Wednesday, October 22, 2008

Rock On (Book Review)

Rock on: How I Tried to Stop Caring About Music and Learn to Love Corporate Rock by Dan Kennedy.

I had high expectations for this book because it describes the experiences of a middle-management marketing type employed by Atlantic Records during the time internet downloading became prevalent and started affecting the music industry as we know it. The book does describe the corporate culture before the big shock came, and has some interesting anecdotes about what was happening behind the scenes in the post-Napster era.

Nevertheless, Kennedy's book feels like a wasted opportunity. The style is rather annoying, it uses a hipster-smirking tone that would be more at home in a blog (this is rich coming from me, but I digress). Kennedy's use of obscure stereotypes to describe his characters gets old really fast, and is confusing as hell. Was "Suave Older Robert Wagner Character" the same as "Ageing Suburban Classic Rock Guy"?

Having said that, I found some hidden gems in the book. For example, the realisation that people in the music industry were downloading music just like the rest of us; or the fact that executives were as clueless to respond to the new marketplace as we always thought they were. The culture of corporate excess, bloated salaries, and the operation in an irony-free environment were endearing. My favourite part of the book is when Kennedy describes the launch of a Jewel song about not selling out, while at the same time the same song is used to advertise leg-shaving products. Really, no amount of sarcasm conveys the absurdity of such a situation.

On the whole, I enjoyed the book for these little jewels (geddit? jewels, hehe), but Kennedy's style made me struggle through large sections of the book. Self-deprecating humour is OK, but writing an entire expose based on one's shortcomings takes its toll on the reader.

Tuesday, October 21, 2008

*Bleeping* patents

Habitual readers may suspect already that I think software patents are a *bleeping* bad idea. Yeah, they are often filed by *bleeping* patent trolls, or are awarded to *bleeping* obvious "inventions" that do not advance the state of the art in any *bleeping* way.

Enter U.S. Patent 7,437,290 which describes a method for automatic censorship of audio data for broadcast. The abstract reads:

"An input audio data stream comprising speech is processed by an automatic censoring filter in either a real-time mode, or a batch mode, producing censored speech that has been altered so that undesired words or phrases are either unintelligible or inaudible. The automatic censoring filter employs a lattice comprising either phonemes and/or words derived from phonemes for comparison against corresponding phonemes or words included in undesired speech data. If the probability that a phoneme or word in the input audio data stream matches a corresponding phoneme or word in the undesired speech data is greater than a probability threshold, the input audio data stream is altered so that the undesired word or a phrase comprising a plurality of such words is unintelligible or inaudible. The censored speech can either be stored or made available to an audience in real-time."
What the *bleep*? What sort of stupid *bleep* is that? How can Microsoft claim such *bleeping* idiocy?

Seriously though, I actually think this is a useful invention. Otherwise the above text would be rather colourful. Now I'm off to swear in the shower, the last refuge of the foul mouthed.

Sunday, October 19, 2008

Palin and the llama

So... Sarah Palin was in Saturday Night Live yesterday... and what is in the background? A llama!



Is she going for the pro-llama vote? I may have to change my opinion about her.

Update: Thanks to John for pointing this site out.

Friday, October 17, 2008

Virtual currencies stifled by regulation?


(via panGloss, The Register and Out-Law) Roll back the time to 1999. The internet was relatively new, electronic commerce was still a buzz-word, and everybody was talking about electronic cash, virtual currency and Mondex. In the future we would have relinquished our reliance on paper money, and we would be conducting our everyday commercial transactions with a combination of smart cards, RFID chips and mobile phones. The European Commission, in a characteristic surge of regulatory vigour, drafted several directives dealing with e-commerce, including the Electronic Money Institutions Directive, the legal skeleton supporting the frame of the brave new incorporeal marketplace.

Fast forward to 2008. My trousers are still jingling with coins. I look into my wallet and those pesky pieces of paper are still there. True, I have several smart cards, but those chips are inserted into "traditional" payment methods, such as credit and debit cards. Whatever happened to our dream of electronic money?

The European Commission conducted a consultation process that looked at the topic of e-money, and the findings are troubling. There are only 20 electronic money institutions in the entire EU, and the issued value amounts only to 1 billion EUR. The consultation unearthed some problems with the existing legislation that stifles the provision of electronic money. The impact document states that:

"During the review process, stakeholders expressed concerns that the current directive lacks legal certainty. First of all the definition of electronic money is considered unclear. Second it is unclear for stakeholders whether or not it is applicable to certain business models such as certain prepaid payment from mobile network operators and electronic vouchers."
So, we should blame the legislation for the lack of electronic money... or should we? True, I am on record criticising the EMI directive, and how the definitions were pretty useless when looked at closely. PayPal pretty much exploded the system when it was declared an EMI, an later became a bank. Similarly, I have always been averse at proactive regulatory efforts because it is my strong belief that they usually fail miserably in reading technological advances. The regulatory landscape of electronic commerce and information technologies is filled with the carcasses of failed and/or ineffective pieces of legislation drafted with specific technologies in mind.

Nevertheless, I do not think that the EMI directive is to blame. I blame the efficiency of traditional payment systems. Why have an extra cash card, when debit cards will suffice for most transactions? Why try to jump-start the electronic money market, when PayPal dominates electronic payment systems? Moreover, electronic money has not taken off in jurisdictions that never enacted the EMI directive, which tends to confirm in my mind that the problem is one of consumer confidence and lack of a "killer app" in the field of electronic money.

Last year I asked a simple question to my students for their essays: “Virtual in-game currency, such as Linden Dollars, is electronic money as defined by the Electronic Money Directive”. I got some excellent answers as a result (I'm hoping LawClanger will publish his essay), which served to confirm that the directive was bursting at the seams when confronted with real-life examples. I still think that virtual currencies could be classed as electronic money, and the admission of regulatory defeat by the Commission has served to confirm my suspicions; I believe that the growing economic importance of virtual currencies will eventually prompt the recognition of virtual currency as valid electronic money. Hopefully, the more generic definitions contained in the new directive proposal will serve to that effect.

Wednesday, October 15, 2008

The global copyfight rages on


The Wall Street Journal has published an excerpt provocatively named In Defense of Piracy from Lessig's new book Remix (out tomorrow). It seems like Lessig is still very much involved in the copyfight, highlighting the almost farcical story of Holden Lenz and Prince.

One could be forgiven for thinking that the copyfight has been relegated to a chapter in intellectual property textbooks. The music industry seems to have stopped suing its customers, and there has been a bit of an impasse with the attack on intermediaries and the three-strikes proposals. However, the copyfight is alive and well in countries that are updating their intellectual property legislation. Chile for example has been in the middle of drafting a new IP law, and it seems like there is a good old struggle going on down under. The government brought together a number of stakeholders to attempt to achieve a good balance between user and artist interests. However, the goverment completely undermined it by signing an agreement with the local collective society (SCD), and have sent forward a draft Ley de Propiedad Intelectual that makes the DMCA look like The Pet Goat.

Claudio Ruiz has written a post on the most worrying aspects of the draft law, which pretty much eliminates fair use, enhances liability for intermediaries, eliminates most educational exceptions, creates a virtual monopoly by the SCD, and most worryingly includes language that prohibits the renunciation of rights, making Creative Commons licences ineffective. After all, if you cannot renounce your rights, you cannot draft a "some rights reserved" licence! Christian Leal was interviewed on TV about the new law, and I found his explanations very well made. The Chilean blogosphere is up in arms about the turns of events (and the Facebook group against the law has now more than four thousand members!)

So the copyfight is alive and well. In the new digital economy, and with financial systems collapsing all around us, intellectual property is gaining more traction as a viable support for national economies, certainly more sustainable than ficticious credit instruments. We can therefore expect renewed interest in trying to squeeze the last penny out of intellectual creations.

Tuesday, October 14, 2008

Question of Sport

Questions of Sport: What are the Legal Rights and Wrongs?
1 Day Conference to be held at Hawthorn Suite, Murrayfield Stadium, Edinburgh, UK

To celebrate the first anniversary of the announcement that the Commonwealth Games are coming to Scotland, and with the London Olympic Games looming large, Edinburgh Law School is organising a day-long event to looks at legal rights and wrongs associated with sporting competition. The event will take place on Friday 7 November 2008 at Murrayfield Stadium, Edinburgh from 9am-5pm. The event is being organised by SCRIPT, the law and technology research centre based in Edinburgh Law School and sponsored by the Arts and Humanities Research Council.

The many questions which remain unanswered include the rights and wrongs of enhancement technologies, the privacy implications for sportsmen and women of anti-doping monitoring measures, the existence and extent of merchandising and commercialisation rights and control of the trade marks associated with large sporting events.

Speakers include
Julia Bracewell OBE
Seona Burnett Partner McGrigors
Helen Arnot Head of Legal Department, STV SMG plc
David Marshall CEO Tennis Scotland
As well as many others

On November 7th, on the eve of Scotland's game with the All Blacks, we hope to explore these questions surrounding modern sporting competition with sportspersons, lawyers and lay people alike. The format of the day will be short talks from a wide range of experts (legal and non legal) with plenty of time for discussion. A final panel session will involve leading sports personalities with legal backgrounds giving their own impressions on the issues.

We hope that you can join us, please follow this link
https://www.epay.ed.ac.uk/events/eventdetails.asp?eventid=56
to find details of how you can register. There is a nominal charge of £20 which covers lunch and refreshments during the day.

If you need any further information please contact John Anzani at
john.anzani@ed.ac.uk

Thursday, October 09, 2008

COMMUNIA Workshop in Amsterdam

Marking the public domain: relinquishment & certification" - this is the title of the 3rd COMMUNIA Workshop to be held in Amsterdam on 20-21 October 2008. The workshop will address the legal, economical and technical issues related to certifying public domain works and relinquishing intellectual property rights in Europe.

The first session will consist of two keynote speeches by scholars on the public domain, to be followed by an introduction of two specific tools being developed by Creative Commons. Other two sessions will examine the possibilities of relinquishing rights in European jurisdictions and discuss tools needed to determine and certify the public domain status of works that are (believed to be) in the public domain.

Also scheduled are presentations of organizations and projects that have build their models or practices) around Public domain material, and other meetings of the COMMUNIA working groups.

The workshop takes place in Pakhuis de Zwijger, in central Amsterdam. Participation is open to the public and free of charge. Because of venue limited capacity, though, participants need to pre-register.

For more information, including downloadable registration form, please visit:
http://communia-project.eu/ws03

-----------------
About COMMUNIA

The COMMUNIA Thematic Network aims at becoming a European point of reference for theoretical analysis and strategic policy discussion of existing and emerging issues concerning the public domain in the digital environment - as well as related topics, including, but not limited to, alternative forms of licensing for creative material; open access to scientific publications and research results; management of works whose authors are unknown (i.e. orphan works).

Funded by the European Commission within the eContentplus framework, the 3-years long project expects to provide policy guidelines that will help each stakeholder involved - public and private, from the local to the European and global level.

More information: http://communia-project.eu
Contact:

Wednesday, October 08, 2008

Symbian software patent appeal rejected

I have been following with interest the software patent case of Symbian v Comptroller General for Patents. The Court of Appeals has rejected an appeal by the UKIPO, which seems to move English software patent rulings closer to te EPO Board of Appeals interpretation.

As background, Symbian is a UK company which produces a popular mobile phone operating system, and in 2004 made a PCT application for "Mapping of dynamic link libraries in computer devices". The patent was awarded by the European Patent Office (EP1678608), but it was rejected by the UKIPO (GB0325145.1). Symbian appealed the decision and won. The UKIPO found the ruling by Patten J to be faulty, and filed an appeal, which as I mentioned, has been rejected.

The decision has been drafted by Lord Neuberger, and I have to say that it does not go into too much detail of the law, and therefore is a less compelling read than Aerotel and other rulings, but it still contains some interesting discussion. The core issue of the Symbian appeal is rather straightforward. Was the UKIPO justified in excluding Symbian's patent application? Patten J opined that it was not, and the Court of Appeals agrees. Lord Neuberger is of the mind that excluding inventions in computers is arbitrary and unfair:

"It can also be said in favour of Symbian's case that it would be somewhat arbitrary and unfair to discriminate against people who invent programs which improve the performance of computers against those who invent programs which improve the performance of other machines. However, as against that, what goes on inside a computer can be said to be closer to a mathematical method (which is, of course, not patentable by virtue of art 52(2)(a)) than what goes on inside other machines."
Nueberger L makes a strong case against exclusion of software by the mere fact that it is software, while acknowledging the inherent difficulties in looking for prior art when the source code is absent. Nueberger L spends some time trying to determine whether or not there is a technical contribution in the Symbian "invention", and concludes that there is, and therefore the patent application cannot be excluded on those grounds. The case then is not about the novelty of the application, it is about unwarranted exclusion of a valid application on the grounds of the patentability of software.

What is clear is that the Symbian appeal is a concerted attempt to bring the EPO and English decisions closer together. While Aerotel placed a large wedge between the EPO Board of Appeals and English courts, recent cases have been bridging the gap, particularly in the area of obviousness in non-software cases (namely, Conor v Angiotech and Actavis v Merck). Lord Neuberger spends his last paragraphs building bridges and making a friendly gesture to the EPO. He says:
"It is, of course, inevitable that there will be cases where the EPO will grant patents in this field when UKIPO should not, at least so long as the view in Pension Benefit and Hitachi is applied by the Board and is not applied here. The fact that the two offices and their supervisory courts have their own responsibilities means that discrepancies, even in approach or principle, are occasionally inevitable. However, the fact that such discrepancies have been characterised as "absurd" by Nicholls LJ, and the reasoning in [3] of Conor emphasise the strong desirability of the approaches and principles in the two offices marching together as far as possible. This means that there is a need for a two-way dialogue between national tribunals and the EPO, coupled with a degree of mutual compromise. More directly relevant to the present appeal, it means that, where there may be a difference of approach or of principle, one must try to minimise the consequent differences in terms of the outcome in particular patent cases."
This seems reasonable, but to my mind the Symbian appeal is a wasted opportunity to clarify concepts. The ruling completely fails to address the fact that the Symbian patent application is woefully obvious, and should not have been granted on the grounds of novelt and inventive step. True, this case has never really been about the application itself, it has been about the narrowness of interpretation of what constitutes software as such, technical effects, and therefore whether software should be excluded from patentability on those grounds. However, most of the definitions of technical effect in the case law delimit it as a novel step that advances the state of the art in a comprehensive manner. The case might have analysed that the Symbian application is seriously lacking in those grounds, and therefore did not meet the technical contribution requirements. However, Neuberger L and Patten J before him do not go into this vital question in detail, and I believe they should.

It seem like the UKIPO will have to redraft their guidelines again.

Update: The Times Online has an article on the ruling, which I found quite misleading. They are making it seem as if software patents could not be obtained in the UK prior to the ruling, which is not true. As I mentioned, Symbian has brought EPO and UK practices closer together, which does indeed mean that more software will be subject to patent protection.

Tuesday, October 07, 2008

Financial crisis in one picture

As some of you may have noticed, I've been enthralled by the looming financial crisis (is it accurate to call it "looming" after the last few days?) Anyway, here is a gem I found while reading up on the crisis:



Pretty much sums it up.

Monday, October 06, 2008

Language matters

Hiding meaning through obscure language is a long-held tradition, after all, that is what euphemisms are all about. However, avoiding regulated practices by calling them something else is an entirely different matter altogether. Insurance provision is a heavily regulated area for a reason, yet if you do not want any oversight, you call what you do something else and elude the regulators. If you sell insurance, but do not want the pesky regulators looking at what you do, then you call it a credit default swap, and presto, the regulators are gone (sort of like the expecto patronus spell of financial markets).

The world's financial markets are in trouble due to clever renaming. A sad indictment on regulation as a whole? Perhaps I should stop analysing the law and become a linguist. At least my grammar and sentence structure might improve.

Friday, October 03, 2008

Software Cultures Hardware Laws

Last week I attended an interesting event called Software Cultures Hardware Law organised by Queen Mary Intellectual Property Research Institute. I flew in from the frozen wastelands the same day of the event, so I missed a panel called "Meet the Jurists" chaired by Prof. Johanna Gibson and with the participation of Rt Hon Lord Justice Jacob, Mr Henry Carr QC and Mr Martin Howe QC . Apparently, there was discussion of some new game-related software patent case which sounded fascinating (if anyone has heard of this case, please let me know). There were some excellent presentations. Open Source expert Till Jaeger gave an introduction of the anti-DRM clause in the GPL v3. Guido Westkamp talked about international TPM protection. Ross Anderson provided a forceful and compelling argument against further criminalisation of copyright enforcement, and provided historic context as to why it really matters. However, I wanted to highlight a couple of presentations from two experts from the Software Information Industry Association.

Firstly, Scott Bain presented the best legal paper of the day on the issue of first-sale doctrine and its application to copyright law. Unsurprisingly, the SIIA and other content industry lobbyists are usually against first-sale doctrine. For those unfamiliar with it, the first-sale doctrine allows you to resell a CD or a DVD (forgive the dumbed-down analysis). Content owners usually argue that what they do is not a sale of goods, but rather a licence. By licensing the content, you never "own" the intellectual property you purchase, you are only acquiring permission to use it for a while. If you do not own it, you cannot resell it. This allows the market to be split into sectors, and allows software manufacturers to offer cheaper prices to hardware manufacturers, educational institutions, students, developing countries, etc. This OEM software is often resold by distributors at cheaper prices, a practice that has been the subject of countless cases (Vernor v Autodesk, and Wall Data to name a few). I have not given first-sale proper thought, but the fact that it was treated in Blizzard v MDY caught my attention. I have criticised the ruling elsewhere, but I feel that the one thing that the case may have going for it is the fact that it treats software as licensed material and not as a good, so I agree with Mr Bain's take on the subject.

The other presentation worthy of note was Keith Kupfershmid also from the SIIA. While I am an old hand at listening to hyperbolic rhetoric from the copyright lobby, I am still surprised by some of their tactics. Mr Kupfershmid is head of enforcement at the SIIA, and I was truly shocked by the level of his presentation. We were first introduced to the subject of enforcement by presenting us with three bad people. How do we know they are bad? They are pirates. OK, piracy is bad, but how much worse can these people be? Well, the first person highlighted was not only a pirate and sold software on eBay, but when the police raided his computer, they found child pornography! Yes, that's right folks, in one single slide software piracy was effortlessly equated with child molesting. You cannot make this stuff up! The other perpetrators were no better, keyloggers and hackers one and all.

But perhaps the most disturbing thing of the entire presentation was that it was a perfect example of the latest strategy from content owners against intermediaries. Google, eBay and PayPal are involved in "e-fencing", so they are no longer intermediaries, they are "facilitators". Yes, you heard right, they are instrumental in the crimes committed by allowing these evil people access to the market. We have seen that intermediaries are increasingly under attack from content owners, from YouTube to Google, passing though three-strikes. To me the implication of the entire presentation for intermediaries was very clear. So far your liability has been civil, but if you do not comply with our demands, criminal liability may not be far off.

Criminal enforcement, coming to a legislature near you.

Update: The case is Nova v Mazooma.

Wednesday, October 01, 2008

Financial spam

I received this on the mail this morning, and felt the urge to share it.

Dear Grateful in God:

You may be surprised to read this message from me as you do not know me. I need to ask you to support an urgent secret business relationship with a transfer of funds of great magnitude.

I am Ministry of the Treasury of the Republic of USA. My country has had a crisis that has caused the need for large transfer of funds of $800 billion dollars US. If you would assist me in this transfer, it would be most profitable to you. I am working with Mr. Phil Gram, lobbyist for UBS, who will be my replacement as Ministry of the Treasury in January. As a Senator, you may know him as the leader of the American banking deregulation movement in the 1990s. This transaction is 100% safe.

This is a matter of great urgency. We need a blank check. We need the funds as quickly as possible. We cannot directly transfer these funds in the names of our close friends because we are constantly under surveillance and in danger of our lives. My family lawyer advised me that I should look for a reliable and trustworthy person who will act as a next of kin so the funds can be transferred.

Please reply with all of your bank account, IRA and college fund account numbers and those of your children and grandchildren to wallstreetbailout@treasury.gov so that we may transfer your commission for this transaction. After I receive that information, I will respond with detailed information about safeguards that will be used to protect the funds.

Yours Faithfully Minister of Treasury Paulson

Tuesday, September 30, 2008

EndNote sues open source reference competitor

As many other academics, I have come to rely on reference software to keep my bibliographic resources organised. For some time I have been using Endnote because it came installed with University computers, but I have been increasingly frustrated with its lack of interoperability and inflexible interface. EndNote has many things I like, but as my bibliographical files grew, its limitations became more evident. Lately I have been using a combination of CiteULike, EndNote and Book Collector to keep my books organised.

It seems like I am not the only person dissatisfied with EndNote, and the open source alternatives have been multiplying. I have been particularly impressed with newcomer Zotero from the George Mason University. Zotero is a Firefox 3 plugin that allows scholars to manage their references directly from the browser. It is light, interoperable, feature-rich, and extremely flexible. Whichever way you look at it, is much better than Endnote. So, if you are Thomson Reuters (the owners of EndNote), you would assume that you would welcome the competition and would work hard to improve your own product... but why improve when you can sue your competitor out of existence? Thomson Reuters have done just that, and have sued the State of Virginia and George Mason University for breach of licence (complaint here).

What is Zotero's sin? Interoperability! According to the complaint:

"A significant and highly touted feature of the new beta version of Zotero, however, is its ability to convert - in direct violation of the License Agreement - Thomson’s 3,500 plus proprietary .ens style files within the EndNote Software into free, open source, easily distributable Zotero .csl files. [...] On information and belief, GMU reverse engineered and de-compiled EndNote Software and the proprietary .ens style files contained within the EndNote Software in order to determine how to convert the EndNote .ens style files into the open source Zotero .csl style files, in direct and material violation of the License Agreement."
How dare they? They have made it easy for Endnote users to migrate to a competitor! Quick, let's sue the hell out of them!

What are the legal merits of the suit? The licence agreement does indeed have the following restriction:
"2. RESTRICTIONS. End User may not modify, translate, decompile, reverse engineer, retransmit in any form or by any means (electronic, mechanical, photocopied, recorded or otherwise), resell or redistribute the Product, or any portion thereof, without the prior written consent of ResearchSoft. Except as expressly set forth in this Agreement, End User may not make any use of the Product."
Notice that the complaint therefore is for breach of contract and NOT for copyright infringement. I think that the reason is clear, decompilation for interoperability purposes is increasingly an accepted user right (see for example, article 6 of the Computer Software Directive). The question therefore at the heart of the case will be as follows: does the strict wording in EndNote's licence which prohibits the decompilation and reverse engineering of EndNote trump the fair use defence of decompilation for interoperability purposes? It is likely that the case will rest on ProCD v Zeidenberg territory, where the pre-emption of contract law over copyright was discussed at length by Judge Easterbrook. My own guess is that the claim is so tenuous that it will not survive legal scrutiny. As others have pointed out, this is clearly a nuisance lawsuit designed to intimidate a competitor out of the market.

However, researchers disgusted with Thomson's lawsuit should do more. I am uninstalling Endnote from all my computers, and will be converting SCRIPTed's EndNote style to Zotero's interoperable open format as soon as possible. I would encourage other academic EndNote users to make their displeasure felt. Such bullying should not be allowed.

Friday, September 26, 2008

GikIII ends

The third instalment of Gikii (aptly named GikIII) is now over. As with previous years, one is left feeling intellectually stimulated and a bit daunted by the level of smartness emanating from the room. First's year's iconic figure was the killer robot, last year's was the Lolcat, this year it is a knitted sex bot. Yes, you know you have been to a good conference when flying penises and sexbots adorn some of the slides.

It is difficult to choose highlights from the excellent batch of papers. Comrade Schafer presented my favourite paper of the workshop with a look at fan fiction, logic, and DRM in Jasper Fforde's novels. Miranda Mowbray's remix of Sherlock Holmes and cloud computing was both endearingly performed and absolutely spot on. I am thinking of starting the Alana Maurushat appreciation society from her performance last Monday at the University of Edinburgh, and her astute presentation about the disproportionate misuse of copyright law to protect things that are not supposed to be covered under copyright (and any presentation that has a kitten with a sniper rifle meets my seal of approval). Melissa DeZwart's look at fan interpretations through avatars in virtual worlds was another highlight.

However, to highlight just a few papers does disservice to all the others, we had some pretty amazing stuff.

Wednesday, September 24, 2008

GikIII

One of my favourite times of the year has arrived... It's Gikii time!

If you cannot be here the papers are being uploaded as they are presented to this page.

Monday, September 22, 2008

Bubbles bursting, credits crunching, unweaving webs?

I would like to declare a moratorium on excessive use of adjectives to describe the current financial crisis. Why adjectivise (is that a word? If not it should be) when onomatopoeia will suffice?

Zoom! Fzzzt! Eek! Kapow! Kabbloey! Argh!

There, the credit crisis easily explained in one line.

Seriously though, bubbles bursting and credits crunching tend to have one thing in common, and that is the sudden drying up of venture capital as investors reassess their strategies and prioritise towards less risky enterprises. Almost by definition, venture capital investment is a risky endeavour, so it is only natural that in times of crisis, the same investors interested in putting money to support the launch of Pets.com will suddenly think twice and invest in gold.

It is no secret that we have been experiencing a mini dot.com bubble in the last couple of years fuelled by Web 2.0 sites. The success of the likes of Myspace and Facebook has prompted a new generation of entrepreneurs (and the recycled dot.com generation) to try their luck in the market by proposing all sorts of participatory web ideas. Venture capital has been willing to invest in the next Facebook, so technology websites have been springing up like things that sprout up during spring (hence the term I guess). By the end of 2006, venture capitalists had invested $500 million USD is Web 2.0 sites, a figure reputedly doubled by 2007. But the well of investment has stalled in 2008, and I would not be surprised if the figures for the year are depressing for web entrepreneurs (early indications point towards a bad investment year).

The problem with the current bubble is that many of the elements that doomed the first one are still there. Lots of investors go into the market with little or no understanding of the technologies involved, and many entrepreneurs create services that nobody wants, or have such small niche appeal as to make their business models obsolete within three months. Moreover, there is little understanding of how these technologies work. Services like Flickr, Digg, and Facebook do not respond to any rational rules of design or sound business model, they simply succeed by an almost serendipitous accumulation of links. Early comers are well placed to accumulate more incoming links early in the game, and then they coalesce into market leaders almost overnight when numbers reach a certain indeterminable tipping point. This basic understanding of networks would be a good tool for investors.

Another common element with the dot.com bubble is that there is a lot of gibberish and technobabble being passed off as sound business models. By using some essential buzz words, the new crop of entrepreneurs want to make it seem as if they have a grasp of the market, when in fact they are just as clueless about it as the rest of us. Last year's buzzword was "social network", but as the leaders established their dominance, other opportunities needed to be found. This year's buzzwords are "local" and "recommendation site". Yes, some people are just realising that Amazon's recommendation system really works, so they want to incorporate the same thing to their sites. The latest trend seems to be to launch a plethora of services that know where you are, tell you if your friends have been there, and recommend them to you. In other words, a thousand ships launched on the premise of the iPhone! Two words for you. Free apps. Social localised recommendations already exist (Panoramino and Google Earth anyone?), and they will reach their zenith when augmented reality comes our way, but social recommendations are driven by free community social tagging, not by proprietary services.

Moreover, the almost religious optimism of some of the players is breathtaking. I was listening to an interview with Brent Hoberman (of Lastminute.com fame) in the excellent Guardian Tech Weekly podcast, and I was struck by the almost Kool-Aid-drinking quality of some of the statements, such as the admonition that "some of the businesses that failed in 2000 are about to work this time around". Translation: we failed before, but give us more money, and this time we will succeed, even though we are using the exact same faulty business plans and basic misunderstanding of how the web works.

I know that I am just adding my voice to the grumpy technophobes that have been heralding the demise of Web 2.0 since last year, but what the heck. Although I think that Web 2.0 is here to stay, there will be a crash (or maybe even a fizzle), just like back in 2000. Few winners will survive, the rest will go the way of Kozmo.com and their ilk.

Saturday, September 20, 2008

Hacking Palin

An interesting cybercrime and politics story came out this week. Sarah Palin's Yahoo email account was hacked by a group called Anonymous and screenshots were posted in WikiLeaks. Hacking may be too strong a word, what seems to have occurred is more akin to social engineering, as the hackers admitted that they simply guessed correctly Palin's Yahoo security questions. The hacker reset the password by answering Palin's date of birth, postcode and where she met her husband (Wasila High), all easily obtainable facts.

Now the FBI has become involved, as it is a federal offence to have unauthorised access to someone else's email through the Stored Communications Act. The Act makes it a criminal offence to "intentionally accesses without authorization a facility through which an electronic communication service is provided". The perpetrator faces a fine or up to five years in jail if the access was done for "commercial advantage, malicious destruction or damage, or private commercial gain, or in furtherance of any criminal or tortious act in violation of the Constitution or laws of the United States or any State". For any other case, the penalty is one year or a fine. However, the EFF has stated that prosecution may be difficult in case of accessing viewed or opened emails.

While I confess to feeling a pinch of schadenfreude at this case, there is something deeply wrong about accessing another person's email. What seems clear is that privacy settings for famous people are clearly inadequate, as the security questions are anything but.

Friday, September 19, 2008

Happy "Talk like a pirate day"


As a devout Pastafarian, I am obsessed with all things piratical. After all, one of the basic doctrines of the Church of the Flying Spaghetti Monster is that global warming is caused by the decline in pirates. Avast me hearties, 'tis September 19 today, and that means "talk like a pirate day" is back.

Argh!

Thursday, September 18, 2008

The Internet is for Censorship

I still remember how we looked at the Internet in the early days, and how many of us thought that it could never be regulated. Years later, a large firewall and a rather effective gambling ban have proved us wrong. This is why I keep reading every year JPB's Declaration of Independence of Cyberspace... just to remind me that what seem logical now may not look so sane in a decade.

There appears to be a growing trend from governments to try to declare all sorts of things out of bounds by applying different censorship tools. the latest victim has been Richard Dawkins, who has had his website banned in Turkey because a Creationist has found it "defamatory and blasphemous".

There must be an equation that correlates religious fundamentalism with censorship.

On a shallow note (and let's face it, this blog is largely about the pithy and shallow side of the law, is it not?), doesn't the name Harun Yahya make you want to giggle uncontrollably?

Wednesday, September 17, 2008

Palin baby name generator

With names like Track, Trig and Bristol, the world is awash with potential Palin baby names. What would you be named if you were a Palin baby? Now you can find out!

Apparently, I would have been Claw Palin. I like that!

Friday, September 12, 2008

The predictive power of computers

I have always been interested in the depiction of computers in popular fiction. One early computer meme represented the percentage crunching computer/robot that would helpfully tell the protagonists the percentage rate of survival for X situation ("You have a 2% chance to survive that jump").

While computer predictions are not as reliable as their fictional counterparts, they are still used in complex simulations involving anything from climate change to traffic flow. I have been thinking about this for several reasons, including research into networks and because of the latest release of iTunes. The system comes with a recommendation system called Genius. You select a song, and Genius will generate a playlist that "matches" it. I am not sure about the parameters used to generate the lists, but I tried seeding lists with Pat Benatar's "Love is a Battlefield" and New Order's "Blue Monday", and I was quite impressed with the resulting lists. However, trying anything other than Anglo Saxon-centric pop and rock will slice Genius' IQ in half. I tried "Bongo Bong" by Manu Chao, and even several Soda Stereo songs, and all I got was a message claiming that Genius could not generate a list. I was also underwhelmed by the Classical music lists. Apparently, I am not the only person who thinks that Genius is not particularly clever (a hint to Apple: do not name any system with synonyms for intelligence, it will only generate derision from the blogosphere). If you want to try to go into Microsoft world and purchase a Zune, the recommendation system appears to be rather good (I do not know anyone who would willingly buy a Zune though).

Recommendation systems are not new. Amazon's recommendation algorithm has been with us for years, and it really works. It seems like every week there is talk of a new startup that promises to bring social intelligent systems to make our lives easier by letting our friends recommend stuff to us; the Guardian's Technology podcast seems to be almost entirely about social recommendations lately. Similarly, talk about the semantic web and intelligent systems has been around for ages.

I remain sceptical about many of these predictive services, particularly about social applications. While I find it interesting that I share musical tastes with people in my Facebook friends list, I will not make many decisions based on that. I am also sort of troubled about the fact that our tastes can be so easily predicted. I like fooling the system from time to time! Nevertheless, with the advent of the petabyte age, some pictures are starting to emerge. It seems like we make decisions in a more predictive manner than we previously thought. Serendipity and inventiveness are actually rare, and most of us are remarkably simple creatures, responding to the world in a predictable manner.

Can we code these deterministic responses into law? Although I would like to answer no, my logical brain says yes. But what do I know, I have some shameful songs in my iPod.

Thursday, September 11, 2008

Ontological insecurity

You know you've been to too many conferences...


...when your office wall looks like this.

Wednesday, September 10, 2008

DRM fails. Again.


I am feeling a bit cyclical (and cynical) this week. Amusing copyright case from the States? Check. Scientologists unleashing havoc? Check. Underwhelming Apple keynote? Check. The end is nigh? Check. Perhaps I've been infected by Cascio's cynicism (thanks panGloss).

I've been reading that DRM has delivered us with yet another fail in the shape of the game Spore. Players have been complaining about a system that does not allow users to install more than three times, not even counting uninstallations, or any other emergency backup. When will developers realise that stringent DRM does not work?

Anyway, back to enjoy breakfast before they turn on the Large Hadron Collider. It is the end of the world as we know it, and I feel fine.

Tuesday, September 09, 2008

JK Rowling wins Lexicon case

Edinburgh University honorary graduate Joanne Kathleen Rowling (right) has won her case against Steven Vander Ark, the author of the Harry Potter Lexicon (the site is now down). I have been following this case with interest, as I believe it is a prime example of the growing conflict between traditional copyright owners and fans generating their own content based on existing material. My opinion has been that while content owners are usually happy to allow fans to tinker with the source material, they will sue if the fan crosses the commercial line.

The facts of the case were rather straightforward. Steven Vander Ark maintained the website called the Harry Potter Lexicon for several years, amassing an impressive amount of background information about every single aspect of the Potterverse. The Lexicon proved to be such a good resource that it was reputedly used by Warner Bros in their Harry Potter productions. However, when Vander Ark made a book deal with obscure publisher RDR Books to turn the Lexicon site into a reference tome, Rowling sued for copyright infringement faster than you can say "Expelliarmus". The Lexicon argued that this was a derivative work, a reference based on the original, and therefore fell within fair use.

The U.S. Disctrict Court of the Southern District of New York has now granted an injunction against the Lexicon. The main legal question at the heart of the District Court's reasoning was whether the Lexicon was merely a reference guide to a work of fiction (and therefore a derivative work under American copyright law), or if it lacked originality and infringed JK Rowling's works. The District Court first tried to determine the nature of the Lexicon:

"The Lexicon entries cull every item and character that appears in the Harry Potter works, no matter if it plays a significant or insignificant role in the story. [...] Each entry, with the exception of the shortest ones, gathers and synthesizes pieces of information relating to its subject that appear scattered across the Harry Potter novels, the companion books, The Daily Prophet newsletters, Famous Wizard Cards, and published interviews of Rowling. The types of information contained in the entries include descriptions of the subject’s attributes, role in the story, relationship to other characters or things, and events involving the subject. Repositories of such information, the entries seek to give as complete a picture as possible of each item or character in the Harry Potter world, many of which appear only sporadically throughout the series or in various sources of Harry Potter material."
This seems like an impressive undertaking, with considerable work and thought going into it ("sweat of the brow" anyone?) The District Court agreed that this was akin to the many reference works accompanying other multi-volume Fantasy series, such as The Lord of the Rings and Narnia. However, the court found some problems with the Lexicon, namely:
"Although it is difficult to quantify how much of the language in the Lexicon is directly lifted from the Harry Potter novels and companion books, the Lexicon indeed contains at least a troubling amount of direct quotation or close paraphrasing of Rowling’s original language. The Lexicon occasionally uses quotation marks to indicate Rowling’s language, but more often the original language is copied without quotation marks, often making it difficult to know which words are Rowling’s and which are Vander Ark’s."
The District Court analyses leading case law in the issue of transformative and derivative works (such as Castle Rock Entertainment v. Carol Publishing Group). The District Court agreed with the defendants that the Lexicon conveyed “new information, new aesthetics, new insights and understandings” as defined in Caste Rock. However, the court points out that:
"The transformative character of the Lexicon is diminished, however, because the Lexicon’s use of the original Harry Potter works is not consistently transformative. The Lexicon’s use lacks transformative character where the Lexicon entries fail to “minimize the expressive value” of the original expression. A finding of verbatim copying in excess of what is reasonably necessary diminishes a finding of a transformative use. As discussed more fully in analyzing the “amount and substantiality” factor, the Lexicon copies distinctive original language from the Harry Potter works in excess of its otherwise legitimate purpose of creating a reference guide."
In other words... plagiarism! The Lexicon's undoing may be the very lack of originality displayed by the copy-and paste culture.

While I was naturally sympathetic to Vander Ark and the Lexicon, the injunction is very persuasive in its reasoning. However, it must be noted that American originality thresholds are higher, and I wonder if a different decision might have been reached this side of the pond.

Anyway, Rowling has taken her wand and said Avada Kedavra! The Lexicon drops dead.

Monday, September 08, 2008

Scientology misuses copyright. Again.

Scientology has had a long and interesting history at the courts in using copyright law to remove content which it deems infringes its rights (*cough*censorship*cough*). Scientologists have repeatedly used copyright law in order to remove most references to aliens, Xenu, volcanoes, and DC-10 planes from public debate by alleging that many documents and depictions of scientologist beliefs are actually infringing its copyright.

Now the EFF reports that those whacky scientologists are at it again by issuing several DMCA take-down notices to several channels which criticise scientology.

It is sad that a movement needs to rely on preposterous copyright claims in order to keep what they actually believe from the public. But then again, there is reason to hide the fact that Scientologists believe in Xenu, the alien ruler of the Galactic Confederacy, who 75 million years ago brought billions of people to Earth, stacked them around volcanoes and blew them up with hydrogen bombs. I mean, if word of this got out, they could not charge people for the secret, right?

Thursday, September 04, 2008

Browser Wars and faulty EULAs

The browser wars have just gotten a bit more interesting with the release of Google Chrome. While I am too addicted to Firefox, Chrome appears to be an interesting experiment. However, the Chrome EULA raised some eyebrows, as it contained the following clause:

"11. Content licence from you
11.1 You retain copyright and any other rights that you already hold in Content that you submit, post or display on or through the Services. By submitting, posting or displaying the content, you give Google a perpetual, irrevocable, worldwide, royalty-free and non-exclusive licence to reproduce, adapt, modify, translate, publish, publicly perform, publicly display and distribute any Content that you submit, post or display on or through the Services. This licence is for the sole purpose of enabling Google to display, distribute and promote the Services and may be revoked for certain Services as defined in the Additional Terms of those Services."
Wait a second... this is a browser, right? How on earth did someone at Google figure that they would be getting a licence for content placed on the browser?

Thankfully, the licence has now been ammended to read:
"11.1 You retain copyright and any other rights that you already hold in Content that you submit, post or display on or through the Services."
Crisis averted then, but it must be said that Google's lawyers should have looked at this a bit more closely. Someone seems to be a bit too busy with the Viacom suit.

Friday, August 29, 2008

How to stop piracy?

I think that everyone can agree that one of the problems with piracy is that it may have negative effect on some musicians. There is evidence that the music industry has become more reluctant to sign new acts and is relying on old names to stay afloat; and some small and medium artists have seen their works pirated indiscriminately. While we have become immune to pleas against music downloading from big names in the industry, it seems like the new marketplace is in turmoil. for example, CD sales continue to drop in the States, while they seem to go up in the UK. Similarly, P2P seems to affect established names, while it may benefit smaller acts. Meanwhile, Radiohead continues to innovate with their forward-thinking delivery methods.

What to do? It seems evident that the big stick strategy is not working. P2P enforcement is uneven, it has not stopped infringers, and most importantly, it seems to be targeting innocent users. Similarly, DRM is not the solution (mini-rant: whoever thought that DVD regions were a good idea? I had to spend hours hacking my MacBook's DVD protection to watch a legitimately purchased copy of War Games!).

One thing is clear to me. While in Costa Rica, I have been struck by the vibrant local music industry. Some artists are doing reasonably well for the market, including the amazing Malpaís. While this group is very popular with the download generation, their records are selling remarkably well. Apparently, buying th record has become an important part of being a Malpaís fan. The solution then has not been one of enforcement, it has been one of social awareness. I put forwrd then that the solution to piracy is to empower the consumer, just like Radiohead is doing. There are other schemes to invest in new bands, proving that the solution is in empowering the fan base.

I'm a bit tired, so I will not be issuing a pithy one-liner today.

Thursday, August 28, 2008

Internet memes against copyright term extension

I found this wonderful timeline of Internet memes yesterday, so many happy memories of hours wasted in front of a YouTube screen... but I digress. I have been frustrated by the seemingly unstoppable war on evidence waged by copyright policymakers, a frustration made worse by the nagging certainty that there is nothing we can do to stop term extension. However, watching those internet memes got me thinking about the power of the Internets in conveying ideas in a fun and viral manner.

Therefore, I would like to suggest that we unleash the power of memes in service of the copyfight. Do you oppose term extension? Kill a Mentos! Record it, upload it, blog about it, Facebook it, Flickr it, Twitter it.

I'm off to the shops to buy some diet soda and some chalky mint sweets.

Wednesday, August 27, 2008

Evidence-based copyright policy? No thank you!

Some years ago, James Boyle made a compelling case in favour of evidence-based policymaking in an article attacking the European database right. Since then, I have become a strong believer in injecting some empirical evidence into copyright debates that are often filled with anecdotes of starving artists, scaremongering tales of decreasing sales, and misleading myths about the creative industries.

Back in July the EU Commission decided to support term extension for copyright in sound recordings despite all the evidence to the contrary. In the truest and finest tradition of evidence-free decision making, the Commission has used a tried and tested collection of baseless soundbytes to support their choices. The Commission tells us that:

"The extended term would benefit performers who could continue earning money over an additional period. A 95-year term would bridge the income gap that performers face when they turn 70, just as their early performances recorded in their 20s would lose protection. They will continue to be eligible for broadcast remuneration, remuneration for performances in public places, such as bars and discotheques, and compensation payments for private copying of their performances."
The problem with this argument is that the facts do not back up the assumptions behind it. For example, the Gowers Review of Intellectual Property came strongly against term extension for sound recordings after commissioning a report dealing specifically with the economic evidence for and against extension. The report concluded that "the case for an extension of the copyright term in sound recordings to be weak." More importantly, the report found that increasing term extension would be detrimental for the UK's balance of trade, and it would increase costs to consumers between £240 and £480 million GBP.

Just in case the above report did not constitute enough evidence, the European Commission actually paid for another report from the influential IVIR in Amsterdam. The report answers the arguments put forward by content owners one by one: extending terms further than 50 years will not encourage more production; it will not make any difference to investments by the record industries; and it will erode the public domain. The report concludes then that "[t]he authors of this study are not convinced by the arguments made in favour of a term extension." Strong words indeed.

On top of these reports, a number of UK-based IP academics issued a considered look at the existing evidence (and then wrote an open letter in The Times), and made another strongly-worded statement against enhancement. Particularly, it was felt that the issue of fees is not one of copyright, but one of contract. Most artists get their remuneration from initial contracts with record industries, and as such, the amount that these artists would gain from extension would be minimal or negligible. This report states that:
"We have seen no evidence that living artists as a whole would benefit decisively from an extension of exclusive rights held by record companies. The benefits will fall to those who need it least: already wealthy performers, and their estates and record companies. In fact, in as much as innovative musicians are users of existing recordings, their artistry will be hindered, not enabled, by extension."
This seems like quite a considerable amount of evidence against extending terms for sound recordings. Yet, the Commission ignored all of it, and went for the extension. Bernt Hugenholtz, the academic behind the EU report, has been generating buzz in the blogosphere by pointing out that this is an unacceptable state of affairs. In an open letter to the Commission, he states that:

"As you are certainly aware, one of the aims of the ‘Better Regulation’ policy that is part of the Lisbon agenda is to increase the transparency of the EU legislative process. By wilfully ignoring scientific analysis and evidence that was made available to the Commission upon its own initiative, the Commission’s recent Intellectual Property package does not live up to this ambition. [...] In doing so the Commission reinforces the suspicion, already widely held by the public at large, that its policies are less the product of a rational decision-making process than of lobbying by stakeholders. This is troublesome not only in the light of the current crisis of faith as regards the European lawmaking institutions, but also - and particularly so - in view of European citizens’ increasingly critical attitudes towards intellectual property."

This is indeed a sad resolution to the consultation process. In the past, copyright policy has been drafted only with content owners in mind. We have become accustomed to undemocratic policymaking that pays no heed whatsoever to evidence, and simply responds to the skewed opinions of a few artists protesting about the loss of revenue and spouting whatever emotional argument will boost their current lobbying effort. I seriously thought that with the Gowers Review ad the Lisbon agenda the status quo would change, and we may start getting at least some more rationality and consideration in new directives. I guess that my optimism was misplaced, and we are back to the same old one-sided debate.

If the Commission intends to continue drafting policy to please content owners, at least they should abandon their facade of balance and save themselves the bother and cost of commissioning research which they will later ignore. It will also save me the bother of writing a long rant.

Tuesday, August 26, 2008

Gratz to the catz

I would like to congratulate the IPKat for winning Computer Weekly's Blog Awards for the IT Law and Governance category. I had already predicted that they were going to win it, so I am in no way concerned by this demonstration of cat power. Yes, there is the fact that IPKat is not technically an IT Law blog, but pointing that out would be petty and display a bitterness that I do not possess. No, I'm not bitter at all, not one bit. Bitter, moi? Nonsense! (grumble, grumble, wewasrobbed, grumble, grumble).

Monday, August 25, 2008

Class action suit against Dell

Some time ago we reported on the interesting case of pricing errors involving Dell Chile. The case has continued to develop, and now 40 consumers "affected" by the error have sued Dell for infringing Chile's Consumer Protection Law by "deceitful error inducing mistake in the price". The class action suit has been initiated by lawyer Gustavo Varas of the group problemas.cl. I don't want to be too dismissive, but looking at their website, I am reminded of the phrase "ambulance chasers".

I have already expressed my opinion of the case. To me this is a straightforward issue of contract formation and error, which in my mind invalidates the agreement. Moreover, it seems rich for the consumers to allege that some of their rights have been infringed, when it is evident that most of them contracted in bad faith, knowing well that they were faced with a pricing error. Consumer Law should protect consumers from abuse, not protect abuses perpetrated by the consumer.

Friday, August 22, 2008

Farming gold for development


(via Wiebke Abel) The BBC has a fascinating story on the astounding growth of virtual economies. Richard Heeks of the University of Manchester's Institute for Development Policy and Management has produced a report entitled Current Analysis and Future Research Agenda on "Gold Farming". The report makes for a fascinating read, and should validate the importance that many researchers like yours truly give to the regulation of virtual economies. According to the report:

"In basic terms, gold-farming is a sizeable phenomenon. The rather wobbly-legged best guesses for 2008 are that 400,000 gold farmers earning an average US$145 per month produced a global market worth US$500m; but we could easily more than double the latter to over US$1bn. There are probably 5-10m consumers of gold farming services. The main uncertainty of estimation relates to the gold-farming market in East Asia, which appears much larger than that in the US/EU. That uncertainty in part arises because gold farming operates at four levels – local, national, regional and global. We should encompass all four but, to date, the focus has been almost entirely on the global trade."
Even with the conservative estimates presented by the report, these are astounding figures. The numbers involved seem to suggest that gold farming is a valid and profitable industry, and that "playbourers" earn a decent living from it. Moreover, gold farming validates the importance of in-game economic activity by giving it a tangible value in the outside world.

This economic impact should perhaps strengthen the calls for regulatory oversight and policy examination of the role of virtual worlds in modern society. While they are still considered a form of fringe interest by the geeky classes, it is undeniable that an activity that employs 400,000 people in developing countries is worthy of examination. Isn't this a valid trade law subject? Where are the papers examining the electronic commerce implications of this phenomenon?

Richard Heeks concludes his report with an interesting plea:
"One final point. Credible analysis of gold farming can only be undertaken by researchers who play the games, and have engaged in real-money trading. With that, back to Azeroth for some more "research time". "
I concur. Unfortunately I have uninstalled WoW from my Mac laptop. Perhaps this would be a good opportunity to migrate to an American server. Does anyone have a good guild I can join?

Update: Interesting blog post on this study here.

Wednesday, August 20, 2008

Technophobic memes in the press

One of the recurring themes in this blog has been the popular depiction of technology in the media, particularly in mainstream press. It seems to me that there is a pervasive view of information technology in some sectors of the press, where new technologies are to be met with fear and distrust, and all problems presented by technologies are exposed, inspected, analysed, preached about, and stridently condemned by what I call the shrill technophobic classes.

Examples of this phenomenon are too numerous to mention, but some of my pet peeves are the blame allocated to any web technology for teenage suicides; the belief that games turn kids into violent criminals; the idea that the web is brimming with predators waiting to snatch our children away; and the excessive fear towards the powers of hackers.

Do not get me wrong, some of these fear have some justification. There have been well-documented cases of cyber-predators and groomers operating online; there seems to be a minor correlation between some violent games and aggressiveness; hacker attacks are a worrying threat to e-commerce; and some teenagers use social networking sites. However, I get particularly angry at the exaggeration of these issues in order to push a technophobic agenda that seems to condemn information technologies by distorting the actual threat these issues pose to society. For example, children are more likely to be abused by people they know, so why not direct resources to tackle that? Similarly, if there is some correlation between violent games and aggressiveness, regulators should remember that correlation does not mean causation. It is possible that violent games (and movies, literature, and other forms of entertainment) attract agressive people to begin with.

I also contend that these technophobic tendencies in the media tend to be more present in early adoption stages. The Web went through this stage, until browsing has become a fact of life. New technologies and services are met with similar distrust, Web 2.0 social networks, P2P, and many other internet phenomena have been met in their time with Luddite cries of protest, ony to become mainstream and widely accepted eventually.

I am in Costa Rica and I have been struck by the number and tone of technophobic stories warning worried parents about violent video games and grooming. Some of the depictions of the problems range from the anecdotal to the farcical. Perhaps developing societies such as this are trying to come to grips with the new technologies. It will be interesting to see if these views survive further sophistication.

Tuesday, August 19, 2008

Licence breach equals copyright infringement in U.S.

Some time ago I had talked about the case of Jacobson v Katzer, a very interesting ruling from the United States that in my view had made the argument that open source licences are contracts, and therefore breach of licence should be pursued as breach of contract.

As I wrote before, the case involved Robert Jacobsen, an open source developer participating in an open source project called Java Model Railroad Interface (JMRI), which is a model train software released it under the Artistic License. Jacobsen received a letter demanding the licence fee payments from a company named Kamind Associates, owned by Matthew Katzer, which has obtained software patents over model rail road software (particularly U.S. patent 7,216,836). Jacobsen decided to pre-empt legal action and sued Katzer first, alleging that the patent is invalid on the grounds of obviousness and for failure to meet disclosure requirements. He later amended the complaint to include copyright infringement, as he claims that his software pre-dates Katzer's. In first instance, the District Court alleged that there should be no presumption of a copyright infringement claim, and that such claim should be proven before the plaintiff can make its case. If they cannot provide evidence that such a claim may be successful in court, then the Jacobson can only rely on the contractual elements of the licence in order to seek redress; namely, the failure to place attribution notices is not enough to make a copyright claim, but a contractual one.

I was probably the only pro Open Source person who thought this was a good decision, as everybody else hated it because it contravened one of the main mantras of Free Software proponents, that OSS licences are not contracts. Katzer, who lost the case, appealed the ruling, and it made its way to the Court of Appeals for the Federal Circuit (CAFC), who have produced a decision that seems to please most people, except me of course. Lessig explains the ruling in very clear terms:

"In non-technical terms, the Court has held that free licenses such as the CC licenses set conditions (rather than covenants) on the use of copyrighted work. When you violate the condition, the license disappears, meaning you're simply a copyright infringer. This is the theory of the GPL and all CC licenses. Put precisely, whether or not they are also contracts, they are copyright licenses which expire if you fail to abide by the terms of the license."
Interestingly, Creative Commons, the Open Source Initiative, the Linux Foundation, Wikipedia Foundation, and others, presented an amicus curiae against the District Court reasoning. In this document the amici claim that "it would be enormously beneficial to public licensing for this Court to state clearly a rule regarding the importance of interpreting public licenses in a manner consistent with their unique nature and federal copyright policy."

The ruling makes for some interesting reading, and the CAFC has accepted the reasoning presented in the amicus curiae highlighted above. The CAFC says that:
"In this case, a user who downloads the JMRI copyrighted materials is authorized to make modifications and to distribute the materials Aprovided that the user follows the restrictive terms of the Artistic License. A copyright holder can grant the right to make certain modifications, yet retain his right to prevent other modifications. Indeed, such a goal is exactly the purpose of adding conditions to a license grant. The Artistic License, like many other common copyright licenses, requires that any copies that are distributed contain the copyright notices and the COPYING file."
The CAFC has to be congratulated for understanding the basic concepts behind open source licensing. In various passages, they clearly "get" the basis of the movement and the underlying rights. The CAFC has delivered the highest instance recognition to open licences, which is another encouraging sign. However, I am still somehow unconvinced by divorcing licences from the issue of contracts (at least in the United States). The main problem that I've always had with looking at licences as something separate from contracts is that they may have some unwanted results. For example, if all breach of licences are to be treated as copyright infringement, we may end up with decisions that retroactively apply such infringement, such as the recent Blizzard v MDY.

Nevertheless, this is a ruling that will boost the enforceability of all types of licences, not only open ones. I am attending a software conference in Costa Rica, and I heard from a Microsoft lawyer that they were very pleased with the ruling as it turns EULA licence breaches into copyright infringements. However, the ruling has no relevance in Civil Jurisdictions.

As a shallow aside, it seems like the new term to refer to open licences is "public licences". I shall now have to tinker with my blog tags.

Friday, August 15, 2008

SCRIPT-ed August 2008


The Editorial Board of SCRIPTed - A Journal of Law, Technology & Society is pleased to present its 18th issue, which addresses issues ranging from challenges in medical research governance in Korea, to pharmaceutical litigation (an assessment of the Novartis case in India), to data-protection of administrative records, to privacy in the age of sophisticated location-based technologies, to governance of the mobile communication sector in Korea and US, to a follow-up on our very popular Pistorius and the Olympics article, and more. To see the August 2008 issue, click here or on the cover. To see previous issues, go to Archived Issues.

In this issue:

Editorial

  • The Xenotext Experiment
    Christian Bök, pp.227-231

Reviewed Articles

  • The “Efficacy” of Indian Patent Law: Ironing out the Creases in Section 3(d)
    Shamnad Basheer & T. Prashant Reddy, pp.232-266
  • A Tale of Two Standards: Drift and Inertia in Modern Korean Medical Law
    Shawn H.E. Harmon and Na-Kyoung Kim, pp.267-293
  • How to Get There From Here: Re-use Of Administrative Records In The Netherlands And The UK
    Catherine Heeney, pp.294-308
  • Deep Impact On The Mobile Communications Market: A Case Study In Applying The Regulatory Rules To Assess A Proposed Enterprise Combination
    Jongho Kim, pp.309-374
  • Reasonable Expectations of Geo-Privacy?
    Sjaak Nouwt , pp.375-403
Analysis
  • “Just One of the Challenges of 21st-Century Life”: Oscar Pistorius in the Court of Arbitration for Sport
    David McArdle, pp.404-413
  • A Closer Look at the Canadian Copyright Act: Can Corporations Hold Moral Rights?
    Emir A C Mohammed, pp.414-418
  • The Internet: Where Did IT All Go Wrong?
    Robert Schifreen, pp.419-427
Reports
  • Institute for Science, Ethics and Innovation (iSEI)
    Muireann Quigley and Sarah Chan, pp.428-431
Book Reviews
  • Biotechnologies And International Human Rights
    By Francesco Francioni (ed.)
    Reviewed by Amina Agovic
    , pp.432-433
  • Defending The Genetic Supermarket: The Law And Ethics Of Selecting The Next Generation
    By Colin Gavaghan
    Reviewed by Eva Asscher
    , pp.434-437
  • Patents, Inventions And The Dynamics Of Innovation: A Multidisciplinary Study
    By Roger Cullis
    Reviewed by Rosa Maria Ballardini
    , pp.438-439
  • Law And Internet Cultures
    By Kathy Bowrey
    Reviewed by Amanda Harmon Cooley
    , pp.440-443
  • Wired Shut: Copyright And The Shape Of Digital Culture
    By Tarleton Gillespie
    Reviewed by Michael Holloway
    , pp.444-446
  • Property In The Body: Feminist Perspectives
    By Donna Dickenson
    Reviewed by Remigius N. Nwabueze
    , pp.447-448

Wednesday, August 06, 2008

The hackers strike back

Hacking is back in the news. The BBC reports that hackers in the U.S. infiltrated the computer networks of several companies and stole over forty million credit and debit card numbers. What is unusual about the case is that the hackers targeted their victim's secure wireless access points, and therefore gained access to the internal network.

This case highlights the problems posed by wireless networks. We have know for a while that wi-fi is a convenient yet insecure technology, as it opens systems to any passer-by with the know-how. There is not only the problem of piggybacking, but leaving computer systems and transactions open to interception.

The law already protects such type of hacking adequately, be it through "traditional" anti-hacking legislation, or normal fraud law. The issue then becomes one of law enforcement, evidence and cyber-security. Firms with large wireless networks should be aware that it opens their systems, and therefore the security should take into account that a hacker in the parking lot may have access to sensitive files.

And to top up hacking news, the Beeb also reports also that hackers are targetting Twitter by including trojans in viral video links. As a smug Mac user, I have to point out that this vulnerability only affects Microsoft machines.

Monday, August 04, 2008

Of trolls, anonymity and online norms

The nature of good and evil is not the usual TechnoLlama topic, but I have been thinking a lot about what makes people evil after reading the article in the New York Times entitled "The Trolls Among Us". This is a disturbing and compelling look at certain online communities that proudly dedicate themselves to trolling. In common internet lingo, a troll is a person who makes a deliberately incendiary comment in order to elicit an emotional response. As an old hand at internet forum moderation, trolling is a given, a fact of life as immutable as qwerty keyboards and Estonian hackers.

Many people buy the idea that the internet gives users seemingly tight anonymity. This belief, unjustified as it is, tends to create a particularly obnoxious class of netizen which revels in other people's suffering. I have often believed that the internet allows people to show who they really are, and often the picture is not pretty. As the much cited Greater Internet Fcukwad Theory predicts, a anormal person can become a troll when presented with the prospects of anonymity and an audience.

What does this have to do with evil? I believe that there is something happening in those online comunities that can tell us a lot about human nature. True, some of the actions of internet trolls are annoying, puerile, infantile, and often harmless, so why tar them with the big E word? Some of these people do whatever they do for "lulz", for fun, so where is the damage? There are several examples of nasty behaviour online, ranging from the disgusting case of some trolls emailing and phoning the parents of a teenager that committed suicide, to the outright strange case of Lori Drew. There is something clearly wrong with people who perpetrate such actions, but what I find most interesting is that there seems to be a large element of peer-pressure, community reinforcement, and ad hoc reasoning for the action undertaken by trolls. Most of these actions seems prompted by earning some form of community recognition in the troll underground sites, currency in the shape of "lulz". Trolls seem to get enjoyment from the juvenile act of telling other trolls of their exploits, thus reinforcing each others actions as normal. It is a well-documented phenomenon that peer approval is a very important factor in determining behaviour, and that criminal and "evil" behaviour is usually the result of community feedback. "Everyone else is doing it" quickly turns into "I was just following orders".

Some of the actions described in the NYT article may seem inoffensive social experiments, such as a blog saying that suicide victim "had it coming". Others range on the downright criminal, such as hacking email services, bank accounts an flooding phone numbers. One of them seems to defend his actions as a way of social service. He does hurtful things, but if people get offended it is not his fault, it is the victim's fault for taking offence in the first place.

Should the law enforce trolling? I am quite shocked that some of these people wilfully describe their actions to the press, when in many instances they could constitute criminal offences. Certainly, some type of trolling seems indistinguishable from hacking. Nevertheless, as long as the internet remains largely anonymous, the homo orcus will continue to inhabit the dark spaces under the information superhighway.