Continued fall out from MegaUpload arrests

A few days ago I discussed some of the actions taken by the hacker community and the impression that the MegaUpload arrests were related to SOPA. After some time we see that this arrest didn’t happen over night, you could argue the announcement and the timing was done poorly. However, I think that we should be paying attention to the ramifications of these arrests. Torrent Freak is reporting that there has been a massive response from the Cyberlocker companies. These cyberlockers were similar to MegaUpload in that a user would be able to upload a song and then anyone would be able to download it or stream the video. Now these companies are removing the search capabilities from their website and are restricting users to only their files.

While, what MegaUpload may have done may be illegal, the impact of the arrests is a foretelling of the impact of a law like SOPA. Internet companies argued that SOPA would be a job killing bill that it would kill innovation and break the internet. I think that this action clearly demonstrations that they are correct. For instance, Torrent Freak mentioned that several companies are shutting their doors and others are changing their services. Since it’s space based service, it is likely that each of these companies only has a few employees. However, they make a good chunk of change. MegaUpload was making several million and their competitors were likely making millions a month.

All of that money is going to be gone by next billing cycle. Not a single one of those companies where users were paying a premium will pay them another dime. Ad revenue will dry up, MegaUpload made almost a million alone since 2007 on ads. All of this money was getting put back into the economy through the purchase of servers, software and other equipment. It allows employees to buy stuff and was making a positive contribution to the economy.

From the different companies there was obviously innovation occurring. MegaUpload never allowed duplicates on its servers and when a duplicate was uploaded it would find another version of it and supply the link to the end user. Infringing content would just have the link removed, not the actual content. This would make searching for the real version difficult for copyright holders as it would be a game of wack the mole where the content would appear here, then with another link and so forth.

What other solutions could have been reached? I think there’s plenty of space here for further innovation for a business model. As users are using sites like this for personal storage and for video streaming, users are paying for content as well as clicking and viewing ads. Clearly there should be a way for the content owners to make money off of it as well. However, I have yet to read an article or a comment about the content industry approaching any of these companies, other than through DMCA, about working to pay some sort of royalty or set up a license agreement.

I think that a way to bring the balance back from the power being exclusively in the hands of the RIAA and MPAA (I’m just going to type RIAA from here on out), companies like Pandora.com, Spotify, Last.FM, MegaUpload (or any of its competitors), Google/YouTube, Vemeo and anyone else that uses licensed content should form their own consortium. Let’s just call it Content Users and Managers of America or CUMA for sure (I couldn’t think of anything really witty there (it doesn’t have to be just of America)). CUMA would provide a counter balance to the RIAA in that it provides equal footing and a way to combine the might of the end users. There are demands for these products, but the products simply do not demand the price premium they used to demand. Since these products aren’t able to demand the premium and the RIAA thinks that it should, they are overcharging as there are freely available alternatives which people flock to. Essentially, the RIAA needs to realize that for the websites allowing people to access the are getting paid pennies (if that) for a single view on a website. So for most sites, they can make more money if they don’t pay licensing fees. Lowering licensing fees is something that CUMA would be able to work for, to put it inline with expected ad revenue. This would allow for broader innovation in the market and reduced piracy.

It’s obvious from the amount of money that MegaUpload made that people are willing to pay to be able to watch as much content as they can when they want it. I feel like a broken record here (ha HA!), but people are willing to pay for content if it’s easily accessible.

I expect additional fall out from this. If SOPA or some similar style bill ever passes, expect this type of reaction to occur in other segments of the online industry. Online content is one of the places with a great deal of innovation and killing it would be a shame when there are possible solutions to this problem without resorting to industrial policy making and picking winners.

Update: I just saw this article Looks like MegaUpload has figured out a way to allow musicians to make money off of free downloads for original works through their site. This is some seriously awesome innovation.

What is the right to assemble online?

Sorry for the long delay in posts. I’ve been a little busy and I’ve had some trouble coming up with topics as well. So, if there are any topics you’d like to see written about feel free to shoot me a message.

In the US we have an amendment to our constitution which ensures our right to assemble. This amendment is important because it allows us to protest governmental action and activities we do not like. We do not always like the way that this right is being expressed, such as the Westboro Baptist Church protesting fallen soldiers, gay suicides and a range of other things. It also protests our right to counter protest the WBC.

In the case of a protest over a company, it’s possible to protest in front of their headquarters or in front of individual branches such as Bank of America. In many ways these tactics are effective because it drives media attention do to it’s location. If someone is protesting a bank in small town America, such as my home town, Grove City, PA no one is going to care. You might get a piece written about it in the Allied but it’s unlikely to attract the attention of the Pittsburgh Post Gazette which is only 60 miles south. Even if some how it did make the news in Pittsburgh, it’s unlikely to remain in the news, which that’s something a protest in Pittsburgh would actually be able to do.

Why does this matter? Well, for a company like Amazon.com much of it’s physical locations are in small town America. They don’t have large presences in many major cities. How do you effectively protest a large internet based company? How do you protest a company when the people that want to do the protesting are scattered throughout the world?

In the past I’ve written about LulzSec and Anonymous, these groups still operate and have had some interesting ideas about how to protest. The first is what is called a Denial of Service (DoS) attack, where a company’s website is overwhelmed with requests for access to the site and it kills the server. This would be the physical equivalent of creating a lined of linked arms across the doorway to the company’s headquarters or branch. Typically, these sort of attacks don’t last very long because IT departments have become very good at finding the sources of these attacks and stopping them.

It is not possible to respond by moving across the street to continue protesting where people to see you. It is also not possible to post ads in the area as a form of protest. However, it is possible to buy ads on Google or other such sites that will display something if you type Bank of America, however, I’m not sure if this is effective or not.

Another type of protest employed is the internet petition. I’ve signed plenty of them, but it’s fairly obvious that these are as worth as much as the paper their printed on (which is to say none). These really just make you feel better, without much work.

At this point, I think that when it has come to massive protests online, Reddit has created the blueprint. Redditors have worked extremely hard to protest SOPA. This has included call your senator day, getting websites to agree to an internet blackout day, where sites will completely black out all content. This is a representation of the impact of censorship that SOPA will enact.

However, this type of protest isn’t really possible for all types of government or private business action. While the denial of service attacks aren’t very effective, they do raise awareness and have lead to other types of attacks, such as hacking and the release of data that users thought was secure. Despite the fact that it is theft of data, these actions have done more to change company behavior than any other type of internet based protests.

Is that the future of assembly online? I don’t know. It’s easy to block websites that act as a rallying point, so it will be important for people to actually meet to do their protesting as protesting on the internet doesn’t really have the same impact, unless something big gets leaked. We do need to define what is acceptable as a society for online protesting. DoS might be a way to allow protests.

SOPA hearing today

For all of those interested in protecting the Internet today is the last day to try to prevent congress from passing SOPA. This law, would censor the internet. There have been a lot of people talking about this law on both sides of the argument. Chris Dodd president of the RIAA is pushing heavily for this law. He argues that if China has the same ability to control content in China, then the US should have the exact same authority. In a previous blog I argue that this is the biggest killer to internet innovation. Effectively this would create a Great FireWall of the US.

Opponents of the law have started a censorship the internet campaign. I tweeted one of these yesterday. Effectively it blocked out parts of your writing in simulation of the final impact of the law. In addition to these campaigns a few other big hitters have come out against the law, including the Writers’ Guild of America. This group understands that copyright laws shouldn’t dictate the future of the internet and it’s openness. In addition yesterday the EFF posted an open letter from internet leaders arguing that SOPA would crush innovation. I strongly suggest reading this letter. It’s written by the people that created things like IPv6. These people know what they are talking about.

We users have had a blessing in disguise with the MegaUpload and Universal Music Company DMCA Take down issue. Effectively, they took down legal songs using a copyright provisions in addition to taking down videos ABOUT the discussion.

So what are some of the key problems with this bill? It requires DNS level blocking. Which could potentially break the internet. It takes down entire domains if there is a single alleged copyrighted material online. It can block payment to sites through requiring Master Card and Visa to shut down payment for the site. All of these have to happen within Five DAYS. Nothing gets done in five days in any business.

There are additional problems with these laws and our foreign policy. Recently Hilary Clinton gave an extensive speech on net freedom and how repressive regimes are censoring the internet and killing free speech. So, our international rhetoric is completely out of line with what we’re doing internally. Furthermore, this is going to create problems with the Organization for Economic Cooperation and Development (OECD) has decided to institute a policy framework which is effectively the opposite that everything SOPA stands for. Finally, this has a negative impact with the #NoDisconnect policy that the EU has recently pushed for.

If you want to keep up to date with the comments being discussed in the hearing today. Follow @EFFLive as they are tweeting comments from congressional leaders about the problems with this law. Additionally, please contact your congressional leaders today (scroll down to the bottom) about this issue.

Watch Live Stream Here: http://www.keepthewebopen.com/sopa

Additional Reading:
Internet Blacklist vs. Constitution – EFF
SOPA and Educators – EFF
Recent SOPA amendments – TechDirt
DC Decided to Regulate Hollywood to prevent innovation – TechDirt

Where good ideas come from

Last year I bought a book after listening to a segment from NPR that my dad had sent. In it they interviewed to different authors, Kevin Kelly and Steven Johnson, I ended up getting both books. To my dismay the Kevin Kelly book, What technology wants,  was in my opinion painting a technology deterministic world that ultimately was unrealistic and absurd. I stopped reading it and never finished it, which is something I almost never do (I would equate him with Clay Shirky in being overly optimistic about the role of technology).

The second author’s book was significantly better. It’s called Where Good Ideas Come From and it has some really great ways to generate new ideas and how he believes ideas are formed. Below is a short talk of his animated by RSA animation.

The short and simple is that I completely buy his approach to generating new ideas. In his book he discusses using a piece of software (DEVONthink) while doing almost all of his reading . I’ve tired to do this with a similar program in windows called Evernote, but it’s difficult to remember to do it. I feel I need to get better at it. I had a great idea for a blog two days ago, never wrote it down and totally forgot what it was. Helaas pinda kaas (Dutch for “too bad peanut butter”). In some way the book is a big ad for DEVONthink, but that’s not really the important part. The important thing is how these different ideas come together and lead to new and fully formed ideas. A tool like DEVONthink or Evernote (There’s also OneNote as part of MS office) allow you to increase your ability to find things and create new ideas.

I effectively use websites like Reddit, Facebook, Twitter and the books I read in this fashion. Many of my blog posts come about from the different news stories I read to which I put my own spin on them and add additional commentary. Typically by combing ideas from multiple different sources. I love when my friends point me to new sources of information or stories I’d be interested in. One of my blogs, What is the value of a patent, was written because someone sent me the “When Patents attack” story by This American life. I was able to combine the ideas presented in that story with my knowledge of patents that I’ve learned at TU/e to write an interesting blog that’s more than either story.

Yes, my last two blogs have basically be book reviews. However, I figured that as a public service announcement to let people know how I come up with my topics. I think it’s important that other people try to create their own content and share what you know. If you don’t feel comfortable writing, shoot me an idea and let’s see what we can make of it.

Internet and Social Media books: A comparison between Lessig and Shirky

Recently I’ve read two books related to the internet and to some extent social media. The first book I’ve mentioned and quoted repeatedly, Code 2.0 by Lawrence Lessig. The second is a book I just finished called Cognitive Surplus by Clay Shirky which is about how as the internet has evolved and grown we have been able to create our own content instead of simply being passive consumers.

Despite the fact that Code 2.0 was originally written in 1999 and then updated in 2006 and Surplus was written in 2010 I feel that Code is still more relevant. Some of this can be attributed to the approach of the authors. In both cases the authors discuss specific websites and how they impact social interaction between different actors. As side from arguing that the free time and the increased ability to create, Shirky focuses on social connections and ignores other considerations related to content creation. He oversimplifies the skills required to create new content and ignores vested interests ability to prevent content creation.

Lessig on the other hand, creates a framework where it is possible to analyze the interactions between the various actors that interact on the internet. He looks at the market forces, social forces, regulatory forces, and social norms that interact with the internet in different ways. In this way Lessig is able to create recommendations to improve the interaction with the various forces acting on the internet. His goal is to create a safe internet that allows privacy, transparency, great places where economic exchanges can happen and required controls to prevent abuse of the internet.

There are some other differences between these books. Shirky reminds me of Thomas Friedman’s the World is Flat. It’s an incredibly optimistic view of the internet. Effectively the author can’t find anything wrong with the social interactions that occur on the internet. He isn’t concerned with the privacy issues with sites like Facebook, hacking issues both white and black hat and censorship at any level. He ignores these issues and looks at the community aspect. Which is fine, but he should at least mention these factors as they can seriously impact the quality of a community that’s being created. Lessig has a much less optimistic outlook and in fact believes that the internet will allow the government unprecedented access to our personal information and control over the information we control.

I think that these two books represent well the different ways that people look at the internet. I personally have a Lessig outlook. This maybe for a few reasons. I’ve read a few of his books, I can be cynical and I don’t have endless optimism for any technology. I think that the internet is an amazing thing. That people are creating more content, but it’s going to take some time before it gets to the point that Shirky is dreaming of. One of my friends over at KBMOD things that within a few years everyone will have a YouTube account the way that everyone has a Facebook account. I’m skeptical of this. I think there’s more time required to be effective at being a YouTuber than being a Facebooker. Which will decrease the number of people that are willing to take up a hobby. Facebook takes about 10 seconds to update, with YouTube you have to feel comfortable in front of a camera or talking over some sort of content. I think it’ll happen over time, but I think there will be something of a U shape of users. I think older generations that have more free time will pick it up.

I think both books have a positive outlook on the internet and social media. They both think that the more connections that happen the more connections that can occur. Overall, I personally think that if you’re interested in the different forces interacting in the internet Lessig’s book is for you. If you’re interested in a rosy outlook on the positive impact of the internet then read Shirky’s book.