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Against Monopoly

defending the right to innovate

Monopoly corrupts. Absolute monopoly corrupts absolutely.





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Probably we just need better people

Via Dave Backus...with some delay. In brief: some poor guy making t-shirts saying "Eat More Kale" is getting sued by a large restaurant chain whose slogan is "Eat Mor Chikin".

Germany has become the jurisdiction of choice for patent suits

KEVIN J. O'BRIEN writes in the New York Times about companies fighting over patents link here. The plaintiffs have taken to court-shopping by suing in Germany rather than in other jurisdictions. Companies fearful of having their German operations closed down by its courts are moving their operations elsewhere in Europe (Germany might now want to consider changing its law and practice).

The story fails to make the most important point, that patents under the US Constitution are intended to foster innovation. They should be so treated elsewhere. Instead, current company practice in both the US and around the world is to ignore that goal. They treat patents as a thing owned like land and physical objects, (in practice in perpetuity by amending the law to extend their life). Patents then become an important way to increase profits.

Patents and copyrights are happy-land for lawyers who also dominate our politics and write the laws that favor their profession. Candidates need to be asked their views on the issue.

"Most Innovations in Most Fields Are Not Patented."

AEI held a session on patents and patent reform building off Launching the Innovation Renaissance. Alex Tabarrok was one of the speakers, taking for his title "Most Innovations in Most Fields Are Not Patented." You can listen to a YouTube of part of his talk and see some related YouTubes at the end. His title says it all link here and link here. The entire conference is to be posted here

For books, it isn't just a choice between Apple and Amazon

Steve Pearlstein writes in the Washington Post about competition in the book selling business link here. He boils the policy issue down to picking your monopolist, Apple or Amazon. That doesn't really frame the choices consumers face.

His frame is either control of the ebook market by Amazon which priced them at $9.99 or by Apple, which raised prices by 30-40 percent through setting a wholesale price and letting retailers set the retail price, incidentally restoring the market in printed books to profitability.

The issue is moot for the moment, since the government has weighed in on the side of low prices but various interests have now gone to court.

Pearlstein leaves out the whole issue of copyright, in the absence of which none of this could have occurred. It is the original monopoly, on the basis of which any other associated monopolies rest. While it is unlikely that Congress will change copyright any time soon, it is important for consumers to know that competitive pricing of books depends on substantially reducing the term of copyright to somewhere between 10 and 20 years.

Public Knowledge

John Bennett draws our attention to Public Knowledge (.org). They "preserve... the openness of the Internet and the public's access to knowledge; promote... creativity through balanced copyright; and uphold.. and protect... the rights of consumers to use innovative technology lawfully". In the wake of SOPA/PIPA they have started the internet blueprint an effort to crowdsource legislative proposals to protect internet freedoms.

Public Knowledge supports "balanced copyright." I do not: I do not think that any copyright serves the purposes of advancing science and the useful arts laid out in the U.S. Constitution or that it serves any useful economic purpose. However - I'd much rather have balanced copyright than what we have now so I'm delighted to see support Public Knowledge in their effort to take back our internet freedoms.

It's my word, don't you dare use it.

We make jokes on this blog about what would happen if every word was under copyright and every time you wrote something you had to get a license for each word. So look at Mike Masnick's post over on Techdirt. People make collages of photographs; the individual photographers are mad because they own the individual pictures. The point is: this should be fair use because it is transformative. A collage is an original and transformative use of pictures the same way an essay is an an original and transformative use of words. So this is what we have come to. I could say the same about sampling in music. I guess we must count our blessings and be grateful that language was invented before copyright.

Patent office cranks up for patent re-exams

Susan Decker writes in the Washington Post about changing tactics in fighting patent suits, particularly the patent trolls link here.

The crucial paragraph states, "Requesting a government evaluation of whether a patent was properly issued, known as reexamination, is cheaper than a lawsuit and has an easier standard for discrediting a patent than what is allowed before a judge or jury. With a success rate of about 90 percent, companies have almost doubled requests in the past five years, turning the patent office into a reliable forum to shoo away competitors' claims of patent infringement."

The patent office is ostensibly gearing up to handle the burdens of a greater workload so that re-exams will be done more rapidly and professionally. We will have to see how this plays out. Past experience suggests a high level of skepticism, but the game plan sounds good. For details, see the article.

SOPA/PIPA and ??

This domain closure stuff is seriously bad news. If the report is to believed a site that provides online forms to hundreds of thousands of users was cut off by their internet provider (Go Daddy - well they were idiots for using Go Daddy for DNS services) at the request of the Secret Service who were investigating something or other - and investigating so hard that they promised they'd look into the site closure in a few days.

If every government bureaucrat (not to speak of those from the MPAA and RIAA) can close down a site with hundreds of thousands of users for a few days because of alleged bad behavior by one of those users we are in deep trouble.

Look, suppose somebody committed telephone fraud in the State of North Dakota. Would that justify shutting down all telephone service in North Dakota while the fraud was investigated? How well would the economy function if we allowed this sort of thing?

The Problem With Liberals

The blinders we put on when we look to government to solve all problems is frightening. As witness Kevin Drum. He's the kind of a middle-of-the-road liberal with whom I often agree. He is also literate about computers and the internet. But he's basically willing to let the government kill the goose that laid the golden egg on spec that there really is a problem with piracy and the government might really be able to do something about it. A decade of evidence is dismissed as "digital IP enforcement ... going through ... growing pains."

Let me reiterate the central point about DRM. The fight is over controlling the content on our computers. Even with complete physical control and administrative authority we are unable to prevent unwanted material (spam, viruses) from appearing on our computers. What are the chances that a third party (the RIAA, the MPAA) can successfully keep material that we want but they don't (pirated music and movies) off of our computers?

Or let me put it this way. I don't run virus checkers on any of my computers because they never find real viruses, but they make the computer unusable. They pop up constant annoying false alarms, they are always demanding to be upgraded, and if you are foolish enough to agree, they download a bunch of garbage then crash the computer. If you do have a virus they pretend to remove it then leave your system unbootable. So: what effect do you think "pirated content checkers" will have on the internet? Find real pirated content? Or render the internet unusable?

Yeesh

Rationalization knows no bounds. Instead of IP law, how about anti-IP law where we can sue people for being jerks?

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