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<title>Techdirt. Stories filed under &quot;services&quot;</title>
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<item>
<pubDate>Tue, 23 Apr 2013 07:28:00 PDT</pubDate>
<title>The Copyright Lobotomy: How Intellectual Property Makes Us Pretend To Be Stupid</title>
<dc:creator>Leigh Beadon</dc:creator>
<link>http://www.techdirt.com/articles/20130410/12051322665/copyright-lobotomy-how-intellectual-property-makes-us-pretend-to-be-stupid.shtml</link>
<guid>http://www.techdirt.com/articles/20130410/12051322665/copyright-lobotomy-how-intellectual-property-makes-us-pretend-to-be-stupid.shtml</guid>
<description><![CDATA[ <p>
Here are two words that have no business hanging out together: "used MP3s." If you know anything about how computers work, that concept is intellectually offensive. Same goes for "ebook lending", "digital rental" and a host of other terms that have emerged from the content industries' desperate scramble to do the impossible: adapt without changing.
</p>
<p>
These concepts are all completely imaginary, and yet we treat them as if they are real, and have serious discussions about every last detail of how they function &#8212; like a debate about the best mutant superpower, but with multimillion dollar lawsuits. Copyright necessitates that we all pretend we don't know any better. It makes us act stupid.
</p>
<p>
Take "used MP3s" for example. The idea is instantly nonsensical, and proposing it seems on par with asking how all those people fit inside the television. A "used MP3" is indistinguishable from a "new" one, and on the internet there's no such thing as an individual, discrete copy of an MP3 that gets "moved" from one person to another anyway. Speaking even more broadly, a "file" is not a "thing" at all &mdash; it's a concept that we use to help organize and visualize the even more abstract concept of "information" in many different places and states, whether magnetically inscribed on a hard disk platter or being transmitted via radio waves (not to mention the internal operation of a computer, where pieces of the information are shunted around between multiple different components and caches).
</p>
<p>
A "file" is an <em>analogy</em>, and like all analogies, it's incomplete. It breaks down when taken too far, and then it must be discarded, because analogies only exist for our convenience. "Moving" a file is also an analogy &mdash; in reality, we are copying it and then deleting the original. Even deleting a file is usually an analogy &mdash; the data is still recoverable, the computer has just been instructed to pretend it's not there anymore.
</p>
<p>
The purpose of these analogies is <em>not</em> to impose limitations on reality. We don't give up the ability to copy a file because we simulated the ability to move it. We don't have to pretend information degrades like physical objects just because we chose to conceptualize it that way. If we want to describe something as "the size of 10 football fields", we don't demand there be gridiron lines painted on it. There's a reason that stubbornly sticking with analogies is referred to as <em>torture</em>, and every discussion about "used files" or the difference between moving and copying is another turn of the screw.
</p>
<p>
Because of copyright, we are constantly asked to pretend that these analogies are binding. When we "lend" a Kindle ebook, we must pretend that we gave a <em>thing</em> away and don't have it for a while, when in fact our device is just refusing to let us access it. When a library wants to lend out ebooks, they must pretend they have a "limited number of copies available." When we buy software with an activation code, we must pretend that we "only bought one" and thus can only have it in one place at a time. When we rent a digital movie, we must pretend that we "have to give it back". We have to pretend we're stupid and that our devices have limitations which don't actually exist.
</p>
<p>
But here's the real kicker: the moment there might be any benefit to the consumer, the content companies toss the analogy out the window, and suddenly want to talk about reality. Thus you get things like ReDigi, the would-be used MP3 market that recently <a href=&#8221;http://www.techdirt.com/articles/20130401/11341622538/redigi-loses-selling-used-mp3s-online-infringes-first-sale-doesnt-apply-to-digital-transfers.shtml&#8221;>lost</a> in court. ReDigi attempted to make MP3s simulate discrete items by <em>enforcing</em> the analogy of "moving a file" using a monitoring system, such that when you sold an MP3 to someone, it would make sure you deleted your own copy. Though we always suspected it was <a href="http://www.techdirt.com/articles/20120208/04324417700/judge-denies-injunction-against-mp3-reseller-due-to-lack-irreparable-harm-says-emis-arguments-compelling.shtml">doomed</a>, it was at least rather fascinating from a legal and policy perspective, potentially creating a clash between copyright and first sale rights. After all, if we are expected to treat digital files like physical property, we should at least be getting the rights that come with that.
</p>
<p>
But this time the record labels wanted to focus on the fact that there's no such thing as moving a file, and pointed out that ReDigi involved making copies whether or not it also involved deleting other copies &mdash; and the judge agreed. This is actually <em>correct</em>, technically and realistically &mdash; just don't tell them that next time, when it doesn't benefit them and they're back to calling infringement theft. As if to underline their masterful doublethink when it comes to the nature of property, the labels are all about having their cake and eating it too.
</p>
<p>
ReDigi is hardly the only example. We've written before about the <a href="https://www.techdirt.com/blog/innovation/articles/20120830/13260820222/how-copyright-has-driven-online-streaming-innovators-insane.shtml">insane situation</a> with TV and movie streaming, where companies do things like set up a warehouse full of separate DVD players that stream from individual discs, or install a separate TV antenna on the same rooftop for every customer who wants an online stream. They are forced to willfully ignore technological capabilities, engineering principles and simple common sense just to conform to all these broken analogies &mdash; and they still face massive opposition from content owners and broadcasters every step of the way.
</p>
<p>
The real issue, when you get down to it, is that copyright itself is imaginary. A "song" or a "novel" is just as analogical as a "file". Originally, copyright law was very concerned with separating the expression of an idea from the idea itself, and in theory that's still the case, but in practice the line has proven almost impossible to draw. So first we conceptualize an abstract thing like "content" as discrete pieces, then we conceptualize all the abstract rights associated with those pieces, and then we conceptualize the discrete units of distribution and ownership within those rights.
</p>
<p>
These are all imaginary concepts, built on top of other imaginary concepts, built on top of <em>still more</em> imaginary concepts. It's turtles all the way down.
</p>
<p>
This does <em>not</em> necessarily mean that there's no place for copyright in the world. But in order for it to function, we have to remember that it's an analogy &mdash; it's something chosen and used to achieve a purpose, not something that binds and shapes reality, or that we must conform to at the expense of our better judgement. Originally, copyright was just that: a <em>choice</em> by society to employ the analogies of ownership and property in limited, specially-tailored ways in order to achieve a desired result &mdash; a flourishing intellectual and artistic economy. Today, copyright is worlds away from what it was then, and it does more to hinder that goal than help it... but many people seem to have forgotten that it's a just a tool, and we can always put it down.
</p>
<p>
In all the discussion about the various reasons people give for violating copyright, I think there's one that goes unmentioned: a lot of people just refuse to pretend to be stupid.
</p><br /><br /><a href="http://www.techdirt.com/articles/20130410/12051322665/copyright-lobotomy-how-intellectual-property-makes-us-pretend-to-be-stupid.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130410/12051322665/copyright-lobotomy-how-intellectual-property-makes-us-pretend-to-be-stupid.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130410/12051322665/copyright-lobotomy-how-intellectual-property-makes-us-pretend-to-be-stupid.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>or:-how-to-build-an-intellectual-cage</slash:department>
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<pubDate>Fri, 29 Mar 2013 19:39:00 PDT</pubDate>
<title>This Is Not The Cloud Computing We Should Have</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20130321/01021322403/this-is-not-cloud-computing-we-should-have.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20130321/01021322403/this-is-not-cloud-computing-we-should-have.shtml</guid>
<description><![CDATA[ Even though I was never a big Google Reader user, its <a href="http://www.techdirt.com/articles/20130313/17262322315/killing-google-reader-highlights-risk-relying-single-provider.shtml">death</a> has got me thinking about online services quite a bit lately -- and really reminded me that <b>we've done the cloud wrong</b>.  Rather than build true cloud computing, we've built a bunch of lockboxes.
<br /><br />
<b>The cloud was supposed to free us, not lock us in</b>
<br /><br />
"Cloud computing" went by a variety of other terms in the past before this marketing term stuck, but the key part of it was that it was supposed to free us of worrying about the location of our data.  Rather than having to have things stored locally, the data could be anywhere, and we could access it via any machine or device.  That <i>sort of</i> happened, and there definitely are benefits to data being stored in the cloud, rather than locally.  But... what came with today's "cloud" was a totally different kind of lock: a lock to the service.
<br /><br />
<b>I can point many apps to data stored locally</b>
<br /><br />
I wrote something related to this a few years ago, concerning <a href="http://www.techdirt.com/articles/20110606/13200014569/were-missing-point-cloud-its-not-supposed-to-be-locked-to-single-service.shtml">music in the cloud</a>.  If I have a bunch of MP3s stored locally, I can point any number of music apps at my music folder, and they can all play that music.  As long as the data is not in a proprietary format, I can find the app that works best for me and the data is separate from the app.  Even when you have proprietary formats like Microsoft's .doc, other apps can often make use of them as well -- so, for example, I can get by with Libre Office, and I don't lose access to all of my old Microsoft Word docs.
<br /><br />
This is really useful, because it helps us avoid vendor lock-in in many cases.  Even when, say, Microsoft or Apple dominates the market.  It's still possible to come in and be compatible.  The competition then focuses on building better services, rather than reinventing the data model.  That's much more useful to consumers, because the innovation is focused on making their lives better, rather than reinventing the wheel.
<br /><br />
<b>Today's cloud brings us back to walled gardens</b>
<br /><br />
For the most part, today, however, "cloud" applications bundle the storage and the service as one, and the two are linked inseparably.  You check your data into a new cloud service, but the application layer and the data are both held by the same company.  Yes, you can often <i>transfer</i> data from one service to the other -- such as Google's "data liberation front" effort, which is fantastic (and goes beyond many other companies' efforts), but just the fact that data needs to be liberated suggests we're taking the wrong approach altogether.  Rather than having to "export" all of your feeds from Google Reader and then waiting patiently for 50,000 other people who are trying to upload them to the few small Reader competitors out there, why shouldn't we have each had an OPML file stored somewhere that <i>we control</i>, and that we could easily point <i>any</i> reader application, whether its local or "in the cloud."  And, yes, there are some services that attempt to do this, but it's not where the whole "cloud" space has gone.
<br /><br />
<b>Separate and liberate the data from the infrastructure</b>
<br /><br />
What the cloud should be about is both freeing us from being locked to local data, and <i>also</i> freeing us from having that data locked to a particular service.  I should be able to keep my data in one spot and then access it via a variety of cloud clients -- and the clients and the data shouldn't necessarily be directly connected or held by the same party.  If I don't want to listen to my music via one app, I can just connect a different app to my personal data cloud and off we go.  If Google Reader shuts down, no problem, just point a different app at my RSS data.  No extraction, no uploading.  Just go.
<br /><br />
There are, of course, plenty of players around which sort of do this.  DropBox, Box, Amazon's S3 and even Google Drive are setting themselves up as personal data clouds, and there are a growing number of apps that run across them.  Projects like <a href="http://lockerproject.org/" target="_blank">the Locker Project</a> are thinking about how we store personal data separated from apps as well.  And I know there are a bunch of other projects either around today or quickly approaching release, that also seek to do something in this space.
<br /><br />
But, for the most part, all of the stories that people talk about concerning "cloud" computing almost always involve services that tie together the app and the data and all you're really doing is trading the former limitations of local data for the limitations of a single service provider controlling your data.  Many service providers <i>want</i> this, of course.  It's a form of lock-in.  Plus, having some sort of access to your data and your usage can enable them to do other things, such as more accurately data mine you and your usage.
<br /><br />
But, as users, we really should be pushing more towards embracing the apps that separate the app from the data and that let you point their "cloud" app at any particular place you store your "cloud" data.  Some of this may involve standardizing certain data formats, but that makes sense anyway, as, once again, that's an area where there are tremendous benefits to <b>not</b> reinventing the wheel, so that the innovation and competition can focus on the service level.  While some vendors may fear losing lock-in, if they truly believe in their own ability to provide great services, it shouldn't be a problem.  At the same time, they should also realize that embracing this kind of world means that it's easier for others to jump in and test <i>their</i> services as well.
<br /><br />
The death of Google Reader raised a lot of issues around trust, and while you could "export" the data, that process is still messy and archaic when you think about it.  The future of cloud computing should be much more focused on separating the data from the service.  That would remove the fear that many are now talking about concerning adopting new cloud services that might not last very long.  If the data is stored elsewhere, and entirely in the control of the user, then you don't need to trust the service provider nearly as much, but can dip in and test out different apps operating on the same data, and switch with ease.
<br /><br />
If we're going to see the real promise of "the cloud" take place, that's where things need to head.  We should be increasingly skeptical of "cloud" apps that also control the data.<br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20130321/01021322403/this-is-not-cloud-computing-we-should-have.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20130321/01021322403/this-is-not-cloud-computing-we-should-have.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20130321/01021322403/this-is-not-cloud-computing-we-should-have.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>we've-got-it-all-wrong</slash:department>
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<pubDate>Thu, 21 Feb 2013 05:51:22 PST</pubDate>
<title>Facebook Apparently Doesn't Believe Anyone Over 100 Could Use The Service, 104 Year Old Has To Lie</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130220/11211422040/facebook-apparently-doesnt-believe-anyone-over-100-could-use-service-108-year-old-has-to-lie.shtml</link>
<guid>http://www.techdirt.com/articles/20130220/11211422040/facebook-apparently-doesnt-believe-anyone-over-100-could-use-service-108-year-old-has-to-lie.shtml</guid>
<description><![CDATA[ There are plenty of stories about children under the age of 13 having to lie (often with the assistance of their parents) to get on Facebook.  This is due to the ridiculous <a href="http://www.techdirt.com/articles/20121220/08112321450/ftcs-overzealous-attempts-to-protect-children-may-do-serious-harm-to-internet.shtml">COPPA</a> law that the FTC supports strongly, despite it doing close to nothing to actually "protect children."  But what's the excuse for people lying at the other end of the scale?  A 104 years old woman is <a href="http://www.sfgate.com/news/article/Woman-104-forced-to-lie-about-age-on-Facebook-4293735.php?cmpid=twitter" target="_blank">forced to be perpetually 99 years old</a> because Facebook apparently refuses ages higher than that.  It makes you wonder if they just never thought someone with three digits in their age would use the service and only set up the database to handle two digits.  Oddly, rather than defaulting down to 99 years old when Marguerite Joseph tried to enter her birth year of 1908, the system automatically took 20 years off her life and said she was born in 1928.  Either way, just as parents are helping children lie about their age at the youth end of the spectrum, in this case, it's Marguerite's granddaughter who's the accomplice here, since Marguerite is legally blind, but still likes to keep in touch with people via Facebook.<br /><br /><a href="http://www.techdirt.com/articles/20130220/11211422040/facebook-apparently-doesnt-believe-anyone-over-100-could-use-service-108-year-old-has-to-lie.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130220/11211422040/facebook-apparently-doesnt-believe-anyone-over-100-could-use-service-108-year-old-has-to-lie.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130220/11211422040/facebook-apparently-doesnt-believe-anyone-over-100-could-use-service-108-year-old-has-to-lie.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>for-the-encouragement-of-lying</slash:department>
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<pubDate>Thu, 13 Oct 2011 16:00:00 PDT</pubDate>
<title>Does Google Have What It Takes To Be A Platform, Rather Than A Product, Company?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20111013/02371616330/does-google-have-what-it-takes-to-be-platform-rather-than-product-company.shtml</link>
<guid>http://www.techdirt.com/articles/20111013/02371616330/does-google-have-what-it-takes-to-be-platform-rather-than-product-company.shtml</guid>
<description><![CDATA[ Nearly seven years ago, I wrote about the idea that there was a "battle to own the internet," and that if Google really wanted to succeed, it had to move away from just being a product company to <a href="http://www.techdirt.com/articles/20041214/1837206.shtml">being a true platform company</a> that had a much more open setup, which did much more to encourage developers to build on top of it.  Over the years, occasionally I've repeated that point.  And while Google has done a few things at the margin, it still has always seemed to resist becoming a true platform.  There are, certainly, some folks inside Google who get this, and I seem to hear from a bunch of them any time I bring this up.  But the company has a history of having trouble really opening up to outside developers.
<br /><br />
So it's really interesting to see this "internal" note from Google employee Steve Yegge, that he accidentally posted publicly via Google+.  It's a <a href="https://plus.google.com/112678702228711889851/posts/eVeouesvaVX#112678702228711889851/posts/eVeouesvaVX" target="_blank">very detailed and honest criticism of the company's attitude on certain things</a>, but not done to slam Google, but rather to push Google to change.  It's getting tons of attention, and Yegge removed the post, but has allowed others to keep up a reposted version.  He's also pointed out that Google PR was <a href="https://plus.google.com/110981030061712822816#110981030061712822816/posts/bwJ7kAELRnf" target="_blank">careful not to pressure him to take down the post</a>, noting that employees are free to express their opinions.
<br /><br />
Some have been reading it as an insider's "attack" on Google, but I don't see that at all.  It seems like a call to action from someone who thinks the company is missing the boat on being a platform.  Yegge spends a lot of time talking (very openly) about his prior experience working at Amazon, and about how Jeff Bezos got the "we need to be a platform" religion big time nearly a decade ago, and effectively forced the entire company to focus on that as job number one.  While Yegge criticizes many problems with Amazon, he does recognize that such a vision has put Amazon in a good position (along with others who have clearly embraced being "the" platform: Facebook, Apple and, almost by accident, Microsoft).
<br /><br />
The key part of the post, which is what many people are focusing on, is where Yegge criticizes Google+, and how it wasn't designed as a platform, whereas its main direct competitor, Facebook, has clearly embraced being a platform in a very meaningful way.
<blockquote><i>
Google+ is a prime example of our complete failure to understand platforms from the very highest levels of executive leadership (hi Larry, Sergey, Eric, Vic, howdy howdy) down to the very lowest leaf workers (hey yo). We all don't get it. The Golden Rule of platforms is that you Eat Your Own Dogfood. The Google+ platform is a pathetic afterthought. We had no API at all at launch, and last I checked, we had one measly API call. One of the team members marched in and told me about it when they launched, and I asked: "So is it the Stalker API?" She got all glum and said "Yeah." I mean, I was joking, but no... the only API call we offer is to get someone's stream. So I guess the joke was on me.
<br /><br />
Microsoft has known about the Dogfood rule for at least twenty years. It's been part of their culture for a whole generation now. You don't eat People Food and give your developers Dog Food. Doing that is simply robbing your long-term platform value for short-term successes. Platforms are all about long-term thinking.
<br /><br />
Google+ is a knee-jerk reaction, a study in short-term thinking, predicated on the incorrect notion that Facebook is successful because they built a great product. But that's not why they are successful. Facebook is successful because they built an entire constellation of products by allowing other people to do the work. So Facebook is different for everyone. Some people spend all their time on Mafia Wars. Some spend all their time on Farmville. There are hundreds or maybe thousands of different high-quality time sinks available, so there's something there for everyone.
<br /><br />
Our Google+ team took a look at the aftermarket and said: "Gosh, it looks like we need some games. Let's go contract someone to, um, write some games for us." Do you begin to see how incredibly wrong that thinking is now? The problem is that we are trying to predict what people want and deliver it for them.
</i></blockquote>
This part rings incredibly true.  I know that when Google+ launched, I liked it as a program, but asked people about APIs, because it needed to better integrate into my workflow -- and was told that that would be coming "sometime later."  And while I still mess around with Goolge+, it's largely become an afterthought to me, because it just lives off in its own separate world, rather than integrating well.  There are still features I like, but until developers have a chance to dive in and make it useful... it just doesn't feel like a necessity.
<br /><br />
But there's a bigger lesson in this, beyond Google's continued platform-itis.  And it goes back to the issue of <a href="http://www.techdirt.com/articles/20090827/0353036021.shtml">cargo cult copying</a> -- a topic I've discussed a number of times.  People seem to think it's easy for companies (especially big companies) to "copy" products of their competitors.  In fact, with Google, many people think it's so easy that there are <a href="http://www.techdirt.com/articles/20110921/12515116041/theres-no-such-thing-as-natural-search-results-search-results-are-inherently-biased.shtml">antitrust investigations going on</a>.  But Google+ and the points that Yegge raise remind us, yet again, that while copying the basic "features" of a product may be possible, really recreating what makes it tick and what makes it successful is difficult.  
<br /><br />
It's easy to copy the superficial.  It's difficult to copy the soul.
<br /><br />
With Google+, the company built a really nice copy (with some clear improvements) of Facebook, the product -- which is the superficial, public-facing part.  But it completely missed the boat on Facebook, the platform -- which is the real soul of what makes Facebook such a powerhouse.  Google certainly can get there.  And, in the back of my mind, I'd always assumed that was exactly the path they were on.  But remembering that post from 2004, and the lack of any sustained, involved effort within and across Google to <i>be a platform</i>, combined with this post from Yegge, again makes me wonder if Google just doesn't recognize the importance of being a platform.
<br /><br />
I've argued in the past that one big achilles heel for Google is its awful reputation when it comes to customer service, but it's lack of deeply ingrained platform-focused thinking may represent a much bigger threat.<br /><br /><a href="http://www.techdirt.com/articles/20111013/02371616330/does-google-have-what-it-takes-to-be-platform-rather-than-product-company.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20111013/02371616330/does-google-have-what-it-takes-to-be-platform-rather-than-product-company.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20111013/02371616330/does-google-have-what-it-takes-to-be-platform-rather-than-product-company.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>the-challenge-is-(still)-on</slash:department>
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<pubDate>Thu, 3 Mar 2011 10:17:06 PST</pubDate>
<title>Music Is Not A Product, And You'll Never Adapt If You Think It Is</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110301/03023713310/music-is-not-product-youll-never-adapt-if-you-think-it-is.shtml</link>
<guid>http://www.techdirt.com/articles/20110301/03023713310/music-is-not-product-youll-never-adapt-if-you-think-it-is.shtml</guid>
<description><![CDATA[ About a decade ago, I wrote a long analysis of why digital "goods" were really a "service," not a "product," and explained how this was the key to understanding modern business models.  I had submitted it to a large publication, who came back and told me that my reasoning made no sense at all and they refused to publish it.  It may be true that my reasoning doesn't make much sense, but it's nice to see that others are coming to the same conclusion.  Hypebot has a nice post from singer/songwriter Jeff Macdougall <a href="http://www.hypebot.com/hypebot/2011/02/news-flash-your-music-is-not-your-product.html?utm_source=feedburner&#038;utm_medium=twitter&#038;utm_campaign=Feed%3A WolfgangsSharedItemsInGoogleReader %28Sharenswert by ContentSphere%29" target="_blank">explaining how music must be viewed as a service, rather than a product</a>, if those in the music industry want to successfully adapt to the changing market:
<blockquote><i>
When a label executive tells you that they are "not in the business of selling discs", (or vinyl, tape, t-shirts, etc.) and that they are actually "selling music," they are, at best, fooling themselves, or at worst, lying to your face. Moving plastic, vinyl, paper and/or any other tangible good they can dream up is exactly what the recording industry has been about since it was established.
<br /><br />
Sure, the labels spend money and time trying to infuse their products (CDs, posters, etc.) with content (music, album art, etc.) to raise its intrinsic value, but it's still the CD or poster that they are/were selling... not the music itself. 
</i></blockquote>
He goes on to note that music is really an experience, and people should stop focusing on copyright law or the idea that file sharing is "stealing," and focus on the overall experience and building models based on that.
<br /><br />
Of course, he doesn't quite get into the difference between a service and a product -- and it's one area that people sometimes get confused about, so one way to simplify it is to think of it like this: a product is a single thing created in the past that you now own.  A service is paying for something to happen in the future.  It's not a perfect explanation, but in my experience, this simple distinction often gets people thinking creatively about how to turn a business model into one focused on selling a service, rather than a product.<br /><br /><a href="http://www.techdirt.com/articles/20110301/03023713310/music-is-not-product-youll-never-adapt-if-you-think-it-is.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110301/03023713310/music-is-not-product-youll-never-adapt-if-you-think-it-is.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110301/03023713310/music-is-not-product-youll-never-adapt-if-you-think-it-is.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>lessons-from-the-front</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110301/03023713310</wfw:commentRss>
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<pubDate>Wed, 20 Oct 2010 12:48:00 PDT</pubDate>
<title>Why Won't Southwest Let Third Party Service Providers Help Southwest Fans Manage Their Frequent Flyer Points?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101020/11583511512/why-won-t-southwest-let-third-party-service-providers-help-southwest-fans-manage-their-frequent-flyer-points.shtml</link>
<guid>http://www.techdirt.com/articles/20101020/11583511512/why-won-t-southwest-let-third-party-service-providers-help-southwest-fans-manage-their-frequent-flyer-points.shtml</guid>
<description><![CDATA[ Southwest Airlines is the sort of airline that seems to get a "love it" or "hate it," review from folks.  The funky boarding process and the general no frills attitude of the airline work for some, but not for others.  Personally, I like Southwest for short haul flights, don't mind the boarding process and <i>especially</i> like the fact that it's retrofitted many of its gates with comfy chairs that have outlets and USB chargers at many seats.  I've also found that on about 10% of my Southwest flights, there will be a very, very funny flight attendant who entertains the entire plane (a few weeks ago, the flight attendant on my flight got loud applause for his somewhat hilarious safety warning message that included, among other things an "intermission" where he sang the "let's all go to the snack bar" song).
<br /><br />
So it's a bit disappointing that the airline has apparently decided to take an unfriendly approach to folks who want to use third party products to track their travel and manage their frequent flyer points.  TripIt is an increasingly popular service (I have an account, but have never actually used it) that many people have been using these days, but one of our readers passes along an email that TripIt recently sent out to users:
<blockquote><i>
"Hello,<br />
<br />
We're sorry to let you know that Southwest Airlines has asked TripIt and several other online travel companies to stop tracking points for members of their Rapid Rewards program. Effective immediately, TripIt Pro has discontinued point tracker support for Southwest Airlines Rapid Rewards. Your program history and balance will be available until December 31, 2010 on the TripIt website and mobile applications.<br />
<br />
We sincerely apologize for any inconvenience this may cause, and we appreciate your understanding. Please contact us if you have any questions.<br />
<br />
Thanks,<br />
<br />
TripIt
</i></blockquote>
This seems really unfortunate.  An airline like Southwest that has a funky passenger-friendly view of things should be <i>encouraging</i> apps that make it easier and more enjoyable to fly Southwest and to use its Rapid Rewards system.  It's too bad that they're trying to shut out those third parties.<br /><br /><a href="http://www.techdirt.com/articles/20101020/11583511512/why-won-t-southwest-let-third-party-service-providers-help-southwest-fans-manage-their-frequent-flyer-points.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101020/11583511512/why-won-t-southwest-let-third-party-service-providers-help-southwest-fans-manage-their-frequent-flyer-points.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101020/11583511512/why-won-t-southwest-let-third-party-service-providers-help-southwest-fans-manage-their-frequent-flyer-points.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>too-bad</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101020/11583511512</wfw:commentRss>
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<pubDate>Tue, 11 May 2010 22:15:29 PDT</pubDate>
<title>Forbes Recognizes That There Are Better Business Models Than Pure Advertising</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100510/2334199370.shtml</link>
<guid>http://www.techdirt.com/articles/20100510/2334199370.shtml</guid>
<description><![CDATA[ We've been making this point for <a href="http://www.techdirt.com/articles/20081016/0143582558.shtml">years</a> (and living it with our <a href="http://www.insightcommunity.com/sponsor.php">Insight Community offering</a>), but it appears that other media providers are finally recognizing that there really are other business models than "advertising" or "subscriptions."  There's been this theory out there for the longest time that those were the only possible ways to make money in the publication space.  Thankfully, it looks like more and more publications are recognizing there are other options as well.  A few folks sent over news that <a href="http://www.niemanlab.org/2010/05/forbes-new-tool-tracks-advertisers-corporate-reputation/" target="_blank">Forbes appears to be making the same point</a>, noting that advertising is a commodity, but <i>services</i> are not.  Thus, they're launching a "reputation tracker" for companies.  
<br /><br />
While Jay Rosen was kind enough to <a href="http://twitter.com/jayrosen_nyu/statuses/13763543865" target="_blank">compare Forbes' new offering</a> to our Insight Community, I'm not sure it's quite there yet.  It looks like Forbes' offering is more just about getting feedback from people, rather than really leveraging the strengths of the community.  Frankly, it still amazes me that more media publications don't do more for their community (and in some cases, actively <a href="http://www.techdirt.com/articles/20100306/1649198451.shtml">fight</a> their own community).  The whole reason media works as a business is because it brings together a community, and then does something with that community.  The traditional model was to just sell their eyeballs -- which only gets you so far.  I think models that focus on actually using the intelligence in that community to do something useful seems a lot more powerful.  Hopefully, Forbes' step in that direction is an indicator that more media publications are realizing there's more to a business model than advertising and subscriptions.<br /><br /><a href="http://www.techdirt.com/articles/20100510/2334199370.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100510/2334199370.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100510/2334199370.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=20100510/2334199370</wfw:commentRss>
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<pubDate>Tue, 1 Dec 2009 03:30:00 PST</pubDate>
<title>If You're Looking For The Open Source Business Model, You're Looking For The Wrong Thing</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20091130/0742547131.shtml</link>
<guid>http://www.techdirt.com/articles/20091130/0742547131.shtml</guid>
<description><![CDATA[ Every so often we see a similar article to the one penned recently by Ashlee Vance in the NY Times, bemoaning <a href="http://www.nytimes.com/2009/11/30/technology/business-computing/30open.html?src=twt&#038;twt=nytimestech&#038;pagewanted=all" target="_blank">the lack of "open source business model" success stories</a>.  Now, Vance is a top notch reporter and does great work for the NY Times (as he did for The Register before), but these kinds of articles seem to miss the point.  They go looking for "open source" company success stories, and find that most open source software companies don't end up doing very well, and the few that do okay end up selling out to other companies (MySQL, XenSource, SpringSource) and conclude that, outside of perhaps RedHat, "open source" isn't a very good business.  But that misses the point.  Open source software, by itself, <i>shouldn't</i> be much of a business.  Just as <i>music</i> isn't much of a business by itself, but it can be a huge component of a larger business, open source software is part of what helps many other businesses.
<br /><br />
So, while Vance dismisses the fact that companies like Google and IBM rely tremendously on using open source software to be the foundation of their multi-billion dollar businesses, it's time to recognize that <i>those are open source business models</i>.  Just as we talk about how the new music ecosystem involves using music to make other things much more valuable, the "open source business model" is using open source software to make other things much more valuable.  The companies that haven't gotten very far trying to sell open source software are in that spot because they don't understand open source business models themselves, and seem to think that the focus should remain on selling software, rather than using the software to make other things more valuable.  While Vance dismisses companies like Google and IBM using open source software as "pawns," it's time to recognize that that is the most reasonable way to build a business on open source work.  And there's nothing wrong with that at all.  It's helping build tremendous businesses that have a huge impact on the world economy.<br /><br /><a href="http://www.techdirt.com/articles/20091130/0742547131.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20091130/0742547131.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20091130/0742547131.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>that's-backwards</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20091130/0742547131</wfw:commentRss>
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<pubDate>Thu, 12 Nov 2009 10:11:09 PST</pubDate>
<title>Google Doesn't Rely On Intellectual Property For Its Leadership Position</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20091110/0843176877.shtml</link>
<guid>http://www.techdirt.com/articles/20091110/0843176877.shtml</guid>
<description><![CDATA[ In the various debates we have on intellectual property, we often hear people insisting that Google's dominance is based on intellectual property -- even though there's very little evidence to support this at all.  The people who make this argument are guilty of the same mistake made in studies that count all things covered by intellectual property laws as if they only exist  <i>because</i> of those laws.  Entertainment industry lobbyists, like The Copyright Alliance, love to tout that "$1.52 trillion of the nation's GDP" comes from intellectual property.  But that's both misleading and wrong.  The number itself is exaggerated, but it also gives credit to intellectual property for <i>anything</i> that touches IP.  For example, when we dug into the <a href="http://www.techdirt.com/articles/20091001/0154256379.shtml">methodology</a>, we saw that the study counts things that clearly were not because of IP law: such as furniture and jewelry.  Are the Copyright Alliance and its entertainment backers really trying to suggest that without copyright law we would have no furniture or jewelry?
<br /><br />
Similarly, Google often gets lumped into these discussions, with people insisting that its position in the market is due to copyright and patents.  Google does, in fact, have a bunch of patents -- but I watch the patent app filings and patent grants on a bunch of different companies each week, and Google tends to file significantly fewer patents than other comparable companies.  Furthermore, I don't know of a single case where Google even <i>hinted at</i> or threatened another company with a patent infringement suit (if there are any examples, please let me know).  It appears that Google has focused very much on just using patents for defensive purposes, since it is regularly sued by others for infringement.
<br /><br />
Matt Asay, over at News.com, has now highlighted an even stronger example of how Google is showing that it's not relying on intellectual property, but on execution, for its business position.  The company recently <a href="http://news.cnet.com/8301-13505_3-10393323-16.html?part=rss&#038;subj=news&#038;tag=2547-1_3-0-20" target="_blank">open sourced its Closure tools</a>, which it uses to build its web services (disclosure: I'm good friends with one of the folks involved in this project, and yes, he reads Techdirt regularly).  As Asay puts it:
<blockquote><i>
In many ways, Google is giving away the recipe to those that would like to build a Google clone.
<br /><br />
The problem? Google is so much more than software.
<br /><br />
In fact, one of the primary reasons that Google can write and open-source so much software is that it isn't a software company. Not even remotely. I could have every line of Google's software, both open source and proprietary, and I couldn't hope to compete with Google.
<br /><br />
Google is what Google does with the software, and not the software itself.
</i></blockquote>
It's the <i>execution</i>, not the idea.  It's the <i>service</i>, not the code.
<br /><br />
In fact, this sort of activity confuses the hell out of companies that do rely on intellectual property.  Again, Asay makes this clear:
<blockquote><i>
Google and Red Hat have moved beyond software. Software enables their operations, but software doesn't define such operations. Google, for its part, is open sourcing Microsoft, one line of code at a time, and Microsoft hasn't a clue as to how to respond, because it only knows the old world: competition through better IP.
</i></blockquote>
And that -- right there -- is the key point we keep trying to make around here.  You don't need to rely on intellectual property.  And, if you do, you are opening yourself up wide to competition that doesn't rely on IP and innovates in a way that simply cuts your legs out from under you.  Yet... we'll still hear stories for years about how all of Google's billions are because of its intellectual property, even as it gives away more and more of it each and every day.<br /><br /><a href="http://www.techdirt.com/articles/20091110/0843176877.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20091110/0843176877.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20091110/0843176877.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>stop-saying-it</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20091110/0843176877</wfw:commentRss>
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<pubDate>Tue, 29 Sep 2009 08:53:00 PDT</pubDate>
<title>Can You Copyright Movie Times?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090924/2309516315.shtml</link>
<guid>http://www.techdirt.com/articles/20090924/2309516315.shtml</guid>
<description><![CDATA[ One of our readers, Jay Anderson, writes in to let us know that he was working on a useful little app to let people put in their zip code, find local movies, and click through to buy tickets.  In doing so, he found an undocumented API on a major site that provided all the relevant info, and linked back to MovieShowtimes.com, a site owned by West World Media.  Anderson contacted the site to find out if it had some sort of affiliate program since it was reasonable to assume the site would be happy to gain some free traffic.  No such luck.  Instead, he got back a threatening letter, warning him that he was opening himself up to copyright infringement damages that could be upwards of $600,000 per month.
<blockquote><i>
You need to know it is unlawful and a violation of our copyright and intellectual property rights for you to build a system that obtains our content from any source other than to obtain an expressed license from West World Media for legal usage of our content. Each violation of our Intellectual property rights allows us to collect damages of up to $150,000 per infringement. This would equate in liquid damages of over $600,000 per month if you violate our rights. 
</i></blockquote>
Anderson responded, asking the company how factual information (such as movie times) could be covered by copyright, and the company responded:
<blockquote><i>
"It is not our responsibility or duty to explain complex US Intellectual Property rights law, we however enjoy many protections from them. I suggest you hire an IP attorney to explain it to you. From your response, it seems to me you have no intentions of moving forward in a legal manner. We closely monitor any and all usage of our content and if we discover your unlawful usage of it, we will exercise our rights to their fullest extent of the law."
</i></blockquote>
Now, obviously, the company makes its money by licensing its database of showtimes to certain websites, but that information is factual, and it's difficult to see how the company could hold a copyright on it (at least in the US, where there's no real "database right" -- elsewhere... perhaps a different story).  There's also no creative element in merely listing showtimes, and it's hard to see how they would possibly be covered by copyright.  If the problem is that the company is upset that its business model can't handle other people sending it traffic, that's a <i>business model problem</i>, not a copyright problem.  Time to redesign the business model to take a cut of sales, rather than to rely on artificial copyrights.  Unfortunately, though, it doesn't stop a company from making such threats...
<br /><br />
Separately, this reminds me of the fact that, just a few months ago, we were talking about how the movie times in newspapers were apparently <a href="http://techdirt.com/articles/20090730/0345595714.shtml">paid advertisements</a> by the theaters themselves.  So, this seems like an odd switch as well: newspapers get paid for movie listings, but websites have to pay for them?  How does that work?<br /><br /><a href="http://www.techdirt.com/articles/20090924/2309516315.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090924/2309516315.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090924/2309516315.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>and-if-you-could,-why-would-you?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090924/2309516315</wfw:commentRss>
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<pubDate>Mon, 15 Jun 2009 10:56:54 PDT</pubDate>
<title>Virgin Does Music Deal With Universal; Everyone Involved Forgets The Past</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090615/1035235237.shtml</link>
<guid>http://www.techdirt.com/articles/20090615/1035235237.shtml</guid>
<description><![CDATA[ There's lots of news coming out today about how UK broadband ISP Virgin has <a href="http://news.bbc.co.uk/2/hi/technology/8100394.stm" target="_new">signed a deal with Universal Music</a> to allow unlimited access to Universal Music's catalog (downloads and streams) for a set price.  Various execs and politicians are <a href="http://www.digitalmusicnews.com/stories/061509virginquotes" target="_new">talking it up</a> like it's the greatest thing ever.  It's as if they think that people can't remember back just a few months.
<br /><br />
That's because it was just a few months ago that Virgin was set to launch a similar offering that included <i>all</i> of the major record labels, but then a few of them <a href="http://www.techdirt.com/articles/20090123/1506253510.shtml">got greedy</a> and said they'd only agree to it if Virgin also employed Deep Packet Inspection (DPI) techniques to track the file sharing <i>and</i> cracked down on any <i>sharing</i> of MP3s.  Virgin resisted -- after all, just a few months before <i>that</i>, it had insisted that it would never <a href="http://www.techdirt.com/articles/20080703/1319201591.shtml">cut subscribers off the internet</a> for file sharing.  So... wouldn't you know it... a part of this plan is to <i>cut file sharers off the internet</i>.
<br /><br />
So, let's take a look at this "wonderful" and "amazing" new agreement.  You get a vastly limited catalog (only Universal Music -- and who the hell knows what label their favorite bands are on these days?).  It's not clear how the usage is tracked, but given the earlier reports, we have to wonder if it involves DPI spying on your usage... <i>and</i> Virgin is committed to cracking down on file sharing and even "temporarily" cutting off access to the internet (Virgin claims its okay, because the cutoff is only "temporary").  Perhaps there are some folks out there who will sign up for such a service, but it's difficult to see who.  They aren't offering any benefits or additional value.<br /><br /><a href="http://www.techdirt.com/articles/20090615/1035235237.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090615/1035235237.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090615/1035235237.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>let's-look-back-a-bit</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090615/1035235237</wfw:commentRss>
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<pubDate>Wed, 5 Nov 2008 15:11:32 PST</pubDate>
<title>Microsoft Tries A 'First One's Free' Strategy To Lure Startups</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20081105/1239482746.shtml</link>
<guid>http://www.techdirt.com/articles/20081105/1239482746.shtml</guid>
<description><![CDATA[ Microsoft certainly recognizes the fact that most startups these days are automatically gravitating to a LAMP infrastructure (Linux, Apache, MySQL and PHP).  So, now it seems to be trying out a new program to lure startups by <a href="http://news.cnet.com/8301-13860_3-10082506-56.html?part=rss&#038;subj=news&#038;tag=2547-1_3-0-20" target="_new">offering them free software for a few years</a> and combining it with <a href="http://news.bbc.co.uk/2/hi/technology/7711211.stm">additional services</a> that they hope will appeal to startups.  It's an interesting approach, though, in the long run, it still seems like they may have the equation backwards.  While they are giving some stuff away free initially, the ultimate goal is to lock companies into paying for infinite goods like software, rather than scarcities like services.<br /><br /><a href="http://www.techdirt.com/articles/20081105/1239482746.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20081105/1239482746.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20081105/1239482746.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>you-know-you-want-to-try...</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20081105/1239482746</wfw:commentRss>
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<pubDate>Mon, 14 Apr 2008 11:58:08 PDT</pubDate>
<title>People Overestimate The Value Of Content; Underestimate The Value Of A Service That Makes It Useful</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20080414/015112835.shtml</link>
<guid>http://www.techdirt.com/articles/20080414/015112835.shtml</guid>
<description><![CDATA[ A silly <a href="http://www.techmeme.com/080412/p1#a080412p1">mini-battle</a> broke out among some bloggers over the weekend concerning some new RSS-feed aggregation site.  It's a battle that plays itself out every few months or so, and which we've tried to <a href="http://www.techdirt.com/articles/20061023/140659.shtml">discuss</a> a few times in the <a href="http://www.techdirt.com/articles/20050118/0115200.shtml">past</a>.  What happens is that people get angry because this aggregator (or reader, or browser or whatever) is actually able to build a business around other websites' content.  And that gets plenty of folks, including those who I quite frequently agree with, like <a href="http://www.mathewingram.com/work/2008/04/11/shyftr-feed-theft-or-social-news-reader/" target="_new">Mathew Ingram</a> and <a href="http://www.deepjiveinterests.com/2008/04/12/fine-ill-say-it-shyftr-crosses-the-line/" target="_new">Tony Hung</a>, to complain that the service has somehow "crossed a line" by building a business "on the backs" of other people's content.
<br /><br />
The problem, however, is that this is simply untrue.  If it were true, then a ton of online sites would be guilty of the same thing -- including Google.  But the reason it's not true is quite simple to understand: if all they were doing was reusing other people's content, then there would be no incentive or reason for people to visit these sites.  Why go to these sites when you could just go to the original sites?  The <i>reason</i> that people go to these sites, and the reason why these sites can build a business, is because they <i>add value</i> to the content in the form of some sort of service that does more with it.  They're not building businesses "on the backs" of others' content, they're building services that people find useful as a way to find, interact with, share or comment on that content.
<br /><br />
Unfortunately, though, as we see time and time again, people seem to <a href="http://www.techdirt.com/articles/20080322/142342625.shtml">overvalue</a> the content and undervalue the service.  That's why you have <a href="http://www.techdirt.com/articles/20060918/020228.shtml">newsapers</a> that sue Google, even as it's bringing them more traffic.  They overvalue their own content, and undervalue the <i>service</i> that Google is providing: making it easier to find their content.  The same is true of just about every other service that kicks off this kind of debate.  The service is making it easier to consume, read, share, comment on, organize, find or interact with the content.  Otherwise, it wouldn't get any users.  The content is important, yes -- and valuable too -- but don't underestimate the value of the <i>service</i> that it performs on that content.  So the next time one of these fights breaks out, pay attention to whether people are unfairly blaming a site for "stealing" content, and notice if they're undervaluing the service itself.<br /><br /><a href="http://www.techdirt.com/articles/20080414/015112835.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20080414/015112835.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20080414/015112835.shtml?op=sharethis">Email This Story</a><br />
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