net.wars: Harmony, where is thy sting?
by Wendy M Grossman | posted on 18 January 2008
On the Net, John Perry Barlow observed long ago, everything is local and everything is global, but nothing is national. It's one of those pat summations that sometimes is actually right. The EU, in the interests of competing successfully with the very large market that is the US, wants to harmonize the national laws that apply to content online.
They have a point. Today's market practices were created while the intangible products of human ingenuity still had to be fixed in a physical medium. It was logical for the publishers and distributors of said media to carve up the world into national territories. But today anyone trying to, say, put a song in an online store, or create a legal TV download service has to deal with a thicket of national collection societies and licensing authorities.
Where there's a problem there's a consultation document, and so there is in this case: the EU is giving us until February 29 (leap year!) to tell them what we think (PDF)
The biggest flaw in the consultation document is that the authors (who needed a good copy editor) seem to have bought wholesale the 2005 thinking of rightsholders (whom they call "right holders"). Fully a third of the consultation is on digital rights management: should it be interoperable, should there be a dispute resolution process, should SMEs have non-discriminatory access to these systems, should EULAs be easier to read?
Well, sure. But the consultation seems to assume that DRM is a) desirable and b) an endemic practice. We have long argued that it's not desirable; DRM is profoundly anti-consumer. Meanwhile, the industry is clearly fulfilling Naxos founder Klaus Heymann's April 2007 prophecy that DRM would be gone from online music within two years. DRM is far less of an issue now than it was in 2006, when the original consultation was launched. In fact, though, these questions seem to have been written less to aid consumers than to limit the monopoly power of iTunes.
That said, DRM will continue to be embedded in some hardware devices, most especially in the form of HDCP, a form of copy protection being built, invisibly to consumers until it gets in their way, into TV sets and other home video equipment. Unfortunately, because the consultation is focused on "Creative Content Online", such broader uses of DRM aren't included.
However, because of this and because some live streaming services similarly use DRM to prevent consumers from keeping copies of their broadcasts (and probably more will in future as Internet broadcasting becomes more widespread), public interest limitations on how DRM can be used seem like a wise idea. The problem with both DRM and EULAs is that the user has no ability to negotiate terms. The consultation leaves out an important consumer consideration: what should happen to content a consumer pays for and downloads that's protected with DRM if the service that sold it closes down? So far, subscribers lose it all; this is clear.
The questions regarding multi-territory licensing are far more complicated, and I suspect answers to those depend largely on whether you're someone trying to clear rights for reuse, someone trying to protect your control over your latest blockbuster's markets, or someone trying to make a living as a creative person.
The first of those clearly wants to buy one licence rather than dozens. The second wants to sell dozens of licences rather than one (unless it's for a really BIG sum of money).
The third, who is probably part of the "Long Tail" mentioned in the question, may be very suspicious of any regime that turns everything created before 2005 into "back catalogue works" that are subject to a single multi-territory licence. Science fiction authors, for example, have long made significant parts of their income by selling their out-of-print back titles for reprint. An old shot in a photographer's long tail may be of no value for 30 years – until suddenly the subject emerges as a Presidential candidate. Any regime that is adopted must be flexible enough to recognise that copyrighted works have values that fluctuate unpredictably over time.
The final set of questions has to do with the law and piracy.
Should we all follow France's lead and require ISPs to throw users offline if they're caught file-sharing more than three times? We have said all along that the best antidote to unauthorised copying is to make it easy for people to engage in authorised copying. If you knew, for example, that you could reliably watch the latest episode of The Big Bang Theory (if there ever is one) 24 hours after the US broadcast, would you bother chasing around torrent sites looking for a download that might or might not be complete?
Technically, it's nonsense to think that ISPs can reliably distinguish an unauthorised download of copyrighted material from an authorised one; filtering cannot be the answer, no matter how much AT&T wants to kill itself trying. We would also remind the EU of the famed comment of another Old Netizen, John Gilmore: "The Internet perceives censorship as damage, and routes around it."
But of course no consultation can address the real problem, which isn't how to protect copyright online: it's how to encourage creators.
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Wendy M. Grossman’s Web site has an extensive archive of her books, articles, and music, and an archive of all the earlier columns in this series. Readers are welcome to post here, at net.wars home, follow on Twitter or send email to netwars(at) skeptic.demon.co.uk (but please turn off HTML).