Japanese Students @ UW


Published on

Lecture for Japanese students visiting Seattle

Published in: Education, Economy & Finance
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Japanese Students @ UW

    1. 1. Kathy E. Gill 25 August 2008
    2. 2. <ul><li>A 10-minute explanation of US copyright … using words from one of the largest copyright owners in the world </li></ul>
    3. 3. <ul><li>What Is An Info Economy? </li></ul><ul><li>Economics 101 </li></ul><ul><li>Impact on Systems: Copyright </li></ul>
    4. 4. <ul><li>“ An economy based on the exchange of knowledge information and services rather than physical goods and services.” Australian Gov’t , Dept. Finance and Administration, 2001. </li></ul>
    5. 5. <ul><li>1963: Tadeo Umesao, Kyoto University, forecast an information industry </li></ul><ul><li>1973: Daniel Bell, Harvard, described a knowledge-based post-industrial economy </li></ul><ul><li>1981: Frederick Williams, UT Austin, said the communication revolution had arrived and expounded on the “knowledge worker” The Information Society, A Retrospective View. Dordick and Wang. 1993. </li></ul>
    6. 6. <ul><li>Post-industrial society will be “organized around knowledge for the purpose of social control and the directing of innovation and change” </li></ul><ul><li>The transformation is industrial to service </li></ul><ul><li>Anticipated tension between high-tech, intellectual work and nonprofessionals </li></ul>
    7. 7. <ul><li>1997: Bill Gates traced the computer from mainframe to personal to network. “[W]e have the most powerful communications medium of all time… And the information age is changing business in a fundamental way… [as well as] the way we entertain … and … [educate] ourselves.” Information Technology, Corporate Productivity and the New Economy, p 4 </li></ul>
    8. 8. <ul><li>Info Economy, Post-Industrial Economy, “New” Economy? </li></ul><ul><li>One definition: the new economy is an integration of free-market economies, globalization and information technology Information Technology, Corporate Productivity and the New Economy, p 9 </li></ul>
    9. 9. <ul><li>Anything that can be converted to bits, ie, digitized, is an information good </li></ul><ul><ul><li>Entertainment </li></ul></ul><ul><ul><li>News </li></ul></ul><ul><ul><li>Business Info </li></ul></ul><ul><ul><li>Software </li></ul></ul>
    10. 10. <ul><li>Telecommunications, computers, software </li></ul><ul><ul><li>Communication: E-mail, IM, TheWeb </li></ul></ul><ul><ul><li>Networks: Extranet, Intranet, Internet, LAN, WAN </li></ul></ul><ul><ul><li>Software: Expert systems, Enterprise Resource Planning, Query and Reporting, Data Mining </li></ul></ul><ul><ul><li>Networks: T1, T3, Wireless </li></ul></ul><ul><ul><li>Protocols: HTTP, FTP, VoIP </li></ul></ul>
    11. 11. <ul><li>Collapse of space and time </li></ul><ul><li>Reduction of scarcity </li></ul>
    12. 12. <ul><li>Technology optimists </li></ul><ul><ul><li>A new society without pollution; time for creative work; participatory democracy; perfect markets… </li></ul></ul><ul><li>Technology pessimists </li></ul><ul><ul><li>No new society but an increase in the divide between rich and poor; greater control over individuals; erosion of privacy… </li></ul></ul><ul><li>Technology + economics +society </li></ul>
    13. 13. <ul><li>Use whatever label you wish … the makeup of our economy has changed. </li></ul><ul><li>Information technologies and information as a good have replaced goods made of atoms and technologies resting on muscle. </li></ul>
    14. 14. <ul><li>Supply & Demand </li></ul><ul><li>Market Structure </li></ul><ul><li>Types of Goods </li></ul><ul><li>Network Effects </li></ul><ul><li>Examples/Discussion </li></ul>
    15. 15. <ul><li>Economics is the study of how people (and institutions) act in a society with limited resources (scarcity) </li></ul><ul><ul><li>The choices are more diverse than simply $$ - it’s also time, work, savings </li></ul></ul><ul><ul><li>Driving principle: that people optimize the “utility” (satisfaction) of goods and services consumed - that we are rational </li></ul></ul>
    16. 16. <ul><li>Found that two brain areas known to be part of emotional processing (the limbic system) can help predict financial choices Kuhnen & Knutson (2005) </li></ul>
    17. 17. <ul><li>Costly to produce </li></ul><ul><li>Inexpensive to re-produce </li></ul><ul><li>Economist-speak: </li></ul><ul><ul><li>High fixed costs, low marginal costs </li></ul></ul>30 June 2008 COM597 - Gill
    18. 18. 30 June 2008 COM597 - Gill Rival Non-Rival Excludable <ul><li>Most consumer goods </li></ul><ul><li>Private land </li></ul><ul><li>Services </li></ul><ul><li>Single license software </li></ul><ul><li>Trade secrets </li></ul><ul><li>Multi-license software </li></ul><ul><li>Patents </li></ul><ul><li>Subscription web sites </li></ul>Non-Excludable <ul><li>Public land </li></ul><ul><li>Most roads </li></ul><ul><li>Water - rivers, lakes </li></ul><ul><li>“ Public Goods” </li></ul><ul><li>Basic research </li></ul><ul><li>Defense, police, firemen </li></ul><ul><li>Lighthouse </li></ul><ul><li>“ Open” websites </li></ul><ul><li>TV (not cable!) </li></ul>
    19. 19. <ul><li>The theory, courtesy the World Bank : Assume someone produces a valuable theorem, but it cannot be kept secret -- it must be made immediately available. Because anyone can immediately use it, there is no way for an individual to profit from creating it. So they won’t. </li></ul>
    20. 20. <ul><li>Trade Secrets (Coca Cola) </li></ul><ul><li>Patents (Amazon One-Click) </li></ul><ul><li>Copyright </li></ul><ul><ul><li>Will people create knowledge if they can’t charge for it? </li></ul></ul><ul><ul><li>WB says No. </li></ul></ul><ul><ul><li>Open source movement says Yes. </li></ul></ul>30 June 2008 COM597 - Gill
    21. 21. <ul><li>DRM </li></ul><ul><ul><li>iTunes </li></ul></ul><ul><li>Subscriptions </li></ul><ul><ul><li>RealNetworks and Napster, The Economist and the Wall Street Journal </li></ul></ul><ul><li>Lawsuits </li></ul>30 June 2008 COM597 - Gill
    22. 22. <ul><li>Global economy is increasingly reliant on information technologies and information </li></ul><ul><li>Firms in this sector have a different cost structure than traditional goods/sectors like agriculture or manufacturing </li></ul>30 June 2008 COM597 - Gill
    23. 23. <ul><li>The products in this sector have characteristics of a public good -- the antithesis of a scarce, excludable good </li></ul><ul><li>Thus information technology is disruptive, economically and socially </li></ul>30 June 2008 COM597 - Gill
    24. 25. <ul><li>These technologies change how we interact with (digital) cultural objects. </li></ul>
    25. 26. <ul><li>We are no longer merely a consumer. </li></ul><ul><li>We can also be a producer. </li></ul>
    26. 30. This means it is technically easier to express ourselves in new, creative ways.
    27. 31. <ul><li>SuperBowl Commercials </li></ul><ul><li>YouTube Democratic Presidential Debate </li></ul><ul><li>An Introduction To Sumo </li></ul><ul><li>Free Science Videos and Lectures </li></ul><ul><li>s </li></ul>30 June 2008 COM597 - Gill
    28. 32. <ul><li>Culture as a freely flowing current of ideas and practices runs head first into culture as intellectual property </li></ul>
    29. 33. <ul><li>A Long Time! </li></ul><ul><ul><li>In 1709, copyright lasted 14 years </li></ul></ul><ul><ul><li>Prior to 1923, content is public domain (probably) </li></ul></ul><ul><ul><li>After 1978, the life of the author + 70 years OR work-for-hire, 95 years from publication or 125 years from creation </li></ul></ul><ul><ul><li>Between 1923 and 1978 ??? … talk to a lawyer! </li></ul></ul>
    30. 36. <ul><li>&quot;Copyright infringement&quot; means exercising one of the copyright holder's exclusive rights without permission. </li></ul>
    31. 38. <ul><li>Copyright purpose is to “ promote the progress of science and the useful arts ” … and the duration for exclusivity is to be “ limited ” … - US Constitution </li></ul>30 June 2008 COM597 - Gill
    32. 39. <ul><li>Digital technologies enable a &quot;Tinkering culture&quot; -- a &quot;read write rip burn culture” </li></ul><ul><li>This culture is butting heads with institutions that own “IP” – it’s an economic and cultural clash </li></ul>
    33. 40. <ul><li>The Inkjet Printer, from The Economist. (2002) http://emlab.berkeley.edu/users/bhhall/e124inkjetprinter.html </li></ul><ul><li>The Invention of Email, from Pretext Magazine (1998) http://emlab.berkeley.edu/users/bhhall/e124emailinvention.pdf </li></ul><ul><li>Science and Engineering Indicators (2002) National Science Board. http://www.nsf.gov/sbe/srs/seind02/start.htm </li></ul>30 June 2008 COM597 - Gill
    34. 41. <ul><li>Timothy F. Bresnahan. “The Economics of the Microsoft Case.” http://www.stanford.edu/~tbres/Microsoft/The_Economics_of_The_Microsoft_Case.pdf </li></ul><ul><li>Cory Doctorow. “How Copyright Turned Us Into IP Serfs.” Speech, University of North Carolina, Chapel Hill. 22 February 2007. http://www.youtube.com/watch?v=NkBX-981_es </li></ul><ul><li>Nicholas Economides. “The Economics of Networks,” International Journal of Industrial Organization, October (1996) http://www.stern.nyu.edu/networks/top.html </li></ul><ul><li>Tore Nilssen and Lars Sørgard. “TV Advertising, Programming Investments, and Product-Market Oligopoly” http://www.nhh.no/sam/res-publ/2000/dp06.pdf </li></ul><ul><li>Frank Zappa on Crossfire, 1986. http:// www.youtube.com/watch?v =8ISil7IHzxc </li></ul>30 June 2008 COM597 - Gill