Here we'll explore the nexus of legal rulings, Capitol Hill
policy-making, technical standards development, and technological
innovation that creates -- and will recreate -- the networked world as we
know it. Among the topics we'll touch on: intellectual property
conflicts, technical architecture and innovation, the evolution of
copyright, private vs. public interests in Net policy-making, lobbying
and the law, and more.
Disclaimer: the opinions expressed in this weblog are those of the authors and not of their respective institutions.
Why, then, is copying - and not paying - so prevalent? Kelly says that people want to pay if they perceive that the exchange is fair, if it's easy enough, and if they understand some sort of benefit that comes from the paying.
Just stating a benefit (enabling creators to be paid) isn't enough. Conversely, just threatening a negative (lawsuits) isn't enough. Kelly refers to a survey of UK youth in which the surveyed indicated a desire for a monthly-fee unlimited use music service. More or less the way television is delivered to them now.
I'm more or less on-board with this notion. It's essentially what Copyfight has been arguing for years: the experience matters, new business models are needed, etc. The place where I differ is when Kelly asserts that what we want is a relationship, and that paying is a form of/part of that.
I'm sorry, but I really don't want to have a relationship with iTunes, or NBC, or even a hip Web 2.0 technology like Flikr. Paying for these things doesn't make me feel differently in respect to them. I want to have a relationship with people, whether it's a Big Name creator like Joss Whedon or other fans. If Whedon makes his creations available on iTunes or NBC then I might pay those entities as a necessary component of being a fanboy, or if other fans share images on Flikr that's part of a relationship. Paying is just incidental, which is why I think Kelly isn't paying enough attention to his own hints that the payment process has to be so easy (seamless) that it fades into the background.
Back at the start of June, I was interviewed for a story that has finally appeared in Infotech and Telecom News. The story is mostly pull quotes from people talking about the MPAA's recent wins against Web sites that post links to copyrighted material. The article author wrongly states that I'm still associated with MIT, but at least the quotations are accurate.
Given that the guests include Cory (boingboing) Doctorow and Randall (xkcd) Munroe I doubt most anyone will notice I'm there. On the other hand, I can't imagine putting Cory and myself in the same place and NOT having discussions of intellectual property arise. As I've noted before, Cory has been putting some effort into educating SF writers on the status and realities of modern copyright practices. As Guest of Honor at the con he'll have lots of chances to air his views and talk about his different projects
Bruce Schneier has an update on his article for the Guardian describing the "movie plot" efforts to link public photography and anti-terrorist work. The gist is that there is no credible evidence linking public photography - even of public buildings, infrastructure, etc - to terrorist acts. Therefore, acting against photographers is not increasing security - it's just making people feel good and wasting resources.
His blog entry pulls out all the embedded URLs from the article and includes four links to discussions of photographers rights. Bookmark this one: http://www.schneier.com/crypto-gram-0806.html#1
I had a nice chat last week with Mike O'Donnel of iCopyright about their new service for small and independent publishers. The company has a large for-pay service that is used by large publishers, including news wires, to track the digital progress of copyrighted materials and they're reusing some of that technical infrastructure for the new offering.
O'Donnell noted that previous attempts to let individuals control how their intellectual property is used, particularly Creative Commons, lack a number of useful features. iCopyright is promoting itself as an alternative that is free to small-scale creators, and supported by advertising and partner revenue.
But back up a step - what's wrong with CC and how can it be fixed? Well, some of the lacks are that there is no loopback to the creator. If I put a CC license on my works I have no way to track how those works are being used, or to confirm that something is in compliance with my CC license terms. CC also has no enforcement system and if I wish to charge a fee for use (a term specified in CC licenses) there's no mechanism to help me collect these fees.
As a free-to-creators service this seems like a step forward - we definitely need more active and more powerful tools to turn copyright flexibility and fair use ideas into actionable entities. It's far from the last word, I'm sure.
There's not a whole lot new here for Copyfight readers but it's an interesting checkpoint that draws together several ideas. One is that modern online writing (primarily blogging) is barely paying the bills even for fairly popular writers, particularly those dependent on ad clicks for revenue. Another is that those who are (still) reading books are interested in more than the content of the page - they're looking for connection and probably also participation of some form.
One way to take this is to think of the book as a part of, or maybe just an intro to, a set of experiences such as blogs, chat, conferences, parties, or formal training situations. Not all of these are appropriate for all published books, but genres such as science fiction have long connected writers to their fans through conventions and other gatherings, much less formally organized.
Finally, there's the question of whether or not the book-qua-book will survive all this evolution and revolutionary change. Will things like the Kindle put the book as we know it to rest? Probably not. As Michael Agger documents in his piece for Slate, the act of reading a physical paper book creates distinctly different - and notably pleasurable - mental states that just aren't found yet in any other reading device.
Nobody quite knows why this should be so - perhaps it's something to do with the book-as-artifact, or maybe it's as simple as the fact that we aren't subjected to the same kinds of distractions and interruptions with a physical book as we are subject to when reading online or with an e-book device. However you assign it, though, it seems that books in some form are likely to be around for quite a while. If only we can figure out how to keep publishing profitable...
The report's site contains a summary of the report's findings, a downloadable PDF of the full report and an online FAQ describing their research methods and key findings. I haven't digested the full thing yet, but the three basic conclusions are stated pretty bluntly:
Anyone can be framed for copyright infringement. The remote and automated generation of complaints shifts the burden significantly onto the accused to prove their innocence.
In addition to malicious framing, innocent people can still be erroneously fingered, even if they've never run a P2P program
Privacy in P2P networks is partial or illusory at best
The authors also try to draw some conclusions, and call for more transparency in the monitoring process. Considering the amount of malicious activity the Cartel directs at the P2P nets I don't see this happening anytime soon. One the other hand, I see the paper's authors getting a few calls as expert witnesses in the near future.
Our friends at the Future of Music Coalition are announcing a CD compilation to benefit their Net Neutrality campaign. Featured names include Wilco, Bright Eyes, They Might Be Giants, Aimee Mann, Guster and more. The CD is set for an end-of-July release.
Could it be? Say it with me. That'd be... The Cartel.
OK, so I'm not about to start a new career as a singer-songwriter. Which is probably good since I'd probably be foolish enough to give away my own recordings of my own performances for free and if I used BitTorrent for that then I could be the one getting DoSed.
But that's in the hypothetical future. Here in the real present, it's a company called Revision 3. This company uses BitTorrent to distribute its own high-quality digital shows. This past weekend they were subjected to a SYN-flood attack that brought down their servers. The flood was specifically aimed at the port they use for their torrent tracking server.
But according to Louderback's posting, the company admitted to worse, including "abusing Revision3's network, over a period of months." Excuse me, isn't that illegal? You know, Company A steals Company B's resources to make a profit - what do we call that? Theft? Fraud? Or just Cartel business-as-usual? Louderback points out that DoS attacks are illegal computer fraud and abuse and claims that the FBI is "looking into" the matter.
My cynical side says this won't amount to a hill of beans, but one can still hope.
In the end, the Cartel got half a pie. There's a flag, but the FCC explicitly stated that it wasn't supposed to prevent home recording. Even "redistributing it within the home or similar personal environment as consistent with copyright law" is allowed. That's a quote from the FCC's rulemaking on the issue (helpful PDF from our friends at the EFF).
So why are we talking about this again? Well, it seems that Microsoft's Vista Media Center suddenly started refusing to record over-the-air digital content broadcast by NBC. Here's a screen capture provided by the EFF, which is trying to raise the profile on this incident:
Aside from being just blatantly wrong in its justification, MSFT's admission raises a host of questions. First, it seems likely that the broadcast flag wasn't just added to Vista Media Center recently. So why did it just become visible? One possibility is there's a bug somewhere - certainly wouldn't be the first time. But nobody's claiming this was an error. Another possibility is that NBC asked for recordings of its popular programs to be blocked. Or maybe the flag on those programs was erroneously set. So far NBC is mum, claiming to be looking into things.
My cynical take on it is that they're waiting to see how many people notice and complain. If they get a lot of bad stink they claim it was an error, apologize, and move on. If this blows over then they can feel they have a green light to block home recording any time they want, at least for people foolish enough to use Vista as their DVR.
I don't blog much about the minutae of the cascade of digital music-related lawsuits in part because there are people who obsessively blog these things and I've lost patience with it over the years. One place that hasn't lost patience and generally does a very good job with the details is Recording Industry vs The People.
Here's a short list of things the RIAA would like us to believe and have (by and large) gotten judges to agree with:
You are not allowed to make MP3 copies of tracks on CDs you legally own
Placing MP3s into a file directory that might be accessed from outside your computer is equivalent to giving away copies
An IP address is equivalent to a personal identifier
There are more, of course, but let's focus on these for a moment as we've further developments to discuss in Atlantic v. Howell, a case I pointed to in December of last year. At that point, there was contention over whether the Cartel were backtracking on the question of whether CD owners have the right to rip their own CDs.
Well now we a judge rejecting the RIAA's motion for summary judgement in the case. If the judge had bought into the RIAA's premises above the case would've been another slam-dunk win for the Cartel. Instead Judge Wake appears to be ready to change his earlier stance and agree with the defendants (and their EFF counsel) that simply placing copies in a directory is not a "distribution". This is key because if there's no distribution then there's no copyright infringement.
Furthermore, there's a good question to be argued as to whether the defendants are even the ones who put that MP3 file there. Such an issue would be settled by a trial, but the RIAA doesn't want trials. Its jihad is based on filing and rapidly settling thousands of these lawsuits. Having them go to trial would prove time-consuming, risky, and expensive even if the Cartel won.
For a large variety of reasons, the Cartel can't afford to wage this war in the court trial dockets. It needs to be conducted in the mass, scalable fashion whereby the threat of the judiciary is used to extort payment from consumers... err, victims... err, named defendants.
Despite the amount of time this case has already dragged out, it's still in the very early stages. As Eric Bangeman pointed out in his ars technica story on the denial, Judge Wake's reasoning is at odds with other judges' decisions on similar issues. For the great majority of cases, the RIAA is being successful in its jihad. My guess is that they'll argue this case a little further to see if Judge Wake can be swayed back. If he continues to rule against them, they'll drop the case before it goes to trial - they have no incentive to get an actual verdict on the books against them and an appeal would be even more expensive. So long as the tide continues to run in their favor, the Cartel can keep going even if it has to drop a case now and then. To truly kick the legs out from under them would require an act of Congress or a decision by a much higher-level court. Neither will happen soon.
The idea is that Cory gives away this book - it's online for free. But there are people (true fans, maybe?) who want to donate to Cory in return for the value they receive with this book.
Cory doesn't want direct donations, not least because he doesn't want to cut his publishers out of the loop. In the donation page linked above he points out that they add significant value. So what he's proposing is a method for people to get copies of the book into the hands of teachers and librarians, who otherwise might not have funds for it or who might have to pay out of their own pockets. Librarians or teachers who want to receive free copies put in requests and they're matched up with people who want to donate. Cory and his staff are apparently donating their time and administrative effort to coordinate the giving.
Clay Shirky is one of the better Big Thinkers on the Web today, particularly in the arenas of social media and cooperative interactions. He's published an essay called "Gin, Television, and Social Surplus". In part this is related to his new book Here Comes Everybody but focused around a single idea.
The idea is that, contrary to the naysayers, we are doing something, potentially the start of something huge. That something is participating, whether it's in something as erudite as Wikipedia or as trivial as lolcats and World of Warcraft. We're taking some of the hours we currently waste on passive television viewing (Shirky estimates roughly one trillion hours of television are watched by the Internet-connected population) and putting them into "an architecture of participation."
Now, as a Copyfighter, the thing that interests me is that almost all of that participation involves creation and sharing, to some degree. If you're in a constrained environment like Warcraft or Second Life, then the acts of creation and sharing you can engage in are limited by the virtual world's structure, coding and rules, few of which are accessible to the mass of players. But if you're out on the wider 'net then your creation and sharing are inevitably going to bump up against the intellectual property structures of the physical world.
So maybe the Copyright Wars were inevitable. And maybe, if Shirky is right, they're not only inevitable, but it's inevitable that we - the online, wired, connected, sharing population - will win. Or our children will. Looked at this way the Copyright Wars aren't just the death throes of a few mass media empires with badly outdated business models - they're the collateral damage of a tectonic culture change. That's a cool thought, even if it's probably wrong in some of the details.
Gaiman included a few "final" thoughts on copyright. Given how much he's involved himself in the discussion of these issues over the years I seriously doubt this'll be his final word, but perhaps he feels he has no more to say on the Rowling case.
In this entry he's reflecting on his own copyright battles with Todd McFarlane over authorship of certain material that Gaiman wrote. He also links to the judge's decision in that case. There are no real parallels that I can see, and Gaiman says as much. Still, it does point out that he has first-hand experience of someone trying to steal things he wrote and that there is a framework within law for dealing with such things - where such framework does not include Ms. Rowling's emotional appeals to 'think of the charity'.
He also notes that his own two first books were at best legally shaky in Fair Use terms - an aggressive lawsuit could easily have shut him down from writing anything more. On the one hand that'd be a shame - Gaiman is popular and has gone on to write many well-respected and awarded books. On the other hand, I'm not sure it's a career path we can depend on a lot of people following.
At issue are incidents like a 32-page copy made by a music professor. The prof claims that the copying was within University guidelines ("no more than 20%") and that the cost of the volume ($250) was prohibitive for students to purchase. The publishers claim that the U's practice of digitizing and distributing course packs of excerpts costs them money in lost book sales.
The case is a little different from typical copyright suits such as the Rowling case. The publishers are not seeking monetary damages, nor are they particularly trying to punish the University. Instead what they're hoping to do is create a legal precedent saying that Georgia State's guidelines and practices do not constitute fair use and not only should this university be enjoined, but the multitude of other schools with similar practices should be stopped.
As Conley points out, this case may break new ground. Past cases have been decided on issues around the creation of paper copies (Xeroxing) often by for-profit institutions. In this case, the copying at issue is digital and the organization doing the copying is non-profit. The educational area is one where courts have traditionally afforded a greater degree of leeway in fair use and even the plaintiff's lawyer has to admit that he can't find a law or binding precedent stating how much digital copying would be "not too much." It seems likely that if the case ever makes it as far as a decision that decision would be appealed. My personal opinion is that they'll work out a settlement before it gets that far - neither side wants to see a precedent set that would go against them. Plus there's a core reality that academic publishers and educational institutions exist in a kind of death-grip dependency that would harm both if it was violently broken.
The basic question is whether or not the lexicon itself is a protected fair use creation or whether its printing should be enjoined as copyright infringement. Or, as Rowling called it, "wholesale theft."
Rowling's arguments seemed to be laced with emotional appeal and what strikes me, frankly, as shenanigans. She's so upset about the book that she had to fly personally to New York to testify, even though the judge offered to accept written testimony. The book has also "decimated [her] creative work" even though she gave the Lexicon Web site an award in 2004. And, somehow, the publication of this book is going to stop her project of doing her own lexicon, as if her fans wouldn't buy every single work she published. Did you know she was just about to give away all the proceeds from her lexicon to charity? News to me. Hey, Rowling, how about you take some of that $9 billion in book sales and donate it instead?
Mind you, I'm not convinced she's not right - the Lexicon book may well be infringing. I just dislike cheesy appeals to emotion. Think of the children! Puh-leeze. None of this is really germane to the question of whether or not the Lexicon is a transformative reference work, in which case it ought to be protected. Fortunately there's no jury to be swayed in this trial - let's hope Judge Patterson sticks to reasoning from the facts.
Daily Kos posted a think piece this weekend. The essay argues that big media have, in effect, caused their own devaluation. That is, the "amateurish" state of news on the Web is not really due to the proliferation of bloggers or non-authority sources such as Wikipedia. This is the thesis advanced by Andrew Keen in his book The Cult of the Amateur. Instead, the problem is that there has been a systematic attack on big news sources once considered reliable (CNN, the NY Times, the Washington Post, etc.) by forces such as talk radio and Fox News.
It's no coincidence that these latter are by and large right-wing, and Daily Kos is itself quite left-wing. However, that doesn't make the argument necessarily wrong. Just something more to think about.
Neat-o-rama blog reported that students in UT San Antonio were told to come up with a "code of academic integrity in order to combat plagiarism". Apparently they then copied a chunk of their code from BYU.
Now on the surface this is a ha-ha funny story about kids who copy when they shouldn't. But the people I think don't get it here are the teachers and Neat-o-rama (though in fairness the blogs' commenters seem to get the point better than the blog itself). Why shouldn't the students copy an existing code from a university that is respected and has presumably tested and refined its code over some period of time? What's the value in inventing something new when there are good examples around?
By analogy I suspect you wouldn't find many differences in the criminal codes of the various US states pertaining, say, to burglary. The established terms and definitions are shared; the understanding of the crime is shared. The specific wording may vary here and there, but if I was going to set up a 51st state it would seem logical for me to look at and probably copy criiminal codes that have (you should pardon the term) been debugged by others.
In terms of inventive arts I don't think there are a whole lot of innovations one ought to make in putting together a code of conduct. Clarity, forthrightness, simplicity and other metrics related to the understandability of the result seem to me to count for a whole lot more than how the particular words are arranged.
It's true that one of the important parts of an educational writing exercise - as well as in the real world - is learning to acknowledge one's sources properly. And I'd bet the students didn't do that here, but whose fault is it for not teaching them that?
Riffing on the same theme as compfight, Google has added a feature to its advanced search that lets you find Web pages with explicit usage rights as a search parameter. The parameter lets you specify a few combinations of free to use, share, and modify.
Unfortunately, the feature is buried by default under a collapsed page region. It's one click to expand, but I wonder if many people - even advanced search users - will go that extra step. Most searchers I know are in a hurry to get results.
The search form provides a link to an explanation of Usage Rights, which includes a further link to Creative Commons. It's not exactly the kind of feature that will drive awareness and publicity, but it's a small step forward.
Neil Gaiman posted an update on the experiment of making American Gods free online to read. Numbers from Harper Collins, which is hosting the e-book, show a decent number of unique views and a fair number of page impressions. If their numbers and my math are right the average viewer is reading about 45 pages online, which is 1-2 chapters.
That's not much for a full-length novel, but apparently it's enough to interest people, since H-C reports that weekly sales of the book have gone up threefold since the start of the experiment. Sadly there's no way to correlate sales data with the free online read data. Perhaps it's new readers, perhaps it's people remembering they meant to buy it anyway, or replacing an old copy. Perhaps it's people dissatisfied with the cumbersome online interface but interested enough to invest their cash in getting a better interaction.
One experiment is just a data point and doesn't necessarily tell us a whole lot. However, the positive trends in all these numbers are probably good enough leverage for Gaiman to push the experiment further. We shall see. Meantime, it's probably not wrong to say "free books online sells more paper copies." I think that's what Cory said last year.
Clay Shirky gave a talk at the Berkman Center covering some of the ideas from his new book Here Comes Everybody: The Power of Organizing Without Organizations. The video is online from Harvard under a Creative Commons license. The focus of the talk is Shirky's notions about the enabling power of the Net and along the way he has a lot of interesting things to say about sharing, including Napster and a variety of other collective sharings like American dubbings of Japanese anime.
There's a lot of power in sharing and Shirky points to several interesting examples of that power. The video is a bit long and definitely not high production value, but definitely worth the time. I need to read the underlying book to parse through the ideas more fully than I can get from a single talk.
A friend pointed me to a new search tool, compfight, that allows you to search for pictures posted to the Web photo hosting site flikr. The cool part is that you can check a box that lets you search for Creative Commons-licensed photos.
Ironically, just about the time this suit was filed I pointed to an LA Times piece on how Disney had screwed over a naive young author. The Tolkein estate isn't young and it has lots of money to hire lawyers. Their primary claim seems to be the same, though - given the massive grosses taken in by the Rings movies they've been paid, um, let's see here... NOTHING.
I can't figure out from the various news stories whether WB is taking on all of New Line's debts and obligations or whether those will be shed the way New Line's 600 employees will be. Assuming that WB still wants to see the Hobbit movies made (on the "we will make another kajillion dollars this way" theory) then they'll probably come up with some kind of settlement that leaves them in clear control of the rights.
Kevin Kelly has caused a bit of a stir by putting out a model for patronage support of creative people. His concept is that of a "true fan" and the piece's title is "1,000 True Fans". The idea is that if a person was willing to spend about one day's salary (Kelly picks the arbitrary sum of $100) then an artist could be supported by one thousand such people.
This is on the surface a very attractive idea, not least because the numbers seem manageable. Most people well enough off to be regularly on the Net probably can manage a $100 donation. Most people can conceive of appealing to an audience of 1,000. It's almost the polar opposite of the mega-millions/blockbuster mentality that pervades so much corporate media production, from books to movies to music and so on.
Unfortunately the idea isn't as appealing once you dig past the ideal surface and into the gritty details. Probably the best counter-analysis I've read so far is John Scalzi's: "The Problem With 1,000 True Fans."
Scalzi starts from the point of being someone who probably has at least that many True Fans already. And then points out a number of uncomfortable things, such as those fans being drawn from a base population that is at least two orders of magnitude greater. And that even though the tens of thousands of well-off Netizens represents a good pool of people from which Fans may be drawn it's still a very small pool and quickly exhausted.
Just to pick my own personal favorite example, the south-by-southwest festival this month features over 2000 bands, interactive artists/designers, filmmakers, and other creative types. Supporting just that one festival by Kelly's patronage model would consume nearly a quarter-million True Fans. And that doesn't even scratch the surface of the vast sea of writers, musicians, and artists who would like to get paid and maybe even make a living from their creative work.
That doesn't make Kelly's idea stupid - it just makes it not-completely-thought-out, which is OK. Right now you can cast your eyes around the Web and find a hodgepodge of "Donate" buttons and similar mechanisms for fans to express their direct support of creative types; these also have their pros and cons. We need more big thoughts on how to develop alternatives to (that can co-exist with) large corporate funding.
A couple of interesting links from the pile today. First up is what looks like "Netflix for audiobooks", though they don't use that slogan. Simply Audio Books requires a monthly fee or prepaid subscription and based on how much cash you put up front they let you hold onto 1-4 audio books as long as you like.
For the next month, your free copy of American Gods is waiting for you at http://tiny.cc/WRiXE
Feel free to spread the link as widely as possible around the web. If it works, and people read it, then a) we may be able to put up another book and b) sooner or later they'll simply let us give away the book in electronic form....
Yes, that's what he said. A privilege of success on the scale of Gaiman's is that you can think in terms of just giving your books away. But it's still true that other authors of comparable stature and success haven't publicly stated this as a goal. So excuse me if I boost signal for Gaiman a little bit.
The discussion is partially about political views, but it's also got a few things to say about originality and 'plagiarism' in political speechwriting. As with so many other creative endeavors, this kind of writing does not occur in a vacuum. Rather, it sits within a stream of history, an awareness of what has worked earlier and what has failed, and it copies from the successes of the past. In some sense, speeches are copyrighted works, owned by the creators. When performed (spoken) they're also recognizable works, with added rights beyond the written texts. And yet, it makes no sense to build rigid regimes of ownership and limitation around them - doing so would weaken political discourse. But our conversation around copyright and ownership of IP has become so constrained of late that I don't see people generally willing to acknowledge this. As Obama says, we've "entered the silly season".
The logical question, not answered by Mr. Wallis, is why not take this material on line? For me the definitive online anti-war cartoon was always "Get Your War On" which never pulled any punches. On the other hand, it never made any money that I'm aware of - according to Wikipedia, the print book version's royalties were donated to landmine clearing organizations.
Could it just be that there's no established revenue model for taking independent cartoon work online and getting paid for it? I certainly read a lot of Web comics but beyond the occasional Paypal or donation drive by the cartoonist I don't pay for any of them. Like e-zines, about which I blogged earlier this month, online comics have been around for enough years that one would expect a reasonable set of business models to have emerged.
This is being painted in the context of net neutrality and copyright enforcement; I see it as a way to automate attacks on any particular users of any information. There's no reason this technique couldn't be used by, say, the Chinese government to disable access to Web sites it finds objectionable. Or paint your own picture.
The plan involves examining a torrent to see if it has material the MPAA doesn't want sent around, then selectively disabling pairwise communication between providers of the torrent and would-be consumers. The torrent identifies participants, so they can be blocked and Weaver describes a fairly clever scheme that disables pairwise communication without harming general network communication. The system has significant advantages to its users, not least of which are that it's completely automated and scalable. It also means AT&T gets out of the content-examination business and avoids the associated liability. The copyright holder (MPAA or other) is examining the content and assuming liability if legitimate content is blocked. This is the same situation we have now with DMCA 'takedown' notices.
The system isn't perfect - I can imagine counter-strategies - but it would certainly disable general P2P networks as they presently operate.
In this case the victim is one Deborah Gregory and the villain is Disney but the same story could be told hundreds of times - just change the names and it's the same again and again. In this case Gregory started as a successful but naive author, then signed with Disney for 4% of net. After two movies, millions of CD and DVD sales, and god-knows-how-much spin-off merchandising, Gregory has gotten exactly nothing for any of this. In fact, Disney won't even give her statements showing revenue and expenses that would allow her to pursue her share of the profits.
As the Times piece points out Hollywood has been using shady accounting and unfair contract terms to screw people for decades. They have all the power, especially when dealing with newcomers, and they use it shamelessly. Keep that in mind the next time they cry about how much money they're losing to "piracy"; I'm not a big fan of theft, but I sure do love schadenfreude.
Earlier this week I had a chat with Jason Nazar of docstoc.com. The company had contacted me a while back suggesting the chat. They're a beta-level software startup dealing with professional, legal, and business documents.
I was initially dubious that there was a Copyfight angle to this story. As Nazar himself pointed out, there's not a lot of illicit traffic on the P2P nets in business content, particularly when compared to the volume of entertainment-oriented content (music and movies primarily). That said, docstoc does have some points of interest for this blog, particularly in thinking about new business models that could be built around sharing.
First, back up a few steps. Docstoc is a hosting, sharing, and community site. Like YouTube it produces no original content bur rather holds and shares content (documents) uploaded by people. There's no membership fee and anonymous uploading is allowed. If you want to download a document, then you have to have a site login.
Since the point of the site is to share documents, everything placed on the site is in some sense free. Docstoc takes advantage of several Creative Commons licenses so when you upload files you can specify varying degrees of free - free to view and free to download being the two most popular I saw. The site uses a proprietary Flash program to embed the content for viewing, which allows them to encapsulate most of the popular business document formats (PDF, Word, Excel, PPT, and so on) in a uniform UI. In addition, they allow the player itself to be embedded; for example, here is a TechCrunch blog entry on WikiMedia's financials that contains an embedded docstoc player. Paradoxically, their use of an encapsulating player may both protect documents from casual copying while thwarting automated scanners like Attributor, which attempt to detect reposting of private content.
Docstoc is what I'd call a 'data cloud' play. Like Google Documents and other applications, there is an appeal to upload your content and access it from anywhere you have a net link, not just the hard disk on which the document currently resides. Like YouTube it also has nascent community features, including ratings, view counts, and personal blogs. Though these seem to be de rigeur in today's apps I'm not sure of their value here.
So, if everything is free, how does anyone make money? Well, from an individual point of view, docstoc is at worst free advertising. Many small companies and sole proprietorships put free samples, white papers, and other business-related downloads on their sites, which then languish in obscurity. These same files, uploaded to docstoc, become indexed and searchable both on the docstoc site and on major search engines that crawl the docstoc pages. When Google searches start to return hits into docstoc's cloud there's a good chance the uploader is going to see higher SERP placement than he could manage on his own.
Docstoc itself has to figure out how to make money on this and so far they don't have a solid model in place. Obviously there are advertising possibilities. As with any kind of targeted search, docstoc has the chance to generate high-quality sales leads to advertisers. There's also an option to partner with high-end paid content providers. These providers (think Gartner Group) are never going to put up their expensive paid research on docstoc. But they could put up teasers and previews, then kick back a piece to docstoc for sales leads and link referrals.
Finally there's the idea that documents + service are more valuable than just documents alone. This is similar to the open-source notion that software+service is better than only raw code. If I've just downloaded a business plan template it might behoove me to sit down with a consultant in my area to flesh that plan out. Again, docstoc is positioned to know what I've downloaded and possibly where I'm located so they can hook me up with a service professional, taking a small slice of the business referral revenue.
It's an unproven model, but that's true for most anything you can say about trying to make a legitimate business around freely sharing information. I don't know if I'm convinced enough that I would invest my own cash in the business, but I'll probably upload some documents and see how they fare.
