Intellectual Property

I got a preview of Drug Wars by
Robin Feldman and Evan Frondorf. It’s not about the War on Drugs, but about the devices used by Big Pharma to maintain the profits they earn from their intellectual property (ownership of drug patents, brand names and so on) and to stave off competition from generics. Feldman and Frondorf propose a number of reforms to the operation of the patenting system to enhance the role of generics. I’m more interested in a fundamental shift away from using intellectual property (patents and brand names) to finance pharmaceutical research.
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Long post. Input welcome on any aspect of what I am discussing but I end the post with a very specific question, to which I would really like an answer: do our esteemed primate cousins ask questions? Yet more specifically: have language-trained non-human primates demonstrated the ability to ask questions? (Communicatively elicit desired information from their fellows or humans?)

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My discussion of intellectual property inevitably raised questions about my argument that property rights are not natural rights, but are socially constructed and, in the modern world, exist only as part of the legal structures created and enforced by states. The “moral rights” of artists over their creative works has been raised as a suggested counterexample. In fact, this example reinforces my original argument. Two cases arise, both of interest:

In the United States, the moral rights of artists were effectively unrecognised by law until accession to the Berne Convention 1989, and remain extremely limited. The result is that, once an artist has sold the rights to her work, she has no control over its subsequent use, unless she can make a case separate from moral rights, for example that use in an advertisement misrepresents the artist as endorsing the product. So, for example, it’s perfectly legal to use London Calling to advertise Jaguars, or to clip Fortunate Son to fit a jingoistic ad for jeans. Moral rights are widely recognised, and may generate social opprobrium for those who violate them (as with other misuses of property rights) but they have no legal standing.

In France and other European countries, artists have inalienable moral rights over their work, to prevent misuse of the work by the initial or later purchasers. This is not a property right, but a constraint on property rights. To the extent that moral rights are recognised after the fact, they constitute a taking from the purchaser of the property right. To the extent that they are recognised when artists sell rights to their work, they (like any restriction on alienation of property) represent a constraint on the property rights of the artist. Melanie Safka recognised this, in an ironic fashion, in her classic Look what they’ve done to my song, Mawhen she wrote

It’ll be all right ma, maybe it’ll be okay
Well, if the people are buying tears
I’ll be rich someday, ma

Coming back to the general issue, property rights and (perceived/socially accepted) natural rights have features that mean they tend to coincide in some ways and conflict in others. Most obviously, they are both associated with the general feeling of rightful possession, so that a system of property rights is more stable when it coincides with natural rights. On the other hand, natural rights are mostly perceived as inalienable and indivisible, while property in its ideal form is infinitely transferable and divisible. Moral rights for artists are a classical example of the clash between inalienability and unfettered property rights but the same clash arises at every point in the production process.

Another draft extract from my book-in-progress, Economics in Two Lessons. It’s the last part of the section on “predistribution”, dealing with Intellectual Property. Next up, “redistribution” through taxation and public expenditure.

As always, encouragement is welcome, constructive criticism even more so.

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Cory Doctorow links to a nifty graphic design project: crowdsourced covers for public domain classics. If you know anyone teaching a relevant art class at the high school level, or above, I think this might make a fine class project. Everyone pick a title and go for it!

Cory: “I can’t figure out what license the new covers are under and whether anyone can use them as covers in their own collections of public domain books, or whether permission must be sought for each design.” I wondered about that as well. The info page doesn’t cover rights. I signed up to see what one would have to agree to. Answer: a CC license. (Cory will be gratified to hear it!) [click to continue…]

Sooooo, the youngs. you may have heard they like Justin Beiber or Rhianna or something. They don’t. They like computer constructs, only one of which is human, and we hear her voice only, and anyway there is some debate about whether she’s canon. Vocaloids! The original technology was invented by Kenmochi Hideki at the Pompeu Fabra University in Barcelona, Spain in 2000. Backed by the Yamaha Corporation, it developed the software into the commercial product “Vocaloid.” (ボーカロイド Bōkaroido). (This product exists separately from the Vocaloids I’m talking about and is used to generate back-up vocals and other things like that in ordinary pop songs). The most popular is naturally 01, Hatsune Miku. You can even see her perform live! (You should really watch this–it’s not clear quite how bizarre the scene is till partway through.) Her ‘voice’ is compressed into the upper range of human hearing, and beyond what any human could sing. But it’s not merely a person’s voice sped up; it’s constructed (though some samples were taken from a Japanese actress).
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“Paul Krugman yesterday:”:http://krugman.blogs.nytimes.com/2013/12/12/tpp/

I’ve been getting a fair bit of correspondence wondering why I haven’t written about the negotiations for a Trans Pacific Partnership, which many of my correspondents and commenters regard as something both immense and sinister. The answer is that I’ve been having a hard time figuring out why this deal is especially important. … The big talk about TPP isn’t that silly. But my starting point for things like this is that most conventional barriers to trade — tariffs, import quotas, and so on — are already quite low, so that it’s hard to get big effects out of lowering them still further. The deal currently being negotiated involves only 12 countries, several of which already have free trade agreements with each other. It’s roughly, though not exactly, the TPP11 scenario analyzed by Petri et al (pdf). They’re pro-TPP, and in general pro-liberalization, yet even so they can’t get big estimates of gains from that scenario — only around 0.1 percent of GDP. And that’s with a model that includes a lot of non-standard effects.

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“This”:http://isites.harvard.edu/icb/icb.do?keyword=k77982&tabgroupid=icb.tabgroup143448 looks like a bombshell announcement to me (I’m not aware of the internal politics behind the announcement, but I’m presuming that Robert Darnton’s fingerprints are all over it). Discuss.

bq. We write to communicate an untenable situation facing the Harvard Library. … The Faculty Advisory Council to the Library, representing university faculty in all schools and in consultation with the Harvard Library leadership, reached this conclusion: major periodical subscriptions, especially to electronic journals published by historically key providers, cannot be sustained: continuing these subscriptions on their current footing is financially untenable. … It is untenable for contracts with at least two major providers to continue on the basis identical with past agreements. Costs are now prohibitive. … since faculty and graduate students are chief users, please consider the following options open to faculty and students (F) and the Library (L), state other options you think viable, and communicate your views:

bq. Make sure that all of your own papers are accessible by submitting them to DASH in accordance with the faculty-initiated open-access policies (F). Consider submitting articles to open-access journals, or to ones that have reasonable, sustainable subscription costs; move prestige to open access (F). If on the editorial board of a journal involved, determine if it can be published as open access material, or independently from publishers that practice pricing described above. If not, consider resigning (F).

Some of this may be hardball bargaining with the two unnamed providers (one of which, I presume, has a name starting with E). But not very much – to state the problem so bluntly, and to encourage faculty to stop publishing in, and resign from the boards of non-open access journals sounds more like pushing for system-change than for a better deal within the current system. This may be the beginning of the end.

“Science”:http://www.sciencemag.org/content/334/6061/1344.full has an article behind its paywall (but available in “liberated form here”:http://world.edu/?worldedu_posts=saudi-universities-offer-cash-exchange-academic-prestige) that likely merits discussion.

bq. At first glance, Robert Kirshner took the e-mail message for a scam. An astronomer at King Abdulaziz University (KAU) in Jeddah, Saudi Arabia, was offering him a contract for an adjunct professorship that would pay $72,000 a year. Kirshner, an astrophysicist at Harvard University, would be expected to supervise a research group at KAU and spend a week or two a year on KAU’s campus, but that requirement was flexible, the person making the offer wrote in the e-mail. What Kirshner would be required to do, however, was add King Abdulaziz University as a second affiliation to his name on the Institute for Scientific Information’s (ISI’s) list of highly cited researchers. …

bq. “I thought it was a joke,” says Kirshner, who forwarded the e-mail to his department chair, noting in jest that the money was a lot more attractive than the 2% annual raise professors typically get. Then he discovered that a highly cited colleague at another U.S. institution had accepted KAU’s offer, adding KAU as a second affiliation on ISIhighlycited.com.

bq. Kirshner’s colleague is not alone. I have learned of more than 60 top-ranked researchers from different scientific disciplines—all on ISI’s highly cited list—who have recently signed a part-time employment arrangement with the university that is structured along the lines of what Kirshner was offered. Meanwhile, a bigger, more prominent Saudi institution—King Saud University in Riyadh—has climbed several hundred places in international rankings in the past 4 years largely through initiatives specifically targeted toward attaching KSU’s name to research publications, regardless of whether the work involved any meaningful collaboration with KSU researchers.

bq. … Academics who have accepted KAU’s offer represent a wide variety of faculty from elite institutions in the United States, Canada, Europe, Asia, and Australia. All are men. Some are emeritus professors who have recently retired from their home institutions. All have changed their affiliation on ISI’s highly cited list—as required by KAU’s contract—and some have added KAU as an affiliation on research papers. Other requirements in the contract include devoting “the whole of your time, attention, skill and abilities to the performance of your duties” and doing “work equivalent to a total of 4 months per contract period.”

Understandably, the “regular faculty at the affected university”:http://www.alarabiya.net/articles/2011/12/18/183235.html are quite upset. I wonder how many researchers turned this offer down? (I’d hope that most did, but I’d be unsurprised to be disappointed)

“Matt Yglesias”:http://thinkprogress.org/yglesias/2011/08/31/308874/justice-department-moves-to-block-attt-mobile-merger/, after complaining about the “endless Internet circle jerk over “neoliberalism,”” tries to be a little more conciliatory.

I think when I tried to raise this issue as it pertained to craft beer, I wound up coming across as unduly accusatory and prompted a lot of unproductive responses. So to put the issue as clearly as possible, I wonder if adherents to an anti-neoliberal theory of progressive politics believe the right thing for President Obama to do is to consider the pro-labor benefits of the merger to be an _independent argument_ in favor of the merger that deserves weight alongside other issues. The CWA has an argument on the merits about this that I think isn’t crazy, but the question that I think is philosophically interesting is whether the labor angle deserves consideration apart from the “official” argument about anti-trust economics.

I think the answer to this question is a no-brainer: yes. If you believe, as Jacob Hacker and Paul Pierson, Paul Krugman etc believe, that the decline of the US labor movement is an important explanatory factor for the rise of inequality in the US, and if you believe that inequality is a problem, then of course you want to think about the consequences of anti-trust policy for union strength. Weakening unions can plausibly further increase inequality, by weakening actors who used to serve as an important counterweight to e.g. financial interests. But I am not at all sure that Matt himself has any deeply rooted philosophical objections to this way of thinking. In a “more recent post”:http://thinkprogress.org/yglesias/2011/08/31/309483/patents-and-inequality/ he quotes a Dean Baker argument that patents and intellectual property contribute to inequality, and concludes:

The general idea is that we shouldn’t accept the view that a world of parasitic finance, asymmetrical globalization, government-sponsored intellectual property monopolies, and Fed engineered wage-suppression constitutes a “free market” outcome relative to which the left wants redistribution.

This seems absolutely right to me – but also to call for an emphatically non-neoliberal approach to politics. As Matt is saying in this post, profound political inequalities are baked into the cake of our current market economy. But if this is right, then it is implausible that we can let markets do their thing, and then worry about the distributional issues later, since inequalities, the power of financial interests, etc not only are part of the system as it is, but also make it very unlikely that we will ever get to the stage of doing substantial redistribution. While Dean Baker (whom Matt is relying on in this post) depicts his reform agenda as a set of pro-market measures, they are not by virtue of this, neo-liberal measures (which would suggest that we should let the market organize itself, and then worry about distribution later). Instead, Dean wants to restructure markets from the get-go so as e.g. to rein in the political power of finance by taxing certain transactions, getting rid of the ‘too big to fail’ problem etc. This political program (like all political programs) emphasizes some problems and de-emphasizes others. But it is, emphatically, a political program, with a theory of what is wrong with the US political economy, and how to fix it.

To put it another way: I think that Matt sometimes adopts neo-liberal language, and is surely friendlier to neo-liberal ideas than, for example, someone like me. But I also think that his agenda – if he were really to draw out its implicit politics – is rather more radical than he is usually prepared to let on. If he is uncertain about whether Chicago-style anti-trust thinking should sometimes be trumped by political considerations, then he should look again at the arguments around the Microsoft trial, which connect directly to the intellectual property questions that he worries about (as a lot of post-Chicago people argued, monopolies tend to stifle innovation in a variety of ways). It isn’t only pro-labor people who would like to see other arguments than George Stigler-style reasoning play a role in anti-trust decisions. If he believes (as he seems to) that inequality is a bad thing, and that current IP policy helps to foster inequality, then he should draw political conclusions from these causal connections.

For what it’s worth, I think that the open information agenda, and the political inequality agenda have a lot more in common than most people think (I have been planning for some time to do more writing on this over the next year). I think it would be a lot more useful to frame the argument as one between different ways of restructuring markets so as to tackle problems of inequality at their source than as one between neo-liberalism and its critics. For one thing, even while different ways of thinking about markets and inequality might point in different directions in specific instances, it would be easier to figure out the trade-offs, especially as they are trying to reach the same end-goal. For another, it would be easier to identify the possible political actors and coalitions that might support the one, or the other, set of reforms, and possible points of agreement or disagreement between them. Both of these would conduct towards better debate.

The “NYT story”:http://bits.blogs.nytimes.com/2011/07/19/reddit-co-founder-charged-with-data-theft/?ref=technology is here.

bq. Aaron Swartz, a 24-year-old programmer and online political activist, was indicted Tuesday in Boston on charges that he stole over four million documents from the Massachusetts Institute of Technology and JSTOR, an archive of scientific journals and academic papers. (Read the full indictment.) The charges were filed by the United States Attorney for the District of Massachusetts, Carmen M. Ortiz, and could result in up to 35 years in prison and a $1 million fine. In a press release, Ms. Ortiz’s office said that Mr. Swartz broke into a restricted area of M.I.T. and entered a computer wiring closet. Mr. Swartz apparently then accessed the M.I.T. computer network and stole millions of documents from JSTOR.

The indictment is “here”:http://t.co/Bc9xaRe – a petition supporting Aaron can be found “here”:http://act.demandprogress.org/sign/support_aaron/. I can’t pretend to be at all impartial about the prospect that Aaron could serve serious jail time for this – he is a good friend, as well as an active member of the CT community. It looks as though he has some support from the library community – the petition page has a statement from James Jacobs, the Government Documents Librarian at Stanford University. Furthermore, it claims that the “alleged victim has settled any claims against Aaron, explained they’ve suffered no loss or damage, and asked the government not to prosecute.”

Because of the day that’s in it, here’s a simple Aperture Science Keynote Theme. The theme requires you have Univers installed. For maximum effectiveness, the use of this theme is best accompanied by a well-prepared text, a clear speaking voice, and—for fielding questions—a functional Aperture Science military android. I’ll probably use the theme in class tomorrow (though the turret is still being shipped to me). Here are some samples:
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I’m thinking about doing another book, which would be a reply to Henry Hazlitt’s Economics in One Lesson a tract published in 1946, and available online, but still in the Amazon top 1000. It’s largely (as Hazlitt himself says) a rehash of Bastiat.

I’ll try to put up a prospectus soon, but I thought I’d start with something simpler, a response to Leonard Read’s I, Pencil.

Update I’m getting a lot out of the comments, and updating the piece in response.

This essay is a description of the incredibly complex “family tree” of a simple pencil, making the point that the production of a pencil draws on the work of millions of people, not one of whom could actually make a pencil from scratch, and most of whom don’t know or care that their work contributes to the production of pencils. So far, so good. Read goes on to say that

There is a fact still more astounding: the absence of a master mind, of anyone dictating or forcibly directing these countless actions which bring me into being. No trace of such a person can be found. Instead, we find the Invisible Hand at work.

Hold on a moment!

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Via Alex Tabarrok, this “Wall Street Journal article”:http://online.wsj.com/article/SB10001424052748704081604576144401022132530.html is very interesting.

bq. Some U.S. furniture makers and their lawyers have found a reliable way to extract cash from Chinese competitors deemed by U.S. officials to have “dumped” their products in the U.S., selling them at unfairly low prices. Each year since 2006, they have asked the Commerce Department to review the U.S. duties paid by Chinese manufacturers on imports of wooden bedroom furniture. Many Chinese firms, fearing a steep rise in duties, agreed within months each time to pay cash to their U.S. competitors in return for being removed from the review list. “Everybody in the industry in the U.S. and China understands that these payments are clever shakedowns,” said William Silverman, a lawyer representing U.S. furniture retailers, big importers of Chinese products, at an October hearing of the U.S. International Trade Commission. … About $13 million was paid to a group of 20 U.S. furniture makers from 2006 through 2009, according to a November ITC report. The U.S. firms told the ITC that a much larger, but unspecified, amount of money went to pay the U.S. firms’ lawyers.

Not many people realize how much of US trade policy is effectively set by private industry groups, whose interest in free trade, for better or worse, is largely opportunistic. This is especially obvious in the area of property rights. I recently finished reading an excellent “report”:http://piracy.ssrc.org/ edited by Joe Karaganis on the politics of the piracy debate, which has a good chapter on just this topic by Sean Flynn and Karaganis [click to continue…]