IP

Sharis Pozen

DoJ Assistant AG Sharis Pozen

Sharis Pozen
DoJ Assistant AG Sharis Pozen

Jeffrey Tucker recently discussed the Department of Justice’s decided to launch antitrust litigation against Apple and five of the Big Six publishers — Hachette, HarperCollins, Macmillan, Penguin, and Simon & Schuster, but not Random House — for alleged price fixing. Three of them — Hachette, HarperCollins, and Simon & Schuster — decided on the same day to settle straight away. The alleged sin was that Apple and the publishers decided to go with the agency pricing model in which the publishers get to set the prices for their books in the iBooks Store, while Apple takes a 30% cut.

As you’d expect, I’m with Jeffrey Tucker in believing that price fixing, collusion, cartels should not be illegal. In a free market, these practices are not stable and will end up harming the companies in the long run if they dissatisfy customers. What I want to highlight in this news post is not what so much what libertarian justice has to say about the matter but some bad economic-tech journalism about the business side.

I recently read this article on Mashable by Lance Ulanoff, the site’s Editor-in-Chief:

How Steve Jobs Got Apple Into Trouble Over Ebooks.”

Wow, is this guy clueless.

And if Steve Jobs really thought Amazon screwed up in alienating major publishers by not adopting the agency model, he was clueless as well. Amazon is WINNING.

Jobs pushed the agency model on the publishers? I don’t think so. They preferred that model but couldn’t get Amazon to go along with it without Apple’s help. It’s the screw-your-customers model and it wouldn’t have been good for the publishers over the long haul. They want high ebook prices so that they can hang onto their outdated IP-dependent business model of selling paperbacks and hardcovers in big-box brick-and-mortar stores for as long as possible.

That antiquated business model is particularly insane in the United States. The origin of the current wasteful publisher/brick-and-mortar bookstore relationship is fascinating. The strip-and-return system has its origin in the Great Depression (thanks Fed!).

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EDITORIAL | Why Space Is So Important Thumbnail
Robert Zubrin

The answer: freedom and opportunity.

Dr. Robert Zubrin has long been a strong proponent of Mars colonization and he has put forth a strategy for doing so with existing technology on the (relative) cheap. Hint: We don’t need to build big spaceships in orbit or colonize the moon first. If you’re interested in this subject, I recommend you check out his books Entering Space, The Case for Mars, and How to Live on Mars. These books are understandable to the layman but also include enough nitty-gritty details and formulas to satisfy the more mathematically inclined enthusiast, and they make excellent resources for science fiction authors.

In the brief video below, Zubrin is answering a question about his book, How to Live on Mars, at the 28th Annual International Space Development Conference, held March 28-31, 2009. Watch it and then continue on after the break for my thoughts on what he had to say.

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Jeffrey Tucker

Jeffrey Tucker

Jeffrey Tucker
Jeffrey Tucker

Jeffrey Tucker is the publisher and executive editor of . He is the author, most recently, of Bourbon for Breakfast: Living Outside the Statist Quo (2010) and It’s a Jetsons World: Private Miracles and Public Crimes (2011). The former editorial vice president of the Ludwig Von Mises Institute, he is an adjunct scholar with the Mackinac Center for Public Policy, a research fellow with the Acton Institute, and a faculty member of Acton University.

Allen Mendenhall: Jeff, this interview is exciting for me. It’s something of a reversal of the interview that we did together in January 2011. This time, I’m interviewing you. I’d like to start off by asking about your two recent books, Bourbon for Breakfast and It’s a Jetsons World. Tell the readers of this site a little about both books.

Jeffrey Tucker: Both books cover the unconventional side of private life as governed by the market and human volition. I guess you could say that this is my beat. I’m interested in the myriad ways in which the government’s central plan — and there is such a thing — has distorted and changed our lives, and also interested in the ways we can get around this plan and still live fulfilling lives. I take it as a given that everything that government does is either useless or destructive or both. The government does a tremendous number of things, so this is a huge area. Bourbon is more focused on the rottenness of the state and its harm, while Jetsons is more the marvelous things that markets do for us. Neither subject gets the attention they deserve.

AM: These books are available for free online in PDF and EPUB formats. Explain why you’ve chosen to make your work freely and widely available.

JT: Every writer wants to be read, so it only makes sense for all writers to post their material. Of course publishers tend to intervene here with promises of royalties in exchange for which you become their slave for the rest of your life plus 70 years (that’s when they dance on your grave). This is the essence of copyright. It is a bad deal for writers. Those who go along with it these days nearly always regret it later. If they actually earn royalties — and very few actually do — it is likely they would have earned more had the material not been withheld pending payment. The bestselling books of 2012 — the Hunger Games series — are posted by pirates everywhere, even against publisher wishes. But, you know, this is starting to change. Publishers are gradually seeing the point to posting material online. Sadly, they aren’t budging on the copyright issue, which is really pathetic. No libertarian should ever publish anything with any institution that is not willing to embrace a very liberal policy on reprints, and one that is likely enforceable such as Creative Commons — Attribution. Meanwhile, the government is using copyright, a phony form of property rights, to step up its despotic control over the digital age. The situation is extremely dangerous. One hundred years from now, they will be laughing at our times and poking fun at how the anachronistic state tried its best to thwart progress.

AM: You strike me as an optimist. Is that true?

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The Hunger Games
The Hunger Games

So you want to see Hunger Games when it comes out on Thursday at midnight? It’s not likely that you will get the chance. Tickets in my community have been sold out for weeks. In fact, the first 10 showings of the film are sold out. This disappoints me greatly because it is one of the few teen flicks I’ve really wanted to see.

The whole phenomenon seems set to make the Harry Potter hysteria and the Twilight mania seem like warm-up acts. Ask around among teens, and you will hear this confirmed. This is a true example of mass frenzy. Actually, the whole thing seems like a modern “madness of crowds.” It’s “pandemonium,” as People magazine put it.

Both the plot line and the marketing genius have lessons for our time.

Based on a book by Suzanne Collins that came out in 2008, the film tells the story of an impoverished, totalitarian society in which rebellion among the subjects is punished by the creation of a killing game for mass entertainment. A teenage girl is put in the position to kill or be killed, but she cleverly plots to stand up to the regime by cooperating with her opponent. Together, they win the hearts of the crowd and bring the regime to its knees.

In other words, it is a story about personal freedom against a powerful state, a tale of courage and defiance in the face of power. The reviews by actual readers (versus professional critics) are over the top. It’s Amazon’s No. 1, and it has 4,000 reviews and counting. This is a phenom.

Aside from the plot line, there is something contemporary about the theme of sheer deprivation and survival. It sums up the way young people are looking at the opportunities they are being presented in these times. We aren’t playing hunger games yet, but when an entire generation is pretty sure that it will not fare as well as its parents’ generation, that’s not good. Life seems like the zero-sum game posited in the film.

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NEWS | Can a bookseller destroy bookselling by selling books? Should writers be paid for their writing? Thumbnail

As you may have heard, the Department of Justice is looking into opening an antitrust case against the Big 6 publishers and Apple for allegedly colluding to set prices via an agency model which the publishers set the prices for their books in the iBooks store, not Apple. They were then able to put enough pressure on Amazon to coerce it into accepting the agency model as well, which it had previously resisted. This is why you see ebooks being sold on Amazon for $9.99 or more nowadays.

Now, there’s a contingent of publishers and authors who fear change and have grown complacent and dependent on their IP-based, physical distribution model; they tend to see Amazon as an evil corporation out to destroy publishing, bookselling, and writers.

Scott Turow, president of the Authors Guild — does anyone else find the idea of an authors guild disturbing, like modern-day feudalism? some would say the same about the Big 6 publishing houses — recently wrote an open letter speaking out against the antitrust investigation and in defense of the agency model. Quelle surprise! Though it’s ironic to see someone defending big corporations against antitrust investigations who, under normal circumstances (i.e., ones in which his bottom line isn’t directly affected), would probably be in favor of antitrust suits against monopolistic big corporations.

Anyway, Turow types some rather outrageous falsehoods about Amazon. Indie powerhouses Barry Eisler and Joe Konrath1 do a pretty god job of showing how ridiculous Turow’s claims are. Richard Lea summed it up on Twitter with question that makes up the first half of this blogpost title: “Can a bookseller destroy bookselling by selling lots of books?”

I do disagree with Eisler and Konrath on one thing, however, and that is their opposition to the collusion between Apple and the Big 6 publishers. As a libertarian, I don’t have a problem legally speaking with collusion, or price fixing. Without government support, cartels are unsustainable. Of course, believing some practice shouldn’t be illegal doesn’t mean I approve of said practice.

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  1. Full disclosure: Both men recently made publishing deals with one of Amazon’s new fiction imprints but were extremely successful self-publishers beforehand and are still self-publishing other work. 

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So it looks like a recently published spy thriller, Assassin of Secrets,1 was largely plagiarized by the “author” from quite a few other novels — some post-Fleming Bond novels and others.

Now, when someone like myself says he is against intellectual “property,” as an illegitimate government grant of monopoly privilege over something that cannot be owned (i.e., ideas), the responses are fairly predictable.

A common one is “Well, then what’s to stop me from copying your novel, changing the name on it, and selling it as my own?”

Well, your customers could sue you for fraud, for one thing. No need for copyright to make that possible.

For another, in the Internet age, you run a very high risk of being found out and ruining your reputation.

In this case, fans of James Bond novels discovered the plagiarism first. As you can imagine, fans can be mighty protective of their favorite books and authors. Try to rip one off and some fan is bound to spot it, and soon they’ll all be royally pissed.

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  1. A rather cheesy title, no? 

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BOOK REVIEW | For The Win by Cory Doctorow Thumbnail

Cory Doctorow’s latest YA novel, For The Win, just might be the Jungle of the digital age — a depiction of the plight of professional gamers and their struggle to unionize and extract concessions such as better pay, shorter hours, and safer working conditions (?!) from their employers through collective bargaining. Not being an avid gamer myself, much less a professional gold farmer, I’m left to wonder if it is as poorly researched and inaccurate as Upton Sinclair’s piece of socialist propaganda fiction. I expect left-libertarians will tend to like this novel but other libertarians will not. As for myself, I struggled to finish it and do not recommend it — as much because of the writing style and quality of writing as the subject matter.

For The Win opens with a gifted Chinese gold farmer — a working gamer who plays to collect game money and items to sell for “real” money to “rich,” lazy, mostly American gamers — in China who just happens to have the Western name of Matthew. He’s attempting to strike out on his own but is visited by Boss Wing’s goons and taught a lesson. Then we meet an American Jew in Los Angeles who goes by the Chinese name of Wei-Dong and moonlights, against his parents’ orders, as a gold farmer with some online buddies in China. Next, we’re introduced to Mala, aka General Robotwallah, a poor Indian girl with a talent for strategy and leadership, who is hired by a mysterious man to use her “army” to harass gold farmers in-game because they allegedly disrupt the game for honest, paying customers.

Before long we’re introduced to Big Sister Nor, a mysterious new figure on the scene who is out to organize working gamers into a union to fight corruption and improve their circumstances. As the novel progresses, we’re introduced to more characters, mostly in China and India, where the bulk of the action takes place. Perhaps the most notable is a female Chinese underground radio host who caters to the factory girls, giving them advice and urging them to stand up for themselves, while she dodges police raids, moving from safe house to safe house under a series of false identities.

One of the themes of the novel is how difficult it has been historically for workers to organize and how the internet (including social media and online games) provide game-changing tools for organizing labor. There is much truth to this, though I am skeptical that even the myriad tools of the internet can allow a voluntary global union to pull off anything like the ambitious scheme Cory’s protagonists endeavor to carry out in the novel. Although Cory has characters voice the usual skeptical objections to the efficacy of a voluntary global union, I don’t think he adequately addresses the difficulties such a union would face even in the digital age. Without state-backed coercion (directed at businesses, scabs, and their own members), how much power would a union really have, particularly spread out over the globe? Sure, gamers have an advantage in that they all work virtually in the same place — but still…

To Cory’s credit, however, he does depict a truly voluntary union whose leaders welcome freely competing unions in the market. The International Workers of the World Wide Web (IWWWW) or Webblies, as they call themselves,1 even eschew a formal hierarchy. The de facto head of the union at one point exclaims to her followers, “I’m not magic. … You all lead yourselves.” They also, admirably, do not seek compliance with their demands through legislation or regulation. Instead, they engage in self-help. Libertarians may find some of their methods questionable, however.

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  1. These terms were coined by Ken MacLeod, based on the real Industrial Workers of the World (or Wobblies), and borrowed by Cory Doctorow. 

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