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At the same time FilmOn, an Aereo look-alike, is seeking a compulsory license to broadcast TV content, free market advocates in Congress and officials at the Copyright Office are trying to remove this compulsory license. A compulsory license to copyrighted content gives parties like FilmOn the use of copyrighted material at a regulated rate without the consent of the copyright holder. There may be sensible objections to repealing the TV compulsory license, but transaction costs–the ostensible inability to acquire the numerous permissions to retransmit TV content–should not be one of them. Continue reading →

So, the GAO recently released a report on the wireless industry and found that:

The biggest changes in the wireless industry since 2000 have been consolidation among wireless carriers and increased use of wireless services by consumers. Industry consolidation has made it more difficult for small and regional carriers to be competitive. Difficulties for these carriers include securing subscribers, making network investments, and offering the latest wireless phones necessary to compete in this dynamic industry. Nevertheless, consumers have also seen benefits, such as generally lower prices, which are approximately 50 percent less than 1999 prices, and better coverage.

Now, if you are a self-described “consumer advocate,” I would hope the bottom line here is pretty straightforward and refreshing: Prices fell by 50% in 10 years. That alone is an amazing success story. But that’s not the end of the story. The more important fact is that prices fell by that much while innovation in this sector was also flourishing.  Do you remember the phone you carried in your pocket — if you could fit it in your pocket at all — ten years ago?  It was a pretty rudimentary device.  It made calls and… well… it made calls.  Now, think about the mini-computer that sits in your pocket right now.  Stunning little piece of kit. It can text. It can do email. It can get Internet access. You can Twitter on it. Oh, and you can still make calls on it (but who wants to do that anymore!)

The point is, this is a great American capitalist success story that everyone — especially “consumer advocates” — should be celebrating.  So, what does Public Knowledge president Gigi Sohn have to say?

“These trends do not bode well for consumers, despite any benefits of the moment,” she told Ars Technica.

Wait, what?  Continue reading →

by Adam Thierer & Berin Szoka

We’re hoping that the Government Accountability Office (GAO) has made some sort of mistake, because it’s hard to believe its latest findings about the paperwork burden generated by Federal Communications Commission (FCC) regulatory activity. In late January, the GAO released a report on “Information Collection and Management at the Federal Communications Commission” (GAO-10-249), which examined information collection, management, and reporting practices at the FCC. The GAO noted that the FCC gathers information through 413 collection instruments, which include things like: (1) required company filings, such as the ownership of television stations; (2) applications for FCC licenses; (3) consumer complaints; (4) company financial and accounting performance; and (5) a variety of other issues, such as an annual survey of cable operators.  (Note: This does not include filings and responses done pursuant to other FCC NOIs or NPRMs.)

Regardless, the FCC told the GAO that it receives nearly 385 million responses with an estimated 57 million burden hours associated with the 413 collection instruments. A “burden hour” is defined under the Paperwork Reduction Act as “the time, effort, or financial resources expended by persons to generate, maintain, or provide information to a federal agency.” And the FCC is generating 57 million of ‘em! Even though we are frequently critical of the agency, these numbers are still hard to fathom. Perhaps the GAO has made some sort of mistake here. But here’s what really concerns us if they haven’t made a mistake. Continue reading →

Libertarian folk-hero Rep. Ron Paul has apparently convinced (WSJ) House Financial Services Committee Chairman Barney Frank to implement his proposal (HR 1207) for an audit of the Federal Reserve by the end of 2010. Paul’s Bill would expand existing audits considerably because, under current law, the Government Accountability Office,

can’t review most of the Fed’s monetary policy actions or decisions, including discount window lending (direct loans to financial institutions), open-market operations and any other transactions made under the direction of the Federal Open Market Committee. It also can’t look into the Fed’s transactions with foreign governments, foreign central banks and other international financing organizations… While the bill only seeks a one-time audit, [Paul] said he wants the Fed to be audited at least annually with the report — and details of its transactions — disclosed publicly.

I’d like to up the ante: Let’s make sure that any data disclosures are made in eXtensible Business Reporting Language (XBRL), as Mark Cuban and our own Jim Harper have previously suggested. Such machine-readable disclosures would be much more useful, because the data could be analyzed or “mashed-up” with other data sets to answer questions we might not even be able to formulate today.

PFF Adjunct Fellow Mike Palage, who served on the ICANN board from 2003 to 2006, filed these comments (PDF) on the NTIA’s recent Notice of Inquiry regarding ICANN’s future.  Mike’s four key points were as follows:

  1. ICANN’s Periodic Review of its internal operations and supporting organizations has failed, and has become nothing more than a “perpetual motion machine of public comments and documentation producing no meaningful results.” Only a second Evolution and Reform Process can solve ICANN’s current deficiencies;
  2. ICANN must hardcode into its policies and its contracts the principle that its policies cannot supersede national laws;
  3. ICANN must cease any operational role in technical infrastructure as required by its bylaws and focus instead on its mission as a technical coordinator; and
  4. Congress must avoid “kicking the JPA can down the road” and instead provide much-needed leadership by creating a solid foundation for ICANN 3.0 in legislation after proper consultation with the Government Accountability Office.

Continue reading →

I’ve been working closely with PFF’s new Adjunct Fellow Michael Palage on ICANN issues.  Here is his latest note , from the PFF blog.

ICANN recently proclaimed that the “Joint Project Agreement” (one of two contractual arrangements that ICANN has with the U.S. Department of Commerce (DoC) governing ICANN’s operations) will come to an end in September 2009. ICANN’s insistence on this point first became clear back in October 2008 at ICANN’s Washington, D.C. public forum on Improving Institutional Confidence when Peter Dengate Thrush, Chair of ICANN’s Board declared:

the Joint Project Agreement will conclude in September 2009. This is a legal fact, the date of expiry of the agreement. It’s not that anyone’s declared it or cancelled it; it was set up to expire in September 2009.

ICANN’s recently published 2008 Annual Report stuck to this theme:

“As we approach the conclusion of the Joint Project Agreement between the United States Department of Commerce and ICANN in September 2009…” – His Excellency Dr. Tarek Kamel, Minister of Communications and Information Technology, Arab Republic of Egypt
“Concluding the JPA in September 2009 is the next logical step in transition of the DNS to private sector management.” – ICANN Staff
“This consultation’s aim was for the community to discuss possible changes to ICANN in the lead-up to the completion of the JPA in September 2009.” – ICANN Staff

ICANN’s effort to make the termination of the JPA seem inevitable is concerning on two fronts. First, ICANN fails to mention that the current JPA appears to be merely an extension/revision of the original 1998 Memorandum of Understand (MoU) with DoC, which was set to expire in September 2000. Thus, because the JPA does not appear to be a free-standing agreement, but merely a continuation of MOU-as Bret Fausset argues in his excellent analysis of the relationship between the MoU and the JPA (also discussed by Milton Mueller). Therefore, it would be more correct to talk about whether the “MoU/JPA”-meaning the entire agreement as modified by the most current JPA-will expire or be extended. Continue reading →