Mac309 Compete With Piracy

The Pirate’s Dilemma: Compe3ng with piracy MAC309 1

‘War on piracy’ •  Aggressive rhetoric of the content industry in recent years •  Adamant that piracy ‘threatens’ the ‘survival’ of culture/media industries •  Policing of alleged copyright infringement via legisla3on •  Extension of copyright terms 2

Can the war be won? •  Maybe not… •  If that is the case, what can be done? •  Wage a more vigorous war and make examples of kids? •  Rethink through how copyright works in a digital future? 3

Piracy as ‘punk capitalism’ •  Piracy can mean illegality •  Piracy can also mean innova3on •  Piracy will not go away, so how should it be confronted? •  Copyright law not ﬁt for purpose –  (see Lessig, 2004, 2006, 2008; Mason, 2008; TapscoW & Williams, 2008) 4

Let’s go crazy •  February 2007 •  Stephanie Lenz and her 13 month old son Holden •  Uploaded video to YouTube •  Within 4 months an employee of Universal Music Group saw it and wrote to YouTube •  Video was taken down See Lessig 2008 5

Let’s go crazy •  Quality? •  Detrac3ng from sales? •  EFF took up the case and filed a counter‐no3ce against Universal •  Universal’s lawyers refused to back down •  Risk fine of $150,000 •  Is this worth Universal’s while? •  hWp://www.eff.org/deeplinks/2008/08/judge‐ rules‐content‐owners‐must‐consider‐fair‐use‐ 6

Copyright history USA 19th Century •  Founding fathers ignored European patents •  USA known as bootleggers •  Referred to as ‘Janke’ (Dutch for ‘pirate’) •  William Fox ﬂed to West Coast form New York •  to avoid Edison’s expensive patents –  (Mason, 2008: 36‐7) 7

Copyright history John Philip Sousa •  Composer •  June 1906; Library of Congress •  Tes3ﬁed about the state of •  copyright 8

New technologies; old laws •  Player piano; gramophone •  Mechanical music had copied original work •  Ar3sts weren’t reimbursed •  Sousa pushed for copyright law to go further (but with limits) 9

•  “When I was a boy … in front of every house in the summer evenings you would ﬁnd young people together singing the songs of the day or the old songs. Today you hear these infernal machines going night and day. We will not have a vocal cord [sic] lep. The vocal cords will be eliminated by a process of evolu3on, as was the tail of man when he came from the ape” •  Cited in Lessig, 2008: p24‐5 10

Technology transformed our relaBonship to culture Amateur Consumer 11

Technologies of consumpBon •  Culture would be –  less inclusive –  less crea3ve –  less par3cipatory –  less democra3c –  the preserve of an elite •  Instruments were tradi3onally taught •  Love of music developed through learning 12

20th century •  Cultural produc3on con3nued to be professionalised •  Huge growth in media/cultural industries •  Decline in par3cipa3on 13

Successive technologies of consumpBon 1900 Sheet music/live instruments Player piano/gramophone Radio/television Tapes/CDs Video/DVD 2000 Value? $626 billion 14

•  Once again, new digital technologies are transforming our rela3onship with culture. 15

Net GeneraBon •  “The ability to remix media, hack products, or otherwise tamper with consumer culture is their birthright, and they won't let outmoded intellectual property laws stand in their way” •  (TapscoW & Williams, 2008: 52) 16

Now? Amateur Consumer 17

Culture as a 2‐way street 18

The inﬁnite album? 20

Digital data •  Internet facilitates new forms of communica3on and data exchange –  Piracy creates chaos –  Piracy forces debate –  Piracy adds value •  Look to the example of pirates for solu3ons? 21

Copyright out of control? 22

Pirates…. 1.  Look for gaps outside the market 2.  Create a platorm 3.  Harness the power of people (ie the consumer?) 23

P2P networks Music industry 24

P2P networks Music industry iTunes 25

Music industry iTunes eMusic Amazon P2P networks 26

UK music market 1997‐2008 (millions) 200 150 100 50 Singles 0 Albums 01/01/1997 01/01/1998 01/01/1999 01/01/2000 01/01/2001 01/01/2002 01/01/2003 01/01/2004 01/01/2005 01/01/2006 01/01/2007 01/01/2008 Data supplied by The Oﬃcial Charts Company (BPI Press Release: 7th Jan 2009)

The Prisoner’s Dilemma Game theory •  Economists use to predict markets •  Developed in 1950s by RAND corpora3on •  Behaviour determined by self‐interest •  This idea has been a dominant force in •  economics, poli3cal science, military strategy, psychology, etc 28

The Prisoner’s Dilemma •  Two burglars are arrested by the police, separated and taken to the police sta3on. •  Given the following op3ons: –  Confess –  Stay silent –  Grass (aka confesses the other’s involvement) 29

The Prisoner’s Dilemma Prisoner B stays silent Prisoner B confesses Prisoner A stays silent Each serves 6 months Prisoner B goes free Prisoner A serves 5 years Prisoner A confesses Prisoner A goes free Each serves 2 years Prisoner B serves 5 years 30

•  In reality, people frequently help others out without seeking reward •  Not always self mo3vated –  Linux? –  Non‐proﬁt organisa3ons –  Chari3es –  Pirates •  Pirate spot gaps in the market place and ﬁll them 31

The Pirate’s Dilemma •  Similar to Prisoner’s Dilemma •  2 compe3ng organisa3ons in same market under threat from a powerful force (piracy) –  Eg EMI and Universal vs piracy •  How do they respond? –  Compete with each other? –  Co‐operate? –  Compete with piracy (ie innovate)? 32

The Pirate’s Dilemma Mason, 2008 Player B competes like a Player B does not pirate compete, fights piracy instead Player A competes like a • Both gain from moving • Player A gains share of pirate into new market space pirate’s market • Each becomes more • Player B loses market efficient share • Society benefits • Society gains moderate value Player A does not compete, • Player B gains share of • Both make profits in fights piracy instead pirate’s market exis3ng market but lose • Player A loses market out to pirates share • Each stays inefficient • Society gains moderate • Society gains liWle value value 33

InnovaBon? 34

Michael Masnick: The Trent Reznor case study •  hWp://www.youtube.com/watch? v=Njuo1puB1lg 39

How might the content industries go forward? •  Microsop and piracy? •  Burberry and piracy? •  Books and piracy? 49

Piracy Microsop Linux 50

Cited and related links •  Valve Exec Explains How To Compete With Piracy hWp://www.techdirt.com/ar3cles/ 20090219/1124433835.shtml •  Disney – we can compete with piracy hWp://www.zeropaid.com/news/7726/Disney+‐+we +can+compete+with+piracy •  Spo3fy Aims To Compete With Piracy hWp://www.dslreports.com/shownews/Spo3fy‐Aims‐ To‐Compete‐With‐Piracy‐99999 •  Spore: most pirated game ever thanks to DRM hWp://torrentreak.com/spore‐most‐pirated‐game‐ ever‐thanks‐to‐drm‐080913/ 53

Sources •  Lawrence Lessig, 2004, Free Culture: The nature and future of crea2vity, London: Penguin www.free‐culture.cc/freeculture.pdf •  Lawrence Lessig, 2006, Code Version 2.0, New York: Perseus hWp://pdf.codev2.cc/Lessig‐Codev2.pdf •  Lawrence Lessig, 2008, Remix: Making art and commerce thrive in the hybrid economy, London: Bloomsbury •  MaW Mason, 2008, The Pirate’s Dilemma: How hackers, punk capitalists and graﬃ2 millionaires are remixing our culture and changing the world, London: Allen Lane •  Don TapscoW & Anthony D. Williams, 2008, Wikinomics: How mass collabora2on changes everything, London: Atlan3c Books 54

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Mac309 Compete With Piracy

by Rob Jewitt on Mar 11, 2009

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Mac309 Compete With Piracy — Presentation Transcript