Japanese Students @ UW

41
Kathy E. Gill 25 August 2008

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Lecture for Japanese students visiting Seattle

Transcript of Japanese Students @ UW

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Kathy E. Gill25 August 2008

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A 10-minute explanation of US copyright … using words from one of the largest copyright owners in the world

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What Is An Info Economy?Economics 101 Impact on Systems: Copyright

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“An economy based on the exchange of knowledge information and services rather than physical goods and services.”

Australian Gov’t, Dept. Finance and Administration, 2001.

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1963: Tadeo Umesao, Kyoto University, forecast an information industry

1973: Daniel Bell, Harvard, described a knowledge-based post-industrial economy

1981: Frederick Williams, UT Austin, said the communication revolution had arrived and expounded on the “knowledge worker”The Information Society, A Retrospective View. Dordick and Wang. 1993.

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Post-industrial society will be “organized around knowledge for the purpose of social control and the directing of innovation and change”

The transformation is industrial to service

Anticipated tension between high-tech, intellectual work and nonprofessionals

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1997: Bill Gates traced the computer from mainframe to personal to network. “[W]e have the most powerful communications medium of all time… And the information age is changing business in a fundamental way… [as well as] the way we entertain … and … [educate] ourselves.”Information Technology, Corporate Productivity and the New Economy, p 4

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Info Economy, Post-Industrial Economy, “New” Economy?

One definition: the new economy is an integration of free-market economies, globalization and information technology Information Technology, Corporate Productivity and the New Economy, p 9

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Anything that can be converted to bits, ie, digitized, is an information good Entertainment News Business Info Software

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Telecommunications, computers, software Communication: E-mail, IM, TheWeb Networks: Extranet, Intranet, Internet, LAN, WAN Software: Expert systems, Enterprise Resource

Planning, Query and Reporting, Data Mining Networks: T1, T3, Wireless Protocols: HTTP, FTP, VoIP

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Collapse of space and time

Reduction of scarcity

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Technology optimists A new society without pollution; time for

creative work; participatory democracy; perfect markets…

Technology pessimists No new society but an increase in the divide

between rich and poor; greater control over individuals; erosion of privacy…

Technology + economics +society

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Use whatever label you wish … the makeup of our economy has changed.

Information technologies and information as a good have replaced goods made of atoms and technologies resting on muscle.

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Supply & DemandMarket StructureTypes of GoodsNetwork EffectsExamples/Discussion

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Economics is the study of how people (and institutions) act in a society with limited resources (scarcity) The choices are more diverse than simply $$

- it’s also time, work, savings

Driving principle: that people optimize the “utility” (satisfaction) of goods and

services consumed - that we are rational

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Found that two brain areas known to be part of emotional processing (the limbic system) can help predict financial choicesKuhnen & Knutson (2005)

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Costly to produceInexpensive to re-produce

Economist-speak: High fixed costs, low marginal costs

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Rival Non-Rival

Excludable • Most consumer goods• Private land• Services• Single license software

•Trade secrets• Multi-license software• Patents• Subscription web sites

Non-Excludable

• Public land• Most roads• Water - rivers, lakes

• “Public Goods”• Basic research• Defense, police, firemen• Lighthouse• “Open” websites• TV (not cable!)

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The theory, courtesy the World Bank:

Assume someone produces a valuable theorem, but it cannot be kept secret -- it must be made immediately available.

Because anyone can immediately use it, there is no way for an individual to profit from creating it. So they won’t.

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Trade Secrets (Coca Cola)Patents (Amazon One-Click)Copyright

Will people create knowledge if they can’t charge for it?

WB says No. Open source movement says Yes.

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DRM iTunes

Subscriptions RealNetworks and Napster, The

Economist and the Wall Street JournalLawsuits

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Global economy is increasingly reliant on information technologies and information

Firms in this sector have a different cost structure than traditional goods/sectors like agriculture or manufacturing

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The products in this sector have characteristics of a public good -- the antithesis of a scarce, excludable good

Thus information technology is disruptive, economically and socially

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These technologies change how we interact with (digital) cultural objects.

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We are no longer merely a consumer.

We can also be a producer.

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This means it is technically easier to express ourselves in new, creative ways.

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SuperBowl CommercialsYouTube Democratic Presidential Debate

An Introduction To SumoFree Science Videos and Lectures

s

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Culture as a freely flowing current of ideas and practices runs head first into culture as intellectual property

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A Long Time! In 1709, copyright lasted 14 years Prior to 1923, content is public domain (probably)

After 1978, the life of the author + 70 years OR work-for-hire, 95 years from publication or 125 years from creation

Between 1923 and 1978 ??? … talk to a lawyer!

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"Copyright infringement" means exercising one of the copyright holder's exclusive rights without permission.

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Copyright purpose is to “promote the progress of science and the useful arts” … and the duration for exclusivity is to be “limited” … - US Constitution

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Digital technologies enable a "Tinkering culture" -- a "read write rip burn culture”

This culture is butting heads with institutions that own “IP” – it’s an economic and cultural clash

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The Inkjet Printer, from The Economist. (2002) http://emlab.berkeley.edu/users/bhhall/e124inkjetprinter.html

The Invention of Email, from Pretext Magazine (1998) http://emlab.berkeley.edu/users/bhhall/e124emailinvention.pdf

Science and Engineering Indicators (2002) National Science Board. http://www.nsf.gov/sbe/srs/seind02/start.htm

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Timothy F. Bresnahan. “The Economics of the Microsoft Case.” http://www.stanford.edu/~tbres/Microsoft/The_Economics_of_The_Microsoft_Case.pdf

Cory Doctorow. “How Copyright Turned Us Into IP Serfs.” Speech, University of North Carolina, Chapel Hill. 22 February 2007. http://www.youtube.com/watch?v=NkBX-981_es

Nicholas Economides. “The Economics of Networks,” International Journal of Industrial Organization, October (1996) http://www.stern.nyu.edu/networks/top.html

Tore Nilssen and Lars Sørgard. “TV Advertising, Programming Investments, and Product-Market Oligopoly” http://www.nhh.no/sam/res-publ/2000/dp06.pdf

Frank Zappa on Crossfire, 1986. http://www.youtube.com/watch?v=8ISil7IHzxc

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