Turns Out Money Talks in Silicon Valley

For years, producers of creative content—from individual artists to mass-media corporations—have tried to engage with internet companies (mainly Google) in an effort to stop the facilitation of rampant, unlicensed access to their material. Whether the complaint is millions of unlicensed works on YouTube, or search results leading users to pirate sites, copyright owners are all-too familiar with the dual response We can’t and We shouldn’t. This is shorthand for the internet industry’s standard claim that they can’t effectively police their platforms; and even if they could, they shouldn’t because freedom.

But as reported in January 2017, advertising giant Procter & Gamble issued a warning on behalf of global advertisers who spend a combined $70+ billion on digital, announcing that they were no longer willing to accept can’t and shouldn’t as answers to their key complaints. These were a lack of transparency (i.e. independent audit) in measuring the quality and effectiveness of digital advertising; and an inability to prevent brands from supporting intolerable content. So, terrorist recruiting videos on YouTube brought to you by Colgate just isn’t working for the brand managers anymore.  Yet, strangely, the internet companies and their bevy of think-tankers have not told these advertisers to stop hating the future and change their business models.  (Though I’d like to watch if they did.)

Fast-forward a year and the Wall Street Journal this week reports that Unilever is threatening to substantially reduce its ad buy on Facebook and YouTube if the companies do not more effectively weed out fake news and other divisive content like racism, sexism, and violence. What’s striking about this article is its concluding follow-up report that P&G’s brand officer Mark Pritchard — it was he in 2017, who charged the internet platforms to clean up their act — notes that “progress has been impressive” and that ninety-percent of his demands have been met.

It will come as no surprise to the creative community that, when revenue is at stake, the major internet companies suddenly discover that it is both technically possible and ideologically conceivable to police their platforms a bit more aggressively than they have to date. Artists and creators should follow these developments because the political, social, and financial pressure being exerted on the platform providers can make the companies more vulnerable to potential liability for infringing creative works; and this might make them a bit more cooperative about solving the “unsolvable” issue of mass infringement. By demonstrating a capacity for control (because now they have to), this underscores what should be obvious to most people — that the tradition of shrugging off the interests of rights holders has been a business decision. Period.

No doubt, many “digital rights” activists will prophesy the end of days for democracy in response to this trend toward platform responsibility; but they can take heart knowing that democracy hasn’t exactly thrived under the principles applied thus far. The assumption that all online interactions are protected speech, and that more speech is the only antidote to harmful speech, is still proving to be a destructive fallacy every second of every day. And it turns out the advertisers, whose money pays for these platforms of democracy, don’t accept that the answer to hate-speech and fake news is to just let it ride until our better angels eventually prevail. It turns out this is both bad for society and bad for business. It turns out money talks in Silicon Valley. And if that’s the only way to get internet companies to behave like citizens instead of bullies, then whatever works.

Can “Charging Bull” Artist Have “Fearless Girl” Removed?

When the story first broke about the “Fearless Girl” statue, I didn’t pay it much more attention than I had ever given to the “Charging Bull” that the girl now faces in her defiant, wind-blown pose.  I always assumed the bull simply represents the financial industry the same way I assume “The Garment Worker” statue on Seventh Avenue represents the fashion industry.  Then, when “Fearless Girl” arrived, I figured somebody was making a dual statement—one about women in business, the other about voracious capitalism—and my reaction was somewhere between ambivalence and supportive amusement. I liked the spirit of “Fearless Girl” on first impression but had little interest in all the discussion about it.

Of course, one of the most intriguing aspects of art—and perhaps this is even more pronounced with public art—is that context changes everything.  Appropriation art is usually meaningless without context, and there is an extent to which “Fearless Girl” is an appropriation. Credit for making me think about this goes to author/photographer Greg Fallis, who wrote a blog post after getting some social-media flack for saying that “Charging Bull” sculptor Arturo DiModica “has a point” in requesting that “Fearless Girl” be removed from its installation.

This is of course the outer layer of context:  once a work is in the public eye and has been imbued with a particular significance (in this case feminism tinged with anti-corporatism), then any complaint or comment about the work is apt to be distorted by that lens. And woe to the critic as a result.  Mayor DeBlasio’s office, in response to DiModica’s request to remove the new statue, tweeted “Men who don’t like women taking up space are exactly why we need the Fearless Girl.” On this point, I agree with Fallis that the Mayor’s statement is both true and perhaps entirely beside the point with regard to the nature of DiModica’s complaint.  You may not be surprised that it has something to do with copyright. (And spoiler alert:  I don’t think he has a case.)

I didn’t know until reading Fallis’s blog that Arturo DiModica owns “Charging Bull” and that he produced and initially installed the work at his own expense of roughly $350,000.  An Italian immigrant, inspired by the kind of patriotism unique to immigrants, DiModica began working on the bull in response to the malaise that followed a major financial markets crash in 1986.

The bronze, three-and-a-half-ton work took more than two years to produce; and in the early morning of December 15, 1989, DiModica and his friends “dropped” the bull on Broad Street in front of the New York Stock Exchange—a gift to the city that was, as Fallis eloquently writes, “…maybe the only significant work of guerrilla capitalist art in existence.” The NYSE did not appreciate the gift and had the bull removed; but citizens, the Parks Commissioner, Mayor Koch, and the Bowling Green Association worked to place the “Charging Bull” where it has stood ever since, at the northern end of Bowling Green.

For DiModica, “Charging Bull” was not so much a statement about the swaggering bronze balls of capitalism but was meant, according to the artist’s website, as a “gift of encouragement to New York and the world.”  As symbols go, one might consider that the southern tip of Manhattan—originally colonized by the Dutch—is the birthplace of America’s more entrepreneurial, culturally diverse, and free-spirited nature.  So, the bull charging northward out of this part of the city can certainly be considered in a broader context, but let’s face it:  an eighteen-foot bronze bull standing in the heart of the Financial District can no more escape its capitalist connotations than it can run to the Upper West Side to shop at Zabar’s.

Enter “Fearless Girl,” which was made under very different circumstances.  In short, she is an advertisement for a socially-conscious investment product called SHE, offered by State Street Global Advisors with over $2.4 trillion in assets under management.  The girl standing up to the bull was commissioned by this Wall Street firm, conceived by advertising giant McCann, and purposely “dropped” in front of the bull the night before International Women’s Day.  So, it’s guerrilla art-ish—if corporate backing, ad-agency planning, and city permits count as guerrilla.

What Are DiModica’s Rights?

The commercial nature of “Fearless Girl” may or may not sully her relevance in the eyes of the public, but it is central to DiModica’s complaint and desire to have her removed.  Placed in defiance of the bull, DiModica contends, that the girl changes the meaning and intent of his work from something positive to something negative. In this regard, “Fearless Girl” is appropriating “Charging Bull” by changing the context of the original work; but because this appropriation has been done to promote a product sold by SSGA, attorneys for DiModica are considering whether or not to file suit under a law known as the Visual Artists Rights Act (VARA).

Passed in 1990, the VARA is part of the Copyright Act, §106(A), and it primarily concerns the right of an artist to protect his/her reputation by preventing the misuse of his/her name.  Rights pertaining to reputation of the artist rather than those solely focused on the works are referred to as “moral rights,” and they are a particular subset of intellectual property.   The part of the VARA statute that would theoretically pertain to DiModica’s complaint would be the artist’s right to the following:

(A) to prevent any intentional distortion, mutilation, or other modification of that work which would be prejudicial to his or her honor or reputation, and any intentional distortion, mutilation, or modification of that work is a violation of that right.

According an article by Isaac Kaplan about this possible legal case, attorneys for DiModica will look at both the commercial aspect of “Fearless Girl” and at the fact that the city apparently allowed for an extension of the cobblestone foundation to accommodate the new statue.

If the cobblestone base can be considered part of the original work, this would potentially implicate the VARA statute prohibiting “modification,” but that modification has to be “prejudicial to [the artist’s] honor or reputation,” which sounds unlikely to prevail to this layman’s ear.  Moreover, the original circumstances pertaining to the installation of “Charging Bull” in 1989 appear to indicate that only the bull itself belongs to DiModica but not any vision of placing it on a cobblestone base at the tip of Bowling Green.

I suspect the commercial nature of “Fearless Girl” would also be unlikely to persuade a court that the work infringes DiModica’s rights under VARA, though this argument certainly gets into an area that could theoretically harm an artist’s reputation.  In this case, DiModica’s attorneys would presumably have to demonstrate that the appropriation negatively alters the original “meaning” of the work to the extent that it reflects negatively on the artist himself.

On the one hand, it seems like a difficult argument to make that VARA can protect any artist’s originally-intended meaning in any work; and this seems especially tricky with “Charging Bull.” Once a work is placed into public view, the artist no longer gets to decide how it is perceived; and as indicated above, I think any reasonable person who first encounters “Charging Bull” will make the same assumption I always have—that it is very much a celebration of unbridled capitalism.

If this were not the case, “Fearless Girl” would probably never have been conceived as either “pure” art or advertisement.  SSGA, artist Kristen Visbal, and McCann are all clearly relying on a general interpretation of “Charging Bull” as a symbol of aggressive capitalism in order to provide a context for “Fearless Girl” to be saying anything at all. And it seems clear from public response that this is the context in which “Fearless Girl” has been interpreted.

On the other hand, DiModica’s reputation is linked to how people perceive “Charging Bull,” and it would be tough to argue that “Fearless Girl” is not at least a bit of a fuck-you as well as an ad for a corporation But, commercial or not, is the work truly a gesture at the meaning DiModica originally intended, or is it a gesture contemporaneous with evolving feelings about capitalism and the role of women in the market?  I would argue that it’s the latter and that any artist who puts a sculpture into a public space cannot hope to control how that sculpture may be viewed against the backdrop of history.

Still, if another corporation were to make a more outlandish alteration of the bull for commercial purposes—like a steakhouse chain paints the classic cuts of meat outlines on the bull’s bronze skin and photographs it—that would certainly seem to be actionable under both traditional copyright infringement and VARA statutes. Not to mention city ordinances prohibiting vandalism.

As Fallis points out, DiModica could take his bull and go home; it is his physical property as well as his intellectual property.  This would leave “Fearless Girl” standing up to the southern tip of Manhattan for no apparent reason, although the fun part of that hypothetical scenario is that viewers would begin to apply new and various meanings to the work as a stand-alone piece.  So, in this regard, “Fearless Girl” is not purely a work of appropriation.

For all the fuss, there is at least a whiff of (yep) bullshit about the fact that “Fearless Girl” is defiantly marketing a product for a giant investment firm. Of course, advertising can be art and vice versa, especially in America; and one could make an argument that, for better or worse, this blend of culture and commerce is part of the same spirit DiModica was tapping into with “Charging Bull.” I can certainly sympathize with the artist’s feelings even while I am dubious about his legal standing under VARA.  Moreover, it turns out that I had a lot to say about a story that didn’t initially grab my attention.  Context changes everything.

Advertisers Demand the Web Get Better in 2017

Photo by sorsillo

In January, Proctor & Gamble’s Chief Brand Officer Marc Pritchard put the digital advertising world on notice that his company will no longer tolerate the waste or opaqueness of the advertising ecosystem. “We’ve been giving a pass to the new media in the spirit of learning,” Pritchard stated in his keynote address to the International Advertising Bureau (IAB).  “We’ve come to our senses. We realize there is no sustainable advantage in a complicated, nontransparent, inefficient and fraudulent media supply chain.”  With over $7 billion in online spending, P&G is the largest among U.S. advertisers; and where they lead, the rest of the industry is likely to follow.

I wrote in December 2015 about a report published by the IAB, which revealed that significant flaws in the digital advertising supply chain—invalid traffic, infringed content, and malware—were costing advertisers just over $8 billion/year in waste. That represented about 16% of global, digital ad purchases.  Although ad spending has continued to grow since that report was written, if Pritchard’s address represents the mood of advertisers, they’re frustrated with two things above all:  the inability to control where their ads appear, and the lack of consistency and transparency in reporting by the major platforms.

In response, Pritchard has laid out the new demands P&G will be making of its advertising partners for 2017, including third-party measurement of metrics (rather than self-reporting by the platforms) and an insistence that all partners become TAG-certified.  It was in February of 2015 that the Trustworthy Accountability Group (TAG) launched this industry-led, voluntary initiative to separate the quality, legal sites from the garbage of the internet. TAG was seen by copyright holders as a major step forward because the initiative sought, among other things, to keep brand advertising off the large-scale piracy sites.

The Ad Exchange is Too Opaque

The underlying problem for advertisers is the automated exchange in which ad impressions are purchased from the available supply—a system that provides advertisers with limited control over where their ads appear and no standardized reporting on the return received for their investments.  An advertiser buys, say, a million impressions, and when those impressions are reached, the advertiser buys another million impressions; but there is very little insight into the nature of those impressions.  It’s a process Prichard calls “murky at best and fraudulent at worst.”

The recent “discovery” of Fake News illustrates the problem.  Appropriately used, the term fake news refers to hucksters who figured out that they can make up to several thousand dollars a month just by inventing provocative, click-bait headlines that draw traffic to sites that have nothing to do with actual news.  These site owners do considerable harm to the world while siphoning value from advertisers who would not otherwise choose to feature their brands among this kind of junk content.

Recently, the News Media Association (NMA) of the UK asked the British government to investigate the impact that Google and Facebook are having on legitimate news by supporting fake news with their “murky” advertising platforms; and the NMA also cites what appears to be a growing problem of ads supporting terrorist propaganda. As I’ve reported in the past, the lack of control in these ad exchanges is why major brand commercials end up on sites like YouTube alongside ISIS recruiting videos or other violent-extremist propaganda.

Brooke Singman for Fox News, notes that year’s Hyundai Super Bowl spot, which pays tribute to U.S. troops serving overseas—and which cost Hyundai about $5 million to run on TV—appeared on one of YouTube’s terror-linked channels. And while YouTube’s official statements express a zero-tolerance policy for terror-supporting accounts and videos, the problem persists while parent company Google remains typically unclear about its ability to remove targeted content or accounts.

With over 300 videos uploaded to YouTube every minute, I don’t think anyone doubts the scope of the challenge; but it is certainly true that the copyright holders, for instance, often see Google as magically omniscient where its own interests are at stake and then mortally fallible in the service of others’ interests. So, I imagine if P&G and other advertisers are truly drawing lines in the sand this year, Google may suddenly discover an extraordinary capacity to weed out terrorist, criminal, and other undesirable content from the YouTube platform.

In fact, Eric Feinberg, CEO of GIPEC says that he can very quickly identify and organize questionable content on major platforms with the system his company has developed for scanning hashtags in multiple languages. “Because our technology can anticipate key communications strands and images being used by terrorist and hate-speech groups, the system can block, quarantine, and sandbox this kind of content for review before it’s published, thus reducing the chance that ads will appear before or next to undesirable content.”

Where this issue overlaps with security, it is possible that the major social media platforms will begin to feel more pressure from the government to stop profiting—however inadvertently—from terrorist propaganda on their sites.  Depending on what form that takes, we are likely to see some civil-libertarian backlash to these policies and also to expect reality to get lost in the rhetoric on all sides.  But for sure money talks. And if the advertisers are demanding that “new media” start to clean house and provide some of the accountability and quality they’re used to from “old media,” my guess is they’re going to get what they want or find other ways to spend their $200 billion.