A glass of water was poured before the microphone in Yonkers; it -sounded like a glass of water being poured. . . . A paper was -crumpled and torn; it sounded like paper and not like a crackling -forest fire. . . . Sousa marches were played from records and a - piano -solo and guitar number were performed. . . . The music was -projected with a live-ness rarely if ever heard before from a radio -"music box." +sounded like a glass of water being poured. . . . A paper was crumpled +and torn; it sounded like paper and not like a crackling forest +fire. . . . Sousa marches were played from records and a piano solo +and guitar number were performed. . . . The music was projected with a +live-ness rarely if ever heard before from a radio "music +box." Lawrence Lessing, Man of High Fidelity: Edwin Howard Armstrong (Philadelphia: J. B. Lipincott Company, 1956), 209.
+I thought Armstrong would invent some kind of a filter to remove -static from our AM radio. I didn't think he'd start a revolution— -start up a whole damn new industry to compete with RCA. -See "Saints: The Heroes and Geniuses of the Electronic Era," First - Electronic -Church of America, at www.webstationone.com/fecha, available at +static from our AM radio. I didn't think he'd start a +revolution— start up a whole damn new industry to compete with +RCA. @@ -644,21 +694,19 @@ different. Ideas that were as solid as rock in one age, but that, left to themselves, would crumble in another, are sustained through this subtle corruption of our political -process. RCA had what the Causbys did not: the power to stifle the - effect -of technological change. +process. RCA had what the Causbys did not: the power to stifle the +effect of technological change. See "Saints: The Heroes and Geniuses of the +Electronic Era," First Electronic Church of America, at +www.webstationone.com/fecha, available at link #1 .-There's no single inventor of the Internet. Nor is there any good -date upon which to mark its birth. Yet in a very short time, the - Internet +There's no single inventor of the Internet. Nor is there any good date +upon which to mark its birth. Yet in a very short time, the Internet has become part of ordinary American life. According to the Pew -Internet and American Life Project, 58 percent of Americans had - access -to the Internet in 2002, up from 49 percent two years before. -Amanda Lenhart, "The Ever-Shifting Internet Population: A New Look -at Internet Access and the Digital Divide," Pew Internet and American -Life Project, 15 April 2003: 6, available at +Internet and American Life Project, 58 percent of Americans had access +to the Internet in 2002, up from 49 percent two years +before. That number could well exceed two thirds of the nation by the end @@ -676,37 +724,36 @@ don't affect them directly. They are the proper subject of a book about the Internet. But this is not a book about the Internet. +Amanda Lenhart, "The Ever-Shifting Internet Population: A New Look at +Internet Access and the Digital Divide," Pew Internet and American +Life Project, 15 April 2003: 6, available at link #2 .-Instead, this book is about an effect of the Internet beyond the - Internet -itself: an effect upon how culture is made. My claim is that the -Internet has induced an important and unrecognized change in that -process. That change will radically transform a tradition that is as old as -the Republic itself. Most, if they recognized this change, would reject -it. Yet most don't even see the change that the Internet has introduced. +Instead, this book is about an effect of the Internet beyond the +Internet itself: an effect upon how culture is made. My claim is that +the Internet has induced an important and unrecognized change in that +process. That change will radically transform a tradition that is as +old as the Republic itself. Most, if they recognized this change, +would reject it. Yet most don't even see the change that the Internet +has introduced. We can glimpse a sense of this change by distinguishing between -commercial and noncommercial culture, and by mapping the law's - regulation -of each. By "commercial culture" I mean that part of our culture -that is produced and sold or produced to be sold. By "noncommercial -culture" I mean all the rest. When old men sat around parks or on +commercial and noncommercial culture, and by mapping the law's +regulation of each. By "commercial culture" I mean that part of our +culture that is produced and sold or produced to be sold. By +"noncommercial culture" I mean all the rest. When old men sat around +parks or on street corners telling stories that kids and others consumed, that was -noncommercial culture. When Noah Webster published his "Reader," -or Joel Barlow his poetry, that was commercial culture. +noncommercial culture. When Noah Webster published his "Reader," or +Joel Barlow his poetry, that was commercial culture. At the beginning of our history, and for just about the whole of our tradition, noncommercial culture was essentially unregulated. Of -course, if your stories were lewd, or if your song disturbed the peace, -then the law might intervene. But the law was never directly concerned -with the creation or spread of this form of culture, and it left this - culture -"free." The ordinary ways in which ordinary individuals shared and -transformed their culture—telling stories, reenacting scenes from plays -or TV, participating in fan clubs, sharing music, making tapes—were -left alone by the law. +course, if your stories were lewd, or if your song disturbed the +peace, then the law might intervene. But the law was never directly +concerned with the creation or spread of this form of culture, and it +left this culture "free." The ordinary ways in which ordinary +individuals shared and transformed their culture—telling +stories, reenacting scenes from plays or TV, participating in fan +clubs, sharing music, making tapes—were left alone by the law. The focus of the law was on commercial creativity. At first slightly, @@ -714,7 +761,6 @@ then quite extensively, the law protected the incentives of creators by granting them exclusive rights to their creative work, so that they could sell those exclusive rights in a commercial marketplace. - -This is also, of -course, an important part of creativity and culture, and it has become -an increasingly important part in America. But in no sense was it - dominant -within our tradition. It was instead just one part, a controlled -part, balanced with the free. +This is also, of course, an important part of creativity and culture, +and it has become an increasingly important part in America. But in no +sense was it dominant within our tradition. It was instead just one +part, a controlled part, balanced with the free.Brandeis, Louis D. This is not the only purpose of copyright, though it is the overwhelmingly primary purpose of the copyright established in the federal constitution. @@ -724,13 +770,12 @@ right to first publication, state copyright law gave authors the power to control the spread of facts about them. See Samuel D. Warren and Louis D. Brandeis, "The Right to Privacy," Harvard Law Review 4 (1890): 193, 198–200. + Brandeis, Louis D. This rough divide between the free and the controlled has now @@ -738,61 +783,58 @@ been erased. -The Internet has set the stage for this erasure and, -pushed by big media, the law has now affected it. For the first time in -our tradition, the ordinary ways in which individuals create and share -culture fall within the reach of the regulation of the law, which has - expanded -to draw within its control a vast amount of culture and - creativity -that it never reached before. The technology that preserved the -balance of our history—between uses of our culture that were free and -uses of our culture that were only upon permission—has been undone. -The consequence is that we are less and less a free culture, more and -more a permission culture. +The Internet has set the stage for this erasure and, pushed by big +media, the law has now affected it. For the first time in our +tradition, the ordinary ways in which individuals create and share +culture fall within the reach of the regulation of the law, which has +expanded to draw within its control a vast amount of culture and +creativity that it never reached before. The technology that preserved +the balance of our history—between uses of our culture that were +free and uses of our culture that were only upon permission—has +been undone. The consequence is that we are less and less a free +culture, more and more a permission culture. See Jessica Litman, Digital Copyright (New York: Prometheus Books, 2001), ch. 13. -This change gets justified as necessary to protect commercial - creativity. -And indeed, protectionism is precisely its motivation. But the -protectionism that justifies the changes that I will describe below is not -the limited and balanced sort that has defined the law in the past. This -is not a protectionism to protect artists. It is instead a protectionism -to protect certain forms of business. Corporations threatened by the -potential of the Internet to change the way both commercial and -noncommercial culture are made and shared have united to induce -lawmakers to use the law to protect them. It is the story of RCA and -Armstrong; it is the dream of the Causbys. +This change gets justified as necessary to protect commercial +creativity. And indeed, protectionism is precisely its +motivation. But the protectionism that justifies the changes that I +will describe below is not the limited and balanced sort that has +defined the law in the past. This is not a protectionism to protect +artists. It is instead a protectionism to protect certain forms of +business. Corporations threatened by the potential of the Internet to +change the way both commercial and noncommercial culture are made and +shared have united to induce lawmakers to use the law to protect +them. It is the story of RCA and Armstrong; it is the dream of the +Causbys. For the Internet has unleashed an extraordinary possibility for many -to participate in the process of building and cultivating a culture that -reaches far beyond local boundaries. That power has changed the - marketplace -for making and cultivating culture generally, and that change -in turn threatens established content industries. The Internet is thus to -the industries that built and distributed content in the twentieth - century -what FM radio was to AM radio, or what the truck was to the -railroad industry of the nineteenth century: the beginning of the end, -or at least a substantial transformation. Digital technologies, tied to the -Internet, could produce a vastly more competitive and vibrant market -for building and cultivating culture; that market could include a much -wider and more diverse range of creators; those creators could produce -and distribute a much more vibrant range of creativity; and depending -upon a few important factors, those creators could earn more on average -from this system than creators do today—all so long as the RCAs of our -day don't use the law to protect themselves against this competition. - --Yet, as I argue in the pages that follow, that is precisely what is - happening -in our culture today. These modern-day equivalents of the early -twentieth-century radio or nineteenth-century railroads are using their -power to get the law to protect them against this new, more efficient, -more vibrant technology for building culture. They are succeeding in -their plan to remake the Internet before the Internet remakes them. +to participate in the process of building and cultivating a culture +that reaches far beyond local boundaries. That power has changed the +marketplace for making and cultivating culture generally, and that +change in turn threatens established content industries. The Internet +is thus to the industries that built and distributed content in the +twentieth century what FM radio was to AM radio, or what the truck was +to the railroad industry of the nineteenth century: the beginning of +the end, or at least a substantial transformation. Digital +technologies, tied to the Internet, could produce a vastly more +competitive and vibrant market for building and cultivating culture; +that market could include a much wider and more diverse range of +creators; those creators could produce and distribute a much more +vibrant range of creativity; and depending upon a few important +factors, those creators could earn more on average from this system +than creators do today—all so long as the RCAs of our day don't +use the law to protect themselves against this competition. + ++Yet, as I argue in the pages that follow, that is precisely what is +happening in our culture today. These modern-day equivalents of the +early twentieth-century radio or nineteenth-century railroads are +using their power to get the law to protect them against this new, +more efficient, more vibrant technology for building culture. They are +succeeding in their plan to remake the Internet before the Internet +remakes them. It doesn't seem this way to many. The battles over copyright and the @@ -801,8 +843,7 @@ Internet seem remote to most. To the few who follow them, they seem mainly about a much simpler brace of questions—whether "piracy" will be permitted, and whether "property" will be protected. The "war" that has been waged against the technologies of the Internet—what - Motion -Picture Association of America (MPAA) president Jack Valenti +Motion Picture Association of America (MPAA) president Jack Valenti calls his "own terrorist war" Amy Harmon, "Black Hawk Download: Moving Beyond Music, Pirates Use New Tools to Turn the Net into an Illicit Video Club," New York @@ -814,12 +855,11 @@ against it. If those really were the choices, then I would be with Jack Valenti -and the content industry. I, too, am a believer in property, and - especially -in the importance of what Mr. Valenti nicely calls "creative - property." -I believe that "piracy" is wrong, and that the law, properly tuned, -should punish "piracy," whether on or off the Internet. +and the content industry. I, too, am a believer in property, and +especially in the importance of what Mr. Valenti nicely calls +"creative property." I believe that "piracy" is wrong, and that the +law, properly tuned, should punish "piracy," whether on or off the +Internet. But those simple beliefs mask a much more fundamental question @@ -832,27 +872,27 @@ These values built a tradition that, for at least the first 180 years of our Republic, guaranteed creators the right to build freely upon their past, and protected creators and innovators from either state or private control. The First Amendment protected creators against state control. -And as Professor Neil Netanel powerfully argues, +And as Professor Neil Netanel powerfully argues, + -copyright law, - properly -balanced, protected creators against private control. Our tradition -was thus neither Soviet nor the tradition of patrons. It instead carved out -a wide berth within which creators could cultivate and extend our culture. +copyright law, properly balanced, protected creators against private +control. Our tradition was thus neither Soviet nor the tradition of +patrons. It instead carved out a wide berth within which creators +could cultivate and extend our culture.Neil W. Netanel, "Copyright and a Democratic Civil Society," Yale Law Journal 106 (1996): 283. + Netanel, Neil Weinstock Yet the law's response to the Internet, when tied to changes in the -technology of the Internet itself, has massively increased the effective -regulation of creativity in America. To build upon or critique the - culture -around us one must ask, Oliver Twist–like, for permission first. -Permission is, of course, often granted—but it is not often granted to -the critical or the independent. We have built a kind of cultural - nobility; -those within the noble class live easily; those outside it don't. But it -is nobility of any form that is alien to our tradition. +technology of the Internet itself, has massively increased the +effective regulation of creativity in America. To build upon or +critique the culture around us one must ask, Oliver Twist–like, +for permission first. Permission is, of course, often +granted—but it is not often granted to the critical or the +independent. We have built a kind of cultural nobility; those within +the noble class live easily; those outside it don't. But it is +nobility of any form that is alien to our tradition. @@ -876,27 +916,31 @@ culture if it is allowed to continue unchecked. We must come to understand the source of this war. We must resolve it soon. --Like the Causbys' battle, this war is, in part, about "property." -The property of this war is not as tangible as the Causbys', and no -innocent chicken has yet to lose its life. Yet the ideas surrounding this -"property" are as obvious to most as the Causbys' claim about the - sacredness -of their farm was to them. We are the Causbys. Most of us -take for granted the extraordinarily powerful claims that the owners of -"intellectual property" now assert. Most of us, like the Causbys, treat -these claims as obvious. And hence we, like the Causbys, object when -a new technology interferes with this property. It is as plain to us as it -was to them that the new technologies of the Internet are "trespassing" -upon legitimate claims of "property." It is as plain to us as it was to -them that the law should intervene to stop this trespass. - ++ Causby, Thomas Lee + Causby, Tinie +Like the Causbys' battle, this war is, in part, about "property." The +property of this war is not as tangible as the Causbys', and no +innocent chicken has yet to lose its life. Yet the ideas surrounding +this "property" are as obvious to most as the Causbys' claim about the +sacredness of their farm was to them. We are the Causbys. Most of us +take for granted the extraordinarily powerful claims that the owners +of "intellectual property" now assert. Most of us, like the Causbys, +treat these claims as obvious. And hence we, like the Causbys, object +when a new technology interferes with this property. It is as plain to +us as it was to them that the new technologies of the Internet are +"trespassing" upon legitimate claims of "property." It is as plain to +us as it was to them that the law should intervene to stop this +trespass. + ++ Causby, Thomas Lee Causby, Tinie And thus, when geeks and technologists defend their Armstrong or -Wright brothers technology, most of us are simply unsympathetic. - Common -sense does not revolt. Unlike in the case of the unlucky Causbys, -common sense is on the side of the property owners in this war. Unlike +Wright brothers technology, most of us are simply unsympathetic. +Common sense does not revolt. Unlike in the case of the unlucky +Causbys, common sense is on the side of the property owners in this +war. Unlike the lucky Wright brothers, the Internet has not inspired a revolution on its side. @@ -939,15 +983,16 @@ sense stand silent in the face of these extremes because, as with versus RCA, the more powerful side has ensured that it has the more powerful view? ++ Causby, Thomas Lee Causby, Tinie -I don't mean to be mysterious. My own views are resolved. I believe -it was right for common sense to revolt against the extremism of the -Causbys. I believe it would be right for common sense to revolt against -the extreme claims made today on behalf of "intellectual property." -What the law demands today is increasingly as silly as a sheriff - arresting -an airplane for trespass. But the consequences of this silliness will -be much more profound. +I don't mean to be mysterious. My own views are resolved. I believe it +was right for common sense to revolt against the extremism of the +Causbys. I believe it would be right for common sense to revolt +against the extreme claims made today on behalf of "intellectual +property." What the law demands today is increasingly as silly as a +sheriff arresting an airplane for trespass. But the consequences of +this silliness will be much more profound. @@ -1056,6 +1101,7 @@ from someone else without permission is wrong. It is a form of piracy.
@@ -3171,61 +3166,55 @@ United Artists Television, Inc.).
-Our point here is that unlike the problem of whether you have -any copyright protection at all, the problem here is whether - copyright -holders who are already compensated, who already have a -monopoly, should be permitted to extend that monopoly. . . . The +Our point here is that unlike the problem of whether you have any +copyright protection at all, the problem here is whether copyright +holders who are already compensated, who already have a monopoly, +should be permitted to extend that monopoly. . . . The question here is how much compensation they should have and how far back they should carry their right to compensation. -Copyright Law Revision—CATV, 216 (statement of Edwin M. - Zimmerman, -acting assistant attorney general). +Copyright Law Revision—CATV, 216 (statement of Edwin M. +Zimmerman, acting assistant attorney general).
-By the above decision . . . near 200,000 pounds worth of what -was honestly purchased at public sale, and which was yesterday -thought property is now reduced to nothing. The Booksellers of -London and Westminster, many of whom sold estates and houses -to purchase Copy-right, are in a manner ruined, and those who -after many years industry thought they had acquired a - competency -to provide for their families now find themselves without a -shilling to devise to their successors. +By the above decision . . . near 200,000 pounds worth of what was +honestly purchased at public sale, and which was yesterday thought +property is now reduced to nothing. The Booksellers of London and +Westminster, many of whom sold estates and houses to purchase +Copy-right, are in a manner ruined, and those who after many years +industry thought they had acquired a competency to provide for their +families now find themselves without a shilling to devise to their +successors. -@@ -4864,31 +4833,28 @@ Ibid. "Ruined" is a bit of an exaggeration. But it is not an exaggeration to say that the change was profound. The decision of the House of Lords -meant that the booksellers could no longer control how culture in - England -would grow and develop. Culture in England was thereafter free. -Not in the sense that copyrights would not be respected, for of course, -for a limited time after a work was published, the bookseller had an - exclusive -right to control the publication of that book. And not in the -sense that books could be stolen, for even after a copyright expired, you -still had to buy the book from someone. But free in the sense that the -culture and its growth would no longer be controlled by a small group -of publishers. As every free market does, this free market of free culture -would grow as the consumers and producers chose. English culture -would develop as the many English readers chose to let it develop— -chose in the books they bought and wrote; chose in the memes they -repeated and endorsed. Chose in a competitive context, not a context -in which the choices about what culture is available to people and -how they get access to it are made by the few despite the wishes of -the many. - Ibid. -At least, this was the rule in a world where the Parliament is - antimonopoly, -resistant to the protectionist pleas of publishers. In a world -where the Parliament is more pliant, free culture would be less - protected. +meant that the booksellers could no longer control how culture in +England would grow and develop. Culture in England was thereafter +free. Not in the sense that copyrights would not be respected, for of +course, for a limited time after a work was published, the bookseller +had an exclusive right to control the publication of that book. And +not in the sense that books could be stolen, for even after a +copyright expired, you still had to buy the book from someone. But +free in the sense that the culture and its growth would no longer be +controlled by a small group of publishers. As every free market does, +this free market of free culture would grow as the consumers and +producers chose. English culture would develop as the many English +readers chose to let it develop— chose in the books they bought +and wrote; chose in the memes they repeated and endorsed. Chose in a +competitive context, not a context in which the choices about what +culture is available to people and how they get access to it are made +by the few despite the wishes of the many. + ++At least, this was the rule in a world where the Parliament is +antimonopoly, resistant to the protectionist pleas of publishers. In a +world where the Parliament is more pliant, free culture would be less +protected. @@ -4908,19 +4874,17 @@ today.In 1990, Else was working on a documentary about Wagner's Ring -Cycle. The focus was stagehands at the San Francisco Opera. - Stagehands -are a particularly funny and colorful element of an opera. - During -a show, they hang out below the stage in the grips' lounge and in -the lighting loft. They make a perfect contrast to the art on the stage. +Cycle. The focus was stagehands at the San Francisco Opera. +Stagehands are a particularly funny and colorful element of an opera. +During a show, they hang out below the stage in the grips' lounge and +in the lighting loft. They make a perfect contrast to the art on the +stage. -During one of the performances, Else was shooting some - stagehands +During one of the performances, Else was shooting some stagehands playing checkers. In one corner of the room was a television set. -Playing on the television set, while the stagehands played checkers and -the opera company played Wagner, was The Simpsons. As Else judged +Playing on the television set, while the stagehands played checkers +and the opera company played Wagner, was The Simpsons. As Else judged it, this touch of cartoon helped capture the flavor of what was special about the scene. @@ -4933,13 +4897,11 @@ copyrighted material you need the permission of the copyright owner, unless "fair use" or some other privilege applies. -Else called Simpsons creator Matt Groening's office to get - permission. -Groening approved the shot. The shot was a - four-and-a-halfsecond -image on a tiny television set in the corner of the room. How -could it hurt? Groening was happy to have it in the film, but he told -Else to contact Gracie Films, the company that produces the program. +Else called Simpsons creator Matt Groening's office to get permission. +Groening approved the shot. The shot was a four-and-a-halfsecond image +on a tiny television set in the corner of the room. How could it hurt? +Groening was happy to have it in the film, but he told Else to contact +Gracie Films, the company that produces the program. Gracie Films was okay with it, too, but they, like Groening, wanted @@ -4949,78 +4911,74 @@ room shot of the film. Matt Groening had already given permission, Else said. He was just confirming the permission with Fox. -Then, as Else told me, "two things happened. First we - discovered -. . . that Matt Groening doesn't own his own creation—or at least -that someone [at Fox] believes he doesn't own his own creation." And -second, Fox "wanted ten thousand dollars as a licensing fee for us to use -this four-point-five seconds of . . . entirely unsolicited Simpsons which -was in the corner of the shot." +Then, as Else told me, "two things happened. First we discovered +. . . that Matt Groening doesn't own his own creation—or at +least that someone [at Fox] believes he doesn't own his own creation." +And second, Fox "wanted ten thousand dollars as a licensing fee for us +to use this four-point-five seconds of . . . entirely unsolicited +Simpsons which was in the corner of the shot." -Else was certain there was a mistake. He worked his way up to -someone he thought was a vice president for licensing, Rebecca - Herrera. -He explained to her, "There must be some mistake here. . . . -We're asking for your educational rate on this." That was the - educational +Else was certain there was a mistake. He worked his way up to someone +he thought was a vice president for licensing, Rebecca Herrera. He +explained to her, "There must be some mistake here. . . . We're +asking for your educational rate on this." That was the educational rate, Herrera told Else. A day or so later, Else called again to confirm what he had been told. -"I wanted to make sure I had my facts straight," he told me. "Yes, -you have your facts straight," she said. It would cost $10,000 to use the -clip of The Simpsons in the corner of a shot in a documentary film about +"I wanted to make sure I had my facts straight," he told me. "Yes, you +have your facts straight," she said. It would cost $10,000 to use the +clip of The Simpsons in the corner of a shot in a documentary film +about Wagner's Ring Cycle. And then, astonishingly, Herrera told Else, "And -if you quote me, I'll turn you over to our attorneys." As an assistant to -Herrera told Else later on, "They don't give a shit. They just want the -money." +if you quote me, I'll turn you over to our attorneys." As an assistant +to Herrera told Else later on, "They don't give a shit. They just want +the money." -Else didn't have the money to buy the right to replay what was - playing +Else didn't have the money to buy the right to replay what was playing on the television backstage at the San Francisco Opera. To reproduce -this reality was beyond the documentary filmmaker's budget. At the very -last minute before the film was to be released, Else digitally replaced the -shot with a clip from another film that he had worked on, The Day After -Trinity, from ten years before. +this reality was beyond the documentary filmmaker's budget. At the +very last minute before the film was to be released, Else digitally +replaced the shot with a clip from another film that he had worked on, +The Day After Trinity, from ten years before. -There's no doubt that someone, whether Matt Groening or Fox, -owns the copyright to The Simpsons. That copyright is their property. -To use that copyrighted material thus sometimes requires the - permission -of the copyright owner. If the use that Else wanted to make of the +There's no doubt that someone, whether Matt Groening or Fox, owns the +copyright to The Simpsons. That copyright is their property. To use +that copyrighted material thus sometimes requires the permission of +the copyright owner. If the use that Else wanted to make of the Simpsons copyright were one of the uses restricted by the law, then he would need to get the permission of the copyright owner before he -could use the work in that way. And in a free market, it is the owner of -the copyright who gets to set the price for any use that the law says the -owner gets to control. +could use the work in that way. And in a free market, it is the owner +of the copyright who gets to set the price for any use that the law +says the owner gets to control. -For example, "public performance" is a use of The Simpsons that -the copyright owner gets to control. If you take a selection of favorite +For example, "public performance" is a use of The Simpsons that the +copyright owner gets to control. If you take a selection of favorite episodes, rent a movie theater, and charge for tickets to come see "My -Favorite Simpsons," then you need to get permission from the - copyright +Favorite Simpsons," then you need to get permission from the copyright owner. And the copyright owner (rightly, in my view) can charge -whatever she wants—$10 or $1,000,000. That's her right, as set by -the law. +whatever she wants—$10 or $1,000,000. That's her right, as set +by the law. But when lawyers hear this story about Jon Else and Fox, their first thought is "fair use." -Else's use of just 4.5 seconds of an indirect shot -of a Simpsons episode is clearly a fair use of The Simpsons—and fair use -does not require the permission of anyone. +Else's use of just 4.5 seconds of an indirect shot of a Simpsons +episode is clearly a fair use of The Simpsons—and fair use does +not require the permission of anyone. -For an excellent argument that such use is "fair use," but that lawyers don't -permit recognition that it is "fair use," see Richard A. Posner with William -F. Patry, "Fair Use and Statutory Reform in the Wake of Eldred " (draft on -file with author), University of Chicago Law School, 5 August 2003. +For an excellent argument that such use is "fair use," but that +lawyers don't permit recognition that it is "fair use," see Richard +A. Posner with William F. Patry, "Fair Use and Statutory Reform in the +Wake of Eldred " (draft on file with author), University of Chicago +Law School, 5 August 2003. @@ -5028,49 +4986,42 @@ So I asked Else why he didn't just rely upon "fair use." Here's his reply: -The Simpsons fiasco was for me a great lesson in the gulf - between -what lawyers find irrelevant in some abstract sense, and -what is crushingly relevant in practice to those of us actually -trying to make and broadcast documentaries. I never had any -doubt that it was "clearly fair use" in an absolute legal sense. But -I couldn't rely on the concept in any concrete way. Here's why: +The Simpsons fiasco was for me a great lesson in the gulf between what +lawyers find irrelevant in some abstract sense, and what is crushingly +relevant in practice to those of us actually trying to make and +broadcast documentaries. I never had any doubt that it was "clearly +fair use" in an absolute legal sense. But I couldn't rely on the +concept in any concrete way. Here's why: -Before our films can be broadcast, the network requires -that we buy Errors and Omissions insurance. The carriers - require -a detailed "visual cue sheet" listing the source and - licensing -status of each shot in the film. They take a dim view of -"fair use," and a claim of "fair use" can grind the application -process to a halt. +Before our films can be broadcast, the network requires that we buy +Errors and Omissions insurance. The carriers require a detailed +"visual cue sheet" listing the source and licensing status of each +shot in the film. They take a dim view of "fair use," and a claim of +"fair use" can grind the application process to a halt. -I probably never should have asked Matt Groening in the -first place. But I knew (at least from folklore) that Fox had a -history of tracking down and stopping unlicensed Simpsons -usage, just as George Lucas had a very high profile litigating -Star Wars usage. So I decided to play by the book, thinking -that we would be granted free or cheap license to four seconds -of Simpsons. As a documentary producer working to - exhaustion -on a shoestring, the last thing I wanted was to risk legal -trouble, even nuisance legal trouble, and even to defend a +I probably never should have asked Matt Groening in the first +place. But I knew (at least from folklore) that Fox had a history of +tracking down and stopping unlicensed Simpsons usage, just as George +Lucas had a very high profile litigating Star Wars usage. So I decided +to play by the book, thinking that we would be granted free or cheap +license to four seconds of Simpsons. As a documentary producer working +to exhaustion on a shoestring, the last thing I wanted was to risk +legal trouble, even nuisance legal trouble, and even to defend a principle. -I did, in fact, speak with one of your colleagues at Stanford -Law School . . . who confirmed that it was fair use. He also -confirmed that Fox would "depose and litigate you to within -an inch of your life," regardless of the merits of my claim. He -made clear that it would boil down to who had the bigger - legal -department and the deeper pockets, me or them. +I did, in fact, speak with one of your colleagues at Stanford Law +School . . . who confirmed that it was fair use. He also confirmed +that Fox would "depose and litigate you to within an inch of your +life," regardless of the merits of my claim. He made clear that it +would boil down to who had the bigger legal department and the deeper +pockets, me or them. @@ -5082,26 +5033,26 @@ money. -In theory, fair use means you need no permission. The theory - therefore -supports free culture and insulates against a permission culture. -But in practice, fair use functions very differently. The fuzzy lines of -the law, tied to the extraordinary liability if lines are crossed, means -that the effective fair use for many types of creators is slight. The law -has the right aim; practice has defeated the aim. +In theory, fair use means you need no permission. The theory therefore +supports free culture and insulates against a permission culture. But +in practice, fair use functions very differently. The fuzzy lines of +the law, tied to the extraordinary liability if lines are crossed, +means that the effective fair use for many types of creators is +slight. The law has the right aim; practice has defeated the aim. This practice shows just how far the law has come from its -eighteenth-century roots. The law was born as a shield to protect - publishers' -profits against the unfair competition of a pirate. It has matured -into a sword that interferes with any use, transformative or not. +eighteenth-century roots. The law was born as a shield to protect +publishers' profits against the unfair competition of a pirate. It has +matured into a sword that interferes with any use, transformative or +not. CHAPTER EIGHT: Transformers + Allen, Paul Alben, Alex In 1993, Alex Alben was a lawyer working at Starwave, Inc. Starwave was an innovative company founded by Microsoft cofounder Paul Allen to @@ -5109,22 +5060,21 @@ develop digital entertainment. Long before the Internet became popular, Starwave began investing in new technology for delivering entertainment in anticipation of the power of networks. +Alben, Alex Alben had a special interest in new technology. He was intrigued by the emerging market for CD-ROM technology—not to distribute -film, but to do things with film that otherwise would be very difficult. -In 1993, he launched an initiative to develop a product to build - retrospectives -on the work of particular actors. The first actor chosen was -Clint Eastwood. The idea was to showcase all of the work of - Eastwood, -with clips from his films and interviews with figures important -to his career. - --At that time, Eastwood had made more than fifty films, as an actor -and as a director. Alben began with a series of interviews with - Eastwood, +film, but to do things with film that otherwise would be very +difficult. In 1993, he launched an initiative to develop a product to +build retrospectives on the work of particular actors. The first actor +chosen was Clint Eastwood. The idea was to showcase all of the work of +Eastwood, with clips from his films and interviews with figures +important to his career. + ++ Alben, Alex +At that time, Eastwood had made more than fifty films, as an actor and +as a director. Alben began with a series of interviews with Eastwood, asking him about his career. Because Starwave produced those interviews, it was free to include them on the CD. @@ -5136,34 +5086,36 @@ posters, scripts, and other material relating to the films Eastwood made. Most of his career was spent at Warner Brothers, and so it was relatively easy to get permission for that content.
+-So we very mechanically went about looking up the film clips. -We made some artistic decisions about what film clips to - include—of -course we were going to use the "Make my day" clip -from Dirty Harry. But you then need to get the guy on the ground -who's wiggling under the gun and you need to get his - permission. -And then you have to decide what you are going to pay -him. +So we very mechanically went about looking up the film clips. We made +some artistic decisions about what film clips to include—of +course we were going to use the "Make my day" clip from Dirty +Harry. But you then need to get the guy on the ground who's wiggling +under the gun and you need to get his permission. And then you have +to decide what you are going to pay him. -We decided that it would be fair if we offered them the - dayplayer -rate for the right to reuse that performance. We're talking -about a clip of less than a minute, but to reuse that performance -in the CD-ROM the rate at the time was about $600. -So we had to identify the people—some of them were hard to -identify because in Eastwood movies you can't tell who's the guy -crashing through the glass—is it the actor or is it the stuntman? -And then we just, we put together a team, my assistant and some -others, and we just started calling people. +We decided that it would be fair if we offered them the dayplayer rate +for the right to reuse that performance. We're talking about a clip of +less than a minute, but to reuse that performance in the CD-ROM the +rate at the time was about $600. So we had to identify the +people—some of them were hard to identify because in Eastwood +movies you can't tell who's the guy crashing through the +glass—is it the actor or is it the stuntman? And then we just, +we put together a team, my assistant and some others, and we just +started calling people.
-Everyone thought it would be too hard. Everyone just threw up -their hands and said, "Oh, my gosh, a film, it's so many - copyrights, -there's the music, there's the screenplay, there's the director, -there's the actors." But we just broke it down. We just put it into -its constituent parts and said, "Okay, there's this many actors, this -many directors, . . . this many musicians," and we just went at it -very systematically and cleared the rights. +Everyone thought it would be too hard. Everyone just threw up their +hands and said, "Oh, my gosh, a film, it's so many copyrights, there's +the music, there's the screenplay, there's the director, there's the +actors." But we just broke it down. We just put it into its +constituent parts and said, "Okay, there's this many actors, this many +directors, . . . this many musicians," and we just went at it very +systematically and cleared the rights.
--Absolutely. I think that if there were some fair-licensing - mechanism—where -you weren't subject to hold-ups and you weren't +Absolutely. I think that if there were some fair-licensing +mechanism—where you weren't subject to hold-ups and you weren't subject to estranged former spouses—you'd see a lot more of this work, because it wouldn't be so daunting to try to put together a -retrospective of someone's career and meaningfully illustrate it -with lots of media from that person's career. You'd build in a cost -as the producer of one of these things. You'd build in a cost of - paying -X dollars to the talent that performed. But it would be a -known cost. That's the thing that trips everybody up and makes -this kind of product hard to get off the ground. If you knew I have -a hundred minutes of film in this product and it's going to cost me -X, then you build your budget around it, and you can get - investments -and everything else that you need to produce it. But if you -say, "Oh, I want a hundred minutes of something and I have no -idea what it's going to cost me, and a certain number of people are -going to hold me up for money," then it becomes difficult to put -one of these things together. +retrospective of someone's career and meaningfully illustrate it with +lots of media from that person's career. You'd build in a cost as the +producer of one of these things. You'd build in a cost of paying X +dollars to the talent that performed. But it would be a known +cost. That's the thing that trips everybody up and makes this kind of +product hard to get off the ground. If you knew I have a hundred +minutes of film in this product and it's going to cost me X, then you +build your budget around it, and you can get investments and +everything else that you need to produce it. But if you say, "Oh, I +want a hundred minutes of something and I have no idea what it's going +to cost me, and a certain number of people are going to hold me up for +money," then it becomes difficult to put one of these things together.
-Do you remember when Dan Quayle was interacting with - Murphy -Brown? Remember that back and forth surreal experience of -a politician interacting with a fictional television character? If you -were a graduate student wanting to study that, and you wanted to -get those original back and forth exchanges between the two, the +Do you remember when Dan Quayle was interacting with Murphy Brown? +Remember that back and forth surreal experience of a politician +interacting with a fictional television character? If you were a +graduate student wanting to study that, and you wanted to get those +original back and forth exchanges between the two, the 60 Minutes episode that came out after it . . . it would be almost @@ -5613,199 +5532,179 @@ impossible. . . . Those materials are almost unfindable. . . . Why is that? Why is it that the part of our culture that is recorded in newspapers remains perpetually accessible, while the part that is recorded on videotape is not? How is it that we've created a world -where researchers trying to understand the effect of media on - nineteenthcentury -America will have an easier time than researchers trying to - understand -the effect of media on twentieth-century America? +where researchers trying to understand the effect of media on +nineteenthcentury America will have an easier time than researchers +trying to understand the effect of media on twentieth-century America? In part, this is because of the law. Early in American copyright law, -copyright owners were required to deposit copies of their work in - libraries. -These copies were intended both to facilitate the spread of -knowledge and to assure that a copy of the work would be around once -the copyright expired, so that others might access and copy the work. +copyright owners were required to deposit copies of their work in +libraries. These copies were intended both to facilitate the spread +of knowledge and to assure that a copy of the work would be around +once the copyright expired, so that others might access and copy the +work. -These rules applied to film as well. But in 1915, the Library of - Congress -made an exception for film. Film could be copyrighted so long -as such deposits were made. But the filmmaker was then allowed to -borrow back the deposits—for an unlimited time at no cost. In 1915 -alone, there were more than 5,475 films deposited and "borrowed back." -Thus, when the copyrights to films expire, there is no copy held by any -library. The copy exists—if it exists at all—in the library archive of the -film company. - -Doug Herrick, "Toward a National Film Collection: Motion Pictures at the -Library of Congress," Film Library Quarterly 13 nos. 2–3 (1980): 5; - Anthony -Slide, Nitrate Won't Wait: A History of Film Preservation in the United -States ( Jefferson, N.C.: McFarland & Co., 1992), 36. +These rules applied to film as well. But in 1915, the Library +of Congress made an exception for film. Film could be copyrighted so +long as such deposits were made. But the filmmaker was then allowed to +borrow back the deposits—for an unlimited time at no cost. In +1915 alone, there were more than 5,475 films deposited and "borrowed +back." Thus, when the copyrights to films expire, there is no copy +held by any library. The copy exists—if it exists at +all—in the library archive of the film company. + +Doug Herrick, "Toward a National Film Collection: Motion Pictures at +the Library of Congress," Film Library Quarterly 13 nos. 2–3 +(1980): 5; Anthony Slide, Nitrate Won't Wait: A History of Film +Preservation in the United States ( Jefferson, N.C.: McFarland & +Co., 1992), 36. The same is generally true about television. Television broadcasts were originally not copyrighted—there was no way to capture the broadcasts, so there was no fear of "theft." But as technology enabled -capturing, broadcasters relied increasingly upon the law. The law - required -they make a copy of each broadcast for the work to be - "copyrighted." -But those copies were simply kept by the broadcasters. No -library had any right to them; the government didn't demand them. -The content of this part of American culture is practically invisible to -anyone who would look. +capturing, broadcasters relied increasingly upon the law. The law +required they make a copy of each broadcast for the work to be +"copyrighted." But those copies were simply kept by the +broadcasters. No library had any right to them; the government didn't +demand them. The content of this part of American culture is +practically invisible to anyone who would look. Kahle was eager to correct this. Before September 11, 2001, he and -his allies had started capturing television. They selected twenty - stations -from around the world and hit the Record button. After - September -11, Kahle, working with dozens of others, selected twenty stations -from around the world and, beginning October 11, 2001, made their -coverage during the week of September 11 available free on-line. - Anyone -could see how news reports from around the world covered the +his allies had started capturing television. They selected twenty +stations from around the world and hit the Record button. After +September 11, Kahle, working with dozens of others, selected twenty +stations from around the world and, beginning October 11, 2001, made +their coverage during the week of September 11 available free on-line. +Anyone could see how news reports from around the world covered the events of that day. -Kahle had the same idea with film. Working with Rick Prelinger, -whose archive of film includes close to 45,000 "ephemeral films" -(meaning films other than Hollywood movies, films that were never -copyrighted), Kahle established the Movie Archive. Prelinger let Kahle -digitize 1,300 films in this archive and post those films on the Internet -to be downloaded for free. Prelinger's is a for-profit company. It sells +Kahle had the same idea with film. Working with Rick Prelinger, whose +archive of film includes close to 45,000 "ephemeral films" (meaning +films other than Hollywood movies, films that were never copyrighted), +Kahle established the Movie Archive. Prelinger let Kahle digitize +1,300 films in this archive and post those films on the Internet to be +downloaded for free. Prelinger's is a for-profit company. It sells copies of these films as stock footage. What he has discovered is that -after he made a significant chunk available for free, his stock footage -sales went up dramatically. People could easily find the material they -wanted to use. Some downloaded that material and made films on -their own. Others purchased copies to enable other films to be made. -Either way, the archive enabled access to this important part of our - culture. -Want to see a copy of the "Duck and Cover" film that instructed -children how to save themselves in the middle of nuclear attack? Go to -archive.org, and you can download the film in a few minutes—for free. +after he made a significant chunk available for free, his stock +footage sales went up dramatically. People could easily find the +material they wanted to use. Some downloaded that material and made +films on their own. Others purchased copies to enable other films to +be made. Either way, the archive enabled access to this important +part of our culture. Want to see a copy of the "Duck and Cover" film +that instructed children how to save themselves in the middle of +nuclear attack? Go to archive.org, and you can download the film in a +few minutes—for free. -Here again, Kahle is providing access to a part of our culture that -we otherwise could not get easily, if at all. It is yet another part of what -defines the twentieth century that we have lost to history. The law -doesn't require these copies to be kept by anyone, or to be deposited in -an archive by anyone. Therefore, there is no simple way to find them. +Here again, Kahle is providing access to a part of our culture that we +otherwise could not get easily, if at all. It is yet another part of +what defines the twentieth century that we have lost to history. The +law doesn't require these copies to be kept by anyone, or to be +deposited in an archive by anyone. Therefore, there is no simple way +to find them. -The key here is access, not price. Kahle wants to enable free access to -this content, but he also wants to enable others to sell access to it. His -aim is to ensure competition in access to this important part of our - culture. -Not during the commercial life of a bit of creative property, but - during -a second life that all creative property has—a noncommercial life. +The key here is access, not price. Kahle wants to enable free access +to this content, but he also wants to enable others to sell access to +it. His aim is to ensure competition in access to this important part +of our culture. Not during the commercial life of a bit of creative +property, but during a second life that all creative property +has—a noncommercial life. For here is an idea that we should more clearly recognize. Every bit -of creative property goes through different "lives." In its first life, if the +of creative property goes through different "lives." In its first +life, if the -creator is lucky, the content is sold. In such cases the commercial - market -is successful for the creator. The vast majority of creative property -doesn't enjoy such success, but some clearly does. For that content, -commercial life is extremely important. Without this commercial - market, -there would be, many argue, much less creativity. +creator is lucky, the content is sold. In such cases the commercial +market is successful for the creator. The vast majority of creative +property doesn't enjoy such success, but some clearly does. For that +content, commercial life is extremely important. Without this +commercial market, there would be, many argue, much less creativity. -After the commercial life of creative property has ended, our - tradition -has always supported a second life as well. A newspaper delivers -the news every day to the doorsteps of America. The very next day, it is -used to wrap fish or to fill boxes with fragile gifts or to build an archive -of knowledge about our history. In this second life, the content can -continue to inform even if that information is no longer sold. +After the commercial life of creative property has ended, our +tradition has always supported a second life as well. A newspaper +delivers the news every day to the doorsteps of America. The very next +day, it is used to wrap fish or to fill boxes with fragile gifts or to +build an archive of knowledge about our history. In this second life, +the content can continue to inform even if that information is no +longer sold. -The same has always been true about books. A book goes out of -print very quickly (the average today is after about a year +). After +it is out of print, it can be sold in used book stores without the +copyright owner getting anything and stored in libraries, where many +get to read the book, also for free. Used book stores and libraries +are thus the second life of a book. That second life is extremely +important to the spread and stability of culture. + +The same has always been true about books. A book goes out of print +very quickly (the average today is after about a year -). After it is -out of print, it can be sold in used book stores without the copyright -owner getting anything and stored in libraries, where many get to read -the book, also for free. Used book stores and libraries are thus the - second -life of a book. That second life is extremely important to the -spread and stability of culture. - Dave Barns, "Fledgling Career in Antique Books: Woodstock Landlord, Bar Owner Starts a New Chapter by Adopting Business," Chicago Tribune, 5 September 1997, at Metro Lake 1L. Of books published between 1927 -and 1946, only 2.2 percent were in print in 2002. R. Anthony Reese, "The -First Sale Doctrine in the Era of Digital Networks," Boston College Law - Review -44 (2003): 593 n. 51. - -Yet increasingly, any assumption about a stable second life for - creative -property does not hold true with the most important components -of popular culture in the twentieth and twenty-first centuries. For -these—television, movies, music, radio, the Internet—there is no - guarantee -of a second life. For these sorts of culture, it is as if we've replaced -libraries with Barnes & Noble superstores. With this culture, what's -accessible is nothing but what a certain limited market demands. - Beyond -that, culture disappears. +and 1946, only 2.2 percent were in print in 2002. R. Anthony Reese, +"The First Sale Doctrine in the Era of Digital Networks," Boston +College Law Review 44 (2003): 593 n. 51. + +Yet increasingly, any assumption about a stable second life for +creative property does not hold true with the most important +components of popular culture in the twentieth and twenty-first +centuries. For these—television, movies, music, radio, the +Internet—there is no guarantee of a second life. For these sorts +of culture, it is as if we've replaced libraries with Barnes & +Noble superstores. With this culture, what's accessible is nothing but +what a certain limited market demands. Beyond that, culture +disappears. For most of the twentieth century, it was economics that made this -so. It would have been insanely expensive to collect and make - accessible -all television and film and music: The cost of analog copies is - extraordinarily -high. So even though the law in principle would have -restricted the ability of a Brewster Kahle to copy culture generally, the +so. It would have been insanely expensive to collect and make +accessible all television and film and music: The cost of analog +copies is extraordinarily high. So even though the law in principle +would have restricted the ability of a Brewster Kahle to copy culture +generally, the -real restriction was economics. The market made it impossibly difficult -to do anything about this ephemeral culture; the law had little - practical -effect. +real restriction was economics. The market made it impossibly +difficult to do anything about this ephemeral culture; the law had +little practical effect. -Perhaps the single most important feature of the digital revolution -is that for the first time since the Library of Alexandria, it is feasible to -imagine constructing archives that hold all culture produced or - distributed -publicly. Technology makes it possible to imagine an archive of all -books published, and increasingly makes it possible to imagine an -archive of all moving images and sound. +Perhaps the single most important feature of the digital revolution is +that for the first time since the Library of Alexandria, it is +feasible to imagine constructing archives that hold all culture +produced or distributed publicly. Technology makes it possible to +imagine an archive of all books published, and increasingly makes it +possible to imagine an archive of all moving images and sound. -The scale of this potential archive is something we've never - imagined -before. The Brewster Kahles of our history have dreamed about it; -but we are for the first time at a point where that dream is possible. As +The scale of this potential archive is something we've never imagined +before. The Brewster Kahles of our history have dreamed about it; but +we are for the first time at a point where that dream is possible. As Kahle describes, -It looks like there's about two to three million recordings of - music. -Ever. There are about a hundred thousand theatrical releases -of movies, . . . and about one to two million movies [distributed] -during the twentieth century. There are about twenty-six million -different titles of books. All of these would fit on computers that -would fit in this room and be able to be afforded by a small - company. -So we're at a turning point in our history. Universal access is -the goal. And the opportunity of leading a different life, based on -this, is . . . thrilling. It could be one of the things humankind -would be most proud of. Up there with the Library of Alexandria, -putting a man on the moon, and the invention of the printing -press. +It looks like there's about two to three million recordings of music. +Ever. There are about a hundred thousand theatrical releases of +movies, . . . and about one to two million movies [distributed] during +the twentieth century. There are about twenty-six million different +titles of books. All of these would fit on computers that would fit in +this room and be able to be afforded by a small company. So we're at +a turning point in our history. Universal access is the goal. And the +opportunity of leading a different life, based on this, is +. . . thrilling. It could be one of the things humankind would be most +proud of. Up there with the Library of Alexandria, putting a man on +the moon, and the invention of the printing press. @@ -5813,258 +5712,236 @@ Kahle is not the only librarian. The Internet Archive is not the only archive. But Kahle and the Internet Archive suggest what the future of libraries or archives could be. When the commercial life of creative property ends, I don't know. But it does. And whenever it does, Kahle -and his archive hint at a world where this knowledge, and culture, - remains -perpetually available. Some will draw upon it to understand it; +and his archive hint at a world where this knowledge, and culture, +remains perpetually available. Some will draw upon it to understand +it; -some to criticize it. Some will use it, as Walt Disney did, to re-create -the past for the future. These technologies promise something that had -become unimaginable for much of our past—a future for our past. The -technology of digital arts could make the dream of the Library of -Alexandria real again. +some to criticize it. Some will use it, as Walt Disney did, to +re-create the past for the future. These technologies promise +something that had become unimaginable for much of our past—a +future for our past. The technology of digital arts could make the +dream of the Library of Alexandria real again. -Technologists have thus removed the economic costs of building -such an archive. But lawyers' costs remain. For as much as we might -like to call these "archives," as warm as the idea of a "library" might -seem, the "content" that is collected in these digital spaces is also - someone's -"property." And the law of property restricts the freedoms that -Kahle and others would exercise. +Technologists have thus removed the economic costs of building such an +archive. But lawyers' costs remain. For as much as we might like to +call these "archives," as warm as the idea of a "library" might seem, +the "content" that is collected in these digital spaces is also +someone's "property." And the law of property restricts the freedoms +that Kahle and others would exercise. CHAPTER TEN: "Property" -Jack Valenti has been the president of the Motion Picture - Association -of America since 1966. He first came to Washington, D.C., -with Lyndon Johnson's administration—literally. The famous picture -of Johnson's swearing-in on Air Force One after the assassination of +Jack Valenti has been the president of the Motion Picture Association +of America since 1966. He first came to Washington, D.C., with Lyndon +Johnson's administration—literally. The famous picture of +Johnson's swearing-in on Air Force One after the assassination of President Kennedy has Valenti in the background. In his almost forty years of running the MPAA, Valenti has established himself as perhaps the most prominent and effective lobbyist in Washington. -The MPAA is the American branch of the international Motion -Picture Association. It was formed in 1922 as a trade association whose -goal was to defend American movies against increasing domestic - criticism. -The organization now represents not only filmmakers but - producers -and distributors of entertainment for television, video, and -cable. Its board is made up of the chairmen and presidents of the seven -major producers and distributors of motion picture and television - programs -in the United States: Walt Disney, Sony Pictures - Entertainment, -MGM, Paramount Pictures, Twentieth Century Fox, Universal -Studios, and Warner Brothers. +The MPAA is the American branch of the international Motion Picture +Association. It was formed in 1922 as a trade association whose goal +was to defend American movies against increasing domestic criticism. +The organization now represents not only filmmakers but producers and +distributors of entertainment for television, video, and cable. Its +board is made up of the chairmen and presidents of the seven major +producers and distributors of motion picture and television programs +in the United States: Walt Disney, Sony Pictures Entertainment, MGM, +Paramount Pictures, Twentieth Century Fox, Universal Studios, and +Warner Brothers. -Valenti is only the third president of the MPAA. No president -before him has had as much influence over that organization, or over -Washington. As a Texan, Valenti has mastered the single most - important +Valenti is only the third president of the MPAA. No president before +him has had as much influence over that organization, or over +Washington. As a Texan, Valenti has mastered the single most important political skill of a Southerner—the ability to appear simple and -slow while hiding a lightning-fast intellect. To this day, Valenti plays -the simple, humble man. But this Harvard MBA, and author of four +slow while hiding a lightning-fast intellect. To this day, Valenti +plays the simple, humble man. But this Harvard MBA, and author of four books, who finished high school at the age of fifteen and flew more than fifty combat missions in World War II, is no Mr. Smith. When Valenti went to Washington, he mastered the city in a quintessentially Washingtonian way. -In defending artistic liberty and the freedom of speech that our - culture -depends upon, the MPAA has done important good. In crafting +In defending artistic liberty and the freedom of speech that our +culture depends upon, the MPAA has done important good. In crafting the MPAA rating system, it has probably avoided a great deal of speech-regulating harm. But there is an aspect to the organization's mission that is both the most radical and the most important. This is -the organization's effort, epitomized in Valenti's every act, to redefine -the meaning of "creative property." +the organization's effort, epitomized in Valenti's every act, to +redefine the meaning of "creative property." -In 1982, Valenti's testimony to Congress captured the strategy - perfectly: +In 1982, Valenti's testimony to Congress captured the strategy +perfectly: -No matter the lengthy arguments made, no matter the charges -and the counter-charges, no matter the tumult and the shouting, -reasonable men and women will keep returning to the - fundamental -issue, the central theme which animates this entire debate: - Creative -property owners must be accorded the same rights and protection -resident in all other property owners in the nation. That is the issue. -That is the question. And that is the rostrum on which this entire -hearing and the debates to follow must rest. +No matter the lengthy arguments made, no matter the charges and the +counter-charges, no matter the tumult and the shouting, reasonable men +and women will keep returning to the fundamental issue, the central +theme which animates this entire debate: Creative property owners must +be accorded the same rights and protection resident in all other +property owners in the nation. That is the issue. That is the +question. And that is the rostrum on which this entire hearing and the +debates to follow must rest. Home Recording of Copyrighted Works: Hearings on H.R. 4783, H.R. -4794, H.R. 4808, H.R. 5250, H.R. 5488, and H.R. 5705 Before the - Subcommittee -on Courts, Civil Liberties, and the Administration of Justice of -the Committee on the Judiciary of the House of Representatives, 97th -Cong., 2nd sess. (1982): 65 (testimony of Jack Valenti). +4794, H.R. 4808, H.R. 5250, H.R. 5488, and H.R. 5705 Before the +Subcommittee on Courts, Civil Liberties, and the Administration of +Justice of the Committee on the Judiciary of the House of +Representatives, 97th Cong., 2nd sess. (1982): 65 (testimony of Jack +Valenti). The strategy of this rhetoric, like the strategy of most of Valenti's -rhetoric, is brilliant and simple and brilliant because simple. The - "central -theme" to which "reasonable men and women" will return is this: +rhetoric, is brilliant and simple and brilliant because simple. The +"central theme" to which "reasonable men and women" will return is +this: "Creative property owners must be accorded the same rights and - protections -resident in all other property owners in the nation." There are -no second-class citizens, Valenti might have continued. There should -be no second-class property owners. +protections resident in all other property owners in the nation." +There are no second-class citizens, Valenti might have +continued. There should be no second-class property owners. This claim has an obvious and powerful intuitive pull. It is stated with such clarity as to make the idea as obvious as the notion that we -use elections to pick presidents. But in fact, there is no more extreme a -claim made by anyone who is serious in this debate than this claim of -Valenti's. Jack Valenti, however sweet and however brilliant, is perhaps -the nation's foremost extremist when it comes to the nature and scope -of "creative property." His views have no reasonable connection to our -actual legal tradition, even if the subtle pull of his Texan charm has -slowly redefined that tradition, at least in Washington. - --While "creative property" is certainly "property" in a nerdy and - precise -sense that lawyers are trained to understand, +it has never been the case, nor should it be, that +"creative property owners" have been "accorded the same rights and +protection resident in all other property owners." Indeed, if creative +property owners were given the same rights as all other property +owners, that would effect a radical, and radically undesirable, change +in our tradition. + +use elections to pick presidents. But in fact, there is no more +extreme a claim made by anyone who is serious in this debate than this +claim of Valenti's. Jack Valenti, however sweet and however brilliant, +is perhaps the nation's foremost extremist when it comes to the nature +and scope of "creative property." His views have no reasonable +connection to our actual legal tradition, even if the subtle pull of +his Texan charm has slowly redefined that tradition, at least in +Washington. + ++While "creative property" is certainly "property" in a nerdy and +precise sense that lawyers are trained to understand, -it has never been the -case, nor should it be, that "creative property owners" have been - "accorded -the same rights and protection resident in all other property -owners." Indeed, if creative property owners were given the same rights -as all other property owners, that would effect a radical, and radically -undesirable, change in our tradition. - -Lawyers speak of "property" not as an absolute thing, but as a bundle of -rights that are sometimes associated with a particular object. Thus, my -"property right" to my car gives me the right to exclusive use, but not the -right to drive at 150 miles an hour. For the best effort to connect the - ordinary -meaning of "property" to "lawyer talk," see Bruce Ackerman, Private -Property and the Constitution (New Haven: Yale University Press, 1977), -26–27. - -Valenti knows this. But he speaks for an industry that cares squat -for our tradition and the values it represents. He speaks for an industry -that is instead fighting to restore the tradition that the British - overturned -in 1710. In the world that Valenti's changes would create, a -powerful few would exercise powerful control over how our creative +Lawyers speak of "property" not as an absolute thing, but as a bundle +of rights that are sometimes associated with a particular +object. Thus, my "property right" to my car gives me the right to +exclusive use, but not the right to drive at 150 miles an hour. For +the best effort to connect the ordinary meaning of "property" to +"lawyer talk," see Bruce Ackerman, Private Property and the +Constitution (New Haven: Yale University Press, 1977), 26–27. + +Valenti knows this. But he speaks for an industry that cares squat for +our tradition and the values it represents. He speaks for an industry +that is instead fighting to restore the tradition that the British +overturned in 1710. In the world that Valenti's changes would create, +a powerful few would exercise powerful control over how our creative culture would develop. I have two purposes in this chapter. The first is to convince you -that, historically, Valenti's claim is absolutely wrong. The second is to -convince you that it would be terribly wrong for us to reject our - history. -We have always treated rights in creative property differently -from the rights resident in all other property owners. They have never -been the same. And they should never be the same, because, however -counterintuitive this may seem, to make them the same would be to +that, historically, Valenti's claim is absolutely wrong. The second is +to convince you that it would be terribly wrong for us to reject our +history. We have always treated rights in creative property +differently from the rights resident in all other property +owners. They have never been the same. And they should never be the +same, because, however counterintuitive this may seem, to make them +the same would be to -fundamentally weaken the opportunity for new creators to create. - Creativity -depends upon the owners of creativity having less than perfect -control. - --Organizations such as the MPAA, whose board includes the most -powerful of the old guard, have little interest, their rhetoric - notwithstanding, -in assuring that the new can displace them. No organization -does. No person does. (Ask me about tenure, for example.) But what's -good for the MPAA is not necessarily good for America. A society that -defends the ideals of free culture must preserve precisely the - opportunity -for new creativity to threaten the old. -To get just a hint that there is something fundamentally wrong in +fundamentally weaken the opportunity for new creators to create. +Creativity depends upon the owners of creativity having less than +perfect control. + ++Organizations such as the MPAA, whose board includes the most powerful +of the old guard, have little interest, their rhetoric +notwithstanding, in assuring that the new can displace them. No +organization does. No person does. (Ask me about tenure, for example.) +But what's good for the MPAA is not necessarily good for America. A +society that defends the ideals of free culture must preserve +precisely the opportunity for new creativity to threaten the old. To +get just a hint that there is something fundamentally wrong in Valenti's argument, we need look no further than the United States Constitution itself. -The framers of our Constitution loved "property." Indeed, so -strongly did they love property that they built into the Constitution an -important requirement. If the government takes your property—if it -condemns your house, or acquires a slice of land from your farm—it is -required, under the Fifth Amendment's "Takings Clause," to pay you -"just compensation" for that taking. The Constitution thus guarantees -that property is, in a certain sense, sacred. It cannot ever be taken from -the property owner unless the government pays for the privilege. +The framers of our Constitution loved "property." Indeed, so strongly +did they love property that they built into the Constitution an +important requirement. If the government takes your property—if +it condemns your house, or acquires a slice of land from your +farm—it is required, under the Fifth Amendment's "Takings +Clause," to pay you "just compensation" for that taking. The +Constitution thus guarantees that property is, in a certain sense, +sacred. It cannot ever be taken from the property owner unless the +government pays for the privilege. Yet the very same Constitution speaks very differently about what Valenti calls "creative property." In the clause granting Congress the -power to create "creative property," the Constitution requires that after -a "limited time," Congress take back the rights that it has granted and -set the "creative property" free to the public domain. Yet when - Congress -does this, when the expiration of a copyright term "takes" your -copyright and turns it over to the public domain, Congress does not -have any obligation to pay "just compensation" for this "taking." - Instead, -the same Constitution that requires compensation for your land +power to create "creative property," the Constitution requires that +after a "limited time," Congress take back the rights that it has +granted and set the "creative property" free to the public domain. Yet +when Congress does this, when the expiration of a copyright term +"takes" your copyright and turns it over to the public domain, +Congress does not have any obligation to pay "just compensation" for +this "taking." Instead, the same Constitution that requires +compensation for your land -requires that you lose your "creative property" right without any - compensation -at all. +requires that you lose your "creative property" right without any +compensation at all. The Constitution thus on its face states that these two forms of -property are not to be accorded the same rights. They are plainly to be -treated differently. Valenti is therefore not just asking for a change in -our tradition when he argues that creative-property owners should be -accorded the same rights as every other property-right owner. He is - effectively -arguing for a change in our Constitution itself. +property are not to be accorded the same rights. They are plainly to +be treated differently. Valenti is therefore not just asking for a +change in our tradition when he argues that creative-property owners +should be accorded the same rights as every other property-right +owner. He is effectively arguing for a change in our Constitution +itself. Arguing for a change in our Constitution is not necessarily wrong. There was much in our original Constitution that was plainly wrong. -The Constitution of 1789 entrenched slavery; it left senators to be - appointed -rather than elected; it made it possible for the electoral college -to produce a tie between the president and his own vice president (as it -did in 1800). The framers were no doubt extraordinary, but I would be -the first to admit that they made big mistakes. We have since rejected -some of those mistakes; no doubt there could be others that we should -reject as well. So my argument is not simply that because Jefferson did -it, we should, too. +The Constitution of 1789 entrenched slavery; it left senators to be +appointed rather than elected; it made it possible for the electoral +college to produce a tie between the president and his own vice +president (as it did in 1800). The framers were no doubt +extraordinary, but I would be the first to admit that they made big +mistakes. We have since rejected some of those mistakes; no doubt +there could be others that we should reject as well. So my argument is +not simply that because Jefferson did it, we should, too. Instead, my argument is that because Jefferson did it, we should at least try to understand why. Why did the framers, fanatical property -types that they were, reject the claim that creative property be given the -same rights as all other property? Why did they require that for - creative -property there must be a public domain? +types that they were, reject the claim that creative property be given +the same rights as all other property? Why did they require that for +creative property there must be a public domain? -To answer this question, we need to get some perspective on the - history -of these "creative property" rights, and the control that they - enabled. -Once we see clearly how differently these rights have been -defined, we will be in a better position to ask the question that should -be at the core of this war: Not whether creative property should be - protected, -but how. Not whether we will enforce the rights the law gives to -creative-property owners, but what the particular mix of rights ought to -be. Not whether artists should be paid, but whether institutions designed -to assure that artists get paid need also control how culture develops. +To answer this question, we need to get some perspective on the +history of these "creative property" rights, and the control that they +enabled. Once we see clearly how differently these rights have been +defined, we will be in a better position to ask the question that +should be at the core of this war: Not whether creative property +should be protected, but how. Not whether we will enforce the rights +the law gives to creative-property owners, but what the particular mix +of rights ought to be. Not whether artists should be paid, but whether +institutions designed to assure that artists get paid need also +control how culture develops. @@ -6082,19 +5959,17 @@ weaken the right or regulation. I represented it with this diagram: ![]()
FCC Oversight: Hearing Before the Senate Commerce, Science and Transportation Committee, 108th Cong., 1st sess. (22 May 2003) -(statement of Senator John McCain).
@@ -8081,45 +7919,40 @@ for the Lear story, not included in the prepared remarks, see@@ -8024,6 +7861,7 @@ the same function in the United States. James Fallows, "The Age of Murdoch," Atlantic Monthly (September 2003): 89. + Fallows, James
@@ -8144,10 +7976,9 @@ their channel and then distribute worldwide everything that goes through their controlled distribution system, then what you get is fewer and fewer actual voices participating in the process. [We -u]sed to have dozens and dozens of thriving independent - production -companies producing television programs. Now you have less -than a handful. +u]sed to have dozens and dozens of thriving independent production +companies producing television programs. Now you have less than a +handful. "Barry Diller Takes on Media Deregulation," Now with Bill Moyers, Bill Moyers, 25 April 2003, edited transcript available at @@ -8156,17 +7987,16 @@ Moyers, 25 April 2003, edited transcript available at
@@ -8975,10 +8759,12 @@ first time, the law should defend the old against the new, just when the power of the property called "intellectual property" is at its greatest in our history. ++ Causby, Thomas Lee Causby, Tinie -Yet "common sense" does not see it this way. Common sense is still -on the side of the Causbys and the content industry. The extreme -claims of control in the name of property still resonate; the uncritical +Yet "common sense" does not see it this way. Common sense is still on +the side of the Causbys and the content industry. The extreme claims +of control in the name of property still resonate; the uncritical rejection of "piracy" still has play. @@ -9060,7 +8846,8 @@ Approval for SEC Settlement" (7 July 2003), available at And under legislation being pushed in Congress right now, a doctor who negligently removes the wrong leg in an operation would be liable for no more than $250,000 in damages for pain and -suffering. +suffering. ++ Can common sense recognize the absurdity in a world where the maximum fine for downloading two songs off the Internet is more @@ -9218,6 +9006,7 @@ perspectives are constantly attuned to the ways in which regulation simply enables the powerful industries of today to protect themselves against the competitors of tomorrow.The bill, modeled after California's tort reform model, was passed in the House of Representatives but defeated in a Senate vote in July 2003. For an overview, see Tanya Albert, "Measure Stalls in Senate: `We'll Be Back,' @@ -9070,6 +8857,7 @@ and "Senate Turns Back Malpractice Caps," CBSNews.com, 9 July 2003, available at link #39 . President Bush has continued to urge tort reform in recent months. +Bush, George W. Barry, Hank This is the single most dramatic effect of the shift in regulatory @@ -9317,6 +9106,8 @@ industry directs its guns against them. It is also you. So those of you who believe the law should be less restrictive should realize that such a view of the law will cost you and your firm dearly. ++ Hummer, John Barry, Hank This strategy is not just limited to the lawyers. In April 2003, Universal and EMI brought a lawsuit against Hummer Winblad, the @@ -9347,31 +9138,32 @@ are afraid of technologies that touch content. In an article in Business 2.0, Rafe Needleman describes a discussion with BMW: +BMW I asked why, with all the storage capacity and computer power in the car, there was no way to play MP3 files. I was told that BMW engineers in Germany had rigged a new vehicle to play MP3s via the car's built-in sound system, but that the company's marketing and legal departments weren't comfortable with pushing this - forward -for release stateside. Even today, no new cars are sold in the -United States with bona fide MP3 players. . . . - Rafe Needleman, "Driving in Cars with MP3s," Business 2.0, 16 June +forward for release stateside. Even today, no new cars are sold in the +United States with bona fide MP3 players. . . . + + +Rafe Needleman, "Driving in Cars with MP3s," Business 2.0, 16 June 2003, available at - link #43 . I am grateful to Dr. Mohammad Al-Ubaydli -for this example. +link #43 . I am grateful +to Dr. Mohammad Al-Ubaydli for this example. +Needleman, Rafe This is the world of the mafia—filled with "your money or your -life" offers, governed in the end not by courts but by the threats that the -law empowers copyright holders to exercise. It is a system that will - obviously -and necessarily stifle new innovation. It is hard enough to start -a company. It is impossibly hard if that company is constantly - threatened -by litigation. +life" offers, governed in the end not by courts but by the threats +that the law empowers copyright holders to exercise. It is a system +that will obviously and necessarily stifle new innovation. It is hard +enough to start a company. It is impossibly hard if that company is +constantly threatened by litigation. @@ -9686,33 +9478,33 @@ more than it burdens terrestrial radio. This financial burden is not slight. As Harvard law professor -William Fisher estimates, if an Internet radio station distributed - adfree +William Fisher estimates, if an Internet radio station distributed adfree popular music to (on average) ten thousand listeners, twenty-four hours a day, the total artist fees that radio station would owe would be -over $1 million a year. - This example was derived from fees set by the original Copyright - Arbitration -Royalty Panel (CARP) proceedings, and is drawn from an example -offered by Professor William Fisher. Conference Proceedings, iLaw -(Stanford), 3 July 2003, on file with author. Professors Fisher and Zittrain -submitted testimony in the CARP proceeding that was ultimately rejected. -See Jonathan Zittrain, Digital Performance Right in Sound Recordings -and Ephemeral Recordings, Docket No. 2000-9, CARP DTRA 1 and 2, -available at +over $1 million a year. + - A regular radio station broadcasting the same -content would pay no equivalent fee. +A regular radio station broadcasting the same content would pay no +equivalent fee.+ +This example was derived from fees set by the original Copyright +Arbitration Royalty Panel (CARP) proceedings, and is drawn from an +example offered by Professor William Fisher. Conference Proceedings, +iLaw (Stanford), 3 July 2003, on file with author. Professors Fisher +and Zittrain submitted testimony in the CARP proceeding that was +ultimately rejected. See Jonathan Zittrain, Digital Performance Right +in Sound Recordings and Ephemeral Recordings, Docket No. 2000-9, CARP +DTRA 1 and 2, available at link #45 . -For an excellent analysis making a similar point, see Randal C. Picker, -"Copyright as Entry Policy: The Case of Digital Distribution," Antitrust -Bulletin (Summer/Fall 2002): 461: "This was not confusion, these are just -old-fashioned entry barriers. Analog radio stations are protected from - digital -entrants, reducing entry in radio and diversity. Yes, this is done in the -name of getting royalties to copyright holders, but, absent the play of - powerful +For an excellent analysis making a similar point, see Randal +C. Picker, "Copyright as Entry Policy: The Case of Digital +Distribution," Antitrust Bulletin (Summer/Fall 2002): 461: "This was +not confusion, these are just old-fashioned entry barriers. Analog +radio stations are protected from digital entrants, reducing entry in +radio and diversity. Yes, this is done in the name of getting +royalties to copyright holders, but, absent the play of powerful interests, that could have been done in a media-neutral way." +CARP (Copyright Arbitration Royalty Panel) The burden is not financial only. Under the original rules that were @@ -9811,9 +9603,9 @@ Why? What justifies this difference? Was there any study of the economic consequences from Internet radio that would justify these differences? Was the motive to protect artists against piracy? +Alben, Alex -In a rare bit of candor, one RIAA expert admitted what seemed - obvious +In a rare bit of candor, one RIAA expert admitted what seemed obvious to everyone at the time. As Alex Alben, vice president for Public Policy at Real Networks, told me, @@ -9902,11 +9694,11 @@ RIAA's suits against individual users. In September 2003, the RIAA sued 261 individuals—including a twelve-year-old girl living in public housing and a seventy-year-old man who had no idea what file sharing was.- As these scapegoats discovered, it will always cost more to - defend +As these scapegoats discovered, it will always cost more to defend against these suits than it would cost to simply settle. (The twelve year old, for example, like Jesse Jordan, paid her life savings of $2,000 to settle the case.) Our law is an awful system for defending rights. It @@ -9916,75 +9708,68 @@ they oppose. - Alex Pham, "The Labels Strike Back: N.Y. Girl Settles RIAA Case," Los + +Alex Pham, "The Labels Strike Back: N.Y. Girl Settles RIAA Case," Los Angeles Times, 10 September 2003, Business. Wars of prohibition are nothing new in America. This one is just -something more extreme than anything we've seen before. We - experimented -with alcohol prohibition, at a time when the per capita - consumption -of alcohol was 1.5 gallons per capita per year. The war against -drinking initially reduced that consumption to just 30 percent of its -preprohibition levels, but by the end of prohibition, consumption was -up to 70 percent of the preprohibition level. Americans were drinking -just about as much, but now, a vast number were criminals. -- We have - +something more extreme than anything we've seen before. We +experimented with alcohol prohibition, at a time when the per capita +consumption of alcohol was 1.5 gallons per capita per year. The war +against drinking initially reduced that consumption to just 30 percent +of its preprohibition levels, but by the end of prohibition, +consumption was up to 70 percent of the preprohibition +level. Americans were drinking just about as much, but now, a vast +number were criminals. - Jeffrey A. Miron and Jeffrey Zwiebel, "Alcohol Consumption During - Prohibition," -American Economic Review 81, no. 2 (1991): 242. - +We have -launched a war on drugs aimed at reducing the consumption of - regulated +launched a war on drugs aimed at reducing the consumption of regulated narcotics that 7 percent (or 16 million) Americans now use. + +Jeffrey A. Miron and Jeffrey Zwiebel, "Alcohol Consumption During +Prohibition," American Economic Review 81, no. 2 (1991): 242. + - -That is a drop from the high (so to speak) in 1979 of 14 percent of the -population. We regulate automobiles to the point where the vast - majority -of Americans violate the law every day. We run such a complex -tax system that a majority of cash businesses regularly cheat. - National Drug Control Policy: Hearing Before the House Government + +National Drug Control Policy: Hearing Before the House Government Reform Committee, 108th Cong., 1st sess. (5 March 2003) (statement of John P. Walters, director of National Drug Control Policy). - See James Andreoni, Brian Erard, and Jonathon Feinstein, "Tax - Compliance," -Journal of Economic Literature 36 (1998): 818 (survey of compliance -literature). +That is a drop from the high (so to speak) in 1979 of 14 percent of +the population. We regulate automobiles to the point where the vast +majority of Americans violate the law every day. We run such a complex +tax system that a majority of cash businesses regularly +cheat. - We -pride ourselves on our "free society," but an endless array of ordinary -behavior is regulated within our society. And as a result, a huge - proportion -of Americans regularly violate at least some law. +We pride ourselves on our "free society," but an endless array of +ordinary behavior is regulated within our society. And as a result, a +huge proportion of Americans regularly violate at least some law. + +See James Andreoni, Brian Erard, and Jonathon Feinstein, "Tax +Compliance," Journal of Economic Literature 36 (1998): 818 (survey of +compliance literature). This state of affairs is not without consequence. It is a particularly -salient issue for teachers like me, whose job it is to teach law students -about the importance of "ethics." As my colleague Charlie Nesson told -a class at Stanford, each year law schools admit thousands of students -who have illegally downloaded music, illegally consumed alcohol and -sometimes drugs, illegally worked without paying taxes, illegally driven -cars. These are kids for whom behaving illegally is increasingly the -norm. And then we, as law professors, are supposed to teach them how -to behave ethically—how to say no to bribes, or keep client funds - separate, -or honor a demand to disclose a document that will mean that -your case is over. Generations of Americans—more significantly in -some parts of America than in others, but still, everywhere in America -today—can't live their lives both normally and legally, since "normally" -entails a certain degree of illegality. +salient issue for teachers like me, whose job it is to teach law +students about the importance of "ethics." As my colleague Charlie +Nesson told a class at Stanford, each year law schools admit thousands +of students who have illegally downloaded music, illegally consumed +alcohol and sometimes drugs, illegally worked without paying taxes, +illegally driven cars. These are kids for whom behaving illegally is +increasingly the norm. And then we, as law professors, are supposed to +teach them how to behave ethically—how to say no to bribes, or +keep client funds separate, or honor a demand to disclose a document +that will mean that your case is over. Generations of +Americans—more significantly in some parts of America than in +others, but still, everywhere in America today—can't live their +lives both normally and legally, since "normally" entails a certain +degree of illegality. The response to this general illegality is either to enforce the law -more severely or to change the law. We, as a society, have to learn how -to make that choice more rationally. Whether a law makes sense - depends, -in part, at least, upon whether the costs of the law, both - intended -and collateral, outweigh the benefits. If the costs, intended and -collateral, do outweigh the benefits, then the law ought to be changed. -Alternatively, if the costs of the existing system are much greater than -the costs of an alternative, then we have a good reason to consider the -alternative. +more severely or to change the law. We, as a society, have to learn +how to make that choice more rationally. Whether a law makes sense +depends, in part, at least, upon whether the costs of the law, both +intended and collateral, outweigh the benefits. If the costs, intended +and collateral, do outweigh the benefits, then the law ought to be +changed. Alternatively, if the costs of the existing system are much +greater than the costs of an alternative, then we have a good reason +to consider the alternative. @@ -9996,45 +9781,40 @@ that wouldn't make any sense, since murder is wrong every day of the week. A society is right to ban murder always and everywhere. -My point is instead one that democracies understood for - generations, -but that we recently have learned to forget. The rule of law -depends upon people obeying the law. The more often, and more - repeatedly, -we as citizens experience violating the law, the less we respect -the law. Obviously, in most cases, the important issue is the law, not -respect for the law. I don't care whether the rapist respects the law or -not; I want to catch and incarcerate the rapist. But I do care whether -my students respect the law. And I do care if the rules of law sow - increasing -disrespect because of the extreme of regulation they impose. -Twenty million Americans have come of age since the Internet - introduced -this different idea of "sharing." We need to be able to call these -twenty million Americans "citizens," not "felons." - --When at least forty-three million citizens download content from -the Internet, and when they use tools to combine that content in ways -unauthorized by copyright holders, the first question we should be - asking -is not how best to involve the FBI. The first question should be -whether this particular prohibition is really necessary in order to achieve -the proper ends that copyright law serves. Is there another way to -assure that artists get paid without transforming forty-three million -Americans into felons? Does it make sense if there are other ways to -assure that artists get paid without transforming America into a nation -of felons? +My point is instead one that democracies understood for generations, +but that we recently have learned to forget. The rule of law depends +upon people obeying the law. The more often, and more repeatedly, we +as citizens experience violating the law, the less we respect the +law. Obviously, in most cases, the important issue is the law, not +respect for the law. I don't care whether the rapist respects the law +or not; I want to catch and incarcerate the rapist. But I do care +whether my students respect the law. And I do care if the rules of law +sow increasing disrespect because of the extreme of regulation they +impose. Twenty million Americans have come of age since the Internet +introduced this different idea of "sharing." We need to be able to +call these twenty million Americans "citizens," not "felons." + ++When at least forty-three million citizens download content from the +Internet, and when they use tools to combine that content in ways +unauthorized by copyright holders, the first question we should be +asking is not how best to involve the FBI. The first question should +be whether this particular prohibition is really necessary in order to +achieve the proper ends that copyright law serves. Is there another +way to assure that artists get paid without transforming forty-three +million Americans into felons? Does it make sense if there are other +ways to assure that artists get paid without transforming America into +a nation of felons? This abstract point can be made more clear with a particular example. -We all own CDs. Many of us still own phonograph records. These -pieces of plastic encode music that in a certain sense we have bought. -The law protects our right to buy and sell that plastic: It is not a - copyright -infringement for me to sell all my classical records at a used +We all own CDs. Many of us still own phonograph records. These pieces +of plastic encode music that in a certain sense we have bought. The +law protects our right to buy and sell that plastic: It is not a +copyright infringement for me to sell all my classical records at a +used record store and buy jazz records to replace them. That "use" of the @@ -10106,39 +9886,36 @@ not be between property and piracy; the choice would be between different property systems and the freedoms each allowed. -I believe there is a way to assure that artists are paid without - turning -forty-three million Americans into felons. But the salient feature -of this alternative is that it would lead to a very different market for -producing and distributing creativity. The dominant few, who today -control the vast majority of the distribution of content in the world, -would no longer exercise this extreme of control. Rather, they would go -the way of the horse-drawn buggy. - --Except that this generation's buggy manufacturers have already -saddled Congress, and are riding the law to protect themselves against -this new form of competition. For them the choice is between - fortythree +I believe there is a way to assure that artists are paid without +turning forty-three million Americans into felons. But the salient +feature of this alternative is that it would lead to a very different +market for producing and distributing creativity. The dominant few, +who today control the vast majority of the distribution of content in +the world, would no longer exercise this extreme of control. Rather, +they would go the way of the horse-drawn buggy. + ++Except that this generation's buggy manufacturers have already saddled +Congress, and are riding the law to protect themselves against this +new form of competition. For them the choice is between fortythree million Americans as criminals and their own survival. -It is understandable why they choose as they do. It is not - understandable -why we as a democracy continue to choose as we do. Jack +It is understandable why they choose as they do. It is not +understandable why we as a democracy continue to choose as we do. Jack -Valenti is charming; but not so charming as to justify giving up a - tradition -as deep and important as our tradition of free culture. -There's one more aspect to this corruption that is particularly - important -to civil liberties, and follows directly from any war of - prohibition. -As Electronic Frontier Foundation attorney Fred von Lohmann -describes, this is the "collateral damage" that "arises whenever you turn -a very large percentage of the population into criminals." This is the -collateral damage to civil liberties generally. + +Valenti is charming; but not so charming as to justify giving up a +tradition as deep and important as our tradition of free culture. +There's one more aspect to this corruption that is particularly +important to civil liberties, and follows directly from any war of +prohibition. As Electronic Frontier Foundation attorney Fred von +Lohmann describes, this is the "collateral damage" that "arises +whenever you turn a very large percentage of the population into +criminals." This is the collateral damage to civil liberties +generally. + Electronic Frontier Foundation "If you can treat someone as a putative lawbreaker," von Lohmann @@ -10146,18 +9923,15 @@ explains, -then all of a sudden a lot of basic civil liberty protections - evaporate -to one degree or another. . . . If you're a copyright infringer, -how can you hope to have any privacy rights? If you're a copyright -infringer, how can you hope to be secure against seizures of your -computer? How can you hope to continue to receive Internet -access? . . . Our sensibilities change as soon as we think, "Oh, -well, but that person's a criminal, a lawbreaker." Well, what this -campaign against file sharing has done is turn a remarkable - percentage -of the American Internet-using population into - "lawbreakers." +then all of a sudden a lot of basic civil liberty protections +evaporate to one degree or another. . . . If you're a copyright +infringer, how can you hope to have any privacy rights? If you're a +copyright infringer, how can you hope to be secure against seizures of +your computer? How can you hope to continue to receive Internet +access? . . . Our sensibilities change as soon as we think, "Oh, well, +but that person's a criminal, a lawbreaker." Well, what this campaign +against file sharing has done is turn a remarkable percentage of the +American Internet-using population into "lawbreakers." @@ -10166,37 +9940,34 @@ into criminals is that it becomes trivial, as a matter of due process, to effectively erase much of the privacy most would presume. -Users of the Internet began to see this generally in 2003 as the -RIAA launched its campaign to force Internet service providers to turn -over the names of customers who the RIAA believed were violating -copyright law. Verizon fought that demand and lost. With a simple - request -to a judge, and without any notice to the customer at all, the -identity of an Internet user is revealed. +Users of the Internet began to see this generally in 2003 as the RIAA +launched its campaign to force Internet service providers to turn over +the names of customers who the RIAA believed were violating copyright +law. Verizon fought that demand and lost. With a simple request to a +judge, and without any notice to the customer at all, the identity of +an Internet user is revealed. - -The RIAA then expanded this campaign, by announcing a general -strategy to sue individual users of the Internet who are alleged to have +The RIAA then expanded this campaign, by announcing a general strategy +to sue individual users of the Internet who are alleged to have downloaded copyrighted music from file-sharing systems. But as we've -seen, the potential damages from these suits are astronomical: If a - family's -computer is used to download a single CD's worth of music, the -family could be liable for $2 million in damages. That didn't stop the -RIAA from suing a number of these families, just as they had sued +seen, the potential damages from these suits are astronomical: If a +family's computer is used to download a single CD's worth of music, +the family could be liable for $2 million in damages. That didn't stop +the RIAA from suing a number of these families, just as they had sued Jesse Jordan. @@ -10204,58 +9975,54 @@ Criminal?" Toronto Star, 18 September 2003, P7. Even this understates the espionage that is being waged by the RIAA. A report from CNN late last summer described a strategy the RIAA had adopted to track Napster users.- See Frank Ahrens, "RIAA's Lawsuits Meet Surprised Targets; Single -Mother in Calif., 12-Year-Old Girl in N.Y. Among Defendants," - Washington -Post, 10 September 2003, E1; Chris Cobbs, "Worried Parents Pull -Plug on File `Stealing'; With the Music Industry Cracking Down on File -Swapping, Parents are Yanking Software from Home PCs to Avoid Being -Sued," Orlando Sentinel Tribune, 30 August 2003, C1; Jefferson Graham, -"Recording Industry Sues Parents," USA Today, 15 September 2003, 4D; -John Schwartz, "She Says She's No Music Pirate. No Snoop Fan, Either," -New York Times, 25 September 2003, C1; Margo Varadi, "Is Brianna a -Criminal?" Toronto Star, 18 September 2003, P7. + +See Frank Ahrens, "RIAA's Lawsuits Meet Surprised Targets; Single +Mother in Calif., 12-Year-Old Girl in N.Y. Among Defendants," +Washington Post, 10 September 2003, E1; Chris Cobbs, "Worried Parents +Pull Plug on File `Stealing'; With the Music Industry Cracking Down on +File Swapping, Parents are Yanking Software from Home PCs to Avoid +Being Sued," Orlando Sentinel Tribune, 30 August 2003, C1; Jefferson +Graham, "Recording Industry Sues Parents," USA Today, 15 September +2003, 4D; John Schwartz, "She Says She's No Music Pirate. No Snoop +Fan, Either," New York Times, 25 September 2003, C1; Margo Varadi, "Is +Brianna a Criminal?" Toronto Star, 18 September 2003, P7. - Using a sophisticated -hashing algorithm, the RIAA took what is in effect a fingerprint of -every song in the Napster catalog. Any copy of one of those MP3s will -have the same "fingerprint." - - See "Revealed: How RIAA Tracks Downloaders: Music Industry - Discloses -Some Methods Used," CNN.com, available at + +See "Revealed: How RIAA Tracks Downloaders: Music Industry Discloses +Some Methods Used," CNN.com, available at link #47 .-So imagine the following not-implausible scenario: Imagine a -friend gives a CD to your daughter—a collection of songs just like the -cassettes you used to make as a kid. You don't know, and neither does -your daughter, where these songs came from. But she copies these -songs onto her computer. She then takes her computer to college and -connects it to a college network, and if the college network is - "cooperating" -with the RIAA's espionage, and she hasn't properly protected -her content from the network (do you know how to do that yourself ?), -then the RIAA will be able to identify your daughter as a "criminal." -And under the rules that universities are beginning to deploy, +- your -daughter can lose the right to use the university's computer network. -She can, in some cases, be expelled. +Using a sophisticated hashing algorithm, the RIAA took what is in +effect a fingerprint of every song in the Napster catalog. Any copy of +one of those MP3s will have the same "fingerprint." + - See Jeff Adler, "Cambridge: On Campus, Pirates Are Not Penitent," Boston -Globe, 18 May 2003, City Weekly, 1; Frank Ahrens, "Four Students Sued -over Music Sites; Industry Group Targets File Sharing at Colleges," - Washington -Post, 4 April 2003, E1; Elizabeth Armstrong, "Students `Rip, Mix, -Burn' at Their Own Risk," Christian Science Monitor, 2 September 2003, -20; Robert Becker and Angela Rozas, "Music Pirate Hunt Turns to - Loyola; -Two Students Names Are Handed Over; Lawsuit Possible," Chicago -Tribune, 16 July 2003, 1C; Beth Cox, "RIAA Trains Antipiracy Guns on -Universities," Internet News, 30 January 2003, available at - link #48 ; Benny -Evangelista, "Download Warning 101: Freshman Orientation This Fall to -Include Record Industry Warnings Against File Sharing," San Francisco -Chronicle, 11 August 2003, E11; "Raid, Letters Are Weapons at - Universities," -USA Today, 26 September 2000, 3D. -+So imagine the following not-implausible scenario: Imagine a +friend gives a CD to your daughter—a collection of songs just +like the cassettes you used to make as a kid. You don't know, and +neither does your daughter, where these songs came from. But she +copies these songs onto her computer. She then takes her computer to +college and connects it to a college network, and if the college +network is "cooperating" with the RIAA's espionage, and she hasn't +properly protected her content from the network (do you know how to do +that yourself ?), then the RIAA will be able to identify your daughter +as a "criminal." And under the rules that universities are beginning +to deploy, +your daughter can lose the right to use the university's computer +network. She can, in some cases, be expelled. + +See Jeff Adler, "Cambridge: On Campus, Pirates Are Not Penitent," +Boston Globe, 18 May 2003, City Weekly, 1; Frank Ahrens, "Four +Students Sued over Music Sites; Industry Group Targets File Sharing at +Colleges," Washington Post, 4 April 2003, E1; Elizabeth Armstrong, +"Students `Rip, Mix, Burn' at Their Own Risk," Christian Science +Monitor, 2 September 2003, 20; Robert Becker and Angela Rozas, "Music +Pirate Hunt Turns to Loyola; Two Students Names Are Handed Over; +Lawsuit Possible," Chicago Tribune, 16 July 2003, 1C; Beth Cox, "RIAA +Trains Antipiracy Guns on Universities," Internet News, 30 January +2003, available at link +#48 ; Benny Evangelista, "Download Warning 101: Freshman +Orientation This Fall to Include Record Industry Warnings Against File +Sharing," San Francisco Chronicle, 11 August 2003, E11; "Raid, Letters +Are Weapons at Universities," USA Today, 26 September 2000, 3D. +Now, of course, she'll have the right to defend herself. You can hire -a lawyer for her (at $300 per hour, if you're lucky), and she can plead -that she didn't know anything about the source of the songs or that -they came from Napster. And it may well be that the university believes -her. But the university might not believe her. It might treat this - "contraband" -as presumptive of guilt. And as any number of college students +a lawyer for her (at $300 per hour, if you're lucky), and she can +plead that she didn't know anything about the source of the songs or +that they came from Napster. And it may well be that the university +believes her. But the university might not believe her. It might treat +this "contraband" as presumptive of guilt. And as any number of +college students have already learned, our presumptions about innocence disappear in @@ -10267,33 +10034,29 @@ Says von Lohmann, So when we're talking about numbers like forty to sixty million Americans that are essentially copyright infringers, you create a situation where the civil liberties of those people are very much in -peril in a general matter. [I don't] think [there is any] analog -where you could randomly choose any person off the street and be -confident that they were committing an unlawful act that could -put them on the hook for potential felony liability or hundreds of -millions of dollars of civil liability. Certainly we all speed, but -speeding isn't the kind of an act for which we routinely forfeit -civil liberties. Some people use drugs, and I think that's the - closest -analog, [but] many have noted that the war against drugs has -eroded all of our civil liberties because it's treated so many - Americans -as criminals. Well, I think it's fair to say that file sharing -is an order of magnitude larger number of Americans than drug -use. . . . If forty to sixty million Americans have become - lawbreakers, -then we're really on a slippery slope to lose a lot of civil -liberties for all forty to sixty million of them. +peril in a general matter. [I don't] think [there is any] analog where +you could randomly choose any person off the street and be confident +that they were committing an unlawful act that could put them on the +hook for potential felony liability or hundreds of millions of dollars +of civil liability. Certainly we all speed, but speeding isn't the +kind of an act for which we routinely forfeit civil liberties. Some +people use drugs, and I think that's the closest analog, [but] many +have noted that the war against drugs has eroded all of our civil +liberties because it's treated so many Americans as criminals. Well, I +think it's fair to say that file sharing is an order of magnitude +larger number of Americans than drug use. . . . If forty to sixty +million Americans have become lawbreakers, then we're really on a +slippery slope to lose a lot of civil liberties for all forty to sixty +million of them.
In effect, the Supreme Court's decision makes it likely that we are seeing the beginning of the end of public domain and the birth of -copyright perpetuity. The public domain has been a grand - experiment, -one that should not be allowed to die. The ability to draw -freely on the entire creative output of humanity is one of the - reasons -we live in a time of such fruitful creative ferment. +copyright perpetuity. The public domain has been a grand experiment, +one that should not be allowed to die. The ability to draw freely on +the entire creative output of humanity is one of the reasons we live +in a time of such fruitful creative ferment.
@@ -14168,86 +13760,74 @@ Scope: Likewise should the scope of derivative rights be narrowed. Again, there are some cases in which derivative rights are important. Those should be specified. But the law should draw clear lines around regulated and unregulated uses of copyrighted material. When all -"reuse" of creative material was within the control of businesses, - perhaps -it made sense to require lawyers to negotiate the lines. It no longer -makes sense for lawyers to negotiate the lines. Think about all the - creative -possibilities that digital technologies enable; now imagine - pouring -molasses into the machines. That's what this general requirement -of permission does to the creative process. Smothers it. +"reuse" of creative material was within the control of businesses, +perhaps it made sense to require lawyers to negotiate the lines. It no +longer makes sense for lawyers to negotiate the lines. Think about all +the creative possibilities that digital technologies enable; now +imagine pouring molasses into the machines. That's what this general +requirement of permission does to the creative process. Smothers it. -This was the point that Alben made when describing the making of -the Clint Eastwood CD. While it makes sense to require negotiation -for foreseeable derivative rights—turning a book into a movie, or a -poem into a musical score—it doesn't make sense to require - negotiation -for the unforeseeable. Here, a statutory right would make much -more sense. +This was the point that Alben made when describing the making of the +Clint Eastwood CD. While it makes sense to require negotiation for +foreseeable derivative rights—turning a book into a movie, or a +poem into a musical score—it doesn't make sense to require +negotiation for the unforeseeable. Here, a statutory right would make +much more sense. -In each of these cases, the law should mark the uses that are - protected, -and the presumption should be that other uses are not - protected. -This is the reverse of the recommendation of my colleague Paul -Goldstein. - Paul Goldstein, Copyright's Highway: From Gutenberg to the Celestial - Jukebox -(Stanford: Stanford University Press, 2003), 187–216. +In each of these cases, the law should mark the uses that are +protected, and the presumption should be that other uses are not +protected. This is the reverse of the recommendation of my colleague +Paul Goldstein. + - His view is that the law should be written so that expanded -protections follow expanded uses. +His view is that the law should be written so that +expanded protections follow expanded uses.+ +Paul Goldstein, Copyright's Highway: From Gutenberg to the Celestial +Jukebox (Stanford: Stanford University Press, 2003), 187–216. + Goldstein, Paul -Goldstein's analysis would make perfect sense if the cost of the - legal +Goldstein's analysis would make perfect sense if the cost of the legal system were small. But as we are currently seeing in the context of -the Internet, the uncertainty about the scope of protection, and the - incentives -to protect existing architectures of revenue, combined with a -strong copyright, weaken the process of innovation. +the Internet, the uncertainty about the scope of protection, and the +incentives to protect existing architectures of revenue, combined with +a strong copyright, weaken the process of innovation. The law could remedy this problem either by removing protection beyond the part explicitly drawn or by granting reuse rights upon - certain -statutory conditions. Either way, the effect would be to free a great -deal of culture to others to cultivate. And under a statutory rights -regime, that reuse would earn artists more income. +certain statutory conditions. Either way, the effect would be to free +a great deal of culture to others to cultivate. And under a statutory +rights regime, that reuse would earn artists more income. @@ -14663,26 +14228,23 @@ ideals at the end that I would love to live. 4. Liberate the Music—Again -The battle that got this whole war going was about music, so it wouldn't -be fair to end this book without addressing the issue that is, to most -people, most pressing—music. There is no other policy issue that - better -teaches the lessons of this book than the battles around the sharing -of music. +The battle that got this whole war going was about music, so it +wouldn't be fair to end this book without addressing the issue that +is, to most people, most pressing—music. There is no other +policy issue that better teaches the lessons of this book than the +battles around the sharing of music. -The appeal of file-sharing music was the crack cocaine of the - Internet's -growth. It drove demand for access to the Internet more - powerfully -than any other single application. It was the Internet's killer -app—possibly in two senses of that word. It no doubt was the - application -that drove demand for bandwidth. It may well be the application -that drives demand for regulations that in the end kill innovation on -the network. - --The aim of copyright, with respect to content in general and music -in particular, is to create the incentives for music to be composed, - performed, -and, most importantly, spread. The law does this by giving +The appeal of file-sharing music was the crack cocaine of the +Internet's growth. It drove demand for access to the Internet more +powerfully than any other single application. It was the Internet's +killer app—possibly in two senses of that word. It no doubt was +the application that drove demand for bandwidth. It may well be the +application that drives demand for regulations that in the end kill +innovation on the network. + ++The aim of copyright, with respect to content in general and music in +particular, is to create the incentives for music to be composed, +performed, and, most importantly, spread. The law does this by giving an exclusive right to a composer to control public performances of his work, and to a performing artist to control copies of her performance. @@ -14271,17 +13851,15 @@ on the way to purchasing CDs.-There are many who are using file-sharing networks to get - access -to content that is no longer sold but is still under copyright -or that would have been too cumbersome to buy off the Net. +There are many who are using file-sharing networks to get access to +content that is no longer sold but is still under copyright or that +would have been too cumbersome to buy off the Net. -There are many who are using file-sharing networks to get - access -to content that is not copyrighted or to get access that the -copyright owner plainly endorses. +There are many who are using file-sharing networks to get access to +content that is not copyrighted or to get access that the copyright +owner plainly endorses. @@ -14293,11 +13871,11 @@ effect of sharing is actually not very harmful, the need for regulation is significantly weakened. -As I said in chapter 5, the actual harm caused by sharing is - controversial. -For the purposes of this chapter, however, I assume the harm is -real. I assume, in other words, that type A sharing is significantly -greater than type B, and is the dominant use of sharing networks. +As I said in chapter 5, the actual harm caused by sharing is +controversial. For the purposes of this chapter, however, I assume +the harm is real. I assume, in other words, that type A sharing is +significantly greater than type B, and is the dominant use of sharing +networks. Nonetheless, there is a crucial fact about the current technological @@ -14305,17 +13883,16 @@ context that we must keep in mind if we are to understand how the law should respond. -Today, file sharing is addictive. In ten years, it won't be. It is addictive -today because it is the easiest way to gain access to a broad range of - content. -It won't be the easiest way to get access to a broad range of content -in ten years. Today, access to the Internet is cumbersome and slow—we -in the United States are lucky to have broadband service at 1.5 MBs, and -very rarely do we get service at that speed both up and down. Although -wireless access is growing, most of us still get access across wires. Most -only gain access through a machine with a keyboard. The idea of the - always -on, always connected Internet is mainly just an idea. +Today, file sharing is addictive. In ten years, it won't be. It is +addictive today because it is the easiest way to gain access to a +broad range of content. It won't be the easiest way to get access to +a broad range of content in ten years. Today, access to the Internet +is cumbersome and slow—we in the United States are lucky to have +broadband service at 1.5 MBs, and very rarely do we get service at +that speed both up and down. Although wireless access is growing, most +of us still get access across wires. Most only gain access through a +machine with a keyboard. The idea of the always on, always connected +Internet is mainly just an idea. But it will become a reality, and that means the way we get access to @@ -14323,38 +13900,35 @@ the Internet today is a technology in transition. Policy makers should not make policy on the basis of technology in transition. They should make policy on the basis of where the technology is going. The - question -should not be, how should the law regulate sharing in this world? -The question should be, what law will we require when the network -becomes the network it is clearly becoming? That network is one in -which every machine with electricity is essentially on the Net; where -everywhere you are—except maybe the desert or the Rockies—you can -instantaneously be connected to the Internet. Imagine the Internet as -ubiquitous as the best cell-phone service, where with the flip of a - device, -you are connected. - --In that world, it will be extremely easy to connect to services that -give you access to content on the fly—such as Internet radio, content -that is streamed to the user when the user demands. Here, then, is the -critical point: When it is extremely easy to connect to services that give -access to content, it will be easier to connect to services that give you -access to content than it will be to download and store content on the -many devices you will have for playing content. It will be easier, in other -words, to subscribe than it will be to be a database manager, as - everyone -in the download-sharing world of Napster-like technologies - essentially -is. Content services will compete with content sharing, even if -the services charge money for the content they give access to. Already -cell-phone services in Japan offer music (for a fee) streamed over cell -phones (enhanced with plugs for headphones). The Japanese are - paying -for this content even though "free" content is available in the form -of MP3s across the Web. - See, for example, "Music Media Watch," The J@pan Inc. Newsletter, -3 April 2002, available at +question should not be, how should the law regulate sharing in this +world? The question should be, what law will we require when the +network becomes the network it is clearly becoming? That network is +one in which every machine with electricity is essentially on the Net; +where everywhere you are—except maybe the desert or the +Rockies—you can instantaneously be connected to the +Internet. Imagine the Internet as ubiquitous as the best cell-phone +service, where with the flip of a device, you are connected. + ++In that world, it will be extremely easy to connect to services +that give you access to content on the fly—such as Internet +radio, content that is streamed to the user when the user +demands. Here, then, is the critical point: When it is extremely easy +to connect to services that give access to content, it will be easier +to connect to services that give you access to content than it will be +to download and store content on the many devices you will have for +playing content. It will be easier, in other words, to subscribe than +it will be to be a database manager, as everyone in the +download-sharing world of Napster-like technologies essentially +is. Content services will compete with content sharing, even if the +services charge money for the content they give access to. Already +cell-phone services in Japan offer music (for a fee) streamed over +cell phones (enhanced with plugs for headphones). The Japanese are +paying for this content even though "free" content is available in the +form of MP3s across the Web. @@ -14406,14 +13980,13 @@ from the author's perspective, this "sharing" of his content without his being compensated is less than ideal. + +See, for example, "Music Media Watch," The J@pan Inc. Newsletter, 3 +April 2002, available at link #76 .-The model of used book stores suggests that the law could simply -deem out-of-print music fair game. If the publisher does not make -copies of the music available for sale, then commercial and - noncommercial +The model of used book stores suggests that the law could simply deem +out-of-print music fair game. If the publisher does not make copies of +the music available for sale, then commercial and noncommercial providers would be free, under this rule, to "share" that content, -even though the sharing involved making a copy. The copy here would -be incidental to the trade; in a context where commercial publishing -has ended, trading music should be as free as trading books. +even though the sharing involved making a copy. The copy here would be +incidental to the trade; in a context where commercial publishing has +ended, trading music should be as free as trading books. @@ -14470,7 +14043,8 @@ way to compensate those who are harmed. The idea would be a modification of a proposal that has been -floated by Harvard law professor William Fisher. +floated by Harvard law professor William Fisher. + - Fisher suggests a -very clever way around the current impasse of the Internet. Under his -plan, all content capable of digital transmission would (1) be marked -with a digital watermark (don't worry about how easy it is to evade -these marks; as you'll see, there's no incentive to evade them). Once the -content is marked, then entrepreneurs would develop (2) systems to -monitor how many items of each content were distributed. On the - basis -of those numbers, then (3) artists would be compensated. The - compensation -would be paid for by (4) an appropriate tax. +Fisher suggests a very clever way around the current impasse of the +Internet. Under his plan, all content capable of digital transmission +would (1) be marked with a digital watermark (don't worry about how +easy it is to evade these marks; as you'll see, there's no incentive +to evade them). Once the content is marked, then entrepreneurs would +develop (2) systems to monitor how many items of each content were +distributed. On the basis of those numbers, then (3) artists would be +compensated. The compensation would be paid for by (4) an appropriate +tax.William Fisher, Digital Music: Problems and Possibilities (last revised: 10 October 2000), available at link #77 ; William Fisher, Promises to Keep: @@ -14494,60 +14068,55 @@ Use Fee (IPUF), 3 March 2002, available atlink #82 ; Steven M. Cherry, "Getting Copyright Right," IEEE Spectrum Online, 1 July 2002, available atlink #83 ; Declan - McCullagh, -"Verizon's Copyright Campaign," CNET News.com, 27 August +McCullagh, "Verizon's Copyright Campaign," CNET News.com, 27 August 2002, available atlink #84 . Fisher's proposal is very similar to Richard Stallman's proposal for DAT. Unlike Fisher's, Stallman's proposal would not pay artists directly proportionally, though more popular artists would get more than the less popular. As is typical with Stallman, his proposal predates the current - debate -by about a decade. See +debate by about a decade. Seelink #85 . ++ Netanel, Neil Weinstock Fisher, William Fisher's proposal is careful and comprehensive. It raises a million questions, most of which he answers well in his upcoming book, -Promises to Keep. The modification that I would make is relatively - simple: -Fisher imagines his proposal replacing the existing copyright - system. -I imagine it complementing the existing system. The aim of the -proposal would be to facilitate compensation to the extent that harm -could be shown. This compensation would be temporary, aimed at - facilitating -a transition between regimes. And it would require renewal -after a period of years. If it continues to make sense to facilitate free - exchange -of content, supported through a taxation system, then it can be -continued. If this form of protection is no longer necessary, then the -system could lapse into the old system of controlling access. - --Fisher would balk at the idea of allowing the system to lapse. His -aim is not just to ensure that artists are paid, but also to ensure that the -system supports the widest range of "semiotic democracy" possible. But -the aims of semiotic democracy would be satisfied if the other changes -I described were accomplished—in particular, the limits on derivative +Promises to Keep. The modification that I would make is relatively +simple: Fisher imagines his proposal replacing the existing copyright +system. I imagine it complementing the existing system. The aim of +the proposal would be to facilitate compensation to the extent that +harm could be shown. This compensation would be temporary, aimed at +facilitating a transition between regimes. And it would require +renewal after a period of years. If it continues to make sense to +facilitate free exchange of content, supported through a taxation +system, then it can be continued. If this form of protection is no +longer necessary, then the system could lapse into the old system of +controlling access. + ++Fisher would balk at the idea of allowing the system to lapse. His aim +is not just to ensure that artists are paid, but also to ensure that +the system supports the widest range of "semiotic democracy" +possible. But the aims of semiotic democracy would be satisfied if the +other changes I described were accomplished—in particular, the +limits on derivative uses. A system that simply charges for access would not greatly burden -semiotic democracy if there were few limitations on what one was - allowed -to do with the content itself. +semiotic democracy if there were few limitations on what one was +allowed to do with the content itself. No doubt it would be difficult to calculate the proper measure of @@ -14619,37 +14188,33 @@ sharing, to the extent actual harm is demonstrated. -But what if "piracy" doesn't disappear? What if there is a - competitive +But what if "piracy" doesn't disappear? What if there is a competitive market providing content at a low cost, but a significant number of consumers continue to "take" content for nothing? Should the law do something then? Yes, it should. But, again, what it should do depends upon how the -facts develop. These changes may not eliminate type A sharing. But -the real issue is not whether it eliminates sharing in the abstract. -The real issue is its effect on the market. Is it better (a) to have a - technology -that is 95 percent secure and produces a market of size x, or -(b) to have a technology that is 50 percent secure but produces a - market -of five times x? Less secure might produce more unauthorized -sharing, but it is likely to also produce a much bigger market in - authorized -sharing. The most important thing is to assure artists' - compensation -without breaking the Internet. Once that's assured, then it -may well be appropriate to find ways to track down the petty pirates. +facts develop. These changes may not eliminate type A sharing. But the +real issue is not whether it eliminates sharing in the abstract. The +real issue is its effect on the market. Is it better (a) to have a +technology that is 95 percent secure and produces a market of size x, +or (b) to have a technology that is 50 percent secure but produces a +market of five times x? Less secure might produce more unauthorized +sharing, but it is likely to also produce a much bigger market in +authorized sharing. The most important thing is to assure artists' +compensation without breaking the Internet. Once that's assured, then +it may well be appropriate to find ways to track down the petty +pirates. But we're a long way away from whittling the problem down to this -subset of type A sharers. And our focus until we're there should not be -on finding ways to break the Internet. Our focus until we're there +subset of type A sharers. And our focus until we're there should not +be on finding ways to break the Internet. Our focus until we're there -should be on how to make sure the artists are paid, while protecting the -space for innovation and creativity that the Internet is. +should be on how to make sure the artists are paid, while protecting +the space for innovation and creativity that the Internet is. Yet much of this book has been a criticism of lawyers, or the role -lawyers have played in this debate. The law speaks to ideals, but it is -my view that our profession has become too attuned to the client. And -in a world where the rich clients have one strong view, the - unwillingness -of the profession to question or counter that one strong view queers -the law. - --The evidence of this bending is compelling. I'm attacked as a - "radical" -by many within the profession, yet the positions that I am - advocating -are precisely the positions of some of the most moderate and -significant figures in the history of this branch of the law. Many, for - example, -thought crazy the challenge that we brought to the Copyright -Term Extension Act. Yet just thirty years ago, the dominant scholar -and practitioner in the field of copyright, Melville Nimmer, thought it -obvious. - Lawrence Lessig, "Copyright's First Amendment" (Melville B. Nimmer +lawyers have played in this debate. The law speaks to ideals, but it +is my view that our profession has become too attuned to the +client. And in a world where the rich clients have one strong view, +the unwillingness of the profession to question or counter that one +strong view queers the law. + ++The evidence of this bending is compelling. I'm attacked as a +"radical" by many within the profession, yet the positions that I am +advocating are precisely the positions of some of the most moderate +and significant figures in the history of this branch of the +law. Many, for example, thought crazy the challenge that we brought to +the Copyright Term Extension Act. Yet just thirty years ago, the +dominant scholar and practitioner in the field of copyright, Melville +Nimmer, thought it obvious. @@ -14693,53 +14255,50 @@ debate is not just about a professional bias. It is more importantly about our failure to actually reckon the costs of the law. + +Lawrence Lessig, "Copyright's First Amendment" (Melville B. Nimmer Memorial Lecture), UCLA Law Review 48 (2001): 1057, 1069–70. -Economists are supposed to be good at reckoning costs and - benefits. -But more often than not, economists, with no clue about how the -legal system actually functions, simply assume that the transaction -costs of the legal system are slight. - A good example is the work of Professor Stan Liebowitz. Liebowitz is to -be commended for his careful review of data about infringement, leading -him to question his own publicly stated position—twice. He initially - predicted -that downloading would substantially harm the industry. He then -revised his view in light of the data, and he has since revised his view again. -Compare Stan J. Liebowitz, Rethinking the Network Economy: The True -Forces That Drive the Digital Marketplace (New York: Amacom, 2002), -(reviewing his original view but expressing skepticism) with Stan J. -Liebowitz, "Will MP3s Annihilate the Record Industry?" working paper, -June 2003, available at +Economists are supposed to be good at reckoning costs and benefits. +But more often than not, economists, with no clue about how the legal +system actually functions, simply assume that the transaction costs of +the legal system are slight. - They see a system that has been -around for hundreds of years, and they assume it works the way their -elementary school civics class taught them it works. +They see a system that has been around for hundreds of years, and they +assume it works the way their elementary school civics class taught +them it works. + +A good example is the work of Professor Stan Liebowitz. Liebowitz is +to be commended for his careful review of data about infringement, +leading him to question his own publicly stated +position—twice. He initially predicted that downloading would +substantially harm the industry. He then revised his view in light of +the data, and he has since revised his view again. Compare Stan +J. Liebowitz, Rethinking the Network Economy: The True Forces That +Drive the Digital Marketplace (New York: Amacom, 2002), (reviewing his +original view but expressing skepticism) with Stan J. Liebowitz, +"Will MP3s Annihilate the Record Industry?" working paper, June 2003, +available at link #86 . -Liebowitz's careful analysis is extremely valuable in estimating the - effect -of file-sharing technology. In my view, however, he underestimates the -costs of the legal system. See, for example, Rethinking, 174–76. +Liebowitz's careful analysis is extremely valuable in estimating the +effect of file-sharing technology. In my view, however, he +underestimates the costs of the legal system. See, for example, +Rethinking, 174–76.-But the legal system doesn't work. Or more accurately, it doesn't -work for anyone except those with the most resources. Not because the -system is corrupt. I don't think our legal system (at the federal level, at -least) is at all corrupt. I mean simply because the costs of our legal - system -are so astonishingly high that justice can practically never be done. +But the legal system doesn't work. Or more accurately, it doesn't work +for anyone except those with the most resources. Not because the +system is corrupt. I don't think our legal system (at the federal +level, at least) is at all corrupt. I mean simply because the costs of +our legal system are so astonishingly high that justice can +practically never be done. These costs distort free culture in many ways. A lawyer's time is billed at the largest firms at more than $400 per hour. How much time -should such a lawyer spend reading cases carefully, or researching - obscure -strands of authority? The answer is the increasing reality: very - little. -The law depended upon the careful articulation and development -of doctrine, but the careful articulation and development of legal - doctrine -depends upon careful work. Yet that careful work costs too much, -except in the most high-profile and costly cases. +should such a lawyer spend reading cases carefully, or researching +obscure strands of authority? The answer is the increasing reality: +very little. The law depended upon the careful articulation and +development of doctrine, but the careful articulation and development +of legal doctrine depends upon careful work. Yet that careful work +costs too much, except in the most high-profile and costly cases. The costliness and clumsiness and randomness of this system mock @@ -14750,23 +14309,19 @@ top 1 percent of the clients. It could be made radically more efficient, and inexpensive, and hence radically more just. -But until that reform is complete, we as a society should keep the -law away from areas that we know it will only harm. And that is - precisely -what the law will too often do if too much of our culture is left -to its review. +But until that reform is complete, we as a society should keep the law +away from areas that we know it will only harm. And that is precisely +what the law will too often do if too much of our culture is left to +its review. -Think about the amazing things your kid could do or make with -digital technology—the film, the music, the Web page, the blog. Or -think about the amazing things your community could facilitate with -digital technology—a wiki, a barn raising, activism to change - something. -Think about all those creative things, and then imagine cold -molasses poured onto the machines. This is what any regime that - requires -permission produces. Again, this is the reality of Brezhnev's -Russia. +Think about the amazing things your kid could do or make with digital +technology—the film, the music, the Web page, the blog. Or think +about the amazing things your community could facilitate with digital +technology—a wiki, a barn raising, activism to change something. +Think about all those creative things, and then imagine cold molasses +poured onto the machines. This is what any regime that requires +permission produces. Again, this is the reality of Brezhnev's Russia. The law should regulate in certain areas of culture—but it should @@ -14789,15 +14344,16 @@ keep your lawyers away. NOTES -Throughout this text, there are references to links on the World Wide Web. As -anyone who has tried to use the Web knows, these links can be highly unstable. I -have tried to remedy the instability by redirecting readers to the original source -through the Web site associated with this book. For each link below, you can go to -http://free-culture.cc/notes and locate the original source by clicking on the -number after the # sign. If the original link remains alive, you will be redirected to -that link. If the original link has disappeared, you will be redirected to an - appropriate -reference for the material. +Throughout this text, there are references to links on the World Wide +Web. As anyone who has tried to use the Web knows, these links can be +highly unstable. I have tried to remedy the instability by redirecting +readers to the original source through the Web site associated with +this book. For each link below, you can go to +http://free-culture.cc/notes and locate the original source by +clicking on the number after the # sign. If the original link remains +alive, you will be redirected to that link. If the original link has +disappeared, you will be redirected to an appropriate reference for +the material. @@ -14812,17 +14368,16 @@ to him that this book is dedicated.I received guidance in various places from friends and academics, -including Glenn Brown, Peter DiCola, Jennifer Mnookin, Richard -Posner, Mark Rose, and Kathleen Sullivan. And I received correction -and guidance from many amazing students at Stanford Law School -and Stanford University. They included Andrew B. Coan, John Eden, -James P. Fellers, Christopher Guzelian, Erica Goldberg, Robert - Hallman, -Andrew Harris, Matthew Kahn, Brian Link, Ohad Mayblum, -Alina Ng, and Erica Platt. I am particularly grateful to Catherine -Crump and Harry Surden, who helped direct their research, and to -Laura Lynch, who brilliantly managed the army that they assembled, -and provided her own critical eye on much of this. +including Glenn Brown, Peter DiCola, Jennifer Mnookin, Richard Posner, +Mark Rose, and Kathleen Sullivan. And I received correction and +guidance from many amazing students at Stanford Law School and +Stanford University. They included Andrew B. Coan, John Eden, James +P. Fellers, Christopher Guzelian, Erica Goldberg, Robert Hallman, +Andrew Harris, Matthew Kahn, Brian Link, Ohad Mayblum, Alina Ng, and +Erica Platt. I am particularly grateful to Catherine Crump and Harry +Surden, who helped direct their research, and to Laura Lynch, who +brilliantly managed the army that they assembled, and provided her own +critical eye on much of this. Yuko Noguchi helped me to understand the laws of Japan as well as @@ -14836,41 +14391,39 @@ chance to spend time in Japan, and to Tadashi Shiraishi and Kiyokazu Yamagami for their generous help while I was there. -These are the traditional sorts of help that academics regularly -draw upon. But in addition to them, the Internet has made it possible -to receive advice and correction from many whom I have never even -met. Among those who have responded with extremely helpful advice -to requests on my blog about the book are Dr. Mohammad Al-Ubaydli, -David Gerstein, and Peter DiMauro, as well as a long list of those who -had specific ideas about ways to develop my argument. They included -Richard Bondi, Steven Cherry, David Coe, Nik Cubrilovic, Bob -Devine, Charles Eicher, Thomas Guida, Elihu M. Gerson, Jeremy -Hunsinger, Vaughn Iverson, John Karabaic, Jeff Keltner, James - Lindenschmidt, -K. L. Mann, Mark Manning, Nora McCauley, Jeffrey -McHugh, Evan McMullen, Fred Norton, John Pormann, Pedro A. D. -Rezende, Shabbir Safdar, Saul Schleimer, Clay Shirky, Adam Shostack, -Kragen Sitaker, Chris Smith, Bruce Steinberg, Andrzej Jan Taramina, -Sean Walsh, Matt Wasserman, Miljenko Williams, "Wink," Roger -Wood, "Ximmbo da Jazz," and Richard Yanco. (I apologize if I have -missed anyone; with computers come glitches, and a crash of my -e-mail system meant I lost a bunch of great replies.) - --Richard Stallman and Michael Carroll each read the whole book -in draft, and each provided extremely helpful correction and advice. -Michael helped me to see more clearly the significance of the - regulation -of derivitive works. And Richard corrected an embarrassingly large -number of errors. While my work is in part inspired by Stallman's, he -does not agree with me in important places throughout this book. - --Finally, and forever, I am thankful to Bettina, who has always - insisted -that there would be unending happiness away from these battles, -and who has always been right. This slow learner is, as ever, grateful for -her perpetual patience and love. +These are the traditional sorts of help that academics regularly draw +upon. But in addition to them, the Internet has made it possible to +receive advice and correction from many whom I have never even +met. Among those who have responded with extremely helpful advice to +requests on my blog about the book are Dr. Mohammad Al-Ubaydli, David +Gerstein, and Peter DiMauro, as well as a long list of those who had +specific ideas about ways to develop my argument. They included +Richard Bondi, Steven Cherry, David Coe, Nik Cubrilovic, Bob Devine, +Charles Eicher, Thomas Guida, Elihu M. Gerson, Jeremy Hunsinger, +Vaughn Iverson, John Karabaic, Jeff Keltner, James Lindenschmidt, +K. L. Mann, Mark Manning, Nora McCauley, Jeffrey McHugh, Evan +McMullen, Fred Norton, John Pormann, Pedro A. D. Rezende, Shabbir +Safdar, Saul Schleimer, Clay Shirky, Adam Shostack, Kragen Sitaker, +Chris Smith, Bruce Steinberg, Andrzej Jan Taramina, Sean Walsh, Matt +Wasserman, Miljenko Williams, "Wink," Roger Wood, "Ximmbo da Jazz," +and Richard Yanco. (I apologize if I have missed anyone; with +computers come glitches, and a crash of my e-mail system meant I lost +a bunch of great replies.) + ++Richard Stallman and Michael Carroll each read the whole book in +draft, and each provided extremely helpful correction and advice. +Michael helped me to see more clearly the significance of the +regulation of derivitive works. And Richard corrected an +embarrassingly large number of errors. While my work is in part +inspired by Stallman's, he does not agree with me in important places +throughout this book. + ++Finally, and forever, I am thankful to Bettina, who has always +insisted that there would be unending happiness away from these +battles, and who has always been right. This slow learner is, as ever, +grateful for her perpetual patience and love.