Consider, for example, the case of movies. Imagine a blockbuster Hollywood feature that costs $20 million to make. Once a single copy of this film is in digital form, the Internet guarantees that millions of copies could be accessed in a matter of minutes. Those “extra” copies are the physical manifestation of the positive externality that a film creates. The value or content of that film can be shared easily—insanely easily—given the magic of “the Internets.”
That ease of sharing creates risk of underproduction for such creative work: If the only way that this film can be made is for the company making it to get paid by those who watch it, or distribute it, then without some effective way to make sure that those who make copies pay for those copies, we’re not going to get many of those films made. That’s not to say we won’t get any films made. There are plenty of films that don’t exist for profit. Government propaganda is one example. Safety films that teach employees at slaughterhouses how to use dangerous equipment is another.
But if you’re like me, and want to watch Hollywood films more than government propaganda (and certainly more than safety films), you might well be keen to figure out how we can ensure that more of the former get made, even if we must suffer too much of the latter.
The answer is copyright—or, more precisely, an effective system of copyright. Copyright law gives the creator of a film (and other art forms) the legal right to control who makes copies of it, who can distribute it, who displays it publicly, and so forth. By giving the creator that power, the creator can then set the price he or she wants. If the system is effective, that price is respected—the only people who can get the film are the people who pay for it. The creator can thus get the return she wants in exchange for creating the film. We would be a poorer culture if copyright didn’t give artists and authors a return for their creativity.
I realize this just serves as an example in the context of Republic, Lost, but it’s an appallingly bad one. What risk of underproduction? What does that even mean in the context of entertainment? People love whatever culture they’re immersed in. Individuals have limited attention, massively over-saturated by a huge market. Private tax collection by copyright holders is not the only way to get films made; film making is hugely subsidized (even in the U.S., through location rent seeking), those subsidies could obtain films not subject to private enforcement of speech restrictions. Safety films and government propaganda as the examples of what would be produced without copyright? For government (in particular military/security state) propaganda – watch Hollywood. When not under the influence of offering explanations of how Hollywood blockbusters justify copyright, Lessig and the like celebrate the extraordinary creativity of non-commercial video artists of many forms, uploading countless hours of film superior to safety instruction and propaganda videos. Now presumably there would be many fewer Hollywood-style blockbusters without copyright (incidentally I think a zero was left off the cost figure in the quote, though much of that may be marketing). But a poorer culture? A somewhat different culture, certainly – one in which private censors are not empowered to damage the net, one in which monopoly knowledge rents do not concentrate cultural power, increase wealth inequality, and exclude the poorest from access to knowledge. I don’t expect Lessig to become a copyright abolitionist, and in any case think it is far more useful to advocate for commons-favoring policy than against copyright. But granting the commanding heights of culture wholesale to the copyright industry and narrowing the vision of what the commons can produce is no way to argue for any sort of reform, other than the sort the copyright industry wants.
Elsewhere in the book:
As with any speech regulation, the first question is whether there are other, less restrictive means of achieving the same legislative end. So if Congress could avoid dependence corruption by, say, funding elections publicly, that alternative would weaken any ability to justify speech restrictions to the same end. The objective should always be to achieve the legitimate objectives of the nation without restricting speech.
Apply this to the ends of entertainment production.
This seems like a good juncture to mention a related question: why not free political speech from private censorship? All political speech (by some definition, preferably all speech…but presumably speech paid for by campaign contributions) should be in the public domain. I doubt this would have any significant impact on campaigns or fundraising, but more freedom of speech, especially political speech, seems independently worthy.
A briefer and less bad mention of patents:
Those patents are necessary (so long as drug research is privately financed), but there has long been a debate about whether they get granted too easily, or whether “me-too” drugs get protection unnecessarily.
This seems to be another odd case in which an writer grants more necessity to copyright for entertainment production and less imagination for an alternative than for patents and drug development. Though I’m glad to see the parenthetical above (of course it ought be noted that public money already pays for much of the research, and buys much of the product…), I find the ordering bizarre. The piece I’ve seen similar but even more pronounced recently in is Teles’ The Scourge of Upward Redistribution!
From the “Conventional Game” and “Choosing Strategies” chapters:
These four reasons all point to a common lesson in the history of warfare: You don’t beat the British by lining up in red coats and marching on their lines, as they would on you. You beat them by adopting a strategy they’ve never met, or never played. The forces that would block this bill work well and effectively on Capitol Hill, and inside the Beltway. That is their home. And if we’re going to seize their home, and dismantle it, we need a strategy that they’re sure is going to fail. Yet we need it to win. ... Insurgent movements have to fight the war on unconventional turf. If the issue gets decided finally within institutions that depend upon things staying the same, things will stay the same. But if we can move the battle outside the Beltway, to venues where the status quo has no natural advantage, then even small forces can effect big change.
These are exactly why in the space of knowledge policy that commons-based products and commons-favoring policy are so potent, and ought be taken as the primary mechanism of knowledge policy reform. Uncorrupted direct reform of copyright and patents (the standard menu includes things like reducing term lengths and increasing ‘quality’) probably is hopeless without de-concentrating funding of political campaigns (or whatever anti-corruption measure turns out to be the essential first step). Good luck to Lessig. In the meantime, knowledge commons can slowly (far too slowly now, I admit) change the structure of the knowledge economy, create concentrated interests that benefit from commons-favoring policy, and increase policy imagination for what is possible without intellectual property.