There’s no such thing as used digital media.

It’s science.  Deal with it.

We hear an awful lot about how copyrights on creative works “stifle innovation,” preventing new business opportunities from launching or thriving. And the self-serving advocates of these “new” ideas love to describe those of us who question their proposals as anti-technology, anti-progress, stuck in old models, and so on.  But the idea that a digital file of a song, a movie, a book, etc. can ever be called “used” is nothing more than an attempt to transplant a very old model into the soil of a new, technological market.  So, who’s being anachronistic here?

On purely technical grounds, there is literally no such thing as used digital media because “use” does not in anyway degrade a file.  A digital file of a song or a movie plays as pristinely the millionth time it’s played as it does the first time it’s played.  If you worked in video post-production in the days of early digital tape media, you would have seen a new term affixed on the spines of those tapes — clone.  Because that’s what a digital “copy” actually is; it is an exact replica with no generation loss from the original source.

So, if you transfer a file of a song or a movie to someone else, it will not in any sense be “used” simply because you experienced it before someone else did.  The new “owner” of that file will have a brand new experience, the value of which is identical to the original “owner’s” purchase price of the file from the original distributor.  If we’re talking about a movie, for instance, the only thing that differentiates Viewer A from Viewer B is that the former has seen the film and the latter has not.  Yet, the logical argument being made by certain “new model” entrepreneurs is that Viewer B should be entitled to pay less for the identical experience simply because Viewer A has already paid the original price one time.  This is patently absurd. By the same logic, the ticket price for a movie in a theater ought to decrease incrementally after each screening because the film has been “used” by other viewers. (Yeah, somebody in the copyleft crowd just thought, “Hey, that’s a good idea!”)

This notion of “used” digital media is just one way in which technological opportunists can be disingenuous when it comes offering up what sound like market-based theories.  They want the luxury of cherry picking from both the past and the present as suits their purposes.  In reality, though, these ideas don’t come from particularly innovative technologists, but rather from standard-issue middlemen looking to exploit a consumer-serving limitation on copyrights to siphon value from creators and line their own pockets.  In the long run, though, transporting this doctrine into the digital market, which makes no rational sense, would likely drive prices up in what I’ll call first-user experiences in order to offset lost revenue.

Naturally, when a work is distributed on physical media, the notion of “used” remains intact.  First sale doctrine in copyright law says that I can buy a novel and then sell the book as used at my next yard sale, regardless of whether or not I read it to a dogeared pulp or kept it in pristine condition and never cracked it open.  The condition of the book may affect the second-market value in my yard sale, but it has no bearing on my right to sell or otherwise distribute the used copy one time.  Because this transaction involves a physical object, replicating the process even in tens of thousands of yard sales all over the country would never produce a secondary market for novels that clones the primary market and inherently reduces the value of all novels everywhere.

But this is exactly what would happen in an all-digital “used” market in which a middle-man like Amazon, Apple, or Redigi removes a previously purchased file from Consumer A’s computer, sells it to Consumer B for a lower price than the original, and profits from the transaction while kicking a little something back to Consumer A.  Never mind how easy it would be for the selling consumer to cheat that system by storing files any number of ways, the so-called “secondary” market would very rapidly become the primary (i.e. only) market, and therefore just another means by which tech-happy leaches artificially drive the value of creative works below sustainable levels while pocketing millions before the producing entities collapse.  (Anyone who just thought “Good, I can’t wait until the movie studios, record labels, and publishers collapse,” should understand that it will be the independent, small and mid-sized producers who will fail first.)

I find it hard to believe that any legislator or court would be bamboozled by the parlor trick in which a file is moved from one consumer to another through the resale transaction without making a “new copy.” This is an analysis of the state of the technology and its role in the market viewed through a pre-digital lens, semantically bogged down in irrelevant terms like “copy” while ignoring how the technology actually works and what its potential market impact can be for good or bad.  So, if we’re really talking about developing new business models that correspond with new technology, then the language we employ might have to be new as well.  And in the digital world, the word used has outlived its usefulness.

Playing Pirate with Chiat/Day

In my follow-up about Chiat/Day and the “Pirate Square” campaign, I suggested that the agency’s decision to produce the work was motivated by an opportunity to promote the Chiat/Day brand itself in a big way and for free.  And the more I look at the whole business, the more I’m convinced this is what happened.  According to this article in Billboard, John Ocean and Eric Mendelsohn of Ghost Beach were offered the valuable Times Square space by landlord American Eagle Outfitters as at least partial payment for use of one of the band’s songs in an AEO commercial.  The duo states that addressing piracy was their idea and that they took the whole thing to TBWAChiat/Day, who developed the campaign for free.  I think the tactical decision was that the agency would naturally do the work pro bono because no matter what happens for Ghost Beach or American Eagle Outfitters, the entire campaign promotes Chiat/Day, including any negative press, because “pirate culture” is at the core of the agency’s brand.  The source of this cultural identity is attributed to an aphorism by Jay Chiat, supposedly said shortly after the 1968 founding that, “Its better to be the pirate than the Navy.”  It occurred to me, though, that the contemporary agency’s claim that the proverbial pirate flag has been flying ever since Chiat uttered these words in the late ‘60s might be what we call truth in advertising.

Neither my own father nor his colleagues, who were with either Chiat or Day before the merger, has any recollection of a pirate motif; and there is no mention of the theme in the book Chiat/Day: The First 20 Years.  Stevan Alburty, who began working at the agency in 1977 and worked in the New York office until 1994, says he believes the pirate branding came about sometime in the 1990s after he left, which seems about right with regard to pop culture and the dawn of the digital age.  Alburty also hosts a blog called Jay/Day, which is frequented by former employees of the agency, so you’d think someone might remember what the agency calls its mantra, if it were indeed a mantra dating back to the early days of the business.  And here’s the kicker:  an anonymous but reliable source traceable through my personal, family connections to this particular agency says that the quote about being the pirate comes from Steve Jobs and that the entire pirate ethos, including the flag, originates from within the C/D creative team that worked on the Apple account. In fact, a quick search for quotes does attribute to Steve Jobs the words “It’s better to be a pirate than join the Navy.” And I think we all know what Jobs meant when we look at Apple design relative to the rest of the computer industry.

So, why bring this up at all?  Why out Chiat/Day on this relatively harmless bit of revisionist history?  I’m not interested in petty gotchas, and as I said in the previous post, the pirate theme is a perfectly good choice for branding a long tradition of pushing creative boundaries and producing some brilliant work.  So what if the story takes a little license with the truth?  And what has it got to do with Times Square and the flap over the ArtistsvsArtists campaign?

Just this:

It’s okay to want to do what all the cool kids are doing, and Chiat/Day has plenty of street cred when it comes to advertising cool; but it can be a dangerous business when the cool kid starts to believe his own bullshit and takes his act too seriously.  As attractive as this opportunity must have been, its execution implies that the leadership at TBWAChiat/Day New York either don’t get that piracy of creative works is a serious and complex business, or they don’t care.  It makes me think of a story in which a guy dressed as a raffish pirate for a costume party gets knocked on the head and wakes up at the right hand of Edward Teach (Blackbeard) on the day the real-life pirate is threatening to hang men, women, and children unless their native township paid a ransom for their lives. Yeah, it’s a very Brady plot, but you get the idea about the contrast between myth and history, right? It’s okay to play pirate as long as you remember what is and is not a game.

Treating online piracy as a progressive business model emphasizes unfounded, techno-utipian ideas over the hard-won history of individual, creative achievement.  I and others believe the endgame can be a lasting, damaging effect on a system that has given creative people autonomous power to author great works, including the ground-breaking advertising of Chiat/Day, who is a beneficiary of this system in so many ways.  This whole  “Pirate Square” story is rife with irony, including the quote boosted from Jobs and attributed to Chiat that seeds a brand message, which leads to this Orwellian campaign brought to you by the same agency that once produced the award-winning TV spot for Apple in 1984 based on 1984.  But I think the real irony is this:  by choosing to play pirate with live ammo on the high-tech seas, the frigate Chiat/Day enabled this humble sailor to come broadside to its entire brand identity and blow a pretty big hole through its hull.

ADDENDUM:  With regard to motives and understanding who benefits, it’s worth noting that according to data published on The Trichordist, the band Ghost Beach did not appear to get much out of this deal.  This is consistent with what many of us see as the difference between vague promises of the digital age and tangible results that put food on the table.