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Professor Fisher and the Red Eye
posted by mpawlo on Monday August 04, @08:43AM
from the opinion dept.
Copyright According to the Encyclopaedia of Arda, Sauron built the Barad-dûr, the dark tower of Sauron. From the highest tower of Barad-dûr, Sauron kept an unceasing watch on the lands and kingdoms of Middle-earth with the all-seeing Red Eye. Sounds scary? Professor William W. Fisher, III, has just presented a proposition that is to copyright what Sauron’s Red Eye was to the citizens of Middle-earth.



Professor Fisher proposes a system where ‘the creator of a recording would register it with the U.S. Copyright Office and would receive, in return, a unique file name, which would be used to track Internet transmissions of the work. The government would tax devices and services used to gain access to digital entertainment. The primary target of such a tax would be ISP access.’

Professor Fisher is both right and wrong. The biggest flaw in his proposal is the implied digital rights management system (“DRM”). Even though the DRM system proposed by Professor Fisher sounds like a reasonable one, it has the same grim implications as did Sauron’s all-seeing Red Eye in the books by J.R.R. Tolkien. You can not be a little bit pregnant. You can not have a little bit DRM. Still, you do not need DRM to create a compulsory licensing systems. You will be able to calculate ratings based on statistics, not much unlike the Nielsen system for television ratings. A compulsory licensing system as such is better than prohibiting filesharing. It is probable that a lot of the filesharing is a result of music having little demand-elasticity. There is no room for higher prices on CDs and some of the extensive copying and the slumping sales in the industry could probably be explained by prices being to high, setting a stop in the demand-curve. Still, it is hardly acceptable to just sit and watch the rise of illegal filesharing. So – how should the consumer’s demand for music be met with law and policy?

Prohibition of filesharing would not solve this problem, because people would still not be able to buy more music because of the demand-elasticity problem. On the contrary, prohibition might create a black-market, which is happening with Kazaa-music-trades. Prohibition will also possibly erode the public trust in copyright. I believe we need copyright. Copyright creates an incentive for large-scale productions and possible means for return on investment in the intellectual property. However, a too strict copyright regime will ultimately make consumers turn to the black-market and disregard copyright. For example, if the current proposal to a new copyright act in Sweden is enforced (based on the same WIPO principle’s as the Digital Millennium Copyright Act), you will not be allowed to copy the Robbie Williams CD you have purchased to play it in the car, should the CD contain copy-protection and you want to keep the original CD in your home stereo equipment. However, you are allowed, according to the proposal, to copy the CD to play it in the car, should the CD not contain copy-protection. In practice, most CDs will contain copy-protection under this proposal, why the copy in the car will be illegal, although within the scope of fair-use. This kind of flawed logic will hardly increase the public’s understanding of copyright and why it is important. Professor Fisher’s proposal deals with this problem in a marvellous way, also embracing new technology and making it possible to create new ways of digital distribution. However, Professor Fisher’s proposal also poses a potential danger to privacy comparable to Sauron’s Red Eye and this is why we would be better off using levies instead of the system proposed by Professor Fisher. Levies are a fee that increases the price of recordable media, such as CD-Rs. The fee is distributed to copyright proprietors by the collecting societies, that is organisations representing copyright proprietors.

Levies are not a perfect system. Levies will not compensate copyright proprietors and creators of “smaller”, lesser-known works. Actually, it is more probable that Britney Spears get a cut than I will, should you decide to save this article on a CD-R. Hence, all music artists will not be duly compensated through levies and some use – such as streaming – will never be subject to levies. However, the price of levies is one that I happily pay in order to keep my privacy. The fee will impose an uncalled for burden on people only using recording media to storage their pictures from the vacation or their free software or doing backup of their personal files. Too some extent, this could be dealt with in the construction of the levies, but not to the last mile. Some people will be unduly “taxed” by levies. But the inefficiency of levies is the brilliance of levies. I do not want anyone to monitor my individual transactions and usage of intellectual works. The digital era has a huge potential in creating omniscient bodies. Professor Fisher’s proposal would create just that – the Red Eye of Copyright. One body per country would know exactly what you were doing, reading and listening to. It would be a fair system to copyright proprietors and consumers, but only fair in respect of copyright. Privacy would be erased. The Internet would become the all-seeing eye, creating omnipotence even Sauron would envy. Is this really the kind of power we want to unleash to the RIAA?

I would personally be very happy to see a future of copyright where proprietors deal with their own problems on the free market, without the interference of regulators. It is possible to meet the black-market of filesharing with legal, commercial alternatives. Apple’s iTunes store is the proof, selling more than 5 million songs since April this year, with a very limited potential customer base. However, the regulators are already past this possibility, due to successful lobbying by the record industry. We can no longer choose to sit and wait for Apple’s iTunes and its competitors and measure their joint success in commercially fighting illegal downloads, because of WIPO’s Copyright Treaty and the subsequent Digital Millennium Copyright Act and the European Copyright Directive (EUCD or sometimes referred to as Infosoc).

In a world where we need to choose between different evil things, levies are the least intrusive. It is not perfect. But it works. Without bringing Sauron to my hard-drive.

Mikael Pawlo

Mikael Pawlo is an associate of the Swedish law firm Advokatfirman Lindahl. On nights and weekends he works as an editor for the leading Swedish open source and free software publication Gnuheter. He is also contributing editor of the Harvard Berkman Center publication on Internet law issues, Greplaw.org.

Please note that other Greplaw contributors might have a different take on the subject.

Zittrain on Copyright | Fritz Hollings to Retire  >

 

 
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    Professor Fisher and the Red Eye | Login/Create an Account | Top | 18 comments | Search Discussion
    Threshold:
    The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
    Arguable, Wrong, Wrong (Score:1)
    by LuYu on Monday August 04, @04:02PM (#952)
    User #460 Info | http://grep.law.harvard.edu/
    The RIAA is right about three things. First, under current copyright law, the behavior of the file swappers is illegal.

    This is arguable first because most copyright violations are a civil issue and second because the volume of copying and how the copies are used has a direct impact on how the laws are applied. It is only a criminal issue when the volume exceeds a certain standard or copying is done for profit. If it is not a criminal issue, it is not illegal per se.

    Second, partly (although only partly) as a result of the ubiquity of file swapping, the music industry is in crisis. CD sales continue to decline, record company revenue is falling at an accelerating pace, and many music retailers are going out of business.

    There has been no conclusive evidence to prove that fileswapping has anything to do with the music industry's problems. Filesharing is more of a scapegoat in the industry's desperate bid for the reassertment of its monopoly of music distribution. Price fixing, bad customer relations [boycott-riaa.com], bad product offerings (think eminem... if you dare), the current economy, and a host of other things can all be resonably suspected of causing the the industry's decline.

    Third, among the groups threatened by this crisis are the creators of music--the composers and performers.

    This is also not likely. According to Boycott-Riaa.com [boycott-riaa.com]:

    ... 85% to 90% of all artists signed to the major labels will never receive 1 cent from their label in royalties for the music they created.

    The "I" in RIAA stands for "industry" not "artists". You can only be threatened with losing something you have. If copyright does not benefit the artists, what is its purpose?

    So, more or less, the RIAA is wrong about three things, but that is okay, they have the money and influence to force their arguments to be right. The basis for the entire argument made by Professor Fisher is flawed, so the rest of his argument is just a solution to a problem that does not exist. Remember, to understand the ultimate answer, one needs the ultimate question (it looks like I have taken a turn at paraphrasing :). It seems as if Professor Fisher has neither.

    "Anyone who doesn't quote me is paraphrasing."
    [ Parent ]
    Wow, I did not expect that (Score:1)
    by LuYu on Monday August 04, @04:30PM (#954)
    User #460 Info | http://grep.law.harvard.edu/

    I got stuck on that introductory paragraph, but after reading the rest of the essay, I see that this Professor Fisher is really a communist. Everybody who listens to anything pays a portion of the total volume of songs. How is that fair?

    So, if I buy a CD burner to backup my harddrive, will I be paying a tax to subsidize some 12 year old's listening habits? What if I want to boycott the music industry and still backup my harddrive? What do I do then? Carve the data into a rock?

    Not only that, but once you get the government involved with this large amount of revenue, how does one avoid graft and theft? Or the inclusion of it into income tax law? Then what happens? Do I go to jail if I did not purchase my quota of music for the year? Can I be audited?

    This guy is smoking crack with a fat pipe.

    "Anyone who doesn't quote me is paraphrasing."
    [ Parent ]
    There is no red eye (Score:0)
    by Anonymous Coward on Monday August 04, @06:29PM (#956)
    (reposting from my pho message)

    Dear pho and Mikael,

    My name's Derek Slater, long time reader, first time poster.

    Mikael's criticisms are clever, but they seem to discuss a different system than Fisher's.

    First, Professor Fisher's proposal most certainly does not "monitor my individual transactions and usage of intellectual works." There is no Red Eye. Fisher intends to monitor downloads and streams, but not each individual use of digital media. In his latest draft of the model (see http://cyber.law.harvard.edu/people/tfisher/PTKCha pter6.pdf), he only goes as far as suggesting voluntary surveys to get a sense of how many times a given work is consumed. None of this would be automated or required via any software or media device, and I do not believe he has ever suggested otherwise. (In previous drafts, Fisher had also noted that sampling could be done at the router level, see: http://blogs.law.harvard.edu/cmusings/stories/stor yReader$14)

    Certainly, monitoring downloads and streams can be privacy invading, too, but no more privacy invading than accessing webcasts today or typical credit card purchases of CDs. Though all of that can be recorded and attributed to you in some fashion, there is nothing in Fisher's model that would require such recording. All statistics could be completely anonymous.

    Second, I'm a little confused by Mikael's misgivings about Fisher's DRM. What DRM? In the conventional sense of the term, Fisher's plan has none - there are no restrictions on use or copying. There is a watermark that allows downloading and streams to be counted, but that's a matter of digital rights expression.

    Finally, I am also confused by Mikael's desire for "levies," whatever that may mean. Fisher's plan involves levies on recording devices and ISPs. The difference seems to be that the levies Mikael suggest do not come with any reciprocal reduction in copyright holder's rights. File-sharing would remain infringement, fair use would still be ambiguous - I am unclear as to why a pure levy-based wealth transfer is preferable.

    I am glad more people, especially those on pho, are discussing Fisher's plan. To begin to evaluate it, we must first separate the myths from the facts. For more information, check out: http://www.hodder.org/LinkConvCompLic.htm

    Sincerely, Derek Slater http://blogs.law.harvard.edu/cmusings
    [ Parent ]
    on the issue of levies... (Score:0)
    by Anonymous Coward on Thursday August 07, @04:50AM (#979)
    While a levy might seem to be a good idea, they appear to be flawed in practice. In Canada, such a levy was placed on recordable media some years ago. They recently applied for an increase in the levy, particularly to tax high-capacity mp3 players. Now, so far this seems reasonable, as long as you're not they type of person who screams "Pinko! Let me git mah gun!" whenever you see a hint of socialism. That aspect of the debate we can leave out for now. However, in the several years the system has been in place, not one payment has been made from the collection agency to any artist or copyright holder. Let me emphasise that: years. In the mean time, they've collected C$28 million, and expect (with the increased levies) about C$100 million this year. This example should make anyone think twice about the efficacy of levies in terms of compensation for copying. The consumer does end up paying for it, but that doesn't much matter if copyright holders don't see any of that money.
    [ Parent ]
    Levies cannot work (Score:0)
    by Anonymous Coward on Friday August 08, @08:33AM (#986)
    You have glossed over a major issue - who gets the levy? Anyone who has registered a copyright? This would (i) freeze out the small guys who can't pay the fee for each item they produce and (ii) result in "google-bombing" of the copyright office by large media corporations, where income is derived by the percentage of copyrights filed. Decided by some board? Who? Criteria? I just see no way that levies make the small or large guy happy.
    [ Parent ]

    Humanity has the stars in its future, and that future is too important to be lost under the burden of juvenile folly and ignorant superstition. - Isaac Asimov

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