logo

Against Monopoly

defending the right to innovate

Monopoly corrupts. Absolute monopoly corrupts absolutely.





Copyright Notice: We don't think much of copyright, so you can do what you want with the content on this blog. Of course we are hungry for publicity, so we would be pleased if you avoided plagiarism and gave us credit for what we have written. We encourage you not to impose copyright restrictions on your "derivative" works, but we won't try to stop you. For the legally or statist minded, you can consider yourself subject to a Creative Commons Attribution License.


earlier posts

What IP is really about

From my spam folder:

You could be sitting on a potential gold mine!

It's right under your nose, in the form of intellectual property created by you & your lab. Don't let your invention representing millions in potential revenue sit idle simply because you aren't aware IP & patent protection laws and other key aspects of moving innovations from your lab to the market..

What: Live Audio Conference When: Wednesday, August 4 at 1:00 pm EST (90 minutes)

Register Now! (http://www.on2url.com/app/adtrack.asp?MerchantID=163022&AdID=505332)

Intellectual Property Rights and Innovation: Evidence from the Human Genome

NBER Working Paper #16213 by Heidi L. Williams

Abstract:

This paper provides empirical evidence on how intellectual property (IP) on a given technology affects subsequent innovation. To shed light on this question, I analyze the sequencing of the human genome by the public Human Genome Project and the private firm Celera, and estimate the impact of Celera's gene-level IP on subsequent scientific research and product development outcomes. Celera's IP applied to genes sequenced first by Celera, and was removed when the public effort re-sequenced those genes. I test whether genes that ever had Celera's IP differ in subsequent innovation, as of 2009, from genes sequenced by the public effort over the same time period, a comparison group that appears balanced on ex ante gene-level observables. A complementary panel analysis traces the effects of removal of Celera's IP on within-gene flow measures of subsequent innovation. Both analyses suggest Celera's IP led to reductions in subsequent scientific research and product development outcomes on the order of 30 percent. Celera's short-term IP thus appears to have had persistent negative effects on subsequent innovation relative to a counterfactual of Celera genes having always been in the public domain.

The paper is here.

$27 million claimed; $500 awarded

A claim arguing both copyright infringement and moral rights infringement looked for $27 million in damages. (Plus, amongst other things, the goods and services tax on the monetary awards.) By the end, the Honourable Mr. Justice Russell of the Federal Court of Canada determined that the defendants' copyright misdemeanor was confined to posting the plaintiff's work on their website, without his consent. Justice Russell did not conceal his opinion of the plaintiff's conduct; "The evidence adduced concerning infringement of copyright suggests that the Plaintiff's claims are disproportionate and opportunistic."

It reads like a work of fiction; a long-time business association that went sour, third parties caught in the crossfire, and a proposed corrective that involved transacting funds in a Caribbean country of the plaintiff's choice. The effort to secure significant statutory damages earned some choice words from Justice Russell, "There is no evidence of any market for the Report and the conduct of the Defendants during the proceedings has been consistent with parties simply trying to resist the Plaintiff's inflated demands for $27,000,000.00."

The $500 awarded to the plaintiff is the minimum permitted for statutory damages by Canadian law. The claims for punitive and aggravated damages were unsuccessful.

"There are criminal enterprises out there prepared to use the law in ways that it was not intended."

Indeed. Hopefully, this will get even more people to start to contemplate the bigger picture here:

http://claytonecramer.blogspot.com/2010/07/outrageous-lawsuit.html

[H/T: Instapundit]

Lawsuit allegeing steps to prevent copyright infringement infringes copyright dropped

Details here:

http://www.wired.com/threatlevel/2010/07/copyrightfiltering-scribd/

The fact that the lawsuit was dropped does not diminish the illustration of how insane the copyright lawsuit industry has become. Its own logic begins to fold in on itself.

Another player exploiting patents--to the cost of the consumer

The New York Times has a good short article on the growth of patent trolls (which it terms as non practicing entities or NPEs) link here. The story hangs on the suit against EBay for $3.8 billion by XPRT Ventures which goes unmentioned thereafter.

It then describes the basic patent troll model: "The basic idea is that an investment firm buys a pre-existing patent for, say, $2 million. It then sues perhaps a dozen companies that use technology potentially overlapping the patent. Each firm that fights may end up paying $500,000 or more to defend itself and could also face penalties. The alternative is to settle for, say, $1 million or so. If just three firms pay up to avoid a battle, the patent owner makes big money."

The EBay example is not particularly apt here since it is for so much money that EBay is likely to fight it. But the story provides the excuse for the article which goes on to cite the rise in the number of such suits, 500 last year or six times the number in 2001.

The article then switches to a "new" business response to the patent troll threat, the counter-troll that acquires patents to sue or cross license other firms by which its member companies might be sued for infringement. Thus for a generous annual fee, it seems to offer some insurance against loss.

Its exemplar, roughly two year old RPX, has an extensive website link here, a puff piece, and Google adds little more. However, the Times piece reminded me of ten-year-old Intellectual Ventures about which we wrote link here and which now has a Wiki write-up link here . I checked quickly for officer names of the two but found no overlap. I do note, however, that IV has some big corporate subscribers including Microsoft, Verizon (also "insured" by IV), and Intel.

Thus the "counter-troll" model seems to have proved so attractive that it has spawned a rival. Here is another reminder of how patents enrich the big oligopoly companies and exploit the consumer while providing no benefit to the inventor in whose name patents are issued.

Against Monopoly

Reposted with permission from Creative Commons:

ASCAP's Attack on Creative Commons

The American Society of Composers, Authors and Publishers (ASCAP) has launched a campaign to raise money from its members to hire lobbyists to protect them against the dangers of "Copyleft." Groups such as Creative Commons, Public Knowledge, and the Electronic Frontier Foundation are "mobilizing," ASCAP describes in a letter to its members, "to promote 'Copyleft' in order to undermine our 'Copyright.'" "[O]ur opponents are influencing Congress against the interests of music creators," ASCAP warns. Indeed, as the letter ominously predicts, this is ASCAP's "biggest challenge ever." (Historians of BMI might be a bit surprised about that claim in particular.)

As a founding board member of two of those three organizations, and former board member of the third, I guess I should be proud that a 96 year old organization would be so terrified of our work. And I would be if there were anything in this fundraising pitch that was actually true.

But there is not. Creative Commons, Public Knowledge and EFF are not aiming to "undermine" copyright; they are not spreading the word that "music should be free"; and there is certainly not yet any rally within Congress in favor of any of the issues that these groups do push.

I know Creative Commons best, so let me address ASCAP's charges as they apply to it.

Creative Commons is a nonprofit that provides copyright licenses pro bono to artists and creators so that they can offer their creative work with the freedom they intend it to carry. (Think not "All Rights Reserved" but "Some Rights Reserved.") Using these licenses, a musician might allow his music to be used for noncommercial purposes (by kids making a video, for example, or for sharing among friends), so long as attribution to the artist is kept. Or an academic might permit her work to be shared for whatever purpose, again, so long as attribution is maintained. Or a collaborative project such as a wiki might guarantee that the collective work of the thousands who have built the wiki remains free for everyone forever. Hundreds of millions of digital objects from music to video to photographs to architectural designs to scientific journals to teachers lesson plans to books and to blogs have been licensed in this way, and by an extraordinarily diverse range of creators or rights holders including Nine Inch Nails, Beastie Boys, Youssou N'Dour, Curt Smith, David Byrne, Radiohead, Jonathan Coulton, Kristin Hersh, and Snoop Dogg, as well as Wikipedia and the White House.

These licenses are, obviously, copyright licenses. They depend upon a firm and reliable system of copyright for them to work. Thus CC could have no interest in "undermining" the very system the licenses depend upon copyright. Indeed, to the contrary, CC only aims to strengthen the objectives of copyright, by giving the creators a simpler way to exercise their rights.

These licenses are also (and also obviously) voluntary. CC has never argued that anyone should waive any of their rights. (I've been less tolerant towards academics, but I have never said that any artist is morally obligated to waive any right granted to her by copyright.)

And finally, these licenses reveal no objective to make "music free." Nine Inch Nails, for example, have earned record sales from songs licensed under Creative Commons licenses.

Instead, the only thing Creative Commons wants to make free is artists free to choose how best to license their creative work. This is one value we firmly believe in that copyright was meant for authors, and that authors should have the control over their copyright.

This isn't the first time that ASCAP has misrepresented the objectives of our organization. But could we make it the last? We have no objection to collective rights organizations: They too were an innovative and voluntary solution (in America at least) to a challenging copyright problem created by new technologies. And I at least am confident that collecting rights societies will be a part of the copyright landscape forever.

So here's my challenge, ASCAP President Paul Williams: Let's address our differences the way decent souls do. In a debate. I'm a big fan of yours, and If you'll grant me the permission, I'd even be willing to sing one of your songs (or not) if you'll accept my challenge of a debate. We could ask the New York Public Library to host the event. I am willing to do whatever I can to accommodate your schedule.

Let's meet and address these perceived differences with honesty and good faith. No doubt we have disagreements (for instance, I love rainy days, and Mondays rarely get me down). But on the issues that your organization and mine care about, there should be no difference worthy of an attack.

Meanwhile, you can read more about Creative Commons here, and support its response to the ASCAP campaign here.

Copyright Madness

Even the Wall Street Journal is stepping in -- even if it is the Weekend Journal.

Woodlief, Tony. 2010. "Curse of the Greedy Copyright Holders." Wall Street Journal (9 July). http://online.wsj.com/article/SB10001424052748704608104575220551906611796.html?mod=ITP_weekendjournal_6

"When I asked to use a single line by songwriter Joe Henry, for example, his record label's parent company demanded $150 for every 7,500 copies of my book. Assuming I sell enough books to earn back my modest advance, this amounts to roughly 1.5% of my earnings, all for quoting eight words from one of Mr. Henry's songs. I love Joe Henry, but the price was too high. I replaced him with Shakespeare, whose work (depending on which edition you use) is in the public domain. Mr. Henry's record label may differ, but it's not clear that his interests -- or theirs -- are being served here. Were they concerned that readers might have their thirst for Mr. Henry's music sated by that single lyric? Isn't it more likely that his lyric would have enticed customers who otherwise wouldn't have heard of him?"

Comment Posting Announcement

As you know we welcome comments. However the comments sidebar is getting taking over by gratuitous exchanges of insults rather than intellectual commentary on whatever side or point. I've tried not to moderate the comments beyond removing obvious spam. Heated exchanges are one thing but constant exchanges of insults are something else. I think interested readers are starting to feel discouraged by the tone of some of the comments, and some have complained. Let me start by requesting especially Lonnie, "nobody" and "none of your beeswax" to dial it back. If provoked don't respond, please try to stick to the intellectual point. If necessary we (the editors) will start removing posts that are designed to offend rather than inform. If you think another commentator is out of line, please don't respond in the comments, just let one of us know so we can take appropriate action.

Thanks,

David

Copyright abuse in Nevada politics

Talking Points Memo tells us that Nevada Senatorial candidate Sharon Angle, running against Senate Majority Leader Harry Reid, has sued him for violating copyright link here. He had posted her old website after she took it down and rewrote her old far-right positions used to win the primary, in favor of more moderate ones.

Reid did take down the copy, after stating that he had made his point about her retailored views.

This interesting abuse or misuse of copyright law again shows an old fox obeying the law but getting what he wanted, including great publicity in a campaign where it is not all that easy to get news coverage.

earlier posts


   

Most Recent Comments

Another player exploiting patents--to the cost of the consumer Lonnie again: Nobody: As you say, the money going to RPX could be plowed directly into R&D.

Another player exploiting patents--to the cost of the consumer Nobody: As you say, the money going to RPX could be plowed directly into R&D. However, it seems

Another player exploiting patents--to the cost of the consumer It's still parasitical economic activity. It's not as bad as NPEs suing or the like, but all the

Another player exploiting patents--to the cost of the consumer This post contains an inaccuracy; although RPX does acquire patents, it does not sue to enforce

Intellectual Property Rights and Innovation: Evidence from the Human Genome But, but . . . why isn't the paper free, why isn't the paper free . . . this isn't fair, this isn't

Another player exploiting patents--to the cost of the consumer It's not clear how that has anything to do with patents, "Charmed". P.S. your post would be more

Another player exploiting patents--to the cost of the consumer It is so amazing how technology works nowadays! Lots of things are being made to people to make our

Against Monopoly twitter, being a license condition ND cannot infringe anything. A license restores some of our

Against Monopoly An ND license should not be thought of as infringing on normal fair use rights. This is a

Trademark Abuse Super Duper is finally getting what it deserves. There are so many people out there that they have