Posted by David Post:
A Bad Idea from Judge Posner:
http://volokh.com/archives/archive_2009_06_28-2009_07_04.shtml#1246371942


   Over on the Becker-Posner blog, Richard Posner is again
   [1]contemplating the [bleak] future of the newspaper industry. The
   problem (as I, too, have blogged about in the recent past) is a
   serious one -- if "the newspaper" as a business model fails (because
   of competition from the free content available on the Net), who will
   invest the resources required for adequate news-gathering services in
   the first place?

     "[W]hile in many industries a reduction in output need not entail
     any reduction in the quality of the product, in newspaper it does
     entail a reduction in quality. Most of the costs of a newspaper are
     fixed costs, that is, costs invariant to output--for they are
     journalists' salaries. A newspaper with shrinking revenues can
     shrink its costs only by reducing the number of reporters,
     columnists, and editors, and when it does that quality falls, and
     therefore demand, and falling demand means falling revenues and
     therefore increased pressure to economize--by cutting the
     journalist staff some more. This vicious cycle, amplified by the
     economic downturn, may continue until very little of the newspaper
     industry is left.

   His proposal for reform, however, goes into the "Cure Worse Than
   Disease" file:

     "Expanding copyright law to bar online access to copyrighted
     materials without the copyright holder's consent, or to bar linking
     to or paraphrasing copyrighted materials without the copyright
     holder's consent, might be necessary to keep free riding on content
     financed by online newspapers from so impairing the incentive to
     create costly news-gathering operations that news services like
     Reuters and the Associated Press would become the only
     professional, nongovernmental sources of news and opinion.

   It's hard for me to summarize why this is so terrible an idea. One
   (immense) problem: (1) There is, and can be, no special copyright law
   for "newspapers," because the definitional (not to mention the First
   Amendment) problems are such that it is simply impossible to imagine
   such a thing coming into existence. ["Is the Volokh Conspiracy a
   'Newspaper' within the meaning of the Posner Proposal? Slashdot.com?
   Facebook.com? Discuss"] So what Judge Posner is proposing is,
   necessarily, an Internet-wide prohibition on linking or paraphrasing
   without the copyright holder's consent. Given (2) the fact that
   virtually all content on the Internet (at least if it displays a
   "modicum of creativity" and is not simply copied from another source
   verbatim) is protected by copyright the moment that it is placed into
   a readable file, that's it for the Internet as we know it - any act of
   linking or paraphrasing such as this one will require copryight-holder
   consent.

   So here we've gone and invented this fabulous global machine for
   linking and paraphrasing and sharing information, but nobody will be
   able to use it because we want to preserve the New York Times'
   business model. Hmmm.

   My advice to the New York Times: don't count on that. Start thinking
   about how you can make money -- large quantities of it -- in a world
   in which linking and paraphrasing are pervasive and unrestricted. It's
   not going to be easy - if it were easy, we'd all be doing it already.
   But millions upon millions of people visit your website, every day -
   because you are the New York Times, and people value the product you
   produce. There's a way, I'm pretty certain, of converting that into
   income, though I don't know what it is and as far as I can tell
   neither does anyone else at the moment. Google, though, makes a lot of
   money giving away information, and you can too. Don't waste your time
   hoping that copyright law is going to come to your assistance, for it
   will not.

References

   1. http://www.becker-posner-blog.com/archives/2009/06/the_future_of_n.html

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