Reviews

Intellectual Property is Common Property

1 Comment

I’ve been reading Intellectual Property is Common Property by Andreas Van Gunten over the last couple of weeks and it has seriously challenged many of my intuitions on the topic of piracy and intellectual property. Specifically, its been making me think about the ethics of piracy where it fits in my moral framework. I’ll be sharing those thoughts here. First, what is piracy? Let’s look at some modern definitions:

the unauthorized use of anothers production, invention, or conception especially in infringement of a copyright – Merriam Webster

the unauthorized reproduction or use of a copyrighted book, recording, television program, patented invention, trademarked product, etc. – Dictionary.com

I think a good place to begin is to question whether or not piracy is identical to theft. Theft is universally perceived as morally wrong for reasons we will soon explore. By comparing the two, we can gather insight into why we may or may not think piracy is morally equivalent. However, even if it is true that piracy is not equivalent to theft in every respect, logically it does not follow that piracy is morally unproblematic. This is important to keep in mind.

Why is it that humans universally perceive theft as morally wrong? This is because of the harm it causes through an immediate loss of value. If I were to steal a shovel from a shed, the owner of that shovel could no longer use it. The shovel can only be owned and used by one person at a time. Therefore by depriving the owner of their possession and their ability to use the shovel- I’ve clearly harmed them.

In economics, goods that can be used by only one consumer at a time are called rivalrous goods. Rivalrous goods are almost always tangible and will have either durable or non durable characteristics. The shovel in my previous example would be an example of a durable rivalrous good. The Shovel can be used many times without being destroyed, but it can only be used by a single person. An example of a non durable rivalrous good would be an apple because once an apple is eaten it is “used up” and can no longer be eaten by others.  There are also some examples of non-tangible goods that are rivalrous- notably domain names and radio bands. When people refer to theft they almost always mean the theft of rivalrous goods.

However, there are also non-rivalrous goods that exist where the cost of providing the good to an additional individual is zero. For example, Broadcast television is a non-rivalrous good because when a consumer turns on a TV set, this does not prevent the TV in another consumer’s house from working. Other examples of non-rival goods include scenic views, cinemas, national defense, clean air, street lights, and most notably intellectual property. When asking whether piracy is identical to theft, we need to ask: Can non-rival goods be stolen?

Image via wikipedia

As Andreas Van Gunten explains in regards to intellectual property:

“A text in a book or a painting on a canvas are only rival-goods in the sense that the physical manifestation of the expression cannot be consumed more than once at any given time. The expression itself is non-rival. It can be consumed by many people at the same time as long as sufficient copies of the expression exist. The proponents of the current copyright system argue that the justification of intellectual property shares the same moral grounds as the justification of physical property.13 But only the physical medium has a rivalry character comparable to the physical goods by which control rights may be justified. As soon as the copying of the expression, which is what copyright law protects, does not need a physical medium anymore, which means that it can be done at zero or near zero cost, it loses its rivalry character. In other words, copying is not stealing, as the proponents of intellectual property rights try to convince us.

A printed book for example can only be read by one person at a time.14 If someone takes the book away from its owner, he can now read it and the original owner cannot. What we have here are the typical characteristics of a rival-good where the postulation of control rights may make some sense. But this changes completely as soon as a digital representation of the expression is available. In this case this would be an E-Book file or a website with the same text on it. If I possess an E-Book or have access to text on the World Wide Web, I am not limited in my enjoyment of the expression when someone else makes a copy and reads the text as well. As soon as the expression is no longer bound to a physical medium, and its manifestation is realised in a digital representation, the marginal costs for the second and subsequent copies are nearly zero and therefore it loses its rivalry character and its scarcity.”

Andreas Van Gunten answer to the question ‘Can non-rival goods be stolen?’ is no. However, non-rival transactions still seem to have the possibility of being unjust and morally problematic. Interestingly enough, this seems to be particularly true if the systems in place are unable to efficiently regulate and organize non-rival good distribution. In the same way, piracy is not identical to theft, but it can still cause harm to the producers of non-rival information goods because of the free rider problem.

If we were to accept these conclusions, it would seem to me that there would be multiple levels to piracy with different ethical implications. Consider the following four scenarios:

  1. Consume copyrighted movie without permission for private use
  2. Consume copyrighted movie without permission and edit the content for private use
  3. Consume copyrighted movie without permission, edit the content and share for public use
  4. Consume copyrighted movie without permission and share for public use

In each of these scenarios we are consuming copyrighted content without permission. The variables at play here are private vs public and edited vs original. Interesting to note is that scenarios 2 and 3 are actually legal in many cases under fair use in the United States, while the others are not. The mere act of editing copyrighted content makes it “fair.” Nevertheless, from an ethical standpoint scenarios 2 and 3 are ethically equivalent to scenario 1. Scenario 4 in contrast could be argued to be ethically worse for encouraging more piracy because it is sharing the original content with the public. Thus leading to a greater free rider problem.

At a deeper level, what we are really talking about when discussing the ethics of piracy is whether or not “intellectual property” is legitimate. If it is not legitimate- as Andreas Van Gunten asserts in his book- then it can be argued that piracy is simply a way of spreading creative works and increasing human innovation. Indeed, piracy could very well be a a neutral or ethical act.

“My aim is not to try to solve these fundamental problems but to show that a society where intellectual property is common property has a better chance to prosper, independently of the question whether its basic values are more libertarian or more egalitarian. The premise is that the more cultural artefacts and the more scientific ideas are developed and produced, and the more freely human communication can happen, the more sustainable a society grows. This is the classical liberal argument for freedom of speech.” –Intellectual Property is Common Property, Andreas Van Gunten

If one accepts Guntens premise that in a society where intellectual property is common property and “more cultural artefacts and the more scientific ideas are developed and produced, and the more freely human communication can happen, the more sustainable a society grows,” then this is a society we ought to strive for.

Nevertheless, I can sympathize with those that are skeptical of Guntens views. They appear counter intuitive to many given the ingrained cultural status quo on copyright, patents, and other property laws. Furthermore, it may very well be the case that “possessing” intellectual property individually leads to a more prosperous society than one unable to do this.

I highly recommend checking out Guntens work. Piracy will continue to remain an interesting ethical question- one that is volatile to a technological evolution and the laws and norms we set in motion.

Continue Reading

Essays

The Division of Labor: Wealth and Ignorance

No Comments

One of the main characteristics of a capitalist economy is the division of labor. The division of labor allows for greater efficiency in production by compartmentalizing tasks and having individual workers specialize in a single domain. Perhaps the best example that illustrates this was Henry Ford and his revolutionary advances for the automobile industry.

Prior to Ford, cars were primarily produced by skilled workmen. These workmen not only had to have strong mechanical skills, but also extensive knowledge in engineering, physics and material science. In many cases, these craftsmen were capable of building an entire car by themselves. Indeed, car making was an intellectual artform and each piece was a luxury reserved for the rich.

Then Ford came along and began building cars via assembly line. Ford hired large numbers of unskilled workers, many of whom had never even seen a car in their life, and gave each individual a few simple instructions. Suddenly, these workers had become “car makers.”

The division of labor allowed these workers to know just enough in order to do their job without ever needing to fully understand the process. Amazingly, not only was this method more efficient than the cars made by the skilled workmen, but it was cheaper and faster too. Thanks to Ford, car prices dropped dramatically and became so commonplace that even the unskilled workers he had hired could afford them.

Ford had actualized the lessons learned from the Enlightenment and Industrial revolution from the 17th and 18th centuries for the transportation industry. The following excerpt from A Treatise of Human Nature highlights this:

“When every individual person labors a-part, and only for himself, his force is too small to execute any considerable work; his labor being employ’d in supplying all his different necessities, he never attains a perfection in any particular art; and as his force and success are not at all times equal, the least failure in either of these particulars must be attended with inevitable ruin and misery. Society provides a remedy for these three inconveniences. By the conjunction of forces, our power is augmented: By the partition of employments, our ability en creases: And by mutual succor we are less expos’d to fortune and accidents. ’Tis by this additional force, ability, and security, that society becomes advantageous.” – David Hume, A Treatise of Human Nature

150 years before Ford, David Hume recognized the exponential possibilities that human collaboration and the division of labor had for transforming societies. Today, these “conjunction of forces” are represented in the form of large corporations. This rapid advancement in efficiency is one of capitalism’s greatest qualities- creating vast amounts of wealth through expansive production without the need for understanding how.

Nevertheless, despite the enormous benefits that the division of labor can provide to society, it is not without its faults. Karl Marx most notably criticized the division of labor with his theory of alienation and how humans become a “cog in a system of machines.” Adam Smith also criticized the division of labor for its harmful effects to democracy in The Wealth of Nations:

“In the progress of the division of labour, the employment of the far greater part of those who live by labour, that is, of the great body of the people, comes to be confined to a few very simple operations, frequently to one or two. But the understandings of the greater part of men are necessarily formed by their ordinary employments. The man whose whole life is spent in performing a few simple operations, of which the effects are perhaps always the same, or very nearly the same, has no occasion to exert his understanding or to exercise his invention in finding out expedients for removing difficulties which never occur. He naturally loses, therefore, the habit of such exertion, and generally becomes as stupid and ignorant as it is possible for a human creature to become. The torpor of his mind renders him not only incapable of relishing or bearing a part in any rational conversation, but of conceiving any generous, noble, or tender sentiment, and consequently of forming any just judgment concerning many even of the ordinary duties of private life. Of the great and extensive interests of his country he is altogether incapable of judging, and unless very particular pains have been taken to render him otherwise, he is equally incapable of defending his country in war. The uniformity of his stationary life naturally corrupts the courage of his mind, and makes him regard with abhorrence the irregular, uncertain, and adventurous life of a soldier. It corrupts even the activity of his body, and renders him incapable of exerting his strength with vigour and perseverance in any other employment than that to which he has been bred. His dexterity at his own particular trade seems, in this manner, to be acquired at the expence of his intellectual, social, and martial virtues. But in every improved and civilized society this is the state into which the labouring poor, that is, the great body of the people, must necessarily fall, unless government takes some pains to prevent it.” – Adam Smith, V.1.178

Smith pointed out that the division of labor breeds ignorance because it encourages citizens to a very narrow focus of awareness. Citizen’s need to know how to do their specialized jobs and that’s it. There’s no need in viewing the bigger picture- the inter-connectivity of society, politics and rational discourse. These compartmental underpinnings explain people like Ben Carson: someone who is a brilliant neurosurgeon, but also a young earth creationist. Or as Bill Maher describes them, “Smart-Stupid people.”

The truth is that democracy only works well with equally informed citizens- and capitalism, by its very nature of making production extremely efficient, undermines democracy by creating an ignorant populace. In this way, America has been able to both excel and fall behind at the same time. We are a nation of wealth and ignorance, but does it have to be this way? Are the fruits of the divisions of labor worth an ignorant populace? Are democracy and capitalism fundamentally incompatible?

This is the paradox we are currently living in. America is a dumb wealthy giant stumbling forward on a land that is getting narrower and narrower, and only time will tell how the story ends.

Continue Reading

Blog

My 23andMe Results

3 Comments

Last Christmas my parents bought me a 23andme DNA test. As I unwrapped the gift my step father, in classic dad joke fashion, looked me square in the eye and said “Luke, I’m not your father.” He then proceeded to laugh hysterically. I never particularly minded the bombardment of star wars jokes growing up, but if there ever was an appropriated time he definitely nailed it.

Anyways, I just received my results and thought it would be fun to share them here. 23andMe breaks their reports down into 3 major categories: Ancestry, Traits and Wellness. I won’t go through every detail they provided, but I’ll highlight the parts I found most interesting.

Ancestry

Perhaps the most interesting discovery was the amount of Neanderthal DNA variants I had. Most people with European ancestry have between 1 – 4% in their DNA and I seemed to fall on the higher end of that scale. In addition, I inherited the specific Neanderthal trait of having less back hair (can’t complain about this hehe). For those interested in how they determined the Neanderthal trait: marker rs4849721 near the EIN gene showed a change from a G to a T. It was a lot of fun looking at the raw data despite having an elementary understanding of genetics.

The ancestry reports also provided information about Haplogroups. In simplest terms, Haplogroups are maternal or paternal lineages that descend from a single common ancestor. Haplogroups help shed light on the origins of some of our ancient ancestors and on their migrations over tens of thousands of years.

My maternal line belongs to the Haplogroup K2a3.

My paternal line belongs to the Haplogroup R-M412

Wellness

The wellness reports show how your DNA may influence how you respond to certain lifestyle and environmental factors. I laughed out loud when I read I was likely to consume more caffeine and less likely a deep sleeper. Curse you DNA!

Traits

The Traits Reports explains how your DNA may influence your physical appearance, preferences, and physical responses. The predictions are based on current knowledge of how genetic factors influence our traits and the list above is just a portion of some of the traits they covered.

No big surprises here, but there’s certainly a lot of interesting statistics. My paternal lineage (father, fathers father, grandfathers father) all share blue eyes and my mom has hazel eyes, so it was interesting to see these percentages. I have blue eyes (or maybe greenish blue) and my sister has hazel eyes. As far as I can tell I inherited the majority percentage of traits.

Well that about wraps it up! Each report goes into a lot more detail and there’s still several reports I’m eager in dissecting further. Overall it was fun to learn a bit more about my ancestry and genetics. For all that are curious, I definitely recommend it!

Continue Reading

Essays

The Paradox of Free Markets

2 Comments

No individual has had a greater influence on economic policy than Adam Smith. Smith laid the foundations of classical free market theory and most notably conceptualized the idea that profit maximizing firms interacting with rational consumers in competitive markets lead to prosperous societies. [1] For this reason, Smith is frequently celebrated by free market fundamentalists as a champion of Laissez-faire capitalism.

However, despite what his contemporary followers claim, Smith recognized the limitations of the market and the necessity of government:

“According to the system of natural liberty, the sovereign has only three duties to attend to; three duties of great importance, indeed, but plain and intelligible to common understandings: first, the duty of protecting the society from violence and invasion of other independent societies; secondly, the duty of protecting, as far as possible, every member of the society from the injustice or oppression of every other member of it, or the duty of establishing an exact administration of justice; and, thirdly, the duty of erecting and maintaining certain public works and certain public institutions which it can never be for the interest of any individual, or small number of individuals, to erect and maintain; because the profit could never repay the expense to any individual or small number of individuals, though it may frequently do much more than repay it to a great society.”- Adam Smith IV.9.51

Smith believed that it was essential for government to provide certain goods like infrastructure, banking and education because they provided the foundation in which markets could flourish. Nevertheless, Smith recognized the danger of government when their authority was used only to benefit a small number of individuals. Indeed, Smith warned again and again of the collusive nature of business interests, the formation of cabals or monopolies, and the political power this gives to the richest members of society:

“It is in the age of shepherds, in the second period of society, that the inequality of fortune first begins to take place, and introduces among men a degree of authority and subordination which could not possibly exist before. It thereby introduces some degree of that civil government which is indispensably necessary for its own preservation: and it seems to do this naturally, and even independent of the consideration of that necessity. The consideration of that necessity comes no doubt afterwards to contribute very much to maintain and secure that authority and subordination. The rich, in particular, are necessarily interested to support that order of things which can alone secure them in the possession of their own advantages. Men of inferior wealth combine to defend those of superior wealth in the possession of their property, in order that men of superior wealth may combine to defend them in the possession of theirs. All the inferior shepherds and herdsmen feel that the security of their own herds and flocks depends upon the security of those of the great shepherd or herdsman; that the maintenance of their lesser authority depends upon that of his greater authority, and that upon their subordination to him depends his power of keeping their inferiors in subordination to them. They constitute a sort of little nobility, who feel themselves interested to defend the property and to support the authority of their own little sovereign in order that he may be able to defend their property and to support their authority. Civil government, so far as it is instituted for the security of property, is in reality instituted for the defense of the rich against the poor, or of those who have some property against those who have none at all.” – Adam Smith V.1.55

What Smith is describing here is the foundation of corporatism. Simply put, corporatism is the control of the state by the richest interest groups. In practice, corporations will lobby the government for things like subsidies and profit reducing regulations. Free market fundamentalists will often call this level of conspiracy “crony capitalism.” They argue that by simply reducing government size that the “free market” will naturally resolve this issue. This, however, is a misguided fantasy with no factual basis in history.

Before we go any further we must identify what a “free market” actually is, or at the very least, try to understand what it implies. Let’s look at some modern dictionary definitions:

“An economic market or system in which prices are based on competition among private businesses and not controlled by a government.” – Merriam Webster

“Business governed by the laws of supply and demand, not restrained by government interference, regulation or subsidy.” – Investor Words

“An economic system in which prices and wages are determined by unrestricted competition between businesses, without government regulation or fear of monopolies.” Dictionary.com

Today, the term “free market” is often defined as a market without government regulation. Implicit in this definition is that buyers and sellers would have “prices based on competition”, markets would follow the “laws of supply and demand”, and economic activity would be “unrestricted.” Immediately we can see contradictions in this concept.

The following excerpt from Understanding Capitalism demonstrates this quite concisely:

“Without government interference there is nothing to prevent interference, restriction, and subsidy by the mafia, an activity for which we have real world examples. Without government interference there is nothing to prevent the erection of barriers to free transaction, used either to extract rents, to marginalize competition, or to punish groups of people based on any number of criteria such as race, religion, gender, etc. Furthermore, there are any number of ways in which non-governmental entities can implement rules and regulations which distort the laws of supply and demand, a classic example being the National Football League’s imposition of salary caps and profit sharing across organizations.” – R.G. Price, Understanding Capitalism

So here we have a paradox. Without the government imposing rules on the market, there is nothing to stop the “free market” from restricting itself from the next powerful authority. There are countless examples of the “free market” distorting itself. To name a few:

Coca Cola paying retailers to eliminate competition

Ticketmaster obtaining exclusive contracts with venues

F.W. Woolworth discriminating against black customers

Japanese citizens erecting barriers to trade and charging tolls for the transport of goods

In each of these cases we see private actors take action to subvert the “laws of supply and demand,” distort “prices based on competition” or prevent people from transacting freely in an “unrestricted” market without any coercion from government forces. Indeed, it was the implementation of government regulation that ultimately led to a freer market in these cases.

To conclude, Smiths analysis of free markets provides a solid foundation for creating a prosperous society. However, free markets ≠ no government regulation. A freed market must have limited, but smart regulations towards the highest concentrations of capital. It must also account for externalities. And ideally, the freed market would be one that redistributes its capital to all its citizens, but I’ll save those thoughts for another time.

Continue Reading

Songwriting

Songwriting 101: Lovedrug

No Comments

Today I’ll be going over a song I wrote a couple years ago titled Lovedrug. This particular piece is a great example of how simplicity in songwriting can be effective. It uses the popular I, IV, V, vi chords which I previously discussed here. If you haven’t already, I recommend reading that article first in order to get a better understanding of chord relationships and why these chords work so well together. Let’s jump right in!

Lovedrug is in D# Major and is divided into two main sections using the following chords:

Verse: D# Major (I) – A# Major (V) – C Minor (vi) – G# Major (IV)

Chorus: D# Major (I) – C Minor (vi)

These chords can be very tricky to play on guitar, but there’s something we can do to make it more straightforward. We can place a capo on the 8th fret which allows us to play these chords in the open position. This makes the song easier to play because it allows us to use basic chord shapes. In practice, you could then use the following shapes:

Verse: G Major – D Major – E Minor – C Major

Chorus: G Major – E Minor

For those that are unfamiliar, these shapes look like this:

Something to note is that we can easily transcribe songs to a different key while still using these same chord shapes by simply moving the capo up or down the neck. The reason I chose to use the key of D# Major (8th fret capo) for this particular song was because it was the best fit for my vocals. It’s often a good practice to experiment with your songs in different keys. While inexperienced singers may be limited with the keys they can use, it can provide a great deal of flexibility and even new ideas for how singers can perform the melody.  For Lovedrug I also experimented with using G Major and A# Major throughout the songwriting process.

Next let’s look at the song structure. I would categorize this song as ABABCBBC. Looking at each letter: A represents the verse, B represents the chorus, and C represents the bridge. My favorite part of Lovedrug was the chorus because the melody was particularly catchy, and therefore I wanted to emphasize this part of the song. To do this, I simply made it the most prominent part by repeating it four times in total. The only difference between the bridge and the verse is that the bridge uses a guitar riff instead of the verse melody.

Finally let’s take a look at the lyrics and melody:

I love to watch you squirm
Every time you lie
Feel the way it hurts

You get me high then you bring me down
Don’t know why I ever stick around
Hate to say, hate to say it now
Just a drug, just a drug, just a drug to me

Why did the fire die?
I want to watch it burn
Every single time

You get me high then you bring me down
Don’t know why I ever stick around
Hate to say, hate to say it now
Just a drug, just a drug, just a drug to me

The song is about an addiction to an unhealthy relationship. It highlights how we irrationally glorify the honeymoon phase with a partner and use it to justify lies and bad behavior. The lyrics are simple and easy to understand, but often times that’s exactly what a song needs to demonstrate its message clearly. I think I can accomplished that with this song.

For the melody I started with the simple idea of walking up a scale for the word “high” and walking down the same scale for the word “down.” After trying several variations I finally came up with the one I liked most. From there, I made several iterations of it and eventually picked one that ended up being the verse melody. Melody writing is often just coming up with 20 different ways to sing a single word- and then ultimately picking your favorite and expanding it.

Well that about wraps up Lovedrug. If you take anything away from this lesson I hope it’s that simplicity can do wonders with the right touch. It’s something you should always consider during the songwriting process because it’s easy to add too much. Thanks for reading.

Continue Reading