Biggest threat to internet innovation

Regardless where you live, the largest threat to the internet is the US Congress/Department of Justice and close second may be the UK court system. In this post i’m going to focus on the US congress and DOJ because what they are doing is fairly ridiculous. The US Congress is currently considering a bill called Stop Online Piracy Act or SOPA, critics like to call it the E-parasite act. This act, according to various sources, this bill amounts to online black-listing. It’s also being called the Great FireWall of America. This is a complete disaster in my opinion. The internet is one of the fastest growing parts of our economy. Anyone can start up a web based company. It doesn’t have to be anything fancy at first, but over time you’ll get more sophisticated.

The EFF notes three extremely popular sites that are in the cross hair of SOPA. Etsy, because there are simply too many little shops that could be selling illegal material. For instance, the US Supreme Court Ruled that you couldn’t resell AutoCAD, the likelihood of that happening might be low, but what about a screen printed shirt with some band logo? That’s just as illegal. Another site is Flickr, which is pretty obvious because it’s so easy to claim a picture as your own. The last they mention is Vimeo for the same reasons. I would also expect YouTube to be on that list as well.

So aside from a black list what does the actual bill do? What legal censorship isn’t enough for you to be outraged against this bill? I mean we’re talking about Turkey and Pakistan level of censorship of sites here. It’s not unrealistic to expect facebook and Google to get black listed with this law. Facebook could get hit if some one quotes stuff illegally or posts video with copyrighted material on it. Since you’re able to post and stream through facebook, it might raise some questions over copyright.Google of course links to a huge amount of copyright material that a user can get illicitly.

Ok, what else is there you really want to know? The rights holders can request payment processing companies (read Visa, Mastercard and ad companies) to block payments to your site. For some people that will mean no more YouTube money, for others it will be a death sentence. Does the court get involved with any of this? Nope. The companies have 5 days to respond to a payment stop. Which means even if you are in the clear, if a request happens, you likely won’t get paid. Check the EFF’s break down for more details.

But this is ‘Merica! Surely something like this won’t happen. They’ll take our jerbs! Yes, they could in fact take away your jobs. Is anyone fighting against this? Yep. Google, Facebook, Zynga, Twitter, Michelle Bachmann (Yes the crazy lady), Ron Paul (Yes the crazy in a different way guy) and a small list of Congress members from both sides of the aisle are banding together to try to kill the bill. They are arguing that the bill is too broad and doesn’t appropriately address the problem is trying to “fix.”

What do most Americans feel about copyright legal action? As a whole they are against it. In fact most only think that a small fine of a maximum of $100 is appropriate for a downloaded song. Many have indicated that as more legal alternatives have appeared users have been less likely to use the illegal versions. Of course this is self reported data so it could be skewed, but even if you add 10 points it’s still showing that legal alternatives are best deterrent for illegal downloading.

You can email your representatives here. I strongly suggest you do. The more voices that speak out in protest the more likely at least a few people will hear. Personally, I don’t think the US government should even be talking about copyright right now. They need to be working on jobs.

Ubiquitous free high speed wireless

One of the people I follow on twitter posed an interesting question. What would happen if there was free broadband wireless all over Europe. I sent them my 140 character answer but felt really unsatisfied by that. I’m going to devote some blog space to it over the next few days because I think that there would be a lot of changes. I’m going to break this into a few section. I haven’t worked out all of them but there will be government, business, computing and social changes. This structure loosely follows some of the structure within Lawrence Lessig’s Code 2.0. He also argued there were four structures that impact community building on the internet. It is written in the US context, but can be applied in other countries.

I’m going to start with Governmental changes.

One of the first things that will happen will be further encroachments on the ability for users to be anonymous and use pseudonyms online. Initially the requirement to login will be used to track which areas have the highest user rates and things like that, but this could be an incredibly powerful tool to prevent copyright abuse from users of the network. IP addresses would go out the window as an enforcement tool of nearly any online abuses. For instance, the safest place to download a movie from the internet would be on the train. You’d be changing IP addresses frequently and it would be very difficult to track a single user from one IP address to the next.

To deal with these problems there would have to be strict oversight to protect users of the network from invasions of privacy from the government and third party users of the network. Currently, the US government has a significantly heavy hand in collecting data from ISPs, Cloud data and social networking data. This includes both European and US data. This would need to be prevented.

Paying for and managing this network would need to be determined as well. One route could be to put a tax on advertisements that are displayed in a IP address range. Since IPs are distributed through regions this would be technically possible. Google just announced they made $9.7 Billion and nearly all of that is from ads (99% was from ad revenue in 2008). Putting a modest tax on this revenue will help pay for this network. Assuming that this infrastructure would need to be rolled out and continually upgraded I would expect at least $2-3 billion annual investment is required. I’m basing this on how much Verizon Wireless and AT&T invest in their network annually. This of course would change based on the amount of capacity required (a lot) and what technology used (WIFI, Wi-Max, LTE) for the network.

Since, this will effectively kill the business model of the telecoms, like T-mobile and KPN, they could be used to help manage the network. Governments and the like aren’t the best at managing these networks these old companies would be the best suited to manage it. That or create an organization that is based on former employees.

Finally, the network would have to be net neutral. Otherwise, it would effectively be government censorship if there was a reduction in access to any portion of the web. This means that the internet would be free as in free beer and free as in free speech. This would ensure the most positive results from the free internet on the business side and improve ability of users to participate in democracy.

Biggest changes? Management of the network, increased privacy concerns, paying for the network and copyright owners influence on data controls.

In my next blog I’ll discuss how this would change the business environment.

The ACTA has been signed

For those of you who aren’t aware the US and many other countries have signed the Anti-Counterfeiting Trade Agreement or ACTA. This law provides a legal framework for nations across the world to enact something similar to the US Digital Millennium Copyright Act (DMCA). This framework gives additional control to law enforcement and copyright holders. Something also abnormal about this trade agreement is that the US claims that it doesn’t need congressional approval. I find this extremely odd, as it’s part of the charter of the legislative branch to approve trade agreements. Additionally, as I’m not a lawyer, I don’t understand what’s inherently different in the ACTA from the South Korean Free Trade Agreement, which has been stalled since Bush II.

At this point the EU hasn’t signed the agreement yet. France and Germany have both enacted some already strict laws in regard to the number of strikes an infringer can have before they lose internet connections.Of course there are some serious issues with the approaches that are used to accuse copyright infringers. most of them deal with how to identify a suspected infringer. At this time France’s first three strike infringer doesn’t know how to do that. Additionally, in Germany, where a legislator wants a 2 strike law, the same legislator has already violated this before the law has gone into affect.

I believe that these cases really indicate that legislator really don’t understand how the internet and copyright works. It’s clear from the DMCA that they don’t and neither do judges. However, I think that Judges are starting to seriously figure out what’s going on with copyright and the controls that are being put into place. Recently in several districts judges have severed joint cases of copyright cases, because most of the IP addresses, which are typically associated to a region or city, were outside the jurisdiction of the court they are being tried in. Additionally, some judges are noting that IP addresses aren’t people and other people could be using the IP address. Even more recently a judge writes that in the DMCA suggest if you own a DVD it’s ok to rip it.Which is something that the DMCA is trying to prevent. DMCA was design to prevent circumventing the copy blocking technologies. It made it illegal.

Overall, the ACTA is a huge blow for advocates of reducing or eliminating copyright. I seriously hope that if this trade agreement does have to go through the US congress that it will be rejected. It’s a law that doesn’t take into account the current technologies and what culture really means.

Fortunately, not all governments support the ACTA. In fact Brazil has created an interesting framework that is the antithesis of ACTA. It is designed to support privacy, encourage usage of Creative Commons copyright(left) protection and have true net neutrality.

Accessibility to Copyrighted Content

Torrent Freak had this article today that discusses how the amount of piracy in Sweeden. In fact, it discusses how it has dropped with the introduction of Spotify. This isn’t the only case where access to material impacts piracy. Hulu (US only) has introduced an 8 day waiting period for new Fox episodes, this has lead to an increase in the amount of pirating of Hell’s Kitchen. If people are going to pirate Hell’s Kitchen, HELL’S KITCHEN!, then why wouldn’t they pirate just about all Fox episodes? Limiting access drives people to pirate.

Why are people willing to use Spotify over other streaming services? For one, it’s free with ads, but people are also able to share. They are able to share legally too. I am able to access music, which my friends on facebook have shared, from friends back in the US. From people that I only talk to on an irregular basis. My friends are able to share with me, where before I would have had to ask them for music and either bought it or download it. Since, I’ve decided to forgo using Apple products I’m limited by what is on Amazon or other music sites. Not all of the songs that my friends listen to are on those services. They like a lot of indie music.

I think that it’s time for copyright holders to wake up to the fact that people don’t really want to illegally acquire music. Sure they’d like to pay as little as possible, but they are willing to have ads, visual or audio, to listen to the music they like. The other good thing about a service like spotify is the fact that on your phone, if you pay, you can access your music there. Access is the important thing. If I’ve bought something once I should be able to access that product on any device in any manner that I want.

The differences in ability to view copyrighted material drives piracy. If copyright holders want to reduce piracy they need to increase accessibility for users. Users are willing to put up with a great deal of things if they are able to easily access content they want. Copyright holders, like Fox, should figure out a way to include online viewership into their rating system. People don’t want to be forced to watch shows when they are on TV. They want to watch shows when they are able to.

EFF’s Tor challenge and Internet Freedom

First of all, no I didn’t participate in the Tor challenge. I don’t feel I can use my computer in this way while I’m doing a lot of work on it for school. However, I think the idea is excellent. I didn’t explain what TOR is did I? Well here’s the EFF website about Tor. TL;DR: basically it provides a way for You, to hide your actual IP address. You have to install a piece of software to access the network. Once you access the network you’re data will bounce around and come out an exit point, which is your “final” IP address. This final address will take the brunt of any legal or illegal activity being conducted on the TOR network. The EFF suggest that you do not run an exit relay out of your home and the Tor project has some recommendations on running an exit point. However, it should be safe to run a middle relay to allow traffic to flow through your home address. The data that flows between middle nodes is encrypted. See the picture below.

EFF representation of the Tor network: from Tor Project

Why is this technology important? This helps with freedom of speech. The US constitution allows free speech and this is an important tool in allowing freedom of speech. Of course like any proxy website, or VPN it can be used for other purposes, as can the ideas of free speech. We may not like what it is being used for, what is being said or why, but it’s still legal. One thing that is noted repeatedly on both the EFF and Tor page is the risk of DCMA take downs and law enforcement attention. Both of these have a chilling affect on freedom of speech.

It seems to me that copyright control and protection may seriously damage a project like this. If all the exit nodes are shut down because of copyright take down notices we lose a valuable tool in preserving our freedom of speech as well as an assumed right to use the internet in the way we feel is best.

Another concern I have about this technology is the obvious potential use by hackers. This tool is going to be used by hackers. It would be foolish for them not to. This of course puts this technology at odds with the wishes of the government to control copyright infringement and prevent hacking of businesses and government agencies. I seriously hope that the US government, and the EU, gives protection to the exit nodes from legal repercussions from hackers using these networks. Used in the right way Tor could be a modern Underground Railroad for dissenters in countries like Libya, Yemen, and Saudi Arabia.