</i></blockquote>
In the end, you have to wonder if the role that regulators have still makes sense for these kinds of innovators.  Yes, there are issues about safety and avoiding scams, but the various companies have <i>built in</i> systems to deal with that -- such as driver ratings and public reviews.  Those types of things weren't really possible in the past, which is why you needed a PUC to make sure taxidrivers weren't ripping people off.  But now the "PUC" can be <i>the public</i> itself.  But... that only works if you believe the regulations are supposed to help the public, rather than the legacy players.<br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20121115/16194521069/california-puc-cracks-down-innovative-ride-sharing-operations-as-another-batch-taxi-drivers-sue-uber.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20121115/16194521069/california-puc-cracks-down-innovative-ride-sharing-operations-as-another-batch-taxi-drivers-sue-uber.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20121115/16194521069/california-puc-cracks-down-innovative-ride-sharing-operations-as-another-batch-taxi-drivers-sue-uber.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>innovation-not-allowed</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121115/16194521069</wfw:commentRss>
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<pubDate>Tue, 11 Sep 2012 05:09:28 PDT</pubDate>
<title>Do We Really Want The UN In Charge Of Cybersecurity Standards?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120910/02004020322/do-we-really-want-un-charge-cybersecurity-standards.shtml</link>
<guid>http://www.techdirt.com/articles/20120910/02004020322/do-we-really-want-un-charge-cybersecurity-standards.shtml</guid>
<description><![CDATA[ We've been talking quite a bit about the upcoming efforts by the International Telecommunication Union (ITU) to expand its ability to govern the internet, and numerous proposals are being submitted by various telcos along those lines.  The folks over at CDT are ably demonstrating why this is dangerous in a number of ways, starting with <a href="https://www.cdt.org/blogs/emma-llanso/0609itu-ill-suited-regulate-cybersecurity" target="_blank">why the ITU is the exact wrong place to be dealing with cybersecurity issues</a>, even though many of the proposals deal with cybersecurity.  Take, for example, the proposal of African Member States, which suggests that the ITU can be a central force in "harmonizing" data retention laws and rules.  As CDT notes, this seems to assume that the only issue with data retention laws are that they are different in different countries.  But that ignores the fact that many people question whether or not such laws even make sense in the first place:
<blockquote><i>
This reference to data retention well illustrates the problems with involving the ITU in 
issues related to cybercrime and cybersecurity. Not only do national laws on data 
retention vary greatly, but there is ongoing controversy about whether governments 
should impose data retention mandates at all. In addition, where data retention is 
required, there are many different views on the legal standards under which
governments should be able to gain access to retained data &#8211; whether access should 
require a court order, for example. Such questions are crucial to adopting a data 
retention law, but are far outside the expertise of the ITU.  Other concerns arise from the 
fact that data retained by a service provider may, absent specific legal and procedural 
safeguards, be subject to access by the government to investigate any crime, may be 
accessed by intelligence agencies, and may be shared with other governments to assist 
their investigations.  In addition, the more data that companies are required to retain, and 
the longer the retention period, the greater the risk that personal information could be 
breached, leaked, or otherwise abused.  
</i></blockquote>
Elsewhere, the report highlights how many of the proposals on "cybersecurity" seem more likely to set up rules and laws that help repressive regimes crack down on critics and dissidents.   And that, of course, highlights the real problem here.  There is nothing in the ITU that involves actually determining what's best for <i>the public</i> and for individuals' rights.  Instead, the proposals are from <i>big (often state-supported) telcos</i> and <i>governments</i> themselves.  The CDT paper correctly argues that a group like the ITU simply isn't as quick or as flexible as any reasonable body dealing with the rapidly changing, always dynamic world of cybersecurity.  But it goes even further than that.  An effective look at cybersecurity requires recognizing that governments and telcos often have views that are not at all in the best interests of citizens -- and handing off all discussions on "cybersecurity" regulations to such a body seems ripe for abuse in ways that may help governments or telcos, but at the expense of the public and their ability to speak out.<br /><br /><a href="http://www.techdirt.com/articles/20120910/02004020322/do-we-really-want-un-charge-cybersecurity-standards.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120910/02004020322/do-we-really-want-un-charge-cybersecurity-standards.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120910/02004020322/do-we-really-want-un-charge-cybersecurity-standards.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>answer:-no</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120910/02004020322</wfw:commentRss>
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<pubDate>Tue, 10 Jul 2012 10:19:00 PDT</pubDate>
<title>DC Dumps Bill To Force Uber Into High Prices; Complains That The Bill Was To Help Uber</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120710/09531219647/dc-dumps-bill-to-force-uber-into-high-prices-complains-that-bill-was-to-help-uber.shtml</link>
<guid>http://www.techdirt.com/articles/20120710/09531219647/dc-dumps-bill-to-force-uber-into-high-prices-complains-that-bill-was-to-help-uber.shtml</guid>
<description><![CDATA[ Earlier today, we wrote about the city of Washington DC working on a a bill that would require startup car service Uber to charge <a href="http://www.techdirt.com/blog/innovation/articles/20120709/22540419635/dc-seeks-to-legalize-uber-forcing-it-to-be-way-more-expensive-than-cabs.shtml">five times as much</a> as a cab, arguing that they need to regulate what is considered a "premium class."  They don't explain why one needs to regulate what's premium and what's not, but that's what you get in a massively regulated/anti-competitive market.  The public outcry over this regulation, however, has resulted in the Councilmember who wrote the amendment, Mary Cheh, <a href="http://dcist.com/2012/07/cheh_shelves_uber_amendment_after_b.php" target="_blank">backing down and shelving it</a>.
<br /><br />
As we noted in our earlier post, Cheh had said all along that the amendment was actually an attempt to <i>legalize</i> Uber, after a Taxicab Commission "sting" earlier this year, which claimed that Uber was acting illegally.  In response to all of this, Cheh seems upset, since she says that she worked <i>with</i> Uber to create the amendment, and was blindsided by the criticism:
<blockquote><i>
"Several months ago, Uber contacted me and asked to work together to legalize services like Uber in the District... Since then, I have met with Uber many times, negotiated in good faith, and believed that I had reached an agreement with them last week."
</i></blockquote>
Others have suggested that parts of the amendment could be acceptable if they remove the minimum pricing rules.  Uber, for its part, claims that it's always believed the service was legal in DC, so it never believed that the amendment was needed to "make it legal."  For what it's worth Uber clearly has benefited from this fight, as it drew an awful lot of publicity to the company's presence in DC (and elsewhere).  Either way, it seems difficult to see how regulating a high price benefits Uber.
<br /><br />
And, in the end, what you're left with are questions about why taxi licensing needs to be so restrictive and so all-encompassing.  Are there concerns about keeping passengers from being ripped off and keeping them safe?  Sure, but there seem to be ways to deal with that which don't involve entirely regulating every aspect of the market, limiting competition and setting the actual pricing.  But, in the end, as we've seen in <a href="http://www.techdirt.com/articles/20120627/00031719500/why-you-cant-braid-someones-hair-utah-money-without-first-paying-16k.shtml">other markets</a>, those in regulated markets tend to figure out ways to use the regulations to their own advantage...<br /><br /><a href="http://www.techdirt.com/articles/20120710/09531219647/dc-dumps-bill-to-force-uber-into-high-prices-complains-that-bill-was-to-help-uber.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120710/09531219647/dc-dumps-bill-to-force-uber-into-high-prices-complains-that-bill-was-to-help-uber.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120710/09531219647/dc-dumps-bill-to-force-uber-into-high-prices-complains-that-bill-was-to-help-uber.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>regulatory-capture</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120710/09531219647</wfw:commentRss>
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<pubDate>Thu, 5 Jul 2012 11:21:00 PDT</pubDate>
<title>Ron And Rand Paul: Net Neutrality And The Public Domain Are Really Evil Collectivist Plots</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120705/10581919594/ron-rand-paul-net-neutrality-public-domain-are-really-evil-collectivist-plots.shtml</link>
<guid>http://www.techdirt.com/articles/20120705/10581919594/ron-rand-paul-net-neutrality-public-domain-are-really-evil-collectivist-plots.shtml</guid>
<description><![CDATA[ I tend to be a pretty big supporter of free market capitalism and the importance of real property rights (not <a href="http://www.techdirt.com/articles/20120622/14185719439/speak-out-against-copyright-holders-destroying-true-property-rights.shtml">imaginary property rights</a>).  As such, I've always been intrigued by Ron Paul's libertarian stance against big government and excessive regulation.  I think that position is pretty clearly staked out in my writing over the years.  However, I'm perplexed by the <a href="http://www.buzzfeed.com/rosiegray/the-pauls-new-crusade-internet-freedom" target="_blank">new "internet freedom" manifesto from Ron Paul and Rand Paul</a>, which seems like a hodgepodge of poorly thought out concepts -- some of which make sense, and some of which do not.  While I agree about keeping the government out of internet regulations, the document seems to attack many of those who actually agree with the Pauls by setting up ridiculous strawmen.  In particular, the Pauls come out vehemently against both net neutrality as a concept and any effort to expand the public domain -- even though both are really about limiting big government.
<br /><br />
In fact, in a bizarre twist, the Pauls seem to be supporting massive government subsidies and handouts in this document, even as they insist they're not.
<br /><br />
Now, I agree that the whole "net neutrality" debate has been muddled over the years, but it is entirely possible to be <i>for</i> the end-to-end principles of the internet (which is what most people mean by net neutrality) and against bad regulations trying to "force" neutrality on the internet.  But not in the world of the Pauls.  To them, any support of a neutral internet must be about "coercive state actions" and "collective rule" over "privately owned broadband high-speed infrastructure."  This makes me curious if the Pauls spoke out against the billions and billions in subsidies and rights of way grants that the government provided the telcos and cable providers to build their networks.  Once again, I am against regulating net neutrality -- because it's obvious that the telcos will control that process and the regulations will favor them against the public -- but pretending that broadband infrastructure is really "privately owned" when so much of it involved tax-payer-funded subsidies and rights of way is being in denial.
<br /><br />
Then there's the following, where they claim that these evil "collectivists" want to limit "private property rights on the internet" and are saying that "what is considered to be in the public domain should be greatly expanded."  Considering the Pauls were both instrumental in the fight <i>against</i> SOPA and PIPA, you would think that the two of them understood how copyright law is massively abused and how beneficial the public domain is.  But apparently not.  To them it's all part of this "collectivist" plot.  Earth to the Pauls: copyright is a massive government-granted monopoly privilege.  That's the kind of thing we thought you were <i>against</i>, not for.  In this document, you seem to be arguing for one of the largest programs in the world of a centralized government handing out private monopoly privileges.
<br /><br />
There are a few other whoppers in there, including the claim that the groups talking about a "right to privacy" rarely care about it when it comes to government snooping -- and, in fact, support government surveillance and collection of private citizens' internet data.  That's funny, because the very groups that the Pauls appear to be slamming... happen to be the same ones who were <i>central</i> in the fight against CISPA, which was all about the government snooping on our internet activity.
<br /><br />
Frankly, this document is a joke from two people who should know better.  There are some good points in there about limiting government regulation of innovative companies, but when they're supportive of two of the biggest government handouts around -- telco subsidies and copyright -- it's hard to take them seriously when they claim they're for smaller government and about getting the government out of the internet.<br /><br /><a href="http://www.techdirt.com/articles/20120705/10581919594/ron-rand-paul-net-neutrality-public-domain-are-really-evil-collectivist-plots.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120705/10581919594/ron-rand-paul-net-neutrality-public-domain-are-really-evil-collectivist-plots.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120705/10581919594/ron-rand-paul-net-neutrality-public-domain-are-really-evil-collectivist-plots.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>seriously,-now?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120705/10581919594</wfw:commentRss>
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<item>
<pubDate>Wed, 27 Jun 2012 15:51:00 PDT</pubDate>
<title>Why You Can't Braid Someone's Hair In Utah For Money Without First Paying $16k</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120627/00031719500/why-you-cant-braid-someones-hair-utah-money-without-first-paying-16k.shtml</link>
<guid>http://www.techdirt.com/articles/20120627/00031719500/why-you-cant-braid-someones-hair-utah-money-without-first-paying-16k.shtml</guid>
<description><![CDATA[ The common wisdom that you'll often hear is that industries hate regulations, and would prefer deregulation.  And, in certain areas that's definitely true.  But, in others, industries <i>want</i> regulation -- but not for a good reason.  It's because legacy players realize two things: (1) they can often "control" the regulatory process (hello regulatory capture) to twist it to their own advantage and (2) it's a <i>really</i> handy way to limit competition.  We just recently wrote about some of the more ridiculous factors concerning <a href="http://www.techdirt.com/articles/20120619/02280419376/broken-system-einstein-wouldnt-have-been-qualified-to-teach-high-school-physics.shtml">teaching certifications</a>.  Lots of people pushed back in the comments arguing -- correctly -- that just because someone knows something, it doesn't mean they're a good teacher.  But... there's another point that we made in the post that many of those people ignored: just because you "certify" teachers, it doesn't mean they're any better at teaching.  In fact, as our post noted, the research has shown no noticeable difference between certified and uncertified teachers.  So you can make the argument all you want that certification is somehow "needed," but if that certification doesn't seem to help at all, it's wise to at least question the certification process.
<br /><br />
The same Planet Money folks who brought us that story recently did a <a href="http://www.npr.org/blogs/money/2012/06/22/155596305/episode-381-why-its-illegal-to-braid-hair-without-a-license" target="_blank">podcast</a> and a <a href="http://www.nytimes.com/2012/06/17/magazine/so-you-think-you-can-be-a-hair-braider.html?_r=3&#038;ref=magazine&#038;pagewanted=all" target="_blank">NY Times article</a> on another example of regulatory ridiculousness.  This one involved a woman who had built a small business braiding the hair of African children in Utah.  The woman, Jestina Clayton, grew up in Sierra Leone, where she learned to braid hair, and when she ended up in Centerville, Utah, she discovered there was demand there, due to a large number of adopted African children, whose parents had no idea what to do with their hair.  Then, someone threatened to "report" her for practicing "cosmetology" without a license.  She checked it out and discovered that bizarre (but all too common) regulation made that true -- but to get her license she'd have to go to school for two years at a cost of $16,000.  All to braid hair.  And, even more ridiculous, none of the schools taught anything having to do with braiding hair like Clayton did.  It would be a pure waste.
<br /><br />
If you can, you should listen to the Planet Money podcast on this, because they actually get a spokesperson from the "Professional Beauty Association" try to explain why the government <i>must</i> regulate "professional beauty" practitioners before they kill again (well, only slight exaggeration).  She does go on and on about the "consumer safety issues" of the people she's supposedly representing.  My favorite risk?  "Open wounds."  From hair braiding?
<center>
<embed src="http://www.npr.org/v2/?i=155596305&#38;m=155607817&#38;t=audio" height="386" wmode="opaque" allowfullscreen="true" width="400" base="http://www.npr.org" type="application/x-shockwave-flash"></embed>
</center>
<br />
Either way, Clayton went before the (I'm not joking) <em>Barber, Cosmetology/Barber, Esthetics, Electrology and Nail Technology Licensing Board of Utah</em>, to try to convince them to let her braid without a license.  Apparently this became a big issue and "licensed cosmetologists" came out of the woodwork to argue against her -- and her request was denied.
<br /><br />
As the report notes: none of this is to necessarily say that all regulation is bad and that industries don't need some sort of regulation.  But, at the very least, if there is going to be regulation, shouldn't there be some evidence that it's (a) needed and (b) effective?  Because, somehow, I don't think that there's a big risk from a woman braiding some kids' hair in Utah.<br /><br /><a href="http://www.techdirt.com/articles/20120627/00031719500/why-you-cant-braid-someones-hair-utah-money-without-first-paying-16k.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120627/00031719500/why-you-cant-braid-someones-hair-utah-money-without-first-paying-16k.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120627/00031719500/why-you-cant-braid-someones-hair-utah-money-without-first-paying-16k.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>regulatory-control</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120627/00031719500</wfw:commentRss>
</item>
<item>
<pubDate>Thu, 23 Feb 2012 04:01:14 PST</pubDate>
<title>Economist Notices That The US Is Getting Buried Under Costly, Useless Over-Regulation</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120220/05090417813/economist-notices-that-us-is-getting-buried-under-costly-useless-over-regulation.shtml</link>
<guid>http://www.techdirt.com/articles/20120220/05090417813/economist-notices-that-us-is-getting-buried-under-costly-useless-over-regulation.shtml</guid>
<description><![CDATA[ The US is often talked about as a major supporter of the "free market," but as we've seen over and over again what we have is really crony capitalism, with lots of efforts being made to protect certain industries through regulation.  This hasn't gone unnoticed. The Economist has an article more or less <a href="http://www.economist.com/node/21547789" target="_blank">mocking the US for pretending to be all about small government free markets</a>, while really being buried in pointless, confusing and unnecessary regulations:
<blockquote><i>
But red tape in America is no laughing matter. The problem is not the rules that are self-evidently absurd. It is the ones that sound reasonable on their own but impose a huge burden collectively. America is meant to be the home of laissez-faire. Unlike Europeans, whose lives have long been circumscribed by meddling governments and diktats from Brussels, Americans are supposed to be free to choose, for better or for worse. Yet for some time America has been straying from this ideal.
</i></blockquote>
The article points its finger at two key culprits, both of which make sense: politicians who think they can craft perfect legislation to account for every eventuality... and the lobbyists who provide them language to make that possible:
<blockquote><i>
Two forces make American laws too complex. One is hubris. Many lawmakers seem to believe that they can lay down rules to govern every eventuality. Examples range from the merely annoying (eg, a proposed code for nurseries in Colorado that specifies how many crayons each box must contain) to the delusional (eg, the conceit of Dodd-Frank that you can anticipate and ban every nasty trick financiers will dream up in the future). Far from preventing abuses, complexity creates loopholes that the shrewd can abuse with impunity.
<br /><br />
The other force that makes American laws complex is lobbying. The government&#8217;s drive to micromanage so many activities creates a huge incentive for interest groups to push for special favours. When a bill is hundreds of pages long, it is not hard for congressmen to slip in clauses that benefit their chums and campaign donors. The health-care bill included tons of favours for the pushy. Congress&#8217;s last, failed attempt to regulate greenhouse gases was even worse.
</i></blockquote>
These two things are connected, rather than independent, as the article seems to imply.  The first one is the key problem.  To legislators, creating legislation is the only hammer in their toolbox, so they see every issue as a nail, even when that's rarely the case.  And that hubris of being able to create perfect legislation to account for every eventuality is the opening for the lobbyists.  Politicians who want to think through every possibility ask the lobbyists to help -- and the lobbyists then have every opportunity to tilt the playing field to their clients, and against the public interest.  And that's exactly what happens all too often.
<br /><br />
And, of course, if you have any familiarity with these issues, you know that it's incredibly costly:
<blockquote><i>
Complexity costs money. Sarbanes-Oxley, a law aimed at preventing Enron-style frauds, has made it so difficult to list shares on an American stockmarket that firms increasingly look elsewhere or stay private. America&#8217;s share of initial public offerings fell from 67% in 2002 (when Sarbox passed) to 16% last year, despite some benign tweaks to the law. A study for the Small Business Administration, a government body, found that regulations in general add $10,585 in costs per employee. It&#8217;s a wonder the jobless rate isn&#8217;t even higher than it is.
</i></blockquote>
The Economist presents some recommendations on how to fix this.  The first is that every law should have a cost-benefit analysis from "an independent watchdog" rather than the current efforts by the CBO.  I'm not really convinced that will have much of an impact.  We already have CBO estimates, and even if they're not accurate, very few people pay much attention.
<br /><br />
They also suggest "the rules need to be much simpler."  They suggest that it would be "better to lay down broad goals and prescribe only what is strictly necessary to achieve them."  I'm pretty skeptical about this suggestion too.  Vague, broadly drafted language leads to uncertainty, and uncertainty can lead to risks and liability... and fear to do things.  That wouldn't help.  I understand the reasoning here, and if the "broad goals" really are binding, then perhaps this could work somehow, but I think that a better response might be that if the law needs to be so complex, perhaps the law is attacking the wrong issue.
<br /><br />
There is one suggestion that makes sense to me, but I don't think it goes far enough:
<blockquote><i>

 "All big regulations should also come with sunset clauses, so that they expire after, say, ten years unless Congress explicitly re-authorises them."
</i></blockquote>
We should take that much, much further.  First, I don't think it should just be "big regulations."  Let's sunset everything, and force Congress to re-evaluate laws already on the books.  Along those lines, all new laws (and any re-authorizations of old laws) should come with <i>clear and stated metrics</i> that will be used the next time around to determine if the bill was successful.  If the metrics are not met, then the bill <i>should not be allowed to be re-authorized</i> without significant changes.  It seems like rules like that might actually take us in a reasonable direction towards passing effective regulations, rather than the mess that we have today.  It still amazes me that legislation doesn't already come with metrics to determine if they actually do their job.<br /><br /><a href="http://www.techdirt.com/articles/20120220/05090417813/economist-notices-that-us-is-getting-buried-under-costly-useless-over-regulation.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120220/05090417813/economist-notices-that-us-is-getting-buried-under-costly-useless-over-regulation.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120220/05090417813/economist-notices-that-us-is-getting-buried-under-costly-useless-over-regulation.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>not-what-we-need</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120220/05090417813</wfw:commentRss>
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<item>
<pubDate>Tue, 17 Jan 2012 08:38:13 PST</pubDate>
<title>Tim O'Reilly Explains Where The Federal Gov't Has Gone Wrong On SOPA/PIPA: Solving The Wrong Problem</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120116/10031617417/tim-oreilly-explains-where-federal-govt-has-gone-wrong-sopapipa-solving-wrong-problem.shtml</link>
<guid>http://www.techdirt.com/articles/20120116/10031617417/tim-oreilly-explains-where-federal-govt-has-gone-wrong-sopapipa-solving-wrong-problem.shtml</guid>
<description><![CDATA[ A few months back, in going into great detail on <a href="http://www.techdirt.com/articles/20111122/04254316872/definitive-post-why-sopa-protect-ip-are-bad-bad-ideas.shtml">everything wrong</a> with PIPA &#038; SOPA, I started it off by explaining that the whole effort was <i>attacking the wrong problem</i>.  Here's what I wrote at the time:
<blockquote>
That main issue, we're told over and over again, is "piracy" and specifically "rogue" websites.  And, let's be clear: infringement <b>is a problem</b>.  But the question is <i>what kind of problem is it</i>?  Much of the evidence suggests that it's <a href="http://www.techdirt.com/articles/20110308/02354213395/massive-research-report-piracy-emerging-economies-released-debunks-entire-foundation-us-foreign-ip-policy.shtml">not an enforcement problem</a> and it's not a legal problem.  Decades of evidence from around the globe all show the same thing: making copyright law or enforcement stricter <i>does not work</i>.  It does not decrease infringement at all -- and, quite frequently, <a href="http://www.techdirt.com/articles/20111122/06353116873/why-supreme-courts-grokster-decision-led-to-more-not-less-p2p-filesharing.shtml">leads to more infringement</a>.  That's because the reason that there's infringement in the first place is that consumers are <a href="http://www.techdirt.com/articles/20090118/1653083452.shtml">being under-served</a>.  Historically, infringement has never been about "free," but about indicating where <a href="http://www.techdirt.com/articles/20080109/013441.shtml">the business models</a> have not kept up with the technology.
<br /><br />
Thus, the real issue is that this is <b>a business model problem</b>.  As we've seen over and over and over again, those who <a href="http://www.techdirt.com/articles/20091119/1634117011.shtml">embrace</a> what the internet enables, have found themselves to be much better off than they were before.  They're able to build up larger fanbases, and to rely on various new platforms and services to make more money.  
<br /><br />
And, as we've seen with near perfect consistency, the <i>best way</i>, by far, to decrease infringement is to <a href="http://www.techdirt.com/articles/20110718/08554415146/can-innovation-through-business-solve-issues-that-legal-repression-cant.shtml">offer awesome new services</a> that are <i>convenient</i> and useful.  This doesn't mean just offering any old service -- and it certainly doesn't mean trying to limit what users can do with those services.  And, most importantly, it doesn't mean treating consumers like they were criminals and "pirates."  It means constantly <i>improving</i> the consumer experience.  When that consumer experience is great, then people switch in droves.  You can, absolutely, compete with free, and many do so.  If more were able to without restriction, infringement would decrease.  If you look at the two largest contributors to holding back "piracy" lately, it's been Netflix and Spotify.  Those two services alone have been orders of magnitude more successful in decreasing infringement than any new copyright law.  Because they compete by being <i>more convenient</i> and <i>a better experience</i> than infringement.
</blockquote>
Tim O'Reilly (who you should know already), who makes his living <i>in the content business</i>, but has always been against these kinds of ridiculous laws, has come out with a <a href="https://plus.google.com/107033731246200681024/posts/BEDukdz2B1r#107033731246200681024/posts/BEDukdz2B1r" target="_blank">great, detailed discussion of the same issue</a>, concerning how the federal government still has <i>mis-defined</i> the problem.  He's doing this in response to the <a href="http://www.techdirt.com/articles/20120114/09513217409/white-house-comes-out-against-approach-sopapipa-response-to-online-petition.shtml">White House's statement</a> on Saturday, and makes some important points:
<blockquote><i>
I found myself profoundly disturbed by something that seems to me to go to the root of the problem in Washington: the failure to correctly diagnose the problem we are trying to solve, but instead to accept, seemingly uncritically, the claims of various interest groups. The offending paragraph is as follows:
<blockquote>
"Let us be clear&#8212;online piracy is a real problem that harms the American economy, and threatens jobs for significant numbers of middle class workers and hurts some of our nation's most creative and innovative companies and entrepreneurs. It harms everyone from struggling artists to production crews, and from startup social media companies to large movie studios. While we are strongly committed to the vigorous enforcement of intellectual property rights, existing tools are not strong enough to root out the worst online pirates beyond our borders."
</blockquote>
In the entire discussion, I've seen no discussion of credible evidence of this economic harm. There's no question in my mind that piracy exists, that people around the world are enjoying creative content without paying for it, and even that some criminals are profiting by redistributing it. But is there actual economic harm?
</i></blockquote>
From there, he talks about his own experience running a content business, and how he's learned that any actual infringement tends to <i>benefit him</i> in the long run.  That's because, like I explained above, if you put in place a smart business model (something Tim is good at) piracy is no problem at all.  O'Reilly is fond of the phrase that "obscurity is a bigger problem than piracy" and he's completely right:
<blockquote><i>
In my experience at O'Reilly, the losses due to piracy are far outweighed by the benefits of the free flow of information, which makes the world richer, and develops new markets for legitimate content. Most of the people who are downloading unauthorized copies of O'Reilly books would never have paid us for them anyway; meanwhile, hundreds of thousands of others are buying content from us, many of them in countries that we were never able to do business with when our products were not available in digital form.
<br /><br />
History shows us, again and again, that frontiers are lawless places, but that as they get richer and more settled, they join in the rule of law. American publishing, now the largest publishing industry in the world, began with piracy. (I have a post coming on that subject on Monday.)

</i></blockquote>
From there, he starts talking about what the White House <i>should</i> be doing, and it's simple: look for ways to allow innovation to flourish -- not create protectionist plans for industries who aren't keeping up with the times:
<blockquote><i>
Congress (and the White House) need to spend time thinking hard about how best to grow our economy - and that means being careful not to close off the frontier, or to harm those trying to settle it, in order to protect those who want to remain safe at home. British publishers could have come to America in the 19th century; they chose not to, and as a result, we grew our own indigenous publishing industry, which relied at first, in no small part, on pirating British and European works.
<br /><br />
If the goal is really to support jobs and the American economy, internet "protectionism" is not the way to do it.
<br /><br />
It is said (though I've not found the source) that Einstein once remarked that if given 60 minutes to save the world, he would spend 55 of them defining the problem. And defining the problem means collecting and studying real evidence, not the overblown claims of an industry that has fought the introduction of every new technology that has turned out, in the end, to grow their business rather than threaten it.

</i></blockquote>
He also has a final suggestion that may seem unrelated, but is actually directly at issue:
<blockquote><i>
If Congress and the White House really want to fight pirates who are hurting the economy, they should be working to rein in patent trolls. There, the evidence of economic harm is clear, in multi-billion dollar transfers of wealth from companies building real products to those who have learned how to work the patent system while producing no value for consumers.
</i></blockquote>
But, of course, that will never happen.  That's because a totally useless "patent reform bill" passed a few months ago, and Congress and the President now consider that problem "done."  And that's even though nothing in the bill actually addressed the issue of patent trolls, which has been a huge problem, and has hit many of the new businesses that are needed to build the innovations that will help the old guard in the content industry adapt.  Hell, just look at Spotify.  Days after being introduced in the US... it was <a href="http://www.techdirt.com/articles/20110728/00525815296/that-didnt-take-long-spotify-sued-patent-infringement-just-weeks-after-entering-us-market.shtml">sued for infringement</a>.
<br /><br />
So, the real response to the White House should be that it's time to stop making this a faith-based debate.  Let's focus on the actual evidence, and define what the actual problem is.  Because if it's (as all the evidence shows) a business model problem, not a legal or enforcement problem, pushing forth new regulation is not going to be the answer.<br /><br /><a href="http://www.techdirt.com/articles/20120116/10031617417/tim-oreilly-explains-where-federal-govt-has-gone-wrong-sopapipa-solving-wrong-problem.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120116/10031617417/tim-oreilly-explains-where-federal-govt-has-gone-wrong-sopapipa-solving-wrong-problem.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120116/10031617417/tim-oreilly-explains-where-federal-govt-has-gone-wrong-sopapipa-solving-wrong-problem.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>indeed</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120116/10031617417</wfw:commentRss>
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<item>
<pubDate>Tue, 6 Dec 2011 00:07:00 PST</pubDate>
<title>Self-Regulation: Should Online Companies Police The Internet?</title>
<dc:creator>Glyn Moody</dc:creator>
<link>http://www.techdirt.com/articles/20111204/08342016968/self-regulation-should-online-companies-police-internet.shtml</link>
<guid>http://www.techdirt.com/articles/20111204/08342016968/self-regulation-should-online-companies-police-internet.shtml</guid>
<description><![CDATA[ For anyone in Belgium on Wednesday, here's an afternoon event open to all that might be of interest: "<a href="http://selfregulation.tumblr.com/">'Self'-regulation: Should online companies police the internet?</a>"  If you can't make it to the European Parliament in Brussels, there's also a <a href="http://www.barouhandpartners.com/livestream/schaake.htm">live video stream available</a>.
<br /><br />
It turns out that the seminar has an interesting connection with Techdirt.  Back in September, we wrote about a <a href="http://www.techdirt.com/articles/20110919/03081816004/italy-proposes-law-that-will-ban-people-Internet-based-single-accusation-infringement-anyone.shtml">proposed law</a> in Italy that might lead to people losing their Internet connection after just one accusation of unauthorized sharing.   Somebody who noticed this article was Marietje Schaake, the Member of the European Parliament who has organized the seminar to discuss self-regulation.  She even mentioned the fact in a <a href="http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+WQ+E-2011-008794+0+DOC+XML+V0//EN&#038;language=EN">written question to European Commission</a>:
<blockquote><i>
Via the press, it has come to my attention that the Italian Parliament is currently considering a draft law under which Internet users may be disconnected and blacklisted if they have been accused of an intellectual property infringement. The accusation does not necessarily need to originate from the rights holder of the work in question.
<br /><br />
The draft law, as proposed, violates several EC laws and principles, including:
<br /><br />
&mdash; 	Article 1(3a) of the telecoms package, amending Framework Directive 2002/21/EC,
<br />&mdash; 	Article 6 ECHR concerning a fair trial,
<br />&mdash; 	Article 10 ECHR concerning the freedom to seek, receive and impart information,
<br />&mdash; 	the principles of necessity and proportionality, and
<br />&mdash; 	depending on implementation, the intermediary liability exemptions in the e-Commerce Directive 2000/31/EC.
<br /><br />
1. Does the Commission agree that the Italian proposal is in violation of EC laws and principles? If not, why not?
<br /><br />
2. What concrete action will the Commission undertake to put a halt to measures being implemented by Member States whereby citizens may be disconnected from the Internet?
</i></blockquote>
The Commission has now replied [<a href="http://www.europarl.europa.eu/sides/getAllAnswers.do?reference=E-2011-008794&#038;language=EN">pdf</a>], although its answer is not particularly helpful:
<blockquote><i>
The Commission has not yet received the notification of the draft law to which the Honourable Member refers.
</i></blockquote>
However, it does add the following interesting comment: 
<blockquote><i>
limitations of end-users' access and use of electronic communications networks must be subject to adequate procedural safeguards, which ensures that these cannot be enacted on the basis of mere accusations alone.
</i></blockquote>
That provides a clue as to why the copyright industries are so keen for online companies to "police" themselves in Europe: it avoids the need for accusations - or proof - altogether.
<br /><br />
Follow me @glynmoody on <a href="http://twitter.com/glynmoody">Twitter</a> or <a href="http://identi.ca/glynmoody">identi.ca</a>, and on <a href="https://plus.google.com/100647702320088380533">Google+</a><br /><br /><a href="http://www.techdirt.com/articles/20111204/08342016968/self-regulation-should-online-companies-police-internet.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20111204/08342016968/self-regulation-should-online-companies-police-internet.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20111204/08342016968/self-regulation-should-online-companies-police-internet.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>who-needs-evidence?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20111204/08342016968</wfw:commentRss>
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<item>
<pubDate>Tue, 15 Nov 2011 16:07:19 PST</pubDate>
<title>SOPA And Its Broad Regulation Of VPNs, Proxies And Other Important Tools</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20111111/17543116729/sopa-its-broad-regulation-vpns-proxies-other-important-tools.shtml</link>
<guid>http://www.techdirt.com/articles/20111111/17543116729/sopa-its-broad-regulation-vpns-proxies-other-important-tools.shtml</guid>
<description><![CDATA[ There are so many scary parts to SOPA, it's taking some time to pull out all the pieces.  One of the scarier parts of SOPA that isn't found in PROTECT IP, is the addition of a form of an "anti-circumvention" rule, which makes it illegal to try to get around any blockade on the US government's blacklist.  Like the DMCA's dreadful anti-circumvention clause, this one is also vague and overly broad -- and would create problems for all sorts of legal services.  The EFF is <a href="https://www.eff.org/deeplinks/2011/11/hollywood-new-war-on-software-freedom-and-internet-innovation" target="_blank">listing out some perfectly legal services that would suddenly be in legal crosshairs</a>:
<blockquote><i>
In this new bill, Hollywood has expanded its censorship ambitions. No longer content to just blacklist entries in the <a href="https://en.wikipedia.org/wiki/Domain_Name_System">Domain Name System</a>, this version targets software developers and distributors as well. It allows the Attorney General (doing Hollywood or trademark holders' bidding) to go after more or less anyone who provides or offers a product or service that could be used to get around DNS blacklisting orders. This language is clearly aimed at <a href="https://www.mozilla.org">Mozilla</a>, which took a principled stand in <a href="http://boingboing.net/2011/05/05/mozilla-tells-dhs-we.html">refusing to assist</a> the Department of Homeland Security's efforts to censor the domain name system, but we are also concerned that it could affect the open source community, internet innovation, and software freedom more broadly:
<ul>
<li>Do you write or distribute VPN, proxy, privacy or anonymization software? You might have to build in a censorship mechanism &mdash; or find yourself in a legal fight with the United States Attorney General.</li>
<li>Even some of the most fundamental and widely used Internet security software, such as <a href="https://en.wikipedia.org/wiki/Secure_Shell">SSH</a>, includes built-in <a href="https://www.linode.com/wiki/index.php/SSH_Dynamic_Port_Forwarding">proxy functionality</a>.  This kind of software is installed on hundreds of millions of computers, and is an indispensable tool for systems administration professionals, but it could easily become a target for censorship orders under the new bill.
</li><li>Do you work with or distribute <a href="https://www.verisigninc.com/en_US/products-and-services/domain-name-services/grow-your-domain-name-business/analyze/tld-zone-access/index.xhtml">zone files</a> for <a href="http://www.icann.org/en/topics/new-gtlds/zfa-concept-paper-18feb10-en.pdf">gTLDs</a>? Want to keep them accurate? &nbsp;Too bad &mdash; Hollywood might argue that if you provide a complete (i.e., uncensored) list, you are illegally helping people bypass SOPA orders.&nbsp;</li>
<li>Want to write a client-side <a href="https://en.wikipedia.org/wiki/DNSSEC">DNSSEC</a> resolver that uses multiple servers until it finds a valid signed entry? Again, you could be in a fight with the U.S. Attorney General.
</li></ul></i></blockquote>
This is how the Great Firewall of China works as well -- by threatening service providers who don't help block with the idea that they might be liable if they don't figure out "some way" to block things.  Then everyone scrambles to censor well beyond what is required under the law, just to avoid liability.  The end result of this will make the internet significantly less secure.  VPN providers will go out of business or be severely limited.  This is exactly the opposite of the direction we <i>should</i> be moving in.<br /><br /><a href="http://www.techdirt.com/articles/20111111/17543116729/sopa-its-broad-regulation-vpns-proxies-other-important-tools.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20111111/17543116729/sopa-its-broad-regulation-vpns-proxies-other-important-tools.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20111111/17543116729/sopa-its-broad-regulation-vpns-proxies-other-important-tools.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>is-this-what-we-really-want?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20111111/17543116729</wfw:commentRss>
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<item>
<pubDate>Fri, 14 Oct 2011 16:02:00 PDT</pubDate>
<title>Michele Bachmann Comes Out Against PROTECT IP</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20111014/15221616369/michele-bachmann-comes-out-against-protect-ip.shtml</link>
<guid>http://www.techdirt.com/articles/20111014/15221616369/michele-bachmann-comes-out-against-protect-ip.shtml</guid>
<description><![CDATA[ Whatever you might think of Rep. Michele Bachmann, she certainly gets attention, and as a bunch of folks have just sent over, she's just come out against PROTECT IP.  In a letter responding to someone asking her opinion, she stated:
<blockquote><i>
Thank you for taking the time to contact me with your opposition to S. 968, the Preventing Real Online Threats to Economic Creativity and Theft of Intellectual Property (PROTECT IP) Act. As your Representative for the 6th district of Minnesota, your views are very important to me and I appreciate hearing from you.
<br /><br />
While I understand the importance of safeguarding Americans' intellectual property rights, <b>I have serious concerns about government getting involved in regulation of the internet, and about ambiguities in this legislation which could lead to an explosion of destructive, innovation-stalling lawsuits.</b>
</i></blockquote>
This is likely as a result of recent <a href="http://thehill.com/blogs/hillicon-valley/technology/183999-overnight-tech-tea-party-group-slams-online-copyright-bill" target="_blank">Tea Party concerns</a> about the bill as well, since Bachmann is often associated with the Tea Party.
<br /><br />
The interesting bit here is that it certainly sets things up for some more vocal opposition of PROTECT IP.  Supporters of the bill had been arguing that it would just be "the usual suspects" who were against PROTECT IP, and would talk about how they had bipartisan support for the bill.  But we're seeing more and more people in the House begin to express concerns about the bill... and do so on both sides of the aisle.  Intellectual property issues, for better of for worse (and I think, for better) have never been a really partisan issue, and I do hope it stays that way, but Bachmann's opposition puts up another roadblock in place to getting PROTECT IP passed.  We'd heard that the House version of the bill was supposed to drop today... (after a couple months of being told "in the next two weeks"), but then late yesterday heard that it was pushed back again.  It wouldn't be surprising to find out that Bachmann taking a position on it is part of the delay.  At the very least, this is going to mean that PROTECT IP won't be able to sail through as supporters expected, and (most importantly) there is likely to be a lot more public scrutiny of a bill that is nothing but a favor to the MPAA/RIAA.
<br /><br />
In the end it's good news that people elected officials are increasingly realizing that IP issues aren't as simple as has been put forth by the entertainment industry for so long.  The fact that <a href="http://www.techdirt.com/articles/20110907/15472915844/top-entrepreneurs-warn-congress-protect-ip-will-stifle-innovation-hurt-job-growth.shtml"/>entrepreneurs, <a href="http://www.techdirt.com/articles/20110623/11401714827/top-vcs-tell-congress-protect-ip-will-harm-innovation.shtml">venture capitalists</a>, and <a href="http://www.techdirt.com/articles/20110531/13331214491/why-protect-ip-breaks-internet.shtml">top technologists</a> have already vocally expressed their concerns about PROTECT IP hindering innovation, it's nice to see that these voices are starting to be heard.  Maybe, just once, the entertainment industry won't get away with a bill to prop up their failing business models without everyone else just letting it happen.<br /><br /><a href="http://www.techdirt.com/articles/20111014/15221616369/michele-bachmann-comes-out-against-protect-ip.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20111014/15221616369/michele-bachmann-comes-out-against-protect-ip.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20111014/15221616369/michele-bachmann-comes-out-against-protect-ip.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>interesting-developments</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20111014/15221616369</wfw:commentRss>
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<pubDate>Thu, 11 Aug 2011 06:46:30 PDT</pubDate>
<title>The Industrial Governmental Complex Paradox</title>
<dc:creator>Nina Paley</dc:creator>
<link>http://www.techdirt.com/articles/20110729/18534715329/industrial-governmental-complex-paradox.shtml</link>
<guid>http://www.techdirt.com/articles/20110729/18534715329/industrial-governmental-complex-paradox.shtml</guid>
<description><![CDATA[ <a href="http://mimiandeunice.com/2011/07/21/lets-make-more-regulations/"><img width="560px" height="174px" title="Corporate State" src="http://mimiandeunice.com/wp-content/uploads/2011/07/ME_420_CorporateState-640x199.png" alt="" /></a><br /><br /><a href="http://www.techdirt.com/articles/20110729/18534715329/industrial-governmental-complex-paradox.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110729/18534715329/industrial-governmental-complex-paradox.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110729/18534715329/industrial-governmental-complex-paradox.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>foxes-guarding-the-henhouse</slash:department>
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<pubDate>Tue, 12 Jul 2011 19:01:25 PDT</pubDate>
<title>Canada's Failure To Actually Enforce Its Net Neutrality Rules Shows Why Focusing On Regulation Is Missing The Point</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110708/16580515028/canadas-failure-to-actually-enforce-its-net-neutrality-rules-shows-why-focusing-regulation-is-missing-point.shtml</link>
<guid>http://www.techdirt.com/articles/20110708/16580515028/canadas-failure-to-actually-enforce-its-net-neutrality-rules-shows-why-focusing-regulation-is-missing-point.shtml</guid>
<description><![CDATA[ For many, many years we've pointed out that the debate over "network neutrality" in the US was a red herring.  The discussions around net neutrality are really just a symptom of the real problem: that we <a href="http://www.techdirt.com/articles/20051028/1128249.shtml">lack true competition</a> in the broadband market.  Furthermore, we've noted that any attempt to put in place net neutrality regulations would likely <a href="http://www.techdirt.com/articles/20081112/0121062806.shtml">be a failure</a>, because of the lobbying clout of the likes of AT&#038;T and others. The end result would be incredibly favorable to the telcos, not to the public and, in fact, we've seen <a href="http://www.techdirt.com/articles/20101220/22311012351/as-expected-fcc-approving-net-neutrality-rules-that-att-wants.shtml">glimpses</a> of that happening already.
<br /><br />
Adding another datapoint (or, several) to this debate is Michael Geist, who got access to information about how Canadian regulators enforced that country's net neutrality rules and discovered <a href="http://www.michaelgeist.ca/content/view/5918/159/" target="_blank">that regulators there basically don't enforce a damn thing</a>.  They more or less let the telcos do what they want.
<blockquote><i>
Although the CRTC has not publicly disclosed details on net neutrality complaints and the resulting investigations, I recently filed an Access to Information request to learn more about what has been taking place behind the scenes. A review of hundreds of pages of documents discloses that virtually all major Canadian ISPs have been the target of complaints, but there have been few, if any, consequences arising from the complaints process. In fact, the CRTC has frequently dismissed complaints as being outside of the scope of the policy, lacking in evidence, or sided with Internet provider practices. Rogers Communications has been the target of nearly half of all cases opened in response to net neutrality complaints. In recent months, there have been multiple complaints arising from bandwidth throttling of World of Warcraft, a popular multi-player online game. Rogers initially denied any wrongdoing, only to later acknowledge that there was a problem. The company promised to address the issue, though no consequences arose and it was not forced to publicly disclose the issue.
</i></blockquote>
Once again, the problem is not with net neutrality, but with a lack of competition.  If you had real competition, people would <i>choose</i> to go with more neutral providers, forcing the market to follow.  It's the lack of competition that lets telcos push for less than neutral solutions, and it's the regulatory capture that makes any attempt to legislate neutrality next to useless.<br /><br /><a href="http://www.techdirt.com/articles/20110708/16580515028/canadas-failure-to-actually-enforce-its-net-neutrality-rules-shows-why-focusing-regulation-is-missing-point.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110708/16580515028/canadas-failure-to-actually-enforce-its-net-neutrality-rules-shows-why-focusing-regulation-is-missing-point.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110708/16580515028/canadas-failure-to-actually-enforce-its-net-neutrality-rules-shows-why-focusing-regulation-is-missing-point.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>competition-is-the-thing</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110708/16580515028</wfw:commentRss>
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<pubDate>Thu, 9 Jun 2011 22:06:00 PDT</pubDate>
<title>Why Propping Up Old Business Models Is Bad For The Economy And Bad For Innovation</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110606/21170514572/why-propping-up-old-business-models-is-bad-economy-bad-innovation.shtml</link>
<guid>http://www.techdirt.com/articles/20110606/21170514572/why-propping-up-old-business-models-is-bad-economy-bad-innovation.shtml</guid>
<description><![CDATA[ Certainly a common enough theme around these parts is the effort of old companies with legacy business models to do everything in their power (often through regulatory capture and other political tricks) to retain their market position by regulating in a specific way.  This means regulations that empower legacy firms specifically, or by outlawing and/or limiting disruptive upstarts.  All too often, these firms succeed in convincing politicians (and even the press and some portion of the public) that their own potential failures mean the failure of a larger industry as a whole.  And yet, that's almost never the case.  In fact, the protectionism often does the exact opposite of that, in that it prevents the necessary innovations from flourishing, thereby limiting an industry and, at times, making it uncompetitive with other industries in other countries.
<br /><br />
A recent Planet Money episode discussed this in talking to economist Tim Harford about his new book, <a href="http://books.google.com/books?id=a-INj4-rzpYC&#038;printsec=frontcover&#038;dq=adapt+tim+harford&#038;hl=en&#038;ei=3aLtTaaOJYr50gHEhqzhBw&#038;sa=X&#038;oi=book_result&#038;ct=result&#038;resnum=1&#038;ved=0CCoQ6AEwAA#v=onepage&#038;q&#038;f=false" target="_blank"><i>Adapt</i></a>, which talks about <a href="http://www.npr.org/blogs/money/2011/06/06/136927035/the-failure-tour-of-new-york" target="_blank">how important failure is for economic growth and innovation</a>.  This should intuitively make sense for many regular Techdirt readers, since we make this point, in a different manner, quite frequently.
<br /><br />
In the Planet Money episode, they do a "walking tour of failure in New York," looking at things like the Gutenberg bible, which many credit with kicking off a revolution in printing, but was a giant commercial failure for Johannes Gutenberg, who put up the money for it, but couldn't find the buyers (yes, for the first printed edition of the best selling book of all time).  Elsewhere, they talk about the failure of Woolworth, which had been an early retail <i>innovator</i>, being one of the first retailers to realize that putting goods out where customers could see them and touch them, rather than cramming it all behind a counter, was a good idea.  But, eventually, others out-innovated Woolworth as well.  In many ways, this reminds me of the book <a href="http://www.techdirt.com/articles/20100912/22380510974/why-imitation-gets-a-bad-rap-and-why-companies-need-to-be-more-serious-about-copying.shtml"><i>Copycats</i></a> by Oded Shenkar, which we spoke about last year and which had plenty of similar stories.
<br /><br />
Some of the discussion also reminded me of our discussion on the series of economic studies that have shown that people changing jobs is often a key indicator of <a href="http://www.techdirt.com/articles/20071204/005038.shtml">economic growth</a> because it helps the spread of ideas and innovations faster across the economy.  While that might not seem to directly impact the question of "failure," Harford mentions the <a href="http://www.nber.org/authors/randall_morck" target="_blank">research</a> of economist <a href="http://www.business.ualberta.ca/RandallMorck.aspx" target="_blank">Randall Morck</a>, who found that (and I'm paraphrasing from Harford's brief summary of Morck's work) in places where there is greater turnover of big companies failing and upstarts taking their place, there is greater economic growth.  I have to admit being unaware of Morck's work previously, but now have it on my list to dig in and check it out.  I can definitely see a connection here.
<br /><br />
Big companies often get stagnant, focusing less on innovation and more on protecting a market.  In the <a href="http://www.techdirt.com/articles/20091116/2307256958.shtml">Clayton Christensen world of the Innovator's Dilemma</a>, they focus on incremental innovations and market protectionism.  And, as Andy Kessler noted in his most recent book, the innovators, who get around those things and <a href="http://www.techdirt.com/articles/20110130/00441512884/entrepreneurs-who-create-value-vs-entrepreneurs-who-lock-up-value.shtml">unleash value</a>, are often derided as thieves and criminals for undermining established business models.  But what comes out of those upstart efforts is, generally, much better for the consumer.  And, on top of that, the collapse of those big firms often allows many of the folks, who did have good ideas and knowledge within those firms, to spread out and to join the more innovative upstarts, which will actually implement and execute on those good ideas, rather than be stymied by bosses who don't want to undercut the old business models.
<br /><br />
This is why we should always be wary of efforts by politicians to protect jobs, companies, industries and business models.  These efforts may come from a reasonable place -- in the belief that it's for the best to "protect" such a large company.  But history has shown over and over again the value of creative destruction and disruptive innovation.  While it may take down old legacy players, what rises in its place is almost always better for everyone.<br /><br /><a href="http://www.techdirt.com/articles/20110606/21170514572/why-propping-up-old-business-models-is-bad-economy-bad-innovation.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110606/21170514572/why-propping-up-old-business-models-is-bad-economy-bad-innovation.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110606/21170514572/why-propping-up-old-business-models-is-bad-economy-bad-innovation.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>too-big-to-fail?</slash:department>
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<pubDate>Thu, 9 Jun 2011 08:13:00 PDT</pubDate>
<title>Copyright Czar Agrees That The Gov't Should Let Business Models Decide Winners, Rather Than Legislation</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110608/10373814613/copyright-czar-agrees-that-govt-should-let-business-models-decide-winners-rather-than-legislation.shtml</link>
<guid>http://www.techdirt.com/articles/20110608/10373814613/copyright-czar-agrees-that-govt-should-let-business-models-decide-winners-rather-than-legislation.shtml</guid>
<description><![CDATA[ While I certainly have my disagreements on a variety of points with US Intellectual Property Enforcement Coordinator Victoria Espinel, I will say that she's always been open to talking about the issues (unlike many others).  She's also worked hard to really listen to people on all sides of the debate around intellectual property, and from what I can tell, take most of their opinions quite seriously, rather than just brushing them off.  While I disagree with where she's ended up on an awful lot of issues, I respect her willingness to listen, and still have high hopes that she's coming around to realizing that strict enforcement often isn't the best answer.  In the past, she's specifically reached out to us to discuss different business models and different ways that people can make money without relying on intellectual property, and it appears that she's been thinking even more about that lately.  In a talk at the World Copyright Summit in Brussels, she made it clear that a lot of the issues <a href="http://www.reuters.com/article/2011/06/08/us-usa-intellectualproperty-idUSTRE7573AW20110608">can be taken care of through business model innovation</a>, rather than legislation:
<blockquote><i>
"The U.S. government doesn't need to pick winners and losers and the last thing we should think about doing is messing up the Internet with inappropriate regulation," she told the World Copyright Summit in Brussels.
</i></blockquote>
She also talked up the value of new services, including various "cloud" services from Amazon, Google and Apple (which is interesting, since the record labels still seem to be hinting that Amazon and Google's services may not be legal, in their minds).
<br><br>
So, kudos to Espinel for making such a statement.
<br><br>
That said, it would be nice if we could see a bit more walking the walk, beyond just talking the talk.  Espinel has certainly had a role to play in the PROTECT IP Act, which many people are warning could <a href="http://www.techdirt.com/articles/20110531/13331214491/why-protect-ip-breaks-internet.shtml">"mess up the internet,"</a> through its messing with DNS.  On top of that, Espinel was also the driving force behind the new bill we recently spoke about that could make <a href="http://www.techdirt.com/articles/20110601/01515014500/senators-want-to-put-people-jail-embedding-youtube-videos.shtml">embedding and linking to infringing material a felony</a> by extending the coverage of criminal copyright law to include "public performances."  This sort of law does lead to the government picking winners and losers, and is totally unnecessary.
<br><br>
The focus really should be on encouraging the embrace of new business models, rather than ramping up enforcement.  The recent <A href="http://www.techdirt.com/articles/20110308/02354213395/massive-research-report-piracy-emerging-economies-released-debunks-entire-foundation-us-foreign-ip-policy.shtml">SSRC study</a> highlighted clearly the fallacy of ramping up enforcement as a means of dealing with infringement, as it simply doesn't work and has massive unintended consequences.  Hopefully, Espinel will begin moving away from pushing new legislation like these recent efforts, and really will focus on helping content creators and others in the industry to move towards smart new business models instead.<br /><br /><a href="http://www.techdirt.com/articles/20110608/10373814613/copyright-czar-agrees-that-govt-should-let-business-models-decide-winners-rather-than-legislation.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110608/10373814613/copyright-czar-agrees-that-govt-should-let-business-models-decide-winners-rather-than-legislation.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110608/10373814613/copyright-czar-agrees-that-govt-should-let-business-models-decide-winners-rather-than-legislation.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>time-to-walk-the-walk</slash:department>
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<pubDate>Wed, 12 Jan 2011 22:19:30 PST</pubDate>
<title>Hungarian Media Puts Up Blank Pages To Protest Censorship Bill</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110112/10363712639/hungarian-media-puts-up-blank-pages-to-protest-censorship-bill.shtml</link>
<guid>http://www.techdirt.com/articles/20110112/10363712639/hungarian-media-puts-up-blank-pages-to-protest-censorship-bill.shtml</guid>
<description><![CDATA[ We noted that some media publications in Hungary were considering a <a href="http://www.techdirt.com/articles/20110103/15511912501/civil-liberties-groups-worried-about-hungarian-media-censorship-just-as-hungary-takes-over-eu-presidency.shtml">"media blackout"</a> to protest new laws that would greatly increase government control over the media, by forcing the media to reveal sources and threatening fines if the government felt that coverage wasn't "balanced."  While we doubted that such a protest would have much of an impact, it does appear that many of the major media properties <a href="http://www.bbc.co.uk/news/world-europe-11899075" target="_blank">put up blank pages on their websites</a> to protest the law.  And now we'll see whether or not it has any impact at all...<br /><br /><a href="http://www.techdirt.com/articles/20110112/10363712639/hungarian-media-puts-up-blank-pages-to-protest-censorship-bill.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110112/10363712639/hungarian-media-puts-up-blank-pages-to-protest-censorship-bill.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110112/10363712639/hungarian-media-puts-up-blank-pages-to-protest-censorship-bill.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>good-for-them</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110112/10363712639</wfw:commentRss>
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<pubDate>Mon, 30 Aug 2010 16:37:01 PDT</pubDate>
<title>How Involved Should The Government Be In Protecting Online Privacy?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100830/12504810825.shtml</link>
<guid>http://www.techdirt.com/articles/20100830/12504810825.shtml</guid>
<description><![CDATA[ The Economist is having one of its regular debates, this time on the question of <a href="http://www.economist.com/debate/overview/181/Online%20privacy" target="_blank">whether or not governments should do more to protect online privacy</a>.  Speaking for the motion that government should do more is Marc Rotenberg of EPIC, while arguing that there are better ways to protect your privacy than expecting your government to help you is Jim Harper from the Cato Institute.  Right now more people are siding with Rotenberg, but it seems like a classic "oh, somebody has to protect me!" sort of response.  Harper's arguments make a lot more sense to me, with the key point being: <i>do you really trust the government to protect your privacy</i>?
<blockquote><i>
The American government, like others around the world, is a voracious information collector. It facilitates and promotes private-sector tracking and surveillance. It skirts and sometimes violates laws intended to restrain its snooping, and it cannot be held accountable when it does.
<br /><br />
This does not seem like the kind of institution one would turn to for privacy protection. "Independent privacy agencies" and government bodies like the tiny, well-meaning American Federal Trade Commission do not tip the balance the other way. 
</i></blockquote>
Rotenberg responds that individuals really can't do much in response, and uses the example of Google Buzz's privacy screwup as an example.  But, the response to that sort of proves Harper's point rather than Rotenberg's.  Right after Google screwed up with the Buzz launch, in a manner that caused serious privacy concerns, the public and the press responded within hours, calling out Google for what it had done, and forcing Google to backtrack almost immediately and admit that it had screwed up.  What more could the government have done?  If it was solely up to the government, there would have been a months (years?) long investigation, and finally some sort of wrist-slap and a fine.  The public response to Google's misstep and the concerns that raised among many people about their privacy in using Google seemed to function fine, and should (one hopes) cause Google to think a lot more carefully before making a similar mistake in the future.
<br /><br />
Either way, as with all of the Economist's debates, there's a lot of interesting discussion going on, not just between the two main participants, but in the discussion section as well.<br /><br /><a href="http://www.techdirt.com/articles/20100830/12504810825.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100830/12504810825.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100830/12504810825.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>hands-on,-hands-off</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100830/12504810825</wfw:commentRss>
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<pubDate>Mon, 27 Apr 2009 17:07:00 PDT</pubDate>
<title>Just Because A Site Has A Privacy Policy, Doesn't Mean It Will Keep Your Data Private</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090427/0154474659.shtml</link>
<guid>http://www.techdirt.com/articles/20090427/0154474659.shtml</guid>
<description><![CDATA[ Last week there was a fair amount of coverage of the fact that Canadian regulatory agency, CRTC, had <a href="http://www.dslreports.com/shownews/CRTC-Posts-Private-Data-To-Public-Website-102075" target="_new">revealed private data on its website</a>.  That story, by itself, is interesting enough, but the followup from the CRTC was even more interesting.  It claimed that since the CRTC's <a href="http://www.crtc.gc.ca/eng/copyright.htm#Privacy" target="_new">privacy policy</a> stated that any data you gave it was a part of the public record, it was fine:
<blockquote><i>
Note that all information you provide as part of a public process, except information granted confidentiality, whether sent by postal mail, facsimile, e-mail or through the Commission's website at www.crtc.gc.ca, becomes part of a publicly accessible file and will be posted on the Commission's website. This information includes your personal information, such as your full name, e-mail address, postal/street address, telephone and facsimile number(s), and any other personal information you provide.
</i></blockquote>
Fair enough, right?  After all, the privacy policy states right out that the data will be revealed.  Except... as we've noted in the past, most people falsely believe that if a site has <i>any</i> privacy policy, it <a href="http://www.techdirt.com/articles/20030625/0158245.shtml">means</a> their data will be safe.  This situation highlights this exactly.  Most people assumed that the existence of a privacy policy itself meant the data would be kept private -- even though the policy itself says otherwise.  Most people never bother to read the policy, and assume privacy policy = privacy.  The truth, of course, was that the CRTC's "privacy policy" was actually a "non-privacy policy," but most people had no idea.<br /><br /><a href="http://www.techdirt.com/articles/20090427/0154474659.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090427/0154474659.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090427/0154474659.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>that's-how-it-works</slash:department>
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<pubDate>Wed, 25 Mar 2009 19:22:00 PDT</pubDate>
<title>Can Technology Solve The Privacy Questions Around Behavioral Advertising?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090324/0915334232.shtml</link>
<guid>http://www.techdirt.com/articles/20090324/0915334232.shtml</guid>
<description><![CDATA[ Jim Harper makes a really good point as there's a growing clamor for regulators to step in and legislate around online privacy concerning things like behavioral targeting of advertisements.  Before we rush into new laws, let's see if <a href="http://techliberation.com/2009/03/19/chris-sogohians-cool-opt-out-plugin/" target="_new">technology can solve the problems</a>, such as Chris Soghoian's new tool to let users add a browser extension that <a href="http://www.pcworld.com/businesscenter/article/161380/browser_addon_locks_out_targeted_advertising.html" target="_new">let's them block out all targeted advertising cookies</a>.  That doesn't necessarily solve the issue with ISPs selling clickstream tracking, but it does suggest that technology may do a decent job protecting against some of these issues.<br /><br /><a href="http://www.techdirt.com/articles/20090324/0915334232.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090324/0915334232.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090324/0915334232.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>beats-regulations</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090324/0915334232</wfw:commentRss>
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<pubDate>Wed, 28 Jan 2009 10:46:47 PST</pubDate>
<title>Cox Gets Aggressive With Traffic Shaping</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090128/0123343551.shtml</link>
<guid>http://www.techdirt.com/articles/20090128/0123343551.shtml</guid>
<description><![CDATA[ In a move that's basically baiting the FCC and Congress to see if they will act, Cox has announced that it's going to <a href="http://hosted.ap.org/dynamic/stories/T/TEC_COX_INTERNET?SITE=CADIU&#038;SECTION=HOME&#038;TEMPLATE=DEFAULT" target="_new">experiment with rather aggressive traffic shaping</a>, granting priority to bits that <i>it</i> feels have a great priority.  Why Cox gets to describe what gets a priority and what doesn't seems pretty questionable.  Cox is also the company that implemented a <a href="http://www.techdirt.com/articles/20080930/1929162419.shtml">three strikes policy</a> on file sharing without telling anyone.
<br /><br />
To be honest, this seems like a really tone deaf move by Cox -- and I'd imagine that plenty of telcos and cable companies are pissed off about Cox calling extra attention to the topic right now.  There's been plenty of talk of new net neutrality regulations in Congress, and with Cox putting the issue so squarely on the table, it's as if they're begging for such regulations (or at least to be slapped down by the FCC).  You would think they would at least wait until it wasn't an issue getting so much attention before drawing extra scrutiny and daring regulators to act.<br /><br /><a href="http://www.techdirt.com/articles/20090128/0123343551.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090128/0123343551.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090128/0123343551.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>taunting-the-fcc</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090128/0123343551</wfw:commentRss>
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<pubDate>Mon, 26 Jan 2009 13:54:00 PST</pubDate>
<title>Pilot Program To Educate Judges On Patent Issues Really Depends On Who's Doing The Educating...</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090124/1334173521.shtml</link>
<guid>http://www.techdirt.com/articles/20090124/1334173521.shtml</guid>
<description><![CDATA[ It looks like attempts at patent reform this year may come in small pieces, rather than a big comprehensive plan.  For example, Rep. Adam Schiff and Rep. Darrell Issa have reintroduced some new legislation that would create a pilot program to enroll certain judges in a program to <a href="http://news.cnet.com/8301-13578_3-10149347-38.html?part=rss&#038;subj=news&#038;tag=2547-1_3-0-20" target="_new">educate them on patent issues</a>.  On the face of it, this <i>sounds good</i>.  After all, more education on issues related to patents seems like it should help avoid some of the more ridiculous outcomes we've seen in patent courts in the past.  So, it's no surprise that some are <a href="http://techliberation.com/2009/01/23/pilot-program-to-improve-patent-litigation/ target="_new">excited</a> about this proposed program.
<br /><br />
However, just as when similar legislation was introduced in the past, I'm <a href="http://techdirt.com/articles/20060519/1548229.shtml">worried</a> about unintended consequences.  Specifically, there's a big question in terms of who is going to be doing this "educating" and what the "curriculum" will entail.  After all, when a specialized patent court, the CAFC, was first created, even though not all judges involved were patent lawyers, those who had less experience simply deferred on many issues to those who came from that world -- and, as we've seen too often, patent attorneys view the world <a href="http://www.techdirt.com/articles/20090114/0831213405.shtml">differently</a> than many technologists -- and seem to think that patents are <a href="http://www.techdirt.com/articles/20090115/0534153420.shtml">the answer</a> to many questions.  So, if the "education" program simply comes from patent attorneys, then the end result could be much, much worse, because judges will have been taught only one side of the issue.  That would be very troubling.
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</center><br /><br /><a href="http://www.techdirt.com/articles/20090124/1334173521.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090124/1334173521.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090124/1334173521.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>pros-and-cons</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090124/1334173521</wfw:commentRss>
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<pubDate>Thu, 20 Nov 2008 20:10:00 PST</pubDate>
<title>Canadian Regulators Say Bell Canada's DSL Throttling Is Fine</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20081120/1226482903.shtml</link>
<guid>http://www.techdirt.com/articles/20081120/1226482903.shtml</guid>
<description><![CDATA[ Earlier this year, you may recall that Bell Canada started <a href="http://www.techdirt.com/articles/20080324/152928636.shtml">traffic shaping its DSL</a> even at the wholesale level -- and did so without bothering to tell any of its resellers.  That meant that various resellers of Bell Canada, which had promised customers an open network, were suddenly lying, without even knowing it.  These reseller ISPs protested, and Bell Canada responded by telling them to <a href="http://www.techdirt.com/articles/20080325/155924648.shtml">shut up and deal</a> with it.  The other ISPs protested to Canadian regulators who have now <a href="http://www.dslreports.com/shownews/CRTC-Rules-Against-Indie-ISPs-In-Throttling-Dispute-99206" target="_new">sided with Bell Canada</a>, claiming that the traffic shaping is not discriminatory, because it impacts all reseller ISPs the same way.  Of course, that's not the type of <i>discrimination</i> the ISPs were complaining about...
<br /><br />
The whole thing does seem quite questionable, as Bell Canada effectively changed the terms by which it provided service to its reseller ISPs, without any notification, let alone negotiation.  Yet, because Bell Canada is effectively a monopoly as a provider of DSL, the ISPs have no competitive options to which they can turn.  It sounds like the regulators could be convinced to examine other aspects of Bell Canada's traffic shaping plans, but for now, it's given the go-ahead on having them force all resellers to provide traffic-shaped DSL, even if they had promised not to traffic shape.<br /><br /><a href="http://www.techdirt.com/articles/20081120/1226482903.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20081120/1226482903.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20081120/1226482903.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>sorta-misses-the-point,-though</slash:department>
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