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4.10.2010 www.kasvi.org 1 Whose Immaterial Economy? Jyrki J.J. Kasvi

Copyright economy updated

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An updated version of my presentation concerning the challenges and future of copyright industry.

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Page 1: Copyright economy updated

4.10.2010 www.kasvi.org 1

Whose

Immaterial Economy?

Jyrki J.J. Kasvi

Page 2: Copyright economy updated

4.10.2010 www.kasvi.org 2

Information society civilization

InformationprocessingPre-languageSpeechWritingPrinting pressICT technology

Availableinformation~ 107 bits~ 109 bits~ 1011 bits~ 1017 bits~ 1025 bits

Printing press gave birth to copyright as we know it: To protect content providers against distributors

ICT tehcnology is going to need a corresponding system: But to protect whom against whom?

CivilizationlevelPackTribes/villagesTowns/citiesIndustrial Networking

Page 3: Copyright economy updated

4.10.2010 www.kasvi.org 3

Anne’s act 1709

In 1709 the first actual copyright law was enacted in United Kingdom – Defined the three interest groups whose relationships copyright

laws still governs: content provider, publisher and consumer

– Publishers had no right to limit the way consumers use the content they purchase, DRM would have been illegal in 1709.

– It took 300 years from Gutenberg’s invention to get a law

The principles of Anne’s act worked for almost 300 years!– Requires small copying costs and centralised control

– In digital world the copying costs are zero and each and every computer is a potential printing press

– Now the change happens much faster than 300-400 years ago.

Page 4: Copyright economy updated

4.10.2010 www.kasvi.org 4

Marketss

Balance?

Contentproviders

PublishersConsumers

LegislationLegislation is supposed to protect weaker parties...

Page 5: Copyright economy updated

4.10.2010 www.kasvi.org 5

Challenge and opportunity

Printing press created the basis for copyright system1. Making of new copies of content is cheap2. It is possible to centrally supervise and control copying

Newspapers and popular culture were born as a result– But the profession of scribes was wiped out

Digital technology requires new rules1. It costs nothing to copy, edit and distribute content2. It is impossible to centrally supervise or control copying

What new cultural phenomena digital technology makes possible?

– Social media, crowdsourcing, …– Rip-n-mix & mash-up– ???

Page 6: Copyright economy updated

4.10.2010 www.kasvi.org 6

Goals for a new copyright system

Of these we probably have a wide consensus2. To maximise production and use of content – the

expansion of culture– E.g. the original goal of the patent system was to maximise the

distribution and use of new innovations – expansion of economy

3. To secure livelihood of content makers– What about benefits of media industry shareholders?– Production and marketing services used by content makers are

also under threat

4. To facilitate new forms of content, expression and culture– Crowdsourcing, mash-ups etc. vs. copyright

Of means to achieve these goals we still need to discuss

Page 7: Copyright economy updated

4.10.2010 www.kasvi.org 7

Problematic details

Copyrights of public information– Have been used to limit publication and usage of public information– How to use content created by public cultural institutions and broadcasting

companies? Copyrights in developing countries

– Research and education institutions of developing countries cannot afford the prices of scientific and educational materials

Disabled people’s equal access to information– Content should be transferable to formats accessible to disabled people– DRM should allow blind people’s screen readers to work

Copyrights of software have been forgotten– Economically the most important sector of copyright economy in Finland

The intimate relationship of media industry and law makers– The secrecy of ACTA negotiations have not stopped media industry

lobbyists from being informed (better than politicians or NGO’s)– Consumer and civil rights have been secondary to economic interests

Page 8: Copyright economy updated

4.10.2010 www.kasvi.org 8

”Open legislation”

Page 9: Copyright economy updated

4.10.2010 www.kasvi.org

Supervision and control

The only way to enforce traditional copyrights in digital age is to supervise continuously everybody’s digital communications– Privacy?– Who is responsible for supervision and judgement?

Cutting internet connections is the only working punishment – Freedom of expression?– Who is responsible for enforcing punishments?

Chinese proposal– Install supervision compulsory software on each and every

computer

Who would be watching the watchmen?

Page 10: Copyright economy updated

4.10.2010 www.kasvi.org 10

Hopeless DRM battle

Digital = copyable– You have to open the copy protection for presentation:

the protection cannot be too strong or the devices would become too expensive.

AACS key opens Blu-ray- and HD DVD copy protection– 09 F9 11 02 9D 74 E3 5B D8 41 56 C5 63 56 88 C0 – Google: 235.000 hits, Digg

Some other solution is needed!

Page 11: Copyright economy updated

4.10.2010 www.kasvi.org

Cloud computing politics

Applications, content and computing are becoming cloud computing services– Content providers must become service providers

Kindle, iPad etc. Is doing the same to books and newspapers as Spotify did to music– TV channels may die but IP television services grow

The tension between the rights of content providers, publishers and customers stays– Amazon removed 1984 from their clients’ Kindles

What is going to happen to public libraries?– Publishers would be more than happy to see libraries dwindle

Page 12: Copyright economy updated

4.10.2010 www.kasvi.org 12

Difficult near future

Media industry is going through a painful structural change– CD and DVD, even mp3 and mpeg are going to follow LP and C to

oblivion

The valid price of content and distribution = zero– Not for piratism but because someone always offers content for a

cheaper price– Content becomes service

Amateur media challenges industrial media– Distributed and shared content production

– People trust other people (“it was in a blog”)

Commercial news media are facing a challenge to survive– The role of public broadcasting and media increases

Page 13: Copyright economy updated

4.10.2010 www.kasvi.org 13Wikimedia Commons

Lost business models

Page 14: Copyright economy updated

4.10.2010 www.kasvi.org 14

Productivity leap for media:

Only those who jump farther than the others survive.

Is Spotify media's ATM?

Wikimedia Commons

Page 15: Copyright economy updated

4.10.2010 www.kasvi.org 15Wikimedia Commons

”The colour doesn't matter as long as it is black.”

Page 16: Copyright economy updated

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Possibilities for survival

Tailoring– Media are still model T Fords

• When do I get Helsingin Sanomat for Laajalahti to my mail bos with extra politics and without sports?

Service– Media consumers still have to search for their own content

and news and entertainment from various sources • Why can I have a list of T shirt web stores but not my news?

Open public data– Utilising and mashing up of public data to create new

content and services. Reliability

– In the web, reliability is your most valuable asset and • ”In the web no-one knows you are a dog.” The New Yorker, page 61 of July 5, 1993

Page 17: Copyright economy updated

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Sukupuolten välinen digikuilu?

Discussion

U.S. Army Photo