November 2008

See my take on the election and the prospects for capitalism in today’s Wall Street Journal:

If Barack Obama ran for president by calling for a heavier hand of government, he also won by running one of the most entrepreneurial campaigns in history.

Will he now grasp the lesson his campaign offers as he crafts policies aimed at reigniting the national economy? Amid a recession, two wars, and a global financial crisis, will he come to see that unleashing the entrepreneur is the best way to raise the revenue he needs for his lofty priorities?

As TLF readers may already have noticed, Alex Harris, a law student at Stanford and Adjunct Analyst at the Competitive Enterprise Institute, has joined us as a contributor to TLF.

Alex, who was a Google Policy Fellow at CEI this past summer, has done a lot of top-notch blogging over on OpenMarket.org. He also wrote a very interesting essay that appeared in The American Spectator recently which argued against the reimposition the Fairness Doctrine. Alex’s writing focuses on issues ranging from civil liberties to intellectual property reform to competition policy. Alex is also the man behind the hilarious “Liberty Lolcats” series.

I’m sure Alex will be a great addition to TLF—in fact, his first TLF post ever (discussing shrinkwrap contracts) generated heated discussion and was linked to by Reason Hit & Run (more on this issue from Tim Lee here).

SAN JOSE, Nov. 7 – This morning I’ve posted two articles on BroadbandCensus.com about the Wireless Communications Association’s conference here.

Net Neutrality Advocates: Wireless Carriers’ Network Management Must be ‘Reasonable’

SAN JOSE, November 7 – Emboldened by their summertime victory against Comcast, advocates of network neutrality said Thursday that the next front in battle for the principle would be against wireless carriers who make “unreasonable” network management decisions. read more

FCC Chairman Kevin Martin’s Incredible Silicon Valley Wi-Fi Adventure

SAN JOSE, November 6 – It was Kevin Martin’s day to suck up praise from Silicon Valley. The chairman of the Federal Communications Commission – for about two more months – came to the Wireless Communications Association’s annual conference here on Thursday to be feted by many Googlers, including company co-founder Larry Page. read more

The Federal Trade Commission has announced that it will hold “a series of public hearings beginning on December 5, 2008, in Washington, D.C., to explore the evolving market for intellectual property (IP).”

It’s timely, then, that we will be having a forum Monday on a provocative book whose thesis is the title: Against Intellectual Monopoly. Co-author Michele Boldrin will present the book, and Rob Atkinson of the Information Technology and Innovation Foundation will critique it.

Highlighting one of the issues at Monday’s forum, the Arts+Labs blog points to Atkinson’s testimony about the value of American intellectual property on the export market. Over 50 percent of U.S. exports depend on some form of IP protection, according to Rob Atkinson.

It’ll be a good, interesting discussion. Register here now.

Legally enforceable? Discuss in the comments…

This afternoon at the New America Foundation, Jonathan Zittrain and I engaged in a spirited debate about his provocative new book, The Future of the Internet and How to Stop It. As always, Jonathan gave an us an interesting and highly entertaining show, and it was a great honor for me to be given the opportunity to provide some feedback about his book. I’ve been quite critical of the thesis that Jonathan sets forth in his book, and I have discussed my reservations in a lengthy book review and a series of follow-up essays here and elsewhere. (Part 1, 2, 3, 4, 5).

Jonathan opens with about 45 minutes of remarks and I come into the conversation around the 49 mark of the video. Michael Calabrese of NAF also has some comments about Jonathan’s book after I speak and then there is some interaction with the audience.

The Space Frontier Foundation issued this press release today, following our earlier call for NASA to fund its COTS-D program for demonstrating commercial human spaceflight capabilty.  

The Space Frontier Foundation today called on President-elect Barack Obama to use the innovation and drive of American entrepreneurs to “close the Gap” in U.S. human spaceflight after the Space Shuttle is retired in 2010.

President-elect Obama has promised $2 billion in additional funding for NASA to address the Gap, when the U.S. will be dependent upon Russia’s Soyuz for crew access to the International Space Station.  But two of the options proposed – extending Space Shuttle operations or accelerating the Constellation program – wouldn’t reduce the current estimate of a five year gap by much.

“Space leaders are considering three or four options for reducing the Space Gap, but only one reflects the spirit of positive change that Senator Obama campaigned on,” said Foundation Chairman Berin Szoka.  “According to NASA’s own estimates, flying the Shuttle beyond 2010 will cost at least $2 billion per year, so that only cuts the Gap by one year.  And $2 billion is a drop in the bucket for Constellation, at best helping to address shortfalls that the Congressional Budget Office just predicted will add another 18 months to the Gap.”

A third option is being considered by some at NASA, according to published reports:  Strip the Orion Crew Exploration Vehicle of the capability to support Lunar exploration, making it simpler and lighter, and supposedly easier to complete sooner.

“This idea is crazy, because it will strand NASA in low Earth orbit, instead of exploring the solar system,” said Foundation co-founder Rick Tumlinson.  “The whole point of the Vision for Space Exploration was to send NASA’s Lewis & Clarks further out into the frontier, to the Moon, Mars, and near-Earth asteroids, while the private sector takes over Earth orbit.  Cutting Orion back gives us ‘Gemini on steroids’, which would be a change for the worse.”

“The only option that makes sense is to use President-elect Obama’s promised $2 billion to catalyze as many as five new commercial human spaceflight companies that will compete to close the Gap using the safest, most capable and affordable system they can develop,” said Will Watson, Foundation Executive Director.

“Let’s not put all our eggs in one basket by pouring even more money into the Shuttle, an old system that’s on its last legs, or a controversial new program that’s already behind schedule,” Watson said.  “If we’re serious about closing the Gap and about making humanity’s presence in space economically sustainable, we need real change in how we put humans in space.  Let’s use this $2 billion to stimulate multiple entrepreneurial systems that will not only slash costs, improve safety, and close the Gap, but also help create a whole new space industry with new jobs here in America.”

With the Federal Communications Commission’s decision to allow “white spaces” devices at its open meeting on Election Day, it may make sense to ask: how are other nations approaching the issue of “white spaces”? Do other countries that make use of flexible and transferable spectrum licensing find that taking the approach that the FCC took on Tuesday — allowing unlicensed wireless devices to share vacant television frequencies — helps or hinders in getting more spectrum available for the “highest and best use”?

As readers of this blog are probably aware, I work part-time at the Information Economy Project at George Mason University School of Law, which sits at the intersection of academic research and telecommunications policy.

IEP is pleased to sponsor one of its “Big Ideas About Information” Lecture next Wednesday, November 12, at the law school in Arlington. The school is conveniently located at the Virginia Square/GMU Metro station, and is a short ride away from downtown Washington.

At 4 p.m. on November 12, William Webb, the head of research and development and the senior technologist at OFCOM, the British telecommunications regulator, will be speaking about this and other subjects. The title of his remarks is: “The Theory, Practice, Politics and Problems of Spectrum Reform: A U.K. Regulator’s Perspective,” and you can learn more about it here, or by clicking on the badge below.

Admission is free, but seating is limited. To reserve your spot, please email me, Drew Clark, at this address: iep.gmu@gmail.com

Over at OpenMarket.org, Wayne Crews has a good post arguing against Obama’s plan to appoint a “Technology Czar“:

Industries–and mere concepts like “technology”–do not need czars in Washington. Such enterprise needs to operate apart from this city. Indeed, even supposedly “deregulatory” Republicans were not reluctant to regulate the Internet. Bush favored federal privacy regulation, but never pushed it. His adminstration was also happy to target porn and “spam.” Legislation favored by the Republicans ran the gamut from gambling to cable regulation to media ownership. Right now, many firms in Washington are poised to push for federal privacy legislation to, as they say, pre-empt the states and get rid of the “patchwork” of privacy legislation with which they must deal. But the risk is merely trading 50 regulators for 51.

(Read the rest of the post here)

We already have plenty of regulators in Washington. Instead of appointing yet another messiah-like figure to solve our nation’s technological woes, the best thing for the technology industry would be a massive downsizing of the federal government’s role in regulating telecom companies, dictating privacy policies, and deciding what broadcasters can air.

OK, in fairness, this image is of the statue outside the Federal Trade Commission, not the Justice Department. But it’s always perplexed me – the image of a man restraining/abusing a horse.

The name of the statue is “Man Controlling Trade.” Why doesn’t he get on and ride?

The same thing one must ask about the Justice Department’s successful campaign to thwart the Google-Yahoo! deal. As Cord has noted, allowing these two companies to enjoy the benefits they perceived from combining their resources would have made them both better off and acted as a spur to others, competition that would have produced new innovation for consumers to enjoy. But the dead hand of government power has won out.

The Justice Department’s two-step on the grave of the deal gets it precisely wrong both in terms of defining the relevant market and in terms of the effect on competition and innovation.