Dear Jim Ray,

>Steal This Essay 2: Why Encryption Doesn't Help
> -----------------------------------------------
> by Dan Kohn
> Why is all content becoming a public good? 

It isn't, because most content providers are smarter than Dan Kohn.

Suppose I have content that I seek to exclude from public scrutiny
until I am paid for it?  Encryption helps me in this area, big time, if
I want to store it where nobody else can see it, even if they hack my
system.

So, how do I get paid?  If I'm a stupid mainstream media jerk, or
dependent on their industry, in all likelihood, I don't.  Which, by and
large, I don't see as a downside.

Suppose, though, just for a moment, that I'm a highly talented
singer-songwriter-musician with a following.  We'll touch on how I
get a following here in a minute.  I have written, sung, and played a
brand new song, in my top-secret studio where nobody but me has
the key.  Soundproof, enabled with high tech stuff to record and
encrypt automagically.  I have my content product, and now I seek
to make two million dollars from it, because while greedy, I'm not
insanely greedy.

I alert my fans that I have a new item.  Perhaps I give them a five
second sample of what it might be like, perhaps not.  I ask my fans
to subscribe this new product.  They pay me $1 per person for the
content until I have obtained $2 million.  So, I need to have 2 million
fans for this business model to work.  If I have a following, as many
of the currently popular artists do, I should have no trouble getting
ten million subscribers.  As soon as the period for subscriptions ends,
or as soon as the goal is reached, whichever I prefer, the product is
released.  My fans get what they want, each receiving a password to
obtain the product from a web server, or each receiving the product
itself via e-mail or what have you.  I get what I want, which is to be 
paid for my content.

Now, that works great if I'm already fabulously popular.  It works less
well if I'm only regionally popular.  So, maybe each product I release is
only worth $50,000.  That still pays plenty of bills, if I can produce a
new product each month.  If I'm less productive, it produces less money,
of course.

At some point, though, I have zero popularity, and seek to break into the
field.  Easily done.  I release product for free, I play gigs for next to
nothing (which is pretty popular with musicians already), and I showcase
my talents wherever.  Once I have a following, then new releases are
for sale.  Perhaps I keep back one or two "best" items and from the very
start offer these on the same basis.

Now, what about copying?  Copying becomes irrelevant.  I don't release
any copies until I've been paid what I judge to be a fair price.  If I don't
get enough subscribers, I have my choice: I don't release, and continue
to wait for subscriptions to come in, or I release at a lower return for
this product, in the expectation that more fans will be generated as a
result of more of my product being available to interested users.

This process would seem to be even easier for software developers
and prose writers and other content producers.  Some musicians
have proven unsatisfied with the quality of digital sound.  And coding
or writing in private doesn't require a soundproof room.  I suppose
van Eck phreaking means that a Farraday cage is useful for real
privacy, but big deal.

Content isn't a public good until the owner says it is.  Sure, the whole
idea of copyright or patent holding becomes somewhat silly, but these
are state-sponsored "protections."  And we've seen how little use the
state is in the protection of private property; it isn't set up to protect, only
to steal.

For a little extra effort, you can see where trade secrecy protects the
inventor as well as the content producer.

Why doesn't Dan Kohn see it?  I dunno.  Maybe he's just some sort of
goofy socialist who hopes to see content providers starve.  Still.

Regards,

Jim
  http://www.GoldBarter.com/ ==> a free market is your
  best friend.  It could save your life.


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