August 2006

The electronic gaming sector chalked up another impressive First Amendment victory on Monday in the case of Electronic Software Association v. Hatch. [Here’s the full decision]. James M. Rosenbaum, Chief District Judge of the District Court of Minnesota, struck down as unconstitutional a Minnesota law that passed in May of this year. The Minnesota law was unique in that it sought to impose fines on the buyers rather than the sellers of games rated either “M” for Mature or “AO” for Adults Only under the industry’s voluntary ratings system. Other state and local laws that have been struck down in recent years imposed penalties mostly on game retailers who sold games rated M or AO to minors.

But the unique Minnesota approach met the same legal fate as those other laws. Echoing the previous video game industry decisions, Judge Rosenbaum declared that “video games are a protected form of speech under the First Amendment.” In response to the State of Minnesota’s plea that, when balancing the interests in this matter, the Court should consider “the lesser societal value” of “worthless, disgusting” video games, Judge Rosenbaum cut loose with this wonderful rejoinder: “The First Amendment… was certainly established to keep the government from becoming the arbiter of what constitutes ‘worthless’ or ‘disgusting’ speech. The Court declines the State’s invitation to enter into an evaluation of this kind.”

That’s pretty powerful stuff. But wait… it gets even better.

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There’s technology policy, and there’s how technology affects policy.

That’s why I found my Cato Institute colleague Chris Edwards’ recent Tax & Budget Bulletin so interesting.  He discusses a number of federal databases that bring some transparency to federal spending, including the Federal Assistance Award Data System and the Federal Audit Clearinghouse.  Between them, they reveal quite a bit of information about federal spending and the staggering number and amount of subsidies and grants handed out by the federal government each year.

Edwards also hails a proposal by Senator Tom Coburn (R-OK) to create a comprehensive Internet database of federal contracts, grants, and other payments.  It would be a great leap forward in terms of transparency about spending, like the Thomas system was for the legislative process.

Advocates from across the political spectrum want a government that “works.” Most believe that their perspective would “win” if the politics and government worked.  Whatever the case, transparency is widely agreed to be good–the more the better.

Thomas was an improvement.  Yet it hasn’t transformed the legislative process the way some might have hoped.  Lawmaking remains murky and confusing to the vast majority of the public.  Even if it was done well, a federal spending database probably wouldn’t transform the politics of government spending either.

Information technology will surely help, but transparency isn’t enough.  The twin problems that must be overcome are rational ignorance and rational inaction.  It’s hard to learn about government, and hard to affect it, so people make better uses of their time.  Operating a lemonade stand would be far more lucrative and enjoyable for most people than campaigning for a tax reduction.  (The piece linked here is a good discussion of rational ignorance.)

There are some efforts to defeat the twin plagues of ignorance and inaction.  GovTrack.us, for example, attacks ignorance with more information presented more accessibly than Thomas.  Wikipedia founder Jimmy Wales recently took after inaction with a wiki devoted to campaigns

My favorite–because I run it–is WashingtonWatch.com.  It displays pending legislation with its price-tag per person, per family, etc. and it gives visitors a chance to air their views.  A little run at ignorance, a little run at inaction.  Given time, it could blossom into transformed government.  In the meantime, the more transparency the better.

(Cross posted from Cato@Liberty)

For those of you who don’t read the variety of interesting posts over at Cato@Liberty – you really should broaden your horizons – I thought I’d briefly review some of the tech-relevant posts I’ve had over there recently. Most of them relate to the REAL ID Act:

But others deal with more general topics:

Thanks for tolerating this cavalcade of cross-posting.

Today, PFF released a short new paper in which I propose a voluntary “online code of conduct” for Internet operators to help us head-off further regulation of online speech and expression. With online speech under intense attack in Washington today, I believe it is essential that industry take a bold step to preemptively address the concerns that Congress wants to handle through new legislation and regulation.

The paper can be found online here and I have attached the text of the entire essay down below.

I look forward to comments and criticisms.

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I heard the rumors over the weekend and hoped that they were not true. But they were. “E3” the video game industry’s amazing annual trade show, is going to be scaled back starting next year. The big, beautiful, booming spectacle of hundreds of gaming companies coming together to show off their amazing new games, platforms and other inventions… is no more. It will be replaced by a smaller show at a smaller location with a smaller crowd.

As a gaming fanatic, it is sad news to be sure. I may be a 37-year-old father of two, but when I was walking the aisles of the “E3” show this May, it was a non-stop, “kid-in-the-world’s-greatest-(eye & ear)-candy-store” moment for me. (My complete review of this year’s show can be found here.

But, after the news set in–and after I had time to kill the pain by getting on XBOX Live and kicking a good friend’s butt in a heated match of “NCAA Football 2007”!–I started thinking more rationally about the economics of trade shows. Specifically, why do industries host trade shows at all? Is it really worth it for them?

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The BNetD case

by on August 1, 2006 · 12 comments

Prof. Picker has a post analyzing the copyright issues involved in last year’s BNetD case. In a nutshell, Blizzard makes popular games like Warcraft, Starcraft, and Diablo. They have an online matchmaking service called Battle.net for those games. One of the benefits of Battle.net (from Blizzard’s perspective) is that it checks your CD key and verifies that it’s (1) legitimate and (2) not already in use on Battle.net. This prevents someone from giving a single copy of the CD to 7 friends and then having an 8-way game on Battle.net.

But along comes the BNetD team, which creates server software that mimicks the functionality of Battle.net. BNetD fails to perform the CD key check that Battle.net performs, meaning that those without valid CD keys and those sharing CD keys can log on to a BNetD server. Blizzard sued the creators of the game, arguing that the program was an illegal circumvention device under the DMCA, as well as a violation of the software’s license agreement. Last year, Blizzard prevailed before the Eighth Circuit.

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