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        Wired 8.10

                        An invasion of armies can be resisted, but not 
                        an idea whose time has come. - Victor Hugo

        The Next Economy Of Ideas 

        Will copyright survive the Napster bomb? Nope, but creativity 
        will. 

        By John Perry Barlow

        The great cultural war has broken out at last. 

        Long awaited by some and a nasty surprise to others, the 
        conflict between the industrial age and the virtual age is now 
        being fought in earnest, thanks to that modestly conceived but 
        paradigm-shattering thing called Napster. 

        What's happening with global, peer-to-peer networking is not 
        altogether different from what happened when the American 
        colonists realized they were poorly served by the British Crown: 
        The colonists were obliged to cast off that power and develop an 
        economy better suited to their new environment. For settlers of 
        cyberspace, the fuse was lit last July, when Judge Marilyn Hall 
        Patel tried to shut down Napster and silence the cacophonous 
        free market of expression, which was already teeming with more 
        than 20 million directly wired music lovers. 

        Despite an appeals-court stay immediately granted the 
        Napsterians, her decree transformed an evolving economy into a 
        cause, and turned millions of politically apathetic youngsters 
        into electronic Hezbollah. Neither the best efforts of Judge 
        Patel - nor those of the Porsche-driving executives of the 
        Recording Industry Association of America, nor the sleek legal 
        defenders of existing copyright law - will alter this simple 
        fact: No law can be successfully imposed on a huge population 
        that does not morally support it and possesses easy means for 
        its invisible evasion. 

        To put it mildly, the geriatrics of the entertainment industry 
        didn't see this coming. They figured the Internet was about as 
        much of a threat to their infotainment empire as ham radio was 
        to NBC. Even after that assumption was creamed, they remained as 
        serene as sunning crocodiles. After all, they still "owned" all 
        that stuff they call "content." That it might soon become 
        possible for anyone with a PC to effortlessly reproduce their 
        "property" and distribute it to all of humanity didn't trouble 
        them at all. 

        But then along came Napster. Or, more to the point, along came 
        the real Internet, an instantaneous network that endows any 
        acne-faced kid with a distributive power equal to Time Warner's. 
        Moreover, these were kids who don't give a flying byte about the 
        existing legal battlements, and a lot of them possess decryption 
        skills sufficient to easily crack whatever lame code the 
        entertainment industry might wrap around "its" goods. 

        Practically every traditional pundit who's commented on the 
        Napster case has, at some point, furrowed a telegenic brow and 
        asked, "Is the genie out of the bottle?" A better question would 
        be, "Is there a bottle?" No, there isn't. 

        Which is not to say the industry won't keep trying to create 
        one. In addition to ludicrously misguided (and probably 
        unconstitutional) edicts like the Digital Millennium Copyright 
        Act, entertainment execs are placing great faith in new 
        cryptographic solutions. But before they waste a lot of time on 
        their latest algorithmic vessels, they might consider the ones 
        they've designed so far. These include such systems as the pay-
        per-view videodisc format Divx, the Secure Digital Music 
        Initiative, and CSS - the DVD encryption system, which has 
        sparked its own legal hostilities on the Eastern front, starting 
        with the New York courtroom of Judge Lewis Kaplan. 

        Here's the present score: Divx was stillborn. SDMI will probably 
        never be born owing to the wrangling of its corporate parents. 
        And DeCSS (the DVD decryptor) is off and running, even though 
        the Motion Picture Association of America has prevailed in its 
        lawsuit aimed at stopping Web sites from posting - or even 
        linking to - the disc-cracking code. While that decision is 
        appealed, DeCSS will keep spreading: As the Electronic Frontier 
        Foundation was defending three e-distributors inside Kaplan's 
        court last summer, nose-ringed kids outside were selling T-
        shirts with the program silk-screened on the back. 

        The last time technical copy protection was widely attempted -
        remember when most software was copy-protected? - it failed in 
        the marketplace, and failed miserably. Earlier attempts to ban 
        media-reproduction technologies have also failed. Even though 
        entertainment execs are exceptionally slow learners, they will 
        eventually realize what they should have understood long ago: 
        The free proliferation of expression does not decrease its 
        commercial value. Free access increases it, and should be 
        encouraged rather than stymied. 

        The war is on, all right, but to my mind it's over. The future 
        will win; there will be no property in cyberspace. Behold 
        DotCommunism. (And dig it, ye talented, since it will enrich 
        you.) It's a pity that entertainment moguls are too wedged in to 
        the past to recognize this, because now they are requiring us to 
        fight a war anyway. So we'll fatten lawyers with a fortune that 
        could be spent fostering and distributing creativity. And we may 
        be forced to watch a few pointless public executions - Shawn 
        Fanning's cross awaits - when we could be employing such 
        condemned genius in the service of a greater good. 

        Of course, it's one thing to win a revolution, and quite another 
        to govern its consequences. How, in the absence of laws that 
        turn thoughts into things, will we be assured payment for the 
        work we do with our minds? Must the creatively talented start 
        looking for day jobs? 

        Nope. Most white-collar jobs already consist of mind work. The 
        vast majority of us live by our wits now, producing "verbs" -
        that is, ideas - rather than "nouns" like automobiles or 
        toasters. Doctors, architects, executives, consultants, 
        receptionists, televangelists, and lawyers all manage to survive 
        economically without "owning" their cognition. 

        I take further comfort in the fact that the human species 
        managed to produce pretty decent creative work during the 5,000 
        years that preceded 1710, when the Statute of Anne, the world's 
        first modern copyright law, passed the British parliament. 
        Sophocles, Dante, da Vinci, Botticelli, Michelangelo, 
        Shakespeare, Newton, Cervantes, Bach - all found reasons to get 
        out of bed in the morning without expecting to own the works 
        they created. 

        Even during the heyday of copyright, we got some pretty useful 
        stuff out of Benoit Mandelbrot, Vint Cerf, Tim Berners-Lee, Marc 
        Andreessen, and Linus Torvalds, none of whom did their world-
        morphing work with royalties in mind. And then there are all 
        those great musicians of the last 50 years who went on making 
        music even after they discovered that the record companies got 
        to keep all the money. 

        Nor can I resist trotting out, one last time, the horse I rode 
        back in 1994, when I explored these issues in a Wired essay 
        called "The Economy of Ideas." (See Wired 2.03, page 84.) The 
        Grateful Dead, for whom I once wrote songs, learned by accident 
        that if we let fans tape concerts and freely reproduce those 
        tapes - "stealing" our intellectual "property" just like those 
        heinous Napsterians - the tapes would become a marketing virus 
        that would spawn enough Deadheads to fill any stadium in 
        America. Even though Deadheads had free recordings that often 
        were more entertaining than the band's commercial albums, fans 
        still went out and bought records in such quantity that most of 
        them went platinum. 

        My opponents always dismiss this example as a special case. But 
        it's not. Here are a couple of others closer to Hollywood. Jack 
        Valenti, head of the MPAA and leader of the fight against DeCSS, 
        fought to keep VCRs out of America for half a dozen years, 
        convinced they would kill the film industry. Eventually that 
        wall came down. What followed reversed his expectations (not 
        that he seems to have learned from the experience). Despite the 
        ubiquity of VCRs, more people go to the movies than ever, and 
        videocassette rentals and sales account for more than half of 
        Hollywood's revenues. 

        The RIAA is unalterably convinced that the easy availability of 
        freely downloadable commercial songs will bring on the 
        apocalypse, and yet, during the two years since MP3 music began 
        flooding the Net, CD sales have risen by 20 percent. 

        Finally, after giving up on copy protection, the software 
        industry expected that widespread piracy would surely occur. And 
        it did. Even so, the software industry is booming. Why? Because 
        the more a program is pirated, the more likely it is to become a 
        standard. 

        All these examples point to the same conclusion: Noncommercial 
        distribution of information increases the sale of commercial 
        information. Abundance breeds abundance. 

        This is precisely contrary to what happens in a physical 
        economy. When you're selling nouns, there is an undeniable 
        relationship between scarcity and value. But in an economy of 
        verbs, the inverse applies. There is a relationship between 
        familiarity and value. For ideas, fame is fortune. And nothing 
        makes you famous faster than an audience willing to distribute 
        your work for free. 

        All the same, there remains a general and passionate belief 
        that, in the absence of copyright law, artists and other 
        creative people will no longer be compensated. I'm forever 
        accused of being an antimaterialistic hippie who thinks we 
        should all create for the Greater Good of Mankind and lead lives 
        of ascetic service. If only I were so noble. While I do believe 
        that most genuine artists are motivated primarily by the joys of 
        creation, I also believe we will be more productive if we don't 
        have to work a second job to support our art habit. Think of how 
        many more poems Wallace Stevens could have written if he hadn't 
        been obliged to run an insurance company to support his "hobby." 

        Following the death of copyright, I believe our interests will 
        be assured by the following practical values: relationship, 
        convenience, interactivity, service, and ethics. 

        Before I explain further, let me state a creed: Art is a 
        service, not a product. Created beauty is a relationship, and a 
        relationship with the Holy at that. Reducing such work to 
        "content" is like praying in swear words. End of sermon. Back to 
        business. 

        The economic model that supported most of the ancient masters 
        was patronage, whether endowed by a wealthy individual, a 
        religious institution, a university, a corporation, or - through 
        the instrument of governmental support - by society as a whole. 

        Patronage is both a relationship and a service. It is a 
        relationship that supported genius during the Renaissance and 
        supports it today. Da Vinci, Michelangelo, and Botticelli all 
        shared the support of both the Medicis and, through Pope Leo X, 
        the Catholic church. Bach had a series of patrons, most notably 
        the Duke of Weimar. I could go on, but I can already hear you 
        saying, "Surely this fool doesn't expect the return of 
        patronage." 

        In fact, patronage never went away. It just changed its 
        appearance. Marc Andreessen was a beneficiary of the "patronage" 
        of the National Center for Supercomputer Applications when he 
        created Mosaic; CERN was a patron to Tim Berners-Lee when he 
        created the World Wide Web. Darpa was Vint Cerf's benefactor; 
        IBM was Benoit Mandelbrot's. 

        "Aha!" you say, "but IBM is a corporation. It profited from the 
        intellectual property Mandelbrot created." Maybe, but so did the 
        rest of us. While IBM would patent air and water if it could, I 
        don't believe it ever attempted to patent fractal geometry. 

        Relationship, along with service, is at the heart of what 
        supports all sorts of other modern, though more anonymous, 
        "knowledge workers." Doctors are economically protected by a 
        relationship with their patients, architects with their clients, 
        executives with their stockholders. In general, if you 
        substitute "relationship" for "property," you begin to 
        understand why a digitized information economy can work fine in 
        the absence of enforceable property law. Cyberspace is unreal 
        estate. Relationships are its geology. 

        Convenience is another important factor in the future 
        compensation of creation. The reason video didn't kill the movie 
        star is that it's simply more convenient to rent a video than to 
        copy one. Software is easy to copy, of course, but software 
        piracy hasn't impoverished Bill Gates. Why? Because in the long 
        run it's more convenient to enter into a relationship with 
        Microsoft if you hope to use its products in an ongoing way. 
        It's certainly easier to get technical support if you have a 
        real serial number when you call. And that serial number is not 
        a thing. It's a contract. It is the symbol of a relationship. 

        Think of how the emerging digital conveniences will empower 
        musicians, photographers, filmmakers, and writers when you can 
        click on an icon, upload a cyber-dime into their accounts, and 
        download their latest songs, images, films, or chapters - all 
        without the barbaric inconvenience currently imposed by the 
        entertainment industry. 

        Interactivity is also central to the future of creation. 
        Performance is a form of interaction. The reason Deadheads went 
        to concerts instead of just listening to free tapes was that 
        they wanted to interact with the band in meatspace. The more 
        people knew what the concerts sounded like, the more they wanted 
        to be there. 

        I enjoy a similar benefit in my current incarnation. I'm paid 
        reasonably well to write, despite the fact that I put most of my 
        work on the Net before it can be published. But I'm paid a lot 
        more to speak, and still more to consult, since my real value 
        lies in something that can't be stolen from me - my point of 
        view. A unique and passionate viewpoint is more valuable in a 
        conversation than the one-way broadcast of words. And the more 
        my words self-replicate on the Net, the more I can charge for 
        symmetrical interaction. 

        Finally, there is the role of ethics. (I can hear you snickering 
        already.) But hey, people actually do feel inclined to reward 
        creative value if it's not too inconvenient to do so. As 
        Courtney Love said recently, in a brilliant blast at the music 
        industry: "I'm a waiter. I live on tips." She's right. People 
        want to pay her because they like her work. Indeed, actual 
        waitpeople get by even though the people they serve are under no 
        legal obligation to tip them. Customers tip because it's the 
        right thing to do. 

        I believe that, in the practical absence of law, ethics are 
        going to make a major comeback on the Net. In an environment of 
        dense connection, where much of what we do and say is recorded, 
        preserved, and easily discovered, ethical behavior becomes less 
        a matter of self-imposed virtue and more a matter of horizontal 
        social pressure. 

        Besides, the more connected we become, the more obvious it is 
        that we're all in this together. If I don't pay for the light of 
        your creation, it goes out and the place gets dimmer. If no one 
        pays, we're all in the dark. On the Net, what goes around comes 
        around. What has been an ideal becomes a sensible business 
        practice. 

        Think of the Net as an ecosystem. It is a great rain forest of 
        life-forms called ideas, which, like organisms - those patterns 
        of self-reproducing, evolving, adaptive information that express 
        themselves in skeins of carbon - require other organisms to 
        exist. Imagine the challenge of trying to write a song if you'd 
        never heard one. 

        As in biology, what has lived before becomes the compost for 
        what will live next. Moreover, when you buy - or, for that 
        matter, "steal" - an idea that first took form in my head, it 
        remains where it grew and you in no way lessen its value by 
        sharing it. On the contrary, my idea becomes more valuable, 
        since in the informational space between your interpretation of 
        it and mine, new species can grow. The more such spaces exist, 
        the more fertile is the larger ecology of mind. 

        I can also imagine the great electronic nervous system producing 
        entirely new models of creative worth where value resides not in 
        the artifact, which is static and dead, but in the real art -
        the living process that brought it to life. I would have given a 
        lot to be present as, say, the Beatles grew their songs. I'd 
        have given even more to have participated. Part of the reason 
        Deadheads were so obsessed with live concerts was that they did 
        participate in some weird, mysterious way. They were allowed the 
        intimacy of seeing the larval beginnings of a song flop out 
        onstage, wet and ugly, and they could help nurture its growth. 

        In the future, instead of bottles of dead "content," I imagine 
        electronically defined venues, where minds residing in bodies 
        scattered all over the planet are admitted, either by 
        subscription or a ticket at a time, into the real-time presence 
        of the creative act. 

        I imagine actual storytelling making a comeback. Storytelling, 
        unlike the one-way, asymmetrical thing that goes by that name in 
        Hollywood, is highly participatory. Instead of "the viewer" 
        sitting there, mouth slack with one hand on a Bud while the TV 
        blows poisonous electronics at him, I imagine people actually 
        engaged in the process, and quite willing to pay for it. 

        This doesn't require much imagination, since it's what a good 
        public speaker encourages now. The best of them don't talk at 
        the audience, but with them, creating a sanctuary of permission 
        where something is actually happening. Right now this has to 
        happen in meatspace, but the immense popularity of chat rooms 
        among the young natives of cyberspace presages richer electronic 
        zones where all the senses are engaged. People will pay to be in 
        those places - and people who are good at making them exciting 
        will be paid a lot for their conversational skills. 

        I imagine new forms of cinema growing in these places, where 
        people throw new stuff into the video stew. The ones who are 
        good enough will be paid by the rest of us to shoot, produce, 
        organize, and edit. 

        People will also pay to get a first crack at the fresh stuff, as 
        Stephen King is proving by serializing novels on the Web. 
        Charles Dickens proved the same thing long ago with his economic 
        harnessing of serialization. Though Dickens was irritated that 
        the Americans ignored his British copyright, he adapted and 
        devised a way to get paid anyway, by doing public readings of 
        his works in the US. The artists and writers of the future will 
        adapt to practical possibility. Many have already done so. They 
        are, after all, creative people. 

        It's captivating to think about how much more freedom there will 
        be for the truly creative when the truly cynical have been dealt 
        out of the game. Once we have all given up regarding our ideas 
        as a form of property, the entertainment industry will no longer 
        have anything to steal from us. Meet the new boss: no boss. 

        We can enter into a convenient and interactive relationship with 
        audiences, who, being human, will be far more ethically inclined 
        to pay us than the moguls ever were. What could be a stronger 
        incentive to create than that? 

        We've won the revolution. It's all over but the litigation. 
        While that drags on, it's time to start building the new 
        economic models that will replace what came before. We don't 
        know exactly what they'll look like, but we do know that we have 
        a profound responsibility to be better ancestors: What we do now 
        will likely determine the productivity and freedom of 20 
        generations of artists yet unborn. So it's time to stop 
        speculating about when the new economy of ideas will arrive. 
        It's here. Now comes the hard part, which also happens to be the 
        fun part: making it work. 

        http://www.wired.com/wired/archive/8.10/download.html


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