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In a speech given at the Italian parliament earlier this month titled “Internet is Freedom”, Lawrence Lessig prominently addressed issues recently discussed in this blog: as argued in “Reflections on Abolitionism: Copyright and Beyond“, he painted the picture of fighting extremists – abolitionists on the one, copyright zealots on the other hand -, thereby presenting himself as the sensible moderate seeking a middle course. So far, so business as usual.

What struck me was the particular compromise Lessig suggested: referencing the book “Promises to Keep” (2004) from his Harvard Berkman Center colleague William Fisher III and the German Green Party, he advocated for introducing a “Cultural Flat-rate” (see “Extending Private Copying Levies: Approaching a Culture Flat-rate?“).

While the short clip above delivers those 6 minutes of Lessig’s half an hour long speech that deal with abolitionism, copyright zealots and the Cultural flat-rate, I can only recommend watching the whole speech at blip.tv.

(leonhard)

In its recent „Special Report“ on copyright protection and enforcement (498 pages, PDF) to the US Trade Representative, the International Intellectual Property Alliance (IIPA) recommeded keeping Indonesia on the „watch list“. One of the major reasons given for this recommendation (PDF) was the following:

„Worse yet, instead of focusing attention on piracy and solutions to the problem, the government retained onerous market access barriers […] and added new restrictions. For example, in March 2009, the Ministry of Administrative Reform (MenPAN) issued Circular Letter No. 1 of 2009 to all central and provincial government offices including State-owned enterprises, endorsing the use and adoption of open source software within government organizations. While the government issued this circular in part with the stated goal to “reduc[e] software copyright violation[s],” in fact, by denying technology choice, the measure will create additional trade barriers and deny fair and equitable market access to software companies.“

In what follows, the paper argues that endorsing the adoption of open source software „fails to build respect for intellectual property rights“. While this opposition towards open source software can be explained by the fact that the Business Software Alliance, which is dominated by proprietary software vendors such as Microsoft, is among the most influential IIPA member organizations, others share the basic concern. The Austrian researcher Stefan Weber, for example, similarly decries a declining respect for intellectual property and a rise of plagiarism – something he refers to as the „Google-Copy-Paste-Syndrome“; he also links alternative licensing such as Creative Commons with an allegedly dropping respect for authors’ copyrights (see pp. 34-35 in Maurer et al. 2007, PDF). Read the rest of this entry »

One of the things that make blogs particularly interesting are series. In this blog, for example, Phil features a series on “microcredit myths“. The “series” series recommends series at related blogs. This time I introduce the series “How Evil is File-sharing?” at the German research blog “musikwirtschaftsforschung“.

Peter Tschmuck, founder of “musikwirtschaftsforschung” (“music industry research”), is an economist by training, who is situated at the University of Music and Performing Arts Vienna. In his works he pursues a holistic approach in researching how technological and regulatory changes affect the music industry. Unsurprisingly, new practices such as online file-sharing (see also: “Internet Piracy: A Perfect Excuse?“) play an important role in his research as well as on his blog, where he started a series titled “How Evil is File-sharing?”. We feature this series not only because it gives a great overview – regrettably only available in German -, but also because it is the main topic of the upcoming “Vienna Music Business Research Days” (English PDF), June 9-10, 2010.

After having reviewed 17 studies on file-sharing in the course of the series (see list of studies below), in post #18 Peter Tschmuck groups the extant literature into three categories (number of studies in brackets):

  • Formal approaches (4): Due to the very unrealistic assumptions of these either microeconomic (e.g. Liebowitz 2006) or game theoretical (e.g. Curien & Moreau 2005) models, Tschmuck summarizes their implications as ranging from “no usable information” to “interesting but still empirically unfeasible insights”.
  • Survey-based approaches (7): With one exception (Huygen et al. 2009), all available surveys lack representative samples, thus making generalizations difficult. Interestingly, Huygen et al.’s study, which is representative at least for the Netherlands, finds no connection between the decline in CD sales and file-sharing activities.
  • Econometric approaches (6): Among the econometric approaches, Tschmuck highlights the two Harvard-studies of Oberholzer-Gee & Strumpf (2007) and Blackburn (2004) as being particularly reliable.

In what follows, Tschmuck delineates propositions for further research on the issue. For the supply side he mentions the following three characteristics: The music industry resembles (1) oligopolistic market structures, labels in general and major labels in particular (2) seek to maximize market share and due to copyright regulation we find (3) monopolistic competition.

On the demand side, in turn, he acknowledges the existence of (1) a substitution effect of file-sharing and record sales, which is however balanced by something Tschmuck calls (2) “network effect” in form of new music discovered via file-sharing. The latter lies at the heart of market development and market segmentation.

As a conclusion, Tschmuck offers the following (translation L.D.):

Anyone who wants to belong to future winners has to abandon traditional business models and harvest new opportunities for making profit. The battle against music file-sharing networks is thereby definitly not a sensible way to pursue. One should rather consider how these new forms of using music can be economically capitalized, which brings us to the discussions on music flat-rates and new types of copyright.

Which, in turn, brings us back to posts on this blog such as, for example, “Extending Private Copying Levies: Approaching a Culture Flat-rate?” regarding the former and “Competition for Copyright Collectives: New Market Logics” regarding the latter.

(leonhard)

Appendix: Studies reviewed in the series “How Evil is File-sharing?”: Read the rest of this entry »

While conventional discourse on global governance in general and copyright regulation in particular mainly discusses complementary or conflicting ways of regulation, abolitionist positions are only rarely mentioned. This blog is no exception to this rule, at least it was not until now.

The following reflection on the role – the potential virtues and deficiencies – of abolitionist reasoning is inspired by a recent blog post by Stephan Kinsella. In his article the self-described “Austro-Anarchist Libertarian” and author of the book “Against Intellectual Property” (2008, Mises Institute, PDF) features works by the cartoonist Nina Paley (see her video “All Creative Work Is Derivative” below). In an email to Kinsella, Paley describes herself as follows:

“I’m now artist-in-residence at QuestionCopyright.org, and do what I can to promote alternatives to copyright. (Actually I’m a copyright abolitionist, but many find that identification unpalatable.)”

Why is being a copyright abolitionist so “unpalatable” that even outspokenly critical individuals such as Paley feel the need to hide it? Is it the threat they embody by proposing such a seemingly radical position? Or is it rather the lacking connectivity for further debate, which leads to awkward moments and the self-perception of being unpalatable in the eyes of others? Read the rest of this entry »

While around the globe copyright critics advocate the adoption of Creative Commons licenses as a way for enabling remix and non-commercial file-sharing, in Europe a second solution is debated more and more intensively: a so-called “culture flat rate”. Internet users should be mandated to pay a fixed amount per month and in return be allowed to non-commercially remix and share copyrighted files. Of course, differently to the private regulation approach of Creative Commons, such a “culture tax” would require legislative changes.

Technically, most countries already have a minor form of such a culture tax called private copying levies: a special tax or levy is charged on purchases of recordable media – in some cases also on recording or copying devices – and then redistributed to rights holders via copyright collectives. Regularly copying levies are justified as being a compensation for limitations and exceptions to copyright such as the right to make a private copy (see, for example, the US Audio Home Recording Act).

Compared to other aspects of copyright regulation, which are increasingly harmonized across jurisdictions in the course of international treaties such as the WTO’s TRIPS agreement, copying levies still vary significantly from country to country – both in terms of the types of devices and recordable media covered and in terms of levy levels. And these differences are far from being diminished, as recent developments in the neighbouring countries Germany and Austria illustrate: while in Germany the Association of Computer Manufacturers and a consortium of different collecting societies agreed on a new copying levy on any computer with a recording device (German press release), the Austrian supreme court of justice ruled against a similar levy (Austrian supreme court ruling, German).

In his contribution (PDF) to last year’s Free Culture Research Workshop at Harvard’s Berkman Center, the German media sociologist and activist Volker Grassmuck, argues in favor of a “Culture Flat-Rate to end copyright extremism and bring information freedom and remuneration for authors to the Internet.” He describes the model as follows: Read the rest of this entry »

Books are the most traditional of all copyrightable works. Copyright as a legal institution was developed particularly for protecting authors and publishers of books. Over the years, copyrights have been granted to creators of all kinds of works, ranging from music over films to software. While most of these other types of copyrighted works are strongly affected by new forms of content production and distribution in the course of the so-called “digital revolution”, books seem to have been relatively immune to the very same technological changes – at least until Google started with the mass digitization of books and Amazon launched its increasingly popular e-book-reader “Kindle” (see “Google Books and the Kindle Controversy: Merging Conflict Arenas?“).

Especially Google Book Search (GBS) has inspired intense controversies between supporters, painting the highly optimistic picture of universal access to all books ever published for virtually everybody, and adversaries, fearing the rise of a knowledge monopolist, who exploits authors, publishers and readers alike. The best and most comprehensive comparison of both lines of argumentation I have encountered so far is a recent piece by Berkeley’s Pamela Samuelson titled “Google Book Search and the Future of Books in Cyberspace” (PDF).

After identifying overly restrictive copyright as the major impediment for any mass digitization project, Samuelson turns to the pros and cons of the GBS settlement in its current, amended version. As optimistic predictions she lists the following: Read the rest of this entry »

Paul David Hewson, better known under his stage name Bono Vox as a frontman of the rock band U2, is undisputedly one of the world’s best-known philantropists. He holds – and expresses – pointed opinions on a huge variety of subjects, leading him to the foundation of his organization DATA, an acronym for “Debt, AIDS, Trade, Africa”.  So it was no surprise, when in his recent New York Times op-ed he addressed issues covered by this blog. Of his piece “Ten for the Next Ten” especially number 2 dealing with intelletual property caught my attention:

“A decade’s worth of music file-sharing and swiping has made clear that the people it hurts are the creators — in this case, the young, fledgling songwriters who can’t live off ticket and T-shirt sales like the least sympathetic among us — and the people this reverse Robin Hooding benefits are rich service providers, whose swollen profits perfectly mirror the lost receipts of the music business.”

Is it really true that the biggest losers of file-sharing are the creators? Bloggers at the UK Times come to different conclusions in their recent analysis, presenting the following “graph the record industry doesn’t want you to see”: Read the rest of this entry »

When we started our blog with one year ago in January 2009 many things were unclear: Will it work out to subsume very different empirical fields under the heading of transnational governance? Will we manage to find enough time for blogging? Will blogging influence our research? What issues will be of greatest interest?

At least regarding the last question, our open source blogging software WordPress provides some data, which we present in form of the all-too popular end-of-the-year-listings:

Top 5 blog posts 2009 (in terms of visitors):

  1. Pirate Parties: Transnational mobilization and German elections
  2. Fair Value Accounting and the ‘Inactivity’ of Markets
  3. Fair Value Accounting in Retreat?
  4. The Kindle Controversy: No Right to be a Reader?
  5. Accounting at the G20 London summit: Watering down or walking the talk?

Top 5 search terms guiding visitors to our blog in 2009:

  1. Kindle controversy
  2. Fair value accounting
  3. Transnational governance
  4. Copyright example
  5. Epistemic community

Top 5 tags attached to blog posts in 2009:

  1. Creative Commons
  2. Microfinance / Microcredit
  3. Copyright / Copyright Regime
  4. Development
  5. Transnational governance

Top 5 series started in 2009:

  1. Microcredit Myths (4 posts)
  2. Kindle Controversy (3 posts)
  3. Eastern Frontiers (2 posts)
  4. Transnational Studies and Governance (2 posts)
  5. Wikimania Preview (2 posts)

In total we published 64 posts in 2009, with a total of 63 comments attached to them. While this means we reached our self-imposed goal of publishing at least one post per week, we hope to improve our comment-per-article ratio above the current average of 1 in our second blogging year 2010.

In preparing this post I struggled with the question how to call the process between two parties offering complementary services that obviously refer reciprocally in their actions to each other but do not directly and explicitly negotiate? This question came to me, when recently the German debate on an ancillary copyright (see “Dilbert on Ancillary Copyright“) for publishing houses arrived in the US. “Editor & Publisher”, proud of being “America’s Oldest Journal Covering the Newspaper Industry”, features an article asking “Change in Copyright Law: A Possible Solution to News Content Crisis?”  As a solution suggest by industry representatives, the article reports demands for introducing compulsory licensing fees for Web-based agregators or re-distributors of news content.

But aside this transatlantic discourse coalition addressing legislative bodies, we can see interesting dynamics of unilateral (non-)negotiation between two big players in this game, thereby changing the rules as they “play”: Google and Rupert Murdoch’s News Corp. The latter’s opener were plans of a partnership with Microsoft regarding the new search engine Bing. Business Week’s Douglas MacMillan describes the potential deal as follows:

“In an effort to keep News Corp.’s newspaper content out of Google’s search results, Murdoch’s media giant has held early-stage talks to forge a deal that would put content from The Wall Street Journal, and possibly other company-owned publications, exclusively in Microsoft’s Bing search engine. […] In exchange for the exclusive content, Microsoft would pay an undisclosed fee[.]”

Only about a week later Google announced its counterstrike on its corporate blog, explicitely referring to concerns of newspaper publishers: Read the rest of this entry »

Yesterday the Society for the Advancement of Socio-Economics (SASE) announced the topic of its 22nd Annual Meeting, which takes place June 24-26 2010 in Philadelphia. It reads as follows:

“Governance Across Borders: Coordination, Regulation and Contestation in the Global Economy”

In the Call for Papers and Sessions, the organizers describe the focus of the conference:

This year’s conference focuses on the development, dynamics, impact, and implications of emerging forms of transnational governance in the global economy – public, private, and hybrid.

So not only because this blog bears the same name as is this year’s conference theme, we greatly encourage submitting paper or session proposals at the conference website.

Besides, we are thankful for receiving the honor of being SASE’s “featured blog“.

The Book

Governance across borders: transnational fields and transversal themes. Leonhard Dobusch, Philip Mader and Sigrid Quack (eds.), 2013, epubli publishers.
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