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Why copyright laws must get even tougher

While Canadians tremble with anticipation at the arrival of new copyright legislation, the Americans are doing the same. Again.

And while we’re concerned that our new legislation might be even more imbalanced than the U.S. Digital Millennium Copyright Act, the Americans are preparing to toughen up their 10-year-old DMCA to make the penalties for copyright infringement even more stringent.

The U.S. House of Representatives, in a spirit of bipartisanship, on Wednesday introduced a bill that will increase civil penalties for copyright infringement, strengthen criminal enforcement, and create a new federal agency charged with bringing about a national and international copyright crackdown. The bill, called the Prioritizing Resources and Organization for Intellectual Property Act, or PRO-IP, was introduced by John Conyers, the chairman of the U.S. House judiciary committee.

This means that the U.S. government agrees with major copyright holders, such as the Recording Industry Association of America, who emerged victorious some weeks ago after suing a single mother from Minnesota for sharing 24 songs on Kazaa. The jury awarded the RIAA $222,000.

And PRO-IP works on the premise that such verdicts are not enough.

The new legislation would make it easier to obtain maximum penalties for repeat offenders; the current 10-year prison term for repeat offenders will stay, but be toughened by removing the low-end limit that the repeat offender must have distributed at least 10 copyrighted works within six months. In other words, it will no longer matter how many songs a repeat offender posts after an initial conviction, the authorities will go for the maximum sentence.

The U.S. bill also seeks to create a new federal bureaucracy called the White House Intellectual Property Enforcement Representative (WHIPER), whose chief would be appointed by the president and whose authority would extend to pressing other countries it identifies as IP violators. There would be 10 “intellectual property attaches” placed into U.S. embassies around the world.

And so it appears that not only is the U.S. Congress crafting intellectual property legislation that seeks to protect large corporate interests while leaving smaller ones to thrash about helplessly, they are doing it with the aim of enforcing its own laws in other countries, justified as complying with the World Intellectual Property Organization's treaties. It’s the same old argument — the Americans are giving themselves a mandate to “protect American interests” in the rest of the world.

But I don't think it's that simple.

The PRO-IP bill does something else that previous legislation has only hinted at: That it's not simply a matter of governments on both sides of the border bending to the demands of their corporate citizens. In fact, the governments' demonstrable lack of interest in public input to the intellectual property issue shows that legislators are as much leading the forces of tougher intellectual property rights as they are following them.

Which begs the question: What's in it for governments?

So far, we have wasted most of our outrage on the recording industry, whose comical and ham-fisted attacks on single mothers and dotty grandparents have become a lightning rod for accusations of corporate bullying. We haven't been looking at why governments have seemed so hell bent on helping them do it.

My theory is that laws like this are designed to fundamentally change the nature of what we make and produce. Soon, the developed world will no longer be able to behave as it always has in the global marketplace in terms of the goods and services we sell — as we improve our economic well-being we can no longer compete with cheap labour from other countries. Instead, we will start to count intellectual property as our primary domestic product. We will leave manufacturing of our goods to other countries, and use the IP argument to shut down imports of products made more cheaply elsewhere.

No, Washington and Ottawa aren't being bullied by lobbyists. They're actually leading the lobbyists into the future, one in which intellectual property will be the coin of the realm.

  1. Chris Brand from Canada writes: Matt Skala has a great page about "Fiat goods" at http://ansuz.sooke.bc.ca/lawpoli/finance/ip-vs-inflation.php that details a theory along these lines.

    Of course the USA is a net exporter of copyrighted works whereas Canada is a net importer, so what's good for the USA is not necessarily good for Canada. We already pay the US something like a billion dollars a year for copyright royalties. Giving more rights to copyright holders can only increase that number.
  2. Double Speak from Canada writes: How sad .. I feel sorry for americans perhaps Americans should have another revolution ..Maybe Elect Ralph Nader as US President instead of some Repug (neo con) or Democrat.

    Thats why Canadians should be worried about Copyright bill tryiing to be introduce by the NEO CON conservatives of Canada Party (branch plant party of the Repug Party of USA - led By the the Biggest liar and spender in recent US History - GW Bush) . I hope the Repugs under the leadership of GW Bush will bankrupt the USA into a third world country status -- Already USA deficit has climbed over 800 billion - USA spends 10 -15 billion a month in their war in Iraq and Afghanistan. Thats 180 billion a year which would have been used to fix and build new US infrastructure, improve education and Health, ..but Oh well

    I'm looking forward toward a new federal election to toss out the "Sell out Canada Party" or in otherwords the Harpie Con Party.
  3. Russell McOrmond from Ottawa, Canada writes: Your article gets into what I was talking about in a past article "Key question about the shape of the knowledge economy" http://www.digital-copyright.ca/node/4346

    It really comes down to what I consider a potentially economically fatal misunderstanding of an analogy about the new economy compared to the industrial economy:

    Is the relationship of knowledge in the knowledge economy like products in the industrial economy,
    or
    is knowledge in the knowledge economy like machines in the industrial economy?

    If Canada follows the United States in getting this wrong, it will make us into a third-world country compared to those countries that understand this relationship properly.
  4. Geoffrey Glass from Burnaby, writes: Russell is exactly right. Eben Moglen illustrates why control of knowledge can incur tremendous economic costs - especially in those economies that depend upon knowledge the most:

    "Imagine if you will for a moment a society in which mathematics has become property, and it's owned by people. Now every time you want to do anything useful - build a house, make a boat, start a bridge, devise a market, move objects weighing certain numbers of kilos from one place to another - your first stop is at the mathematics store to buy enough mathematics to complete the task which lies before you. You can only use as much arithmetic at a time as you can afford, and it is difficult to build a sufficient inventory of mathematics, given its price, to have any extra on hand. You can predict, of course, that the mathematics sellers will get rich. And you can predict that every other activity in society, whether undertaken for economic benefit or for the common good, will pay taxes in the form of mathematics payments."

    The rest of his brilliant speech (which focuses on software and eduction) is here:

    http://www.geof.net/research/2006/moglen-notes
  5. Some Guy from Canada writes: A vapid and tired argument in favour of intellectual property legislation. If anything, IP introduces rigidities into the economic system that make the economy less competitive while also ensuring the continuation of inefficient and anti-innovative monopolies. Monopolization is the single rationale for protecting intellectual property in the first place. This is a sad state of affairs for a world that seems to be on the edge of environmental catastrophe, to which only technological innovation, not the stifling of of creativity and not even multilateral agreements, will offer any kind of credible solution. It is time for a new paradigm, for the current economic and legal model does not work in an interconnected global economy.
  6. Devil's Advocate from Canada writes: Under the DMCA it's illegal to try to disassemble, bypass or remove any type of copyright protection on your computer. You are NOT allowed to decide what you will and won't run on your computer.

    Under the DMCA it is illegal to remove the rootkit Sony shipped with their music CD's. If you try, you could be sued for big $.

    WTF does Canada need that for?! Industry Canada's latest study showed downloading had a negligible effect on music sales.

    I know when I've downloaded movies, I've later gone out and bought the DVD's for them, since the download quality sucked. It's like free advertising.

    Ottawa should refuse to allow all consumers and consumers rights to be raped because of pressure from the MPIAA and RIAA.

    Oh - and Double Speak - you might want to visit a therapist. You're ramblings show an obsession with stupidity. Both the Liberals and Conservatives are behind these copyright reforms. You need to pull your head out of your posterior and realize it's not a partisan issue.
  7. Bill Mustard from St. Marys, writes: Why do you think that the current goods and services economies in the lower cost of production countries cannot become the IP economies as well? IBM has 70,000 employees in India, Bollywood products have crossed the ocean, even Cuba has a higher literacy rate than the US. Until the wage/cost variations across the world are balanced more evenly the global economy will turn the "rich" into consumers, and the "poor" into producers. Governments are essentially irrelevant, or at best enablers.
  8. Green Defender from Canada writes: Devil's Advocate from Canada writes "Both the Liberals and Conservatives are behind these copyright reforms." So whats the difference between Liberals and Cons?? They are basically the same. Vote Green ..Green Party ( NDP ) supports fair use rights not like Liberals or Conservatives. BTW Devils Advocate "Double Speak" is correct on what it costs the americans in their war in Iraq and afghanistan . Cost of Iraq war nearly $2b a week By Bryan Bender, Globe Staff | September 28, 2006 WASHINGTON -- A new congressional analysis shows the Iraq war is now costing taxpayers almost $2 billion a week -- nearly twice as much as in the first year of the conflict three years ago and 20 percent more than last year -- as the Pentagon spends more on establishing regional bases to support the extended deployment and scrambles to fix or replace equipment damaged in combat. The Congressional Research Service report estimates that after Congress approves two pending bills, the total war costs since Sept. 11, 2001, will reach about $509 billion. Of that, $379 billion will cover the cost of operations in Iraq, $97 billion will be the price tag for Afghanistan operations, and $26 billion will have gone to beefed-up security at US military bases around the world.
  9. A. Nonymous from Compensation, United States writes: It's all about being compensated for intelluctual works.

    For example, this post is my intelluctual property, I should be compensated each time people read it.

    A micro-payment system is clearly needed for the web. Each time we read a blog, we would compensate the writers.

    Each post I make, I would be compensated.

    It's a win-win situation, the wave of the future!

    BTW: You all owe me compensation for reading this post, please remit payment to: Greedy Corporation, Faceless Employee, RIAA.
  10. Henry Egan from Cyberland, Canada writes: Thank goodness Mr. Prentice stopped it.

    Your theory is wrong, if I had to make my living by making IP, I would starve. I think most Canadians are in that boat too and we still must produce goods and services. Our resource based economy does not need IP protection like the DMCA here. Our few Canadian entertainment IP producers probably need some protection, but not this kind of protection.

    The problem with the DMCA style rules is that they are solely designed for the benefit of the big foreign media companies. They have deep pockets and they enforce these rules with litigation. The individual consumer has absolutely no chance against them, it does not even approach what I would call a fair fight.

    Consumers are people, they are voters, they need rules to protect them from large organizations. They do not need rules that are designed to permit large organizations to prey upon them.

    Of course thinking individuals will oppose legislation like this, it has nothing to do with left or right, but more to do with fairness and basic freedom.

    It is a bit scary that this legislation got as far as it did without significant public consultation. To let only the producers contribute to it's content was immoral and very undemocratic. Somehow they got away with it in the United States, but hopefully not here.

    These new rules should be crafted with a true balance between producers and consumers, however only Canadian producers should be the ones primarily consulted in drafting Canadian legislation. Treaty or no treaty, we are, after all, still a sovereign and democratic country.
  11. M Sherrard from Fredericton, NB, Canada writes: As there's no thumbs down feature for this article, I'm afraid I'll have to go beyond...

    Culture should never be considered a commodity to hold with exclusivity. And we certainly shouldn't consider exporting our culture to the third world "the future" of our economy. Isn't the west in general already receiving flak for this?

    The argument that we should not only slam down the argument that each consumption of media, of culture, should be by-permission, will only stifle our culture (and one would presume our economy). To suggest we also go abroad and do the same is a little imperial as well...

    Why not worry more about educating our citizens? Let our intellectual exports be exemplary brains!
  12. Some Guy from Canada writes: Then vote the bums out of office. It's not difficult to see them for what they are, regardless of party affiliation. When the politicians forget to serve the people instead of corporate 'persons', they do not deserve our support.

    There is a much bigger issue at stake: how much freedom of expression are we willing to limit in order to respect intellectual property? This is not a matter of theft, it is about how we can or cannot use new media to exercise our freedom of speech. DMCA-like legislation stifles speech in that sense and threatens democracy. Don't ever let them silence you.
  13. Aidan Crawford from Toronto, writes: In the end it's a fallacy to think a "knowledge-based economy" will save the rusting hulks of the industrial revolution.

    Technology has made it so it will aways be cheaper (and increasingly easier) to outsource the work to somebody overseas.

    Whether it's a call center or a major website, the biggest obstacle today is a time zone.

    Open source technologies will soon make all the talk of intellectual property - with software - meaningless. And viral distribution of independent music, will create a situation where the big multinational distributors become purveyors of niche products only.
  14. Darrin Duell from Landmark, Canada writes: Ralph Nader?!! Haven't you heard of Ron Paul? The Government has too much power both here and in the U.S. That power has been usurped by lobbyists, who carve up our tax dollars and our markets between them for the benefit of faceless unaccountable coorperations. Tell your U.S. friends to vote for Ron Paul for president. Ron Paul is the only candidate that wants to limit governments power, so Americans don't have to bend over for corperations any longer.
  15. Mark Galli from Hamilton, writes: idiocy. I remember reading a news article a little while back, where some guy argued that music companies should simply stop fighting downloaders and change their business model. He argued that songs should be price at five cents a piece. If songs were that cheap, there would be no real incentive to download low bitrate free music from virus laeden torrent networks when you could simply buy a song for a nickel. He argued that the sheer volume of pay for download would make it profitable. It sounds good to me. The bottom line is cd's and downloads are too expensive. 99 cents for a song is a rip. 17 bucks for cd, please.
    record companies, evolve or die.
  16. Enoch Root from Canada writes: All this legislation seems like some out of control monty python skit, in that all the legistation targest citizens of the local country, stating that we need to start dealing with the intilectual property issues on a global economy field. If this was the case then the the western powers should be pressing their cases internationally and forget the local issues which are mice-nuts when compared to the scale of pirating that is going on globaly. In fact, 95% of what China makes and probably >75% of what the rest of the far east produces is based on "ripped off" designs and technlolgy that the west developed. We are living in a house of cards if the entire Western world is basing its economic long term strategies on other countries "playing nice" with our intilectual and copywright expectations... In fact as it is today, China offically does not recognize the western copywrite laws and is more than happy to reap the economic benefits that pircay of entertainment or technology development would give them. The only time China makes some token effort to go after 1 or 2 local pirates is when some Western big business is looking to set up shop - in other words they do it when the preception of clamping down on piracy will result in China getting a greater economic boot. Dont get me wrong, I dont think that western citizens should not be punished for piracy, but the real risk and opportunity is not in these countries. When it comes to keeping our econmic house in order, the west is living with blinders on.
  17. N. Harmon from Vancouver, Canada writes: The assumption is that that the invented IP that needs protection is worth something 10 years later. What corporations want to do is use criminal penalties to force new IP that borders on theirs to pay royalties. That doesn't breed innovation; it kills it.

    14 years is a reasonable protection time. After that, it should be easy to make derivative works. It shouldn't be a legal headache with possible prison time and large fines if you fail to meet some completely arbitrary standard of "uniqueness". Is it all or part of the work? Is it in the technique used? Is it the philosophy it represents that has copyright? If I make a picture of a tree and copyright it, do all similar trees in new pictures generate royalties? Of course not, but if the penalty MIGHT be jail time and fines then its much safer to pay a royalty that isn't warranted. Or, not create the work.

    Eventually when 150 (like in Mexico) years of copyright exist, who pays the search to make sure that the work you just created is truly your own?

    If you want to stop creativity then increase the length of protection for existing works. Make sure nothing enters the public domain in anyones lifetime, and make the penalties for any possible infringement into a criminal offense. The risk of entry is too powerful. Your option as an artist is to create, but never show publicly, and never make money.

    The money belongs to whoever got there first and who has the biggest lawyers and the toughest laws to prevent any sort of piracy. Oops, I meant competition.
  18. Gary Layng from Canada writes: There is only one reason to tighten up "intellectual property" laws: to transfer wealth from consumers to lawyers. All these new laws will lead to all kinds of new lawsuits, just as they have in the States.

    Stronger IP laws tend to have an inhibiting effect on innovation, as at the first sign of something "new" lawyers beat it to death. As a result, regimes with easier IP laws find themselves with more innovation, and hence a stronger economy.

    If we want to live in a third-world country, we should follow the American lead in this. If we want to avoid this fate (and if the U.S. wants to, too) then we should avoid this like the plague.
  19. Shamus M from Canada writes: Good Luck with this. Laws are meaningless when they can't be enforced. In the 'information age' information flows like water. Plug a hole and the water goes somewhere else.
  20. wawa dave from Cor-pirationville, Canada writes: This is a typeical Cor-pirate greedite law. For the Cor-pirations By the Cor-piration For them only will it help. See the cor-pirations are scraping the bottom of the barrel .And need to squeeze every last possible cent from the conned-summers. And cor-pirations get the best laws for them passed that money can buy! Think of the conned-summers as a wet rag. The cor-pirations wringing that rag till the very last drop is squeezed out. With our currant cor-pirationist government Bowing to the all mighty cor-pirated every whim we the conned-summers will be just plain cash fodder for their trodding!

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Kapica's Cyberia

Jack Kapica has been writing on technology for the past 15 years for The Globe and Mail, and has been working exclusively for the on-line Globe since 2001. In his Cyberia blog, he writes news, makes comments, looks at rumours, and offers opinions on culture and developments in technology.

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