1. Economics and Politics of Exclusive Rights on the Internet _____________________________________________ _____________________________________________

2. Overview Destabilization of the “copy” New possibilities Stories Some basic economics of ERIs Some basic politics of ERIs _____________________________________________ _____________________________________________

3. Destabilization of “the Copy” Copyright born of the printing press Print to CDs: distribution bottleneck creates semi-porous exclusion Contingent model for commodified information production: appropriated by sale as “thing”—the copy physical porosity provides access in many useful or important instances Digital networks destabilize the copy _____________________________________________ _____________________________________________

4. New Possibilities Dyson/Barlow//Lehman early-mid ‘90s Information wants to be free One giant copying machine Techno-Legal Enclosure DMCA antidevice & anticircumvention Private standards for controlling access to platforms (“Fritz chip”) Network architecture: ISP liability under DMCA & contributory liability Contractual enclosure (clickwraps) _____________________________________________ _____________________________________________

5. Stories FreeRepublic.com “My Grandmother” CPHack www.Live365.com _____________________________________________ _____________________________________________

6. Stories The Phantom Edit Starballz _____________________________________________ _____________________________________________

7. Some Basic Economics Information is a “public good” Nonrivalry is central and irreducible economic attribute of information MC = 0 Arrow, 1962: Precisely to the extent that property rights succeed, there is underutilization of information _____________________________________________ _____________________________________________

8. Some Basic Economics Information is a “public good” “On the Shoulders of Giants” Information is both input and output of its own production process As ERIs increase, cost of production, not only expected returns, increases _____________________________________________ _____________________________________________

9. Some Basic Economics Information is a “public good” “On the Shoulders of Giants” Some non-market, non-proprietary production is necessary to maintain efficient information production how much is difficult and context dependent _____________________________________________ _____________________________________________

10. Some Basic Economics Information is a “public good” “On the Shoulders of Giants” Non-market production necessary Revenge of the Little Mermaid, III As ERIs increase, costs increase for all, but benefits increase only for IP-intensive business models Costs increase least for Mickey by reworking owned inventory _____________________________________________ _____________________________________________

11. Some Basic Economics Information is a “public good” “On the Shoulders of Giants” Non-market production necessary Revenge of the Little Mermaid, III As ERIs increase, costs increase for all Strong ERIs commercialize, concentrate, and homogenize information and cultural production _____________________________________________ _____________________________________________

12. Freedom Political Democracy Free Republic, cphack Cultural Democracy Starballz, My Grandmother Autonomy Phantom Edit, from consumers to users Justice Structuring access to material means of information/cultural production Opportunity to be a maker, not a taker Global core-periphery relations _____________________________________________ _____________________________________________ Some Basic Politics

13. Where now? New exclusive right to use enforced by technology, contract and criminal law DMCA, NET Act, UCITA (2 states) CBDTPA Economically and politically functions like a dramatic increase in ERIs E.g., increases the cost of Live365 or derivative works/collage Prevents permitted uses like “My Grandmother” or reverse engineering _____________________________________________ _____________________________________________

14. Where now? Compulsory license Reduces the control issue, permits competitive downstream production E.g. girl permitted to use clip, for $ Cost is key CARP Device use taxes Blank videocassettes, CD Media & Burners, hard drives, all PCs? General tax & reward schemes _____________________________________________ _____________________________________________