richard barbrook on Sun, 11 Nov 2001 21:37:23 +0100 (CET) |
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richard barbrook <richard@hrc.wmin.ac.uk> Fwd: TidBITS#602/22-Oct-01 Fwd: TidBITS#603/29-Oct-01 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - From: richard barbrook <richard@hrc.wmin.ac.uk> Subject: Fwd: TidBITS#602/22-Oct-01 Date: Thu, 8 Nov 2001 01:06:46 +0000 (GMT) ---- Begin Forwarded Text ---- >Date: Mon, 22 Oct 2001 21:00:00 -0700 >From: TidBITS Editors <editors@tidbits.com> >Subject: TidBITS#602/22-Oct-01 >To: tidbits@tidbits.com (TidBITS Distribution) >Reply-To: "TidBITS Editors" <editors@tidbits.com> > >TidBITS#602/22-Oct-01 >===================== [snip] >Steal This Essay 1: Content Is a Pure Public Good >------------------------------------------------- > by Dan Kohn > > Steal this essay, or, why these sorts of essays represent the > future of all publishing. Hint: I'm not getting paid for them. > > "Freedom of the press belongs to those who own one." > - A.J. Liebling > > If you or anyone you know has ever or will ever produce content > (writing, music, video, etc.) and hopes to get paid for it, you > should be afraid. > > To see why, start by downloading (for free, of course) one of the > numerous peer-to-peer file sharing systems such as Aimster, > LimeWire, and eDonkey2000 that have emerged hydra-like to take the > place of Napster, whose head was cut off this spring by the > Recording Industry Association of America (RIAA). You will find > that much the same selection of MP3 music that was on Napster is > still available for free, as well as being accompanied by more and > more movies ("ripped" directly from DVDs), and nearly all other > forms of content, from Shakespeare's works to hard core adult > materials. > ><http://www.aimster.com/> ><http://www.limewire.com/> ><http://www.edonkey2000.com/> ><http://www.napster.com/> ><http://db.tidbits.com/getbits.acgi?tbser=1206> > > What you will not find - even if you are the RIAA - is anyone to > sue. Because unlike Napster, there are no companies underlying the > software infrastructure, no servers to confiscate, no officers on > whom to serve papers. The next generation of peer-to-peer clients > relies on no central infrastructure whatsoever, and is being > developed by a loose knit group of developers spread around the > world, all donating their significant efforts without any real > hope of getting paid for their work. All of the developers are men > - or teenage boys - and though not following the typical societal > track toward prestige, they are just as competitive as any rival > athletes or entrepreneurs. Many are distributing their software as > open source, so anyone else can fix bugs and make improvements. > What this means is not just that the RIAA is applying makeup to > the corpse of the music industry as we've known it. In fact, it > heralds an even larger change about how all content is created and > distributed, and raises serious questions as to whether content > creators (such as the author of this essay) will ever be > compensated for our work. > > Read a few dozen articles by top technology analysts, and it is > often difficult to find one that doesn't breathlessly declare how > this or that new technology represents a sea change, an inflection > point, or the end of history. In fact, while the Internet's growth > rates have been quite high, other technologies such as radio and > gas cooking have actually been adopted faster. It may be, though, > that all of the hype surrounding the digital duplication and > peer-to-peer distribution of content actually underestimates the > impact on the authors and publishers of music, movies, and written > works. > > Put simply, in a world where there are essentially no costs to > replicate content and it is effectively impossible to stop anyone > from doing so at will, the current economic model underpinning > content creation will be dead. Despite the protestations of > lawyers, (certain) rock bands, and legislatures (all on the same > losing side, oddly enough), we are entering that brave new world. > > If, as this hard technology determinist viewpoint suggests, > content is destined to be free - i.e., the content creators and > publishers will not be directly compensated the way they are today > when you make a purchase from your local CD store - then the real > question is what system could replace the content compensation > system that has worked quite well for the last 300 years. However, > implementing revenue models for infinitely redistributable goods > is not an entirely novel question, and there are several economic > models that can support the creation of content. What there may > not be is _enough_ revenue to support the publishers of that > content in addition to the authors, which helps explain why the > RIAA is so eager to thwart digital distribution. When an ecosystem > undergoes severe environmental changes, certain organisms that > were previously essential - like the cyanobacteria that originally > converted carbon dioxide to oxygen, or the record companies' > A&R men - may recede to minor ecological niches. > > Economists have a term for what digital goods have become. Items > are "nonrival" when we can all make use of them without anyone > having to give them up. If I copy your CD, you're none the worse > for it (nonrival), but if I steal your car, you will probably be > upset (rival). Goods are "nonexcludable" when it becomes > impractical to stop everyone from making use of the item, once one > person can. It is infeasible, for instance, to stop additional > viewers of broadcast television (nonexcludable), while it is very > feasible to stop additional moviegoers from entering a theater > (excludable). Economists call nonrival, nonexcludable items "pure > public goods," although the name does not imply that public goods > can be provided only by the government. > > Lighthouses are a classic pure public good. They are nonrival > because each additional ship does not reduce the light available > to the others. They are nonexcludable because any ship sailing by > can see them. There are cases in New England two centuries ago of > shipping guilds building privately managed lighthouses, even > though the services couldn't be withheld from non-members. Most > medical research and nearly all basic scientific research today is > a pure public good, although for exactly this reason it is often > financed (at least indirectly) by the government. Other textbook > public goods are national defense, mosquito control, and public > radio. In each case, the cost of providing the item to one > consumer is the same as providing it to any number of consumers > (nonrival), and it is impractical to stop anyone from making use > of the good (nonexcludable). The table below provides some > examples. > > | EXCLUDABLE | NONEXCLUDABLE > -----------+--------------------+-------------------------------- > RIVAL | car, Walkman | unmanaged fishing rights > -----------+--------------------+-------------------------------- > NONRIVAL | movie in a movie | lighthouses, national defense, > | theater, concert | mosquito control > | in a large hall | > > If content is becoming a pure public good, it will necessitate a > radical rethinking of the recording industry's claim that copying > content is stealing. We as a society react very differently toward > the unpaid use of rival versus nonrival goods. Think of the > punishment inflicted, for example, on those who steal cars versus > those who listen to public radio without contributing to the fund > drives. Of course, whether a good is rival or not is beside the > point if you can successfully exclude people who don't pay. (Ask > Microsoft, whose cost for selling one copy of Office is > approximately the same as selling 100 million copies (nonrival), > but which has used informant tactics and large legal penalties to > make their software very excludable, at least for businesses.) > > The lawyers representing the recording and movie industry are well > aware of the threat to their business models of digital content, > and they believe they have already developed the answer: > encryption. Encryption represents the music industry's last, best > hope of maintaining their product as excludable. Why they are > wrong, and content protection is doomed to failure, will have to > wait for the next essay. > > [Dan Kohn is a General Partner with Skymoon Ventures. His writings > are announced through <dankohn-subscribe@yahoogroups.com> and can > be discussed through <dankohn-discuss-subscribe@yahoogroups.com>.] > ><http://www.dankohn.com/> ><http://www.skymoonventures.com/> > > > >$$ > > Non-profit, non-commercial publications may reprint articles if > full credit is given. Others please contact us. We don't guarantee > accuracy of articles. Caveat lector. Publication, product, and > company names may be registered trademarks of their companies. > > This file is formatted as setext. For more information send email > to <setext@tidbits.com>. A file will be returned shortly. > > For information: how to subscribe, where to find back issues, > and more, email <info@tidbits.com>. TidBITS ISSN 1090-7017. > Send comments and editorial submissions to: <editors@tidbits.com> > Back issues available at: <http://www.tidbits.com/tb-issues/> > And: <ftp://ftp.tidbits.com/issues/> > Full text searching available at: <http://www.tidbits.com/search/> > ------------------------------------------------------------------- > ---- End Forwarded Text ---- -- ___________________________________________________________________ Jeremy Quinn Karma Divers webSpace Design HyperMedia Research Centre <mailto:sharkbait@mac.com> <http://www.media.demon.co.uk> <phone:+44.[0].20.7737.6831> <pager:jermq@vizzavi.net> ------------------------ Yahoo! Groups Sponsor ---------------------~--> Get your FREE credit report with a FREE CreditCheck Monitoring Service trial http://us.click.yahoo.com/Gi0tnD/bQ8CAA/ySSFAA/GFYolB/TM ---------------------------------------------------------------------~-> Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - From: richard barbrook <richard@hrc.wmin.ac.uk> Subject: Fwd: TidBITS#603/29-Oct-01 Date: Thu, 8 Nov 2001 01:06:52 +0000 (GMT) ---- Begin Forwarded Text ---- >Date: Mon, 29 Oct 2001 21:00:00 -0800 >From: TidBITS Editors <editors@tidbits.com> >Subject: TidBITS#603/29-Oct-01 >To: tidbits@tidbits.com (TidBITS Distribution) >Reply-To: "TidBITS Editors" <editors@tidbits.com> > >TidBITS#603/29-Oct-01 >===================== >Steal This Essay 2: Why Encryption Doesn't Help >----------------------------------------------- > by Dan Kohn > > "Doveriai no proveriai." (Trust but verify.) > - Russian proverb, as quoted by Ronald Reagan > > Even as content becomes a public good, content creators (or at > least the publishing and recording industries that claim to > represent them) have been led to believe that encryption can > protect their revenue streams. As I noted in the first of these > essays, they are lambs being led to the slaughter. > ><http://db.tidbits.com/getbits.acgi?tbart=06604> > > Why is all content becoming a public good? It has realistically > been nonrival for some time now, meaning that I can copy your CD > of music or software for a few pennies or less, and you are in no > way disadvantaged. (Of course, the author of that content may feel > quite disadvantaged by this "theft," but as long as I don't > scratch your CDs, there's no reason for you to care that I > borrowed them for a few minutes.) In fact, the central concept > of digitization - converting all content to streams of zeros and > ones - entails making it infinitely copyable without any loss of > quality, the very essence of nonrival goods. > > What has only become clear in the last couple years (although > the Recording Industry Association of America - the RIAA - > still has its head in the sand) is that digital content is also > nonexcludable. Of course, tens of millions of dollars have been > spent on a variety of means to make digital content uncopyable. > Supposedly unremovable watermarks are embedded in images to detect > copies (e.g., SDMI and Macrovision), content is encrypted so that > it can only be viewed through an authorized player (e.g., DVD CSS > and Microsoft's and Real Network's digital rights management > systems being used in the music industry's Napster competitors, > PressPlay and MusicNet), or some form of registration is required > for activation (e.g., Office and Windows XP). > ><http://www.riaa.org/> ><http://www.sdmi.org/> ><http://www.macrovision.com/> ><http://www.dvdcca.org/> ><http://www.pressplay.com/> ><http://www.musicnet.com/> > > >**Encryption Is Ultimately Futile** -- The problem with the > security of these approaches is that, as cryptographer Bruce > Schneier points out, there are basically only two types of users: > regular ones against whom _any_ form of copy protection will work, > and experienced hackers, whom _no_ form of technology can stop. > Your technophobe mother represents the first category, and your > geeky nephew exemplifies the members of the second category. Why > can't the hackers be stopped by encryption? If the challenge were > just to transfer a file from one point to another without letting > someone get to see its contents, encryption is up to the job. But, > consumers don't listen to or watch encrypted versions of content. > (I have, and it looks like static). They watch the regular, > unencrypted version. So, somewhere close to the user, the content > must be decrypted. And that decryption process typically runs on a > PC, where experienced hackers can watch it work one instruction at > a time, and change those instructions to enable the unencrypted > content to be copied. > > Phrased differently, as long as the intention is ultimately to > deliver the content to the customer (and hopefully even the RIAA > is still trying to do that), then it's impossible to stop wily > hackers from getting at the content in its unencrypted form and > having their way with it. "Trying to secure [digital goods] is > like trying to make water not wet," Schneier said recently. "Bits > are copyable by definition." > > In early 2000, a 16-year-old in Norway named Jon Johansen was > upset because he wanted to be able to play DVD movies in his Linux > box's DVD drive, but the movie industry had not authorized any > players for Linux. So, working with several anonymous contacts on > the Internet, he cracked the copy protection scheme used by all > DVDs, enabling them to be played on his machine and, incidentally, > to be copied endlessly and perfectly. (The Norwegian police > actually confiscated his computer at the request of the Motion > Picture Association of America several days after he distributed > the code on the Internet, providing a classic example of tardy > barn door closing.) More to the point, one could ask what chance > any copy protection scheme has, when random 16-year-olds with an > Internet connection can succeed in breaking it in their spare > time. > > But the news for authors such as myself, who might want to get > paid for our work, gets worse. There are many in the music > industry who believe that a 98 percent copy protection rate would > be just fine, the same way that department stores calculate a > presumed level of spoilage (i.e., stolen goods) in their > inventories. That works for department stores because their goods > are rival, so that even if a few shoplifters get their items for > free, everyone else still has to pay. The problem for the RIAA is > that nonrival content means crack once, run everywhere. That is, > all it takes is one smart hacker to defeat the copy protection > schemes for everyone. Then, your nephew can either distribute his > hacks in an easy to use format that even your mother can install, > or, more directly, he can just distribute the unencrypted content. > > >**Advertising Support?** If content can't be made excludable (and > thus easily charged for) via encryption, perhaps there are other > ways to build business models around content. What about > advertising? After all, broadcast television is essentially > nonrival and nonexcludable, and it's financed by advertising. > Unfortunately, no. First, as they have become ubiquitous, banner > ads have dropped dramatically in effectiveness, as measured by > click-through rates, which have fallen from 4 percent to 0.1 > percent. This is not too surprising, given that most people hate > banner ads and do everything to try to ignore them. Ad rates for > some large sites have fallen correspondingly from 40 cents per > impression to less than 0.1 cents, one of the primary causes of > the many new applications of former dot-com employees for > Starbucks barista positions. > > And for content providers, the news grows still worse. The > downturn in the economy has made it harder, particularly for > publications without loyal readers, to attract advertisers, even > at the lower ad rates. Then there's software such as WebWasher > that automatically detects the banner ads on any given Web page > and strips them out, which incidentally causes the page to load > faster (just as a 30 minute television sitcom can be viewed in 22 > minutes without the ads). Ad blocking software replaces the ads > that are supposed to be funding the content with blank space, > which is what content providers' revenue models are starting to > look like. The software is not perfect, but it's getting better > and is already effective enough to strike fear into the hearts of > content publishers and advertisers. > ><http://www.webwasher.com/en/products/wwash/functions.htm> > > Even the soap companies that have funded so many years of daytime > drama may start reconsidering their advertising budgets over the > next decade, as digital video recorders such as TiVo become > increasingly common. These enable viewers to have their favorite > shows easily stored to a hard drive, where they can be > conveniently replayed at the time of the viewer's (rather than the > programmer's) convenience. Imagine setting your own viewing > schedule rather than having it dictated by snotty network > executives in LA and New York. Plus, these devices let you skip > right past the commercials with a few clicks of the remote, > thereby crumbling the foundations of 50 years of a profitable > broadcast industry. New PC-based recorders such as SnapStream even > support sharing recorded shows across the Internet, enabling video > to take its place next to MP3s on the new peer-to-peer networks > that are quickly replacing Napster. Why schedule your evening > around a broadcast schedule and sit through brain-numbing > commercials, when the show is available whenever you want it with > the commercials already edited out? A world full of digital video > recorders is one in which the couch potato is liberated from the > slings and arrows of network programming (how dare they put that > promising new show against Survivor!), and once again is empowered > to make real choices about how, when, and what to watch. [For more > on TiVo, see Andrew Laurence's two-part article series "TiVo: > Freedom Through Time Shifting" and be sure to read the in-depth > TidBITS Talk discussion on how personal video recorders are > changing advertising. -Adam] > ><http://www.snapstream.com/> ><http://db.tidbits.com/getbits.acgi?tbser=1204> ><http://db.tidbits.com/getbits.acgi?tlkthrd=1461> > > Are there any categories of content from which individuals can be > excluded? Only two that I can see. The first is showing movies at > movie theaters. With a significant investment in digital > distribution, and an even bigger investment into physical security > at the theater, studios should be able to distribute movies > without them immediately being copied onto the Internet (but watch > out for those 16-year-old projectionist/hackers). The other > category would appear to be Web services, where software is split > into components that are loosely coupled and distributed across > the Internet. Since you're interacting with numerous other > computers, your identity can be continually reaffirmed (what > Microsoft is planning with Hailstorm), making it nearly impossible > to avoid paying. But any software that supports a disconnected > mode (such as an operating system), can be easily (by hacker > standards) modified so that it no longer "calls home" to ensure > authenticity. The registration system for Windows XP was cracked > so that running a simple program will remove the requirement for > online activation, six months before the software was even > released. > > Content won't truly be a pure public good for another ten years or > so until broadband home Internet connections are ubiquitous, > making it trivial to transfer large files around. But, since the > process is already accelerating (Napster began with college > students who already have broadband connectivity, and some new > peer-to-peer file sharing services are designed explicitly for > downloading very large files in the background), it's worth asking > why anyone will create content when the old models for getting > paid don't work. The answer will have to wait for another essay. > > [Dan Kohn is a General Partner with Skymoon Ventures. His writings > are announced through <dankohn-subscribe@yahoogroups.com> and can > be discussed through <dankohn-discuss-subscribe@yahoogroups.com>.] > ><http://www.dankohn.com/> ><http://www.skymoonventures.com/> > > > >$$ > > Non-profit, non-commercial publications may reprint articles if > full credit is given. Others please contact us. We don't guarantee > accuracy of articles. Caveat lector. Publication, product, and > company names may be registered trademarks of their companies. > > This file is formatted as setext. For more information send email > to <setext@tidbits.com>. A file will be returned shortly. > > For information: how to subscribe, where to find back issues, > and more, email <info@tidbits.com>. TidBITS ISSN 1090-7017. > Send comments and editorial submissions to: <editors@tidbits.com> > Back issues available at: <http://www.tidbits.com/tb-issues/> > And: <ftp://ftp.tidbits.com/issues/> > Full text searching available at: <http://www.tidbits.com/search/> > ------------------------------------------------------------------- > ---- End Forwarded Text ---- -- <http://www.hrc.wmin.ac.uk> : <HyperMedia Research Centre> <mailto:jeremy@hrc.wmin.ac.uk> : <http://www.media.demon.co.uk> - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ----- End forwarded message ----- # distributed via <nettime>: no commercial use without permission # <nettime> is a moderated mailing list for net criticism, # collaborative text filtering and cultural politics of the nets # more info: majordomo@bbs.thing.net and "info nettime-l" in the msg body # archive: http://www.nettime.org contact: nettime@bbs.thing.net