Showing posts with label monopoly. Show all posts
Showing posts with label monopoly. Show all posts

Thursday, April 04, 2024

Technofeudalism

Cory Doctorow advances the position that capitalism isn't evolving into socialism (as classical Marxism predicted) but into a new form of feudalism:

Capitalists Hate Capitalism

His explanation of the difference between "rents" and "profits" is new information to me (being a bear of very little brain where economic theory is concerned, anyhow). "Rent" in the technical sense used by economists means "income derived from owning something that the capitalist needs in order to realize a profit." It's passive income, so to speak. In Doctorow's example, the manager of a coffee shop has to compete actively with other shops to attract labor and customers. The landlord who owns the building, though, receives money from rent no matter who occupies the space.

In these terms, a gigantic storefront such as Amazon, to which all the individual sellers pay rent, exemplifies "the contemporary business wisdom that prefers creating the platform to selling on the platform" -- "technofeudalism." Doctorow offers several examples, e.g., draconian noncompete agreements forced on employees, the expansion of IP rights to absurd degrees such as the author who attempted to own the word "cocky," and patent trolls whose "only product is lawsuits."

One related abuse he doesn't cover in this article but discusses elsewhere is the universal software marketing practice of not selling electronic products outright but "licensing" them. A "buyer" of a Kindle book, for instance, doesn't literally own it like a hard-copy book, for Amazon can remove the text from the customer's device at any point for any random reason. Granted, this probably doesn't happen often (I haven't experienced it), but the only way to avoid that risk would be to refrain from ever connecting that device to the internet again -- hardly practical.

By Doctorow's title, "Capitalists Hate Capitalism," he means, "They don’t want to be exposed to the risks entailed by competition, and feel the goad of that insecurity. They want monopolies, or platforms, or monopoly platforms." Unlike in many of his essays, in this one he doesn't suggest hypothetical remedies but simply describes a problematic situation.

Margaret L. Carter

Please explore love among the monsters at Carter's Crypt.

Thursday, February 29, 2024

Intermediaries on the Internet

Another post by Cory Doctorow about how good platforms go bad and, by extension, how the internet goes bad:

Intermediation

Why didn't the internet, as promised, "disintermediate the world"? Because in many situations we NEED "middlemen." Doctorow cites publishing as an example. While some authors self-publish and accomplish all the steps of the process themselves or directly pay others to do them (such as cover artists and freelance editors), most of us prefer to have someone else handle those tasks. And even the totally independent self-publishers typically need platforms such as Amazon, Draft2Digital, etc. to sell their work; very few earn money solely by hand-selling their books one by one, like the eccentric wordsmith Doctorow describes in his essay.

"The internet did disintermediate a hell of a lot of intermediaries –- that is, 'middlemen' –- but then it created a bunch more of these middlemen, who coalesced into a handful of gatekeepers." The gatekeepers, as he sees it, are the problem. Online sales of almost anything we might want or need on a single, convenient website is a service most customers value. The problem arises when a giant internet retailer locks out its competitors and/or restricts what customers and third-party sellers can do with the products. We don't hate intermediaries as such, according to Doctorow; we hate "powerful intermediaries." His solution -- for governments to enforce competition-supportive laws.

While I can't deny monopolies are generally a bad thing, except in public service spheres such as utilities and roads, I also highly value the convenience of being able to buy almost anything from Amazon, a website that remembers my address, past purchases, and payment methods and that has been reliably trustworthy with that information so far, as well as fast and efficient. Moreover, I like the capacity to sell my self-published e-books on a site that most potential readers probably use regularly. I love knowing I can find almost any book ever published, a cherished fantasy of mine in my pre-internet childhood and youth. I'd have a hard time getting along without Amazon if it vanished. Yet doubtless the abuses of which Doctorow accuses it are real, too.

As for one area in which powerful middlemen exploit their near-monopoly to perpetrate blatant ripoffs: In the Maryland General Assembly's current session, they're considering a law to forbid companies such as Ticketmaster from buying up most of the tickets for a high-demand event and reselling them at extortionate prices, among other protective measures:

Ticket-Scalping Bill

Despite such abuses, I endorse Doctorow's conclusion that, overall, "A world with intermediaries is a better world." In past centuries, people "in trade," who at first glance seem to add no value to products they profit from through their own middleman activities, used to be scorned by the upper class and regarded with suspicion by their customers. (We encounter the stereotype of the cheating miller in Chaucer's CANTERBURY TALES.) But what would we do without them?

Margaret L. Carter

Please explore love among the monsters at Carter's Crypt.

Thursday, November 16, 2023

Bad People Versus Bad Institutions

In his latest LOCUS essay, Cory Doctorow discusses whether "all the internet services we enjoyed and came to rely upon became suddenly and irreversibly terrible – as the result of moral decay." Setting aside the question of whether "irreversibly terrible" is a bit exaggerated, he reasonably states that "it’s tempting to think that the people who gave us the old, good internet did so because they were good people," and the internet was ruined, if it was, by bad people:

Don't Be Evil

The problem isn't that simple, however, since institutions, not individuals, created the internet. On the other hand, institutions comprise many individuals, some with honorable motives and some driven solely by the quest for profit. In short, "institutional action is the result of its individuals resolving their conflicts." Can corporations as such be evil? Doctorow doesn't seem to be saying that's the case. Every institution, private or public, includes multitudes of people, with conflicting goals, some good and some bad -- both the individuals and their goals. Moreover, as he doesn't explicitly mention, some people's characters and motivations are neither all good nor all bad. Many drift along with the corporate culture from fear of the consequences of resistance or maybe just from failure to think through the full implications of what's going on. He does seem to be suggesting, however, that vast, impersonal forces can shape negative outcomes regardless of the contrary wishes of some people involved in the process. "Tech didn’t get worse because techies [workers in the field] got worse. Tech got worse because the condition of the external world made it easier for the worst techies to win arguments."

What solutions for this quandary could be tried, other than "burn them [the allegedly villainous "giants of the internet" such as Amazon and Google] to the ground," in my opinion a bit too drastic? Doctorow insists, "A new, good internet is possible and worth fighting for," and lists some aspects he believes must change. Potential avenues for improvement can be summarized by the need to empower the people who mean well -- the ones Doctorow describes as "people within those institutions who pine for a new, good internet, an internet that is a force for human liberation" -- over those who disregard the concerns of their customers in single-minded greed for profit.

On the wider topic of individual responsibility for the villainous acts of institutions over which one doesn't have any personal control, one might be reminded of the contemporary issue of reparations to historically oppressed groups. Of course, one can quit a job and seek a more ethical employer, but renouncing one's nationality or ethnic ancestry would be severely problematic. However, since that subject veers into "modpol" (modern politics, as strictly banned on an e-mail list I subscribe to), I'll simply point out C. S. Lewis's essay, in a different context, about repenting of other people's sins:

Dangers of National Repentance

Margaret L. Carter

Please explore love among the monsters at Carter's Crypt.

Thursday, November 10, 2022

Corporate Bullies and Copyright

Cory Doctorow's article for the November 2022 LOCUS discusses the ever-increasing reach of monopolies that prey on the work of writers and other content creators, in terms of a parable about bullies stealing lunch money. If the victims get more lunch money, they don't get more food; the bullies get more money. No matter how much artistic creators produce and theoretically earn, the greed of the rights-grabbers will never be sated:

Structural Adjustment

Doctorow reminds us that only five (maybe, soon, four) major publishing conglomerates exist and that the realms of physical bookselling, online retailing and e-book sales, book distribution, and music production are each dominated by one mega-corporation. "Publishing and other 'creative industries' generate more money than ever — and yet, despite all this copyright and all the money that sloshes around as a result of it, the share of the income from creative work that goes to creators has only declined." In book publishing, unless an author chooses to self-publish (or go with small independent presses, which he doesn't mention in this article), "Contracts demand more — ebook rights, graphic novel rights, TV and film rights, worldwide English rights — and pay less." And of course the major online retailers exercise their dominance over self-publishers' access to markets.

He summarizes in terms of his parable, "We’re the hungry school kids. The cartels that control access to our audiences are the bullies. The lunch-money is copyright."

Asserting, "Cartels and monopolies have enacted chokepoints between creators and audiences," Doctorow recommends a book, CHOKEPOINT CAPITALISM: HOW BIG TECH AND BIG CONTENT CAPTURED CREATIVE LABOR MARKETS AND HOW WE'LL WIN THEM BACK, and gives an example of one of the strategies recommended in it.

While I understand his points and recognize the dangers he often cites in his articles, as a reader (and online consumer in general) I would have trouble getting along without Amazon. It's a great boon to be able to find almost any book, no matter how obscure and long out of print. I value being able to acquire the complete backlist of almost any author I'm interested in. I enjoy having purchases delivered to our doorstep, since the older I get, the less I want to go out searching for items —- especially given the not-unlikely frustration of not finding what I want in stock locally. And I trust Amazon to fill orders reliably and handle credit information securely, rather than my taking the risk of buying from websites unknown to me. As an author, if I decide to self-publish a work, I like being able to upload it for free on the most popular e-book seller's site, plus other retailers through Draft2Digital. At the same time, I realize Doctorow isn't wrong that by embracing convenience and economy, we put ourselves at the mercy of the provider's whims. For one thing, buying a product in electronic form (e-book, music file, movie, etc.) means the seller can make it evaporate from the consumer's hard drive or tablet anytime. So what's the ideal solution? I don't know.

Margaret L. Carter

Carter's Crypt

Thursday, March 10, 2022

Big Tech Tyranny?

Cory Doctorow's March LOCUS column discusses tech tycoons from the perspective of monopoly and world domination. Well, that phrase may be a bit exaggerated but not totally inapplicable, considering his term "commercial tyrant":

Vertically Challenged

Is meritocracy a "delusion"? Are people such as Mark Zuckerberg (founder of Facebook) unique geniuses, or did they just get lucky? One might maintain that some sort of genius is required to recognize opportunities and take advantage of the "luck," but that's beside Doctorow's point. He argues against "vertical integration" and in favor of "structural separation." Fundamental antitrust principles should forbid mega-corporations from competing with the companies to which they sell services. "Amazon could offer virtual shelf space to merchants, or it could compete with those merchants by making its own goods, but not both. Apple could have an app store, or it could make apps, but not both."

It's easy to see his point. It would be better if Google could somehow be prevented from giving preference in search results to entities in which it has a financial interest. On the other hand, more ambiguous "liminal" cases exist, a point Doctorow himself does acknowledge. For example, "Amazon might say it gives preferential search results to businesses that use its warehouses because it can be sure that those items will be delivered more efficiently and reliably, but it also benefits every time it makes that call." Granting the second half of that sentence, I'm still not sure this practice is a bad thing. Given a choice between two identical products of equal price, I DO tend to choose the one labeled "Fulfilled by Amazon" for that very reliability, as well as speed of delivery. As for splitting off Amazon's publishing services, as he advocates, I'd be dubious. I like the way Kindle self-publishing currently works.

Doctorow also brings up problems that may require "structural integration" rather than separation, to prevent Big Tech from evading its legitimate responsibilities. He tentatively calls for "a requirement that the business functions that harm the rest of us when they go wrong be kept in-house, so that the liabilities from mismanaging those operations end up where they belong." Is there a simple answer to the dilemma of maintaining the conveniences we enjoy while preventing the abuses?

Margaret L. Carter

Carter's Crypt

Thursday, July 15, 2021

Monopolies and Interoperabilty

Another LOCUS article by Cory Doctorow on monopolies and trust-busting:

Tech Monopolies

He begins this essay by stating that he doesn't oppose monopolies for the sake of competition or choice as ends in themselves. He cares most about "self-determination." By this he means the individual consumer "having the final say over how you live your life." When a small handful of companies controls any given field or industry, customers have only a limited range of products or services to choose among, preselected by those companies, even if this limitation remains mostly invisible to the average consumer. Not surprisingly, Doctorow focuses on this constraint as imposed by Big Tech. He recaps the growth of "the modern epidemic of tolerance for monopolies" over the past forty years. In the present, technology giants tend to crush small competitors and merge with large ones.

To some extent, this tendency—e.g., the situation Doctorow highlights in which everybody is on Facebook because everybody else is, in a feedback loop of expansion—provides a convenience to consumers. I'm glad I can find just about anyone I want to get in touch with on Facebook. As a result of such "network effects," a system becomes more valuable the more users it has. As a reader and a bibliographer, I don't know how I'd manage nowadays if Amazon didn't list almost every book ever published. I resent the brave new broadcasting world in which I have to pay for several different streaming services to watch only a couple of desired programs on each. I LIKED knowing almost any new series I wanted to see would air on one of our hundreds of cable channels. (Yes, we're keeping our cable until they pry it out of my cold, dead remote-clicking hand.) On the other hand, I acknowledge Doctorow's point that those conveniences also leave us at the mercy of the tech moguls' whims.

Half of his article discusses interoperability as a major factor in resisting the effects of monopolies. Interoperability refers to things working together regardless of their sources of origin. All appliances can plug into all electrical outlets of the proper voltage. Any brands of light bulbs or batteries can work with any brands of lamps or electronic devices. Amazon embraces interoperability with its Kindle books by allowing customers to download the Kindle e-reading app on any device. Likewise, "all computers are capable of running all programs." For self-published writers, services such as Draft2Digital offer the capacity to get books into a wide range of sales outlets with no up-front cost. Facebook, on the other hand, forecloses interoperability by preventing users from taking their "friends" lists to other services, a problem that falls under "switching costs." If it's too much trouble to leave Facebook, similar to the way it used to be too much trouble to change cell phone providers before it became possible to keep your old phone number, consumers are effectively held hostage unless willing to pay ransom in the form of switching costs (monetary or other).

Doctorow concludes, however, with the statement that the fundamental remedy for "market concentration" isn't interoperability but "de-concentrating markets." Granting a certain validity to his position, though, how far would we willingly shift in that direction if we had to give up major conveniences we've become accustomed to?

Margaret L. Carter

Carter's Crypt

Thursday, May 13, 2021

Quantitative and Qualitative

Cory Doctorow's latest LOCUS column analyzes the difference between quantitative and qualitative measurements and the pitfalls of depending solely on the former:

Qualia

He begins with examples from the COVID-19 pandemic. The University of Illinois at Urbana-Champaign became the epicenter of a COVID outbreak as a result of putting too much faith in an epidemiological model produced by "a pair of physicists." (The article doesn't mention why they were chosen to work the calculations instead of specialists in epidemiology.) The predictions didn't take into account the variables of human behavior, the "qualitative" element. The article cites contact tracing as another example of similar problems. Regardless of how accurate the math based on the data may be, do the infected people trust contact tracers enough to supply reliable data? Those who work with quantitative elements such as statistics and mathematical models have to restrict their research to elements that can be quantized. As Doctorow puts it, "To do math on a qualitative measurement, you must first quantize it, assigning a numeric value to it," a difficult and dubiously reliable process. (E.g., "How intense is your pain?" I never quite know how to answer that question on a scale of one to ten.)

Quantitative disciplines, as he summarizes the issue, "make very precise measurements of everything that can be measured precisely, assign deceptively precise measurements to things that can’t be measured precisely, and jettison the rest on the grounds that you can’t do mathematical operations on it." He compares this process of exclusion to the strategy of the proverbial drunk searching for his car key under the lamppost—not because that's where he lost it, but because that's where the light is.

Doctorow applies the principle to an extended discussion of monopolies, price-fixing, collusion, and antitrust laws. As an example of the potential injustice generated by "treating all parties as equal before the law," he mentions the designation of Uber drivers as "independent contractors." When treated as equivalent to giant corporations, those drivers are forbidden to "form a collective to demand higher wages," because that's legally classified as "price-fixing."

Although Doctorow doesn't mention writers, the same absurdly imbalanced restrictions can be made to apply to them. If an authors' organization promulgates a model contract and puts pressure on publishers to adhere to it, that's prohibited as "collusion" in restraint of trade.

While, according to Doctorow, "Discarding the qualitative is a qualitative act. . . . the way you produce your dubious quantitative residue is a choice, a decision, not an equation," that doesn't mean quantitative measures are useless or inherently evil. The quest for objectivity has its legitimate role—"just because we can’t rid ourselves of the subjective, it doesn’t follow that we must abandon the objective." Reliable empirically based outcomes result from balancing the quantitative and the qualitative components of the available evidence.

Margaret L. Carter

Carter's Crypt

Thursday, March 11, 2021

Problems with Monopolies

Cory Doctorow's LOCUS article for this month delves into a lot of background about markets and monopolies that's new to me:

Free Markets

He begins by explaining that the classic threat to the free market wasn't considered to be government control, but corporate monopoly. Adam Smith in THE WEALTH OF NATIONS warns of the power of rentiers, which Doctorow defines as follows: "A rentier is someone who derives their income from 'economic rents': revenues derived from merely owning something" -- for example, a landlord. Doctorow extends this concept to companies such as Amazon and Google, "Big Tech" in general, with the power to control "access to the marketplace." A monopolist, in this view, isn't simply a corporate monolith with limited competition; it's an entity "who can set prices without regard to the market"

The primary example Doctorow focuses on is, not surprisingly, DRM. In addition to the alleged purpose of preventing copyright infringement (at which he maintains DRM utterly fails), the relevant law "felonizes removing or tampering with or bypassing DRM, even when no copyright infringement takes place." Therefore, a buyer of an e-book (such as a Kindle novel) can't read it on any device not authorized by the seller. As a result, Big Tech, not the author who owns the copyright, gets "permanent veto over how my books can be used: which devices can display them, and on what terms." However, since all e-book platforms (so far) make DRM optional, Doctorow and his publisher have the power to sell his work DRM-free.

He discusses at length the very different status of audiobooks. Amazon requires all audiobooks released through its Audible program, whether produced by Amazon itself or some other publisher, to be "wrapped in its proprietary lockware." That's something I didn't know, since I don't have any audiobooks on the market and never buy books in that medium. In response to that policy, Doctorow turned to Kickstarter to release his books in audio format, and he analyzes in detail how that project worked out. He also explains how much more complicated it is to download and play an audiobook with an independent app than to buy it through Audible. I previously had little or no awareness of the hard line the Big Tech companies take toward "noncompliant apps."

I have an ambivalent reaction toward Doctorow's stance on Amazon. In principle, I acknowledge that dominance of a market by one company isn't desirable. In practice, as a reader I love knowing I can find almost any book I've ever heard of on a single website. It's a vanishingly rare occurence when I can't find a book listed there, no matter how long out of print. I also turn to Amazon first for many items other than books, music, and visual media. I like buying from it because of its reliable, usually fast delivery and because it already has our credit card on file, so I don't have to enter the information on unfamiliar sites. As a writer, for my "orphaned" works I like the ease of self-publishing through Kindle and the fact that the vast majority of e-book buyers are likely to read the Kindle format. At least one of my publishers feels the same way, having pulled their products from all other outlets because those sales were negligible compared to Amazon sales. Yet I do understand having qualms about being at the mercy of one powerful commercial entity's whims.

Margaret L. Carter

Carter's Crypt

Thursday, September 17, 2020

On Intellectual Property

Cory Doctorow has an unusually long, information-dense post this bimonth, about the background of the concept of intellectual property:

IP

He reviews the history of open source software and the shift toward increasingly stringent restrictions, leading up to the present situation in which taking the wrapper off a box legally commits users to agreements they haven't yet had a chance to read. He discusses in great detail the principle of "interoperability," which lets all railroads run on the same tracks, all brands of lightbulbs work in lamps from different manufacturers, in general all the benefits of standardization. "Interoperability lowers 'switching costs' –- the cost of leaving behind whatever you’re using now in favor of something you think will suit you better." This advantage to consumers, naturally, is something a lot of commercial interests would like to eliminate or minimize. Doctorow analyzes how companies such as Google and Facebook make it easy for customers to start using their services but hard to get out, sometimes impossible to do so without abandoning a wide network of services and contacts. He explores the differences among copyright, patent, and trademark and how those different "creators' monopolies" became bundled together under the single term "intellectual property" -- a development he disapproves of, by the way.

Market monopolists, according to Doctorow, often strip power from the alleged "creator's monopoly." Corporate monopolists also tilt the balance of power as far as possible from the consumer to the seller. The abuse of DRM, one of Doctorow's recurrent topics, is a conspicuous example. Laws against bypassing software, as more and more devices in common use become computerized, will inevitably lead (according to him) to this result: "Software isn’t just a way to put IP into otherwise inert objects. It’s also a way to automate them, to make them into unblinking, ever-vigilant enforcers for the manufacturer/monopolist’s interests. They can detect and interdict any attempt at unauthorized interoperability, and call the appropriate authorities to punish the offenders." Furthermore, "Even where tech is challenging these monopolies, it is doing so in order to create more monopolies." He mentions the Kindle program and Amazon's dominance of the audiobook market as examples.

This article contains much to reread, digest, and debate. Is Doctorow's concluding manifesto valid? "There are no digital rights, only human rights. There is no software freedom, only human freedom."

Margaret L. Carter

Carter's Crypt

Thursday, April 09, 2020

The "Catch" in Author's Monopoly

Cory Doctorow's March LOCUS column asserts, "A Lever Without a Fulcrum Is Just a Stick":

Lever Without a Fulcrum

The "lever" here is copyright law, the "author's monopoly." The article focuses on some ways the common practices of major publishers can use this "lever" as a "stick" to beat creators. According to Doctorow, broad copyright protections designed in theory to safeguard the rights of authors often don't accomplish that goal in practice if publishers' contracts demand control over the exercise of those provisions. Authors, particularly novice writers, usually can't negotiate changes in standard publishing deals; they face "take it or leave it" offers. E-book and audio rights, for example, are seldom left under the creator's control. This situation effectively strips the "author's monopoly" of much of its power. "The fact that the company can’t reproduce your book without your permission doesn’t mean much if the only way to get your book into the public’s hands is through that company, or one of a small handful of companies with identical negotiating positions."

Doctorow analyzes phenomena such as music sampling, record contracts, Audible (the audiobook provider), video streaming, and DRM in relation to the general problem that, "Market concentration at every part of the supply chain is conspiring to make life harder for artists." His proposed solutions involve rights reversion clauses, changes in licensing rules, and unionization, among other possibilities.

I might suggest that authors deal with small presses (both print and e-book) rather than the Big Five. Small publishers can provide a personal touch and, often, more flexible contractual terms. But, of course, the mammoth corporations offer bookstore exposure and high-volume sales; the latter are almost impossible to achieve online without strong marketing skills. Also, an author who feels she lacks the expertise, resources, or time to exploit subsidiary rights effectively might prefer to leave those outlets in the hands of a publisher with the connections and experience to do so for her. It's a puzzlement.

Margaret L. Carter

Carter's Crypt

Thursday, January 16, 2020

Freedom of Speech Online

Cory Doctorow's latest LOCUS column explores the distinction between freedom of speech in the legal sense and the pragmatic limitations encountered on the Internet:

Inaction Is a Form of Action

He focuses on the effects of the dominance exerted by tech giants such as Facebook and Google. The Constitution forbids government interference with freedom of speech, but it doesn't prevent private businesses from setting their own rules. Constructing a parable of two restaurants, one that forbids political conversation on its premises and another with no such prohibition, he acknowledges that customers who don't like the restrictions of No Politics Diner can eat at Anything Goes Bistro. But suppose No Politics Diner not only buys up all its competitors but branches out to own a variety of other kinds of businesses as well? It's theoretically possible that soon there won't be any privately owned public spaces in town where customers can discuss politics. Without any interference by government, freedom of speech has effectively been limited.

With the pithy comment that Facebook "has hostages, not users," he applies this analogy to online services. When the giants have swallowed up so many of their competitors that (in an exaggerated but still chilling quote) the Internet has become “five websites, each consisting of screenshots of text from the other four,” policies set by these companies can restrict online speech even though no state censorship is involved. Services such as Facebook make rules, followed by exceptions to the rules, then additional layers of regulations to close the loopholes created by the exceptions. The resulting incomprehensibly complex tangle of exceptions and loopholes, according to Doctorow, "will always yield up exploitable vulnerabilities to people who systematically probe it." While the trolls run rampant, the rest of us may have no means of defending ourselves against them.

He has a list of suggestions for "fixing" the Internet to transform it into an environment "that values pluralism (power diffused into many hands) and self-determination (you get choose which tech you use and how you use it)." One thing he urges is breaking up the Big Tech monopolies. I have reservations about whether this course of action is practical (or, under current law, legal, but that's an area I don't know much of anything about). It's hard to argue with his summary of the problem, however: "When the state allows the online world to become the near-exclusive domain of a small coterie of tech execs, with the power to decide on matters of speech – to say nothing of all the other ways in which our rights are impacted by the policies on their platforms, everything from employment to education to romance to (obviously) privacy – for all the rest of us, they are making policy."

Margaret L. Carter

Carter's Crypt

Thursday, May 23, 2019

Monopolies, Publishing, and Online Media

Cory Doctorow's latest column briefly surveys the history of antitrust enforcement, considers the effect on creative artists of the concentration of market share in a few mega-organizations, and analyzes a provision of the European Union's new Copyright Directive. Spoiler: He's against it (that one clause, anyway).

Steering with the Windshield Wipers

I must admit my initial reaction to the first paragraph was amusement at a tangential thought. Doctorow illustrates the monopolizing of an industry by a few corporations or only one with this suggestion: "Take off your glasses for a sec (you’re a Locus reader, so I’m guessing that you, like me, are currently wearing prescription eyewear) and have a look at the manufacturer’s name on the temples." If you need glasses to read text on a screen, how are you supposed to read the brand name on them when you take them off? I tried, and as I expected, the print is way too small. LOL. Anyway, Doctorow reveals that most eyeglass frames and lenses are made by the same company that owns the major retailers in the field. (So my personal choice, Lenscrafters, isn't really independent of its alleged competitors such as Pearle Vision. We live in a weird world, all right.) From that point, he asks how we got into this situation and proceeds to discuss Facebook and other Internet social media engines. He offers examples of "overconcentration blues" in film and TV, the music industry, publishing, and social media sites (with particular emphasis on Facebook's privacy problems).

He strenuously objects to the EU Copyright Directive's clause that requires online providers to "block anything that might be unlicensed, using automated filters." In Doctorow's opinion, "This is a plan of almost unfathomable foolishness." One of his primary objections is that the policy won't stop infringement, because filters are susceptible to abuse, "imperfect and prone to catching false positives," and "cheap and easy to subvert." He also believes the rule will be so expensive to comply with that smaller companies will be squeezed out, to the benefit of the mega-conglomerates.

In near-apocalyptic language, he works up to the conclusion that "monopolies are strangling the possibility of a pluralistic, egalitarian society." This article, however, doesn't answer the logical next question: What must we do to be saved? As for the publishing industry, it doesn't seem to me that the dominance of the Big Five (possibly soon to become four) is quite so dire for authors as it used to be. We now have alternative outlets that didn't exist in the past, in the form of a multitude of small presses and e-publishers, as well as inexpensive self-publishing.

Some services, in my opinion, SHOULD be provided by monopolies. Maintaining utility infrastructure such as the electrical grid or the sewer system, for instance. But not publishing.

Margaret L. Carter

Carter's Crypt

Sunday, September 20, 2015

Intellectual Property Rights, Hypocrisy, Transparency, Immorality (By Others)

I mean to write about government "consent degrees", which seems to me to be an Orwellian term for the situation where authors (whether of music or of literature) are forced to accept reduced royalties and loss of negotiating rights by the heavy hand of the government which favors Big Business political contributors, and enables these "disruptors" or exploit writers.

However, my thoughts aren't fully formed, so for now, I will post some thought-provoking links to other writers' blogs and articles in honor of Talk Like A Pirate Day, which was yesterday.

Arggggh.

(Credit and kudos for this collection goes to The Trichordist although I am re-mixing their links and adding comments of my own here and there.)

For instance, I am surprised to find myself agreeing with Robert Reich (an advocate for the redistribution of property)... or at least with his headlines. IMHO, the "sharing economy" takes from the copyright owners the right and ability to be paid --or paid fairly-- for their work.

Robert Reich: The sharing economy will be our undoing | Salon
http://www.salon.com/2015/08/25/robert_reich_the_sharing_economy_will_be_our_undoing_partner/
And
Robert Reich: Is Big Tech Too Powerful....
http://mobile.nytimes.com/2015/09/20/opinion/is-big-tech-too-powerful-ask-google.html?_r=0


Amazon, Facebook and Google have the same secret  | Salon
http://www.salon.com/2015/08/30/amazon_facebook_and_google_have_the_same_secret/
* Our modern tech monopolies made billions and transformed the economy in different ways, but this was the base.
This Salon article points out that Microsoft has enjoyed a monopoly because its business model is based on intellectual property.
"Apple, Oracle, Google, Facebook, Amazon) have been accused of antitrust violations. But even when the antitrust cases have gone against them, the basis of these monopolies in intellectual property has limited the effectiveness of remedies." 

Randolph May and Seth Cooper explain why the Founding Fathers valued copyright protection for creators.
Why intellectual property rights matter | The Washington Times
http://www.washingtontimes.com/news/2015/sep/3/randolph-may-seth-cooper-why-intellectual-property/
* The Founders believed ownership of one’s labor is a natural right
"...a substantial amount of online piracy is attributable to the contemporary “downgrading” of IP rights by otherwise law-abiding people. With so much information so readily available on the Internet and so easily copied, distributed, recopied and redistributed, ad infinitum, many suppose online content is there for the taking."
IMHO Consent degrees suggest that a single, appointed judge in New York should decide who decides on what is a fair price for a song or for an ebook and whether or not the creator may negotiate. 
Film Producers Sue 16 Popcorn Time Users in Bid to Curb Piracy | PC Mag
http://www.pcmag.com/article2/0,2817,2490549,00.asp
IMHO, the suit against Popcorn Time USERS could be a turning point, because it is the viewers, rather than the piratical uploaders, who may be being pursued.
"Survivor Productions admitted that it had not personally identified the users, but had obtained IP addresses and their general location. The company also knows that they are Comcast customers and says it may be able to identify them with the provider's help."
Allegedly, Popcorn Time is "Netflix for pirated movies". Given the possibility that xfinity or u-verse service providers have the ability to help, this sort of piracy might not be worth the risk.
The MovieTube Litigation Part I: Who Needs SOPA? | Law Theories
http://lawtheories.com/?p=2269
IMHO, this doesn't sound like current, compelling reading.... but it is! Allegedly, MovieTube was a movie pirate site based in Singapore, and since the copyright owners had little chance of shutting the pirates down in Singapore, they parsed the existing DMCA (nothing to do with SOPA, which failed) and found arguments that an American court had the power to compel the American sites that made MovieTube possible (and perhaps profitable) to disable links to it.
"Nonetheless, a group of tech giants, comprised of Google, Facebook, Tumblr, Twitter, and Yahoo, filed an amicusbrief arguing that “the proposed injunction violates Federal Rule of Civil Procedure 65 and the safe-harbor provisions of the DMCA.” Specifically, the amici claim that an injunction against MovieTube couldn’t bind third parties such as themselves because Rule 65(d)(2) and Section 512(j) of the DMCA wouldn’t allow it."
IMHO, that is a weird. reading of Safe Harbor.  The tech giants weren't being fined, or anything like that. They were simply --as I understand it--being deprived of an illegal revenue source that they shouldn't have been exploiting in the first place.
This is a follow-on story:
Hollywood, Silicon Valley Sharpen Their Swords in Piracy War | Variety
http://variety.com/2015/digital/news/hollywood-silicon-valley-internet-piracy-1201572854/
Here's hypocrisy (exposed by Jonathan Lamy):
"Jonathan Lamy, spokesman for the Recording Industry Assn. of America, painted the anti-copyright forces as hypocrites. “During the SOPA debate, the common response was that existing law or agencies like the ITC were the appropriate ways to deal with overseas rogue websites,” he said. “Fast forward three years, and apparently those statements are ‘no longer operative.’ Our job is to hold them to their word.”
Of hairy legs and cross-hairs....
"of Carl Crowell, a one-man police force for Hollywood studios seeking to protect the value of their movies. He’s waging a battle against a widespread belief many Internet users hold: that content should be free, regardless of who produced it or under what conditions."
Go Carl!!!

Finally, if "finally" can refer to a steam of five more urls, here are a bunch of links to very much music related stories. I include them without further comment because, IMHO, authors--even alien romance authors--should watch what happens and has happened to the intellectual property rights of songwriters.  They are probably canaries in the coal mine.
The More Money Spotify Makes, The Less Artists Get Paid | Digital Music News
http://www.digitalmusicnews.com/2015/09/03/the-more-money-spotify-makes-the-less-artists-get-paid-2/
A Stream on Apple Music Pays Songwriters And Publishers 33% More Than A Stream On Spotify | Hypebot
http://www.hypebot.com/hypebot/2015/08/a-stream-on-apple-music-pays-songwriters-and-publishers-33-more-than-a-stream-on-spotify.html
WashingtonWatch: Pre-’72 Royalty Battle Adds Another New York Lawsuit | Grammy Pro https://www.grammypro.com/advocacy/news/washingtonwatch-pre-72-royalty-battle-adds-another-new-york-lawsuit
Radio Giants Facing Bicoastal Legal Demands to Stop Playing Pre-1972 Songs | Billboard
http://www.billboard.com/articles/news/6678790/radio-giants-facing-bicoastal-legal-demands-to-stop-playing-pre-1972-songs
What EMI’s six-month sample amnesty means for the music industry | The Guardian
http://www.theguardian.com/music/2015/sep/01/emi-sample-amnesty-means-for-the-music-industry
Have a profitable week,
Rowena Cherry