Tag Archives: SOPA

MegaUpload and the DMCA

Posted on by

We’ve recently had a perfect example of the dangers of giving copyright holder more powerful weapons in their war on “piracy.” Megaupload works as a service where a user can upload content and allow other people to download it or share it at a later point in time. A good amount of the material is, in fact, copyrighted. There are versions of Game of Thrones and plenty of other videos. This services has totally legitimate uses though. There are competing services that you can use, something like DropBox or GoogleDocs which works in a slightly different manner. The users is required actively share the files. In Megaupload the uploader doesn’t have to actively share the file it can be accessed by many people.

MegaUpload would be a sure fire target if SOPA or Protect IP gets passed. What would happen is that MegaUpload would effectively be blacklisted from the Internet and cease to exist if they can’t fix the problem within five days. Additionally, any payments they would receive can also be blocked. This of course isn’t anything new, but recently Universal Music decided to use a DMCA take down notice to remove a MegaUpload video from YouTube.

This happens on a regular basis. These companies have programs that look for copyrighted material and then any offending material is issued a take down notice, which YouTube is required by federal law to comply with. There’s just one problem in this case. MegaUpload claims to own all of the copyrights to this song and video. Universal was issuing a false take down notice. As a result MegaUpload is now suing Universal.

What can we take from this? Well, that giving the authority of content control to companies that have an incentive to silence material that is harmful to their business is a bad thing. In this case, we have a company abusing state authorized power to censor a music video about another company. We should expect this type of behavior to continue if these copyright holders are given additional authority to censor the internet.

It appears that not only are record labels abusing their authority, but the DHS had seized a website, Dajaz1.com, for over a year without any sort of recourse. Particularly troubling in this case is that the blog did contain copyrighted material, but it was given to the blogger by the record labels and artists.

As users of the internet we all should be extremely concerned about what is happening on the internet in the name of Copyright. Freedom of culture is something we all enjoy and relish, however actions by Universal and the DHS severely threaten our cultural freedom and ability to have public discourse on the usage of technology. MegaUpload was using famous pop stars to stake a claim that they are a legitimate company. Using a law in an illegal manner was trying to silence that conversation.

Data protection, anonymity and copyright

Posted on by

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

Posted on by

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.

Biggest threat to internet innovation

Posted on by

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.