Archive for the ‘Copyright’ Category

Exemption for jailbreaking shows, again, that the DMCA works!

Wednesday, July 28th, 2010

The Librarian of Congress and the Register of Copyright conducted another thorough review of requested exemptions to the DMCA and issued six new well-reasoned exemptions. ACT believes the exemptions issued demonstrate the flexibility of the DMCA to adequately protect copyright owners, provide incentives for new innovation, and enable consumers and innovators to utilize and enjoy copyrighted works.

The Librarian of Congress concluded the triennial rulemaking process and issued six exemptions to the DMCA’s prohibition on circumvention of technologies that control access to copyrighted works. Six classes of works were determined to be exempt- in other words, copyright users of these works can circumvent access controls of copyrighted works to make non-infringing uses.

The Librarian, upon the recommendation of the Register of Copyrights, has issued exemptions in each rulemaking since the enactment of the DMCA. These exemptions impacted only a small number of copyright users and went relatively unnoticed. However, a new exemption was added to the list yesterday and it had the tech world buzzing.

Owners of smartphones, basically iPhones, may now circumvent or “jailbreak” the access controls to the firmware in order to add and run interoperable third-party applications.

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ACT Member Peter Carnes Storms the House!

Thursday, July 22nd, 2010

CT member Peter Carnes (CEO of Traffax, Inc.) testified before of the House Committee on Small Business today about “The Impact of Intellectual Property on Entrepreneurship and Job Creation”. Peter shared the stage with a really diverse group of IP owners – from ABRO, which has problems protecting its trademarks, to Rick Carnes, a songwriter who has written songs for Reba McEntire and Garth Brooks. The President of the Business Software Alliance and the CEO of t3 (they sell mainframe software) rounded out the mix.

The Committee has Peter’s oral testimony up on YouTube here, but for those of you who want to read the full version, here’s a link.

Overall, the witnesses really hammered on the message that IP was a key way for America to move forward, and that it wasn’t going to happen without some help from the government. Holleyman and Rick Carnes (Songwriter’s Guild) pointed out that the BRIC nations are really doing a number on US copyright holders – stealing software, music and movies as fast as we can make them. Peter talked about the need to get the USPTO fully funded, and to get the backlog of patents dealt with so that businesses that file for patents aren’t hanging out in the wind for nearly 2 years after their patent has been published.

Peter also pointed out that adding IP to international trade agreements had an impact not just on the macro level, but in day to day business as well. He noted that he had been dealing with China for years, and he has begun to notice that IP issues have now become “part of the narrative” of business negotiations, when before they weren’t even an afterthought.

On patents, Congressman Luetkemeyer referenced a constituent of his who said  ‘filing a patent lets your competitors see what you are doing, and then they just tweak it to work around, so why bother?’ Peter noted that this is the heart of the patent system; it drives innovation forward because by teaching others how you do things, they come up with ways to jump ahead. In exchange for sharing the secret of  how my invention works, I get a time restricted monopoly on my design.  I share so that I can get (temporary) exclusivity. But this delicate balance is being thrown out of whack by a patent system that takes far too long between publishing and granting. During that nearly 2 year gap of time the patent filer can do next to nothing to protect his idea.

We agree with Peter that something needs to be done to get USPTO on the right track of eliminating the patent backlog; in support of this, ACT has asked Congress to give the USPTO access to all the money it collects for FY2010 during FY2010, rather than wait a whole year to spend the money we’ve given them.  Here’s a copy of the letter we sent to the Senate Appropriations Committee.

Finally,  Peter talked about the difficulty small tech companies have had when trying to get a loan through SBA. Banks have almost no ability, and no interest, in granting loans to companies that have few tangible assets.  Innovation companies don’t buy buildings, they don’t buy furniture, they don’t buy trucks, they may not even buy computers.  Instead they pay wages for engineers, they hire software developers, they build and destructively test prototypes – none of which is a tangible asset that a bank can attach if you fail.   Peter asked Chairwoman Velazquez to work with SBA to improve how SBA deals with IP as an asset for the purposes of securing loans.

Overall, Peter was a rockstar today, and made all of us at ACT very proud to have him as a member.

What happens to the art when the artist can’t make a living from his or her work?

Wednesday, February 3rd, 2010

Why do we choose the products we
choose, when there are so many alternatives? 
I watched the ITIF Forum: “Info-Communism:” A Progressive Path Forward
or a Political and Intellectual Dead End? On ustream 
ustream today  ITIF and Jonathan Zuck, the president of ACT, raised this
very fundamental question.   

Although the discussion that followed
by the panel was interesting, I am not sure that the panelists ever really
answered Jonathan’s question. 

It seems like an important one.  Certainly it is relevant for anyone who hopes
to make a living off of their photos, poems, or code.   It is in fact a critical question for
everyone who enjoys the products of these creative entrepreneurs.   

On today’s panel,  the discussion centered on intellectual and
political movements that seek to level the playing field by opening up access to
art to all, without fee, the creations of the few who toil to innovate.  By name alone, these movements–“free culture,”
“openness movement,” and “extreme Net Neutrality”–sound inviting.  Who would be opposed to a level playing
field?  Why would anyone want to pay more
to enjoy what they could have for free?

There are lots of examples of how
we share more in real time today than was ever possible before.  We trade quotes and pictures and lyrics with
people we have never met before from all corners of the globe.  Sites like Flickr
flickr show the amateur photographer in all of us what it
means to aspire to great beauty.  This is
all wonderful to be sure.  Free – looks
like it works fine.  But, there is a rub.

Certainly these same folks that
enjoy such art would likely think they are paying the artist a compliment if
they share this shot with others.  They probably
don’t spend much time pondering the fair use exception carved out by the
Supreme Court in its 1984 decision in Sony Corporation of America v.
Universal City Studios, Inc.
464 U.S. 417 (1984) when they use the pictures they downloaded as their
wall photo.   But what of the
photographer who hopes to make a living off of the sale of his or her
work? 

There are, to be sure, some areas
of grey in the current understanding of what fair use means in the digital
economy.  Everyone understands what it
means to give someone credit for work well done and talents well used – and
even this simple courtesy is often overlooked.    

At one level there may be a
qualitative difference between similar things: 
one may have more artistry; be more elegant; or, more clearly capture the
essence of efficiency.  Should the
author, poet or developer who labored and honed his or her skills to create
this artistry not be rewarded for the hours of training?

The real debate, however, probably has less to do with defining
boundaries in the currently foggy areas of fair use, or imposing norms of
civility and kindness, and more to do with human nature of striving for
excellence and wanting to be rewarded for the effort.  How do you encourage investment and
creativity?  

Jonathan’s question highlighted that people tend to gravitate
towards the work of professionals.  In
other words, people seem to like that work best.  Viewers gravitate to the music, movies and
art of professionals so it behooves us to allow those professionals who simply
work harder and for longer on their craft to enjoy the fruits of that
labor. 

Jonathan raised the example of the “Hope” poster.  His point was that while there is a lot of
debate over fair use surrounding that poster, he finds himself asking why when
there were over 100,000 photos of Obama that could have been used for free up
on Flickr, why did that person choose a professional image?   Jonathan suggested, and rightly so, that the
user of this shot sought to profit from HIS art, shouldn’t the inspiration for
that art profit as well?

What happens to the art when the artist can’t make a living from
his or her work? 
After all Free is great – until it isn’t.

 

IP and Guilty Pleasures Collide, Part Deux

Thursday, November 19th, 2009

This is a follow-up to my post last week about IP rights and the "for me, but not for thee" attitude we often see when assertion of rights makes an appearance in pop culture. Last time it was a contestant on "Project Runway" having to change course after being informed that some pre-printed t-shirts she'd planned to use were trademarked. I'll try to refrain from making this an annoying multi-part series, but here's another example of IP irony:

Celebrity gossip website TMZ.com is poking fun at singer-songwriter-musician Taylor Swift for joining on to a BMI copyright infringement lawsuit that apparently goes after bars that haven't paid proper licensing fees for the music played in the establishment and during karoke. Someone like Taylor Swift couldn't possibly need the couple of bucks a month that would come in from such fees, TMZ intones.

Or maybe it's more about the principle of the matter. And maybe that's why the bottom of the post on TMZ has a fun little symbol of a "c" with a circle around it. And why their own Terms of Use page says, "This Site and all materials incorporated by TMZ.com on this Site
("Material") are protected by copyrights, patents, trade secrets or
other proprietary rights ("Copyrights") …TMZ.com respects the intellectual property rights of
others and asks users of this Site to do the same."

Washington Post’s Rob Pegoraro Overreaching in Attack on Creators

Monday, November 16th, 2009

Although Rob Pegoraro's Sunday article, "Copyright overreach goes on world tour," was about a coordinated effort among several countries to establish common copyright rules, the unmistakable position conveyed was that creators and copyright owners should not have any right to protect the investments into their products.  His disdain for copyright owners is remarkable.  Most critics of the DMCA and the copyright community at least acknowledge that creators play a valuable role in providing the entertainment content that sells new technologies.  But Pegoraro's article seems more like the blog of a frustrated pirate than a serious piece on how to balance copyright protections and consumer interests.

How can Mr. Pegoraro be considered a legitimate voice in this debate with statements like:

"Want a program to copy a DVD to your iPod?  You can't pick that up in a shop, thanks to the 1998 vintage Digital Millennium Copyright Act.  The DMCA bans that software, along with other tools that might help you use movie downloads, e-books and other "protected" files in ways not specifically allowed by their vendors."

Seriously Mr. Pegoraro, we are well past this point.  Vendors…also known as the creators of way cool music, movies, video games, software, and books… have the constitutional right to determine the uses of their works.   Feel free to join us in discussing licensing, fair use, and DMCA exemptions instead of misleading your readers into thinking the DMCA and rightful protection of intellectual property is somehow a barrier to innovation and new technologies.

A Strange Thing Happened on the Way to the Class Action Settlement…

Tuesday, September 29th, 2009

The Google book search settlement seemed all but wrapped up in a bow, that is, until hundreds of objections were filed with the Court, the House Judiciary Committee held a hearing on September 10 examining the antitrust, privacy and copyright issues implicated by the deal, and then the Department of Justice filed a comment on September 18 urging the Court to reject the settlement.

In my opinion, the Court simply couldn't ignore the significant concerns raised about the deal and wouldn't approve the settlement without changes.  Apparently, neither Google nor the Authors Guild were confident about their chances because on September 22, they asked the Court to cancel the October 7 hearing to potentially finalize the deal. 

But, this delay is just that… a delay.  These parties have invested a lot of time and money.  It has the potential to be a huge commercial success and an enormous benefit to society in terms of access to information.  So there is still momentum to finalize a deal. 

Reaching a final agreement will be difficult.  There are many stakeholders who need to be at the table and many obstacles that need to be addressed, like orphan works.  Sure it is frustrating when the law seems to get in the way of rapid technological progress.  But, it isn't okay to privately negotiate around the rules to the exclusive benefit of a few.   We all have a stake in this deal, and we ought to do it right.

Red Flag Alert: Google Book Search Settlement Faces Mounting Concerns

Friday, September 18th, 2009

The Google Book Settlement "makes a mockery" of the Constitution, and should be opposed- so says Marybeth Peters, Register of Copyrights.  Paul Misener from Amazon says Google will have a monopoly and "exclusive license".  And Professor Randal C. Picker says "imagine if a company came before Congress to ask for a deal like this- it would be inconceivable".

As a former counsel for the House Judiciary Committee, I'm used to pretty harsh rhetoric, but even I was a little shocked with the Register's strong language.  Ultimately though, I have to agree that this deal certainly is an end-run around copyright law and will effectively give Google an exclusive license over all orphan works.

This deal gives Google the right to copy, distribute, and sell books which still have copyright protection but for which the owner can't be found.  These are commonly known as "orphan" works.  However, Article I, Section 8 of the Constitution gives to authors exclusive rights to their works.  In other words, people who want to use those works must get permission from the author first.  It doesn't say "except for orphan works, or books written on the 4th Sunday of April in a leap year".  This deal turns that basic legal foundation on its head by allowing Google to capitalize on the use of orphan works without permission.  Ultimately, Congress will have to find a resolution to the orphan works problem, but this settlement undercuts more than a century of U.S. jurisprudence.

But the deal goes beyond just orphan works. In fact, all literary works are included in the deal unless the rights holder- known or unknown- opts out.  Which leads to the point Mr. Misener made during his testimony.  This is an exclusive license.  Google makes a big deal about authors or rights holders being able to "opt out" and make other deals.  However, as Mr. Misener effectively explained, orphan works can't opt out because the rights holder can't be found.  Clearly this gives Google a major advantage over any other competitor. 

Today the Department of Justice is expected to file its concerns with the Court reviewing the proposed settlement agreement.  No doubt they will focus on the anti-trust issues and how the settlement could impact competition and consumers.  But, it is hard to imagine that the court will be able to accept the settlement without changes given the mounting number of red flags being raised.  Yes, there needs to be flexibility in the law to deal with rapid changes in technology.  However, is it worth the risk to competition, copyrights, consumer access, and privacy to allow private parties to negotiate around the law in a deal so big it implicates nearly all of us?  Even EFF is opposed to the deal. Serious Red Flags!

Google Book Settlement: Voices of Concern Growing Louder

Wednesday, September 9th, 2009

This Thursday, September 10, the House Judiciary Committee will hold a hearing on "Competition and Commerce in Digital Books."  As a former House Judiciary counsel, I know that this hearing is an indication of the growing number of voices raising concerns about the Google book search settlement.  As I stated in an earlier blog on this issue, this deal implicates contract rights, copyright, antitrust and constitutional concerns.  

Since the deal was announced, there have been significant red flags raised: ) the Department of Justice opened an antitrust investigation in to the proposed agreement in July;  2) a coalition to challenge the deal has been formed, with Microsoft, Amazon, Yahoo, the Internet Archive, and some libraries, and 3) individual authors are concerned about compensation, rights and control.

The United States District Court for the Southern District of New York is set to conduct a hearing on October 7 to review and possibly approve the deal.  But, the legal and competition issues are significant.  I expect the Court will take seriously the concerns raised in the hearing, the DOJ investigation, and the many briefs filed. 

Still,  this is a story of a big market player taking and using the property of others without permission.  Private business negotiations are good and should be encouraged.  But in this case, one has to wonder, does this deal just reward the bully on the block while leaving out those who played by the rules? It just doesn't sit well given the huge stakes for everyone. 

Is 6.44% of GDP “Useful” Enough?

Thursday, July 30th, 2009

Yesterday, Tom Bell posted a piece on the Technology Liberation Front blog entitled, "Unconstitutional Copyrights?".  Mr. Bell provided a passage from his upcoming book, Intellectual Privilege: A Libertarian View of Copyright, in which he argues that copyright protection for songs, novels, movies, paintings and sculptures, is unconstitutional because these are merely expressive arts and not "useful arts". 

Bells logical analysis is as follows: The Constitution requires copyright protection when it promotes the progress of science and useful arts.  The first copyright law, enacted in 1790, provided protection for only maps, charts, and books.  Because music, plays, and paintings were not included in the 1790 Act, they must not have been deemed "useful" and therefore specifically excluded from copyright protection. 

But, Mr. Bell provides no evidence of any debate over whether to grant these arts protection.  He simply concludes that they weren't deemed "useful" based on their not being included.  Having worked on drafting legislation for several years for the House Judiciary Committee, I can tell you that not including something into the coverage of legislation does NOT mean it was specifically excluded.  More often than not, it simply means that not enough information was available or there wasn't a perceived need at the time.

Given the recent report by the International Intellectual Property Alliance (IIPA), which concluded that the core copyright industries accounted for 5.6 million jobs and $889 billion in contributions to the gross domestic product between 2003-2007, I doubt the founding fathers would have determined these arts not to be "useful" beyond just diversionary enjoyment.

Even opponents of stronger copyright protection claim that industries that use fair use exemptions and other limitations in copyright law contribute even more to the economy that the copyright creators themselves.

To treat these industries as providing merely something to entertain audiences is to ignore the research, innovation, technological advances, and jobs involved in each.  These industries reinvest profits into researching  and developing new technologies- scientific technologies.  And, these very innovations are often used by scientists, doctors, engineers, and governments to improve their ability to do their jobs.  I argue that this more than satisfies the Constitution's requirement that copyrights DO PROMOTE the progress of both science and useful arts.

I'm certain the authors of the Constitution would agree.

Paying for Free: Security, Privacy, and Sustainability Costs for “Free” Software

Thursday, July 9th, 2009

Today’s tough economy creates fiscal pressures for state and federal government budgets. Resourceful policymakers are increasingly looking for ways to reduce or at least maximize their information technology (IT) spending, and utilizing free software and services is one possible direction. But what does “free” really mean?

Some solutions are “free” in the sense that there is no up front license fees to use the software or online service. Companies often provide or support these free solutions in order to help sell hardware, generate service revenue, collect user data and sell advertising, or as part of a larger enterprise strategy toward expanding market penetration and increasing revenues. Consequently, “free” does not mean that software is without cost.

Normal cost/benefit analysis still applies to “free” software, because license fees represent only a small portion of ownership costs. This is not news to most CIOs, who have traditionally analyzed their systems using a total cost of ownership (TCO) methodology. This analysis evaluates the lifecycle costs of IT systems and factors in initial acquisition and ongoing cost considerations. Upfront acquisition costs include not just license fees, but also integration and training costs. Ongoing costs include maintenance, support and updates.

Yet, traditional total cost of ownership analysis is incomplete for considering the unique costs and benefits of free software and services, particularly those delivered through the Internet. Privacy, security, and sustainability considerations exist for all software, but they are often a critical component for analyzing Internet “Cloud-based” services. These are non-monetary costs and perhaps harder to quantify, but from a buyer or consumer perspective, they are still very real.  That is why we suggest integrating them into the an updated version of TCO analysis we call “adTCO.”

A decision-making process that incorporates privacy, security and sustainability considerations will result in a truer assessment by procurement officers and policymakers of the cost of software alternatives. Understanding the costs as well as benefits of “free” software will avoid creating the expectation that there is such a thing as a free lunch in IT, a benchmark that no IT business model can meet.

The Report

Paying for Free: Understanding the Real Costs of Free Services and Software

The Paying for Free Launch Event

Paying For Free – ACT Event from Association for Competitive Tech


ACT Event: Paying for Free (part 2) from Association for Competitive Tech