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New copyright bill obsolete before it is written?


Sunday September 13′th is the last day make your voice heard in the 2009 copyright consultation.

One of the goals set by the Ministers is that a new copyright act should stand the test of time given technology and business methods change fairly quickly, while changes to copyright law are necessarily much slower. It is my belief that any copyright bill that starts from the suggestion that we should be ratifying the 1996 WIPO treaties is obsolete before it is written given these treaties were backward facing when they were envisioned in 1995.

We should also learn from economics texts such as The Innovator’s Dilemma (When New Technologies Cause Great Firms to Fail, by Clayton M. Christensen), and allow those historically great firms and industries to dictate policy which will harm Canada’s competitive position in the global economy. We should not be looking to the members of the International Intellectual Property Alliance (IIPA) (BSA members such as Microsoft, Apple and Adobe, RIAA, MPAA, etc) for advise, but to their emerging competitors. These competitors are adopting alternative business methods, and thus seem far more likely to dominate future markets: assuming governments don’t manipulate otherwise free markets to the benefit of yesterday’s companies.

It’s hard to talk about competition to the industry associations representing the old way of doing things without highlighting Google (Note: If you don’t know who they are, just Google them and find out ;-). As Google grows as a company they have entered into markets that compete with many of the members of these older associations.

While they started out with a search engine, the way they monetized search was through advertising. Google is able to target advertisements in ways that old media companies could only dream of, and have been able to grow a massive advertising network from this. This has allowed many creators who might traditionally have worked as journalists for print media publications to write online and get paid advertising revenue more directly through Google. This competes with traditional print media from both sides, with both advertisers and professional journalists moving from print media to online with the help of Google.

Google is about to do to both the traditional book publishing and cable companies through Google book search and YouTube what Apple’s iTunes started to do with the music industry. By enabling creators to skip traditional intermediaries they will one by one be replacing these traditional companies, but where creators and audiences are more in control of their own destiny. I know I’m looking forward to being able to get rid of my Cable TV package and replace it with subscriptions to legal online DRM-free content. It will allow me to choose the programming I actually want, and far more of the money I spend (or advertisers are spending) will be going into the pockets of the creators.

What Google is doing in telecommunications is as interesting. They have a cell phone operating system with Android which currently allows people to connect to traditional carriers, but their involvement in spectrum auctions and Google Voice suggest the direction they are headed in the future.

Google was already seen as a competitor by companies like Microsoft in online properties, but with the announcement of Chrome OS. While this is an operating system based on some of the same technologies as a Linux desktop operating system, I see the promise of Google making (and marketing) their open source platform to a mass market that traditional commercial Linux companies have not been able to do. Targeted at lower cost (and lower power consuming) netbooks, Google has recognized something that many others in the open source operating system markets haven’t yet: that the traditional desktop computer doesn’t matter as it is largely going away.

My brother works at a company that started out developing a desktop operating system, but has moved into other markets including email servers. While they dabbled in netbooks (small computers intended to be used for networking like the ASUS EEE PC), I’m told the operating system side of the company has no future. To put it in another way: “I see dead people.” “They only see what they want to see. They don’t know they’re dead. ”

It is interesting to watch what Google is doing, and compare it with some of their old-economy competitors. Apple is helping to open up markets such as for portable smart computers (you may talk into it, but an iPhone isn’t just a phone), and paid audio and video distribution. One of the things that define Apple, however, is that they are a very closed platform: it is the trait that allowed Microsoft (then a much more open company) to focus on developers and leave them in the dust during past market transformations. Now that Microsoft is as closed as Apple, and both very tied to that older way of thinking about technology, both will be left in the dust by companies like Google. Even with poor hardware (Google’s G1 wasn’t that great), there is a growing number of previous iPhone and BlackBerry fanatics that have moved to Android. New handsets are on their way, and I hope that this batch includes ulocked GSM phones that I will be able to put my SIM card into.

Google is starting with an open platform at a time when Apple is already being asked questions from the USA’s FCC about the nature of their excessive control over what owners of the devices are “allowed” to do with these locked devices (IE: Apple has the keys, not the owner). Apple’s response is entirely of the “father knows best”, ignoring the fact that they have taken the keys of important communications technology from grown adults who should be treated respectfully as property owners..

If anyone wants to learn more about what Google is going, I recommend This Week in Google from the TWiT network. The August 30 episode included some pretty interesting things that tie into the music industry. They spoke about how young people who last years asked for and received as gifts coupons towards the purchase of music. This year they asked for and receiving as gifts coupons towards mobile application stores. Mobile applications are the new content, and are quickly becoming yet another replacement for buying power that previously went to the music industry. This will lead to even greater declines in the recording industry than we have seen already.

As I suggested earlier this week, I believe the recording industry would be seeing similar (if not worse) declines in their revenue even if there was not a single copyright infringement. This should not be seen as a terrible thing for governments to “fix” given software plus hardware can easily be much larger than the content industry. We should not give up the larger number of jobs in these industries in order to protect business models previously used by the content industries.

I always think of a conference where a representative of Intel said that they were not worried about content companies and any harm they could cause with their promotion of legal protection for technological measures. He said that if ever these companies were lobbying for things that didn’t benefit Intel (and DRM is something that benefits Intel as a DRM provider), then they would just purchase the major labels and studios and put them back in line.

What does all of this have to do with Copyright?

As examples, Apple and Microsoft as companies are stuck in the way things were done in the past, and have lobbied the Canadian government (directly and indirectly through the BSA, IIPA and the USTR) towards passing backward facing legislation.

A summary of the round tables said this of the participation at the Toronto Round Table by Google’s Jacob Glick: Expanded fair dealing, safe harbours for ISPs and search engines, circumvention for non-infringing purposes, monetize P2P, copyright is not a zero-sum game.

I recommend everyone read what Mr Glick said and his good-news story about how Google helps content creators who actually want to get paid (rather than want excessive control - not the same thing). Google has been part of the Business Coalition for Balanced Copyright which has forward looking policy suggestions.

The message to the Ministers is simple: If you want copyright to stand the test of time you should be seeking advise from growing companies looking towards the future like Google who are trying to help both audiences and creators benefit from modern technology. Policy makers should not be taking advise or emotion-laden (but content free) directives from the types of companies whose associations make up the IIPA which are looking backwards to the “good old days” when they had a strangle hold on markets to the detriment of both creators and their audiences/customers.

Russell McOrmond is a self employed consultant, policy coordinator for CLUE: Canada’s Association for Free/Libre and Open Source Software, co-coordinator for Getting Open Source Logic INto Governments (GOSLING), and host for Digital Copyright Canada.




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