The talk is called "How to go broke on the Internet". Almost no creative people (writers, musicians, etc.) make a living off what they love. Some artists have tried to find out how to use the Internet to make a living. Creative Commons is a license created by Lawrence Lessig. It's a system that allows artists to say that only some rights are reserved, and all other rights belong to the public. Cory put his latest book under the CC license.
Artists do not create because of rational economics. Creators desire audience rather than monetary compensation.
Today we have peer-to-peer networks and other technologies that undermine how authors make money off their works. Whether you believe the numbers of IPFI or RIAA, which you probably shouldn't, it is clear that there is something out there which threatens the way revenue is traditionally derived from the arts.
Today the industry is trying to get some of these technologies before, like radio and Betamax. Of course the media industry makes more money from pre-recorded media than from the box office. It seems that they have to be dragged to the money tree. Imagine how stupid the revenue model (with advertising) that was developed for radio would sound. Today we are presented with a variety of revenue models for art on the Internet, and we know how stupid they sound today.
In the day of Marconi, most people of course chose the wrong revenue models, and ended up not being artists anymore. Clay Shirky: There is no demand for music that is less flexible. No-one will say, "I will pay a premium for music that gives me less power." There is no market demand for proprietary formats, a little like MiniDisc and DVD.
This is why the DVD format hasn't really gotten anywhere. This is because no-one can make a DVD player without the permission of DVD Forum. Remember what happened with VHS in the early days. People starting taping births and police beating up people. Given the choice between a proprietary and a non-proprietary format, people will not choose a proprietary format.
Cory is asking someone to hold up a Nokia phone and take out the battery. It has 4 leads. One is positive, another is negative, and the others are crypto. There are $5 worth of crypto in the battery, and ¢50 of crypto in the phone to protect your conversations. Nokia spents an order of magnitude more to protect their business model than to protect your privacy.
Again and again, technology is used to harm us. Businesses will fail because of this and blame the Internet. This happens because they commit a fatal sin of capitalism, to create something that there is no market demand for.
Somehow, there is a market demand for compensation for artists. Most people agree that artists should be compensated for their work. In Europe there has not been a strong sense of fair use. You pay a levy on your blank media and you can do anything you want with that media. There is no provider of artist compensation on the Internet. Apple iTunes compensates the labels.
We're losing end-to-end, the right to build a service on the Internet without asking someone's permission. We're losing academic freedom. The University of Wyoming is building a packet sniffer that opens up every packet and look for enfringement. Imagine if Joe McCarthy had gone to Wyoming, where all the deans wear cowboy hats, and asked them to listen to every conversation and find communists.
Under the EU's IPR Directive, if you sign an affidavit that your rights are being infringed upon by another company's customer (like an ISP), to seize that company's computers for 31 days.
Can we fix this? Can we fight these threats? Cory believes that we can find a solution that we can reconcile technology with copyright. It is called a compulsory license. The idea is that you pay a compensation, a fixed fee, and in exchange you get the right to use copyrighted works. The US already has the Internet radio license. You can play any song you like, and a fixed proportion of the license fees go directly into the artist's pocket. We can fix the copyright wars with a compulsory license and some techonology. We need statistical sampling, but billions of dollars are already distributed using statistical sampling, such as the Nielsen families who record the TV that they watch.
What we should watch out for is a levy on media without compulsory license. The Swedish implementation of the EU Copyright Directive imposes a levy on blank media, but in exchange you get — nothing. You are still a criminal.
If we are careful, we can solve the copyright wars if we talk to the government, to technologists and to artists. The one way we cannot solve it is to continue to walk down the road that the recording industry wants us to walk down and to attempt to serve market demands that do not exist.