On the podcast this week, Ronald Rychlak, Mississippi Defense Lawyers Association Professor of Law and Associate Dean at the University of Mississippi School of Law, discusses his new article in the Mississipi Law Journal entitled, The Legal Answer to Cyber-Gambling. Rychlak briefly comments on the history of gambling in the United States and the reasons usually given to prohibit or regulate gambling activity. He then talks about why it’s so difficult to regulate internet gambling and gives examples of how regulators have tried to enforce online gambling laws, which often involves deputizing middlemen — financial institutions. Rychlak also discusses his legal proposal: create an official framework to endorse, regulate, and tax online gambling entities.

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My expectations of the Electronic Frontier Foundation are high. It’s an organization that does a tremendous amount of good, advocating for rights to freely use new technologies. Alas, a blog post about how good EFF is would be as interesting as a newspaper story about the lack of house fires in Springfield. So I’ll share how I feel EFF has gone wobbly on Bitcoin.

Bitcoin, the very interesting distributed digital currency that is inflation-, surveillance-, and confiscation-resistant, has been getting a lot of attention. EFF announced yesterday, though, that it would reverse course and stop accepting donations denominated in Bitcoin.

Its justifications, laid out in a blessedly brief and well-organized blog post, were three: Continue reading →

I have an op-ed up at Main Justice on FTC Chairman Leibowitz’ recent comment in response the a question about the FTC’s investigation of Google that the FTC is looking for a “pure Section Five case.”  With Main Justice’s permission, the op-ed is re-printed here:

There’s been a lot of chatter around Washington about federal antitrust regulators’ interest in investigating Google, including stories about an apparent tug of war between agencies. But this interest may be motivated by expanding the agencies’ authority, rather than by any legitimate concern about Google’s behavior.

Last month in an interview with Global Competition Review, FTC Chairman Jon Leibowitz was asked whether the agency was “investigating the online search market” and he made this startling revelation:

“What I can say is that one of the commission’s priorities is to find a pure Section Five case under unfair methods of competition. Everyone acknowledges that Congress gave us much more jurisdiction than just antitrust. And I go back to this because at some point if and when, say, a large technology company acknowledges an investigation by the FTC, we can use both our unfair or deceptive acts or practice authority and our unfair methods of competition authority to investigate the same or similar unfair competitive behavior . . . . ”

“Section Five” refers to Section Five of the Federal Trade Commission Act. Exercising its antitrust authority, the FTC can directly enforce the Clayton Act but can enforce the Sherman Act only via the FTC Act, challenging as “unfair methods of competition” conduct that would otherwise violate the Sherman Act. Following Sherman Act jurisprudence, traditionally the FTC has interpreted Section Five to require demonstrable consumer harm to apply.

But more recently the commission—and especially Commissioners Rosch and Leibowitz—has been pursuing an interpretation of Section Five that would give the agency unprecedented and largely-unchecked authority. In particular, the definition of “unfair” competition wouldn’t be confined to the traditional measures–reduction in output or increase in price–but could expand to, well, just about whatever the agency deems improper. Continue reading →

On the podcast this week, Steven Levy, a columnist for Wired and author of the tech classic Hackers, among many other books, discusses his latest book, In The Plex: How Google Thinks, Works, and Shapes Our Lives. Levy talks about Googliness, the attribute of silliness and dedication embodied by Google employees, and whether it’s diminishing. He discusses Google’s privacy council, which discusses and manages the company’s privacy issues, and the evolution of how the company has dealt with issues like scanning Gmail users’ emails, scanning books for the Google Books project, and deciding whether to incorporate facial recognition technology in Google Goggles. Levy also talks about prospects for a Google antitrust suit and the future of Google’s relationship with China.

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To keep the conversation around this episode in one place, we’d like to ask you to comment at the web page for this episode on Surprisingly Free. Also, why not subscribe to the podcast on iTunes?

My colleague Cord Blomquist brought to my attention this amazing info-graphic, which depicts the stunning volume of activity unfolding every 60 seconds online. [Click on the image to enlarge it.] It appears the graphic was created by Go-Globe.com, a web design firm, although I’ve not been able to find the original. [Update: The folks at Go-Globe got in touch with me and sent me the original link. Thanks Go-Globe!] Cord found it in this collection of “35 Cool Infographics for Web and Graphic Designers.”  I find this graphic especially interesting because it helps bolster the work I’ve been doing lately with Jerry Brito about the challenges faced by information control regimes. [See our recent essays on the topic: 1, 23, 4, 5.]  Most recently, I put together a list of “Some Metrics Regarding the Volume of Online Activity” but I’d been searching for a really excellent visualization to help tell this story and this is probably the best one I’ve ever seen. Absolutely amazing numbers.

I enjoyed this Wall Street Journal essay by Daniel H. Wilson on “The Terrifying Truth About New Technology.”  It touches on many of the themes I’ve discussed here in my essays on techno-panics, fears about information overload, and the broader battle throughout history between technology optimists and pessimists regarding the impact of new technologies on culture, life, and learning. Wilson correctly notes that:

The fear of the never-ending onslaught of gizmos and gadgets is nothing new. The radio, the telephone, Facebook — each of these inventions changed the world. Each of them scared the heck out of an older generation. And each of them was invented by people who were in their 20s.

He continues:

Young people adapt quickly to the most absurd things. Consider the social network Foursquare, in which people not only willingly broadcast their location to the world but earn goofy virtual badges for doing so. My first impulse was to ignore Foursquare—for the rest of my life, if I have to.

And that’s the problem. As we get older, the process of adaptation slows way down. Unfortunately, we depend on alternating waves of assimilation and accommodation to adapt to a constantly changing world. For [developmental psychologist Jean] Piaget, this balance between what’s in the mind and what’s in the environment is called equilibrium. It’s pretty obvious when equilibrium breaks down. For example, my grandmother has phone numbers taped to her cellphone. Having grown up with the Rolodex (a collection of numbers stored next to the phone), she doesn’t quite grasp the concept of putting the numbers in the phone.

Why are we so nostalgic about the technology we grew up with? Old people say things like: “This new technology is stupid. I liked (new, digital) technology X better when it was called (old, analog) technology Y. Why, back in my day….” Which leads inexorably to, “I just don’t get it.”

There’s a simple explanation for this phenomenon: “adventure window.” At a certain age, that which is familiar and feels safe becomes more important to you than that which is new, different, and exciting. Think of it as “set-in-your-ways syndrome.”

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Last week the Senate Commerce Committee passed–with deep bi-partisan support–the Public Safety Spectrum and Wireless Innovation Act.

The bill, co-sponsored by Committee Chairman Jay Rockefeller and Ranking Member Kay Bailey Hutchison, is a comprehensive effort to resolve several long-standing stalemates and impending crises having to do with one of the most critical 21st century resources: radio spectrum.

My analysis of the bill appears today on CNET. See “Spectrum reform, public safety network move forward in Senate.”

The proposed legislation is impressive in scope; it offers new and in some cases novel solutions to more than half-a-dozen spectrum-related problems, including: Continue reading →

The Supreme Court will be issuing its opinion in the case Brown v. Entertainment Merchants Association any day now (TLF’s previous coverage is here). The case was previously known as Schwarzenegger v. Entertainment Merchants Association, but Mr. Schwarzenegger has been trying to stay out of court of late. I was just sent a draft of the statement that the Eagle Forum Education & Legal Defense Fund, which filed an amicus brief in the case, is planning to release if the decision goes its way. The Eagle Forum Education & Legal Defense Fund was founded by Phyllis Schlafly.

[Not really. This is a joke (but the quotes are true).]
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Have you heard about 3D printing yet? Bre Pettis, founder of Makerbot, a company that sells a $1300 home 3D printer, was Wednesday night’s guest on the The Colbert Report. And back in April, Public Knowledge kicked off what’s sure to be a long public debate over the legal and policy questions raised by 3D printing with a half-day conference here in D.C.

Also called “additive manufacturing,” 3D printing is the process of “printing” a three-dimensional object layer-by-layer with equipment that’s not much different from ink-jet printers. Combine 3D printing with 3D scanning and you’ve got the first real step towards something that seems at first like total science fiction: A Star Trek replicator.

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This morning, the Federal Communications Commission (FCC) released its eagerly-awaited “Future of Media” report. The 475-page final report is entitled, “The Information Needs of Communities: The Changing Media Landscape in a Broadband Age.”  [Here’s a 2-page summary and the official press release.]  The report is a bit overdue; the effort was supposed to be wrapped up late last year. Comments in the proceeding were filed over a year ago. Here are some of the major ones. Also, here is the 80-page monster filing that I submitted with my former PFF colleagues Berin Szoka and Ken Ferree.

Quick refresher… Federal policymakers have been taking a greater interest in the health of media and journalism in recent years. In 2009, the Senate held hearings about “the future of journalism,” and Senator Benjamin L. Cardin (D-MD) introduced the “Newspaper Revitalization Act,” which would allow newspapers to become tax-exempt non-profits in an effort to help them stay afloat. In 2010, the Federal Trade Commission hosted two workshops asking “How Will Journalism Survive the Internet Age?” and also released a staff report on “Potential Policy Recommendations to Support the Reinvention of Journalism.” (As I noted here and here, the FTC was blasted for that report and quickly backed off the issue. The agency has since gone radio silent on the issue.) The FCC also launched its “Examination of the Future of Media and Information in a Digital Age” in 2010, and today’s report wraps up their work on this front.

My first reaction after scanning the FCC’s final report is one of relief. For those of us who care about the First Amendment, media freedom, and free-market experimentation with new media business models, it feels like we’ve dodged a major bullet. The report does not recommend sweeping regulatory actions that might have seen Washington inserting itself into the affairs of the press or bailing out dying business models.

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