Archive for the ‘The Democratization of the Tools of Production’ Category

Would you hire a couple professionals or every single passionate amateur?

Next time you need to dig through a massive amount of publicly-available information to find prior art, research copyrights or patent filings, would you hire a) a team of experts* or b) an intern and spend $1,000 on Mechanical Turk** (or, more possibly, c) both)?

Quoted deep in an article by Blaise Alleyne in Techdirt, Music Fans And ‘Amateur Musicologists’ May Impact Coldplay/Satriani Copyright Battle, three partners in the Intellectual Property Group at Kilpatrick Stockton LLP discuss the role of “amateur musicologists in Joe Satriani’s lawsuit against Coldplay for copyright infringement:

What makes the Internet commentary regarding the two songs particularly interesting is that much of it replicates the type of expert analysis that both sides will likely use if the case goes forward. In music copyright infringement cases, it is rare for parties to rely solely on bare assertions of copying or independent creation. Instead, they frequently engage “musicology” experts to undertake detailed analyses of every element of alleged similarity between the two works and conclude whether all or portions of one work were copied from the other. The parties and their experts in [this case] should consider the analyses of the “amateur musicologists” that have weighed in via the Internet and other media, if for no other reason than they may be informative of how a jury might ultimately view the case…

While Satriani v. Martin may not go to trial for a variety of reasons, it is clear that user-generated content sites like YouTube have the potential to alter the way music cases — and other types of copyright case — are developed. Because advances in technology allow the public to participate in real-time infringement debate, future parties would do well to monitor this “chatter” as it could uncover evidence and theories that may be helpful to the case of the copyright owner, the alleged infringer or both. [emphasis added]

Alleyne adds to the commentary:

The online discussion is largely what has made this case so unique. There have been successful copyright infringement lawsuits over melodies in the past …, but never has the public been able to participate so much in the debate.

…The melodies are undoubtedly similar, but the legal question is whether or not Coldplay copied from Satriani. It’s not just Coldplay’s word against Satriani’s, but music fans and “amateur musicologists” are gathering evidence and providing theories which are having a noticeable impact on the proceedings.

And people say the web is all just noisy chatter; done right, the unorganized mass of people can influence institutions with more power than ever before.

Obviously experts and amateurs have their place: the opportunity is using combinations of both in the right ways and situations.

* Even “experts” have their odd deficiencies.
** Amazon’s Mechanical Turk: a “crowdsourcing marketplace that enables computer programs to co-ordinate the use of human intelligence to perform tasks which computers are unable to do.”

What’s free today may not be free tomorrow.

Not to rehash the debate over “free”, but the economics behind free underlies nearly every conversation and business decision today. Let’s focus on one small part of the debate.

The economics behind “freeconomics” blurs the distinction between “customer” and “user”; even though the user may not bear the cost, someone does. Companies that provide services to users for free still bear the marginal costs of the free services, therefore their business models are based on finding people and companies to subsidize the free services.

If the people subsidizing “free” go away (and that includes cash cow product lines, investors, venture capital, advertisers, paying users, buyers of aggregated and structured data, etc.), then what’s free right now may not be free in the future.

While the debate around “free” tends to center on the web, the web is merely one of many networks in use today. Take the examples of telecommunications (fixed and wireless), transportation (automobile, train et. al.) and energy networks: each network contains an embedded technological and economic structure that dictates the rules and incentives behind each interaction over the network.

But these networks aren’t static, and as each network becomes structurally more like the web their fundamental economics will change.

An example? Let’s start with the “mobile web”; Aaron Chua starts the discussion with Can Amazon be the default payment API for the Web? and I add in my comment:

Touching back to the piracy issue, is the [different economics behind the "regular" web and the mobile web] a failure of pricing mechanisms or is it a failure of distribution networks and transaction costs (including non-priced transaction costs)?

The digital economy isn’t forcing prices to zero; it’s forcing prices to their marginal costs. Marginal costs are higher in mobile (and virtual) at the moment because they have different pipes, different gatekeepers, different marketmakers, creators have substantially different access to the tools of production and distribution, low standardization of interfaces, etc. All of those create higher marginal costs, and combined with the “controlled” nature of mobile and virtual, there simply isn’t the same level of competition as in the non-mobile Internet… for now.

A day will come when the difference between the “mobile web” and the “real web” are framed less by the pipes and more by the access devices and their interfaces. Viewed more broadly, as innovation changes the structure of our networks, new technological possibilities and constraints will re-frame our economic structures, behavioral incentives, business opportunities and usage behavior.

Viewed simply, tomorrow will not be like today, tomorrow’s strategies will not be today’s, and what’s free today may not be free in the future.

And what’s expensive today may be free tomorrow: literally.

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