Download - Japanese Students @ UW
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Kathy E. Gill25 August 2008
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A 10-minute explanation of US copyright … using words from one of the largest copyright owners in the world
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What Is An Info Economy?Economics 101 Impact on Systems: Copyright
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“An economy based on the exchange of knowledge information and services rather than physical goods and services.”
Australian Gov’t, Dept. Finance and Administration, 2001.
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1963: Tadeo Umesao, Kyoto University, forecast an information industry
1973: Daniel Bell, Harvard, described a knowledge-based post-industrial economy
1981: Frederick Williams, UT Austin, said the communication revolution had arrived and expounded on the “knowledge worker”The Information Society, A Retrospective View. Dordick and Wang. 1993.
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Post-industrial society will be “organized around knowledge for the purpose of social control and the directing of innovation and change”
The transformation is industrial to service
Anticipated tension between high-tech, intellectual work and nonprofessionals
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1997: Bill Gates traced the computer from mainframe to personal to network. “[W]e have the most powerful communications medium of all time… And the information age is changing business in a fundamental way… [as well as] the way we entertain … and … [educate] ourselves.”Information Technology, Corporate Productivity and the New Economy, p 4
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Info Economy, Post-Industrial Economy, “New” Economy?
One definition: the new economy is an integration of free-market economies, globalization and information technology Information Technology, Corporate Productivity and the New Economy, p 9
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Anything that can be converted to bits, ie, digitized, is an information good Entertainment News Business Info Software
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Telecommunications, computers, software Communication: E-mail, IM, TheWeb Networks: Extranet, Intranet, Internet, LAN, WAN Software: Expert systems, Enterprise Resource
Planning, Query and Reporting, Data Mining Networks: T1, T3, Wireless Protocols: HTTP, FTP, VoIP
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Collapse of space and time
Reduction of scarcity
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Technology optimists A new society without pollution; time for
creative work; participatory democracy; perfect markets…
Technology pessimists No new society but an increase in the divide
between rich and poor; greater control over individuals; erosion of privacy…
Technology + economics +society
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Use whatever label you wish … the makeup of our economy has changed.
Information technologies and information as a good have replaced goods made of atoms and technologies resting on muscle.
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Supply & DemandMarket StructureTypes of GoodsNetwork EffectsExamples/Discussion
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Economics is the study of how people (and institutions) act in a society with limited resources (scarcity) The choices are more diverse than simply $$
- it’s also time, work, savings
Driving principle: that people optimize the “utility” (satisfaction) of goods and
services consumed - that we are rational
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Found that two brain areas known to be part of emotional processing (the limbic system) can help predict financial choicesKuhnen & Knutson (2005)
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30 June 2008 COM597 - Gill
Costly to produceInexpensive to re-produce
Economist-speak: High fixed costs, low marginal costs
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Rival Non-Rival
Excludable • Most consumer goods• Private land• Services• Single license software
•Trade secrets• Multi-license software• Patents• Subscription web sites
Non-Excludable
• Public land• Most roads• Water - rivers, lakes
• “Public Goods”• Basic research• Defense, police, firemen• Lighthouse• “Open” websites• TV (not cable!)
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The theory, courtesy the World Bank:
Assume someone produces a valuable theorem, but it cannot be kept secret -- it must be made immediately available.
Because anyone can immediately use it, there is no way for an individual to profit from creating it. So they won’t.
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Trade Secrets (Coca Cola)Patents (Amazon One-Click)Copyright
Will people create knowledge if they can’t charge for it?
WB says No. Open source movement says Yes.
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DRM iTunes
Subscriptions RealNetworks and Napster, The
Economist and the Wall Street JournalLawsuits
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Global economy is increasingly reliant on information technologies and information
Firms in this sector have a different cost structure than traditional goods/sectors like agriculture or manufacturing
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The products in this sector have characteristics of a public good -- the antithesis of a scarce, excludable good
Thus information technology is disruptive, economically and socially
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These technologies change how we interact with (digital) cultural objects.
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We are no longer merely a consumer.
We can also be a producer.
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This means it is technically easier to express ourselves in new, creative ways.
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SuperBowl CommercialsYouTube Democratic Presidential Debate
An Introduction To SumoFree Science Videos and Lectures
s
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Culture as a freely flowing current of ideas and practices runs head first into culture as intellectual property
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A Long Time! In 1709, copyright lasted 14 years Prior to 1923, content is public domain (probably)
After 1978, the life of the author + 70 years OR work-for-hire, 95 years from publication or 125 years from creation
Between 1923 and 1978 ??? … talk to a lawyer!
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"Copyright infringement" means exercising one of the copyright holder's exclusive rights without permission.
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Copyright purpose is to “promote the progress of science and the useful arts” … and the duration for exclusivity is to be “limited” … - US Constitution
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Digital technologies enable a "Tinkering culture" -- a "read write rip burn culture”
This culture is butting heads with institutions that own “IP” – it’s an economic and cultural clash
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The Inkjet Printer, from The Economist. (2002) http://emlab.berkeley.edu/users/bhhall/e124inkjetprinter.html
The Invention of Email, from Pretext Magazine (1998) http://emlab.berkeley.edu/users/bhhall/e124emailinvention.pdf
Science and Engineering Indicators (2002) National Science Board. http://www.nsf.gov/sbe/srs/seind02/start.htm
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Timothy F. Bresnahan. “The Economics of the Microsoft Case.” http://www.stanford.edu/~tbres/Microsoft/The_Economics_of_The_Microsoft_Case.pdf
Cory Doctorow. “How Copyright Turned Us Into IP Serfs.” Speech, University of North Carolina, Chapel Hill. 22 February 2007. http://www.youtube.com/watch?v=NkBX-981_es
Nicholas Economides. “The Economics of Networks,” International Journal of Industrial Organization, October (1996) http://www.stern.nyu.edu/networks/top.html
Tore Nilssen and Lars Sørgard. “TV Advertising, Programming Investments, and Product-Market Oligopoly” http://www.nhh.no/sam/res-publ/2000/dp06.pdf
Frank Zappa on Crossfire, 1986. http://www.youtube.com/watch?v=8ISil7IHzxc
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