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6 September 2012 6 September 2012 Trust in the digital economy: Aberdeen Trust in the digital economy: Aberdeen University University 1 Trust in the Digital Trust in the Digital Economy Economy Regulation and trust in Regulation and trust in the digital economy: an the digital economy: an uneasy relationship uneasy relationship Ray Corrigan Ray Corrigan Open University Open University

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Regulation and trust in the digital economy: an uneasy relationship Trust in Digital Economy Workshop Aberdeen 6 September 2012

TRANSCRIPT

Page 1: TiDE Aberdeen D2

6 September 20126 September 2012 Trust in the digital economy: Aberdeen UniversityTrust in the digital economy: Aberdeen University 11

Trust in the Digital EconomyTrust in the Digital Economy

Regulation and trust in the digital Regulation and trust in the digital economy: an uneasy relationshipeconomy: an uneasy relationship

Ray CorriganRay Corrigan

Open UniversityOpen University

Page 2: TiDE Aberdeen D2

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TheoryTheory

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EconomicEconomic

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BehaviouralBehavioural

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ill-informed regulation DEA, CDBill-informed regulation DEA, CDB

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66

StakeholdersStakeholders

Page 7: TiDE Aberdeen D2

77

StakeholdersStakeholders

Public(Citizen consumers)

Innovators/Creators Agents*

* Business, public services, government (& civil society)

Page 8: TiDE Aberdeen D2

88

TrustTrust

Page 9: TiDE Aberdeen D2

99

All 3 need to thriveAll 3 need to thrive

Page 10: TiDE Aberdeen D2

1010

BalanceBalance

Page 11: TiDE Aberdeen D2

1111

Invisible handInvisible hand

Page 12: TiDE Aberdeen D2

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Enlightened governanceEnlightened governance

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Complex ecologyComplex ecology

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Net file sharing v music, online news v Net file sharing v music, online news v newspapers, Amazon v bookshopsnewspapers, Amazon v bookshops

>50 Android patent cases globally>50 Android patent cases globally

Samsung v AppleSamsung v Apple

Government v everybodyGovernment v everybody

Page 15: TiDE Aberdeen D2

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Behavioural forces in digital economyBehavioural forces in digital economy

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Social normsSocial norms

MarketMarket

Built environmentBuilt environment

LawLaw

Page 17: TiDE Aberdeen D2

1717

Page 18: TiDE Aberdeen D2

1818

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1919

Digital Economy Act (DEA)Digital Economy Act (DEA)

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2020

S3-18: ISP copyright policeS3-18: ISP copyright policenotify subscribers of reported infringementsnotify subscribers of reported infringements

provide infringement lists to copyright ownersprovide infringement lists to copyright owners

Obligations to limit internet accessObligations to limit internet access

Website blocking provisions (govt to abolish; Ofcom said unworkable)Website blocking provisions (govt to abolish; Ofcom said unworkable)

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2121

Z depends on i) term ii) scope iii) penalties iv) case law v)enforcement

Strength of copyright (Z)

Cre

ativ

e A

ctiv

ity

Zero ZC

(a) Creators

Innovators/Creators

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2222

Societal welfare = (weighted) sum of consumers, creators & agentsSocietal welfare = (weighted) sum of consumers, creators & agents

Strength of copyright (Z)

To

tal c

ons

um

er w

elfa

re

Zero Zconsumer

(b) Consumers

Consumers

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2323

Music, film, software, media companies and publishersMusic, film, software, media companies and publishers

Strength of copyright (Z)

Ag

ent p

rofit

abi

lity

Zero ZA

(c) Agents

Za > Zc

Agents of creators

Page 24: TiDE Aberdeen D2

2424

Strength of copyright (Z)

Cre

ativ

e A

ctiv

ity

Zero ZC

Strength of copyright (Z)

Tot

al s

ocie

tal w

elfa

re

Zero ZS

Strength of copyright (Z)

Age

nt p

rofit

abili

ty

Zero ZA

(a) Creators

(b) Society as a whole

(c) Agents

PossiblyZa > Zc > Zconsumers

Lined up

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DEA Winners – some agents & creatorsDEA Winners – some agents & creators

DEA Losers - agents & creators & public & trustDEA Losers - agents & creators & public & trust

PublicCreators

Agents

Page 26: TiDE Aberdeen D2

2727

Communications Data Bill (CDB)Communications Data Bill (CDB)

Page 27: TiDE Aberdeen D2

2828

S1 Blank cheque Secretary of StateS1 Blank cheque Secretary of StatePower to ensure or facilitate availability of data

S9 S9 Authorisations for obtaining data by police and other relevant public authorities

Page 28: TiDE Aberdeen D2

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ISPs DEA to CDB ISPs DEA to CDB copyright police to surveillance agents of statecopyright police to surveillance agents of state

Page 29: TiDE Aberdeen D2

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Mass surveillance undermines trustMass surveillance undermines trustAlso doesn’t workAlso doesn’t work

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CDB Winners – surveillance tech suppliersCDB Winners – surveillance tech suppliers

CDB Losers - agents & creators & public & trustCDB Losers - agents & creators & public & trust

PublicCreators

Agents

Page 31: TiDE Aberdeen D2

3232

Governments don’t understand technologyGovernments don’t understand technology

Computers/Net Computers/Net Magic solution orMagic solution or

Terrifying problemTerrifying problem

Net = TV on steroids / online shopping centreNet = TV on steroids / online shopping centre

Page 32: TiDE Aberdeen D2

3333

Government ignorance bad for:Government ignorance bad for:Innovators/creatorsInnovators/creators

AgentsAgents

Citizen consumersCitizen consumers

TrustTrust

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Public Public Hugely forgiving of / blind to agents’ data gatheringHugely forgiving of / blind to agents’ data gathering

(Convenience beats everything)(Convenience beats everything)

But data pollution = environmental disaster of But data pollution = environmental disaster of digital economydigital economy

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Trust in digital economy?Trust in digital economy?

E2E Net: global machine for springing surprisesE2E Net: global machine for springing surprises

Innovators/creators engageInnovators/creators engage

Agents Agents (care with architecture)(care with architecture)

Regulators – get educated & ReedRegulators – get educated & Reed Business – data pollutionBusiness – data pollution

Citizen consumers get educated & active Citizen consumers get educated & active

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