Comments on: Silly Government Policies Do Eventually Go Away

By: Export Controls (and Other Impediments to Free Trade) | The Technology Liberation Front

Thu, 18 Jun 2009 17:57:58 +0000

[...] As Tim Lee points out, some of the more ridiculous encryption controls have finally gone away, but as technology advances, more and more products will fall into a category (which are often based on technical performance) that requires a license. So, as American products improve, the costs of sending them overseas increases! One would think politicians supposedly worried about the trade deficit would see this as counterproductive to their goals of increasing US exports and reducing imports… but that’s politics! [...]

By: Tim Lee

Tim Lee — Wed, 16 Jul 2008 23:18:56 +0000

Don, obviously on the margin the DMCA increases the revenues of game manufacturers somewhat. The exact size of the increase is an empirical question that’s not easily answered, but my guess is that it’s a fairly small. Pirated games would still be illegal, and would therefore be inconvenient and carry a stigma. In any event, I agree with you that this is something best handled via contract, not copyright, law.

By: Don Marti

Don Marti — Wed, 16 Jul 2008 23:12:49 +0000

The DMCA keeps modding underground, and enough of a hassle to make most people more willing to buy the games.

Without anticircumvention, you could take your own console to a local store and get the mod chip installed ("I just want to put Linux on it."), or even order a pre-modded console online. Many players would choose to give up the manufacturer's warranty and the price of the chip plus install, in exchange for unlimited access to infringing games.

I still think anticircumvention is bad public policy. If a vendor wants a locked-down platform, they should enforce it contractually, by leasing not selling the hardware, and rely on contract law.

By: Tim Lee

Tim Lee — Wed, 16 Jul 2008 22:18:56 +0000

By: Don Marti

Don Marti — Wed, 16 Jul 2008 22:12:49 +0000

The DMCA keeps modding underground, and enough of a hassle to make most people more willing to buy the games.

Without anticircumvention, you could take your own console to a local store and get the mod chip installed ("I just want to put Linux on it."), or even order a pre-modded console online. Many players would choose to give up the manufacturer's warranty and the price of the chip plus install, in exchange for unlimited access to infringing games.

I still think anticircumvention is bad public policy. If a vendor wants a locked-down platform, they should enforce it contractually, by leasing not selling the hardware, and rely on contract law.

By: Tim Lee

Tim Lee — Wed, 16 Jul 2008 21:17:30 +0000

Don, I think it’s important not to overstate the importance of anti-circumvention law to anti-piracy efforts on consoles. The fundamental reason most people don’t engage in circumvention is because consoles are designed in a way that makes doing so inconvenient. The DMCA certainly helps somewhat by giving console makers a weapon to use against modders, but the vast majority of consumers won’t mod their consoles simply because doing so is more trouble than it’s worth. Lockdown may matter, but I don’t think the lockdown necessarily requires the DMCA.

By: Don Marti

Don Marti — Wed, 16 Jul 2008 20:43:03 +0000

Tim, would "Grand Theft Auto IV" exist without anticircumvention? The fact that it's out for consoles but not PCs implies that the lockdown matters to the company.

Without anticircumvention, online retailers could openly sell mod chips "to run Linux, nudge nudge wink wink."

True, anticircumvention shuts down more useful knowledge-building and economic activity than it promotes, but there is a constituency: makers of expensive games that appeal to wannabe thugs and are valuable offline, as hard-to-track infringing copies.

By: Tim Lee

Tim Lee — Wed, 16 Jul 2008 20:17:30 +0000

By: Don Marti

Don Marti — Wed, 16 Jul 2008 19:43:03 +0000

Tim, would "Grand Theft Auto IV" exist without anticircumvention? The fact that it's out for consoles but not PCs implies that the lockdown matters to the company.

Without anticircumvention, online retailers could openly sell mod chips "to run Linux, nudge nudge wink wink."

True, anticircumvention shuts down more useful knowledge-building and economic activity than it promotes, but there is a constituency: makers of expensive games that appeal to wannabe thugs and are valuable offline, as hard-to-track infringing copies.