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Common Grounds: Coffee Houses & Copyright Review

coffee sepiaI am presently ensconced in what I expect will become my new morning writing venue — a local coffee house/bakery located just a few miles from my alma mater, Bard College.  Like other establishments of its kind, especially those in proximity to very liberal, liberal-arts colleges, this place is steeped in the atmosphere of social consciousness. All the coffee is fair-trade, as is the chocolate used in the baked goods and confectionaries made on site. Posters adorn the walls advertising the fair-trade collective supported, depicting photos of Latin American and African workers enjoying the fruits of their labor rather than suffering the deprivations of many who harvest or produce the goods we consume.

It’s August now, but the Bard students will be here soon, gathering in ebullient clumps to study and socialize; and regardless of their majors or career goals, anecdotal evidence suggests that their sense of social justice will be an even more prominent component of their life plans than those of my friends and mine when we were here as students.  In the 1980s, we were mostly hoping Ronald Reagan wouldn’t start WWIII with nuclear weapons, but today’s digitally connected generation appears anyway to be more instinctively aware of their role as global citizens — that choices made in pampered, western life can directly affect the well being or suffering of individuals halfway around the world.  Of course, even this kind of consciousness only goes so far as it is nearly impossible to live in the developed world without inadvertently benefitting from exploitation in the developing world (see your iPhone), but at least the trend toward thinking globally and acting locally is common in the next generation, and I think it’s fair to credit social media as a catalyst in this case.

My new morning haunt is also a venue for local musicians to perform; and near the entrance is a sign reading, “Play what the people like.  We own every license there is!”  Below this, the BMI, ASCAP, and SESAC logos are displayed.  The sign isn’t very prominent, many people won’t even notice it no matter how many times they walk through the door; but it would not be out of place if it were hung next to the posters of thriving coffee, tea, and cocoa harvesters.  license signI’m sure the owner of this shop was simply following the law when he bought the music licenses, but whether he knows it or not, the sign about the music is entirely consistent with the non-exploitative ethos of the business. Despite the raw tonnage of gibberish that has been promulgated on the subject of media piracy as a “new model,” there is not one idea yet proposed that is anything more than a hypocritical contradiction of the same social consciousness that wants to promote and acquire fair-trade goods. So, with regard to media consumption, the next generation has to decide whether or not they can agree that exploitation is universally wrong while recognizing that some of the “innovation” that has been brought to you by Web 2.0 is merely the acceleration and expansion of junk business.  Check your SPAM filters.

On August 1, the House Judiciary Committee held its third round of hearings in the process leading up to comprehensive review of copyright law, and the witnesses invited to testify were supposed to offer various points of view on digital-age innovation and, in theory, make a case for why the present copyright system stifles said innovation.  The witnesses were as follows:

Ms. Danae Ringleman
Founder and Chief Customer Officer
Indigogo, Inc.

Mr. Jm Fruchterman
President and CEO
Benetech, Inc.

Mr. Nathan Seidle
CEO
SparkFun Electronics, Inc.

Mr. Rakesh Agrawal
Founder and CEO
SnapStream Media

Mr. Van Lindberg
Vice President of Intellectual Property
Rackspace Hosting, Inc.

Each witness represented burgeoning, intriguing, and humanistic business ventures, but not one witness presented a single, declarative statement as to what specific mechanism(s) in the current copyright system act as barriers to innovation.  Absent such testimony, and in light of the fact that all of these individuals can boast thriving  and legal businesses, one might only conclude that copyright in general must not be the proverbial monkey wrench holding back the future that people keeping saying it is.  This might explain why several of the witnesses, when pressed with direct questions from the committee, were quick to change the subject from copyright to patent law.  In fact, by my estimate, roughly half the hearing was devoted to discussion of the patent system, and I wouldn’t be surprised if some of the committee members had to double-check the name at the top of their briefing documents to make sure they were in the right room. We’re used to seeing this in public debate — certain technology interests assailing the principle of intellectual property in general, toggling between copyrights and patents at will — but I was surprised to see it happen in a Congressional hearing and do hope copyright review will become more focused on specifics going forward.

On the other hand, we could streamline the process, if we take a lesson from my new, local coffee house.  If the next generation of socially conscious citizens in the developed world simply consumes media the way they consume coffee, tea, and chocolate, we might save ourselves hours of misdirected testimony that is sure to come.  If people choose to marginalize media piracy to an exception, we will reduce the vague and vacillating assault on IP as a general concept and open the floor to frank analysis of what does and does not work in these legal systems.  Sadly, though, reports like this one by Helienne Lindvall indicating music piracy is most prevalent among the wealthy reveal that privilege too often begets a sense of entitlement that selectively overrides social consciousness. Among the hundreds of Bard students who will soon be tromping through here, most of whom will be art majors, I do wonder how many of their smart phones will be filled with music or filmed entertainment downloaded from torrent sites. Correct this one hypocrisy, and the debate becomes so much simpler.

Steal a Little: Piracy & the Economy

I’ve wanted a sailing yacht for years but have never been able to afford one — until now.  Thanks in part to a report on piracy and counterfeiting by the GAO and this explication by CCIA (Computer & Communications Industry Association)  lobbyist Matt Schruers, I now have a plan that will put me at the helm of the sloop Larceny by the Summer of 2016.  And the best part is the whole family gets to collaborate to make it happen. According to my rough calculations, all we have to do is steal groceries like a Dickensian gang for three full years, and we’ll save enough for a substantial down payment on the boat.  I’m thinking Beneteau 45ft, but if any seasoned mariner out there has a recommendation, let me know.

Now, you might think shoplifting food is a bit radical as an alternative financing option, but that’s where you’re wrong.  See, if the cops nab me or one of my kids while boosting a chicken from the local farm stand (we’d steal organic of course), all I have to do is point to this GAO report, which according to Mr. Schruers, advocates a truly progressive economic principle most of us have never considered.  If you want more things than you can afford, steal some and pay for the rest. Why is that okay? Because in the economy overall, it’ll be a wash. To quote Mr. Schruers:

“So what is The Issue of Which One May Not Speak?  The fact that money not spent on pirated content is, in many cases, still spent.

The U.S. Government Accountability Office pointed this out in a widely discussed report in 2010, observing that “effects of piracy within the United States are mainly redistributions within the economy for other purposes and that they should not be considered as a loss to the overall economy.”  Money does not “just vanish.”  A Swiss Government commission made a similar observation the following year.”

Go back and read that again. Because full-grown adults are saying without a hint of irony that if you don’t spend the money in your pocket, it doesn’t just disappear but will remain there until you spend it on something else! The concept is quite a mind-blower when you come to recognize its elegance. The money you have is the money you have. It’s zen-like.  I am sorry to report, though, that the money spent to reveal this discovery is in fact gone forever.

Of course, in my scheme, when I do get pinched for shoplifting my way toward boating bliss, I have to hope the prosecutor only reads Matt Schruers’s post and not the GAO report because the report itself mostly says piracy and counterfeiting are likely very harmful to the economy in several ways.  In fact, the report devotes a lot of ink detailing the inconclusiveness of many studies that look either positively or negatively at the effects of piracy and counterfeiting, but if we’re just pulling quotes at will, how about this one:

“For example, when pirated movies are sold, it damages not only the motion picture industry, but all other industries linked to those sales.”

 That’s just common sense, and it seems to me the only point worth making if one is going to assess the macroeconomic pros and cons of actually stealing from any industry.  While it’s true that not paying for selected goods and services  will undoubtedly leave you with more disposable income to spend on other things, the industry you’re not paying for will eventually shed jobs.  And if those jobs were held by people in your community, they will no longer be customers for whatever it is you’re selling.  See how that works?  It’s the same economics we learned in high school because it’s pretty damn basic. Perhaps Matt Schruers skipped class that day to hone whatever budding skills would produce this paragraph:

“Normatively bad isn’t the same as an economically bad, however.  Not all normative transgressions necessarily have macroeconomic consequences.  And yet those two items are invariably linked when studies consider infringement.  Infringement is bad, therefore we must assign an economic cost to its badness.  Hence, study after study makes the repeatedly discredited assumption that every infringement is a lost sale, usually calculated at the highest retail price for which the good was offered, and every lost sale represents a commensurate economic loss.”

Strip away words like normative that make the above sound smart and thoughtful, and it’s really just proposing a thesis — that infringement might be a form of theft that doesn’t cause macroeconomic harm — for which Schruers can offer no support.  In fact, were he to refer to the same GAO report, he would find quite a few assumptions of macroeconomic harm from piracy and counterfeiting.  Instead, Schruers segues to the repetitious, obvious, and irrelevant observation that not every individual infringement represents a lost sale.  One doesn’t need a study to draw this narrowly-focused conclusion, and the lost sale analysis is not an indicator of macroeconomic loss. Also, if we’re just going to repeat the words the average 14-year-old will use to justify torrenting music and movies, it’s a safe bet we’re not riding the wave of avant-garde economic theory.

One of my colleagues in the artists’ rights community asked if I were going to sail my new, ill-gotten yacht to Neverland, and the joke resonated more than I think he intended.    Each time I encounter some new attempt to construct a logical or economic argument for the supposed benefits of mass theft of intellectual property, it feels very much like a visit to Mr. Barrie’s  imaginary island — a place where boys refuse to grow up, where they feast on food that isn’t there, and all they really long for is someone who can tell a good story.

See Chris Castle’s “Stealing is Good for You…”

Summer Daze by the Music Stream

Photo by Ardevins
Photo by Ardevins

As we approach the dog days of summer, the blogosphere is heating up on matters pertaining to music and the stream in which it now swims.  Practically on the heels of Pink Floyd’s public warning to artists against falling for Pandora’s recent attempts to lower licensing fees, Thom Yorke of bands Radiohead and Atoms for Peace pulled his music from Spotify in an act of what he calls solidarity, saying, “Make no mistake new artists you discover on Spotify will not get paid. Meanwhile, shareholders will shortly being rolling in it.”  And indeed, Spotify CEO Daniel Ek was just named to the Sunday Times’ Rich List with his estimated fortune of $307 million. Meanwhile, artists’ rights blog The Trichordist, primarily edited by David Lowery, reminds us that the ever-present option of piracy remains a relevant factor in the bargaining positions of both sides trying to conduct legal trade.

Personally, I think there is still hope for an equitable solution to streaming services that pay fair rates to artists.  There’s nothing wrong with the technologies or the concept, only the present business models; and it doesn’t really matter if Pandora and Spotify fail. Someone will come up with the right formula, or at least one with which all parties can feel relatively satisfied. What caught my attention this week, though, was a pair of articles that ostensibly have nothing to do with one another, but side-by-side, expose an interesting dichotomy in the value placed on music streaming and social media.

The first article was this most recent post from music industry writer Bob Lefsetz in which he blasts Thom Yorke and producer Nigel Godrich for removing their music from “a platform that hasn’t gotten any traction anyway,” accusing them of “wanting to jet us back to the past” because “streaming won,” and the kids just listen on YouTube and other unlicensed platforms.  In all fairness, Lefsetz is dragging out a Straw Man that is pretty stale itself — the overused accusation that musicians are  lazily clinging to old models and delivery platforms.  This isn’t true in general, and it certainly isn’t true with regard to anything Yorke and Godrich have said about Spotify, as their criticisms are entirely about revenue sharing and not about whether or not streaming should exist. But having grounded his thesis in the matter of new vs old, Lefsetz gets to then recycle many oft-repeated proclamations about progress and the typically unspecific theme that the future is for winners who do great work and adapt to the changing landscape, whatever that quite means.  “The truth is,” writes Lefsetz, “if you’re a superstar, there’s still plenty of money in music. And superstars are the future, because no one’s got time for any [sic] less. Just like there’s one iTunes Store, one Amazon and one Google, we don’t need a plethora of me-too acts, we just need excellence.”

And that’s right where I smacked hard into article number two written by Mat Honan for Wired.  It turns out July 15th marked the one-year anniversary of the record-setting “Gagnam Style,” the first viral video ever to cross the one-billion click mark, which is cool; but in his ebullient article, Honan asserts that  thanks to “Gagnam Style,” “music is forever different.” He cites the nature, causes, and results of the K-Pop star Psy’s explosion into global, namely American, culture thanks mostly to the power of populist, rather than corporate, decision-making.  Let me say that I have nothing against Psy or his viral video, and I’m glad to see any entertainer enjoy success if he/she makes people happy; but if Honan thinks this is truly revolutionary, I’m going to guess he’s too young to remember The Hustle, The Electric Slide, The Macarena, The Achy-Breaky…shall I go on?

It’s important to distinguish between a revolutionary cultural phenomenon and the technological means by which a classic phenomenon merely scales in a new way.  For nearly as long as there has been recorded music, we’ve seen these out-of-nowhere, fad hits accompanied by some goofy dance that gets even goofier when we get Aunt Betty to give it a go after a few highballs at the family reunion.  What’s different, of course, is that YouTube enables an exponentially rapid diffusion of something like “Gangnam Style,” and it is also the same platform that enables parodies, derivatives, and, yes, even videos of someone’s Aunt Betty gyrating away after a few highballs.  It’s all good fun, and I’m the last guy to suggest anyone should get out of the pool, but “change music forever?”  Please let’s hope not.

If we read Leftsetz’s implication that the digital age inherently demands “excellence” along with Honan’s claim that “Gagnam Style” is transformative, it raises the question as to whether or not only one of these premises can be correct, and which one?  In every medium and through every distribution method, the stuff we call art — and I would argue that only art earns the superlative excellence — usually struggles for popular attention in contrast to the more transient and facile media we typically call pop culture.  Web platforms like YouTube don’t necessarily change these dynamics or redraw the lines between art and pop culture so much as they accelerate and more widely diffuse behaviors that have been part of human activity since long before the first node of the internet was built.  If anything, the high-volume consumption that internet platforms tend to foster does seem to result in more tangential and fleeting relationships with all media. If this is true, this means that the “excellence” to which Leftsetz refers can be as likely diluted by these platforms as they can be theoretically supported. In other words, an occasional “Gagnam Style” is just fine as long as we don’t destroy the market that will  produce the next Radiohead or Pink Floyd. Because they ain’t the same thing.

As with just about anything that’s carefully crafted — from a fine wine to a gourmet meal to art that truly confronts its audience — the attention demanded for appreciation is exactly the opposite kind of investment one makes by watching “Gagnam Style” on YouTube. Art’s job, in contrast to pop culture, is to be a little bit difficult, and it requires an investment by both the creator and the audience in order for it to become something truly significant. So, if we want to build a future that does enable artists to invest over a lifetime in striving for excellence, I think it’s a foolish mistake to dismiss the warnings of these music veterans as though they are nothing more than the dusty ravings of has-beens.