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The author, and the content industry in general, are misunderstanding basic economics:

Just because there is a cost to produce something does not mean that it has market value.

pg was right in pointing out that the content industry is built on the economics of scarcity, and that this scarcity no longer exists. You could charge someone to see a movie in a theatre when doing so was the only way to see the movie. You could charge for an album when doing so was the only way to hear music on your terms.

That is no longer the case. Scarcity, as far as arrangements of bits is concerned, is over. Period. You can complain about it, you can legislate about it, you can gnash your teeth and prostrate yourself and offer blood sacrifices to your preferred god, but nothing will change this basic fact. If the content industry wishes to persist in this new reality, it will have to adapt to it. That means a business model that is not based on the economics of scarcity.

That does not mean, as the author seems to believe and the content industry threatens, that there will be no money to pay for new content. It means the economic model will have to shift away from one of necessity, to one of value-add.

There is no shortage of cleaning labour. Anyone can pick up a feather duster and go to town. Yet, we have professional cleaners. Why? Because there is an opportunity cost to cleaning. An hour you spend cleaning is an hour that you can't spend doing something else. Too, there is value-add. Perhaps the professional cleans better than you do. Perhaps they clean faster, or clean when you're not home. There is convenience and status involved in having someone clean for you.

All of this adds value to cleaning labour, making it so people can charge for it. Similarly, the content industry can focus on modes of distribution which add value to the content, which is not scarce. The content industry currently pretends it is in the mining business, with large upfront costs to extract a valuable and rare resource then bring it to market. It isn't. It's in the bottled water business. Water's everywhere, and it's free. Yet people buy it bottled. They pay for the convenience, and perhaps they pay for the perceived quality as well.

Just as the water bottlers cannot stop people from getting water for free, so too can the content industry not stop free content. They can only offer it in a better, more convenient form.

Amazon does this incredibly well. I used to download ebook torrents, and read them on my laptop. It sucked, and I stopped. Then I got my Kindle, and started again. It still sucked. The formatting was wrong, it was inconvenient, and the metadata was filled with crap from the rippers that meant it would never sort properly. So I bought an ebook from Amazon.

It was amazing. I got the book I wanted, instantly, in a fantastic format, for cheap. It was a better service than bittorrent, and I paid for it. Gladly. Now, I get all my ebooks this way and I wouldn't think of going back. Certainly, the publishers are pissed at Amazon, but that's because Amazon is rendering them obsolete. So too are studios pissed at Netflix. What they fail to grasp is that Netflix is not the problem, they're just a company that adapted where the studios have not.

There's no going back. The content industry can stamp its feet and huff and puff and sulk all they want, but the genie's out of the bottle.

Time to adapt or die.



And you're misunderstanding economics too. Just because you can get it for free that does not mean there is no market for people paying for it.

> Just because there is a cost to produce something does not mean that it has market value.

What shows market value is the desire for that product. The only reason that music is pirated now (when it used to be purchased) is because it's easy and without consequence. Let's say hypothetically in the future stealing a car becomes easy and without consequence (even though it's still illegal) does that mean there is no market value for cars? Of course it doesn't. It shows that people care more about saving money

If pirating music was impossible many people would return to paying for music, the only reason they don't now is because stealing it is consequence free.

The convenience argument is also (for want of a better phrase) complete and utter bullshit. I can switch to itunes right now, type in a search term, hit purchase and have the song on my hard drive (and iphone and any other device I have connected to my itunes account) within 10 seconds. Hell, I'll open my screen recording program now and record me proving this: http://www.youtube.com/watch?v=KA2wzb0-4Pg

People pirate music because it's free, consequence free (the reason they don't steal cars is consequence) and everyone spends all day every day justifying it. It's not a matter of convenience, people go to more effort pirating than they would purchasing (except for cases where the music is not available commercially, but those instances are "rare" and not a worthy consideration for the sake of this argument).


> People pirate music because it's free, consequence free (the reason they don't steal cars is consequence) and everyone spends all day every day justifying it.

Please don't conflate tangible goods with intangible goods. Intangible goods are patterns. You can't steal a pattern, because a pattern can't be "owned" in any sense that a physical object can.

Now, you can have rights to a pattern and that right stops others from exploiting that pattern commercially, but you don't own the pattern. Even our current laws recognize this. After all, your right will expire, but if you own a car, you own it forever and without limits.

So enough with this "theft" bullshit.


> you own it forever and without limits.

The only reason this is true is that the laws say it is. Same as with those patterns of yours -- the laws could easily be changed so that you own the pattern always and forever. It's quite pointless to argue about the shoulds of the situation based on current law.

When we're talking about incentives for production and utility, it actually makes quite a bit of sense to conflate cars and music. They have many similar properties. On the consumption side, you do have to consider the added utility of making the music free, though, because some people will be able to consume it who otherwise wouldn't have paid.


The only reason this is true is that the laws say it is.

I disagree. I think it's part of the current social code/contract, not just the law. In fact, the RIAA/MPAA ads say exactly that - "you wouldn't steal a car" - because they know people find property (particularly personal property) to be something we have a right to.

Copyright, on the other hand, is only unquestionable by the law.


> I think it's part of the current social code/contract

Eh. For the purposes of what I said, these are about the same. Laws are indirectly derived from the social code, so just move my statement up a level. You still can't answer the question of how the social code ought to view bits from how it currently views them.

Sometimes the social code is wrong, and those who believe that copyright piracy is bad for society are making the case that this is one of those times. Simply observing the current state of the social code in no way counters those arguments -- although some of them can be countered other ways.


Eh. For the purposes of what I said, these are about the same.

That's the thing: I don't believe they are. 46% (70% for young adults) of the US citizens admit to have committed copyright infringement. Almost no one agrees with large fines or with cutting off the connection for infringers.

I think there's a big disconnect between the social code and the law.


OK, there may be somewhat of a disconnect. On the other hand, that disconnect is irrelevant to my point. I'm only saying that you can't argue from what is to what should be. Whether it's the social code or the law, pointing out that it's currently in favor of copyright infringement doesn't prove anything about whether it should be in favor of copyright infringement.


The should, however, is derived from the is. Our prescriptive laws are, at least in theory, derived from descriptions of reality. Thus do we claim contraception should be legal. Thus do we claim interracial marriage should be legal. These rights are fought for; granted from first principles, but also from social realities. "All men are created equal" was only taken to include blacks after the Civil War.

So too must the public attitude towards filesharing define our laws surrounding it. The majority of people have, without caveat, expressed through their actions their belief that filesharing is, and should be, a normal and accepted part of society. This may rankle those whose paychecks are predicated upon the status quo, but it doesn't affect our shifting morals. We are a people who accept and embrace "copyright infringement". It is only once this reality is accepted that the content industry may move forwards.


Yes, but not the tautological is. "People should not be sued for their entire worth for pirating songs," isn't derived from, "People like to pirate songs." It's derived from, "punishment should be equitable," "pirating a few songs isn't that big of a deal," and "that's scary." And those are derived from even further beliefs.

The important question is, if you take the root beliefs and walk back up the tree, do all of the beliefs come to an overall support of free copying? Then you do that in aggregate for society, taking into account uncomfortable truths about the economics of music production and advertising where necessary and on a level individuals won't when they derive their inevitable personal free-riding preferences. Going from high level feeling to high level feeling ("I like file sharing" -> "file sharing is right") does not work. Almost everyone says that they would prefer to pay less tax too.

To put it another way, there are plenty of things people would do if they could get away with it. Not paying taxes, driving as fast as they want, tossing cigarette butts wherever, etc. Your exact argumentation could be used to say, "Society's views about these activities need to change," but that's not actually the case. All you are observing is that people will take advantage of situations where they can get away with something, even if it's not ultimately good for society as a whole. In no way do I accept the norms that you're deriving from this. Rather, I should say that I don't accept the way you are deriving them. My personal jury is still out on whether I think filesharing is a problem that needs to be addressed more or less forcefully.


Your comment in no way actually addresses what he's saying, which is a hypothesis to the justification for why people do things. In fact, he didn't even conflate the terms as I see it, unless you want to say piracy is only related to theft. And the section you quoted doesn't even have the term "theft" in it (which you also quoted). In short, it's a tired talking point of a technicality that adds almost nothing to the larger discussion.

It sounds like you have strong opinions on the topic -- I'd love to hear more about how you think people justify copyright infringement.


> I'd love to hear more about how you think people justify copyright infringement.

People don't justify anything. By saying that something needs to be justified, you are suggesting that this is a moral issue? It's wrong for me to copy patterns of bytes? If so, then I've been a sinner since I was 10. Remember those 5 1/4 floppies, BBSes, IRC, etc? Yeah.

Copyright law was designed with businesses in mind, not individuals. Fair use should be expanded to encompass all personal use of patented or copyrighted material. Restrictions should only apply to commercial application.

Speaking of business ...

Did I mention I create digital works every day? That's what I do. I create software. My work can easily be copied ... and if it was, I wouldn't blame anyone but myself. Actually, I wouldn't even blame myself. Because my rampant "piracy" as a kid made me realize something. There is no value in software. There is only value in service. The software I write is merely a tool that I use to render a service and even if you copied it, you would only be left with a tool. I'm the final part of the equation and I can't be copied. That's the right way to do software.

What people don't mention is that the software industry was first. Before music, before movies, before books, before any of that ... the software industry was forced to change, more than that, it was born changed, because digital "piracy" was born with the software industry.


If you build good software that does what it's supposed to, there's no need for service. There may be need for additional software to solve a new problem and in that sense, you provide a service. But I certainly don't want software that I need to keep going back to the vendor for fixes for or new documentation or for training on how to use it. I think that's very much the wrong way to do software, despite your emphatic use of italics.


Maybe you don't, but others do. That's why Red Hat is a billion-dollar-a-year company.


Oh, absolutely. JBoss was long held up as the only viable model for being successful with open source and the inevitable model everyone would fall into. Give away the software, charge for support. The problem is support just isn't very scalable. There's room for both: different strokes for different folks.

But I still think the ideal in software should be for a tool that just works and is intuitive enough to not require training. There are a lot of tricky problem domains where that's unlikely to ever happen. Such is often the case with ideals.


You are a fine demagogue. You recognize exactly what I meant.

> There may be need for additional software to solve a new problem and in that sense, you provide a service.

And then assume I meant something else.

> But I certainly don't want software that I need to keep going back to the vendor for fixes for or new documentation or for training on how to use it.

Shame on you, sir.

> I think that's very much the wrong way to do software, despite your emphatic use of italics.

I think this is very much the wrong way to have a civilized discussion, despite your wit.


That's a shame - I was fond of the HTML pun. And I was legitimately unsure what you meant by your definition of service. Apologies if hedging my bet there irked you. I'm not a freelance/contractor/consultant and have no desire to be one, so the presumption that that's the only proper model for software development is one I don't take as a given.

For what it's worth, I don't agree you should be downvoted. But you also have made it hard to have an actual discussion by casting everything as right/wrong type of situation and then clearly dictating what is right or wrong. That really makes it hard to have a civilized discussion because there's no seeking of understanding, just refutation.


if you own a car, you own it forever and without limits.

No you don't; the car must be titled, road-legal, emissions tested, insured, and you must be licensed to drive. Those are some of the limits on owning and using a car. Physical possession doesn't constitute a natural right.

More generally, you shouldn't pretend like you can divine human law from physical constraints. Human law serves humans. Property law serves humans. Laws might want to take into account the nature of intellectual property as bits, or they might not, depending on what is practical and desirable; but the bits are an implementation detail.


> No you don't; the car must be titled, road-legal, emissions tested, insured, and you must be licensed to drive.

That is not true. All of those things are necessary to use a car, not to own one.


I'm pretty sure you need a license to own a car in most jurisdictions, but that's not the point. (And you definitely need a title to own a car because that's how you own a car. In some jurisdictions merely possessing the physical copy of the title implies ownership of the car, which is why you always keep the title in a safe place.)

Actually, you made my point for me. The point is society limits the way people can use property for practical reasons. There's no reason you can't do that on intellectual property because "omg it's made of bits".


The title is one way to recognize the rightful owner. If the title is destroyed or missing, those who believe in natural rights would still recognize ownership. Those who believe in state-given rights might not.

Also, you mentioned earlier that mere possession does not imply rightful ownership. I totally agree, as would anyone who has been the victim of theft.


So off base. Where to begin...

> And you're misunderstanding economics too. Just because you can get it for free that does not mean there is no market for people paying for it.

He says the opposite of this. Redthrowaway on free vs. paid content:

  The formatting was wrong, it was inconvenient, and the metadata
  was filled with crap from the rippers that meant it would never
  sort properly. So I bought an ebook from Amazon. 
> If pirating music was impossible many people would return to paying for music, the only reason they don't now is because stealing it is consequence free.

What are you saying? Are you advocating for harsher consequences and more enforcement of existing law or more DRM? It's unusual to see so many luddites on HN. Personally, I'd prefer to see modernization of IP laws.


> He says the opposite of this. Redthrowaway on free vs. paid content:

That's a tired and no longer relevant point. His point is that people will pay for the convenience of acquiring media, and then presents an example of when it was convenient to him (purchasing an ebook when the pirated version was sub par quality). However, as I showed in my video example, iTunes (and many other companies) have already addressed this issue, they have solved the convenience part and people still pirate, which shows (to me at least and I would hope everyone else) the issue is NOT acquisition of content or convenience, it's saving money.

Also no I don't think people should be punished more harshly for media piracy, I don't ever want to try and comment on the proper legal approach because I don't understand enough about the law to do it properly, but my basic thoughts on media piracy have been previously outlined here: http://news.ycombinator.com/item?id=3694764

Piracy happens in most cases because it's FREE, this is the #1 reason, the fact that Spotify etc. are finding success should be the absolute proof: Spotify is free (or cheaper, if you pay for a subscription) than purchasing music, that's why people use it. Convenience is not a valid or relevant reason for (most) media piracy any more. There are some cases (such as acquiring the entire discography of an artist or group, which can't be done easily through any pre-existing product) which makes piracy more convenient, but the common use case of media acquisition (a single song or an artists latest album) is not part of the convenience.


Maybe iTunes "addressed the issue," but not in a satisfactory way. iTunes is not remotely convenient for me. I can't watch an iTunes movie on my TV without either a) Buying a useless gadget from Apple, or b) Removing the DRM. Also, things are generally available for piracy way earlier (we're talking months in some cases) than they are on iTunes. That is a huge, massive inconvenience.

As for prices, yes, iTunes is also much too expensive for many things — when I can buy a physical copy and have it shipped crosscountry to my house for a fraction of the cost of iTunes' lousy crippleware, something is wrong — but that seems beside the point. Yes, a lot of piracy happens because it's free. Most of that piracy doesn't really seem to be replacing sales and so isn't really relevant from an economic standpoint. Those people just want something for free. It seems like the point where piracy really becomes a problem is when it's the superior option even for people who could easily afford to buy your wares.


Also people like the convenience of choosing and sampling from a large catalog of songs/media while paying only for things they really like. That is why flat rate streaming services are popular. $0.99 in content industry's eyes might be very low and already accessible price. But its too high for consumer who probably listens to it once a month while sampling a lot of songs - one more reason why flat rate streaming is the way to go....


> iTunes (and many other companies) have already addressed this issue, they have solved the convenience part and people still pirate

iTunes still isn't the most convenient source for many things. My one experience with iTunes was trying to buy an album from a French musician. I spent several hours creating a fake French account with a legitimate French address and tracking down a French iTunes gift card. I had to give up, because the artist didn't take the time to manually check all 300 locales to include his album in.

You consider that 'solved'? The artist never got the money I was actively trying to give him.


You have to divorce the existence of piracy from the viability of the industry. What should matter to those running the companies in question is not how many people are getting something for nothing, but rather how much they're making off those who are paying, and how they can convince more people to pay. For some people, cost will be the overriding factor and they will always pirate, even if it's a worse experience. Others are willing to pay for an improved service. Focus on the latter, not the former. You will never squeeze money from the people who aren't willing to pay; they simply won't consume instead. Focus on making your money from those who are wiling to pay, and everyone will be better off.


> People pirate music because it's free, consequence free (the reason they don't steal cars is consequence) and everyone spends all day every day justifying it.

This is the utilitarian, simplistic, convenient and completely false view. People are definitely NOT perfectly rational beings working towards their maximal, personal profit. This is why, BTW, libertarianism is a silly, childish pipe dream.

Coming back to the subject, people are perfectly aware that taking someone else's physical good may harm this person directly, that's why it's always carefully regulated by many told and untold rules. Even the most small, primitive societies have mechanisms for goods exchange and appropriation.

Digital goods aren't goods, they're information; when they're shared, the originator keeps them. Nobody never sold "information", only convenient, easy or practical access to it. People never bought "music" in the form of CDs, they bought CDs as the way to listen to the music they wanted.


> What shows market value is the desire for that product.

I disagree with this completely. There's a tremendous desire for oxygen. Literally every human being needs it nearly every second of their life. However, it has no market value because it's freely available wherever you go. You're basically saying that price should be determined solely by demand, regardless of supply. You're ignoring fully half of economic theory.

Yes, there is a huge demand for digital copies of music and video, but there's also an infinite supply of them.


If/when stealing cars becomes easy and without consequence (ie, I can copy yours and have my own), I suspect the auto industry would be in the exact same boat as the record industry is now.

I look forward to that day so we can all have awesome hybrid vehicles that run on garbage. I suspect people will also be able to make awesome mashups so I can get an EV Jeep pickup or a 2012 convertible beetle.


The stealing bit is a red herring. Copying is not stealing. I'm pretty sure I can now borrow a car and, if someone was willing to lend me a fully equipped workshop for free, build an exact replica of it without cost (in money). So in that sense, a car and a music file are the same. It's just that it's practical to do it with a music file, and not (yet) with a car.


> If pirating music was impossible many people would return to paying for music

I think you've missed the parent's point. We have left the world where pirating is impossible. The question is how to deal with it. Thinking in unrealistic hypotheticals does little to inform the debate.


It informs the debate in the sense that it confirms music does have value. It's sophistic to claim that music has no value because people can avoid paying for it, which is I think the point your parent was trying to make.


We have to make sure that we do not conflate utility (absolute value) with market value.


Yes, market value is probably not the term we want to use to make statements about what should be done around copyright law. Anything you can't force people to pay for has no market value. Making a normative statement about whether people should have to pay for something based on market value is begging the question.

It's more important to think about utility, because that can help us answer the question of whether the government and laws should be used to create market value where there is none by trying to make a good excludable.


the reason they don't steal cars is consequence

Are you saying that 46% of US citizens* would steal a car if it was consequence free? Because I'd like to see some evidence of that.

* The number who have said to have committed copyright infringement.


Absolutely they would. Similarly, an even greater majority of American drivers will disobey road safety laws (most commonly the speed limit) which are statistically shown to mitigate traffic fatalities. In other words, they will buy a ticket to a lottery of potentially killing other human beings solely to increase the perception that they're getting to their destination faster. And why? Mostly, because it's easy and there's rarely consequences.

And then, after they do that, they will spend countless hours writing message board posts on fora all over the Internet about how their speeding tickets are elaborate scams set by the government to raise revenue. Their justifications are almost as elaborate and refined as those of music pirates.

(I'm not on a high-horse here; I speed too.)

"Everyone does it, so it shouldn't be illegal" is --- and this is so obvious I don't even have to provide the most vivid examples --- historically a very dumb argument.


> Absolutely they would.

That's still just an assertion.

> an even greater majority of American drivers will disobey road safety laws (most commonly the speed limit) which are statistically shown to mitigate traffic fatalities.

And that's far from obvious, actually, especially when it comes to speed limits which you single out. See for example this analysis from the Cato Institute:

> Despite the fact that 33 states raised their speed limits immediately after the repeal of the mandatory federal speed limit, the National Highway Traffic Safety Administration reported last October that "the traffic death rate dropped to a record low level in 1997." Moreover, the average fatality rate even fell in the states that raised their speed limits.

http://www.cato.org/publications/policy-analysis/speed-doesn...


"Everyone does it" is an important consideration, if only because making regular people into criminals erodes general respect for the rule of law. "Everyone does it" won't outweigh every harm, but it surely outweighs some.


That's what people who speed (ie: most people) say. "This is evidence we should raise the speed limit". And so we do, and state after state runs studies showing that the result of doing that is traffic fatalities.


Similarly, an even greater majority of American drivers will disobey road safety laws (most commonly the speed limit) which are statistically shown to mitigate traffic fatalities. In other words, they will buy a ticket to a lottery of potentially killing other human beings solely to increase the perception that they're getting to their destination faster. And why? Mostly, because it's easy and there's rarely consequences.

But stealing a car always has consequences: someone has one car less. Saying that people would steal cars if the stolen cars didn't disappear from their owners is illogical.

On the other hand, disobeying road safety laws doesn't in fact have consequences most of the time: people rarely get hurt. And it has been demonstrated that people are terrible at evaluating odds. So the situation is far from analogous.

"Everyone does it, so it shouldn't be illegal" is --- and this is so obvious I don't even have to provide the most vivid examples --- historically a very dumb argument.

It's not my argument. I was just questioning parent's claim about stealing cars.


This is just a matter of it being hard for us to weigh the relative values of probabilities. I mean, just getting in a car creates a measurable likelihood that you'll kill someone, but it doesn't bring it to a level that most people would consider worryingly high. Ditto for, say, ironing clothes — you increase the chance that somebody around you will die (e.g. from a fire), but not by enough to ping anyone's conscience. Most people view speeding the same way.

This is not at all the same thing as being willing to steal somebody else's car just because you know you won't get caught. In that case, you know that you are creating immediate harm to that person. People weigh that differently from a vague chance of killing an abstract person.


Yes, I am absolutely stating that if you asked the "average American" whether or not they would steal cars if there were no consequences (financial, legal or moral) they would absolutely say "Yes, I would have no problems stealing a car".

Another way to ask the question is to say "What are the consequences of stealing a car from your neighbour?" and I would say the answers would be "Legal (theft), moral (I have taken someone else's car) and financial (I have saved money on a car)". If stealing a car was consequence free then none of these would matter.


Oh, I didn't think you were including moral consequences.

Then the questions I have are; why is copyright infringement free from moral consequences while car stealing isn't?


Because... Mark my words closely... When you steal my car, you deprive me of my car. When you take a picture of my picture of a lamborghini, you deprive me of nothing except for the artificial right to charge you for the right to take a picture of my picture of a car.

The moral consequences differ because the consequences differ.


If you are in the market of selling pictures of cars and you take a rare (in fact, entirely unique) photograph of a car, then someone else takes a picture of your picture and sets up shop next door to give them away for free, they have deprived you of your ability to earn money from distributing that which you invested in the creation of. Just like diluting your equity in a company, they have not taken your physical property (or shares) but they have taken value from you regardless.


Or let's say that I am the brother of El Presidente, and I run the state monopoly on cigars, and farmers grow tobacco and sell cigars directly to tourists, they re depriving me of the value of my mnopoly.

But they aren't depriving me of my tobacco. The two are different, which is why the morality of the two are different. Nobody denies that being able to get the police to enforce a monopoly has value, but it's not the same kind of value as the ability to enjoy smething for its intrnsic value to the owner.

Different kinds of value, therefore different kinds of morality. I'd say that the right to monopolize bits has nothing to do with the bits and everything to do with taxation or rent-seeking.


You're comparing someone selling a similar product that they had to grow on their own land using their own resources to someone taking a product that is completely unique and cannot be found in nature, and diluting your value from it down significantly without any financial repercussions to themselves. Apples and oranges.


I would think that people view car theft as more morally consequential than copyright infringement because of its tangible nature. If someone takes a car, someone else is now missing a car. However, if someone were to illegally download a song, nothing irreplaceable is taken (i.e. the artist isn't deprived of the music they have created).

I would also think that the relative value of the items makes a difference ethically. Assuming a song has a value on the market of $1 and a car has a going price of $10,000, the car is four orders of magnitude more expensive. Imagine if only one person could own a song at a time, and that song was valued the same as a car. I don't think you would see the rates of copyright infringement that you see today. For this same reason, I disagree that if car theft became consequence-free, many people would do it. The moral consequence is derived from the value of the object you are depriving someone of; a car is far more valuable than a song. Additionally, there's the ethical consequence of depriving someone of transportation, while taking a song does not really have any effects on a person's quality of life.


I would say it's because of consequence and anonymity, people do it because they won't be fined or arrested and no one knows about it.

People will do all sorts of crazy things if the system allows them to http://en.wikipedia.org/wiki/Stanford_prison_experiment


> People pirate music because it's free

I do think that's incorrect, but there's a broader picture issue that makes this irrelevant: Why does it even matter?

You're misunderstanding the original argument. Of course it's possible to make some money for selling something that is free. Specially if you convince people that it's not free, and that you'll go to jail if you do otherwise. But what they mean with "there's no market value", is that it doesn't create any new value to the economy. It's just money changing hands. If you ask me for 5 bucks and I say "yes, of course, no need to pay me back", we didn't just magically create value in the economy because I payed you 5 bucks for nothing. The value in the economy is the same, that's just money changing hands.

If I pay money for a copy of a song, that's just money changing hands. It didn't add any new value to the economy. If I didn't pay money for that copy of the song. The song would still be there. No change in value.

Unless, of course, if you make the argument that music would cease to exist if we start sharing it for free. Which I would honestly rather not get into.


So the billions of dollars that exist for developers because of the app store are not value to the economy? huh?


Piracy is a reality in app stores. But you don't see developers running around to sue people downloading pirated copies. That's because they acknowledged that these people won't pay them and focus their efforts on people who do pay them. Most of the apps even have free versions just so that users can sample they app and judge it for them selves before buying it. All these are adaptations to the environment in which they operate. Content industry on the other hand refuses to adapt.


I'm not sure what do you think is related in your analogy. Seems like two completely separate examples. The software industry adapted to depend less on copyright faster than the music industry. You don't see as much valueless copy selling in our industry anymore. Music should be following us, but they're slower to adapt than we are. Which is exactly the whole point of this discussion. What are you trying to say?


The free market is meant to make prices as low as possible, not as high as possible. That is why we have laws against monopolies and encourage competition. The argument that things should cost as much as people will pay for them is a pleasant fallacy of a businessman.


> If pirating music was impossible many people would return to paying for music, the only reason they don't now is because stealing it is consequence free.

so basically $10 per CD, everyone CAN AFFORD a wall full of CDs, lets say 10,000 of them, but they choose to steal instead? OK.


And they are welcome to keep paying for it--as the rest of us download free copies.

As for convenience, I may find it more convenient to download music from TPB or a college FTP than from iTunes, because I don't want to deal with their installer or give away my billing info. Convenience is an utterly subjective measure.

(also, your car analogy is shitty and bad and you should feel shitty and bad)


"because I don't want to deal with their installer or give away my billing info"

Of course - because once they have your billing info, they can actually bill you and your bank account will decrease by the cost of the CD.

So you pretty much proved his point - you just don't want to pay for something you can steal.


The word for this is "tragedy of the commons". http://en.wikipedia.org/wiki/Tragedy_of_the_commons


Content is scarce if you think not just about distribution, but creation. As a thought experiment, if no one earned anything off of information goods, at all, then fewer of them would be produced.


No, go to any mid-sized town or bigger, there is at least one recording studio, making decent or good recordings for bands that never hit the "*AA lottery", but make decent money (either in the form of door fees and schwag, some even enough to live on) giving away CDs at shows to keep people coming to the next show. Even more that do the same thing, but keep a day job and do music for the love of it.

For every band you've heard of and hated, there are several you've never heard of, but probably would enjoy.


Every band I've ever gone to see sells CDs at their shows, and they're mostly the kinds of bands you describe.

> keep a day job

"Producing less of it" because they can't earn enough to do it full time. There would be more people in that boat if, in my thought experiment, they earned absolutely nothing from their content. I don't think we'd actually ever reach that point, but just think about it as a 'what if'.


When you pay a door fee to see a show, you are paying for the content: a live band performing their songs.

Also: some bands sell CDs, some give them away, lately fewer are selling, but instead are giving away passes at download sites. Even those that sell the CDs give away at least half if not more of them, because they would rather people listen to them and come back for the next show, and tell their friends, making $3-10 per person per show, than make $10 on the CD one time.


No, you're not paying for the content itself, you're paying for the band's time, and the limited amount of space in the venue - like you said, the performance; but not the content. Those are both scarce resources, whereas the actual bits are not: you could stream that out on the internet to a virtually infinite number of people.

Now, how about authors?


Actually, you are paying for the content too. The content is the driver for the scarce space in a venue. Ever been to a concert bar on nights without a show? They are dead, there is no reason to be there without the music. Similarly, most people don't say "will there be a band there tonight?", they say "which band will be there tonight?", implying the music is at least as important as the fact there is a band and a bar. Putting it on the internet doesn't actually matter, many venues do that, and are sold out anyway. Being on the scene is actually important to a lot of people.

As for authors, I wasn't talking about them, and I'm not going to play strawman games with you.


> As for authors, I wasn't talking about them, and I'm not going to play strawman games with you.

Authors are producers of 'information goods' too, and I hardly think such a large category of people constitutes a 'strawman'. It's an issue that to them is very real - musicians can sort of fall back on performances, but authors can't.


("thought experiment"--you keep using that phrase. I do not think it means what you think it means. What are your terms? What are you trying to show? How does one lead to the other?)

How many artists produce one-hit-wonders and then do basically nothing else, living off of payments? How many other artists produce more in their free time (Zappa, Waits, Infected Mushroom) then others do in their career (Chinese Democracy lol).


Producing less of it, yeah, maybe. But people seem to be forgetting that producing content or enriching content creators is not the goal of copyright law. It's supposed to "further the progress of science and the useful arts", and there is clearly a tradeoff between allowing people to copy versus allowing creators to monetize their creations.


It's supposed to be a tradeoff, exactly. The reason why you want producers to get money is so that they can keep producing stuff you like.


So it is only a tradeoff when they get all the money they possibly can by making the stuff less useful to us? Sorry, that is absurd. No one is saying they shouldn't be paid, just paid with a different model, that the tech has changed, and the model should change with it. Preserving the status quo, against the changes wrought by technical progress (a useful art resulting from scientific progress) is sort of the opposite of "furthering the progress" of those things.


Ok, fine, which model(s)? There's way too much dancing around this from many advocates of eliminating IP laws completely. I am not an advocate of keeping things completely as-is - the producers have too much clout - but think there would be a risk of tossing the baby out with the bathwater were there ever a serious consideration of radically curtailing IP laws. And by radically, I don't just mean shortening the terms, I would consider that quite sensible.


Well, First of all, I am not advocating completely getting rid of copyright. I am arguing for a change to it, and that there are business models that don't require draconian bullshit and law buying. But keep fighting that strawman if you want.

I would like to see copyright shortened to 2-5 years for exclusive distribution rights. I would like to see attribution requirements extended to say, 100 years. If you want to use the work, fine, but make sure you mention your work's pedigree. (altho at some point, its going to be either so known and part of the cultural zeitgeist that you don't need it and attribution requirements become a burden, or it won't matter, hence the 100 years). I would like to see unauthorized distribution fines go down to something reasonable, say 200% of the nominal cost at time of distribution + any profits made, and a reasonable fine on top of it (say $100). Since most people distribute for free, we should treat file sharing the same as a speeding ticket not a life changer - the fine system keeps the worst of the offenders relatively at bay. (it is bullshit position to think we should stop every last one of them every last time)

As for business models that work: Why do we need to know up front? Seriously, this here is a disingenuous argument. Instead, do like the tech industry does: stop propping up a bad business model with laws, and let the giants fade as better models come along and take their place. As the big companies decline or innovate, new ones will come along and mostly fail, but at some point, one will figure it out. I once heard someone say "silicon valley is just a big monte carlo simulation of business models". So lets just do that.


My point is not that they shouldn't be paid. The question is how it was decided that suing college kids and moms for copyright infringement to protect enormous profits by media conglomerates and moving towards increasingly punitive IP enforcement is the appropriate tradeoff. It doesn't seem the media companies acknowledge there should be any tradeoff.


Try stopping into to some of those recording studios and having an in-depth conversation about how they're being impacted by online copyright infringement. I have, and while most accept it as a fact of life now, they will also explain how it is hurting their business and ability to make music professionally.

> giving away CDs at shows to keep people coming to the next show

No band in the world does this. They SELL CDs at shows, because it's one of the few ways they can generate enough cash flow to buy gas and food.


I guess it's possible, but extremely unlikely, that I am just so cool that they want to give me a free copy to share with people, but I have legitimately never paid for local band's music. By this I mean a band member or representative will give me CDs or Download links all the time. Usually I stop by the table to grab a couple band stickers or a tshirt, and they ask if I want a CD (usually I don't, my live music preferences are much different than my recorded preferences but I still want to encourage their performing). When I decline, they just hand me one anyway and say here take it anyway. If I point out that I wouldn't listen to it, I prefer this music live, they say "give it to a friend".

Basically my point is, they won't decline the money, but they still want their name out there bad enough to make the trade-off. Particularly when it's download coupons rather than CDs (which have an up-front cost). Similarly all the recoding studios in my town are booked up solid, and the better dozen or so sound engineers are never hurting for work. (And this is a pretty small town, 200K pop in the greater metro area).


What? Are you unable to understand the difference between making a statement with unspecified assumptions, and making a crafted argument with carefully specified axioms and clear logical reasoning--while also noting obvious facts about the real-world implementation of the topic you debate?

How many songs/stories/etc. are dreamed up by kids and never published? How many love poems are written and not saved?

Content is far, far from scarce.

(also, that isn't a thought experiment you suggested: it was an assertion provided without reasoning.)

EDIT: Amended to better address inflammatory language.


> What? Are you retarded?

No, and that kind of comment is not welcome here, either.

Information goods most certainly are scarce if you look at the effort it takes to make a song, a movie, a complex piece of software. That time and effort is not free. 'Dreamed up' is a lot different from 'sat down and worked hard on it for months'.


(that kind of comment saved HN bandwidth several dozen KB, I wager. But, have it your way.)

Your argument about scarcity is akin to saying "Never mind that we have trees that drop fruit on the ground for everyone into perpetuity--when you consider that we collect some fruit, cart it off to town, polish it, and cart it back, and sell it, of course fruit is a scarce resource!"

If the time/effort would've been expended anyways, yeah, it's effectively free. If the time/effort would've been better spent elsewhere, it shold've been.


> (that kind of comment saved HN bandwidth several dozen KB, I wager. But, have it your way.)

Come on now, you've been here long enough to know that's not how HN works. It's about basic respect towards others--not just to the poster, but to all of us here on HN. As a developer (and someone who runs a development shop?) you know that developer time is important. A comment is 10 seconds to write but will be broadcast on a site like HN to be read by many over many cumulative hours. Say those things which are worth saying to 100k hackers, not those things which are not worth saying to one.

You run a C-based dev shop out of Houston. I run a C-based dev shop out of Austin. The probability of us doing business together IRL is unusually high. Now when we meet, I'm always going to be thinking of you as that guy who gets into flamewars and insults others, instead of the guy who writes beautifully-commented crypto POSIX code.


You know, you raise a pretty good point. I screwed up in the heat of the moment.

I can go to great lengths to explain that the copyright/IP battle is uphill, and that every talking point parroted blindly and every baseless assertion made without logic is just more deadweight we have to work against, and that the (relative few) people trying to work for a better future can't afford to treat unsubstantiated remarks with anything less than full-on ridicule and insult. That's all well and good.

But, really, this is about respect, and regardless of how I feel on the topic, I crossed a line in what is otherwise a place of civil discourse (and the occasional lighthearted troll).

Thanks for calling me out on that.


>Are you retarded?

Please try to avoid this.


Fixed.


>What? Are you retarded?

In a comment starting with such question and attitude you'll very rarely find anything worthwhile...

>How many songs/stories/etc. are dreamed up by kids and never published? How many love poems are written and not saved? Content is far, far from scarce.

So, songs/stories "dreamed but never published" and poems "not saved" mean that content is ...far from scarce?

For one, "not published stories" are as good as NO stories at all, with regards to scarcity.

Second, we are not talking about every BS story everyone thought up at some point as content.

We talk about actual worthwhile content. Most of it is done professionally. Or, if you want to avoid the quality judgement, most of the content people WANT and DO consume, is done professionally.

If the creators weren't compensated there would be less of that content. And , surely, not of equal budget and scale. You can't record "The Wall" or film "The Matrix" without getting paid. Except maybe for some talented multi-millionaire, doing it out of passion. Not many of those around.

I don't think many would take an interest in "songs/stories/etc. are dreamed up by kids and never published".


Look, the entire debate is/ought/mustbe centered around means of distribution, right?

The person I was replying to was trying to contend that content is scarce. I showed that, no, it indeed is not. Had they put in your caveat that undistributed content might as well not exist, I would've cheerfully argued and perhaps ceded the point. But, their statement, as given? Wrong.

Also, you claim (as does everyone else in this debate, it would seem) that creators must be compensated or less content will result. You cannot prove this, or if you can, you have not shown a reasoning chain that results in it. Use logic.

EDIT: Downvote away, but for chrissakes at least provide your reasoning. What is this, reddit?


>The person I was replying to was trying to contend that content is scarce. I showed that, no, it indeed is not. Had they put in your caveat that undistributed content might as well not exist, I would've cheerfully argued and perhaps ceded the point. But, their statement, as given? Wrong.

It would be better if you spend some time to understand what they MEANT with by "content" in their statement, instead of attacking their statement "as given", i.e with only considering the more basic meaning of the word content.

Also: it's not just that "undistributed content might as well not exist", it's also that content not done to a level the public wants "might as well not exist". Even if you distribute (say, online, on YouTube) your "movie" made with a camcorder, it doesn't mean it will replace an actual, budgeted movie, for the majority of people.

>Also, you claim (as does everyone else in this debate, it would seem) that creators must be compensated or less content will result. You cannot prove this, or if you can, you have not shown a reasoning chain that results in it. Use logic.

Why don't YOU use logic? I don't have to "prove" anything, it's obvious.

1) People produce content for two reasons: for free and because they are paid to do so.

If they are not paid, the second reason ceases to exist. (If you don't believe that some of the professional content creators would not produce stuff if there were no money involved, talk to some of them). A lot of content is not produced "out of passion" at all, but solely for money. Justin Bieber songs, hollywood blockbuster, etc.

2) Content creation costs money. If content is not paid, expensive content will not be produced by anyone, even those that do it out of passion. A money, which can get to $100 million budget easily, is expensive content.

3) Content creation takes time. If professional creators cannot do it as a full time job, they will work some other full time job, and if they still feel the urge to do it out of passion, they would do it on their spare time. Again, volume will drop.


(thank you for a fuller response)

Re: your 3 assertions towards the end.

1) Agreed. However, the absolute amount of content being produced is increasing regardless as population grows and tool proliferate. We all know you can't count a decrease in growth the same way you count an actual cost.

2) Content creation becoming expensive can be a function just as much about expectations of what something should cost as it is actual production cost--so, no, I don't agree that creation costs what it actually needs to. Expensive things won't be made, sure, but what about ten cheap things instead? Or a hundred hobby things?

3) Agreed that time is used. However, how many people program in their free time if they do it as a job? How many people shoot movies in their free time as Best Boy Grip or whatever? Just because they do it as a day job doesn't mean that they'll do it as a hobby, too. Or that they wouldn't increase their hobby time now that they don't have to do it for a living.


That abundance of music isn't created by independent effort. We aren't talking about trade in covers of "Sergeant Pepper." The abundance is created by the violation of the legitimate and rational rights of individuals in the product of their own work.

I can make a lot of things abundant, for a time, with similar violations. But that doesn't mean those are right, or an intelligent way to get along with other people. No one but the strongest and sneakiest have an interest in the economy of what you can get away with.


Currently, musicians and distributors get paid mostly via rent-seeking activities - they forego advance payment for their labor in exchange for the possibility of rents on the products of it.

This has a few advantages - the utility of music is generally unknown at the time of its production. Popularity, especially, adds utility to a piece of music and is very difficult to predict in advance. In fact, I think popularity dominates the utility that many content consumers derive from music. Sometimes auteurs manage to produce something that defies your expectations and gives you much more utility than you thought it would have.

If you retain the right to seek rents on content you've produced, you're able to charge what's appropriate to the utility that consumers currently derive from your music, rather than what they'd have expected to when you made it (nothing, if they'd never heard of you!). If you can't seek rent on the products of your labor, then you have to get compensated for it directly. Currently, musicians do this mostly via live performance, but I suppose holding content for ransom via some sort of kickstarter-analogue might be a viable way forward.

If I had to guess, I'd guess that there's less money in that sort of thing than rent-seeking, but I'm certainly not an expert. If there's less money in it, then there will be less high-quality content. I've thought about it, and I think I'm okay with that. If the market for recorded music contracts due to digital sharing, I think I'll live, and I'd prefer digital sharing to remain possible.

It's unfortunate for musicians, but I guess I'm just a callous soul.


Not sure why you call it economics of scarcity. The distributors want control over the distribution method to make sure they are paid for whatever they are distributing, not to create scarcity. If something is popular, won't distributors try and sell as much of it as is possible.


The two are one and the same--the only way to force people to pay for something is to make that thing scarce. In the case of information, which is not naturally scarce, that scarcity has to be entirely artificial.

If something wasn't scarce--e.g. information sans copyright--then anybody could get it without paying. This is a practical reality that copyright attempts to change by legal means; the argument is that the legal means impose a larger cost than benefit on society.


The distributors wish to control the scarcity of the copies of content. If there is an overflowing abundance of copies then their model of enforcing a 1:1 sale for every copy breaks down.


Water is free but it is still illegal to shoplift bottled water from the 7/11. Just like it is illegal to infringe copyright by redistributing songs without permission. And for the same reason.


This is exactly the same flawed analogy, in slightly different dress, used in the "you wouldn't download a car" argument.


I don't think so, and here's why: we are post-scarcity when it comes to bottled water. You don't deprive any other 7/11 customer of bottled water when you shoplift, because 7/11 carries a lot of bottled water and has developed processes that ensure they never run out.

You could probably shoplift all the bottled water you can carry, every day, and you still would not deprive another customer. 7/11 would simply keep shipping in more water so they would have product to sell. (Of course they would also get some cops in there to try and stop you!)

Eventually, if they're not making enough money due to all the shoplifting, they might stop carrying bottled water. But that won't be because they ran out of supply; it will be because it's no longer profitable to do so. This is analogous to a movie studio deciding not to make or distribute certain kinds of movies anymore because it is no longer profitable for them.

What about the store? Surely you're depriving them of the bottle of water, right? Again, not really. The store does not actually want to possess so many bottles of water--what they want is to make money by selling bottles of water. And if you look at the economics of the transaction, that's primarily what you're depriving them of. Let's say a bottle of water is priced at $1.50. 7/11, who buys in bulk and then marks up, probably paid $0.50 or less for that same bottle. Thus when you steal it, 66% of the harm is in foregone revenue! Only 33% of the harm is loss of property value. Again, this is analogous to copyright infringement, where the primary harm is foregone revenue, not deprivation of property.


The author, and the content industry in general, are misunderstanding basic economics: Just because there is a cost to produce something does not mean that it has market value.

And your are misunderstanding even more basic economics: being able to take something (or a copy of it) without paying, doesn't mean it doesn't have value either.

Value is where there are people willing to pay.

And people ARE willing to pay for music and movies.

So, the problem is not that the content has no value, but rather that the payment step can be bypassed very easily.

But bypassing payment easily != the thing has no value.


Market value is determined by scarcity and demand, right? Scarcity is finished for digital items. Sorry, but that train has left.

This very much follows economics.

(and stop conflating utility with market value...argh....)


If you can't have value without scarcity why would something be pirated? Value can be intrinsic without scarcity.


That's use value.

We're talking about monetary value -- i.e the ability of the item to generate money.


Market value is determined by scarcity and demand, right? Scarcity is finished for digital items.

No, just demand.

You can simulate scarcity with access provision. Else you don't get to have an economy in the digital age.

People talk like this is something new, but it's not. Sun Records made Elvis's singles. Nothing even in that analog era prevented ANY OTHER COMPANY to reproduce and sell the same singles and not give Elvis a penny. Nothing, that is, except the copyright law.

This also holds for software licenses. If digital copying means "forget about copyright law" (a prerequisite to declare that "scarcity is finished") then why should anyone respect the GPL license any more than Metallica's copyright?


You are dancing around a point, here.

You can't simulate scarcity with access provision. We've solved that. We wouldn't be having this same stupid tired runaround if access provision worked or could be made to work without being repugnant.

As for the Elvis singles, those were physical goods, housed in physical places, with physical companies. This is vastly different from people giving away byte patterns to one another--and the sooner this is accepted, the sooner we can all productively talk about it.

As for your GPL license...

I'm willing to wager that, shock, there are a lot of companies that use in-house tools having modified GPL source without publishing their changes. I'm willing to wager even more that in developing nations there are lots of IP violations of that nature occurring.

Your law means nothing if it cannot be enforced.


GPL restrictions don't come into play until the point of redistribution. That is at least true for GPLv2, and I'm pretty sure for v3, but I don't know it at all.

In short, I can modify the GPL source of an application all I like if it's an "in-house tool", and I am not required to resubmit my changes. It's only if I attempt to sell it or redistribute the application in some way that I am required to.

That is not an IP violation.


We don't get to have an economy based on paying per copy in the digital age. Ransom and work for hire are unaffected, because nobody can copy work that hasn't yet been created or released. This is a good thing; rationing copies has been reducing every work's overall use value for society.




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