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<title>Techdirt. Stories filed under &quot;regulations&quot;</title>
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<image><title>Techdirt. Stories filed under &quot;regulations&quot;</title><url>http://www.techdirt.com/images/td-88x31.gif</url><link>http://www.techdirt.com/</link></image>
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<pubDate>Tue, 21 May 2013 13:04:00 PDT</pubDate>
<title>NYC Says Renting Out Your Place Via Airbnb Is Running An Illegal Hotel</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20130521/12175523157/nyc-says-renting-out-your-place-via-airbnb-is-running-illegal-hotel.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20130521/12175523157/nyc-says-renting-out-your-place-via-airbnb-is-running-illegal-hotel.shtml</guid>
<description><![CDATA[ We've seen this over and over again: new and innovative startups enter a market in a creative and compelling way, and a combination of incumbents and regulators get in the way of something cool happening.  Perhaps the most well known recent example of this is with <a href="http://www.techdirt.com/blog/?company=uber">Uber</a>, but probably a close second is Airbnb.  Airbnb is the immensely popular system for letting people rent out their homes/apartments/spare rooms to willing guests for (usually) short stays.  Completely coincidentally, just this morning, I tried Airbnb for the very first time, trying to book a stay in Manhattan for an upcoming trip.  And... soon after I submitted my request, I saw this report that officials in New York City have <a href="http://news.cnet.com/8301-1023_3-57585377-93/ny-official-airbnb-stay-illegal-host-fined-%242400/" target="_blank">deemed Airbnb to violate the city's "illegal hotel law."</a>  Basically, they're arguing that people renting out their homes are running illegal hotels.  They originally asked the guy who rented his condo out to pay $7,000 for both violating that law and for zoning and building code violations, but then dropped the latter part, and lowered the fine to $2,400 for just the hotel part.
<br /><br />
Of course, laws like the illegal hotel law are supposed to be about public safety, and to maintain certain health and safety standards.  But, the reality is that, like so much regulation these days, it's turned into a way to <a href="http://www.techdirt.com/articles/20120627/00031719500/why-you-cant-braid-someones-hair-utah-money-without-first-paying-16k.shtml">keep competition out</a>.  Laws to protect hotel visitors certainly made some amount of sense in the past, but most of the reasons why they're in place don't necessarily apply to the way Airbnb functions.  Because we can now share information pretty easily, Airbnb's detailed review system and communication process take away most of the "risk" that necessitated a health and safety law.
<br /><br />
Just as an example, in my own search for a place to stay, I went through about half a dozen different apartments that were available, and looked over the pictures and carefully read the reviews.  I immediately discounted the cheapest one, because multiple reviews mentioned that the apartment had not been cleaned prior to them showing up.  Information and the sharing of information made that place undesirable just like that.  No laws needed.  I also emailed back and forth with a few other apartment/condo owners to find out some details about their places, before finally selecting one that worked for me.  Honestly, the experience has been awesome so far, giving me much greater choice, and the likelihood of a much nicer stay than in a hotel.
<br /><br />
The new ruling doesn't suddenly make Airbnb itself "illegal," but does suggest that if the city finds out that you're using the service, you could face stiff fines.  At the heart of the issue is a really stupid law that was basically designed to make Airbnb impossible: it says you <a href="http://www.crainsnewyork.com/article/20130512/TECHNOLOGY/305129987" target="_blankl">can't rent out your place for less than 29 days</a>.  The only purpose of this law is to protect hotels from competition.  The backer of the law claims that it was really about landlords illegally converting residential buildings into hotels, but if that was the case, they should have made the bill a lot clearer, because it's being used to punish this Airbnb user.  Airbnb, which tried to intervene in the case, is (quite reasonably) disappointed:
<blockquote><i>
This decision runs contrary to the stated intention and the plain text of New York law, so obviously we are disappointed. But more importantly, this decision makes it even more critical that New York law be clarified to make sure regular New Yorkers can occasionally rent out their own homes. There is universal agreement that occasional hosts like Nigel Warren were not the target of the 2010 law, but that agreement provides little comfort to the handful of people, like Nigel, who find themselves targeted by overzealous enforcement officials. It is time to fix this law and protect hosts who occasionally rent out their own homes. Eighty-seven percent of Airbnb hosts in New York list just a home they live in -- they are average New Yorkers trying to make ends meet, not illegal hotels that should be subject to the 2010 law.
</i></blockquote>
As the reports note, this doesn't mean that the city will now be going after the tens of thousands of residents who rent their places out on Airbnb, but if complaints are filed, it can go after them.  Hopefully, this doesn't scare off the person whose house I just requested... But, more importantly, this shows, yet again, why bad regulations can do serious harm to innovation, often while serving to protect less innovative incumbents.<br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20130521/12175523157/nyc-says-renting-out-your-place-via-airbnb-is-running-illegal-hotel.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20130521/12175523157/nyc-says-renting-out-your-place-via-airbnb-is-running-illegal-hotel.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20130521/12175523157/nyc-says-renting-out-your-place-via-airbnb-is-running-illegal-hotel.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>stifling-innovation</slash:department>
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<pubDate>Tue, 14 May 2013 10:44:00 PDT</pubDate>
<title>DOJ's History Of Ignoring The Rules When Getting Phone Records Of Journalists</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130514/01190323076/dojs-history-ignoring-rules-when-getting-phone-records-journalists.shtml</link>
<guid>http://www.techdirt.com/articles/20130514/01190323076/dojs-history-ignoring-rules-when-getting-phone-records-journalists.shtml</guid>
<description><![CDATA[ There was, of course, plenty of talk about the DOJ getting two months of <a href="http://www.techdirt.com/articles/20130513/15401423065/doj-unconcerned-about-constitution-obtained-ap-reporters-phone-records.shtml">phone records</a> concerning calls involving some reporters.  Since the original story came out, reporters have quickly deduced <a href="http://www.huffingtonpost.com/2013/05/13/ap-phone-records-doj-leaks_n_3268932.html" target="_blank">what the government was after</a>: they were trying to figure out who leaked information about the CIA <a href="http://usatoday30.usatoday.com/news/washington/story/2012-05-07/al-qaeda-bomb-plot-foiled/54811054/1" target="_blank">stopping a plane bombing plot</a>, because the "would be bomber" was actually working for the US, and revealing the news apparently ended the work early.  The DOJ going batshit insane over a leak to the press is, unfortunately, par for the course for the Obama administration, which has been ridiculously <a href="http://www.techdirt.com/articles/20110702/00451614941/latest-attempt-obama-administration-to-punish-whistleblowers.shtml">aggressive</a> (to an unprecedented level) in going after anyone who leaks to the press.
<br /><br />
And while some are still trying to argue that this is a <a href="http://www.volokh.com/2013/05/13/the-non-story-of-the-ap-phone-records-at-least-so-far/" target="_blank">non-story</a>, what may be more important is pointing out what a complete bullshit response the DOJ gave to this whole thing:
<blockquote><i>
Despite the seizure of the phone records, a Justice Department spokesman said the agency valued freedom of the press and was &#8220;always careful and deliberative in seeking to strike the right balance between the public interest in the free flow of information and the public interest in the fair and effective administration of our criminal laws.&#8221;
</i></blockquote>
The "right balance"?  Well, let's take a look about how "always careful and deliberative" the DOJ is on these kinds of things.  Julian Sanchez <a href="https://twitter.com/normative/status/334117349852606464" target="_blank">helpfully points us</a> to the infamous 2010 report from the DOJ's Inspector General <a href="http://www.justice.gov/oig/special/s1001r.pdf" target="_blank">detailing how the FBI regularly abused "exigent letters"</a> (pdf) -- better known as National Security Letters or NSLs -- to get phone records.  This report got <a href="http://www.techdirt.com/articles/20100119/0339467809.shtml">plenty of attention</a> at the time, but if you don't recall all 300 pages of it, there's a discussion about getting info from reporters' call logs starting on page 89 (of the official pagination, which falls on page 102 of the pdf) detailing heavily redacted examples of getting reporters' phone records without getting the proper authorization or approvals.  What is striking is the extremely cavalier attitude law enforcement seems to have about this.  Here is just one example of the DOJ's "always careful and deliberative process" when "seeking to strike the right balance" in getting access to reporters' phone records.  This case was an investigation into a leak that appeared in articles in the NY Times and the Washington Post.  The full story is much longer, but here are the key points:
<blockquote><i>
On November 5, [redacted], the case agent sent an e-mail asking another Special Agent in the [redacted] Field Office to inquire, in the other agent's capacity as his squad's liaison to the CAU, whether the on-site communications service providers could obtain telephone toll records of U.S. persons making [redacted] calls [redacted].  The case agent's November 5 e-mail listed 12 [redacted] telephone numbers, 8 of which were identified in the e-mail as belonging to Washington Post reporters [redacted] and Washington Post researcher [redacted] and New York Times reporters [redacted]  The email identified a 7-month period -- a few months before and a few months after the published articles -- as the time period of interest for the leak investigation.
<br /><br />
[....] However, in absence of any request from the case agent or anyone in the FBI, the CAU SSA <b>issued an exigent letter</b> dated December 17, [redacted], to Company A for telephone records of the reporters and others listed in the case agent's November 5, [redacted], e-mail.  We determined that the SSA did this <b>without further discussion with the case agent or the Special Agent who had asked only whether such records could be obtained through on-site providers, not that the records should be obtained</b>.
<br /><br />
The CAU SSA's exigent letter sought records on nine telephone numbers, seven of which were identified in the e-mail exchanges described above as belonging to Washington Post and New York Times reporters or their news organizations' bureaus in [redacted].....
<br /><br />
<b>The exigent letter did not specify the 7-month interval noted in the case agent's November 5 e-mail, or contain any date restrictions.</b>  The exigent letter also stated that the request was made "due to exigent circumstances" and that "subpoenas requesting this information have been submitted to the U.S. Attorney's office who will process and serve them formally on [Company A] as expeditiously as possible."  However, <b>this statement was not accurate.  A subpoena request had not been sent to the U.S. Attorney's Office at the time the exigent letter was served, or at any time thereafter.</b>
</i></blockquote>
That's the "always careful and deliberative process"?  Hmm.  Later in the report, they note that even when the agent only had asked about (and never actually sought) 7 months of records, thanks to the NSL, they got months and months of records, nearly none of which was actually in the 7 month period the agent was interested in.  All total, they were sent 1,627 telephone call records, and only <i>three</i> calls were from that 7 month period.  Oh, and once they got those records, they were uploaded into a database, where they were searchable by other FBI staff and other government personnel as well.
<br /><br />
The report notes a few other examples of agents getting access to reporter phone information without the proper authorization as well.
<br /><br />
Of course, once this came out the FBI and DOJ insisted that this was no big deal.  But, in a coincidence of timing, just before this whole story broke, the FBI was in court, seeking to <a href="http://www.huffingtonpost.com/2013/05/13/fbi-exigent-letters-memo-_n_3268167.html" target="_blank">keep secret the memo that gave the "legal basis"</a> for its past use of NSLs to access phone records.  While the DOJ insists that it's not using these processes any more, it still thinks it should keep the legal basis for why it issued those letters a complete secret.  They claim, ridiculously, that this would "chill deliberative discussions within the Executive Branch."  But people aren't asking for deliberative discussions, just the very specific claimed legal basis for issuing such letters.  And, of course, the DOJ would prefer not to say.
<br /><br />
Given all of this, is it any wonder that people suspect the DOJ of being up to no good?<br /><br /><a href="http://www.techdirt.com/articles/20130514/01190323076/dojs-history-ignoring-rules-when-getting-phone-records-journalists.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130514/01190323076/dojs-history-ignoring-rules-when-getting-phone-records-journalists.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130514/01190323076/dojs-history-ignoring-rules-when-getting-phone-records-journalists.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>not-the-first-time</slash:department>
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<pubDate>Mon, 13 May 2013 09:48:00 PDT</pubDate>
<title>Politicians, Car Dealers Trying To Make It Illegal To Buy A Tesla In North Carolina</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130511/02014623044/politicians-car-dealers-trying-to-make-it-illegal-to-buy-tesla-north-carolina.shtml</link>
<guid>http://www.techdirt.com/articles/20130511/02014623044/politicians-car-dealers-trying-to-make-it-illegal-to-buy-tesla-north-carolina.shtml</guid>
<description><![CDATA[ Last fall, we wrote about how auto dealers were <a href="http://www.techdirt.com/blog/innovation/articles/20121008/15521020645/auto-dealers-complain-that-tesla-stores-are-illegal-despite-not-actually-selling-anything.shtml">bitching</a> about the fact that electric car company Tesla sells their cars directly.  It has "stores" but you can't buy your cars from those stores, due to antiquated and ridiculous regulations about car sales.  Most states have laws that basically say that car companies can't sell directly.  These laws serve no purpose other than to protect (often politically powerful) independent car dealers from being disintermediated.
<br /><br />
In North Carolina, however, they're taking it up a notch.  They're basically <a href="http://www.newsobserver.com/2013/05/09/2883125/law-would-stop-tesla-electric.html" target="_blank">trying to make it illegal to sell a Tesla in North Carolina</a> at all.  About 80 North Carolina residents have already bought one, but they may be the last:
<blockquote><i>
A legislative proposal, backed by the N.C. Automobile Dealers Association, would make it illegal for Tesla, or any other car maker, to bypass dealerships and sell directly in the state. The proposal cuts at the heart of Tesla&#8217;s business model: selling luxury cars over the phone or Internet and then delivering them to the front door of high-net-worth customers.
</i></blockquote>
The North Carolina State Commerce Committee approved the proposal unanimously.
<br /><br />
This is the same thing we see over and over again in other contexts.  Companies in an entrenched legacy position trying to use regulations to block disruptive upstarts.  There is no good reason for this law other than to block Tesla and to prop up dealerships.  It's somewhat disgusting to see politicians actively seek to stamp out innovation.<br /><br /><a href="http://www.techdirt.com/articles/20130511/02014623044/politicians-car-dealers-trying-to-make-it-illegal-to-buy-tesla-north-carolina.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130511/02014623044/politicians-car-dealers-trying-to-make-it-illegal-to-buy-tesla-north-carolina.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130511/02014623044/politicians-car-dealers-trying-to-make-it-illegal-to-buy-tesla-north-carolina.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>hating-on-disruptive-innovation</slash:department>
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<pubDate>Thu, 28 Mar 2013 13:03:00 PDT</pubDate>
<title>Taxi, Limo Trade Group Hates Innovative Upstarts, Labels Them 'Rogue Applications'</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20130327/02594322476/taxi-limo-trade-group-hates-innovative-upstarts-labels-them-rogue-applications.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20130327/02594322476/taxi-limo-trade-group-hates-innovative-upstarts-labels-them-rogue-applications.shtml</guid>
<description><![CDATA[ There's nothing like a bit of disruptive innovation to make the legacy players start busting out the old moral panics.  We've written a few times about the new generation of ride-for-hire and ride-share services, which are really disrupting the old taxi and limo business -- leading to all sorts of highly questionable lawsuits and attempts at regulating these new players into oblivion.  In almost every case, it seems quite clear that these attacks are not because the service is bad for consumers... but because it's disrupting traditional players who haven't innovated.  So, it came as little surprise this week to receive an email from the "Taxi, Limousine &#038; Paratransit Association" excitedly telling me all about a new paper they've issued with a giant "warning" about what they call "rogue apps."  Isn't that great?  Rather than innovative and disruptive services that consumers absolutely love, they just rebrand them as "rogue" apps and they can make them seem sssssssssssssscary.  The paper grades various new services, giving them a "red light," "yellow light" or "green light."
<br /><br />
Not surprisingly, the more well known apps -- Uber, SideCar, Lyft and Tickengo -- all have received the coveted "red light."  While according to the TLPA this means they're dangerous "rogue apps," to me it suggests that they're all doing something right.  They're providing services that people want that are more convenient or better priced than the old guard, which is why the old guard has to attack them.
<br /><br />
The key point they make is that these are all "unregulated" taxi services, which allows them to go into full out moral panic mode about how, without regulations, these services will likely take advantage of consumers.  The paper talks about threats of "criminal" drivers and the potential for meter rigging.  Of course, as we've seen in other industries, this seems like a clear case of businesses using regulations to <a href="http://www.techdirt.com/articles/20120627/00031719500/why-you-cant-braid-someones-hair-utah-money-without-first-paying-16k.shtml">keep out innovation and competitors</a>, rather than for a legitimate purpose.  Yes, many of those regulations were put in place for a good reason originally, yet many of those reasons really don't apply to these new services.
<br /><br />
In the past, you needed regulations to protect you from drivers taking extra long paths to where you wanted to go, driving poorly or charging too much -- because drivers could do that <b>and there was little recourse</b>.  But the thing about these new services, which rely heavily on online reputation systems, is that these reputation systems make the need for such regulations <i>much less necessary</i>.  The services, like Uber, set the price and poor drivers get booted from the system based on user reviews.  And, since most people who have a mobile phone these days to use one of these apps will <i>also</i> have GPS on those phones, people can self-monitor if the driver is taking a reasonable route.  Basically, the <b>original safety reasons</b> (which, again, may have made sense at the time) for many of those regulations simply may not really apply to these new services.  But rather than deal with that, the legacy players are doing what legacy players do: using those regulations to try to stomp out innovation and stifle competition.<br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20130327/02594322476/taxi-limo-trade-group-hates-innovative-upstarts-labels-them-rogue-applications.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20130327/02594322476/taxi-limo-trade-group-hates-innovative-upstarts-labels-them-rogue-applications.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20130327/02594322476/taxi-limo-trade-group-hates-innovative-upstarts-labels-them-rogue-applications.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>can't-beat-'em-in-the-market,-so...</slash:department>
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<pubDate>Tue, 5 Feb 2013 20:08:46 PST</pubDate>
<title>Another Future Clash: How Will The Law Deal With Autonomous Vehicles</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121225/00521221478/another-future-clash-how-will-law-deal-with-autonomous-vehicles.shtml</link>
<guid>http://www.techdirt.com/articles/20121225/00521221478/another-future-clash-how-will-law-deal-with-autonomous-vehicles.shtml</guid>
<description><![CDATA[ So much of what we seem to talk about is really the clash of disruptive innovation and the opportunity it creates with the existing infrastructure (business, legal, physical) and how they seem to clash in ways that tends to limit and/or delay the innovation.  Sometimes you can see these clashes coming from miles away -- and autonomous vehicles is one of those clashes.  New Scientist has an article by Bryant Walker Smith, discussing the coming clash over autonomous vehicles by asking a simple question: <a href="http://www.newscientist.com/article/mg21628966.400-how-does-a-traffic-cop-ticket-a-driverless-car.html" target="_blank">how does a traffic cop give a ticket to a driverless car</a>?  Think about it for a bit, and it can be a pretty complex question.  While Walker Smith delves into a few of these questions, there are many more -- and lots of people are trying to dig in now.
<br /><br />
For example, the law school at Santa Clara University held an <a href="http://law.scu.edu/hightech/autonomousvehicleconfrecap2012.cfm" target="_blank">entire conference on the legal implications of autonomous vehicles</a>, leading to the Santa Clara Law Review publishing <a href="http://digitalcommons.law.scu.edu/lawreview/vol52/iss4/" target="_blank">a whole bunch of papers</a> on the subject (including one by Walker Smith).  One <i>hopes</i> that lots of people putting some thought into the legal implications today will help us avoid the political messes tomorrow, but given what we know from the history of disruptive innovation, that seems unlikely.  Fully expect <i>someone</i> whose businesses are disrupted by autonomous vehicles to make a giant stink about how "unsafe" they are and how they need to be regulated to a degree that makes them effectively impossible to exist.<br /><br /><a href="http://www.techdirt.com/articles/20121225/00521221478/another-future-clash-how-will-law-deal-with-autonomous-vehicles.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121225/00521221478/another-future-clash-how-will-law-deal-with-autonomous-vehicles.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121225/00521221478/another-future-clash-how-will-law-deal-with-autonomous-vehicles.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>it's-coming</slash:department>
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<item>
<pubDate>Thu, 31 Jan 2013 07:49:40 PST</pubDate>
<title>And... Yet Another Regulator Flips Out About Uber, Tries To Kill It</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20130130/18303421831/yet-another-regulator-flips-out-about-uber-tries-to-kill-it.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20130130/18303421831/yet-another-regulator-flips-out-about-uber-tries-to-kill-it.shtml</guid>
<description><![CDATA[ Here we go again.  Yet another local transportation regulator who either doesn't understand Uber or (perhaps more likely) understands it <i>all too well</i> has decided to give Uber all the free Streisand Effect publicity it needs to build its reputation in the market by trying to pass legislation to shut it down.  This time it's the Colorado Public Utilities Commission, which is looking to pass some <a href="https://www.documentcloud.org/documents/563520-122690162-colorado-puc-docket-no-13r-0009tr-with.html" target="_blank">new regulations</a> that effectively make it impossible for Uber to operate its innovative car/taxi service (which is incredibly popular with users) in Denver.  Of course, all this has really done is give Uber the perfect opportunity to <a href="http://blog.uber.com/2013/01/29/uberdenverlove/" target="_blank">get tons of attention for its service in Denver</a> as it urges Uber fans to speak out against the regulatory changes.
<br /><br />
Uber points out that the proposed changes will basically make its business model illegal in multiple ways -- saying that you can't price based on distance, effectively keeping Uber cars outside of downtown areas that taxis populate, and forbidding Uber's key relationship set up with drivers (independent partners).  As Uber points out, these rules don't serve any legitimate regulatory purpose other than to prop up the taxi business model and hurt the disruptive upstart:
<blockquote><i>
These rules are not designed to promote safety, nor improve quality of service.  They are intended to stop innovation, protect incumbents, hurt independent drivers, and shut down Uber in Denver.  
</i></blockquote>
Of course, we've seen this <a href="http://www.techdirt.com/blog/?company=uber">before</a>.  In a bunch of places where Uber operates, the service faces regulatory crackdown by local regulators who seem to do a lot more to protect incumbent taxi services than they do to figure out what benefits the users the most.  This gets back to that concept of <a href="http://www.techdirt.com/blog/innovation/articles/20121208/22042621314/corruption-laundering-art-manipulating-regulations-to-block-innovation.shtml">corruption laundering</a> that I've mentioned a few times.  The regulations can be presented as having good intentions: they want to protect riders from getting scammed by unscrupulous drivers, and they want to make sure the market is safe and efficient.  But, as with so many regulatory schemes, what can be positioned as having the best of intentions also serves a secondary purpose: to allow incumbents the ability to thrive, while blocking out competition and the impact of disruptive innovation.  That seems to be the case here yet again.<br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20130130/18303421831/yet-another-regulator-flips-out-about-uber-tries-to-kill-it.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20130130/18303421831/yet-another-regulator-flips-out-about-uber-tries-to-kill-it.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20130130/18303421831/yet-another-regulator-flips-out-about-uber-tries-to-kill-it.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>regulation-2.0</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130130/18303421831</wfw:commentRss>
</item>
<item>
<pubDate>Tue, 8 Jan 2013 00:00:00 PST</pubDate>
<title>Move Over 'TacoCopter': Here Comes The 'Internet Of Drones'</title>
<dc:creator>Glyn Moody</dc:creator>
<link>http://www.techdirt.com/articles/20130102/13383221551/move-over-tacocopter-here-comes-internet-drones.shtml</link>
<guid>http://www.techdirt.com/articles/20130102/13383221551/move-over-tacocopter-here-comes-internet-drones.shtml</guid>
<description><![CDATA[ <p>As we know, the Internet works by breaking digital information up into IP packets which are then routed independently over the network, and then re-assembled at their destination.  Anything made up of 0s and 1s can be sent anywhere with an Internet connection in this way, but that isn't much good for physical objects.  
</p><p>
It's true that we are fast approaching the day when we will be able to use a 3D scanner to send a digital file representing an object across the Internet so that it can then be printed at the destination.  But that only works for simple, fungible items like cups or replacement parts, and is useless if you want to deliver a particular, personal item rather than just a generic copy.
</p><p>
To do that, we need an <a href="http://globalguerrillas.typepad.com/globalguerrillas/2013/01/dronenet-the-next-big-thing.html">Internet of drones</a>:

<i><blockquote>A short distance drone delivery service built on an open protocol. Think short haul logistics.
<br /><br />
It's a system that will explode in a way that is very similar to the way the Internet grew up -- where connections were bought by individuals and installed one modem and IP address at a time, and where the early providers are local geeks with shelves full of modems and an expensive T-1 lines.
<br /><br />
It's an approach that uses "uncontrolled airspace" and incremental purchases of cheap, standards compliant pads/drones to roll itself out (very similar to the way the Internet was able to piggy back on the old telephone system).
<br /><br />
As a result of this open approach and decentralization, it's something that could grow VERY fast.</blockquote></i>

If you're still unsure how this would work in practice, the post by John Robb quoted above goes on to spell out the details for a simple example.  The bottom line for returning a forgotten smartphone to its owner 30 miles away:

<i><blockquote>Costs? Probably less than $0.25 per 10 mi. or so.  So, about $0.75 in this instance. Time? An hour or so. </blockquote></i>

Of course, this is just a generalization of an idea we discussed back in March of last year, the so-called "<a href="https://www.techdirt.com/articles/20120327/04431918256/why-you-cant-have-tacocopter-drone-deliver-you-taco-lunch-today.shtml">TacoCopter</a>", but taken to the next level, modelled on the Internet's IP packets.  As we pointed out then, it's a great idea with lots of practical problems, mostly regulatory ones.  Arguably the far greater potential of the Internet of drones concept makes the argument for loosening up those restrictions to permit innovation in this area even more compelling.
</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/20130102/13383221551/move-over-tacocopter-here-comes-internet-drones.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130102/13383221551/move-over-tacocopter-here-comes-internet-drones.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130102/13383221551/move-over-tacocopter-here-comes-internet-drones.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>pity-about-those-regulations</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130102/13383221551</wfw:commentRss>
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<item>
<pubDate>Tue, 11 Dec 2012 10:35:00 PST</pubDate>
<title>Corruption Laundering: The Art Of Manipulating Regulations To Block Innovation</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20121208/22042621314/corruption-laundering-art-manipulating-regulations-to-block-innovation.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20121208/22042621314/corruption-laundering-art-manipulating-regulations-to-block-innovation.shtml</guid>
<description><![CDATA[ A bunch of folks, including James Allworth himself, sent over James Allworth's excellent post at HBR entitled <a href="http://blogs.hbr.org/cs/2012/12/how_corruption_is_strangling_us_innovation.html" target="_blank">How Corruption Is Strangling U.S. Innovation</a>.  If you're a frequent Techdirt reader, there is little new here, though much you'll likely agree with.  It details how many legacy companies use questionable regulations to hinder disruptive upstarts who are challenging their businesses via unique and innovative means.  It covers a bunch of different fields or situations where this is seen: autodealers going after Tesla for daring to <a href="http://www.techdirt.com/blog/innovation/articles/20121008/15521020645/auto-dealers-complain-that-tesla-stores-are-illegal-despite-not-actually-selling-anything.shtml">sell cars direct</a>, perpetual copyright term extension that appears to be much more a function of <a href="http://www.techdirt.com/articles/20090811/0123105835.shtml">the age of Mickey Mouse</a> than promoting the progress, how companies like <a href="http://www.techdirt.com/blog/?company=uber">Uber</a> and Airbnb have had to deal with a bundle of local regulations on taxis and hotels, and how Comcast doesn't count its own video content towards your download cap, but Netflix's traffic does count.
<br /><br />
It's a great article, but the thing that struck me about it is how it would be possible for people to explain away the corruption in each case as having a legitimate basis.  That's what's really pernicious here.  Allworth calls out Larry Lessig's book, <a href="http://republic.lessig.org/" target="_blank"><i>Republic, Lost</i></a> which often tries to drive this point home by calling it "soft corruption."  That is, we're generally not talking about <i>overt corruption</i>, the kind where someone is handing briefcases full of cash over to politicians.  It's much more subtle.  What you get are legacy companies who fear disruption -- and they are able to make the case that the "disruption" should be illegal because it's <i>scary to the incumbent</i>.  That is, "we must shut down this new innovation x, because it will destroy industry y, and industry y is important to America because of all the jobs it creates!"  Or, it's "we need to carefully regulate industry z, because if we don't they'll take advantage of customers!"
<br /><br />
And, thus, there are <i>legitimate-sounding</i> reasons for these kinds of regulations, and supporters of them always hit back on the corruption charges, claiming that "of course, it's not corruption -- politicians are just protecting jobs / children / etc."
<br /><br />
There's a myth out there that businesses hate regulations.  That's only partially true, and it's only true in limited cases.  In many industries -- especially highly regulated ones -- the incumbents often <i>love regulations</i> because (a) they have enough power to control the regulations, (b) they know their way around those regulations better than anyone else, (c) those regulations quite frequently limit competition and (d) those regulations quite frequently effectively <i>block out</i> any form of disruptive innovation by stopping it entirely.
<br /><br />
Perhaps what this is all about isn't properly conveyed by just calling it "corruption," or even "soft corruption."  I think it's better described as <b>corruption laundering</b>.  It is corruption, but it's done through this regulatory framework to make it <i>look, sound and (in some cases) feel</i> perfectly legit to many people, making it much easier to keep those regulations in place.  The corruption is "cleaned" of its dirty connotations because it can be wrapped in a cloth (though bogus) of "protecting jobs" or "protecting your safety."  It is corruption, but the truly nefarious part is that the corruption is done in such a way that there is plausible deniability over whether or not it is truly corrupt.  And that's what makes it so difficult to root out this form of corruption.  It's all been white-washed in a way to have a plausible explanation, even as the pace of important innovation suffers drastically.<br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20121208/22042621314/corruption-laundering-art-manipulating-regulations-to-block-innovation.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20121208/22042621314/corruption-laundering-art-manipulating-regulations-to-block-innovation.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20121208/22042621314/corruption-laundering-art-manipulating-regulations-to-block-innovation.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>plausible-deniability</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121208/22042621314</wfw:commentRss>
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<item>
<pubDate>Thu, 6 Dec 2012 20:02:00 PST</pubDate>
<title>DC Makes It Official That Uber Is Legit</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121205/02020321233/dc-makes-it-official-that-uber-is-legit.shtml</link>
<guid>http://www.techdirt.com/articles/20121205/02020321233/dc-makes-it-official-that-uber-is-legit.shtml</guid>
<description><![CDATA[ Despite some earlier legal <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">battles</a>, it appears that the Washington DC council has made it official that <a href="http://dcist.com/2012/12/uber_is_really_legal_in_dc_now.php" target="_blank">Uber should be fully legal to operate in the city</a>, providing easy rides for hire via your mobile phone.  Uber, of course, has run into problems with local regulatory boards across the country (though it frequently, and mostly successfully, turns those conflicts into marketing opportunities).  Still, it's nice to see DC figure out a way to make it clear that Uber is absolutely legal there.  Apparently the company had to agree to one "concession": to make sure that it really is serving all parts of the city, they had to build into the app a notice to report any discrimination.  Seems reasonable enough.  While I actually think Uber execs kind of enjoy butting heads with local officials, and rallying the legions of Uber fans behind the cause, I think they'd also agree that, in the long run, it's better for everyone to just have the damned service (which is pretty cool, honestly) be considered legal.<br /><br /><a href="http://www.techdirt.com/articles/20121205/02020321233/dc-makes-it-official-that-uber-is-legit.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121205/02020321233/dc-makes-it-official-that-uber-is-legit.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121205/02020321233/dc-makes-it-official-that-uber-is-legit.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>about-time</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121205/02020321233</wfw:commentRss>
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<item>
<pubDate>Thu, 6 Dec 2012 13:09:18 PST</pubDate>
<title>ITU's Sticky WCIT: Do New Rules Cover Just Big Telcos... Or Absolutely Everyone?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121206/12364621260/itus-sticky-wcit-do-new-rules-cover-just-big-telcos-absolutely-everyone.shtml</link>
<guid>http://www.techdirt.com/articles/20121206/12364621260/itus-sticky-wcit-do-new-rules-cover-just-big-telcos-absolutely-everyone.shtml</guid>
<description><![CDATA[ As the ITU's World Conference on Telecommunications (WCIT) continues in Dubai, a rather important "debate" has slowed any progress to a crawl.  The key thing that is being worked on, of course, is new International Telecommunications Regulations (ITRs).  Most of the debates we've talked about to date have been about what kind of mandate the ITU might have on things outside its direct areas of interest, as indications were that they wanted to expand the ITRs to cover things like the internet, online security and more.  But a key fight shows how it goes beyond even just that.  The big debate at WCIT right now is over a simple definition that could have massive implications:  will the ITRs <a href="http://news.dot-nxt.com/2012/12/06/wcit-splits-over-issue-operati" target="_blank">apply to "recognized operating agencies" or just "operating agencies."</a>  Seems simple, right?  Not really.
<br /><br />
Currently, the ITRs apply to "recognized operating agencies" which tend to be the huge telcos, often either state owned, or formerly state owned (and often still closely aligned with the government).  Basically, the big national telcos that everyone is aware of.  Those are considered "recognized operating agencies."  But, if they take out the word "recognized" then it would cover: "any individual, company, corporation or governmental agency which operates a telecommunication installation."
<br /><br />
Have you set up a WiFi network in your home?  Well, then, you just might be included in that definition.  See how that one little word could make a massive difference in the impact of the new ITRs?  Basically, it's a question of whether or not the new rules will apply to the giant national telco companies... or everyone.  Countries are taking sides and there's a bit of a stalemate, as noted by .nxt:
<blockquote><i>
Lined up against this measure [of expanding the coverage to everyone] are Canada, CEPT, Citel, Japan, Korea, Mexico, Poland and the United States. For it are the Arab States, African States, Brazil, India, Iran, Philippines and RCC.
</i></blockquote>
The conference chair is now pushing for a sort of "compromise" that certainly sounds a lot like siding with those in favor of the massively expanded definition.  He's in favor of using "operating agencies" rather than "recognized operating agencies" but then trying to allow for "exclusions" to the definition by pointing to <a href="http://news.dot-nxt.com/2012/12/06/wcit-splits-over-issue-operati#article38" target="_blank">Article 38</a> of the ITU Constitution.  Of course, that doesn't clarify anything.  It just makes things more confusing.
<br /><br />
Even if Article 38 could be used to "exclude" certain entities -- say, individuals and small businesses -- there would still be a massive problem.  Beyond the fact that these rules would apply to many more companies who have no idea what's going on, it's a <i>fundamental shift</i> in thinking about the ITRs.  It goes from rules that are limited to just a few giant telcos to ones that are de facto inclusive of just about everyone... leaving only "exceptions."  In some ways, it reminds me of the switch in copyright from an opt-in system, to one in which everything was automatically covered with just a few "exceptions."  That sort of thing has been a disaster on the copyright front, and would be an equal, if not bigger, disaster for telecom rules.<br /><br /><a href="http://www.techdirt.com/articles/20121206/12364621260/itus-sticky-wcit-do-new-rules-cover-just-big-telcos-absolutely-everyone.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121206/12364621260/itus-sticky-wcit-do-new-rules-cover-just-big-telcos-absolutely-everyone.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121206/12364621260/itus-sticky-wcit-do-new-rules-cover-just-big-telcos-absolutely-everyone.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>that-makes-a-big-difference</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121206/12364621260</wfw:commentRss>
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<pubDate>Fri, 30 Nov 2012 17:31:00 PST</pubDate>
<title>In Wake Of NewsCorp Scandal, UK Says Press Must Be Regulated... But Free... But Not Exactly</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20121129/16375021178/wake-newscorp-scandal-uk-says-press-must-be-regulated-free-not-exactly.shtml</link>
<guid>http://www.techdirt.com/articles/20121129/16375021178/wake-newscorp-scandal-uk-says-press-must-be-regulated-free-not-exactly.shtml</guid>
<description><![CDATA[ Between the UK's onerous <a href="http://www.techdirt.com/articles/20110107/03325312570/is-uk-finally-going-to-fix-its-awful-libel-laws.shtml" target="_blank">libel laws</a>, its insistence on "protecting" freedom of speech and press while attaching a <a href="http://www.techdirt.com/articles/20121112/10060421016/uk-looking-to-cement-its-new-anti-free-speech-reputation-arresting-man-posting-photo-burning-poppy.shtml" target="_blank">million exceptions</a> to this "freedom," and the recent phone-hacking scandal that saw Rupert Murdoch's papers <a href="http://www.techdirt.com/articles/20110705/15325114977/rupert-murdochs-journalists-accused-hacking-into-murdered-girls-voicemails-deleting-some.shtml" target="_blank">crossing lines</a> that even the most loathsome of hacky tabloids had yet to cross, one often wonders exactly what the hell is going on over there.<br />
<br />
Apparently, a few people in the UK are wondering that as well. A nine-month inquiry into the "culture, practice and ethics" of the journalism business has yielded one potential solution, which should have quotes thrown around it immediately. paidContent reports that <a href="http://paidcontent.org/2012/11/29/inquiry-reckless-uk-press-needs-new-regulator/" target="_blank">Lord Justice Leveson, who has been dealing with the issues surrounding the NewsCorp case, has a suggestion: independent regulation.</a>
<blockquote>
<i>The UK government must legislate to establish a new press "self-regulation" body &mdash; independent of both publishers and politicians but overseen by media regulator Ofcom &mdash; because newspapers have "wreaked havoc" in the lives of innocents, says the nine-month inquiry report into the culture, practice and ethics of the business.</i><br />
<br />
<i>Lord Justice Leveson, who has been hearing issues including the "hacking" of mobile phones for news stories, said the existing Press Complaints Commission (PCC), comprised of newspaper editors, is "not actually a regulator at all". And he has rejected news publishers' alternative suggestion of binding themselves to ethical standards by commercial contracts.</i><br />
<br />
<i>Instead, he is advising the government to legislate the creation of a new independent body to promote "high standards" and safeguard individuals' rights, run by a chair and a board who will hold publishers to a code.</i></blockquote>
It's hard to imagine the words "legislate," "independent" and "safeguard individuals' rights" all working together peaceably. While certain newspapers certainly haven't given the impression that they're capable of holding themselves to ethical standards, it hardly seems like Plan B should be legislated into existence.<br />
<br />
You also have to wonder which "individuals" are going to have their rights safeguarded. The use of injunctions (and the double-secret "<a href="http://www.techdirt.com/articles/20110513/02092214259/uk-court-expands-super-injunction-censorship-rules-to-include-twitter-facebook.shtml" target="_blank">Super Injunction</a>") and the general encouragement of powerful individuals to use very amicable libel laws to shut down criticism or exposure of uncouth behavior doesn't really set the stage for protecting the rights of journalists. Leveson "addresses" this issue... by passing the buck to legislators.
<blockquote>
<i>Leveson is leaving the definition of that code and the implementation of the new body to whomever Prime Minister David Cameron, should he follow the recommendation, might appoint to set them up. But Leveson suggests the code should outline what constitutes "public interest" &ndash; a thorny topic on which newspapers and others often disagree.</i></blockquote>
Well, good luck with that. Those in the journalism field will certainly want to keep their rights safeguarded and those who prefer to tamp out criticism and unflattering reporting will certainly want to keep theirs "safe" as well. It all sounds very zero sum, which is probably why it's being kicked down the road.<br />
<br />
The Lord Justice is certainly correct that some newspapers have behaved reprehensibly. But it hardly follows that legislated "independent" regulation is the solution. Leveson wants to hand this over to Ofcom, which already regulates UK radio, telecommunications infrastructure and broadcasting standards. Certainly, Ofcom has the regulation experience, but it's another egg in its already very loaded basket. Consolidation of regulatory power rarely turns out well. Levenson insists that this is not intended to grant the government control of the press:
<blockquote>
<i>"This is not, and cannot be characterised as, statutory regulation of the press. The legislation would not establish a body to regulate the press: it would be up to the press to come forward with their own body that meets the criteria laid down.</i><br />
<br />
<i>"The legislation would not give any rights to Parliament, to the Government, or to any regulatory (or other) body to prevent newspapers from publishing any material whatsoever.</i><br />
<br />
<i>"Nor would it give any rights to these entities to require newspapers to publish any material <b>except insofar as it would require the recognised self-regulatory body to have the power to direct the placement and prominence of corrections and apologies</b> in respect of information found, by that body, to require them."</i></blockquote>
All well and good in theory, but the last paragraph is troubling. If this isn't going to be a case of the government or its legislated independent regulator telling the press what to print, why the wording concerning "placement and prominence of corrections and apologies?" This sentence seems to indicate that certain individuals' rights will be respected and safeguarded, if not more often, then definitely at a higher level. If papers offend the wrong person, <i>someone</i> will be there to tell them how much they should prostrate themselves, as well as where and in what font size.<br />
<br />
Prime Minister David Cameron has responded... by kicking the issue right back.
<blockquote>
<i>"For the first time, we would have crossed the rubicon of writing elements of press regulation into the law of the land.</i><br />
<br />
<i>"We should, I believe, be wary of any legislation that has the potential to infringe free speech and a free press.</i><br />
<br />
<i>"In this House &ndash; which has been a bulwark of democracy for centuries &ndash; we should think very, very carefully before crossing this line."</i></blockquote>
I believe the PM has misspoken. He must have meant "any <i>additional</i> legislation that has the potential to infringe on free speech and a free press." I would certainly hope the outcome of the NewsCorp unpleasantness wouldn't result in <i>more</i> limitations to the UK's very limited speech and press. If anything defeats unpleasant speech, it's <i>more</i> speech -- not more regulation.<br /><br /><a href="http://www.techdirt.com/articles/20121129/16375021178/wake-newscorp-scandal-uk-says-press-must-be-regulated-free-not-exactly.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121129/16375021178/wake-newscorp-scandal-uk-says-press-must-be-regulated-free-not-exactly.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121129/16375021178/wake-newscorp-scandal-uk-says-press-must-be-regulated-free-not-exactly.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>completely-independent,-except-for-all-this-other-stuff</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121129/16375021178</wfw:commentRss>
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<item>
<pubDate>Wed, 28 Nov 2012 07:26:34 PST</pubDate>
<title>Rep. Issa Crowdsourcing Discussion Of Two Year Embargo On Internet Regulations</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121127/15204621159/rep-issa-crowdsourcing-discussion-two-year-embargo-internet-regulations.shtml</link>
<guid>http://www.techdirt.com/articles/20121127/15204621159/rep-issa-crowdsourcing-discussion-two-year-embargo-internet-regulations.shtml</guid>
<description><![CDATA[ We've been hearing rumors of this for a few weeks, but Rep. Darrell Issa has released a <a href="http://keepthewebopen.com/iama" target="_blank">draft version of his Internet American Moratorium Act</a> (there's a joke in that name for you Reddit folks...) and appropriately (see previous parenthetical) he's <a href="http://www.reddit.com/r/technology/comments/13vtx0/iama_congressman_seeking_your_input_on_a_bill_to/" target="_blank">doing an IAMA session on Reddit</a> to crowdsource ideas for the bill, a la <a href="http://www.techdirt.com/articles/20121119/07274921090/rep-lofgren-looks-to-reddit-to-help-crowdsource-anti-sopa.shtml" target="_blank">Rep. Zoe Lofgren's</a> recent Reddit discussion concerning a bill to stop the US government from seizing domain names without a prior adversarial hearing.  And, of course, he's also put the bill on his Madison legislative crowdsourcing platform, so people can discuss it there as well.  The key section of the draft bill is the following:
<blockquote><i>
It is resolved in the House of Representatives and Senate that they shall not pass any new legislation for a period of 2 years from the date of enactment of this Act that would require individuals or corporations engaged in activities on the Internet to meet additional requirements or activities. After 90 days of passage of this Act no Department or Agency of the United States shall publish new rules or regulations, or finalize or otherwise enforce or give lawful effect to draft rules or regulations affecting the Internet until a period of at least 2 years from the enactment of this legislation has elapsed.
</i></blockquote>
Considering the worries that many of us have about bad regulations impacting the internet, you can understand how this might be appealing, but we should at least be careful of any potential unintended consequences, concerning how it might limit <i>good</i> bills to fix bad laws already in place.  The language above appears to try to avoid that -- as it clearly allows for fixing some existing legislation so long as it doesn't create new requirements for individuals or companies, but even that could get in the way of potentially useful legislation.  Not that I'm recommending this per se, but what if there is an effort to "fix copyright" by going back to a system of requiring registration to get a copyright, rather than automatically placing it on all works once fixed.  There are other issues with such a proposal (mainly the Berne Convention), but let's say it was legitimately considered -- and it is an idea that many have suggested would solve a segment of the problems with today's copyright law.  Yet, I could see how this moratorium would block that as imposing "additional requirements" for "individuals or corporations engaged in activities on the internet."
<br /><br />
Also, as I'm sure some will point out, there is a slight oddity in having Congress pass a law to say that it won't do something else, and Congress could always then just pass another law rescinding the original law (or overriding it with a bill that ignores it).  However, such Congressional moratoriums often are useful in at least establishing a baseline and getting Congress to avoid wading into certain waters.  So I'm not necessarily against the moratorium, but I worry that it could lead to unintended consequences that don't just prevent bad laws from being passed, but also might prevent good fixes to current law from passing as well.<br /><br /><a href="http://www.techdirt.com/articles/20121127/15204621159/rep-issa-crowdsourcing-discussion-two-year-embargo-internet-regulations.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121127/15204621159/rep-issa-crowdsourcing-discussion-two-year-embargo-internet-regulations.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121127/15204621159/rep-issa-crowdsourcing-discussion-two-year-embargo-internet-regulations.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>punt</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121127/15204621159</wfw:commentRss>
</item>
<item>
<pubDate>Wed, 31 Oct 2012 09:46:00 PDT</pubDate>
<title>Comcast Lobbyist Admits To Holding Internet Service For The Poor Hostage To Get NBC Takeover Approved</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121029/12250920878/comcast-lobbyist-admits-to-holding-internet-service-poor-hostage-to-get-nbc-takeover-approved.shtml</link>
<guid>http://www.techdirt.com/articles/20121029/12250920878/comcast-lobbyist-admits-to-holding-internet-service-poor-hostage-to-get-nbc-takeover-approved.shtml</guid>
<description><![CDATA[ The Washington Post has a profile piece about Washington DC power dealmaker David Cohen, who has led Comcast's policy and lobbying efforts for the past decade.  It starts out (and ends) with a whopper of a story about Cohen explicitly had Comcast <a href="http://www.washingtonpost.com/business/technology/david-cohen-chief-dealmaker-in-washington-is-comcasts-secret-weapon/2012/10/29/151e055e-080a-11e2-858a-5311df86ab04_print.html" target="_blank"><i><b>not</b></i> offer a special internet offering for the poor</a> since he wanted to use it as a bargaining chip in the NBC Universal purchase:
<blockquote><i>
In fall 2009, Comcast planned to launch an Internet service for the poor that was sure to impress federal regulators. But David Cohen, the company's chief of lobbying, told the staff to wait.
<br /><br />
At the time, Comcast was planning a controversial $30 billion bid to take over NBC Universal, and Cohen needed a bargaining chip for government negotiations.
<br /><br />
"I held back because I knew it may be the type of voluntary commitment that would be attractive to the chairman" of the Federal Communications Commission, Cohen said in a recent interview.
</i></blockquote>
At the end of the article, the reporter (Ceclia Kang) notes that the FCC later "took credit" for this program when it was launched:
<blockquote><i>
The initiative may not have sealed the FCC's decision to approve the NBC merger. But it helped, Cohen said.
<br /><br />
The proposal clearly captured the fancy of regulators. Late last month, Genachowski, the FCC chairman, touted the program, seemingly claiming some credit for its creation.
<br /><br />
"This particular program came from our reviewing of the Comcast NBC-U transaction," Genachowski said in a speech. "Comcast embraced it as good for the country, as well as good for business. And I'm fine with that."
</i></blockquote>
In other words, Cohen delayed a program to help the poor... in order to help make Comcast much, much richer in buying NBC... and then conveniently engineered it so that the FCC takes bogus credit for the program which would have been launched much earlier if Comcast hadn't used it as a bargaining chip.  It's hard not to be cynical about politics in general and the FCC in particular when these kinds of stories hit the press.  We've long been concerned about the FCC's ability to be played like a fiddle by industry lobbyists, and this only seems to confirm that point.<br /><br /><a href="http://www.techdirt.com/articles/20121029/12250920878/comcast-lobbyist-admits-to-holding-internet-service-poor-hostage-to-get-nbc-takeover-approved.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121029/12250920878/comcast-lobbyist-admits-to-holding-internet-service-poor-hostage-to-get-nbc-takeover-approved.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121029/12250920878/comcast-lobbyist-admits-to-holding-internet-service-poor-hostage-to-get-nbc-takeover-approved.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=20121029/12250920878</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 29 Oct 2012 12:41:16 PDT</pubDate>
<title>Why DC And Silicon Valley Don't Mix Well</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20121020/22581720775/why-dc-silicon-valley-dont-mix-well.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20121020/22581720775/why-dc-silicon-valley-dont-mix-well.shtml</guid>
<description><![CDATA[ Larry Downes has a good piece over at Forbes discussing how it's often best for innovation if regulators <a href="http://www.forbes.com/sites/larrydownes/2012/10/16/what-does-silicon-valley-want-from-washington/" target="_blank">stay the hell away from innovative industries</a>.  He notes the very different paces (innovation quick, regulation slow) and how that leads to bad outcomes:
<blockquote><i>
The wildly different clock speeds of Moore&#8217;s Law and Washington law, however, make for increasingly damaging collisions at the intersection of technology and public policy.  <b>Even with the best of intentions, lawmakers, regulators, and judges can&#8217;t possibly anticipate tomorrow&#8217;s innovative products and services</b>.  Nor can they guess how specialized legislation, thrashed out over the course of years and infected by lobbyists and special interests, will return to haunt us when technology inevitably changes.
<br /><br />
Faced with the unknown unknowns of dramatically new products&#8212;social networks, location-based ads, driverless cars&#8211;the best advice for governments is simply to leave them alone. Don&#8217;t just do something, stand there. At least until it&#8217;s crystal clear that the market has failed, consumers are being harmed, and that lawmakers have a remedy that won&#8217;t make things worse.
</i></blockquote>
However, regulators often don't understand this at all.  They think that the quick pace of innovation means that companies themselves should slow down -- and that it's their job to force them to do so.  Downes shares this troubling story:
<blockquote><i>
At a conference I attended over the summer, on the other hand, the Federal Trade Commission&#8217;s Julie Brill got it dangerously wrong. Given the novelty of policy problems in privacy, cybersecurity and competition in the fast-changing Internet ecosystem, Brill argued, both Washington and Silicon Valley should proceed with caution. &#8220;Regulators need humility,&#8221; she said, &#8220;but so do companies.&#8221;
<br /><br />
The dynamism of the Internet ecosystem certainly calls for more humble trade policy. But the last thing we want is for companies to slow down so Washington can catch up. In Silicon Valley, we have a special name for humble start-ups.  We call them failures.
</i></blockquote>
That's not to say that there isn't room for any regulations -- but as Downes notes, the thing that DC should be most focused on is "fixes to previous government efforts that tried but failed to fix a problem that turned out not to need a regulatory solution."  Other industries seem to want handouts and investments and the like, but you don't see that much in Silicon Valley.  
<br /><br />
I was recently on a call with some entrepreneurs and some government officials, in which we were discussing a few laws -- and the government folks kept asking the entrepreneurs if they needed help protecting against copycats (generally foreign ones).  The entrepreneurs kept ignoring the question -- and it kept getting asked.  Eventually, someone on the call said: "Um. No. Look, someone's going to copy us.  We know that.  But we don't care because we know we can innovate faster than anyone who copies us."  The government folks seemed confused, with one saying something to the effect of "that's great if you can do that, but..."  But that really is the difference in mindsets.  Entrepreneurs really just want to build stuff and are confident (sometimes too confident) in their own abilities to compete.  We don't want government handouts -- we want government to get out of the way.
<br /><br />
That's not to say companies should be free to do absolutely anything, but as Downes notes, we don't need the government fiddling around where there is no evidence of real harm.  If there is harm, then you can understand why it can make sense to get involved -- but too often government officials seem to think they should get involved just because there's a possibility of harm, or because a competitor got beaten.  But that's not good for innovation and it's not good for the public.<br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20121020/22581720775/why-dc-silicon-valley-dont-mix-well.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20121020/22581720775/why-dc-silicon-valley-dont-mix-well.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20121020/22581720775/why-dc-silicon-valley-dont-mix-well.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>first,-do-no-harm</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121020/22581720775</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 22 Oct 2012 14:36:00 PDT</pubDate>
<title>George McGovern On Why Politicians Who Haven't Built A Business Are Bad At Regulating</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121022/13153120790/george-mcgovern-why-politicians-who-havent-built-business-are-bad-regulating.shtml</link>
<guid>http://www.techdirt.com/articles/20121022/13153120790/george-mcgovern-why-politicians-who-havent-built-business-are-bad-regulating.shtml</guid>
<description><![CDATA[ With the passing of former Senator and Presidential candidate George McGovern this weekend, the Wall Street Journal <a href="http://online.wsj.com/article/SB10001424052970203406404578070543545022704.html" target="_blank">reran a 1992 column he wrote</a> about how much he learned from trying to start a business after he'd left politics.  TheMoneyIllusion <a href="http://www.themoneyillusion.com/?p=17208" target="_blank">has an excerpt as well</a>:
<blockquote><i>
In 1988, I invested most of the earnings from this lecture circuit acquiring the leasehold on Connecticut&#8217;s Stratford Inn. Hotels, inns and restaurants have always held a special fascination for me. The Stratford Inn promised the realization of a longtime dream to own a combination hotel, restaurant and public conference facility &#8212; complete with an experienced manager and staff.
<br /><br />
In retrospect, I wish I had known more about the hazards and difficulties of such a business, especially during a recession of the kind that hit New England just as I was acquiring the inn&#8217;s 43-year leasehold. <b>I also wish that during the years I was in public office, I had had this firsthand experience about the difficulties business people face every day. That knowledge would have made me a better U.S. senator and a more understanding presidential contender.</b>
</i></blockquote>
He goes on to talk about how all sorts of crazy regulations, that may have appeared to make sense to the politicians passing them, were actually serving to create a huge headache for businesses -- often because whoever is writing the laws has no idea what they're talking about:
<blockquote><i>
In short, &#8220;one-size-fits-all&#8221; rules for business ignore the reality of the marketplace. And setting thresholds for regulatory guidelines at artificial levels &#8212; e.g., 50 employees or more, $500,000 in sales &#8212; takes no account of other realities, such as profit margins, labor intensive vs. capital intensive businesses, and local market economics.
<br /><br />
The problem we face as legislators is: Where do we set the bar so that it is not too high to clear? I don&#8217;t have the answer. I do know that we need to start raising these questions more often.
</i></blockquote>
When we talk about Washington DC (and other governments) passing regulations that impact how entrepreneurs and innovators build great new companies, this is the kind of thing that we're worried about.  The vast majority of elected officials really have no idea.  They pass rules and regulations that <i>sound good</i> and are meant to serve a good purpose, but they rarely take into account the consequences of the regulations they pass or how they'll impact how companies act.  This is not to say that there shouldn't be regulations, but that regulators need (a) a much better understanding of business and (b) they need to be aware that the impact of regulations can be stifling.  I've never understood why every piece of legislation that will impact companies doesn't come with specific metrics to determine if it's a success and a mandatory review period / sunset provision, in which an independent board is tasked with determining if the law accomplished what it set out to do, and if there were any costly side effects or unintended consequences.
<br /><br />
McGovern seemed to discover all that after his political career was over, but with his passing, perhaps we can encourage current politicians to recognize just how big an issue this is today.  Especially when we rely on so many new technologies, innovations and services on a daily basis.<br /><br /><a href="http://www.techdirt.com/articles/20121022/13153120790/george-mcgovern-why-politicians-who-havent-built-business-are-bad-regulating.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121022/13153120790/george-mcgovern-why-politicians-who-havent-built-business-are-bad-regulating.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121022/13153120790/george-mcgovern-why-politicians-who-havent-built-business-are-bad-regulating.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>good-points</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121022/13153120790</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 22 Oct 2012 05:18:58 PDT</pubDate>
<title>Minnesota Backs Down After Internet Rises Up: Now Encourages Residents To Use Online Learning</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121020/23593620779/minnesota-backs-down-after-internet-rises-up-now-encourages-residents-to-use-online-learning.shtml</link>
<guid>http://www.techdirt.com/articles/20121020/23593620779/minnesota-backs-down-after-internet-rises-up-now-encourages-residents-to-use-online-learning.shtml</guid>
<description><![CDATA[ Last week, we were among those who reported on a ridiculous attempt by regulators in Minnesota to <a href="https://www.techdirt.com/articles/20121018/17264820756/old-regulations-strike-again-minnesota-says-its-against-law-to-offer-open-courseware-class-without-approval.shtml">enforce</a> a regulation aimed at stopping degree mills, by telling various legitimate online learning providers like Coursera that Minnesota residents couldn't take courses from without state approval.  Thankfully, all of the attention has caused Minnesota officials to <a href="http://www.slate.com/blogs/future_tense/2012/10/19/minnesota_coursera_ban_state_won_t_crack_down_on_free_online_courses_after.html" target="_blank">admit that this was silly</a> and back down.  According to Larry Pogemiller, director of the Minnesota Office of Higher Education:
<blockquote><i>
Obviously, our office encourages lifelong learning and wants Minnesotans to take advantage of educational materials available on the Internet, particularly if they&#8217;re free. No Minnesotan should hesitate to take advantage of free, online offerings from Coursera.
</i></blockquote>
He also said that the obsolete regulations should be updated:
<blockquote><i>
When the legislature convenes in January, my intent is to work with the Governor and Legislature to appropriately update the statute to meet modern-day circumstances. Until that time, I see no reason for our office to require registration of free, not-for-credit offerings.
</i></blockquote>
The internet wins, again.<br /><br /><a href="http://www.techdirt.com/articles/20121020/23593620779/minnesota-backs-down-after-internet-rises-up-now-encourages-residents-to-use-online-learning.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121020/23593620779/minnesota-backs-down-after-internet-rises-up-now-encourages-residents-to-use-online-learning.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121020/23593620779/minnesota-backs-down-after-internet-rises-up-now-encourages-residents-to-use-online-learning.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=20121020/23593620779</wfw:commentRss>
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<item>
<pubDate>Fri, 19 Oct 2012 17:00:00 PDT</pubDate>
<title>DailyDirt: Serious Food Regulations That Don't Sound So Serious...</title>
<dc:creator>Michael Ho</dc:creator>
<link>http://www.techdirt.com/articles/20101011/04404411361/dailydirt-serious-food-regulations-that-dont-sound-so-serious.shtml</link>
<guid>http://www.techdirt.com/articles/20101011/04404411361/dailydirt-serious-food-regulations-that-dont-sound-so-serious.shtml</guid>
<description><![CDATA[ There are plenty of cases where food regulations are reasonable safety measures, but sometimes there are serious government decisions that sound a bit ridiculous (eg. the Supreme Court deciding that <a href="http://en.wikipedia.org/wiki/Nix_v._Hedden">a tomato is a vegetable</a> in 1893). Here are just a few examples of more recent politically-charged food proposals.

<ul>

<li> <a title="http://www.washingtonpost.com/blogs/ezra-klein/post/did-congress-declare-pizza-as-a-vegetable-not-exactly/2011/11/20/gIQABXgmhN_blog.html" href="http://wapo.st/QsQVtA">Pizza is not a vegetable, but just 1/8 of a cup of tomato paste counts the same as a half cup of vegetables, according to Congress.</a> It's actually not that easy to directly compare the nutritional value of various servings of fruits and vegetables, but plenty of people simply see highly-processed foods as an unacceptable component of school lunches. [<a href="http://www.washingtonpost.com/blogs/ezra-klein/post/did-congress-declare-pizza-as-a-vegetable-not-exactly/2011/11/20/gIQABXgmhN_blog.html">url</a>]</li>

<li> <a title="http://slatest.slate.com/posts/2012/07/26/meatless_monday_at_the_u_s_d_a_is_off_the_table_.html" href="http://slate.me/QWyUWV">The USDA had a suggestion to try out a "Meatless Monday" recommendation, but it quickly backed off doing so.</a> The proposal would have encouraged corporate and school cafeterias to offer a vegetarian meal on Mondays, but there were obvious objections from parts of the agriculture industry. [<a href="http://slatest.slate.com/posts/2012/07/26/meatless_monday_at_the_u_s_d_a_is_off_the_table_.html">url</a>]</li>

<li> <a title="http://www.nytimes.com/2012/10/14/magazine/why-californias-proposition-37-should-matter-to-anyone-who-cares-about-food.html?_r=1&#038;" href="http://nyti.ms/X2JNI1">California's Proposition 37 would require labels on genetically modified foods -- and consumers will likely be surprised at the amount of GMOs in their diet.</a> If it passes, the result of this vote could make GM foods a larger national issue. [<a href="http://www.nytimes.com/2012/10/14/magazine/why-californias-proposition-37-should-matter-to-anyone-who-cares-about-food.html?_r=1&#038;">url</a>]</li>

</ul>

If you'd like to read more awesome and interesting stuff, check out this unrelated (but not entirely random!) <a title="http://www.stumbleupon.com/to/stumble/stumblethru:www.techdirt.com" href="http://bit.ly/fagV8c">Techdirt post</a>.<br /><br /><a href="http://www.techdirt.com/articles/20101011/04404411361/dailydirt-serious-food-regulations-that-dont-sound-so-serious.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101011/04404411361/dailydirt-serious-food-regulations-that-dont-sound-so-serious.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101011/04404411361/dailydirt-serious-food-regulations-that-dont-sound-so-serious.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>urls-we-dig-up</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101011/04404411361</wfw:commentRss>
</item>
<item>
<pubDate>Fri, 19 Oct 2012 03:30:14 PDT</pubDate>
<title>Old Regulations Strike Again: Minnesota Says It's Against The Law To Offer Open Courseware Class Without Approval</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121018/17264820756/old-regulations-strike-again-minnesota-says-its-against-law-to-offer-open-courseware-class-without-approval.shtml</link>
<guid>http://www.techdirt.com/articles/20121018/17264820756/old-regulations-strike-again-minnesota-says-its-against-law-to-offer-open-courseware-class-without-approval.shtml</guid>
<description><![CDATA[ Every day, it seems, we hear of yet another story of silly out-of-date regulations, which may have had a reasonable purpose initially, getting in the way of perfectly legitimate innovation.  For example, there's been a massive growth in "open courseware" or open education programs, that put various educational classes online for everyone to benefit.  They're not designed to replace the degrees of college, but rather to <i>just help people learn</i>.  One of the biggest ones, Coursera, recently told people in Minnesota that <a href="http://chronicle.com/blogs/wiredcampus/minnesota-gives-coursera-the-boot-citing-a-decades-old-law/40542" target="_blank">they could no longer take Coursera classes</a>, due to ridiculously outdated Minnesota regulations:
<blockquote><i>
  <b>  Notice for Minnesota Users:</b>
<br /><br />
    Coursera has been informed by the Minnesota Office of Higher Education that under Minnesota Statutes (136A.61 to 136A.71), a university cannot offer online courses to Minnesota residents unless the university has received authorization from the State of Minnesota to do so. If you are a resident of Minnesota, you agree that either (1) you will not take courses on Coursera, or (2) for each class that you take, the majority of work you do for the class will be done from outside the State of Minnesota.
</i></blockquote>
The key regulation here, <a href="https://www.revisor.mn.gov/statutes/?id=136a.61" target="_blank">136A.6a</a> is clearly about stopping questionable degree mills from being used in Minnesota.  It specifically refers to "academic degrees":
<blockquote><i>
The legislature has found and hereby declares that the availability of legitimate courses and programs leading to academic degrees offered by responsible private not-for-profit and for-profit institutions of postsecondary education and the existence of legitimate private colleges and universities are in the best interests of the people of this state. The legislature has found and declares that the state can provide assistance and protection for persons choosing private institutions and programs, by establishing policies and procedures to assure the authenticity and legitimacy of private postsecondary education institutions and programs. The legislature has also found and declares that this same policy applies to any private and public postsecondary educational institution located in another state or country which offers or makes available to a Minnesota resident any course, program or educational activity which does not require the leaving of the state for its completion.
</i></blockquote>
The other law just says that the attorney general and the courts can shut down anyone who violates the law -- which is what they threatened to do with Coursera.
<blockquote><i>
Tricia Grimes, a policy analyst for the state&#8217;s Office of Higher Education, said letters had been sent to all postsecondary institutions known to be offering courses in Minnesota. 
</i></blockquote>
But that seems to be a willful misreading of the regulation (which seems silly in the first place).  Coursera isn't a degree mill.  It's not about earning the degree, it's about actually learning.  Minnesota's interpretation of the law is fairly ridiculous.  It basically means that anyone who wants to access online educational material in Minnesota is limited by the state determining what it considers okay.<br /><br /><a href="http://www.techdirt.com/articles/20121018/17264820756/old-regulations-strike-again-minnesota-says-its-against-law-to-offer-open-courseware-class-without-approval.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121018/17264820756/old-regulations-strike-again-minnesota-says-its-against-law-to-offer-open-courseware-class-without-approval.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121018/17264820756/old-regulations-strike-again-minnesota-says-its-against-law-to-offer-open-courseware-class-without-approval.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>oh-come-on</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121018/17264820756</wfw:commentRss>
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<item>
<pubDate>Wed, 17 Oct 2012 03:32:17 PDT</pubDate>
<title>Can't Win 'Em All: Uber Gives Up Attempt To Do UberTaxi In NYC (For Now...)</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121016/18380820726/cant-win-em-all-uber-gives-up-attempt-to-do-ubertaxi-nyc-now.shtml</link>
<guid>http://www.techdirt.com/articles/20121016/18380820726/cant-win-em-all-uber-gives-up-attempt-to-do-ubertaxi-nyc-now.shtml</guid>
<description><![CDATA[ We've talked about how innovative ride hailing company, Uber, was <a href="http://www.techdirt.com/articles/20120921/01352320456/ubers-most-important-innovation-highlighting-totally-bogus-local-restrictions.shtml">pushing regulatory boundaries</a> across the country, often showing how restrictive local regulators could be towards innovation.  In many cases, Uber has been able to generate enough public support that local taxi and limo regulators ended up <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">backing down</a>.  But you can't win 'em all.  Uber has admitted that it's <a href="http://blog.uber.com/2012/10/16/ubertaxi-in-nyc-shutting-down-for-now-no-changes-to-ubernyc-black-car-service/" target="_blank">pulled the plug</a> on UberTaxi in New York City.  
<br /><br />
While Uber is most well known for its "black car" service, it's also been moving aggressively into the taxi world (which is why it's <a href="http://www.techdirt.com/blog/innovation/articles/20121005/17023320623/chicago-taxis-companies-riders-sue-uber-targeting-cool-passengers.shtml">getting sued</a> in Chicago).  NYC's Taxi and Limo Commission (TLC) has fought against this move, since the law technically requires cabs to be hailed directly from the street -- and the TLC claimed that hailing from a phone violated that.  Uber, however, claims that the TLC has admitted privately that the service is legal.  Either way, the TLC threatened cabbies who used Uber, and that limited the number willing to take part, which probably made the service a lot less interesting for users.  And, for now, the service has shut down.
<br /><br />
The TLC, for its part, seems to suggest that this is only temporary, and it would like to bring such services back -- but it <a href="http://news.slashdot.org/story/12/10/16/2123245/uber-gives-up-on-new-york-taxi-service?utm_source=slashdot&#038;utm_medium=twitter" target="_blank">needs to conclude existing contracts</a>:
<blockquote><i>
"In recent months, as e-hail apps have emerged, TLC has undertaken serious diligence and is moving toward rule changes that will open the market to app developers and other innovators. Those changes cannot legally take place until our existing exclusive contracts expire in February. We are committed to making it as easy as possible to get a safe, legal ride in a New York City taxi, and are excited to see how emerging technology can improve that process. Our taxis have always been on the cutting edge of technological innovation, from GPS systems to credit card readers."
</i></blockquote>
Hopefully that's true, but the devil is in the details... we'll see what happens early next year.<br /><br /><a href="http://www.techdirt.com/articles/20121016/18380820726/cant-win-em-all-uber-gives-up-attempt-to-do-ubertaxi-nyc-now.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121016/18380820726/cant-win-em-all-uber-gives-up-attempt-to-do-ubertaxi-nyc-now.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121016/18380820726/cant-win-em-all-uber-gives-up-attempt-to-do-ubertaxi-nyc-now.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>more-regulatory-fighting</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121016/18380820726</wfw:commentRss>
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<pubDate>Tue, 16 Oct 2012 07:19:09 PDT</pubDate>
<title>Why Regulations Aimed At Technology Almost Always Suck: Or Why Reading Someone's Gmail Isn't Reading 'Stored Communications'</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121015/03435320703/why-regulations-aimed-technology-almost-always-suck-why-reading-someones-gmail-isnt-reading-stored-communications.shtml</link>
<guid>http://www.techdirt.com/articles/20121015/03435320703/why-regulations-aimed-technology-almost-always-suck-why-reading-someones-gmail-isnt-reading-stored-communications.shtml</guid>
<description><![CDATA[ There have been a couple of stories covering the fact that the South Carolina Supreme Court has ruled that reading someone's Gmail <a href="http://arstechnica.com/tech-policy/2012/10/reading-someones-gmail-doesnt-violate-federal-statute-court-finds/" target="_blank">does not violate the Stored Communications Act</a>, a part of ECPA -- a law we've written about a number of times for being completely out-of-date.  Orin Kerr has <a href="http://www.volokh.com/2012/10/10/sourth-carolina-supreme-court-deepens-split-on-privacy-in-stored-e-mails-and-divides-2-2-1-on-the-rationale/?ModPagespeed=noscript" target="_blank">a good breakdown of the details</a>, if you want to read them.  What struck me most, however, is how this case is a near perfect example of the kind of mess we get into when politicians try to regulate technology.  Technology changes much, much, much faster than the law, and because of that, you get very silly results.  The key issue here is that the Stored Communications Act is now found in <a href="http://www.law.cornell.edu/uscode/text/18/2701" target="_blank">18 U.S.C. 2701</a> -- and it defines the offense as occurring when someone "obtains, alters or prevents" access to communication "while it is in electronic storage."  Now, for the purpose of the law, "electronic storage" is defined over in <a href="http://www.law.cornell.edu/uscode/text/18/2510" target="_blank">18 U.S.C. 2510</a>, with the relevant definition noting: 
<blockquote><i>
&#8220;electronic storage&#8221; means--<br />
(A) any temporary, intermediate storage of a wire or electronic communication incidental to the electronic transmission thereof; and<br />
(B) any storage of such communication by an electronic communication service for purposes of backup protection of such communication; 
</i></blockquote>
Got that?  It must have seemed reasonable at the time it was written, but it makes little sense these days, and is apparently so misaligned with reality today that this one single case interprets that definition in <i>three different ways</i>, and exactly <i>none</i> of those ways agree with a 9th Circuit ruling in Theofel v. Farey-Jones.  There's disagreement over the meaning of "backup" in part (B) in particular.  Is that backup for the user?  Or for the service provider?  And then, how do you figure out what is or what is not backup?  If a person reads his or her Gmail account, then the message was copied to his or her local machine inside the browser.  Thus, it seems reasonable to argue that the copy that remains on the server is a backup copy.  But two of the judges in this case argued that because the recipient had not "downloaded" any other copies of the message to store, then the ones on the server were not "backups."  This makes little sense because copies were downloaded, but many non-technical people don't understand how browsers really work.
<br /><br />
Other judges focus on whether or not your webmail account is really "backup" for the ISP.  Either way, the end conclusions: webmail is not considered "electronic storage" under the law for the purpose of the Stored Communications Act.  While accessing someone's email can (and likely does) still violate other laws, the very law that most people would probably think most directly applies, almost certainly does not.
<br /><br />
The reality is that, when it was passed, back in 1986, it probably seemed to make sense that "stored communications" would only be done for backup.   While there were networked client/server type setups at the time, it's doubtful that the folks who wrote the law could have fathomed something like webmail or other online forms of communication.  If we're talking about "stored communications" today, it seems ridiculous to have it not cover web-based mail systems or social networks.  But the law doesn't seem to support that view -- because the law is incredibly out-of-date.  But, of course, the problem with fixing the law is that lawmakers will, again, have trouble figuring out where we'll be just a few years out, and the law may either fail to cover what it thinks it covers or (perhaps worse) cover stuff that should be perfectly legal.
<br /><br />
And this, of course, is what we fear when it comes to politicians meddling in technology.  Even when they have the best of intentions, technology changes rapidly -- and old and obsolete definitions get left in the law and can create problems or situations that make very little sense.  If Congress were able to clean those up quickly, perhaps there wouldn't be a problem, but Congress isn't known for fixing real problems quickly.  We've been hearing talk of fixing ECPA for years, and it seems unlikely to happen for a while.<br /><br /><a href="http://www.techdirt.com/articles/20121015/03435320703/why-regulations-aimed-technology-almost-always-suck-why-reading-someones-gmail-isnt-reading-stored-communications.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121015/03435320703/why-regulations-aimed-technology-almost-always-suck-why-reading-someones-gmail-isnt-reading-stored-communications.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121015/03435320703/why-regulations-aimed-technology-almost-always-suck-why-reading-someones-gmail-isnt-reading-stored-communications.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>don't-let-them-near-technology</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121015/03435320703</wfw:commentRss>
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<pubDate>Fri, 12 Oct 2012 12:29:30 PDT</pubDate>
<title>The 'Cloud Computing Act Of 2012'... Or How Internet Regulation Can Go Awry</title>
<dc:creator>Eric Goldman</dc:creator>
<link>http://www.techdirt.com/articles/20121011/16222720684/cloud-computing-act-2012-how-internet-regulation-can-go-awry.shtml</link>
<guid>http://www.techdirt.com/articles/20121011/16222720684/cloud-computing-act-2012-how-internet-regulation-can-go-awry.shtml</guid>
<description><![CDATA[ <p>Sen. Amy Klobuchar has introduced a new bill, the "<a href="http://beta.congress.gov/bill/112th/senate-bill/3569/text">Cloud Computing Act of 2012</a>" (S.3569), that purports to "improve the enforcement of criminal and civil law with respect to cloud computing." Given its introduction so close to the election, it's doubtful this bill will go anywhere. Still, it provides an excellent case study of how even well-meaning legislators can botch Internet regulation.</p>

<p><strong>What the Bill Does</strong></p>

<p>From its 1980s origins as a law restricting hacking into government computers, the Computer Fraud and Abuse Act (CFAA) has morphed into a general-purpose federal law against trespassing on anyone else's computers. With that breadth, the CFAA extends to a wide variety of activities, ranging from data scraping (see, e.g., <a href="http://openjurist.org/274/f3d/577/ef-cultural-travel-bv-v-explorica-inc">EF Cultural Travel v. Explorica</a>) to fake profiles (see, e.g., the <a href="http://blog.ericgoldman.org/archives/2009/08/lori_drew_crimi.htm">Lori Drew prosecution</a>&nbsp;related to Megan Meier's death) to ex-employees walking out the door with competitively sensitive information (see, e.g., <a href="http://blog.ericgoldman.org/archives/2012/05/nosal_en_banc.htm">US v. Nosal</a> and <a href="http://blog.ericgoldman.org/archives/2012/07/4th_circuit_lim.htm">WEC v. Miller</a>).</p>

<p>The proposed bill's main substantive provisions attempt to give "cloud computing services" extra protections under the CFAA. First, the bill says that each unauthorized access of a cloud computing account counts as a separate CFAA offense. Second, the bill specifies a formula for computing losses in CFAA violations involving cloud computing services, setting a minimum floor of $500 loss per affected cloud computing account.</p>

<p><strong>Problems with the Bill&nbsp;</strong></p>

<p><em>The CFAA is Already a Mess.</em>&nbsp; Good luck trying to read the <a href="http://www.law.cornell.edu/uscode/text/18/1030">CFAA's text</a>. Constant amendments over the years have created&nbsp;<a href="http://en.wikipedia.org/wiki/Spaghetti_code">spaghetti code</a>. This bill adds only slightly to the CFAA's overall lack-of-tidiness, but every incremental amendment makes the CFAA more unwieldy.</p>

<p><em>The Definition of "Cloud Computing Service" is Incoherent. </em>The bill seeks to protect cloud computing services, but what are those? Check out the bill's definition:</p>

<blockquote><em>the term "cloud computing service" means a service that enables convenient, on-demand network access to a shared&nbsp;pool of configurable computing resources (including networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort&nbsp;or interaction by the provider of the service.</em></blockquote>

<p>What??? This sounds more like a vendor's sales pitch than a basis for criminal prosecution. We can reinforce the definition's weakness by trying to determine what <em>isn't</em> a cloud computing service. Every user-generated content website seems to qualify; but so should every online bank. In fact, this definition of cloud computing service probably becomes co-extensive with the Internet generally.</p>

<p>To be fair, the failed definition isn't totally the drafter's fault. I don't think it's possible to define "cloud computing service" precisely. Tip to legislators: if you can't clearly define your subject matter of your legislation, you're probably doing something wrong.</p>

<p><em>What's the Problem That Needs to Be Solved?</em> I can't figure out how the proposed amendments address any problem we're seeing in the field. It's possible I've missed some relevant case, but I can't think of a single case I've seen where the CFAA underprotected a cloud computing service or this legislation would have changed the outcome. Seeking some clarity, I submitted a press inquiry to Sen. Klobuchar's office last week and got no response. So I have no idea what problem this bill purports to solve.</p>

<p><strong>Implications</strong></p>

<p>This bill exemplifies several ongoing problems with efforts to legislate the Internet:</p>

<p>1) <em>Legislative grandstanding</em>. It's flashy for legislators to tell their constituents that they are fighting hard to protect emerging technologies like "cloud computing." But legislators rarely understand cutting-edge technologies, and usually rapidly evolving technologies are poor candidates for legislative intervention. So legislators' efforts to push buzzword-laden legislation are often more for show than substance.</p>

<p>2) <em>Regulatory exceptionalism</em>. As I explain <a href="http://blog.ericgoldman.org/archives/2009/03/the_third_wave.htm">here</a>, legislators keep creating new "exceptionalist" rules for subsets of the Internet ecosystem--online dating sites, social networks, cloud computing services, etc. We saw how well that worked in <a href="http://www.forbes.com/sites/ericgoldman/2012/09/28/big-problems-in-californias-new-law-restricting-employers-access-to-employees-online-accounts/">California's effort to ban employers from asking employees for social media login credentials</a>. California so utterly failed at defining "social media" that it simply covered the entire Internet...and all non-networked electronic data too! Yet, legislators seemingly haven't learned from their colleagues' repeated failed efforts to precisely define the contours of some Internet subcommunity. The proposed CFAA amendment, and its gibberish definition of "cloud computing service," exemplifies this.</p>

<p>3) <em>Code proliferation</em>. For every problem, real or perceived, legislators think they can fix the problem with more regulatory code. But the manufacturing of new legal code exacts a toll of its own. This bill increases the CFAA's complexity with minimal or zero commensurate benefit. If Sen. Klobuchar or anyone else really wants to "fix" the CFAA, a good start would be to reduce the law's length, organize it better, and reduce its implications for users' ordinary Internet activity.</p><br /><br /><a href="http://www.techdirt.com/articles/20121011/16222720684/cloud-computing-act-2012-how-internet-regulation-can-go-awry.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121011/16222720684/cloud-computing-act-2012-how-internet-regulation-can-go-awry.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121011/16222720684/cloud-computing-act-2012-how-internet-regulation-can-go-awry.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>paved-with-good-intentions</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121011/16222720684</wfw:commentRss>
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<pubDate>Wed, 10 Oct 2012 11:06:05 PDT</pubDate>
<title>Auto Dealers Complain That Tesla Stores Are Illegal... Despite Not Actually Selling Anything</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20121008/15521020645/auto-dealers-complain-that-tesla-stores-are-illegal-despite-not-actually-selling-anything.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20121008/15521020645/auto-dealers-complain-that-tesla-stores-are-illegal-despite-not-actually-selling-anything.shtml</guid>
<description><![CDATA[ Another day, another story of stupid protectionist regulations getting in the way of anyone trying to be innovative.  This time, it's about Tesla, the well known electric car company based out here in California.  Apparently, various states have set up ridiculous protectionist laws that say it's illegal for automakers to sell cars directly to consumers in retail settings.  The various car dealer lobbyists who pushed to get those laws passed are <a href="http://www.wired.com/autopia/2012/10/tesla-dealer-illegal/?utm_source=feedburner&#038;utm_medium=feed&#038;utm_campaign=Feed%3A wired%2Findex %28Wired%3A Top Stories%29" target="_blank">now complaining that Tesla and its high end "stores" violate that law</a> -- despite the fact that you can't actually buy a Tesla car in a Tesla store.  In order to stay on the correct side of these idiotic laws, you can go into the stores and <i>learn</i> all about the Tesla... but if you want to buy, you have to go online and put money down via Tesla's website.  The dealers are arguing that "anything that gets you to the executed contract is part of the sale," but that's ridiculous.  A magazine ad.  A TV commercial.  Plenty of other things can "get you to the executed contract" and are perfectly reasonable.
<br /><br />
What's really going on here is that states have passed these protectionist laws to help out independent dealerships who worried that car companies might decide to cut out one of the more annoying middlemen in the world and go direct to consumers.  So they passed these laws which serve no purpose, whatsoever, other than to encourage greater annoyance and overhead for car buyers.  Just the fact that you can't actually buy a Tesla at a store should highlight how silly this -- but the fact that these dealers are <i>still complaining</i> and arguing that the company violates the law shows just how petty they can be.<br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20121008/15521020645/auto-dealers-complain-that-tesla-stores-are-illegal-despite-not-actually-selling-anything.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20121008/15521020645/auto-dealers-complain-that-tesla-stores-are-illegal-despite-not-actually-selling-anything.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20121008/15521020645/auto-dealers-complain-that-tesla-stores-are-illegal-despite-not-actually-selling-anything.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>stupid-regulations</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121008/15521020645</wfw:commentRss>
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<pubDate>Fri, 21 Sep 2012 13:32:51 PDT</pubDate>
<title>Uber's Most Important Innovation: Highlighting Totally Bogus Local Restrictions</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120921/01352320456/ubers-most-important-innovation-highlighting-totally-bogus-local-restrictions.shtml</link>
<guid>http://www.techdirt.com/articles/20120921/01352320456/ubers-most-important-innovation-highlighting-totally-bogus-local-restrictions.shtml</guid>
<description><![CDATA[ It's baaaaaaack.  Despite a <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">summer uproar</a> that caused the DC taxicab commission to <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">dump</a> a proposed plan that would have artificially kept Uber's prices high, the commission <a href="http://www.slate.com/blogs/moneybox/2012/09/20/uber_vs_the_dc_taxi_commission_new_rules_designed_to_kill_uber_s_business.html" target="_blank">is back</a>, and it's got another <a href="http://newsroom.dc.gov/show.aspx?agency=dctaxi&#038;section=2&#038;release=23688&#038;year=2012&#038;file=file.aspx%2frelease%2f23688%2fChapter%252014%2520Proposed%2520Rulemaking%2520Sedan%2520Class.pdf" target="_blank">(bad) proposed rule</a> (pdf) that would make life difficult for Uber and its independent drivers.
<br /><br />
If you're unfamiliar with Uber, it's a pretty great service that makes it really easy to use your phone to get a car (usually a black car akin to a typical car service, but in some cases smaller cars or even actual cabs).  Users have a credit card on file, so you never have to even handle payment stuff as it's all done automatically.  It's also been innovative in how it works with drivers, who are independent contractors.  Using Uber is more expensive than a cab, but it's so easy and useful that almost everyone I know who uses it, loves it.
<br /><br />
However, taxi and limo services are some of the most highly regulated local markets out there, and Uber just keeps running up against those random or pointless rules and regulations.  In this case, the new DC rules clearly seem designed to mess with Uber.  Among some other things, it would require drivers to give riders a paper receipt, and would also say that you can't have a car business with fewer than 20 cars.  That really mucks with the way Uber partners with drivers, who are often one-man (or woman) shops, doing this to make money.  But, in some cases, they can also allow someone to build up their own "fleet" of cars, but which operate via Uber's platform.   But under these rules, it may be difficult for drivers, or for entrepreneurs buying up a few cars, to really embrace this model.  Finally, the new rules prohibit dropping people off outside of DC by saying you have to stay within the territory you're registered in.
<br /><br />
For its part, the DC taxicab commission <a href="http://www.washingtoncitypaper.com/blogs/citydesk/2012/09/20/new-regulations-could-finally-kill-uber-in-d-c-says-ceo/" target="_blank">disagrees with Uber's assessment of the new rules</a> expressing a clear bit of frustration with the company:
<blockquote><i>
"They don't what they're talking about," Linton says. "They often don't know what they're talking about."
</i></blockquote>
He also pushed back on a few other points:
<blockquote><i>
According to Linton, the regulations would still allow for independent sedan operators with one car, and would only eliminate companies with a handful of cars that he says most frequently try to game the system. Linton says paper receipts will prevent drivers from charging for miles they didn't drive, and the regulations will only prevent sedans from operating in jurisdictions they aren't registered in&#8212;i.e., an Uber trip from Maryland to D.C. could be driven by a car from Maryland or D.C., but not from Virginia.
</i></blockquote>
In other words, he's got perfectly good reasons that the rules aren't bad... except for the simple fact that none of his explanations make sense.  Even if it does allow single car operators, why should it be illegal to own between 2 and 19 cars?  They say the smaller shops often game the system -- but in that case, go after them for such gaming of the system.  Don't completely wipe out all the other good players with such a broad blanket ban.  As for paper receipts... huh? I don't see how a paper receipt prevents a driver from overcharging.  Even worse, this somehow suggests that Uber's drivers are doing that.  But I've never seen or heard any such complaints against Uber.  Is there anyone clamoring for a paper receipt from Uber?  And, if there are such mysterious people out there... um... is it really that important to pass a rule for them?
<br /><br />
Honestly, these rules seem much more designed -- as so many rules are -- to protect legacy players against upstarts like Uber.
<br /><br />
And, of course, this is happening all over the place.  We already covered the situation in <a href="http://www.techdirt.com/articles/20120814/14441720049/boston-shuts-down-uber-because-massachusetts-doesnt-approve-gps.shtml">Boston</a>, but there was recently a similar mess <a href="http://www.huffingtonpost.com/2012/09/06/taxi-hailing-app-uber-new-york-city_n_1862249.html" target="_blank">in New York City</a> where Uber partners with real cabs (as opposed to car service cars), but which the city is trying to block. 
<br /><br />
All of these efforts seem like crony capitalism at its best: taking existing inefficient systems, and then blocking unique innovators, whose customers seem pretty damn happy for the most part.  Uber, of course, long ago realized something very simple: even though it's fighting these battles on every front, the publicity from it is the best advertising it could ever get.  In fact, we've heard that the use of the service tends to go up significantly after such fights.  This, of course, frustrates Uber-critics on things like the taxicab commission, as they suggest that Uber complains about these things solely for the publicity.  Even if that <i>was</i> the case, I don't see how Uber's wrong.  If it gives them publicity for a service people like, more power to them.  The real question should be why we still allow such a blockade on innovation by various taxi commissions.<br /><br /><a href="http://www.techdirt.com/articles/20120921/01352320456/ubers-most-important-innovation-highlighting-totally-bogus-local-restrictions.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120921/01352320456/ubers-most-important-innovation-highlighting-totally-bogus-local-restrictions.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120921/01352320456/ubers-most-important-innovation-highlighting-totally-bogus-local-restrictions.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>keep-it-up</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120921/01352320456</wfw:commentRss>
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<pubDate>Thu, 6 Sep 2012 09:08:16 PDT</pubDate>
<title>Is The Tide Turning On Bad Copyright Laws?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120905/02125120278/is-tide-turning-bad-copyright-laws.shtml</link>
<guid>http://www.techdirt.com/articles/20120905/02125120278/is-tide-turning-bad-copyright-laws.shtml</guid>
<description><![CDATA[ The Economist has an interesting article suggesting that perhaps the tide is <a href="http://www.economist.com/node/21561885" target="_blank">finally turning on bad copyright laws</a>, and we're beginning to see real efforts at reforming copyright in the right direction:
<blockquote><i>
Canada passed a law in June that sets a new standard of permissiveness. It caps statutory damages if copyright is breached for non-commercial purposes. It expands the definition of &#8220;fair dealing&#8221; (&#8220;fair use&#8221; in America) and creates exemptions for educational purposes and for parody. Firms must pass warnings about infringement to the person who posted the material rather than immediately take the content down themselves. This contrasts with practice in America and Europe, where a web company alerted to infringing material must remove it. This encourages knee-jerk responses to complaints.
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Britain too plans to introduce internet-friendly legislation this autumn after a review led by Ian Hargreaves, professor of digital economy at Cardiff University. As with Canada&#8217;s law, the recommended new code entails exemptions for non-commercial uses and user-generated content. Also mooted is a &#8220;digital copyright exchange&#8221; that would establish a marketplace for copyright. A musician could list her song and the licensing terms. A filmmaker wanting to use it would know quickly and simply what to do.
</i></blockquote>
It also talks about how Ireland and Australia are both exploring more open and internet friendly copyright reforms.  The article does note that this is not all going smoothly.  There are efforts to create taxes on content to preserve old business models, for example.  But it does seem like, for the first time in pretty much anyone's lifetime, there actually are real and legitimate efforts to push back on the excesses of copyright law, with the recognition that it's done more harm than good.
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I'm not quite as optimistic as the Economist piece, as almost all of those efforts (Canada excepted, and even that came with bad digital locks/DRM anti-circumvention provisions) are still nascent and are facing tremendous lobbying pressure to go in the other direction.  Furthermore, we just got through the SOPA and ACTA fights, and the latest round of TPP negotiations are going on as we speak.  Plus, there's plenty of evidence suggesting that even as the RIAA and MPAA have had their budgets slashed, they're gearing up to continue the push for copyright maximalism in all corners.  There are inklings of hope and greater and greater recognition of the problem, but I'd say that we're a long, long way from seeing the tide really turn -- and there's still an unfortunately large possibility of things going back to maximalism-as-usual.<br /><br /><a href="http://www.techdirt.com/articles/20120905/02125120278/is-tide-turning-bad-copyright-laws.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120905/02125120278/is-tide-turning-bad-copyright-laws.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120905/02125120278/is-tide-turning-bad-copyright-laws.shtml?op=sharethis">Email This Story</a><br />
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<slash:department>maybe...</slash:department>
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<pubDate>Wed, 5 Sep 2012 09:19:00 PDT</pubDate>
<title>Big Banks Finally Punishing Employees For Fraud... Like The Call Center Guy Who Used A Fake Dime 50 Years Ago</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120905/00533920276/big-banks-finally-punishing-employees-fraud-like-call-center-guy-who-used-fake-dime-50-years-ago.shtml</link>
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<description><![CDATA[ Wells Fargo, of course, was one of a bunch of the big banks heavily involved in questionable activities that brought the world to the precarious economic conditions we're still living in today.  Just a few weeks ago, the company <a href="http://www.huffingtonpost.com/2012/08/14/wells-fargo-sec_n_1775944.html" target="_blank">settled charges</a> that it had misled cities and non-profits when selling them risky securities without disclosing the risks.  The company gets a slap on the wrist -- without having to admit guilt -- and one executive (again without admitting guilt) gets a six month suspension.  Have you heard about any top execs at any of the banks getting fired for financial malfeasance?  No?  Well, perhaps it's because they're focusing on the <i>real</i> trouble makers.  Like Richard Eggers.  49 years ago, Eggers, as a teenager, tried to stick a cardboard cutout of a dime into a washing machine.  He didn't get away with it at the time, and was arrested for fraud.  He somehow put his life back together and, until recently, was a phone customer service agent for Wells Fargo.
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And now he's really paying the piper: Wells Fargo has <a href="http://newsfeed.time.com/2012/09/02/wells-fargo-fires-employee-who-committed-10-cent-fraud-in-1963/" target="_blank">just fired him for the decades-old incident</a> that, again, involved <i>a dime</i>.  Even accounting for inflation, we're talking about <i>a dime</i>.  However, thanks to supposedly "tough" new regulations concerning financial institutions, barring them from employing execs convicted of fraud, Wells Fargo is claiming that it had to fire Eggers.
<blockquote><i>
&#8220;We don&#8217;t have discretion to grant exceptions in situations like this. Once we find out someone has a criminal history of dishonesty or breach of trust we can no longer employ them.&#8221;
</i></blockquote>
Eggers has responded by <a href="http://blogs.desmoinesregister.com/dmr/index.php/2012/09/04/wells-fargo-employee-fired-for-cardboard-dime-files-civil-rights-complaint/" target="_blank">filing a civil rights complaint</a> against the company and federal regulators.  He and his lawyers are hoping to turn it into a class action lawsuit, as apparently a number of other employees at banks have lost their jobs under these rules.  Actual execs responsible for the financial crisis?  Not so much.
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This is yet another case where laws like this must "sound good at the time" to the policy makers putting them together without any sense of who it will really impact.  And the end result is that we sure are making Mr. Eggers "pay" for that dime stunt in 1963, huh?<br /><br /><a href="http://www.techdirt.com/articles/20120905/00533920276/big-banks-finally-punishing-employees-fraud-like-call-center-guy-who-used-fake-dime-50-years-ago.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120905/00533920276/big-banks-finally-punishing-employees-fraud-like-call-center-guy-who-used-fake-dime-50-years-ago.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120905/00533920276/big-banks-finally-punishing-employees-fraud-like-call-center-guy-who-used-fake-dime-50-years-ago.shtml?op=sharethis">Email This Story</a><br />
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<slash:department>rules-are-rules?</slash:department>
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