The Ethics of Piracy

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 from my utilitarian and consequentialist perspective and where it fits exactly 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? From a utilitarian and consequentialist perspective 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. Likewise an apple would be an example of a non durable rivalrous good 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 rival 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, there’s another underlying question: Can non-rival goods be stolen?

https://sites.google.com/site/microeconomicsreview/_/rsrc/1296342336865/public-and-private/Chart.jpgImage via wikipedia

As Andreas Van Gunten explains in Chapter 2:

“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.”

So to answer the question: Can non-rival goods be stolen? The answer 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 from a utilitarian perspective.

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 remain agnostic.

Whatever your beliefs, I highly recommend checking out Guntens work. Piracy will continue to remain an interesting ethical question- one that is volatile to a technological environment and the laws we set in motion. Let’s see where it goes.

The Division of Labor: Wealth and Ignorance

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.”

fordassemblyline

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.

Whether he recognized it or not, Ford had expanded on the knowledge and progress from the Enlightenment and Industrial revolution from the 17th and 18th centuries. 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 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.

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 with dozens of delusional and irrational beliefs. 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 this by destroying the intellectual curiosity that democracy requires. 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.

Smith suggests that “unless government takes some pains to prevent it,” that this is the path we are doomed to follow. The election of Donald Trump would suggest that the government has failed in this regard and will continue to do so in the near future.

I am, however, optimistic. The Internet has made it easier than ever before to learn and explore ideas outside ones expertise. Automation has and will continue to take over jobs that are simplistic and repetitive. We are a nation of wealth and ignorance, but perhaps one day we can become a nation of wealth and reason.