Protecting the internet

As I mentioned in my blog post from yesterday, the internet is extremely important. We all know that. It’s fun to use it’s become an incredibly important part of our economy and will continue to grow in general importance. In some ways Thomas Friedman is correct in the book the World is Flat, the internet has increased the ability for people all over the world to compete in the same way. However, where he goes wrong is that he assumes that this flattening and economic importance will protect the internet.

Unfortunately this isn’t the case. We, the users of the internet, will have to continually work to protect the internet from special interest groups that seek to control its use. We have seen this in the US with SOPA/PIPA and with ACTA in Europe (And now Trans Pacific Partnership). A small group of companies in an industry that isn’t really able to innovate is attempting to dominate the manner in which the internet is being used. Unfortunately, despite these efforts, there are already more agreements in the works. The most recent in the US is a bill being pushed by our dear friend Lamar Smith from Texas. Yup, same guy that did SOPA he’s pushing a law that will require all ISPs to collect data on their users and store it for over 6 months. In addition websites are going to be required to collect similar data. The goal of the bill is to prevent child pornography.

This type of law is also being considered in Canada and there was a recent protest where a twitter user was pretending to be Vic Toews. This has rather upset Mr. Toews an MP there. However, these bills essentially destroy any sort of privacy on the internet. In many cases web companies simply hand over data to law enforcement agencies and governments without any need for a warrant or a court order. Twitter is one of the few companies that puts up a fight about user data. As users we really don’t know how often our data is being handed over to any sort of governmental organization.

In addition to these individual laws and treaties China and Russia want the UN to become a governing body over the internet. I think this is a very interesting idea, however with the two countries that are pushing this change it also has cause for concern. Both of these countries really work to control the access of information for their respective peoples. A treaty at this level may make it more difficult for individual country’s industries really impact laws relating to the internet and freedom. I am going to be watching this very carefully.

As users we need to be aware of these sorts of developments and make sure that we are active in protecting the thing we all love and use on a regular basis. The internet.

Did yesterday’s internet black out save the internet?

I’ve seen a lot of commentary about how the web may have been saved because of the internet’s “abuse of power.” How parts of the internet shut down for a day. I’m sure this impacted a great deal of people, may have actually hurt our economy a little bit. However, one day of action won’t save the internet.

I’ll agree it made a huge impact as support for SOPA/PIPA has plummeted. Yes, this round of attack by the MPAA and RIAA may have been twarted, but this is just the beginning of the fight for the internet. Ars Technica, has an excellent write up for a plan for how to address some of the concerns of copyright holders in a much better fashion. A manner which would not destroy the internet like SOPA/PIPA.

However, I think that this is a case of industrial policy legislation that is picking winners. In several blogs and posts at the Urban Times, I have written in favor of using some policies to enact changes of behavior. However, in these cases it’s because a novel technology isn’t being adopted that leads to benefits for the social good. In the case of copyright holders, these policies aren’t for the common good, but are being put into place to protect an aging business model that is not innovative. The policies I recommend are to help innovators compete against the status quo.

Data has shown that increasing the availability or decreasing the availability impacts the rate of piracy for television shows. Which indicates to me, policies should be striving to push companies to increase access to copyrighted material, not to go after pirating website. The responsibility for dealing with pirates should be with the copyright holder. They have the means to actually reduce piracy through reducing the amount of licensing fees and increasing accessibility.

We should be pushing our government leaders to put initiatives in places that require massive concessions from copyright holders, if they abuse their copyright position, including losing that copyright. Subscription services like Spotify and Pandora allow users to get access to content either free, with ads, or for a small price. However, these services don’t allow users to access everything. This leads to frustration. If I was able to listen to whatever on Spotify, there’d be no reason to pirate.

What does this mean? Well, we can celebrate the change in positions of congressional members, however this isn’t over yet. OPEN act may be the next step in this battle. Free internet should be our goal, free as in speech not beer. However, people are willing to pay and I think in this case, business models need to catch up with technology.

Which bill is worse NDAA or SOPA?

I was posed this interesting question by my friend Jurriën, which bill is worse the most recent NDAA or SOPA. What is the NDAA? Well it’s a yearly bill called the National Defense Authorization Act, however there were some incredibly important changes to this years bill. This years NDAA turned the United States into a battle field and gave the US government the right to arrest anyone for any reason. It also includes provisions for allowing the indefinite detention of any US citizen. Something like this has already occurred with the PATRIOT Act, which allowed the President to go after so called “enemy combatants.” Most of these prisoners are currently being held in Guantanamo Bay, Cuba.

What does this bill mean to you and me? Well, the basic argument is if you’re doing nothing wrong it won’t impact you. However, I see in this bill the potential to return to McCarthyism at it’s worst. Only instead of Communists we’ll be seeing terrorists everywhere. Likely it could eventually lead to oppression of anyone that appears to be Arabic, Pakistani, Afghan, or similar skin tone. This type of power is ripe for abuse and might be extended to fight the “War on Drugs” as many of those groups are essentially terrorists in Mexico.

What about SOPA? I’ve written about that fairly extensively, but tomorrow we’re going to get to see a preview of what life might be like under SOPA. Tomorrow Reddit, Wikipedia, imgur and many other smaller websites are going to black out all of their content. Nothing will be readable as a protest against the law. In addtion, the Senate counter part PIPA (Protect IP act) is up for a hearing on Jan 24 so be sure to contact your Senator

Both laws I think are going to be abused by the US government and by agencies that are given additional powers. In many ways they are similar in that they restrict our Constitutional Rights as Americans. We will lose our 6th Amendment right to a trial by jury and our 8th Amendment Rights, which prohibits excessive, cruel and unusual punishments. Based on this, Chris Hedges has sued Obama over the passing of this bill. This might have a good chance of succeeding in overturning the law.

SOPA/PIPA aren’t on the books yet. I think that we can prevent these two from passing and will for a time save the internet. It will take a lot of continual effort and we will have to remain vigilant against surprise sessions where they attempt to pass the laws.

I worry that the NDAA will not be revoked in its current form and will be used to dramatically harm US citizens. Additionally, I fear any attempt to link SOPA/PIPA to national defense which would surely pass. So at this point, NDAA is worse only because it has passed. Once SOPA/PIPA pass, the three combined could be a nightmare for us, but a dream come true for dictators around the world. What could we say to future Saddam’s when they are able to point to US law and say, you can do it why can’t we?

Data protection, anonymity and copyright

I talk a great deal on this blog about data issues, privacy and ownership, anonymity and copyright, however is there a clear connection between them? Should we care about who has access to our data, who we are and control over our access to data?

I think that these issues are so connected that we need to do something about how they are managed at a federal level. Currently, it’s rather easy for governments to request data from internet sites. Some times they require warrants or court orders other times the companies simply hand over the data. Savvy users understand how their data is collected and used by companies. I’ll be the first to admit that I’m learning about this as I’m going. It’s not easy because some times it’s really inconvenient to really protect your data. The more sites that are connected together the more likely one of your accounts are to be hacked. Linking sites also creates other problems. Specifically Facebook and Google. Twitter isn’t as bad, but it easily could be.

Why are Facebook and Google bad though? First Facebook is the worst by far. Both Zuckerbergs have made statements proclaiming privacy a bad thing.We can see this erosion with the creation of Facebook’s OpenGraph and seamless information sharing. We’ve all see the increase in the amount of information that our friends are sharing. Such as Spotify and articles they’ve read. Which now no longer click through, but end up going to some app from that company. All of this information is being stored and sold to customers with your name on it. Effectively you’ve lost your ability to view websites freely without it being stored on multiple servers by multiple companies at the same time.
Google comes in a close second with their privacy problems. They aren’t any better with Google+ as they require names at this time. We also don’t know what Google does with the information that you give them when you link accounts together. By giving access to Google when you sign into another website Google is learning more about you which will likely be used to adjust your filter bubble.

Without anonymity or at least pseudonymity it’s significantly more difficult to control access to your data. Putting a buffer between you and the people that are interested in learning about you as a person can protect you from a lot of bad people. However, whenever there are discussions about anonymity or pseudonyms some one almost always makes the argument that it will increase the safety for child molesters or terrorists.

The Copyright industry is one of the most vocal advocates of this tactic. In fact, this is one of the arguments being used for SOPA. They argue that if you don’t have anything to hide then you have nothing to worry about. Well, I don’t buy that argument. People have privacy fences for a reason around their yard. Why not do the same thing for your data? Being anonymous doesn’t mean your bad, it just means your being safe.

Anonymity makes it more difficult for copyright holders to come after people who download movies without buying the movie. They want to know if your downloading it regardless of the fact that you might actually own the movie in some other physical medium and are using the digital copy as a back up. They also don’t really care if you go out and buy the movie after watching it. In fact the Swiss government came out and said that buying a movie or song after downloading is extremely common.

Based on these three points, I believe that everyone should be pushing leaders to increase the ability for users to be anonymous on the internet. This will protect users data from identity theft, allow users better control over their data and decrease the impact of the filter bubble. We must accept the fact that people may use the freedom in unethical ways. However, this doesn’t mean that it’s unethical for people to be anonymous online and doesn’t mean that they are unethical. It means that we need to define clear laws and procedures to deal with unethical or illegal activities in these systems. Without these guidelines we are likely to have no control over our data.

Innovation and government regulation

Yesterday during a short twitter discussion the topic of US governmental policies killing new business starts came up. With the 140 characters I wasn’t able to property address the issue that was raised. It is extremely clear that SOPA is an innovation killer, because it effectively requires everyone to have a copyright lawyer on staff at the start of any sort of web company. If you have pictures, video, commentary or whatever on your site you’ll possibly be the target of some copyright holder. This policy isn’t in place and appears, for the moment, to be killed. I expect this law to be resurrected in a year or so. Despite the face that the EU adopted a resolution against SOPA.

Let’s look beyond SOPA though, what other policies are in place that seem to prevent job growth? One of the biggest ones right now is tax levels for people making $250,000 or more. Politifact did an analysis of Congressman Boehner’s claim that taxing millionaires hurts small businesses and prevents hiring. They found this statement to be False. Of course this does depend on the definition of a small business, which Politifact expresses is difficult to define. One metric that I’m aware of is based off the annual sales, where sales over $500,000/year moves you out of the small business area. This may not be the best amount, but let’s say your company has sales of $3,000,000 a year and has enough profit to pay you $1,000,000 of that a year. This tells me that you aren’t reinvesting and trying to continue to grow your firm, probably aren’t paying your employees very well. Additionally, at this amount of sales it is likely that as an entrepreneur you’ve had to get capital investment in one of several ways, loans or from venture capital. A bank wouldn’t care if you were getting paid a million a year, but there’s no way a VC would allow you to pay yourself that if they weren’t getting a good size chunk of money too and you were still planning on reinvesting in the future enough to get a huge IPO. Now, if you’ve built this company from the ground up to this level on your own, then you aren’t paying yourself that kind of money. You would have to be re-investing that money back into the firm to get new equipment hiring the best people, etc.

Another way for companies to get started is through spin-off from another company, bootstrapping themselves to get going or spinning-out of a university. I have an article that will come out soon in the Urban times that addresses some policies that can help with the creation of Spin-outs and start-ups. In the US, we still have the best policies for this. The EU as a collective and European countries are modeling many of their intellectual property laws and funding methods off of US policies. A few examples are a very similar law to the Dole-Bayh law from the 80’s to allow universities to own IP and to give it to their employees if they wish. The creation of technology incubators – this was a truly American innovation, innovation prize contests and national seed funds. The continual reinvention of these policies in the US allows us to create more new companies than European counterparts from a variety of sources.

Are there other policies that hurt the creation of companies? Yes, sure. I’m sure there are some pollution regulations that negatively impact the survival rate of firms. However, from a purely economic perspective this regulation is forcing the company to internalize the cost of the negative externality. Which the company should innovate to reduce the amount of pollution they are creating or buy equipment that reduces their costs in other ways. Innovation to reduce pollution should reduce the cost of raw materials, because they are being used more efficiently and in lower quantities. Every company wants to be able to reduce the amount of raw materials they use. In the next few years we will see greener companies, not because they have a desire to be sustainable, but because it’s more profitable. The regulations the EPA puts into place requires companies to internalize negative externalities, which from both a evolutionary and neo-classical economic perspective is expected from the market and when the market fails then and only then the government needs to step in.

There will be regulations that are industry specific that may slow the amount of innovation and creation of firms, but some of that is surely death by a thousand paper cuts (too much paper work) and the inability to figure out a way to acquire enough funds to get the company going. Compared to European countries the US is the leader for ease of firm creation and the EU is still playing catch up in that regard.