l'economist chiede l'apertura del copyright, che rischia di soffocare
mercati e innovazione.

Copyright and the law

Rip. Mix. Burn.
Jun 30th 2005
>From The Economist print edition


Media companies are jubilant at a Supreme Court judgment, but Congress
should take them on

AS USUAL, America's Supreme Court ended its annual term this week by
delivering a clutch of controversial decisions. The one that caught the
attention of businessmen, and plenty of music lovers, was a ruling
concerning the rampant downloading of free music from the internet.

Nine elderly judges might have been forgiven for finding the entire
subject somewhat baffling. In fact, their lengthy written decisions on
the case betray an intense interest, as well as a great deal of
knowledge. Moreover, they struck what looks like the best available
balance under current laws between the claims of media firms, which are
battling massive infringements of their copyrights, and tech firms,
which are keen to keep the doors to innovation wide open (see article).

This case is only the latest episode in a long-running battle between
media and technology companies. In 1984, in a case involving Sony's
Betamax video recorder, the Supreme Court ruled that technology firms
are not liable if their users infringe copyright, provided the device is
“capable of substantial non-infringing uses”. For two decades, this
served as a green light for innovations. Apple's iTunes, the legal
offspring of illegal internet file-sharing, is among the happy results.
But lately, things have turned against the techies. In 2000, a
California court shut down Napster, a distributor of peer-to-peer (P2P)
file-sharing software. It had, the court decided, failed to stop
copyright violations (though the firm relaunched as a legal online-music
retailer).

In its ruling this week, the court unanimously took the view that two
other P2P firms, Grokster and StreamCast, could be held liable if they
encourage users to infringe copyrights. The vast majority of content
that is swapped using their software infringes copyrights, which media
firms say eats into their sales. Although the software firms argued they
should not be responsible for their customers' actions, the court found
that they could be sued if they actually encouraged the infringement,
and said that there was evidence that they had done so. On the other
hand, the court did not go as far as media firms demanded: they wanted
virtually any new technology to be vulnerable to legal action if it
allowed any copyright infringement at all.

Turning customers into pirates

Both the entertainment and technology industries have legitimate
arguments. Media firms should be able to protect their copyrights. And
without any copyright protection of digital content, they may be correct
that new high quality content is likely to dry up (along with much of
their business). Yet tech and electronics firms are also correct that
holding back new technology, merely because it interferes with media
firms' established business models, stifles innovation and is an
unjustified restraint of commerce. The music industry is only now
embracing online sales (and even experimenting itself with P2P) because
rampant piracy has demonstrated what consumers really want, and forced
these firms to respond.

The Supreme Court tried to steer a middle path between these claims, and
did a reasonable job. But the outcome of the case is nevertheless
unsatisfactory. That's not the court's fault. It was struggling to apply
a copyright law which has grown worse than anachronistic in the digital
age. That's something Congress needs to remedy.

In America, the length of copyright protection has increased enormously
over the past century, from around 28 years to as much as 95 years. The
same trend can be seen in other countries. In June Britain signalled
that it may extend its copyright term from 50 years to around 90 years.

This makes no sense. Copyright was originally intended to encourage
publication by granting publishers a temporary monopoly on works so they
could earn a return on their investment. But the internet and new
digital technologies have made the publication and distribution of works
much easier and cheaper. Publishers should therefore need fewer, not
more, property rights to protect their investment. Technology has tipped
the balance in favour of the public domain.

A first, useful step would be a drastic reduction of copyright back to
its original terms—14 years, renewable once. This should provide media
firms plenty of chance to earn profits, and consumers plenty of
opportunity to rip, mix, burn their back catalogues without breaking the
law. The Supreme Court has somewhat reluctantly clipped the wings of
copyright pirates; it is time for Congress to do the same to the
copyright incumbents.

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