Saturday, February 24, 2007

Open-Source Software - article by Boldrin and Levine

Michele Boldrin and David Levine have written an excellent article for The Freeman, entitled Open-Source Software: Who Needs Intellectual Property?. They write,

The market for open-source software—uncopyrighted, freely reproducible computer programs—is not well understood by economists. A central source of surprise is that innovation can thrive in a market without traditional intellectual property (IP). But as we argued in a 2005 unpublished paper, “Perfectly Competitive Innovation,” as a matter of theory there is no reason to believe that monopoly power through IP is needed for innovation. The market for open-source software is the poster child for this perspective.

Read more...

Friday, February 16, 2007

Hey hipsters, liberty is the new left

It was bound to happen. Libertarian is the new left.


Decentralization defines this new spectrum. Decentralization and liberalization are our best defense against those who would take us down the road to serfdom. Isn't that the great lesson of the 20th century? Yes, yes, in so many ways, but ...

Wait! Just one question.

Looking at this diagram, wouldn't anarchy be on the left?

No, I'd say... it's somewhere on the right.

Constitutional law, grounded in the American Declaration of Independence, with its presumption of liberty, with its limited powers, with its mixed republic, with its elections and juries, with its federalism, with its measured taxation, would stand to the left. True progress comes from the respect each of us has for a certain sphere of innocence and independent action that attaches to every person in his or her individual life and social interactions. The rights in this sphere are equal, innumerable, and inalienable. They do not conflict. They are natural. They are neutral. Creative people thrive in this freedom and build the world without having to ask permission. The Declaration of Independence is far left. It calls for a revolution in our thinking, in our culture, of which we have barely scratched the surface. The Constitution, in its art, merely tries to measure up.

As for the rest of the spectrum, amid the legal anarchy, you might find semblances of law. Perfunctory law would lie somewhere in the middle, going through the motions. Zombie law would patrol on the right, dead yet walking, and arbitrary.

Liberty and anarchy are distinct and opposed, as are liberty and collectivism. If you think libertarianism means anarchism and no taxes, then you can call me a liberal.

Whatever you call it when someone says, "Hey, liberty's deck," that thingamajig is the new left. Liberalization defines the new spectrum. Yes, then I'd agree.

Liberty is the new left.

Source for diagram: A political spectrum that makes sense by Jim Ostrowski.


UPDATE: Little Venice, as it slides towards legal anarchy and little dictatorship, takes its rightful place on this spectrum.


According to Venezuela's 1999 Bolivarian Constitution,
Artículo 114. El ilícito económico, la especulación, el acaparamiento, ... y otros delitos conexos, serán penados severamente de acuerdo con la ley.
According to an unofficial translation available at the website for the Embassy of the Bolivarian Republic of Venezuela in the United States of America, this translates to,
Article 114: Economic crime, speculation, hoarding, ... and other related offenses, shall be punished severely in accordance with law.

Here we have some conflicted commentary on PBS's Chavez report, by a team caught up in the old political spectrum.
So last century.

Update (Dec 6, 2007): Reality starts to hit, according to this report on Newshour with Jim Lehrer.



Reference:
Solonian Journal - On Rights

Monday, January 08, 2007

Why I am an Abolitionist

In the debate on how best to cut back the weeds of intellectual monopoly that entwine us, there are reformers, and there are abolitionists. I am an abolitionist.

The fledgling Pirate Party of the United States has not yet decided on its position, whether it is to be a party of reformers, abolitionists, or both.

The debate swirls upon the Pirate Party's "Points of Unity", which are its core principles, few in number, to which all board members of this pirate party must subscribe according to Section 2, Clause a, of the Proposal on Board Members.

On November 6, 2006, I wrote a small objection. The next day this objection was nearly ignored. Heart racing, I rose to defend my position.

[20:43:31] <nbx909> what about this objection
[20:44:06] <Gamer8585> its a radical proposal from the party fringe. I say deny it.
[20:44:46] <nbx909> i motion to dismiss this objection since it doesn't have enough support
[20:44:51] <Anon075> hi, I'm the objector. Actually the Swedish Pirate Party advocates the abolition of patents, too.
[20:44:52] <AdamG> well. How do you deny an objection? Has that happened before?
[20:45:02] <AdamG> Hello Anon075
[20:45:05] <Anon075> Hi
[20:45:07] <nbx909> hello
[20:45:11] <nbx909> good timing
[20:45:16] <AdamG> that's true, PPS does advocate the abolition of patents
[20:45:23] <Anon075> Jefferson advocated it, too
[20:45:24] <AdamG> That doesn't mean they are right
[20:45:33] <AdamG> Doesn't mean he's right either :)
[20:45:51] <Anon075> I may not be right, but should I be excluded?
Since then, the small objection has grown. From small seeds... And now I'm not alone. Prof. David K. Levine has contributed.

This is my objection. This is why I am an abolitionist.

Casey's Objection

My position
I would not be able to agree with the points on patent and copyright, since I favor the abolition of intellectual monopolies. I view the Intellectual Monopoly Clause of the US Constitution as a defect.
...

I'd recommend that the points of unity be agreeable to copyright reformers, copyright abolitionists, patent reformers, and patent abolitionists. Some might actually characterize my position as a copyright reformer instead of as a copyright abolitionist, since I believe in a right to attribution, which could be regulated much like copyright. I do believe copyright and attribution to be distinct, and so consider myself an abolitionist.
...
I urge support for Casey on this point. I've added material below explaining why patent and copyright are an intrinsically bad idea. It is possible to have principled disagreement on this point. I would urge the point of agreement to be that things have gone too far - that is, we agree that improvements need to be made. Does the party need to take a stand also against abolition? Would it not make more sense to be agnostic on this point? There are many of us who support abolition, but we support also sensible changes in existing law.
added by David K. Levine
[Professor of Economics at Washington University]
22 November 2006

Argument against intellectual monopoly
As I wrote on the fly in the IRC meeting (Logs11-07-06) in response to AdamG's question "What's your argument for no IP at all?",
I believe there is a natural right to imitate. That's the deontological reason. Then there is the utilitarian reason that it fosters cartels. Jefferson believed strongly that the general principle of forbidding monopolies was paramount. I could go on. There's also another book called Information Feudalism[1] that explains how patent and copyright are ways in which this country bullies poor, developing countries.
There are other points I would add, now that time permits.

I also believe there are natural rights to teach and quote. Practically speaking, the right to teach with free, unlimited quotation is one of the most important, essential moves we can make to really help the poor of the world.

Competition is also important to drive a social conscience in companies. Say there's a company, a big company, that caves into China's demands for censorship. People should be able to compete with that company by imitating it in all the dimensions of its business except for the censorship, if they feel strongly about that. In economics, this is called free entry[2].

In the real world, complex patent thickets have become an obstacle to free entry. Innocence, in principle, should be simple.

Finally, the ultimate goal would be to liberate philosopher Karl Popper's World 3[3][4] and keep it free. Yes, this would be a Third World Liberation Front[5] :-) This would ensure the most precious natural right we possess, the right to criticize. For those unfamiliar with Popper's idea of objective knowledge, here's a quote[6],

By "world 1" I mean what is usually called the world of physics, of rocks, and trees and physical fields of forces. By "world 2" I mean the psychological world, the world of feelings of fear and of hope, of dispositions to act, and of all kinds of subjective experiences.

By "world 3" I mean the world of the products of the human mind. Although I include works of art in world 3 and also ethical values and social institutions (and this, one might say, societies), I shall confine myself largely to the world of scientific libraries, to books, to scientific problems, and to theories, including mistaken theories.
Elsewhere, Popper writes[7],
The evolution of language and, with it, of the world 3 of the products of the human mind allows a further step: the human step. It allows us to dissociate ourselves from our own hypotheses, and to look upon them critically. While an uncritical animal may be eliminated together with its dogmatically held hypotheses, we may formulate our hypotheses, and criticize them. Let our conjectures, our theories, die in our stead! We may still learn to kill our theories instead of killing each other. If natural selection has favored the evolution of the mind for the reason indicated, then it is perhaps more than a utopian dream that one day may see the victory of the attitude (it is the rational or the scientific attitude) of eliminating our theories, our opinions, by rational criticism, instead of eliminating each other.
Perhaps the more we hinder the former, the more we foster the latter. This is one reason it's so important, so imperative to keep World 3 free.

How do people get paid?
I don't know, but as I said in the IRC meeting (Logs11-07-06), "The market has many ways." One person's imagination won't necessarily predict where the marketing people will find a way. Much of it will be by trial and error. But here I go anyway...
In a parallel universe, not far from our own, I go to iTunes and subscribe to the South Park season, much like we can now do for the Colbert Report with a Multi-Pass. Only there's a twist. If there's not enough interest, there's no new South Park season. Does this sound far-fetched? Seems pretty normal to me.
If I may add here. The bottom line is that they do get paid. The situation with patent and copyright is different, and in both cases there are a great many ways of getting paid. The problem is that there is a seemingly compelling theory of why people won't get paid - without IPR no one needs to pay because consumers will prefer to wait until it is available for free rather than pay the creator. There are two defects in this argument, one most relevant to patent, one to copyright. In the case of patent, the argument ignores the property right that exists without IPR, the property right in the first copy. Unless someone pays for the first copy, the innovator has no reason to make known the innovation. The right to go first is extremely valuable in fact. It is easy to debate the theory on either side. But the facts are pretty clear: there is no evidence that patents increase innovation, and plentiful evidence they do not. Two particularly good sources: Lerner's study [1] of 150 years of data on patents and innovation, and the careful study of the software industry by Bessen and Hunt [2] showing that patents reduced rather than increased innovation. Basically, while patents increase the return from innovation, they increase the cost due the need to acquire IPRs in order to innovate. So from a theoretical standpoint, patents can either increase or decrease innovation, depending on which effect dominates. In software it seems it is the latter; in general, it seems that it is something of a wash. It is important here to recognize that in addition to the effect on innovation patents have an impact on the usefulness of innovation. Hence, to justify patents from an economic point of view, not only must they increase innovation, they must increase innovation substantially enough to offset the other costs. The evidence is strong that they do not.

Turning to copyright, there is again no evidence that copyright serves to increase new creations. Simply looking at the time-series of copyright changes against the number of copyrights shows this pretty clearly - see for example my work with Boldrin [3]. The best comparative study is the book by Scherer Quarternotes and Banknotes documenting the fact that copyright had little or no effect on the output of classical music. The best pro-copyright argument is one of "now things are different because the electronic reproduction is so amazingly fast and cheap." This argument also is defective. First, it is the amount you can earn relative to the cost of production that matters - the same technology that makes electronic reproduction so amazingly fast and cheap also makes the cost of production amazingly cheap. Second, it ignores the potential for selling complementary items. The obvious examples are recorded music increases the demand for the creators live performances. So there is a perfectly viable model where recorded music is given away for free as advertising for the expensive concerts where the creator makes his living. The working example of this is the open-source software music, where the software is generally not only free as in freedom, but also free as in beer, with the profit coming from the sale of consulting services.
added by David K. Levine
[Professor of Economics at Washington University],
10 November 2006.

Additional Materials
  • A summary of the principles of a Free Pirate.
    [added by AdamG]

  • Madison's speech about the Bill of Rights
    [added by AdamG]

  • Against Intellectual Property
    [added by AdamG]

  • ...
  • Reds with Suits by Randy Barnett, professor of legal theory at Georgetown University. This is a review of Larry Lessig's book Future of Ideas, where Barnett praises his book, while spelling out his differences with him. He writes,
    Unfortunately, Lessig is a trimmer when it comes to IP law, not an abolitionist.

  • Property Rights and Intellectual Monopoly by Michele Boldrin, Professor of Economics at University of Minnesota, and David K. Levine, Professor of Economics at Washington University in St. Louis. They write,
    All of this brings us to what intellectual property law is really about - a reality that is simply obscured by analogies to other types of property. What intellectual property law is really about is about your right to control my copy of your idea. ...
    It is no coincidence that the battle over intellectual property is so closely tied to debate over freedom and privacy. For you to control my use of my copy of your idea necessarily requires intrusive measures.

  • Princeton University Press has made available online the introduction to Randy Barnett's book Restoring the Lost Constitution. Natural rights are the measure of the legitimacy of any constitution, and Barnett develops this founding concept beautifully. In his conclusion, Barnett writes[8],
    There are other defects as well.... Congress is given the power to grant authors and inventors limited monopolies on their writings and inventions, which restricts the property rights of others.

  • Regarding AdamG's question in the IRC meeting, here's an excellent work on how sovereignty is limited by rights[9], On the Sovereignty of the People by Benjamin Constant (1815).

  • Tom Palmer, Senior Fellow at the Cato Institute, wrote two papers that question patent and copyright law.

  • Finally, here's a quote from the economist F. A. Hayek (Nobel Prize, 1974), the man I credit with winning the commanding heights[10] in the war of ideas last century. He writes in 1947,
    The problem of the prevention of monopoly and the preservation of competition is raised much more acutely in certain other fields to which the concept of property has been extended only in recent times. I am thinking here of the extension of the concept of property to such rights and privileges as patents for inventions, copyright, trade-marks, and the like. It seems to be beyond doubt that in these fields a slavish application of the concept of property as it has been developed for material things has done a great deal to foster the growth of monopoly and that here drastic reforms may be required if competition is to be made to work. [emphasis added]
    - "Free" Enterprise and Competitive Order. In Individualism and Economic Order. University of Chicago Press. pp. 113-114.
...

Notes
  1. Information Feudalism by Peter Drahos with John Braithwaite

  2. See free entry

  3. See Objective Knowledge by Karl Popper

  4. See also World 3

  5. For those of you who didn't grow up in the Bay Area in the 60s, here's an article in Asian Week, Back in the Day by Neela Banerjee

  6. Source: Popper's Theory of Objective Knowledge by Rafe Champion, quoting Popper's essay 'Indeterminism is not enough' in Encounter, April 1973.

  7. Natural Selection and the Emergence of Mind by Karl Popper. In Evolutionary Epistemology, Rationality, and the Sociology of Knowledge, edited by Gerard Radnitzky and W. W. Bartley, III (1987) p. 152.

  8. Restoring the Lost Constitution: The Presumption of Liberty by Randy Barnett (2003) p. 355.

  9. See also Le Droit Naturel: Ses amis et ses ennemis by Patrick Simon (sorry, no English translation yet).

  10. See the PBS movie Commanding Heights

Saturday, December 16, 2006

Bob Barr Libertarian

Former Congressman Bob Barr has left the Republican Party and joined the Libertarian Party, as reported here and there.

This seems like big news.

This follows much disillusion with the Republican Party through much of the ranks of liberals (classical liberals, libertarians, liberaltarians, market liberals, whatever). There's been increasing talk of allying with elements of the Democratic Party, from both sides.

Also, there was a bit of a coup in the Libertarian Party this year. This was healthy because in the years since 1994 the LP has been clinically insane, increasingly so, due to the influence of anarchists. The real issue is not one of principles vs. pragmatism. It is one of liberty vs. anarchy.

Ed Crane, LP Candidate for US President in 1980 and founder of the Cato Institute in 1977, left the LP back in the early 80s. Cato's strategy of course has been brilliant. Indeed all parties should have an independent think tank, in case they become corrupt or gaga. That's the strategy of the Alternative Libérale in France, which has a parallel association Liberté Chérie.

Is Barr a free pirate? Well, he's strong on liberty, which is a start, but off the mark on intellectual monopoly. So, not yet.

I only hope Bob Barr's association with the Libertarian Party helps move the LP towards liberty.

And I hope the LP sets Barr straight on prohibition, the material root of terrorism.



Bonus: Here's a video of Bob Barr at the 2006 LP National Convention in Portland, Oregon, this summer.



Hat tip for video: Eric Sundwall's diary on Daily Kos


Update: Here's the text of a Dec 15 interview of Bob Barr by David Weigel of Reason Magazine.

Update 2: Here's the audio of a Dec 19 interview of Bob Barr by Charles Goyette of KFNX, Phoenix.

Wednesday, November 22, 2006

The Piracy Paradox

The "piracy paradox". Could this be the story generations tell their children regarding the dead end of intellectual monopoly, much like we tell the story of the "tragedy of the commons" now?

Here's the paper The Piracy Paradox: Innovation and Intellectual Property in Fashion Design by Kal Raustiala and Chris Sprigman. The abstract begins,

The orthodox justification for intellectual property is utilitarian. Advocates for strong IP rights argue that absent such rights copyists will free-ride on the efforts of creators and stifle innovation. This orthodox justification is logically straightforward and well reflected in the law. Yet a significant empirical anomaly exists: the global fashion industry, which produces a huge variety of creative goods without strong IP protection. Copying is rampant as the orthodox account would predict. Yet innovation and investment remain vibrant. Few commentators have considered the status of fashion design in IP law. Those who have almost uniformly criticize the current legal regime for failing to protect apparel designs. But the fashion industry itself is surprisingly quiescent about copying. Firms take steps to protect the value of trademarks, but appear to accept appropriation of designs as a fact of life. This diffidence about copying stands in striking contrast to the heated condemnation of piracy and associated legislative and litigation campaigns in other creative industries.

Why, when other major content industries have obtained increasingly powerful IP protections for their products, does fashion design remain mostly unprotected - and economically successful? The fashion industry is a puzzle for the orthodox justification for IP rights. This paper explores this puzzle. We argue that the fashion industry counter-intuitively operates within a low-IP equilibrium in which copying does not deter innovation and may actually promote it. We call this the piracy paradox.

Looks like some good Thanksgiving reading. How appropriate since the pilgrims experienced the tragedy of the commons with its concomitant famine. Perhaps some creative soul could write a play about how the Pilgrims dealt with the piracy paradox in their world of fashion, fictitiously of course.... There must be a story line there somewhere.

Hat tip: Volokh Conspiracy

Sunday, November 05, 2006

Net Neutrality and the United States Pirate Party

The US Pirate Party has proposed to adopt Net Neutrality as a core issue.

Faction or party?

If this proposal is accepted, the Pirate Party is no longer a party. It becomes a faction.

Why a faction? Because the "solution" abridges our rights to free speech. How's that? Doesn't it do quite the opposite? Doesn't it open up the internet to allow for more free speech? Isn't everyone agreed upon Net Neutrality and how important it is for the future of freedom on the internet?

Freedom of bits

There is another freedom, the freedom of bits. I may accept any bits I want. I may reject any bits I want. I may send out any bits I want. I may pass along any bits I want. This is our right as much as our right to speak freely. In fact, it is a special case of our right to free speech, our right to free discussion, our freedom to listen, and our freedom of the press. Ones and zeroes are the movable type of today's printing presses. And I may have a network which accepts those bits, rejects those bits, and passes those bits along however I choose, in principle.

Please don't misunderstand. I currently believe that an internet that fosters packet neutrality is destined for continued success. How do we handle bandwidth scarcity? I currently agree that paying for bandwidth on the client side is the best way to go. I'd avoid any ISP that would try, after promising too much bandwidth, to remedy its own mistakes by filtering packets based on whether some source had paid extra or not. It's ugly. I expect more from my ISP. That doesn't mean that I would forbid someone from following a different tack. It's important to experiment. I might change my mind. Perhaps there's a novel context down the road where charging the source of data, not the sink, for bandwidth near the sink makes sense. But if some faction comes in and says, "No, there is only one way of doing things, and you may not filter the bits coming through your network in any way," I disagree. If people want to fork the internet, let them fork it. As with an open-source effort, the possibility of forking, ideally rare, fosters a healthy dynamism. There's nothing wrong with defining criteria for a particular standard on this internet or that, but there's a world of difference between social agreement and government diktat.

Noblesse oblige

Lord Tim Berners-Lee says, "What's very important from my point of view is that there is one web," and one ring to rule them all. Will meddlesome regulation lead to capture by the big players? I fear so. My hope lies in technology, decentralization, and competition, not control.

Where a pirate party might focus its attention is on the essentials. While we are distracted, squabbling about Net Neutrality, the government is off auctioning the Wimax spectrum to the big players. It's as if a new Louisiana Purchase has been made, and instead of encouraging millions to homestead the land and thus distributing the land equitably, the government is auctioning it off to the most wealthy and most connected, in huge state-size swathes, and establishing a few lords and ladies, with all the power imbalances that that entails. Let's discuss this as citizens. Why wasn't the spectrum divided up in a more decentralized fashion, perhaps with some element of homesteading? Why did the federal government have to be the sole seller? Do they have the power to do that? Why couldn't citizens themselves have sold it in a variety of ways, some of which might have been guided by a social conscience? Now perhaps we're stuck. And we're stuck, too, with some of the cartelization that may occur because of patent cross-licensing deals. This is some of the nitty-gritty a pirate party might focus on. If Wimax technology is driving the price down to near single digits (8 to 15 dollars) to connect a home in the last mile, let's make sure that there are no artificial barriers to entry put into place, as competition is poised for action. Patent monopoly grants, patent-based cartels, and spectrum homesteading, now there're some essential issues. After all, we pirates do have a history of marauding the radio spectrum :-) One caveat - the issue of property rights in spectrum is not trivial.

A sea of rights

Popular sovereignty is limited by rights, rights so vast we can't write them all down, which is why we have the Ninth Amendment. Government powers are islands in a sea of rights. Our rights are not islands in a sea of government powers. Where is it in the Constitution that we can play the music we like, or go to bed anytime we wish? It's right there in the 9th Amendment. So is my right of free bits. So is my right to freely network. As pirates, let's sail on our sea of rights.

When I first read the Statement of Principles (v. 3.0) of the Swedish Pirate Party, I felt hopeful. When the US Pirate Party website added advocacy of Net Neutrality, I turned disheartened. If this proposal is officially adopted tomorrow, the USPP risks becoming a pirate faction.



UPDATE: I'm not the only one to suggest that pirate parties explore the issue of spectrum rights. Over at Pirate Party International, Ole Husgaard of Denmark writes,
I think we have two problems here that it makes sense for pirate parties to speak about.

The first problem is on the allocation of the radio spectrum. Back when we had a read-only culture (ie. running a radio station was expensive) this would make sense. Today a low- or medium-power radio transmitter is so inexpensive that everybody can run a radio station. But the radio spectrum is still administered to ensure that small personal radio stations are not allowed, so this keeps the read-only culture and stops the read-write culture from entering the radio spectrum. And worse: The allocation of the radio spectrum is probably being used to block certain political viewpoints in an undemocratic way.

The other problem is on the receiver side. You have probably all heard the stories about North Korea where you may own a radio receiver, but only if it is locked so that it can only receive the official national radio station. Something similar is about to happen in the west under the disguise of "copyright protection". This is part of the DRM problem, but worse as some forces want to make the sale and possession of non-DRM receiving equipment illegal. For example, see an old article on the "problems" with GNU radio (a universal software radio that can pick up any signal).

Wednesday, August 09, 2006

"Do What You Want 'Cause a Pirate is Free"

I found some fellow travellers....



For those of you who also like to "run and jump all day", here are the lyrics to this catchy song, You Are a Pirate, from LazyTown.