The EU goes Net Neutral

If the EU had voted against strong Net Neutrality laws there would have been a serious problem between a few national governments and the supra-government of the EU. A few years ago the Netherlands became the second country in the world to fully support Net Neutral principles. Furthermore, the EU level Telecom and internet lady is Dutch, Neelie Kroes. She’s been very vocal supporting Net Neutral and “Internet Freedom” since I started following her a few years ago.

I’m not really surprised by this law passing. The EU has been under less influence of many companies than the US government. Additionally, net neutrality inherently has more privacy built into the system. It limits the requirements of deep packet inspection – because there’s no shaping based on the content of the packets, just the amount of packets. Ideally, this will mean that there is less capability in the network for deep packet inspection.

This could lead to some difficulties in the differences between US ISPs and EU ISPs. I’m interested in the ramifications of throttling across the different continents. Clearly someone getting content from a company in the EU won’t want it to be throttled in the way that Netflix has been. It could create some legal ambiguity and issues. I’m going to be watching how all of that resolves.

Campaign finance laws and its limits

Today, marked the second time the Supreme Court ruled against setting maximum campaign contributions. First, it was a limit on corporations, now it’s the limit an individual can contribute in a given year. The first ruling is called Citizens United and I was initially very against this ruling because I felt that it would give undo influence to corporations. However, based on the argument Lawrence Lessig provides in “Republic Lost” – that at what point does an arbitrary limit on spending make sense? For example, if I decide to spend a lot of money on ads for a specific candidate through multiple different channels. The problem isn’t that I, as an extremely wealthy person or organization, can spend as much as I want, it’s that there’s an inequality between what You, as a poor pleb, are able to spend. This creates an inequity in the free-ness of speech.

We know that the amount of money a person can raise heavily influences their success rate in the election. This isn’t a surprise as the candidate is able to run more ads and reach a broader audience than the candidate with less money. There’s nothing new to this. Furthermore, the current structure of our media makes it amenable to rich people that spend a lot of money. The limit of $123,000/year/candidate didn’t really impact how much money a wealthy individual actually spent on the elections. Based on this biased news source, the Koch brothers spent over $2 million in more than one state. So, the campaign limits didn’t really work as designed regardless of the limits set. The Supreme Court Ruling basically just aligned the law with reality and didn’t change a whole lot.

Campaign Finance reform is just a band aid over a much greater systemic problem. This is something that Lessig was trying to address in his book, other writers have tried to address through different books, and tech leaders through cruise ships off the coast of San Francisco.

However, I think that this Atlantic image really shows the problem:

The Atlantic: Top .01% income growth

We live in a highly unequal society and the finance rules for campaigns was an attempt to set arbitrary limits to control the influence of the wealthiest Americans. It wasn’t working. The Supreme Court admitted it. Now we need to figure out how to actually fix this extremely difficult problem – that some portions of the population refuse to see as a problem.

I don’t have a solution to this problem. Lessig proposes we use laws to encourage accepting public funds and the creation of that fund through taxes. This would eliminate the influence on donations – which directly or indirectly impact the vote from a person in Congress. Creating something that more effectively through the right incentives and behavior modification is a good start to address the inequality we have in our country.

I think that the growing inequality is hurting our country. When we were much more equal in terms of economic status, we were innovating, for real innovation, not applications. We were developing things to send people to the moon. The greater the separation the top percentages has from the bulk of the population the more risk adverse they’ve become. They aren’t helping push us towards bigger and better things. We need the equality to help drive innovation. That’s the root cause of the problem. Campaign Finance reform was attempting to address a symptom and not even well. Let’s figure out how to address the root cause.

Philanthropy, Private industry, and science

Apparently I’m not too happy with the NYT magazine and their exposés of late. First there was the long article about millenials and how they don’t want to work for the “old guard” which is ahistoric and ignores a great deal of the similarities between the silicon valley of today and the past silicon valleys and other similar environs.

Now they are rushing about in concern over private scientific research. Apparently, it’s a new big problem. It’s neither new nor a problem. First of all some historical context. Scientific labs as we know them today were truly founded through industrial labs. These labs were initially in the dye industry back in Germany in the late 1800s, sure there were university labs, but they weren’t researching as big of thing as the industrial labs started. These labs had problems that couldn’t be solved in academic settings. The universities were training grounds for scientists, but in many cases the scientists actually did their doctoral research at Bayer or a similar type dye company. These dye companies almost all became pharmaceutical companies over time because of the similarity in chemistries between dyes and pharmaceuticals.

This was in the 1800s and really hasn’t abated. I’ve written about Bell Labs and Xerox in the past which are essentially the Bayer equivalent for telecom, semiconductors, and computers.

Science has always been a combination of public, private, and universities. In fact, research that I conducted through my master’s degree has shown that the INTERACTION between private industries and universities produces the most important work (in terms of citations). Our concern should not be if science is going private or not. Our concern should be if they are sharing with the broader scientific community. That’s the biggest risk. It’s one of the biggest problems with industrial scientific research – it never reaches the light of day even if it becomes a product.

Why doesn’t it? Well, simply because it’s better protection for some processes for the technique not to be patented. In the case where something is relatively easy to copy (an iPhone) it’s best to patent because you’re protected them. In the case where it’s very difficult to copy (a nitride layer on an Intel chip) it’s best to hide that process as deep as possible. In fact, it’s best if any technique that would uncover the underlying process to make that nitride layer from reverse engineering destroys the product. For Intel, this is the best result, for the rest of the world, it’s suboptimal as Global Foundries and TSMC will struggle for years to reverse engineer the layer if they ever can. This slows the innovation process as a whole, but we’re willing to suffer this inefficiency because Intel makes some nice chips.

Beyond this debate, the author is upset that someone would want to push scientific research in one direction that might only help white people or rich people. Unfortunately, this is capitalism. We may not like it in basic research that is going to be used to cure diseases, but we tolerate it with Intel so we need to be realistic and tolerate it in this case. Furthermore, I think that the author doesn’t understand that adjacencies in research in diseases will arise and we’ll learn more about all humans, not just them white folks. Ironically, at this point the author calls out a researcher that is working with an Oracle billionaire – that researcher works at Rockefeller University.

What are seen now as seminal research institutions in many cases started out through the very philanthropy the author is upset about. Carnegie Mellon University was the combination of two institutions in Pittsburgh started by an industrialist and a banker. It is one of the most respected research organizations in the world. These men were driven by the same desire to push scientific research as Bill Gates and the other (mostly) men on the list.

Is this a perfect system? Not by a long shot, however in the current political environment scientists are going to take money from whatever source they can. It’s merely practicality. A professor will typically have anywhere between 1-10 grad students. These students at the PhD level will likely be fully funded by the professor. If that professor does not get funding, those kids don’t get to keep working and either have to find another adviser or quit. Here’s the kicker in the case that professor does get money – a large proportion of that funding is taken and allocated to less profitable portions of the organization. At University of Texas, this meant that the EE department was probably funding part of the Chemistry Department. Some departments are like the Football team, while others are like the Swimming team. The swimming team might be winners, but are in a small market.

If we truly wanted change in the way we fund scientific research we need to increase the amount of public investment across multiple institutions. We need to increase funding across multiple types of research fields, specifically focusing on the intersections between academic fields. Push for collaboration between industry and universities as well as collaboration across national boundaries. All of these improve the citation rate and quality of the research. We can even work to partner public funds with private funds – we just need full disclosure.

The problem isn’t privatization. We’ve had an oscillation between really publicly funded (1960-70’s with NASA) and really privately funded. In all cases science has marched on – we just need to make sure it keeps on marching.

Failure of DMCA and TPP is going to be worse

It should come as no surprise to many of my readers that I’m not really a big fan of DMCA. I believe that this law hinders innovation in the arts and sciences. I you are interested in a very nuanced and well articulated argument against Copyright, I suggest you download Lawrence Lessig‘s book Code 2.0 – it’s a law book, but it’s free and interesting. However, I have written about this topic before if you’re like a bit of a synopsis.

The DMCA is a law that requires companies to help copyright holders manage and protect their copyrighted material. This results in something called a Take Down Notice, where the company that receives the take down notice must remove the offending material. In many cases the copyright holders are requiring companies like Google to create tools to allow them to automatically search for offending material.

Growing number of Take Down requests

Growing number of Take Down requests accessed 1/5/2014

For a growing company like Twitch.TV which streams live video game broadcasts and services several hundred thousand viewers at once, may cripple them in the future. According to a recent George Mason University study, the DMCA take down notice process has been a complete failure. The law was never intended to function in the manner that it has been.

The take down notice was designed as a stop gap measure and compromise between copyright holders and the new technologists on the web. The DMCA was passed in 1998, most of the internet that we know and love didn’t exist then. It was likely that only a few people had even started using Google when the law was passed, YouTube was nothing more than a pipe dream, Napster and sites like it were the major driving force for this law.

Over the past few years we’ve had several attempts to expand on the DMCA and make matters significantly more restrictive on the Internet. For example we had the SOPA/PIPA, CISPA laws that the internet killed with a blackout. The blackout is an example of what Rebecca MacKinnon argued in her book “Consent of the Networked” where law makers need to look at the interconnectedness of the world and how these laws reach beyond our boarders and impact the broader world.

Unfortunately, these types of laws aren’t dead and DMCA isn’t going away despite what GMU recommends. Currently TPP is working it’s way through the “Fast Track Process” (fast track essentially allows the President to enter into trade agreements powers not authorized by the Constitution) and if it is successful there are copyright provisions that are very damaging for both Copyright Law and Patents. The copyright provisions are stronger than DMCA, similar to SOPA, and would force all signers to follow the rule of the trade agreement over their own established laws, including the US. If you are interested in reading TPP here’s the full agreement for download at Wikileaks.

What can we do to prevent TPP from making our copyright lives worse? Well, it appears there’s limited things we can do. Of course you can contact your representatives, however, Darrel Issa was already refused to see the agreement. However, more interest from the general population can only be a good thing. We’re going to have elections this year in the US, so it’s a good idea to get people thinking about this trade agreement now and stop it before it’s ratified.

Inequality, is the attention going to drive change?

In the last few weeks there has been a huge amount of focus on inequality. The attention has been riding a bit of roller coaster since the Great Recession started in 2008 when the focus was on Occupy Wallstreet and the inequality because of the action of the bankers. However, Elizabeth Warren began to really shift the conversation away from just inequality to the total system that enables the inequality. In fact, she started to argue that our minimum wage wasn’t keeping up with the rate of productivity of the economic system. As I argued in my piece on Minimum wage there’s not much impact on local jobs comparatively to the theories that minimum wage increases would dramatically increase unemployment.

However, Wal-Mart and McDonald’s brought the conversation back to the fore through the food drive for Wal-Mart employees that couldn’t afford food for Thanksgiving. According to many theories of efficiency to maximize profit Wal-mart must continually drive lower costs through less employees doing more. However, there’s been some negative repercussions to this beyond the extremely low salaries for the majority of employees, it’s also impacted the stocking of shelves which can reduce sales. Wal-Mart’s salaries and behaviors have caught the attention of professors at Harvard, recently there was an HBR Blog post about Wal-mart’s food drive – I strongly suggest reading that article. It provides great perspective about the impact of low salaries. Essentially, if the bulk of Wal-Mart employees work full time at $7.25 per hour they are well below poverty line, which means that these employees would end up getting food stamps. Employees with a family of 4 need to make at least $15/$16 per hour to be above the poverty line. That gap of $7.75 that provides food stamps and medicare for these employees. The author is arguing that these government benefits aren’t purely entitlements for minimum wage workers, but also entitlements for the companies as well.

Of course HBR isn’t the only place arguing that inequality is a serious problem. Paul Krugman, the Pope, and the recent article in the Guardian (that I wrote about in Taking the Long View) are as well. Paul Krugman arguing this isn’t exactly surprising, he’s been arguing that inequity and the result of the recession has had massive negative impact on the economy. The long term under employment of workers is continuing to cause damage to our economy.

The real question is will this conversation actually drive any change? Will we see any change in policy? There has been some recent shifts in the republican perspective of the budget. Which may actually relax the demands on cutting unemployment and other “entitlements.”  Studies have shown that every dollar spent on unemployment adds about $1.64 into the economy. So this is something that will likely have a positive impact on the economy, if we do some different thinking about what we’re spending money on. That being said, I’m very skeptical that in our current state of politics that we’ll see any serious change in how to treat economic inequity in terms of changes in tax policy which can reduce inequality.

I think that at this point it would require a serious popular swing in opinion to drive the change through the elections. In most states that are negatively impacted by inequality, this is an unlikely occurrence as they are republican strongholds.

What can we do about inequality? Well, if you’re an employer work to make sure you pay fair wages. As a consumer we can make choices to buy products at locations that provider higher wages and access to benefits – we can also chose to boycott companies that do not pay a living wage. As I explained in my article about health costs, proper healthcare reduces quality of life and reduces inequality. As a employee of a company that pays low wages, you can work to ensure all employees that work for you receive a living wage through salary increases or other support. This won’t drive systemic changes though and if we want those we’ll have to work through contact our political leaders to drive change. Without these choices we will not see changes and will continue to have inequality. This inequality will likely only get worse over the next several years.