A 2009 presentation to the Rutgers Law IP Club
User-Generated Content & Virtual Worlds, 10
 Vanderbilt Journal of Entertainment & Technology
 Law 893 (2008).

Digital Attribution, 87 Boston University Law Review
  41 (2007).

Amateur-to-Amateur (with Dan Hunter), 46 William &
 Mary Law Review 951 (2004).

                                                       2
Be careful with social software.




                                   3
2009 IP Club Lecture
    Incentives theory
    A brief history
         Ancient copyright
         The Stationers’
          Company
         The Statute of Anne
         The United States
          Constitution
         Steady expansions in
          19th & 20th century
         1976 Act
         1998 revisions
         International law


                                 5
(1)    literary works;
(2)    musical works;
(3)    dramatic works;
(4)    pantomimes and
       choreographic works;
(5)    pictorial, graphic, and
       sculptural works;
(6)    motion pictures and other
       audiovisual works;
(7)    sound recordings; and
(8)    architectural works.

Or, colloquially, books, music,
     plays, films, pictures,
     photographs, sculptures,
     building, computer software,
     etc.
                                    6
Thanks to Tom Bell
  General         Rights
      102 – Base Requirements
      106 – Exclusive Rights
      106A – VARA
      107 – Fair Use

  Scope &
  Limitations
      108 - Libraries
      109 - First sale
      110 – Non-profit Performance
      111 - Television
      112 - Television
      113 – VARA
      114 – Music: Sound Recordings
      115 – Music: Cover versions
      116 - Music: Jukeboxes
      117 - Software
      118 – Public Broadcasting
      119 - Television
      120 – Architectural Works
      121 – Blind & Disabled
      122 – Television
    Authors create works due to
                                                  the incentives offered by
                Creators
                                                  copyright’s prospect of
                                                  financial reward.
    product
                                                 Industry professionals
                           payment
                                                  purchase the content from
                                                  authors, package it in copies,
                                                  market it and distribute it.
          Industry Professionals                  They are the expert
                                                  commercial intermediaries.
                                                 The public benefits from
product                            payment        having access to a broad
                                                  selection of high quality
                                                  content.
                Consumers
Creators




    product                payment




          Industry Professionals
                                             Congress seems to regard the
                                             entertainment industry as
                                             the chief “client” of
product                            payment   copyright legislation.

                Consumers
    To what extent does the story of the
     Stationers’ Company explain the
     contemporary landscape of
     copyright?
          Have we returned to a licensed
           monopoly right?
    To what extent is copyright law’s
     historical expansion (in scope and
     duration) attributable Lockean,
     rather than utilitarian, intuitions?
    1976 Act? 1998 Acts?


                     Industry Professionals




           product                            payment


                                                        11
“The VCR is to the
American film producer
and the American
public as the Boston
Strangler is to the
woman alone.”

-- Jack Valenti (MPAA)




                         12
Framing the problem:
   New technologies, such as                    Creators
   cassette tapes and
   photocopiers, allow
   consumers to create and            product              payment
   exchange copies of works,
   depriving the copy licensing
   industry (and the creators          Industry Professionals
   who rely on the industry for
   revenue) of their profits.
Answers to piracy:                product                      payment

   Expand rights
   Strengthen enforcement                       Consumers

   Criminalize infringement
   Regulate Technology (DRM)
                                                 Piracy

                                                                         13
14
Principles
1)  Copyright law
    creates private
    property rights in
    information patterns
2)  This exclusive rights
    are normatively
    desirable and
    benefit society
3)  Copying of
    information patterns
    should occur only
    when authorized by
    the proprietor
                            15
Principles
1)  Information patterns
    should be shared for
    purposes of
    collaboration
2)  Copying of
    information patterns
    should be fast,
    simple & transparent
3)  Central control is not
    desirable – the
    power in the system
    should be at the
    endpoints
                             16
    Widespread copying
     threatens to destroy
     the business models of
     the [music / film /
     software] industry.
    Major lawsuits against
     tools/platforms that
     facilitate copying:
     Napster, Grokster,
     YouTube
         DMCA 512 provisions
    Congress is generally
     sympathetic ($$$)


                                17
18
What if networks facilitate “amateur” authorship?


                Creators                      Creators



      product              payment
                                         Industry Professionals


       Industry Professionals




  product                      payment

                                         Consumers / Creators
                                            “Prosumers”?
                Consumers




                 Piracy
                                               Sharing
                                                                  19
What if networks facilitate “amateur” authorship?


                                     Creators




                                Industry Professionals




                                Consumers / Creators
                                   “Prosumers”?




                                      Sharing
                                                         20
What if networks facilitate “amateur” authorship?


                                     Creators




                                Industry Professionals




                                Consumers / Creators
                                   “Prosumers”?




                                      Sharing
                                                         21
    Are there no implications?
          Is non-commercial copyright
           production legally insignificant?
                                                     Creators
    What does this say about the
     authorial incentive theory?
          Do the implications turn on
           issues of quality?                   Industry Professionals
          Do the implications turn on
           issues of collective coordination?
    What does this say about the
     complexity of copyright law?
          Does it matter that amateurs do
           not seem to understand copyright
           law?                                 Consumers / Creators
                                                   “Prosumers”?
    What about technology?



                                                      Sharing
                                                                         22
Creators



    product              payment




     Industry Professionals




product                      payment



              Consumers




               Piracy
Creators




Industry Professionals




Consumers / Creators
   “Prosumers”?




      Sharing
                         24
    A fan website with multiple
     authors collects encyclopedic
     details about the Harry Potter
     series.
          The Harry Potter Lexicon
           http://www.hp-lexicon.org
    Formerly praised by J.K.
     Rowling as a valuable resource
    Lawsuit by Rowling claims
     copyright infringement
    District court determines this is
     not fair use
    Subsequently rewritten to
     conform to court’s standard

                                         Not Fair Use
                                                        25
    Lenz uploads a video of her
     toddler dancing to a Prince
     song on the YouTube
    UMG removes the video from
     YouTube via the DMCA notice &
     takedown provisions
    Lenz countersues claiming that
     fair use clearly permits her to
     post the video, hence the         Clearly Fair Use
     notice was in bad faith.
    Following a motion to dismiss,
     the court allows the claim to
     proceed.
    Who controls the shape of
     online tools?


                                                          26
    Fairey presents himself as
     a rebel “street artist”
    He often appropriates
     images for his work
    Found and changed a
     photo of Obama via a
     Google search
    Iconic poster distributed
     “virally” over the Web
                                   Fair Use?
    Original photograph used
     by Fairey ascertained by
     bloggers (originally denied
     by Fairey)



                                               27
28
The Public Web
•  Optimal for maximum distribution of information
•  Vulnerable to commercialization
•  Small players dependent on search
•  Major commercial winner: Google

The Semi-Public Platform (Predominant)
•  Often provides better tools (e.g. for blogs, photos)
•  Technology is opaque to users
•  Applications often push to become “sticky”
•  Major commercial winner: Facebook*

The Walled Garden
•  Popular model during the 1980’s
•  Subscription barrier to entry
•  Must provide some additional value
•  Major commercial winner: World of Warcraft
                                                          29
  Google, Facebook, World
   of Warcraft, and Web
   2.0 businesses see user
   copyright as a potential
   liability, not a source of
   revenue
  Cf. radio broadcasters in
   1941 – except that
   copyright is in the hands
   of the multitudes
  If the logic of the
   Stationers’ Company
   controls, where does
   this point for the future
   evolution of copyright?
    Answer: “solve” the copyright
     dilemma via contract
    If users can be bound to
     surrender copyright interest in
     exchange for platform/tool
     access, user copyright
     interests will not threaten
     revenue models.
    Ironically, this licensing
     “solution” is a close relative to
     FSF, Wikipedia, Creative
     Commons, etc.
          But it deflates the scope of
           the authorial interest for
           business (not altruistic)
           reasons
Greg
Lastowk
       a:
 lastowk
33
City of Heroes =
                      Marvel =
  Toolmaker/
                   Copyright owner,
     Hosting
                      potential
   Platform/
                      exploiter
   Proprietor




    Player =
   infringers

                                      34
  The users are charged
   with direct copyright
   infringement.
  The users pay to
   access City of Heroes
   and have assigned
   their authorial
   interests by contract.
  The lawsuit is brought
   against the toolmaker/
   platform, using
   copyright to constrain
   the power of
   technological tools.
                            35
    If users are authors, what
     does the UGC inflection
     offer?
         A shift to loss of authorial
          rights via contract
                Cf. status quo
         A shift to bearing
          infringement risks
                Cf. status quo
         A shift to tools hobbled by
          concerns over ©
                Cf. status quo
    Plus
         Pay for access
         Loss of information privacy
         Loss of information control

                                         36
In a world where
      authorship powers
      are now widely
      distributed,
      copyright law
      should look at:
1.    Attribution rights
2.    Notice
      requirements
3.    Shorter terms
4.    Clear, short,
      “bright line” rules
5.    Funding the
      commons
                            37

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2009 IP Club Lecture

  • 1. A 2009 presentation to the Rutgers Law IP Club
  • 2. User-Generated Content & Virtual Worlds, 10 Vanderbilt Journal of Entertainment & Technology Law 893 (2008). Digital Attribution, 87 Boston University Law Review 41 (2007). Amateur-to-Amateur (with Dan Hunter), 46 William & Mary Law Review 951 (2004). 2
  • 3. Be careful with social software. 3
  • 5.   Incentives theory   A brief history   Ancient copyright   The Stationers’ Company   The Statute of Anne   The United States Constitution   Steady expansions in 19th & 20th century   1976 Act   1998 revisions   International law 5
  • 6. (1)  literary works; (2)  musical works; (3)  dramatic works; (4)  pantomimes and choreographic works; (5)  pictorial, graphic, and sculptural works; (6)  motion pictures and other audiovisual works; (7)  sound recordings; and (8)  architectural works. Or, colloquially, books, music, plays, films, pictures, photographs, sculptures, building, computer software, etc. 6
  • 8.   General Rights   102 – Base Requirements   106 – Exclusive Rights   106A – VARA   107 – Fair Use   Scope & Limitations   108 - Libraries   109 - First sale   110 – Non-profit Performance   111 - Television   112 - Television   113 – VARA   114 – Music: Sound Recordings   115 – Music: Cover versions   116 - Music: Jukeboxes   117 - Software   118 – Public Broadcasting   119 - Television   120 – Architectural Works   121 – Blind & Disabled   122 – Television
  • 9.   Authors create works due to the incentives offered by Creators copyright’s prospect of financial reward. product   Industry professionals payment purchase the content from authors, package it in copies, market it and distribute it. Industry Professionals They are the expert commercial intermediaries.   The public benefits from product payment having access to a broad selection of high quality content. Consumers
  • 10. Creators product payment Industry Professionals Congress seems to regard the entertainment industry as the chief “client” of product payment copyright legislation. Consumers
  • 11.   To what extent does the story of the Stationers’ Company explain the contemporary landscape of copyright?   Have we returned to a licensed monopoly right?   To what extent is copyright law’s historical expansion (in scope and duration) attributable Lockean, rather than utilitarian, intuitions?   1976 Act? 1998 Acts? Industry Professionals product payment 11
  • 12. “The VCR is to the American film producer and the American public as the Boston Strangler is to the woman alone.” -- Jack Valenti (MPAA) 12
  • 13. Framing the problem: New technologies, such as Creators cassette tapes and photocopiers, allow consumers to create and product payment exchange copies of works, depriving the copy licensing industry (and the creators Industry Professionals who rely on the industry for revenue) of their profits. Answers to piracy: product payment Expand rights Strengthen enforcement Consumers Criminalize infringement Regulate Technology (DRM) Piracy 13
  • 14. 14
  • 15. Principles 1)  Copyright law creates private property rights in information patterns 2)  This exclusive rights are normatively desirable and benefit society 3)  Copying of information patterns should occur only when authorized by the proprietor 15
  • 16. Principles 1)  Information patterns should be shared for purposes of collaboration 2)  Copying of information patterns should be fast, simple & transparent 3)  Central control is not desirable – the power in the system should be at the endpoints 16
  • 17.   Widespread copying threatens to destroy the business models of the [music / film / software] industry.   Major lawsuits against tools/platforms that facilitate copying: Napster, Grokster, YouTube   DMCA 512 provisions   Congress is generally sympathetic ($$$) 17
  • 18. 18
  • 19. What if networks facilitate “amateur” authorship? Creators Creators product payment Industry Professionals Industry Professionals product payment Consumers / Creators “Prosumers”? Consumers Piracy Sharing 19
  • 20. What if networks facilitate “amateur” authorship? Creators Industry Professionals Consumers / Creators “Prosumers”? Sharing 20
  • 21. What if networks facilitate “amateur” authorship? Creators Industry Professionals Consumers / Creators “Prosumers”? Sharing 21
  • 22.   Are there no implications?   Is non-commercial copyright production legally insignificant? Creators   What does this say about the authorial incentive theory?   Do the implications turn on issues of quality? Industry Professionals   Do the implications turn on issues of collective coordination?   What does this say about the complexity of copyright law?   Does it matter that amateurs do not seem to understand copyright law? Consumers / Creators “Prosumers”?   What about technology? Sharing 22
  • 23. Creators product payment Industry Professionals product payment Consumers Piracy
  • 24. Creators Industry Professionals Consumers / Creators “Prosumers”? Sharing 24
  • 25.   A fan website with multiple authors collects encyclopedic details about the Harry Potter series.   The Harry Potter Lexicon http://www.hp-lexicon.org   Formerly praised by J.K. Rowling as a valuable resource   Lawsuit by Rowling claims copyright infringement   District court determines this is not fair use   Subsequently rewritten to conform to court’s standard Not Fair Use 25
  • 26.   Lenz uploads a video of her toddler dancing to a Prince song on the YouTube   UMG removes the video from YouTube via the DMCA notice & takedown provisions   Lenz countersues claiming that fair use clearly permits her to post the video, hence the Clearly Fair Use notice was in bad faith.   Following a motion to dismiss, the court allows the claim to proceed.   Who controls the shape of online tools? 26
  • 27.   Fairey presents himself as a rebel “street artist”   He often appropriates images for his work   Found and changed a photo of Obama via a Google search   Iconic poster distributed “virally” over the Web Fair Use?   Original photograph used by Fairey ascertained by bloggers (originally denied by Fairey) 27
  • 28. 28
  • 29. The Public Web •  Optimal for maximum distribution of information •  Vulnerable to commercialization •  Small players dependent on search •  Major commercial winner: Google The Semi-Public Platform (Predominant) •  Often provides better tools (e.g. for blogs, photos) •  Technology is opaque to users •  Applications often push to become “sticky” •  Major commercial winner: Facebook* The Walled Garden •  Popular model during the 1980’s •  Subscription barrier to entry •  Must provide some additional value •  Major commercial winner: World of Warcraft 29
  • 30.   Google, Facebook, World of Warcraft, and Web 2.0 businesses see user copyright as a potential liability, not a source of revenue   Cf. radio broadcasters in 1941 – except that copyright is in the hands of the multitudes   If the logic of the Stationers’ Company controls, where does this point for the future evolution of copyright?
  • 31.   Answer: “solve” the copyright dilemma via contract   If users can be bound to surrender copyright interest in exchange for platform/tool access, user copyright interests will not threaten revenue models.   Ironically, this licensing “solution” is a close relative to FSF, Wikipedia, Creative Commons, etc.   But it deflates the scope of the authorial interest for business (not altruistic) reasons
  • 32. Greg Lastowk a: lastowk
  • 33. 33
  • 34. City of Heroes = Marvel = Toolmaker/ Copyright owner, Hosting potential Platform/ exploiter Proprietor Player = infringers 34
  • 35.   The users are charged with direct copyright infringement.   The users pay to access City of Heroes and have assigned their authorial interests by contract.   The lawsuit is brought against the toolmaker/ platform, using copyright to constrain the power of technological tools. 35
  • 36.   If users are authors, what does the UGC inflection offer?   A shift to loss of authorial rights via contract   Cf. status quo   A shift to bearing infringement risks   Cf. status quo   A shift to tools hobbled by concerns over ©   Cf. status quo   Plus   Pay for access   Loss of information privacy   Loss of information control 36
  • 37. In a world where authorship powers are now widely distributed, copyright law should look at: 1.  Attribution rights 2.  Notice requirements 3.  Shorter terms 4.  Clear, short, “bright line” rules 5.  Funding the commons 37