Here we'll explore the nexus of legal rulings, Capitol Hill
policy-making, technical standards development, and technological
innovation that creates -- and will recreate -- the networked world as we
know it. Among the topics we'll touch on: intellectual property
conflicts, technical architecture and innovation, the evolution of
copyright, private vs. public interests in Net policy-making, lobbying
and the law, and more.
Disclaimer: the opinions expressed in this weblog are those of the authors and not of their respective institutions.
Hasbro is, of course, the giant toy-making conglomerate and Shapeways is advertising itself as "fast and affordable" 3D printing - a marketplace for people to make, buy, and sell 3D-printed products that range from jewelry to complex devices to, well, toys.
Last month the two companies put together a joint-venture site, superfanart.com which they are trying to position as the "app store" of 3D fan art/toy making. The site has a submission and approval process (like most app stores) for 3D printed designs and has a revenue-split model, again like most app stores. According to the article it's about 10% to Hasbro for licensing, about 20% to the artist, and about 60% to Shapeways for costs of materials and manufacturing. The initial launch included the "My Little Ponies" intellectual property line; now they've added "Transformers"-inspired fan material.
That's a much lower percentage than you get for a pure software app, but in my mind the actual number is less important than the concept. Someone else might come along with a better deal to lure artists to its site, and Hasbro could just as easily license to multiple manufacturers. Some might offer the company a higher percentage for a limited or exclusive license. Et cetera - I'm sure you can think of other interesting permutations.
The other interesting thing is that this appears to be a true effort by a big-name holder of properties to embrace the fan community. Hasbro controls a number of things that people will be wanting to make fan art from and if there are legitimate ways to do that, it's a far better situation than corporations screaming "piracy" and suing everyone in sight.
An interesting note in a 7th Circuit case, M. Arthur Gensler, Jr. & Assocs., Inc. v. Strabala shows how judges are continuing to apply the standards of physical property to intellectual property. In this case a dispute arose over the authorship (if you will) of a building. The Seventh ruled that "design" is a form of creation of intellectual property creation equivalent to building or selling physical good. As such, it's subject to various regimes of ownership, trademark protection, and so on.
The rest of Scalzi's entry dissects Amazon't continuing use of bad/biased math, not to mention hyperbole in its arguments. He argues that this is another ham-fisted move by Amazon which has been remarkably inept at the PR side of this dispute. They may be trying to fight too many battles at once, as you can see from the news headlines: "Dispute Erupts Between Amazon and Disney" for example.
Our friends at ISRI pointed out to me that some mobile companies are now promoting the idea of a "kill switch" that would be under the control of someone other than the user. Such kill switches are supposedly for consumer protection - disabling stolen devices - but end up being a way for manufacturers, phone companies, etc. to keep devices off the second-hand market. Kill switches per se are not bad - they just need to be under the control of the person who purchases the device so they can be legitimately disabled. Like other such technological locks, kill switches are probably under the DMCA umbrella that prevents legitimate disabling or circumvention.
Amazon appears to be making a numerically based claim, in two forms. First, it is arguing for a 35 (author) / 35 (publisher) / 30 (Amazon) revenue split. It points out that 30% is what Apple and its co-conspirators wanted Amazon to take. Second, it argues that its data show a price point of USD 9.99 is better for an e-book in that it leads to more copies being sold. The number of additional copies sold is high enough to more than make up for the revenue lost on each individual sale.
This is pretty transparently an effort to recruit authors to Amazon's side. Big-house authors generally get around 20 or 25% on e-book sales and Amazon would much rather have authors complaining to Hachette about "why am I not getting 35%" than complaining to readers that Amazon is making it hard to get the authors' books.
Amazon’s assumptions don’t include, for example, that publishers and authors might have a legitimate reason for not wanting the gulf between eBook and physical hardcover pricing to be so large that brick and mortar retailers suffer, narrowing the number of venues into which books can sell. Killing off Amazon’s competitors is good for Amazon; there’s rather less of an argument that it’s good for anyone else.
Furthermore, their math about selling more copies might be true for Amazon itself, but there's no evidence that it holds up for any other retailer. Making Amazon prices so cheap that other outlets can't afford to match them is, again, good for Amazon but not necessarily good for anyone else, including those authors Amazon is trying so hard to influence.
My favorite design podcast, 99% Invisible, did its episode this week on "Duplitecture". That starts out being about the vast cities in China that are conscious re-creations of architecture from elsewhere in the world, and delves into the long history. For us Americans it's worth remembering that many of our most famous building designs (the White House, Jefferson's State House for Virginia) were themselves copies of older building ideas. The podcast's host, Roman Mars, comes out strongly in favor of "mindful iteration" as a valuable form of copy-inventiveness.
The piece estimates that "almost half the drugs approved in the United States from 1981 to 2010 would have been rejected under these guidelines". While I am still concerned about overpriced medicines and their consequences, it's still likely that in the absence of some form of protection these medicines would not have been developed. It's possible that the Patent Office will implement less draconian interpretations, but even so I cannot see an easy way out of this thicket.
Our friends at ISRI sent a note saying that Congress had gotten its act together to pass the bulkily named "Unlocking Consumer Choice and Wireless Competition Act" which includes provisions allowing companies and individuals who recycle and refurbish electronics to unlock them as part of their business.