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Copyright is Unconstitutional: Update

See “Copyright is Unconstitutional” for an update:

Jason Beesinger called to my attention an interesting post by Terry Hart, “Copyright and the First Amendment: The Unexplored, Unbroken Historical Practice, Part 2.”Hart makes the intriguing observation that until a few decades ago there was virtually no  “scholarship concerning a potential conflict between the Copyright Clause of the US Constitution and the free speech and press protections of the First Amendment.” As he notes:

Eldred devoted only two sentences to the history of the two clauses: “The Copyright Clause and First Amendment were adopted close in time. This proximity indicates that, in the Framers’ view, copyright’s limited monopolies are compatible with free speech principles.”

Hart then takes up my argument in this post, that copyright is unconstitutional because the First Amendment came after, and thus partially overrides the copyright clause, and observes:

Kinsella is not the first to say this. For example, this is from a 1986 law review article: “Arguably, then, the [Copyright] Act is unconstitutional, since the free speech guarantee is an amendment which supersedes prior inconsistent constitutional text.”

The quoted article is David E. Shipley, Conflicts Between Copyright and the First Amendment After Harper & Row, Publishers v. Nation Enterprises, 1986 BYU Law Review 983, 985 (1986). However, Shipley ultimately rejects the argument:

Notwithstanding these arguments, … the copyright law is constitutional.

After all, we can’t have an “absolutist” view of the First Amendment. Why, that “would mean that perjury, obscenity and mail fraud were constitutionally protected.” Heavens to Betsy! We can’t have that, now can we? Ergo, because “we” “need” to outlaw … obscenity … copyright law must be okay even though it seems to fly in the face of the First Amendment. Whatever.

Hart, who elsewhere on his blog frequently and positively cites the work of pro-IP Objectivist Adam Mossoff, unsurprisingly rejects my  argument, and correctly noting that it is a “minority” position. The majority position is, by contrast: “The view of the First Amendment entirely displacing the earlier text is universally rejected, I think properly, as to copyright.” (C. Edwin Baker, First Amendment Limits on Copyright, 55 Vanderbilt Law Review 891, 893 (2002).)

Hart then finds another problem with my argument:

But there’s an even more compelling reason why the subsequent adoption of the First Amendment wouldn’t have or wasn’t intended to impact Congress’s copyright authority at the time.

Twelve of the original thirteen US states (Delaware was the lone exception) adopted copyright acts between 1783 and 1786 — before the current Constitution replaced the Articles of Confederation.

Of those twelve colonies, five of them provided for the freedom of the press in either their state constitutions or separate bills of rights before passing their own copyright laws: Virginia,8 Pennsylvania,9 Georgia,10 South Carolina,11 and Massachusetts.12

Two of the colonies did not enact freedom of the press clauses until after passing their own copyright acts13 while the remaining five did not include “bill of rights” style provisions in their constitutions prior to the ratification of the US Constitution.14

So by the time delegates arrived to draft the US Constitution, over one third of the states had enacted copyright legislation after providing for freedom of the press. This lends solid support to the idea that early US copyright law was perceived as being wholly consistent with the guarantee of a free press.

I don’t find this wholly persuasive. The fact is that copyright does cause censorship and thus infringes freedom of press and speech, which is protected by the First Amendment. Since the latter came later, it supersedes the former. The fact that some people did not “perceive” there to be a conflict does not mean there is not. (Lysander Spooner, whom Hart cites approvingly on the one issue Spooner was bad on—IP (see Hart’s post 15 Objections to Copyright from 1855)—also argued that even slavery was originally unconstitutional even though it was contemplated by the text (see n.3 and text at n. 3 above). The First Amendment-vs-copyright argument is not nearly as much a stretch as Spooner’s argument re slavery.) If some state legislators felt copyright and free speech were compatible, they were simply wrong. Their error does not change the incompatibility between two conflicting provisions of the federal Constitution. The question is whether copyright law is incompatible with the First Amendment, not whether state legislators around the same time thought they were compatible.

I’ll also say that the Bill of Rights, in my view, only affected the federal government’s power to enact copyright law. This is because the Bill of Rights limits federal, not state power—e.g. there were established state religions in some of the States in 1791, such as Congregationalism in Massachusetts. So even if some states had copyright law that was held by them to be compatible with their own constitutions, and even if the First Amendment would not affect those state laws, this does not mean the fedgov had the authority to enact copyright, if it is prohibited by the First Amendment.

Consider also that in Thomas Jefferson’s Letter to James Madison, August 28, 1789 (On the liberty to write, speak, and publish and its limits), he proposes to James Madison, then in the process of drafting the Bill of Rights, that the following be incorporated into the Bill of Rights:

Art. 9. Monopolies may be allowed to persons for their own productions in literature and their own inventions in the arts for a term not exceeding — years but for no longer term and no other purpose.7

If such a provision had been included, then there could be no argument that copyright is unconstitutional (though copyright longer than X years would be, unlike now). The courts would have to find a “balance” between the conflicting free speech rights and the copyright clause. But the new copyright-monopoly amendment was not added to the Bill of Rights. The old 1789 copyright clause was left alone. That means, to my mind, that the 1791 First Amendment supersedes the copyright clause to the extent they are incompatible.

Finally, let me say that I agree with John Hasnas that statutory law—and the Constitution is a statute—is often vague and ambiguous. There is not always an “objective meaning” to “find.”8 Given this, there is nothing wrong with interpreting ambiguous provisions in favor of liberty and justice.9 Since copyright is unjust and violates rights, and since it conflicts with free speech rights (which can be justified as a type of property rights and/or as a prophylactic limitation on dangerous state power), and since there is a decent argument against the copyright law, this is the construction we should favor—just as we ought to favor a construction of the Constitution that prohibits slavery than one that permits it or establishes it. The goal is justice, not finding the “right” interpretation of a statist document that often has no objective interpretation anyway.

This is especially so in the case of copyright, which is coming to be one of the greatest threats to liberty and the most dangerous weapons in the state’s arsenal.10 It is especially important to defeat copyright, and to use all the arguments at our disposal to combat it.

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As I have discussed before, the state is schizophrenic. It grants monopolies aimed at limiting competition (patents and copyright), and then penalizes companies for using (“abusing”) them, in contravention of state antitrust law–so that there is a “tension” between these state laws. Then courts have to “balance” these against each other. Each state law gives the state an excuse to ratchet up its power. Here’s an idea: get rid of both antitrust and patent law.1 (Likewise, there is also a “tension” between copyright censorship, and the right to free speech.)2

A recent illustration of this can be seen in the Engadget post FTC: Western Digital and Hitachi must give assets and IP rights to Toshiba:

Thought everything was looking rosy for the hard drive hitch of the year? Well, it looks like Federal Trade Commission reckons the union of Hitachi and Western Digital isn’t quite there just yet, ordering that the new company would have to shed some of its assets to Toshiba. The FTC wants to ensure a competitive climate in the 3.5-inch hard drive market and avoid Western Digital and Seagate — the two largest HDD manufacturers — carving up the whole sector between them. According to the FTC’s proposals, Toshiba has to receive the production assets needed to equal Hitachi’s current HDD market share, alongside access to Western Digital’s research and development resources and licenses to its intellectual property. Regulators had previously stated that WD could expect to sell on some of its production assets in order to get the tie-up okayed. Western Digital now has 15 days to hand over these assets to Toshiba — who, presumably, aren’t complaining — once the deal with Hitachi is finally inked.

 So here we have the state granting patents which naturally reduces competition. That is the very point of patents.3 They give rise to oligopolized industries with barriers to competition to smaller companies and new entrants.4 The state then rides in to the rescue with its antitrust laws: laws that are created and enforced by the one true monopoly: the state; and that are enforced against private companies that are either not real monopolies5 or that have monopoly power solely by virtue of the state’s interventions in the market, such as the patent system. The solution to all this is to (a) abolish the patent system, as well as other state laws and policies that tend to give rise to monopolies or oligopolies, such as minimum wage, etc. and (b) abolish state antitrust law, which would then be superfluous (or just aim it at the state itself).
  1. See EU newsflash: patents are anticompetitive!State Antitrust (anti-monopoly) law versus state IP (pro-monopoly) lawThe Schizo Feds: Patent Monopolies and the FTC; see also When Antitrust and Patents Collide (Rambus v. FTC)Antitrust vs. Trademark LawPrice Controls, Antitrust, and PatentsIP vs. AntitrustThe Schizophrenic StateIntel v. AMD: More patent and antitrust waste. []
  2. Should Copyright Be Allowed to Override Speech Rights? []
  3. State Antitrust (anti-monopoly) law versus state IP (pro-monopoly) lawIntellectual Property Advocates Hate Competition; IP Rights as Monopolistic Grants to Overcome the Public Goods Problem. []
  4. The Microsoft-Apple Gesture OligopolyControls breed controls, Monopolies breed monopoliesThe Patent Defense League and Defensive Patent PoolingAre Patents Needed to Make Up for FDA Kneecapping?Nortel Patents Sold for $4.5 Billion to Consortium Which Includes AppleApple vs. Microsoft: Which Benefits more from Intellectual Property?Patent Cross-Licensing Creates Barriers to Entry. []
  5. See Abolish antitrust law and the real monopoly: the state. []
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From the Mail online:

Families face having their internet cut off after laws to curb ‘piracy’ are upheld in court

By Sean Poulter

Last updated at 6:09 PM on 6th March 2012

 

Families who illegally download movies, music or books will appear on a blacklist and might – in future – have their internet services cut off.

The tough new regime, which is included in the Digital Economy Act, was upheld by the Court of Appeal  today after judges threw out a legal challenge.

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Nice post by Masnick on a growing resistance in Europe to database rights: EU Court Ruling Saying Sports Schedules May Not Covered By Copyright Pushes Back On Dangerous Database Copyrights. The US years ago rejected the sweat of the brow doctrine and thus made it harder to use copyright for mere collections of information like phone books, maps, and the like.

See also Peter Klein’s post Can Prices be Owned?, where I made the following comment:

My personal view is obvious here–prices are not scarce resources, but just facts, or information about facts; they of course are not property. (See my Against Intellectual Property article for elaboration.)

As to what the law actually is … I think it would be governed by cases like the Feist case, which said there is no copyright in mere collections of data, like a map… since it’s not original. It’s just facts. The Court said that the old idea of “sweat of the brow” is not enough. Just because you put work into assembling the information does not mean it’s original. This is why Congress tried to pass a database rights act a few years back, but never did.

For more on Feist see the Wikipedia entry.

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Kinsella on TWiL this Friday

I’ve appeared before as a guest panelist on This Week in Law (TWiL), and will be on again this coming Friday, March 9, at 1pm CST. Should be fun. The hosts, Denise Howell and Evan Brown, are always excellent and fun.

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Against Intellectual Property pirated!

My 2008 monograph Against Intellectual Property has long been available online for free. PDF, epub, audio, even various translations. And the epub is like 196k. Sooooo why would anyone …. pirate via torrent? E.g., Demonoid, Bitsnoop, Torrentcrazy… Hey, the more the merrier. I don’t mind people hosting and serving up my ideas as a backup…

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The Arbitrariness of Patent Law

This is one of my posts from 2009:

The Arbitrariness of Patent Law

by Stephan Kinsella on August 10, 2009

in AgainstMonopoly.org Blog Posts,Intellectual Property

As noted on Patently-O, the Supreme Court is set to address a question about the patentability of certain “processes”–whether the process has to be “tied” to a particular machine or apparatus, or transform a particular article into a different state or thing (“machine-or-transformation” test), to be eligible for patenting.

Now, I append below a summary of the various positions taken by various briefs filed in this case. The recommendations are all over the place. Examples like this should be considered by those libertarians who advocate IP and who think that “the courts” could just figure out the gray areas easily. They do not seem to realize this is purely artificial law, giving rise to insoluble questions–when the goal of the court is not to do justice, but to construe a decree of a legislature, you cannot expect just, or predictable, results. (For more on this, see my Legislation and the Discovery of Law in a Free Society, pp. 151 et seq.) As Kafka wrote, “Justice must stand quite still, or else the scales will waver and a just verdict will become impossible.

    • Yahoo (Bilski – Yahoo! Amicus Brief (S.Ct) (as filed) (8-6-09).pdf) The focus on physicality does not make sense in today’s technology.
    • strong>IBM (08-964 IBM.pdf) The proper test looks for a “technological contribution.”
    • Regulatory Data Corp (08-964 Regulatory Datacorp et al..pdf) Brief by John Duffy focuses directly on the historical importance of the statutory test. “The government is now asking this Court to impose a formalistic restriction on definition of “process” that would create an unprecedented and uncertain judicial limitation on patentable subject matter. This Court should reject that invitation just as it did more than a third of a century ago, when the government unsuccessfully advanced the very same argument. See Gottschalk v. Benson, 409 U.S. 63, 71 (1972).”
  • Accenture (08-964 tsac Accenture and Pitney Bowes, Inc.pdf) Machine or transformation test is not a reliable indicator of anything relevant.
  • Austin IP Law Ass’n ( 08-964 Austin Intellectual Property Law Association.pdf) The patent statute explicitly defines process quite broadly in Section 100(b). The Federal Circuit’s version of “process” in 35 U.S.C. § 101 is far narrower than the broad definition of “process” in 35 U.S.C. § 100(b) (2008).
  • Double Rock and other IP entities (08-964tsacdoublerockcorporation.pdf) The Federal Circuit test conflicts with Supreme Court precedent and Congressional intent.
  • Law Professors [Lemley et al.] (08-964ac20lawandbusinessprofessors.pdf) The distinction on patentable subject matter should be based on the distinction between applied and abstract inventions. Bilski’s claims fail this test.
  • Chakrabarty (08-964 Chakrabarty.pdf) Brief by Scott Kieff and Richard Epstein argue that patent rights operate “like a beacon in the dark” to start conversations between innovative entities and potential users.
  • Franklin Pierce Law Center (Bilski.pdf) Court should adopt the “useful, concrete, and tangible result” test.
  • TeleCommunication Systems (08-964nsactelecommunicationsystemsinc.pdf) Subject matter eligibility should be predictably broad.
  • BIO, AdvaMed, WARF and U of Calif (08-964 tsac Biotechnology Industry Organization et al..pdf) Any decision should be clear that biotechnology is patentable.
  • Conejo Valley Bar Ass’n (08-964.ac.Conejo Valley Bar Association.pdf) The substantive elements of the patent act (102, 103, and 112) do all the necessary work.
  • Novartis (08-964tsacNovartisCorporation.pdf) A process of diagnosis should be patentable.
  • Dr. McDonough (08-964_PetitionerAmCuTMcDounough.pdf) “American innovation is not confined to Industrial Age mousetraps and other cleverly contrived gadgets. The modern economic agent is more likely to encounter innovation today in the services they consume than in the contraptions they use. The present amicus curiae suggests that the decision of the Federal Circuit in this case is an attempt to apply an Industrial Age standard to address a perceived Services Age problem, a problem that the present amicus curiae suggests does not exist.”
  • State of Oregon (08-964_NeutralAmCuOregon.pdf) (The Patent Hawk filed this brief on behalf of all Oregonians – although apparently without any official state approval) The brief makes an important point: Although Section 101 comes first in the statute, it does not make sense to use it as a screening tool at the PTO. Rather, the PTO’s skills are in comparisons of prior art and ensuring that the elements of Section 112 have been satisfied.
  • Chicago IP Law Ass’n (08-964 ac Intellectual Property Association of Chicago.pdf) There are strong parallels here with KSR; CAFC rule is too rigid.
  • Borland (Amicus Curiae Brief (Borland Software Corporation).pdf) The CAFC test does not properly follow Supreme Court precedent.
  • Time Systems (08-964 ac On Time Systems.pdf) Some abstract ideas should be patentable.
  • Monogram BioSciences and Genomic Health (08-964 ac Monogram Biosciences Inc.pdf) Patentable processes can be non-physical.
  • Sachs and Brownstone (08-964 ac Robert R. Sachs.pdf) The CAFC test is limits the patenting of software, and a bad result.
  • Boston Patent Law Association (08-964tsacbostonpatentlaw.pdf) A broad scope of patentable subject matter better preserves the health of an innovative culture; many landmark inventions fail the Federal Circuit’s Bilski test.
  • Georgia Biomedical Partnership, Inc. (08-964 Georgia Biomedical Partnership Inc.pdf) The Supreme Court has consistently refused to offer a “rigid” test.
  • Dolby Labs (08-964 Dolby Laboratories et al..pdf) The important thing is to settle expectations.
  • Teles AG ( 08-964 Teles AG.pdf) Subject matter eligibility should be “dynamic.” “Further, the global nature of today’s economy strongly recommends that the United States patent system be harmonized with robust patent systems of other nations wherever possible.”
  • Medtronic (08-964 Medtronic.pdf) Provides specific examples of medical innovations that may be unpatentable under the Federal Circuit test
  • Houston IPLA (08-964 Houston IP Law Assoc..pdf) The test negatively impacts Dell’s “build-to-order” patent (5,963,743) ; AT&T’s linear programming patent (4,744,028); and Sperry Corporation’s LZW compression patent (4,558,302).
  • Intellectual Property Owners (08-964acintellectualproperty.pdf) Machine or transformation test is not the only test; In its transformation test for signals, the CAFC “unduly focuses on the contents of the data . . . rather than the manner in which those signals are generated;” a general purpose computer should be considered a “particular machine.”
  • AIPLA ( 08-964 American Intellectual Property Law Association.pdf) A new exclusionary test is not needed.
  • Houston IPLA (08-964 Houston IP Law Assoc..pdf) The test negatively impacts Dell’s “build-to-order” patent (5,963,743) ; AT&T’s linear programming patent (4,744,028); and Sperry Corporation’s LZW compression patent (4,558,302).
  • Armanta, Asentinel, Cybersource, and Hooked Wireless (08-964 Entrepreneurial Software Companies.pdf) Questions of patentability are causing software companies to lose value.
  • Mr. Meiers ( 08-964 Raymond C. Meiers.pdf) A patentable invention “applies manifestations of nature and achieves a useful result.” This is the tripartite system.
  • Univ. South Florida ( 08-964 University of South Florida.pdf)
  • Awaken IP ( 08-964 AwakenIP.pdf) The CAFC test is unworkable and is as bad as the vague idea/expression dichotomy of copyright.
  • BSA ( 08-964 Business Software Alliance.pdf) Section 101 has been consistently and correctly interpreted to cover software innovations.
  • PhRMA, etc. ( 08-964 PhRMA et al..pdf) Medical processes should be patentable.”
  • Caris Diagnostics ( 08-964 Caris Diagnostics, Inc.pdf) Diagnostic method patents are important and have been called into question by Bilski.
  • AIPPI (TooBig) A flexible test is better, and TRIPS requires a flexible standard.
  • FICPI ( 08-964 FICPI.pdf) “The § 101 analysis should focus on the section’s substantive utilitarian requirement, rather than retrospectively attempting to rigidly define the categories of patentable subject matter without the foresight of the particular form technological innovations may take in the future.

[Against Monopoly crosspost]

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From the Techdirt post Josef Anvil’s Favorite Techdirt Posts Of The Week:

… So where does all of this lead? To Glyn Moody’s article about the “We, the Web Kids” manifesto, my FAVORITE post of the week and possibly my favorite post EVER on Techdirt. This one article encapsulates almost everything that is discussed in this forum. Whether the debate is about SOPA/PIPA/ACTA/TPP or TSA or RIAA/MPAA or WIPO or Google or Facebook, we have to accept the fact that we are all far more connected than ever before, some of us are even hyperconnected, and it has changed us. We no longer just accept the opinions of “authority,” we want FACTS, we want data, we want the truth (or close as possible). This article details a fundamental shift in the way people THINK, and it’s not just the “web kids.” Personally, I didn’t grow up with the web, but I’m certainly not so blind as to miss how integrated into my life it is. Before the web, I didn’t talk to people all over the world on a daily basis, now I do. How I consume media is completely different, as I get to choose what, when, how, and why. In other words, the way things are done has CHANGED because of the internet.

This manifesto is a wake up call to politicians and corporations around the world. Your citizens and consumers have changed. They are becoming or have become a part of the digital era. They Skype, Tweet, FB, and IM their ideas, opinions, and comments without giving much thought about the process. They Google everything, they shop on their phones, they record video and post it before the “real news” can, they text while in meetings, they create with Gimp and NVU, they work with OpenOffice, and they consume media thru Netflix, HULU, Spotify, Grooveshark, HuffPo, and YouTube. They want to throw away physical storage and move stuff into the “cloud,” if you let them. They don’t want to hear that consumers shouldn’t dictate the market, because they know how to write reviews and share information. They don’t want to hear about laws being bought, and are willing to speak out and challenge the “old ways.”

One last point I would like to focus on, in the manifesto, which I found particularly engaging is the awareness of CwF + RtB, albeit heavily focused on RtB. In the digital world, we realize there isn’t much of a cost for packaging or distribution and so naturally we don’t see any reason to pay for those things. “But…but…but… the content is so valuable.” NO, it’s not. Charge me $9.99 for an ebook, and see how fast I discover new authors who will charge me $.99 or $.10 for content that is just as good. For $9.99, I want more than just pages of content that I can’t resell.

Sadly, because the content industry controls the broadcast medium, the digital revolution was not televised.

Here’s an excerpt from the post itself:

‘We, The Web Kids’: Manifesto For An Anti-ACTA Generation

from the future-in-safe-hands dept

One of the striking features of the demonstrations against ACTA that took place across Europe over the last few weeks was the youth of the participants. That’s not to say that only young people are concerned about ACTA, but it’s an indication that they take its assault on the Internet very personally — unlike, perhaps, older and more dispassionate critics.

As sometimes happens, a text has been floating around that captures rather well the spirit of that generation. It was originally written in Polish, and released under a liberal cc-by license; there are now a number of translations. As its author, Piotr Czerski, wrote in an email to Techdirt, its origins were quite humble:

I was asked by the journalist from local newspaper to write a text explaining difference between “analog” and “digital” generations. I thought that I should write something more: text, which can offer some kind of self-identity for all this different people protesting against ACTA. So I used the poetics of manifesto.

The whole piece is really well-written and perceptive. Here’s the key self-definition of those “Web kids” in the English translation by Marta Szreder:

We grew up with the Internet and on the Internet. This is what makes us different; this is what makes the crucial, although surprising from your point of view, difference: we do not ‘surf’ and the internet to us is not a ‘place’ or ‘virtual space’. The Internet to us is not something external to reality but a part of it: an invisible yet constantly present layer intertwined with the physical environment. We do not use the Internet, we live on the Internet and along it. If we were to tell our bildnungsroman to you, the analog, we could say there was a natural Internet aspect to every single experience that has shaped us. We made friends and enemies online, we prepared cribs for tests online, we planned parties and studying sessions online, we fell in love and broke up online. The Web to us is not a technology which we had to learn and which we managed to get a grip of. The Web is a process, happening continuously and continuously transforming before our eyes; with us and through us. Technologies appear and then dissolve in the peripheries, websites are built, they bloom and then pass away, but the Web continues, because we are the Web; we, communicating with one another in a way that comes naturally to us, more intense and more efficient than ever before in the history of mankind.

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As discussed in the latest episode of This Week in Law (at around 1:02:00), a recent press release by the evil Business Software Alliance cheers on a six year prison sentence and $400,000 “restitution” fine imposed on a Texas man for “software piracy”:

The Business Software Alliance (BSA) today applauded the sentencing of the owner and operator of multiple rogue websites found to be illegally selling software that was stolen from BSA member companies Adobe, Autodesk, and Microsoft.

US District Court Judge, Reed O’Connor, sentenced James Clayton Baxter of Wichita Falls, TX to nearly six years in prison for software piracy and ordered him to pay more than $400,000 in restitution after pleading guilty to copyright infringement.

Disgusting fascist corporatism.

Related post: Man sentenced to federal prison for uploading “Wolverine” movie

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There Are No Good Arguments for IP-Dawkins Redux

Regarding There Are No Good Arguments for IP-Redux:

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Go to https://c4sif.org/aip/.

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Listening to mainstream commentators opine on how to improve the patent system is getting to be increasingly frustrating. Even though patent and copyright should be abolished,1 as I noted in Patent Reform is Here! O Joy!, incremental reform would be welcome too–as long as it’s significant, and unambiguously positive. There are lots of things you could suggest: shorten patent terms from 17 to 10 years. Not enough, but progress! Get rid of injunctions. Provide an independent inventor defense. Choke back on software patents. Provide a “working” or reduction to practice or “working model” requirement. I’m easy.

In a recent Slate post, How To Kill Patent Trolls, tech journalist Farhad Manjoo proposes that the solution to the problem of patent trolls is “Hire a crowd of amateur sleuths and give out a lot of prize money.”

There are a couple of problems with this proposal. First, it aims to improve patent “quality” by weeding out “bad patents”–those that “should not have” been granted–by using crowdsourcing and incentives to increase the quality of prior art brought to the patent office’s attention. Second, that improving patent quality will address the patent troll problem.

Let’s take the second issue first. Improving patent quality will only reduce the number of bad patents. Instead of the USPTO granting, say, 224,505 patents per year (or 247,741, depending on the source), 58% of which are “crap” (a technical word we patent attorneys use), say–it would only end up granting maybe 100,000 patents, all or most of which are “good”–meaning, they “should” have been granted, according to US patent standards of novelty and nonobviousness. But the thing to realize is that bad patents are not the problem. It is good patents that are the problem. If you have a perfect patent system that generates 100,000 “good” patents a year this is 100,000 little monopoly grants of privilege that the holders can use to stop competition, emulation, copying. We can’t have unbridled, “dog-eat-dog” competition, ya know! This ain’t no blasted free market, ya hear?

Further: bad patents versus good patents has nothing to do with the patent troll “problem”. This alleged “problem” is a result of the fact that there is no requirement to use the invention your patent covers, or even to produce a working model of it. There is no working, use, or reduction to practice requirement. The patent statute requires that the claimed invention be novel, and non-obvious, and also have “utility”–i.e., that it function. But the latter is just assumed, except in rare cases where it appears to the Examiner that something impossible like a perpetual motion machine is being claimed. Filing a written description of an invention substitutes for the requirement to reduce the invention to practice–it’s called a “constructive reduction to practice.” Given this: improving patent quality has nothing whatsoever to do with the “troll” problem. Even if you get rid of the 58% crap patents, the remaining 42% “high quality” patents will still be granted to patentees, some of which are not using the claimed invention. There is no reason a patent troll cannot own and use a “high quality” patent! So what is Manjoo talking about?

At most, the crowdsourcing solution will increase–at someone’s expense–the quality of prior art examined for existing patents. This will reduce the number of “bad” patents, but will increase the quality of “good” patents that pass the heightened test, which will only increase the bargaining power of the holders, since the chance of defeating these strong patents in trial are reduced.

Update: see Gigaom: Can big data fix a broken system for software patents?

  1. See Patent vs. Copyright: Which is Worse?Where does IP Rank Among the Worst State Laws?The U.N. Threat to Internet Freedom; Masnick on the Horrible PROTECT IP Act: The Coming IPolice StateThe Ominous PROTECT IP Act and the End of Internet Freedom. For examples of copyright censorship, see Libraries: Prepare to burn foreign books, courtesy copyright lawThe Patent, Copyright, Trademark, and Trade Secret Horror FilesParamount Trying to Ban “Godfather” Sequels with CopyrightCopyright Censorship versus Free Speech and Human Rights; Excessive Fines and the Eighth Amendment. See also  Patent Trolls Cost The Economy Half A Trillion Dollars since 1990Yet Another Study Finds Patents Do Not Encourage InnovationEU newsflash: patents are anticompetitive!Intellectual Property Advocates Hate CompetitionIP Rights as Monopolistic Grants to Overcome the Public Goods Problem; also Samsung, Apple continue patent disputeApple accuses Motorola, Samsung of monopolizing markets with patents–or, you’ve got to be kidding meWe Hope Apple Wins the Patent WarsAndroid Patent Trouble Worsens: Motorola Considers Collecting IP RoyaltiesApple vs. Microsoft: Which Benefits more from Intellectual Property?EU: Apple-Samsung row could be stifling competitionEU Injects Itself Into Apple-Samsung Patent War. []
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Public Knowledge’s tepid proposals for copyright “reform”

Patent and copyright should be abolished, of course–and the sooner the better. They are both–especially copyright–threats to human freedom and prosperity.1 As I noted in Patent Reform is Here! O Joy!, incremental reform would be welcome too–as long as it’s significant, and unambiguously positive. And, I would add: non-trivial, i.e. significant, substantial, meaningful.

I laid out some suggested incremental patent and copyright reforms in Radical Patent Reform Is Not on the Way and How to Improve Patent, Copyright, and Trademark Law. In the case of patents, significant reform would include things like:

  • Reducing the Patent Term
  • Removing Patent Injunctions/Providing Compulsory Royalties
  • Adding a Royalty Cap/Safe Harbor
  • Reducing the Scope of Patentable Subject Matter
  • Providing for Prior-Use and Independent-Inventor Defenses
Recent patent reform, however, made almost no appreciable improvement, with the exception of a broadened prior-use defense (see The American Invents Act and Patent Reform: The Good, the Meh, and the Ugly).
Real copyright reform would include:
  • Radically reduce the term, from life plus 70 years to, say, 10 years
  • Remove software from copyright coverage (it’s functional, not expressive)
  • Require active registration and periodic re-registration (for a modest fee) and copyright notice to maintain copyright (today it is automatic, and it is often impossible to determine, much less locate, the owner), or otherwise make it easier to use “orphaned works
  • Provide an easy way to dedicate works to the public domain — to abandon the copyright the state grants authors
  • Eliminate manifestly unjust provisions of the Digital Millennium Copyright Act (DMCA), such as its criminalization of technology that can be used to circumvent digital protection systems2
  • Expand the “fair use” defense and clarify it to remove ambiguity
  • Provide that incidental use (e.g., buildings or sculptures appearing in the background of films) is fair use
  • Reduce statutory damages
  • Make the losing copyright-plaintiff pay the victim’s fees (see my explanation in  “This is Why I Pirate”: How A Groundless Copyright Threat Destroyed A Young Film Student’s Dreams and Career)

Now, according to an ars technica report, Why wait? Six ways that Congress could fix copyright, now, “Public Knowledge (PK for short)  has released an Internet Blueprint—six bills that the group says could “help make the internet a better place for everyone” and that “Congress could pass today.”

Let’s take a look at these six proposals, to see if any of them are non-trivial and unambiguous improvements to the current situation (none of them will “fix” copyright law; only abolition will do this). I’ll quote the ars technica summary for each:

Shorten copyright terms

The current copyright protection time window is quite large: life of the creator plus a whopping 70 years (or 95 years total for corporate authorship). It’s hard to believe that when the Republic was young, copyright lasted 14 years, renewable by another 14.

“Continually expanding the term of copyright comes at a cost,” the new Blueprint contends. “By giving an author a monopoly on an expression, it prevents other people from building on that expression to create new works.”

The Public Knowledge reform proposal isn’t particularly radical, though—it would reduce most copyright terms to life of the author plus 50 years, or “a flat 50 years if the author was an employee.”

This is trivial. Going from life+70 to life+50 will do little to solve the copyright problem. And it’s probably illegal anyway under the Berne Convention. We need to get out of the Berne Convention and cut terms back to the original 14+14 at least.

Stop abuses of the DMCA

The Digital Millennium Copyright Act allows copyright holders and their representatives to file takedown notices against sites that they claim are hosting infringing content. The original content poster can file a counter-notice, but the content still has to stay down for ten days.

The problem, PK says, is that right now there isn’t much risk in sending a site a bogus takedown notice. “When it comes to takedown notices, it often seems like alleged infringers are assumed guilty until proven innocent,” the Blueprint contends.

The proposed fix: Harmed defendants should be able to ask for damages from $200 to $2,500. A judge should be able to boost that upper limit forfeit by a factor of ten if she finds that the takedown demander was lying.

Greater penalties would be better–or better yet, get rid of the DMCA’s takedown provisions altogether–but this is a minor change I would welcome.

Cracking DRM

At present, if you deploy some kind of device to cut through the DRM on a DVD, you are a law breaker, even if you plan to utilize the copyrighted content legally. Public Knowledge has been calling on Congress to address this inconsistency for quite some time (as has Ars Technica’s Tim Lee), allowing users to bypass digital locks if they’re doing so for non-infringing purposes.

“That means that only lawful uses—such as uses with the copyright holder’s permission, fair uses, or other uses under limitations and exceptions to copyright law—could legally circumvent DRM under these changes,” PK’s recommendation observes. The odds of this happening are slim to none; despite telling everyone who will listen that all of their works are being shared on the Internet, big rightsholders argue that making circumvention software legal in any scenario will lead to even more pirating of their works.

Fairly minor; but, okay, a slight improvement.

Stop copyright bullying

Some copyright lawsuits aren’t about copyright infringement, PK warns. They’re really about targeting speech that the plaintiff doesn’t like. So the group wants lawmakers to create a special procedure, a “motion to strike,” that would allow defendants to ask a judge to consider this possibility if the suit poses “a significant harmful effect on free expression.”

The motion would suspend the expensive discovery phase of a trial until the judge makes her call on the motion. Public Knowledge’s proposed legislation would also legalize “transient” copies.

“A simple fact of digital devices is that they necessarily make copies of the things that they process,” the Blueprint points out. “This technicality creates liability where there should be none—for instance, it should be uncontroversial that a CD player with a buffer to prevent skipping shouldn’t need a license in order to play a CD.”

If you have to be in court already to ask a judge to consider this, then this is a remedy that won’t do much good, since most people can’t afford to litigate and will cave early. So this does little to stop the chilling effect on free speech imposed by copyright. Further, all it does is restate the already-accepted “tension” between copyright and freedom of speech. Judges are already aware of this tension, and have to engage in a “balancing” already. The problem is that copyright and free speech are incompatible. You are going to have a “tension” and a need to balance, so long as both incompatible provisions are considered to be the law. (For more on this see Copyright is UnconstitutionalSupreme Court Engages in Real Copyright PiracyWilliam Patry on How to Fix Copyright, Should Copyright Be Allowed to Override Speech Rights?)

Make “fair use” fairer

You might believe that you have deployed copyrighted content for some fair use, but if a judge disagrees, you could find yourself on the hook for up to $150,000 in statutory damages per infringing use. Public Knowledge wants Congress to pass an amendment that would eliminate statutory fines if a defendant shows that he thought he had reasonable grounds for believing his use of a work was fair (the plaintiff could still sue for actual damages caused by the use).

“The fair use doctrine in copyright is designed to allow the public to make use of works without permission of the original author,” the Blueprint notes. “The risk of a lawsuit, however, often hinders people from taking advantage of all that fair use has to offer.”

I don’t see this provision helping that much, but any expansion or clarify of the fair use defense is to be welcome.

[Make Copyright-related Trade Agreement Negotiations Public]

Finally, Public Knowledge wants legislation requiring the US Trade Representative to publicly disclose any copyright or intellectual property-related proposals it makes to drafts of trade agreements. And any USTR advisory groups, which general include plenty of people from the “industry,” should include “representatives of the public interest unaffiliated with industry.”

Once you register at the Internet Blueprint site you can vote on these proposals, and submit your own.

“Our goal is for people and organizations to propose their own ideas that can also be turned into draft legislation on other topics that will evolve into a positive agenda for Internet change,” says PK’s Michael Weinberg.

I think this one is important: trade agreements negotiated in secret that contain copyright enhancment measures, like the already-signed ACTA or the looming TPP, are a huge concern.

But these tepid proposals for reform avoid almost any real reform. In there proposals there is:

  • No proposal to radically reduce the copyright term
  • No proposal to remove software from copyright coverage (it’s functional, not expressive)
  • No solution to the “orphaned works” problem: no requirement for active registration
  • No way to get rid of copyright or to dedicate works to the public domain
  • No proposal to totally eliminate the provisions of the DMCA that criminalize technology that can be used to circumvent digital protection systems
  • No proposal to provide that incidental use (e.g., buildings or sculptures appearing in the background of films) is fair use
  • No proposal to reduce statutory damages
  • No proposal to make the losing copyright-plaintiff pay the victim’s fees

My overall assessment: meh. You can do better. Easily.

  1. See Patent vs. Copyright: Which is Worse?Where does IP Rank Among the Worst State Laws?The U.N. Threat to Internet Freedom; Masnick on the Horrible PROTECT IP Act: The Coming IPolice StateThe Ominous PROTECT IP Act and the End of Internet Freedom. For examples of copyright censorship, see Libraries: Prepare to burn foreign books, courtesy copyright lawThe Patent, Copyright, Trademark, and Trade Secret Horror Files); Paramount Trying to Ban “Godfather” Sequels with CopyrightCopyright Censorship versus Free Speech and Human Rights; Excessive Fines and the Eighth Amendment. See also  Patent Trolls Cost The Economy Half A Trillion Dollars since 1990Yet Another Study Finds Patents Do Not Encourage InnovationEU newsflash: patents are anticompetitive!Intellectual Property Advocates Hate CompetitionIP Rights as Monopolistic Grants to Overcome the Public Goods Problem; also Samsung, Apple continue patent disputeApple accuses Motorola, Samsung of monopolizing markets with patents–or, you’ve got to be kidding meWe Hope Apple Wins the Patent WarsAndroid Patent Trouble Worsens: Motorola Considers Collecting IP RoyaltiesApple vs. Microsoft: Which Benefits more from Intellectual Property?EU: Apple-Samsung row could be stifling competitionEU Injects Itself Into Apple-Samsung Patent War. []
  2. As explained here: “[W]hile it may well be fair use for an individual consumer to store a backup copy of a personally owned DVD on that individual’s computer, a federal law has nonetheless made it illegal to manufacture or traffic in a device or tool that permits a consumer to make such copies.” Chew on that one. It reminds one of the proposed thought crime of leaving the US with the intention to use drugs  in another country where they are legal… []
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As noted on Techdirt, Yahoo Going Patent Troll: Threatens Facebook Over Patent Infringement. On TechCrunch TV, former patent examiner and democrat/Obama advisor (but not a patent lawyer) Erin-Michael Gill opines on this: The Man Who Predicted the Yahoo/Facebook IP War on Why Patents Still Matter [TCTV].

Gill is right that patents still “matter.” Hey, taxes “matter” too. I guess if your house is being taken by a state government to give it to Walmart, eminent domain “matters” too. But this doesn’t mean these statist polices are justified, or are anything more than a hindrance to human life and freedom and commerce.

Even though patent “reform” is needed, Gill implies that we need a patent system nonetheless, so big companies can’t just “take” your idea. Newsflash: big companies already have oligopolistic and anti-competitive advantages because of patents.1 And if someone competes with you by emulating you, they are not “taking” your idea from you. Gill also naively implies that there are ways to reform the patent system, as in the recent Obama patent reform–which is a joke (see The American Invents Act and Patent Reform: The Good, the Meh, and the Ugly).

 

  1. The Microsoft-Apple Gesture Oligopoly; Controls breed controls, Monopolies breed monopolies; The Patent Defense League and Defensive Patent Pooling; Are Patents Needed to Make Up for FDA Kneecapping?; Nortel Patents Sold for $4.5 Billion to Consortium Which Includes Apple; Apple vs. Microsoft: Which Benefits more from Intellectual Property?; Patent Cross-Licensing Creates Barriers to Entry. []
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