As the Wall Street Journal is already reporting, today eBay sustained an important win in its long-running dispute with Tiffany over counterfeit goods sold through its marketplace.  (The full opinion is available here.)

I wrote about this case as my leading example of the legal problems that appear at the border between physical life and digital life, both in “The Laws of Disruption” and a 2008 article for CIO Insight.

To avoid burying the lede, here’s the key point:  for an online marketplace to operate, the burden has to be on manufacturers to police their brands, not the market operator.  Any other decision, regardless of what the law says or does not say, would effectively mean the end of eBay and sites like it.

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From our bulletin board at home:

April Fool's Cartoon About Freedom to Innovate

This cartoon takes its inspiration from a conversation—a real gut-buster!—that I had with my kids. April would have foolishness enough, given that dread date smack in its middle, without April Fool’s Day. You can thus take this joke seriously.

[Crossposted at Agoraphilia, TechLiberation Front.]

Broadband Baselines

by on April 1, 2010 · 0 comments

The national broadband plan drafted by Federal Communications Commission staff has a lot of goals in it. Goals for broadband infrastructure deployment include:

  1. Make broadband with 4 Mbps download speeds available to every American
  2. Over the long term, have broadband with 100 Mbps download and 50 Mbps upload speeds available to 100 million American homes, with 50 Mbps downloads available to 100 million homes by 2015
  3. Have the fastest and most extensive wireless broadband networks in the world
  4. Ensure that no state lags significantly behind in 3G wireless coverage
  5. Ensure that every community has access to 1 Gbps broadband service in institutions like schools, libraries, and hospitals

The plan also outlines a number of policy steps that the FCC and other federal agencies could take to help accomplish these goals.

So far, so good. But to truly hold federal agencies accountable for achieving these objectives, we need more than goals, measures, and a list of policy proposals. We also need a realistic baseline that tells us how the market is likely to progress toward these goals in the absence of new federal action, and some way to determine how much the specific policy initiatives affect the amount of the goal achieved.

Here’s what will happen in the absence of a well-defined baseline and analysis that shows how much improvement in the goals is actually caused by federal policies: The broadband plan announces goals. The government will take some actions. Measurement will show that broadband deployment improved, moving the nation closer to achieving the goals. The FCC and other decisionmakers will then claim that their chosen policies have succeeded, because broadband deployment improved.

But in the absence of proof that the policies cause a measurable change in outcomes, this is like the rooster claiming that his crowing makes the sun rise. Scientists call this the “post hoc, ergo propter hoc” fallacy: “B happened after A, therefore A must have caused B.” (Brush up on your Latin a little more, and you’ll even find out what Mercatus means. But I digress.)

Enough abstractions. Let me give a few examples.

The first goal listed above is to ensure that all Americans have access to broadband with 4 Mbps download speeds. In his second comment on my March 17 “Broadband Funding Gap” post, James Riso notes that the plan acknowledges that 5 out of the 7 million households that currently lack access to 4 Mbps broadband will soon be covered by 4th generation wireless. That means coverage for 83 percent of the households that lack 4 Mbps broadband is already “baked into the cake.” 

Accurate accountability must avoid giving future policy changes credit for this increase in deployment, because it was going to happen anyway.  (Of course, policymakers need to avoid taking steps that would discourage this deployment, such as levying the 15 percent universal service fee on 4th generation wireless.) The relevant question for evaluating future policy changes is, “How do they affect deployment to the remaining 2 million households?”

Similarly, the goal of 50 Mbps to 100 million households by 2015 seems to have been chosen because cable and fiber broadband providers indicate that they plan to cover more than that many homes by 2013 with broadband capable of delivering those speeds (pp. 21-22). Future policy initiatives should get zero credit for contributing toward this goal unless analysis demonstrates that the initiatives increased deployment of very high speed broadband over and above what the companies were already planning.

If you think this point is so basic that it’s not worth mentioning, you haven’t read enough government reports. Post hoc, ergo propter hoc is endemic, and not just on technology-related topics. For example, both sides regularly display this fallacy whenever the unemployment figures get released: “Unemployment increased after Obama’s election, therefore his administration caused the unemployment.” “The recession started when Bush was president, therefore his administration caused the unemployment.” These are at best hypotheses whose truth, untruth, and quantititive significance needs to be established by analysis that controls for other factors affecting the results.

Just take this as an advance warning on reporting results of the national broadband plan: Tone down the triumphalism.  

Note: For those of you who just can’t get enough discussion of the national broadband plan, Jerry Brito and I will have a dialog on other aspects of the plan in a future podcast that will be available here on Surprisingilyfree.com.

Here are a few fake tech news headlines I wish I’d seen today:

  • Foreign Affairs: Google, Taiwan Announce “Merger of Equals” to Counter China
  • SFGate: Facebook Gives in to Privacy Demands; All Information Now Inaccessible by Default
  • CongressDaily: Congress to Vote by Twitter, Hashtag Landgrab Begins for Clever Bill Acronym Titles
  • Broadband Breakfast: FCC Nationalizes Broadband Providers, Free Press Says “Important First Step”
  • Worker’s Daily: Obama to Create Department of Journalism, Promises End to “Media Meddling” in Politics
  • Federal Times: FCC Asserts Ancillary Jurisdiction over 2010 Census, Claims Measuring Population First Step in Measuring Broadband Use (Adam Marcus)
  • SearchEngineWatch: Yahoo!’s “e.g.” Browser Latest “i.e.” Competitor, Privacy Advocates Demand Yodeling Opt-In (YaHOOOOOOOOOOO!)
  • Privacy Times: Google Critics Scott Cleland, Jeff Chester Form Bi-Partisan “Elgoog Institute” to Expose Google Evil
  • London Times: Microsoft Pulls Windows Operating System from Europe to Protest “Great Wall of Brussels” Antitrust Protectionism
  • CircleID: ICANN-DY Wall Calendar with Hotties of Internet Governance, CEO Beckstrom to Reprise Scott Brown Centerfold
  • MediaPost: FTC Bans Blogging, Wikipedia as “Unfair” & “Deceptive”
  • The Hill: Court Rules Bush Wiretapping Illegal; Obama Administration Vows Not to Reveal Own Illegal Wiretaps
  • E-Commerce Today: Amazon.com Relocates Facilities to Amazon River to Avoid U.S. State Sales Taxes, Too Late for Carnaval
  • Communications Daily: Hugo Chavez Rumored Replacement for Retiring FCC Commissioner, Promises Not to Regulate Internet
  • Washington Post: Obama Makes Good on Campaign Transparency Promises, Installs 24/7 Webcams Throughout White House Continue reading →

CNet‘s Declan McCullagh has a great piece about the politics of actually implementing the ECPA reform principles announced today by the Digital Due Process Coalition, which PFF, CEI and Net Coalition all proudly signed on to along with a number of other think tanks, advocacy groups, and leading tech companies.  Ryan and I explained earlier today how these proposals would Protect Americans’ Privacy by Restoring Constitutional Limits to Government.

As I note at the end of the article:

“This is an opportunity for President Obama to show that he understands President Reagan’s central lesson: ‘Government is not the solution to our problem—government is the problem,'” says Berin Szoka, an attorney at the Progress and Freedom Foundation. “These proposals offer a sensible, long-overdue way of protecting us from the real Big Brother, our government, without crippling law enforcement or the private companies that keep giving us all wonderful new content and services, mostly for free.”

This is a point Adam Thierer and I have made repeatedly in the debate over how to deal with concerns about online privacy. Check out our/my key pieces on this point:

Ever since he’s been blogging, Scott Cleland’s blogging has been in overdrive. However, anyone willing to look behind the curtain of his latest post will discover that many of the attributes of Scott Cleland are attributes that are shared by the Zodiac Killer.

  • First, Scott Cleland, like the Zodiac Killer, has a face. Eyes, nose, mouth—they’re all there. They are alike in this respect—Scott Cleland and the Zodiac Killer are both, unrepentantly, people with faces.
  • Second, Scott Cleland, like the Zodiac Killer, speaks English. We know this from his blog posts—which are written in English—the same language the Zodiac killer used during his murderous spree in the San Francisco Bay Area between December 1968 and October 1969.
  • Third, delving more deeply into the language of the Zodiac Killer and Scott Cleland, both use articles like “the”; “a”; and “an”. An equal propensity to use prepositions inhabits the writing styles of Scott Cleland and the Zodiac Killer.
  • Fourth, like the top suspect in the Zodiac Killer case, DNA evidence does not implicate Scott Cleland. Diabolically, he has done nothing to indicate his participation in these crimes.

(Dropping the imitative send-up) Scott’s recent post implicating Google as similar to China is probably best described as conflation, a logical fallacy in which similarities between two distinct entities collapse them together.

Scott has many similarities to the Zodiac Killer, but lacks the one that matters: he never killed anybody.

Likewise, Google has many similarities with the Chinese government—all organizations do—but it lacks the one that matters: Google makes no claim to exclusive power to initiate force. That is the hallmark of government which is what makes government so dangerous. Related: Unlike China, Google never killed anybody.

In the struggle between Google and China, there is no moral equivalency. China oppresses a billion people. Google enlightens.

Just in case you missed Adam Thierer’s unhinged rant, My Swan Song Moment: I Will Take Elmo Hostage in the Name of First Amendment Freedoms!, you’ll want to go back and read it after watching this:

Not exactly a highpoint in the history of deliberative democracy or rhetoric (in the best sense), but I suppose it beats wading through the 376 page National Broadband Plan… Anyway, given all this talk about increasing funding for the Corporation for Public Broadcasting as a way of “saving media,” I do have to wonder: Just how far will we go in allowing taxpayer-funded muppets to rally public support for this (or future) administration’s policy agenda? I mean, if the White Houe had put Oscar the Grouch on national TV to lobby for health care socialization “reform” by explaining whatever trash-related chronic medial conditions are responsible for making him so darn cranky, I think some folks would rightly have been upset.

Yes, I’m trying to be funny here but, seriously, where’s the line between harmless fun and… inappropriate use of taxpayer-funded resources for political purposes? I’m not sure. The administration probably crossed that line last September when President Obama gave a speech to kids and the Department of Education sent a proposed lesson plan to schools nationwide (later withdrawn) suggesting that pre-K-6 teachers have their students “write letters to themselves about what they can do to help the president.” But is Elmo’s meeting with Chairman Genachowski ok as a way of rallying kids—and, more importantly, their parents and everyone else who finds it cute—around a policy agenda? Any thoughts on where this line should be drawn?

By Ryan Radia & Berin Szoka

Today a broad array of civil liberties groups, think tanks, and technology companies launched the Digital Due Process coalition. The coalition’s mission is to educate lawmakers and the public about the need to update U.S. privacy laws to better safeguard individual information online and ensure that federal privacy statutes accurately reflect the realities of the digital age.

Over 20 organizations belong to the Digital Due Process coalition, including such odd bedfellows as AT&T, Google, Microsoft, the Center for Democracy & Technology, the American Civil Liberties Union, the Electronic Frontier Foundation, The Progress & Freedom Foundation (where Berin works), the Competitive Enterprise Institute (where Ryan works), the Internet Technology & Innovation Foundation, Citizens Against Government Waste, and Americans for Tax Reform. The full member list is available at the coalition’s website.

Amidst the heated tech policy wars, it’s not every day that such a diverse group of organizations comes together to endorse a unified set of core principles for legislative reform. Over two years in the making, the Digital Due Process coalition, spearheaded by the Center for Democracy & Technology, is a testament to the broad consensus that’s emerged among business leaders, activists, and scholars regarding the inadequacies of the current legal regime intended to protect Americans’ privacy from government snooping and the need for Congress to revisit decades-old privacy statutes. It also represents a revival of a bipartisan consensus on the need for reform reached back in 2000, when the Republican-led House Judiciary Committee voted 20-1 to approve very similar reforms (HR 5018).

Today, in the digital age, robust privacy laws are more important than ever. That’s because U.S. courts have been unwilling to extend the Fourth Amendment’s protection against unreasonable search and seizure to individual information stored with third parties such as cloud computing providers. Thus, while government authorities must get a search warrant based on probable cause before they can lawfully rifle through documents stored in your desk, basement, or safe deposit box, information you store on the cloud enjoys no Constitutional protection. (Some legal scholars argue this interpretation of the Fourth Amendment, referred to as the Third Party Doctrine, is outdated and deficient. See, for example, Jim Harper’s excellent 2008 article in the American University Law Review.)

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As mentioned last week, in a new series of essays, PFF scholars will be examining proposals that would have the government play a greater role in sustaining struggling media enterprises, “saving journalism,” or promoting more “public interest” content. With many traditional media operators struggling, and questions being raised about how journalism in particular will be supported in the future, Washington policymakers are currently considering what role government can and should play in helping media providers reinvent themselves in the face of tumultuous technological change wrought by the Digital Revolution. We will be releasing 6 or 7 essays on this topic leading up to our big filing in the FCC’s “Future of Media” proceeding (deadline is May 7th).  And here’s a podcast Berin Szoka and I did providing an overview of the series.

In the first installment of the series, Berin and I critiqued an old idea that’s suddenly gained new currency: taxing media devices or distribution systems to fund media content. In the second installment, “The Wrong Way to Reinvent Media, Part 2: Broadcast Spectrum Taxes to Subsidize Public Media,” I discuss proposals to impose a tax on broadcast spectrum licenses to funnel money to public media projects or other “public interest” content or objectives. Such a tax would be fundamentally unfair to broadcasters, who are struggling for their very survival in the midst of unprecedented marketplace turmoil.  Moreover, such a tax is unnecessary in light of the many other sources of “public interest” programming available today. Finally, even if the government creates or subsidizes wonderful, civic- and culturally-enriching content, there’s no way to force people to consume it.  Nor should government force such media choices upon the public. There’s no good reason for government to be socially-engineering media choices through taxes.

I’ve attached the entire essay down below.

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PFF recently started a new “TechCast” podcast series and the topic for one of our first episodes was about the new series of essays that we have coming out about “The Wrong Way to Reinvent Media.” In this series, we’re examining proposals that would have the government play a greater role in sustaining struggling media enterprises, “saving journalism,” or promoting more “public interest” content. We’re concerned about the prospect of central planning for media or a “public option” for the press.

Berin Szoka and I recently sat down with PFF’s press director Mike Wendy to chat about our concerns in this brief 5-minute podast:

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MP3 file: PFF TechCast #1 – Overview of Wrong Way to Reinvent Media Series (3-28-2010)