While I think the argument over whether or not IP law fosters or inhibits innovation is a worthy one, I don't think it matters in the long run.
Individuals are taking over production and sharing of Intellectual Property, instead of just sitting around consuming it, now that the tools for it exist. Sooner or later, these legacy markets won't be able to compete with what individuals are doing for themselves in areas like music, open source software, news gathering and delivery, just to name a few.
IP is indeed DOA for the 21st century, but we don't have to change any laws to kill it. It can't compete with our urge to create and share for free.
The efficiency, in the case of Intellectual Property, is passed directly to the consumer. Believe me, the RIAA *hates* the new efficiency of iTunes. Newspapers *hate* the new efficiency of craigslist, blogs, twitter, and digital distribution.
We're the ones pocketing the gains, not the companies. Their business models are crumbling, and they're having to cut real jobs to stay afloat. The question is, are we pocketing enough gains to make up for the requisite losses in jobs.
One of the points that led me to write the article I did was that there doesn't need to be any change in IP law, or any violation of it, to have intellectual property move towards free (or at least, very, very cheap).
I'm not arguing that it this is a good or a bad thing, but something we will likely have to contend with, just as the music industry and newspapers are trying to do already.
Additionally, when I hear all the heralding of a new "knowledge economy" that we should be striving for, I worry that we're abandoning or chasing away the industries that will never approach "free" - industries that rely on atoms, not bits.
If you're right and "IP is America's bread and butter", and I'm right, and "IP is heading towards a commune instead of an economy", we're in for a very rough ride.
Thanks for the link and the kind words. You're absolutely right that I didn't focus on the *opportunity* side in that post, but I definitely see it as being there. "Deflation" is a value-neutral concept, and it has it's advantages, particularly in this economy.
Let me clarify a bit. I believe that this efficiency will make the economic markets they affect "shrink" in terms of economy and capital. It doesn't mean that the number of variation of the products available will shrink, just the capital involved.
Innovative deflation lets $100 Million at Craigslist undercut $100 Billion dollars that used to service the same thing in newsprint. We're getting better and more varied services and products (especially in intellectual property) for much cheaper, but it's also costing lots and lots of jobs without replacing them, taking money out of the economy.
My big fear is that a "knowledge economy" is being touted as our obvious salvation, but much of what a knowledge economy brings in with it may be prove terribly difficult to monetize in the long run, at the same time that this efficiency is driving out employment in traditional markets without replacing it.
Couldn't we take advantage of this deflation to help cushion the blow of falling wages? How much of our income is dedicated to intellectual property, and its derived products? If wages decrease at the same time as cost-of-living decreases, are we really that bad off? Deflation moves in both directions, as it were.
Hours will be cut. Wages will fall. So too will the cost of living fall as these efficiencies are passed on the consumer. The balance between these two forces will be the key to determining how painful the transition is.
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Re: Not surprising (as Eric Reasons)
While I think the argument over whether or not IP law fosters or inhibits innovation is a worthy one, I don't think it matters in the long run.
Individuals are taking over production and sharing of Intellectual Property, instead of just sitting around consuming it, now that the tools for it exist. Sooner or later, these legacy markets won't be able to compete with what individuals are doing for themselves in areas like music, open source software, news gathering and delivery, just to name a few.
IP is indeed DOA for the 21st century, but we don't have to change any laws to kill it. It can't compete with our urge to create and share for free.
And you don't have to look to China for your smoking gun.
Re: Efficiency (as Eric Reasons)
Lance-
The efficiency, in the case of Intellectual Property, is passed directly to the consumer. Believe me, the RIAA *hates* the new efficiency of iTunes. Newspapers *hate* the new efficiency of craigslist, blogs, twitter, and digital distribution.
We're the ones pocketing the gains, not the companies. Their business models are crumbling, and they're having to cut real jobs to stay afloat. The question is, are we pocketing enough gains to make up for the requisite losses in jobs.
Re: (as Eric Reasons)
Ceno-
One of the points that led me to write the article I did was that there doesn't need to be any change in IP law, or any violation of it, to have intellectual property move towards free (or at least, very, very cheap).
I'm not arguing that it this is a good or a bad thing, but something we will likely have to contend with, just as the music industry and newspapers are trying to do already.
Additionally, when I hear all the heralding of a new "knowledge economy" that we should be striving for, I worry that we're abandoning or chasing away the industries that will never approach "free" - industries that rely on atoms, not bits.
If you're right and "IP is America's bread and butter", and I'm right, and "IP is heading towards a commune instead of an economy", we're in for a very rough ride.
The glass is twice the size it needs to be... (as Eric Reasons)
Mike-
Thanks for the link and the kind words. You're absolutely right that I didn't focus on the *opportunity* side in that post, but I definitely see it as being there. "Deflation" is a value-neutral concept, and it has it's advantages, particularly in this economy.
Let me clarify a bit. I believe that this efficiency will make the economic markets they affect "shrink" in terms of economy and capital. It doesn't mean that the number of variation of the products available will shrink, just the capital involved.
Innovative deflation lets $100 Million at Craigslist undercut $100 Billion dollars that used to service the same thing in newsprint. We're getting better and more varied services and products (especially in intellectual property) for much cheaper, but it's also costing lots and lots of jobs without replacing them, taking money out of the economy.
My big fear is that a "knowledge economy" is being touted as our obvious salvation, but much of what a knowledge economy brings in with it may be prove terribly difficult to monetize in the long run, at the same time that this efficiency is driving out employment in traditional markets without replacing it.
As I wrote in a related post:
Thanks again for the link and the discussion.