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Optimum Copyright Period Decided by Math

Posted by Zonk on Fri Jul 13, 2007 09:26 AM
from the everybody-wins dept.
An anonymous reader writes "So how long should a copyright be valid for? A Cambridge student has stepped into the discussion with a dispassionately calculated estimate of the optimal period a copyright should be granted. Ars' point of view: 'Neither the US nor the UK are in any danger of rethinking copyright law from scratch, but if they were looking for guidance in how to set up their systems, Pollock has it. He develops a set of equations focused specifically on the length of copyright and uses as much empirical data as possible to crunch the numbers. The result? An optimal copyright term of 14 years, which is designed to encourage the best balance of incentive to create new work and social welfare that comes from having work enter the public domain (where it often inspires new creative acts).' The original paper is available (pdf) online."
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  • by Anonymous Coward on Friday July 13 2007, @09:27AM (#19847915)
    That the founders of the United States were geniuses... or lucky bastards.
    • by hey! (33014) on Friday July 13 2007, @10:09AM (#19848313) Homepage Journal
      They were lucky they were geniuses.
    • by frankie (91710) on Friday July 13 2007, @10:25AM (#19848459) Journal

      Don't any of you get it? Infinite, retroactive copyright extension is the ONLY way to enrich our cultural heritage of creative works. If the rights-holding corporations like Disney ever lose control of their money-making "intellectual properties", then some day they are likely to go bankrupt (fiscally, that is). And when that happens in our bleak dystopian future, their angry stock-holders will seize a time machine, go back to the 1920s, and convince Walt to never create his characters in the first place, since it clearly won't be a worthwhile investment of his effort.

      Sheesh, why do I have to spell this stuff out for you people? It's the only logical conclusion.

      • by mhall119 (1035984) on Friday July 13 2007, @10:49AM (#19848743) Homepage Journal
        Yeah, I know this was a joke, but I still need to point something out. This is talking about expiration of copyright, not trademark. So the animation "Steam boat Willy" would fall into the public domain, but the character "Mickey Mouse" would still be a Disney trademark, so nobody else could create new content with "Mickey Mouse" in it, or even a character that could easily be confused with Mickey Mouse. Therefore Walt's characters would still make be making money, as long as Disney keeps making new content, since that gets a new copyright protection.

    • by langelgjm (860756) on Friday July 13 2007, @10:28AM (#19848491) Journal
      The AC is referring to the fact that in the Copyright Act of 1790 (the US's first), the term of copyright was set at 14 years, and after expiration, could be renewed for another 14: http://en.wikipedia.org/wiki/Copyright_Act_of_1790 [wikipedia.org]

      Unfortunately, the interests that controlled the tiny minority of works that continued to be profitable after 28 years, then 56 years, lobbied for and got legislation that extended the term of all works.
    • by nuttycom (1016165) on Friday July 13 2007, @10:43AM (#19848671)

      That the founders of the United States were geniuses... or lucky bastards.

      Had they truly been geniuses in the sense you suggest, they'd have specified the algorithm for determination of the copyright period, instead of just the value.

      I've often wished that the founders of the states had been smart enough to describe an apolitical algorithm for determination of the boundaries for congressional districts as well. Or had been smart enough to realize that plurality voting systems (instead of ranked or condorcet methods) would ultimately result in the creation of an entrenched two-party duopoly from which there appears to be no escape.

    • by langelgjm (860756) on Friday July 13 2007, @10:53AM (#19848777) Journal
      They were neither geniuses or lucky bastards - they were thieves. That figure of 14 years in the Copyright Act of 1790 was most likely copied - no, STOLEN - from England's Statute of Anne, dating to 1709. What a blatant violation of intellectual property!
  • by elrous0 (869638) * on Friday July 13 2007, @09:27AM (#19847917)
    The optimum copyright period is decided by Disney.
    • by khasim (1285) <brandioch.conner@gmail.com> on Friday July 13 2007, @09:36AM (#19847985)
      Since we know that Disney (and others) will lobby against anything other than their eternal copyrights, we need to plan for that.

      If you have have property that you want protected, then you should PAY for that protection after the standard protection period has expired.

      99%+ of book titles won't be sold 15 years after their release. So there's no financial incentive for their authors to protect them. But with Disney and others, their "property" is worth millions of dollars. So charge them 5% of the estimated value. Every year.

      If you are an author and you want to keep protecting your book, are you willing to pay 5% a year of the sales from the last year? Or should it be 1%?

      Otherwise it falls into the Public Domain.
        • by Firethorn (177587) on Friday July 13 2007, @10:06AM (#19848285) Homepage Journal
          I'd have to agree with this. A straight percentage rate wouldn't work too well - 5% of 0 is still 0, easy to pay.

          Now a Flat fee of $1k/year to keep a movie* copyright free. Studios such as MGM would have to pay millions a year to keep their products under copyright, eventually the accountants would point out that OldMovies 1-100 aren't making $1k, there's no guarantee that they'd make $1k if released on DVD, so they let the copyright expire.

          I'd have the fee vary, and go up over time. For example - $10/year for a book, for the second 20 years of copyright(the first 20 are free).

          Note: All numbers are approximate.

          *original audiovisual production in excess of 60 minutes, (by original I mean not just a tweaked remix)
    • by Anne_Nonymous (313852) on Friday July 13 2007, @09:55AM (#19848171) Homepage Journal
      Bah. Disney is a Mickey Mouse operation.
      • by iplayfast (166447) on Friday July 13 2007, @09:52AM (#19848141) Homepage
        I still don't see why the Slashdot crowd cares one way or the other about the length of copyright terms

        It's because the slashdot crowd is concerned about freedoms, and freedoms lost.
        It's because many in the slashdot crowd believe in standing on the shoulder's of giants to make their own works. (which can't be done with the current copyright).
  • B b b but... (Score:5, Insightful)

    by timeOday (582209) on Friday July 13 2007, @09:29AM (#19847931)
    My daddy had a hit song on the radio, so I deserve to never work a day in my life!
  • Good Stuff (Score:5, Interesting)

    by eldavojohn (898314) * <my/.username@@@gmail.com> on Friday July 13 2007, @09:30AM (#19847937) Homepage Journal
    This Rufus Pollock has some good stuff [rufuspollock.org] on his site. I've only had about ten minutes to read over a few of these papers and I'm pretty impressed. Not only is it well written but it aligns heavily with the Slashdot community's interests. For example, the conclusion of his paper The Value of the Public Domain ends with these policy recommendations (the most interesting, in my opinion, is bolded):
    • * When formulating policy the key variable to consider should be social value, which is the sum of commercial value and user value, rather than commercial value alone (in economist's terminology: welfare rather than national income).
    • * When looking at the value of knowledge goods in general, and the public domain in particular, policy makers should take account of the value generated by complementary products and services.
    • * Historically, innovation policy, particularly in relation to intellectual property, is characterized by extensive rent-seeking activity and significant imbalances in power. It is important that this be taken into account in policy making, for example by the provision of a clear set of principles that could safeguard groups that are poorly represented (such as the general public). The public domain while very important to society tends to lack a concentrated set of stakeholders to defend it, compared, for example, to the copyright-based industries.
    • * For some of the categories of works currently covered by copyright, for example music, the introduction of open access along with some form of alternative compensation system promises to deliver significant gains both to creators and to consumers.
    • * Access and preservation of older copyrighted works is a significant problem and should be addressed. This could be done in several, potentially complementary ways, including: introduction of a registration requirement, orphan works provisions, and a reduction in copyright term.
    • * In areas such as open source software and technology standards the first principle should be "do no harm". In particular, it is imperative that policy makers maintain, and strengthen, the exclusion of software and business methods from patentability.
    • * Make public sector information open. This is one of the most direct, and straightforward actions governments can take in promoting the public domain, and it is one that the available evidence suggests will have large benefits both to industry and to the general public.
    He also attempts to show through economic theory that "that a dominant firm may engage in considerable expenditure to maintain its position and the welfare consequences of so doing may be considerable.

    Also interesting is that he conjectures that the burden of proof of ownership in intellectual property should be placed on those attempting to acquire the IP, not anyone else [rufuspollock.org].

    He has a paper detailing a model where innovation occurs without intellectual property [rufuspollock.org] in an attempt to show that the assumption regarding IP's relationship to innovation is false.

    Very interesting stuff, to say the least, most of it quite logical which means, of course, that it will be completely ignored by politicians and policy makers.
    • Although the process is slow, policy makers do eventually catch up with new realities. Or rather, they retire and die and are replaced by younger minds that think differently.

      What we're looking at, IMO, is the transition of social, economic, and finally, political power from the industrial revolution to the digital revolution. People like Rufus are today defining the theoretical basis for laws that will be enacted in twenty or fifty years' time.

      What is happening, broadly is that a new society is forming around the digitalisation of culture. This society is vast and now includes perhaps half the world's population (3bn SIM cards are in use globally). The new society drives new businesses like Google and Ebay, and in a decade, this digital economy will have become more important than the industrial economy. And at some stage the digital economy will reach for political power.

      This happened before, in the industrial revolution, and at that time the old upper class - landowners - tried to stop the growth of the new industrial middle class with laws like the Corn Laws. They ultimately failed, and the urban middle class finally got the vote.

      My prediction is that the digital revolution will culminate in a transfer of power from the old political / industrial elite (who are the ones that made today's copyright and patent laws) to a new elite that will create new models of property that suit it much better.

      It is feasible to already implement 14-year copyright today, by private contract. E.g. this could be implemented in a GPL-style license. It may be that private legal systems like the GPL become the laws of tomorrow.

      Rufus has done a brilliant work in turning the "more is better" dogma of IP upside down and giving us a tool to quantify exactly what is needed.
      • by Silver Sloth (770927) on Friday July 13 2007, @10:00AM (#19848211)
        The difference is that the rate of change is increasing beyond exponentially. It may be nice to be 'defining the theoretical basis for laws that will be enacted in twenty or fifty years' time. but the PC is barely 25 years old, mass internet usage is less than 10 years old and the ability to bulk copy and distribute media less than that. I'm not sure we have the time to wait 20 - 50 years to sort it out.
  • Dispassionate (Score:5, Insightful)

    by just_another_sean (919159) on Friday July 13 2007, @09:30AM (#19847943) Homepage Journal

    ...a dispassionately calculated estimate
    If only all important political discusions and decisions could use techniques like this. It's refreshing to see someone take some of the "but artists are starving and may soon be forced to eat babies" out of the debate.

    • Often they do (Score:5, Interesting)

      by Moraelin (679338) on Friday July 13 2007, @10:29AM (#19848503) Journal
      Actually, it looks to me like just a variation of the popular "have a pre-conceived result you want to reach, then massage logic and numbers to reach it." In this case, outright proposing "my formula says get rid of IP completely" (which he seems to be busy arguing the rest of the time) would have looked suspicious, while "hey, the original 14 year idea was right, let's go back to that" is something that's actually very easy to swallow. So let's massage the maths to support that.

      I'm sorry, I'll

      A) have trouble taking someone seriously as doing dispassionate objective maths when the rest of the time they're on a crusade against copyright and copyright extensions. It's akin to trusting a Sony fanboy to give you a scientific and dispassionate estimate as to which console is the best. But more importantly,

      B) the data he feeds into those formulas is based on guessed numbers. E.g., for the rate of decay, depending on who you choose to believe, in his own paper the estimates range from 2% to 10%. He chooses 5% as the number to go with, but the important thing to realize is that it's just a guess. The accuracy of that number is remarkably low.

      To give you an example of how inacurate that is: for something that decays by 2% per year, after 16 years you've lost only almost 28% of the original value. At 5%, after 16 years you've lost 56% of the original value. At 10% in 16 years you've lost 81% of the value. (I'm using 16 instead of 14 just because I'm too lazy to do more than press the X^2 button in xcalc 4 times. Should be enough for example purposes.) The effects being literally exponential, such a wild inaccuracy is multiplied incredibly. You can produce a wildly different "ideal number of years" by just choosing slightly different guessed numbers to input in those formulas.

      C) I see nowhere a calculation of the error margins. As a corolary of B, what's more interesting for such a calculation with wildly guessed numbers isn't just one value reached with the most likely guess, but what is the _interval_ of plausible results. If you've fed data which could be anything between 2% and 10%, then what is the result for 2% and what is the result for 10%, for a start. Don't give me the result just for 5%. And that's just one of the values there.

      Basically what I'm saying is that even if you trust the formulas to be correct, the insanely large intervals of believable values means you can get almost any number you want to get there, just by picking different guessed numbers. You can use the same formula to get any number between 2-3 years (if you chose to believe everything devalues extremely fast, and everything creates incredible value in derivative works) to well over 50 years (if you choose to go by the idea that even though some crap devalues faster, the most deserving protection are the masterworks that devalue very slowly.) Pick your own pre-conceived number in that range, and there's a valid set of guessed numbers that produces it.

      Anyway, it's used all the time. E.g., if you work in most large corporations, you must have seen at least one (but more likely dozens) of baffling decisions that go somewhat like this:

      How it's supposed to look from the outside: some manager (A) saw that problem X exists and is really a problem, (2) analyzed which products solved that problem, (3) made a list of features and performance characteristics, put them in numbers, and assigned them weights according to their importance in the actual case at hand, (4) dispassionately calculated the weighted score for all of them, and (5) the result happens to say that, objectively, product Y from supplier Z is the perfect choice.

      What really happened: was that the manager had already decided that he wants product Y or just to buy something from company Z, for entirely other reasons. Often (but not always) he even had to scratch his head to figure out a problem X that fits that solution. At any rate, from there the analyzed features and their weights are juggled and massaged until product Y ends up on top. There you go, now the cold dispassionate numbers support it.
      • Actually... (Score:5, Insightful)

        by hey! (33014) on Friday July 13 2007, @10:53AM (#19848783) Homepage Journal

        Dispassionate does not mean non-biased.


        Actually, it does [reference.com]:

        dispassionate /dspænt/
        -adjective
        free from or unaffected by passion; devoid of personal feeling or bias; impartial; calm: a dispassionate critic.


        Now, this is a different kettle of fish entirely:

        There has to be certain assumptions made behind various calculations, and the author is likely biased in a particular way.


        What you're arguing in effect precludes any notion of objective truth, since every assertion is either an assumption or based on other things that are. And every person who argues anything at all has some personal biases. However this doesn't make his arguments empty or imply they must be biased by his personal preferences. This is a familiar position to me from arguing with my postmodernist friends. I'm not against postmodernism, Like Milton, I think any idea is healthy food for a strong and healthy mind. Yet I find that people exclusively educated in that style lack a certain respect for the value of data. And how we handle data is very important to whether we are being dispassionate or not.

        This is one of the big problems with the modern media: it cannot distinguish balancing facts from balancing opinions. If they feature a evolutionary biologist, they "balance" that by presenting a creationist, as if their views were equally valid alternatives. In part this is driven by economics: weighing facts is much harder and slower than trotting out somebody who simply disagrees. We're talking about the difference between building something with legos and building them with raw stock and a machine shop.

        The problem with strong emotions is that they narrow our ability to process information. In the grip of passions, we unconsciously filter out data which would alter our emotional state. When we're angry, we ignore data that would calm us and focus on data that makes us angrier. When we're fearful, we focus on data that scares us and disregard data that would make us feel safe.

        So a dispassionate argument is not one that has no viewpoint; it is one that is impartial with the facts. It may discount certain facts and place greater significance on others, but it does so consciously with an identifiable justification. It is therefore negatable by negating its justifications and altering its selection of facts.

        This is not to say he is wrong, but "dispassionate" doesn't mean he is right. He is like an expert witness at a trial, he is trying to be technically correct as possible but he is still siding with a particular viewpoint.


        For that matter non-biased doesn't mean right either. It is quite possible to disagree with the conclusions of a dispassionate and unbiased argument, provided that you (a) have facts available to you that the person arguing does not or (b) disagree with explicit assumptions the person is working with.

        Example: people who believe in intellectual property as a fundamental but alienable right (like most people consider the right to personal property) might well agree with every fact in this paper. But if they disagree with the assumption that copyright is about maximizing utility, the argument while valid, is wrong. It wouldn't matter if he showed that copyright terms of any age were automatically harmful to the public good because their assumptions is that the public good does not take precedence over individual property rights in any situation.

        Now we all engage in wishful thinking, in which we can have our cake and eat it too. We can believe that rights are paramount, but that pursing individual rights always maximizes public utility. Or vice versa. But this is biased, passionate thinking. We have a powerful, unjustifiable and implicit axiom at work, which is that our preferred approach can give us everything we wish for. That is when we should be called out for bias.
  • prediction (Score:5, Insightful)

    by witte (681163) on Friday July 13 2007, @09:36AM (#19847989)
    Somebody suggests something that's on middle ground and reasonable to both sides. Watch him catch flak from both sides for not seeing it Their Way and therefore Wrong.
  • who's to profit? (Score:5, Interesting)

    by iplayfast (166447) on Friday July 13 2007, @09:42AM (#19848043) Homepage
    Most books (not talking about the superstars here) are out of print within 3 years. Most publishers, maintain the copyright on the book until it is no longer in print (or something like that). Then the copyright reverts back to the original author. However most publishers won't admit it is no long in print for years and years after it is long gone.

    Most authors have no problem with making copyright much shorter. I've heard values as low as 3 years, with 5 to 10 being the usual suggestion. It's only the Disney's and other superstars of the publishing world that want copyright longer then the normal human lifespan.
  • When it comes to "optimal," we have to consider more than just two parties, what the layman would call "the producer" and "the consumer." In an area as complex as content creation, copyright definitely harms more people than it helps. Many people will say that copyright helps "the producer," but in reality the monopoly of force that copyright provides helps the distributors more than the producer. It harms the consumer (prevents them from using their talents as they decide their time is worth), it harms other producers who also are restricted in how they can use their time most optimally as judged by themselves. It also hurts the original producer because many distribution markets are monopolized because of copyright.

    Look at what Prince just did [google.com] -- he disturbed the distribution monopoly's hold on music sales, and they're PO'd about it. Instead of hoping for sales for an album he knows is already online and in the hands of fans, he used the music he created as a "loss leader" to drive sales to a market he can control -- his own time. Instead of hoping to make millions on an album (which anyone can copy, using their own time, their own equipment), he can now make millions selling something unique -- HIS time in front of his fans.

    Albums are quickly becoming marketing structures to get people to attend your live performances. Many new bands give away their music via MySpace and PureVolume in hopes of getting people to come to their shows -- where they make the actual dollars doing actual labor on an ongoing basis.

    I'm an artist, and I produce some musical acts myself. I've convinced most, if not all, to tell their crowds to go and copy the album they buy at the show for friends, so that the band has a bigger pull the next time they're in town. My own brother's band, Maps & Atlases, is now doing that to great acclaim (MTV2, college radio, and a large tour pending) with hopes of making their money on beer cuts, T-shirt sales, etc. Copyright is useless to them. They won't sign a contract to the various labels chasing them unless they are allowed to distribute their music in any way they want (including Torrent, free MP3 on their sites, etc).

    What is optimal is a market that a producer and a consumer can both dictate what terms they want for a transaction. If an item has the chance to be infinitely available, the cost drops to zero. CDs can theoretically be nearly-infinitely available today. The cost should be close to zero. The time an artists can serve their fans is not infinitely zero (at least not in a live performance, face to face). This is where money can, and should, be made. That is optimal for all.
    • For example, let's take "Spiderman." Spiderman has been around a lot longer than 14 years, and recently Sony has made a ton of money for Marvel and its own investors with three hit movies. If Spiderman had already fallen into the public domain, those films might not have been made, and therefore that wealth not generated.

      Wealth wasn't generated. It was redistributed.

      Society would have been just fine without those movies.

    • by kebes (861706) on Friday July 13 2007, @10:35AM (#19848575) Journal
      Well, yes and no.

      The paper is clearly not a paper about mathematics. No 'new math' is being invented. But to say "there is no mathematics in the manuscript, only economics" is not at all right. The paper has plenty of math in it, used to analyze an economics question. That is like opening up a physics journal, looking at all the equations, and concluding "there is no mathematics in these manuscripts, only physics". Physics requires mathematics. Economics requires mathematics.

      no theorems are formulasted or proven
      Well, actually the paper has 13 theorems presented and proved. Again, these are not pure-mathematical theorems, they are economic theorems being proved using mathematical techniques.

      closer to accounting than to real mathematics
      I'm not sure what you mean by "real math." Accounting uses "real math." Engineering uses "real math." Analyzing the economics of copyright using rigorous equations and logical mathematical arguments is, in my estimation, "real math." He is using math as a tool, yes, but that doesn't make it "fake math." Moreover I have trouble believing that accounting typically involves setting out abstract theorems and proving them.