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How the Internet becomes the Content-o-net

January 18, 2010 in Art, Business, Future, infrastructure, Journalism, music, News, Places, Politics, problems, Technology | 18 comments

The Cinternet is Donnie Hao Dong’s name for the Chinese Internet. Donnie studies and teaches law in China and is also a fellow here at Harvard’s Berkman Center. As Donnie sees (and draws) it, the Cinternet is an increasingly restricted subset of the real thing:

map[19]

He calls this drawing a “map of encirclement.” That last noun has a special meaning he explains this way:

“The Wars of (anti-)Encirclement Compaign” were a series battles between China Communist Party and the KMT‘s Nanjing Gorvernment in 1930s. At the time the CCP established a government in south-central China (mostly in Jiang Xi Province). The KMT’s army tried five times to attack and encircle the territory of CCP’s regime. And The CCP’s Red Army was almost defeated in the Fifth Encirclement War in 1934. The Long March followed the war and rescued CCP and its army.

Encirclement is more than censorship. It’s a war strategy, and China has been at war with the Internet from the start.

But while China’s war is conscious, efforts by other countries to encircle the Net are not. To see what I mean by that, read Rebecca MacKinnon‘s Are China’s demands for Internet ‘self-discipline’ spreading to the West? Her short answer is yes. Her long answer is covered in these paragprahs:

To operate in China, Google’s local search engine, Google.cn, had to meet these “self-discipline” requirements. When users typed words or phrases for sensitive subjects into the box and clicked “search,” Google.cn was responsible for making sure that the results didn’t include forbidden content.

It’s much easier to force intermediary communications and Internet companies such as Google to police themselves and their users than the alternatives: sending cops after everybody who attempts a risque or politically sensitive search, getting parents and teachers to do their jobs, or chasing down the origin of every offending link. Or re-considering the logic and purpose of your entire system.

Intermediary liability enables the Chinese authorities to minimize the number of people they need to put in jail in order to stay in power and to maximize their control over what the Chinese people know and don’t know.

In its bombshell announcement on Jan. 12, Google cited massive cyber attacks against the Gmail accounts of human rights activists as the most urgent reason for re-evaluating its presence in China. However, the Chinese government’s demands for ever-increasing levels of censorship contributed to a toxic and unsustainable business environment.

Remember that phrase: intermediary liability. It’s a form of encirclement. Rebecca again:

Meanwhile in the Western democratic world, the idea of strengthening intermediary liability is becoming increasingly popular in government agencies and parliaments. From France to Italy to the United Kingdom, the idea of holding carriers and services liable for what their customers do is seen as the cheapest and easiest solution to the law enforcement and social problems that have gotten tougher in the digital age — from child porn to copyright protection to cyber-bullying and libel.

I’m not equating Western democracy with Chinese authoritarianism — that would be ludicrous. However, I am concerned about the direction we’re taking without considering the full global context of free expression and censorship.

The Obama administration is negotiating a trade agreement with 34 other countries — the text of which it refuses to make public, citing national security concerns — that according to leaked reports would include increased liability for content hosting companies and service providers. The goal is to combat the global piracy of movies and music.

I’m not saying that we shouldn’t fight crime or enforce the law. Of course we should, assuming that the laws reflect the consent of the governed. But let’s make sure that we don’t throw the baby of democracy and free speech out with the bathwater, as we do the necessary work of adjusting legal systems and economies to the Internet age.

Next, What Big Content wants from net neutrality (hint: protection), by Nate Anderson in Ars Technica. According to Nate, more than ten thousand comments were filed on the subject of net neutrality with the FCC, and among these were some from the RIAA and the MPAA. These, he said, “argued that the FCC should encourage ISPs to adopt ‘graduated response’ rules aimed at reducing online copyright infringement”, and that they “also reveal a content-centric view of the world in which Americans will not ‘obtain the true benefits that broadband can provide’ unless ‘copyrighted content [is] protected against theft and unauthorized online distribution'”. He continues,

What could graduated response possibly have to do with network neutrality? The movie and music businesses have seized on language in the FCC’s Notice of Proposed Rulemaking that refuses to extend “neutrality” to “unlawful content.” The gist of the MPAA and RIAA briefs is that network neutrality’s final rules must allow for—and in fact should encourage—ISPs to take an active anti-infringement role as part of “reasonable network management.”

Not that the word “infringement” is much in evidence here; both briefs prefer “theft.” The RIAA’s document calls copyright infringement “digital piracy—or better, digital theft,” and then notes that US Supreme Court Justice Breyer said in the Grokster case that online copyright infringement was “garden variety theft.”

To stop that theft, the MPAA and RIAA want to make sure that any new FCC rules allow ISPs to act on their behalf. Copyright owners can certainly act without voluntary ISP assistance, as the RIAA’s lengthy lawsuit campaign against file-swappers showed, but both groups seem to admit that this approach has now been hauled out behind the barn and shot.

According to the RIAA, “Without ISP participation, it is extremely difficult to develop an effective prevention approach.” MPAA says that it can’t tackle the problem alone and it needs “broadband Internet access service providers to cooperate in combating combat theft.”

“No industry can, or should be expected to, compete against free-by-theft distribution of its own products,” the brief adds.

“We thus urge the Commission to adopt rules that not only allow ISPs to address online theft, but actively encourage their efforts to do so,” says the RIAA.

And that’s how we get the American Cinternet. Don’t encircle it yourself. Get the feds to make ISPs into liable intermediaries forced to practice “self discipline” the Chinese way: a “graduated response” that encircles the Net, reducing it to something less: a spigot of filtered “content” that Hollywood approves. Television 2.0, coming up.

Maybe somebody can draw us the Content-o-net.

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The Father of All Business Models

January 6, 2010 in Blogging, Business, Cluetrain, Future, Ideas, Past, problems, Quote, Technology, VRM | 14 comments

First, read Dave‘s The Mother of all Business Models. The money grafs:

Want to get a message to Dave while he’s on the BART riding under SF? $5. Want to get a message to him while he’s walking the tradeshow at CES? That costs more.

If you’re important enough you shouldn’t even pay to use the mobile device. They’re going to make so much money from your attention. If you’re really important, thinking Warren Buffet, Bill Gates, Mike Arrington, they should pay you — a LOT — to use their device. Wow.

That got me excited. That’s what they have to be thinking at Google. And why not Twitter. Trying to think of a title for this post, I came up with The Mother of All Business Models. This is as far as I can see. A new economy. Nobodies pay, but important people are paid to use your brand cell phone/mobile device. I’m sure that’s the future. Might be horrible but we’re already almost there.

This is great stuff: a whole new frame for the sell side.

Now let’s look at the buy side, and how to keep the sellers from being horrible moms. What do we want there? Or what should we want there, if we knew we had the power, independent of advertisers and their media? I mean native power here: power that each of us has — not by grace of some company or government agency, and not limited to a company’s “platform”, which is almost always the floor of a silo or the lawn of a walled garden (and worth less or nothing outside of it).

We already have some of that power, thanks to protocols, formats and code that (essentially) nobody owns, everybody can use and anybody can improve. One of the most widespread of those, thanks to Dave, is RSS — Really Simple Syndication. Look up RSS on Google. You get 3,210,000,000 results, as of today. Much of that huge number owes to RSS’s nature as essential builing material for the Web that anybody can use, easily.

RSS is easy to make yours, personally, as your tool. Thanks to RSS (atop the Web’s and the Net’s other supportive standards, formats and protocols) anybody can produce, edit, update and syndicate pretty much whatever they like. You don’t have to go to Google or Twitter or Facebook. That independence is key, and has been there from the start, as a founding premise.

Now, what else can we create, to help assert our sides of commercial interactions and relationships — which is the central concern of the VRM (Vendor Relationship Management) community? In the Markets Are Relationships chapter of the 10th Anniversary edition of The Cluetrain Manifesto, I wrote this about the purposes of VRM efforts:

  1. Provide tools for individuals to manage relationships with organizations. These tools are personal. That is, they belong to the individual in the sense that they are under the individual’s control. They can also be social, in the sense that they can connect with others and support group formation and action. But they need to be personal first.
  2. Make individuals the collection centers for their own data, so that transaction histories, health records, membership details, service contracts, and other forms of personal data are no longer scattered throughout a forest of silos.
  3. Give individuals the ability to share data selectively, without disclosing more personal information than the individual allows.
  4. Give individuals the ability to control how their data is used by others, and for how long. At the individual’s discretion, this may include agreements requiring others to delete the individual’s data when the relationship ends.
  5. Give individuals the ability to assert their own terms of service, reducing or eliminating the need for organization-written terms of service that nobody reads and everybody has to “accept” anyway.
  6. Give individuals means for expressing demand in the open market, outside any organizational silo, without disclosing any unnecessary personal information.
  7. Make individuals platforms for business by opening the market to many kinds of third party services that serve buyers as well as sellers.
  8. Base relationship-managing tools on open standards, open APIs (application program interfaces), and open code. This will support a rising tide of activity that will lift an infinite variety of business boats, plus other social goods.

    9. The Intention Economy.

All these will also give rise to:

The latter is the title of the following section of the chapter, where I  explain that advertising is a bubble, and “so is the rest of the ‘attention economy’ that includes promotion, public relations, direct marketing, and other ways of pushing messages through media.” I then explain,

The attention economy will crash for three reasons. First, it has always been detached from the larger economy where actual goods and services are sold to actual customers. Second, it has always been inefficient and wasteful, flaws that could be rationalized only by the absence of anything better. Third, a better system will come along in which demand drives supply at least as well as supply drives demand. In other words, when the “intention economy” outperforms the attention economy.

Some context:

The attention economy will not go away. There will still be a need for vendors to promote their offerings. But that promotion will have a new context: the ability of customers to communicate what they need and want—and to maintain or terminate relationships. Thus the R in CRM will cease to be a euphemism. This will happen when we have standard protocols for all three forms of market activity: transaction, conversation, and relationship.

Transaction we already have. Conversation we are only beginning to develop. (Email, text messaging, and other standard and open protocols help here, but they are still just early steps—even in in 2009, ten years after we said “markets are conversations” in The Cluetrain Manifesto.) Relationship is the wild frontier. Closed “social” environments like MySpace and Facebook are good places to experiment with some of what we’ll need, but as of today they’re still silos. Think of them as AOL 2.0.

Now, what do we need to create The Intention Economy? (That link goes to a piece by that name written almost four years ago.) What’s already there, like RSS and its relatives, that we can put to use? What new protocols, formats, tools and code do we need to create?

Improving selling is a good thing. Improving buying is a better thing. And improving how buyers and sellers relate is better than both. Those last two are what VRM is about. (And the last one is what CRM has always been about, though it hasn’t had any reciprocating system on the buy side, which is what VRM will provide.)

If you want to see some of what we’re up to, or to contribute to it, here’s the wiki. And here’s the list.

Meanwhile, I’m working on a book titled The Intention Economy: What Happens When Customers Get Real Power. If you’re interested in pointing me to helpful scholorship, research and stories for the book, feel free to weigh in with those too.

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The Infrastructure Dynamic

November 25, 2009 in Business, infrastructure, Life, News, Politics, problems, Science, Technology | 13 comments

I just posted Rupert Murdoch vs. The Web, over at Linux Journal. In it I suggest that the Murdoch story (played mostly as Bing vs Google) is a red herring, and that the real challenge is to free the Web and ourselves from dependencies from giant companies I liken to volcanoes:

We’re Pompeians, Krakatoans, Montserratans, building cities and tilling farms on the slopes of active volcanoes. Always suckers for stories, we’d rather take sides in wars between competing volcanoes than build civilization on more flat and solid ground where there’s room enough for everybody.

Google and Bing are both volcanoes. Both grace the Web’s landscape with lots of fresh and fertile ground. They are good to have in many ways. But they are not the Earth below. They are not what gives us gravity.

I think one problem here is a disconnect between belief systems about markets, and the stories that arise from them.

One system believes a free market is Your Choice of Captor. In this camp I put both the make-it/take-it mentality (where “winners” are rewarded and “losers” punished) of the Wall Street Journal (which a few months ago looked upon the regulated duopolies for Internet access as the “free market” at work) and those who see business (or corporations, or capitalism, or all three) as a problem and look to government — another monopoly — for remedy from these evils in the marketplace. In other words, I lump both the left and the right in here, along with the conflicts between them.

The other system sees markets as settings for human activity: the locations, both real and virtual, where people and their organizations meet to do business, make culture, and build civilization. Here I put nearly everybody who contributed the structural agreements that made the Internet possible, and who truly understand what it is and how it works, even if they can’t all agree on what metaphors to use for it. I also include all who have contributed, and continue to contribute, to the free and open code bases with which we are building out our networked world. While political beliefs among members of this system may sort somewhere along the right-vs.-left axis, what they do to build the world is orthogonal to that axis. That’s one big reason why that work escapes notice.

The distinction I see here aligns well with Virginia Postrel‘s contrast between “stasists” and “dynamists”. The difference is that much of what gets done to make the networked world (and to support its dynamism) isn’t “dynamic” in the active and dramatic sense of the word — except in its second-order effects. For example, SMTP and IMAP are not dynamic. (Being mannerly technical agreements, protocols don’t do that.) But on those protocols (and related ones) email happened, and the world hasn’t been the same since.

With that distinction in mind, I suggest that too much oxygen suckage is wasted on “wars” between the stasists (some of whom are also into the superficially dynamistic attention-suck of vendor sports — here’s an oldie but goodie that still makes my point), and not enough on constructive work done by geeks and entrepreneurs who quietly build the original and useful stuff that serves as solid infrastructure on which countless public goods (including wealth creation beyond measure) can be generated.

We have the same problem in most net neutrality arguments. The right hates it, the left loves it. One looks to protect the “free market” of phone and cable companies (currently a Your-Choice-of-Captor system) while the other looks to government (meet your new captor) for relief. When in fact the whole thing has happened all along within what Bob Frankston calls The Regultorium.

The primary dynamism of the Internet — what gave us the Net in the first place, and what holds the most promise in the long run — doesn’t just come from those parties, and can’t be found in the arguments they’re having. It comes from low-box-office geekery that supports enormous new business opportunities (along with many public benefits, with or without business).

It’ll take time to see this, I guess. Just hope we don’t drown in lava in the meantime.

Bonus red herring: A lot of news really isn’t.

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Thinking past the I-I boundary

August 13, 2009 in Berkman, Business, Cluetrain, Future, infrastructure, News, Past, Politics | 1 comment

For the form of life we call business, we are at a boundary between eras. For biological forms of life, the most recent of these is the K-T boundary between the  and the Eras. The Mezozoic Era ended when Earth was struck by an object that left a crater 110 miles wide and a world-wide layer of iridium-rich crud. Below that layer lies the Age of Dinosaurs, completed. Above that layer accumulate the fossils of life forms that survived the change, and took advantage of it. Notable among these is a branch of theropod dinosaurs we call birds.

In business we have the I-I boundary: the one between the Industrial and Information ages (which Alvin Toffler first observed in The Third Wave, published in 1980).  Below that boundary we find a communications environment dominated by telecom and cablecom. Above it we find a radically different communications environment that still supports voice and video, but as just two among an endless variety of other applications. We call that environment the Internet.

At this moment in history most of us know the Internet as a tertiary service of telephone and cable companies, which still make most of their money selling telephone service and cable TV. Since those are highly regulated businesses, the Internet is subject to degrees of regulatory capture. Some of that capture is legal, but much of it is conceptual, for example when we see the Internet as a grace of telecom and cablecom — rather than as something that subsumes and obsoletes both of those Industrial Age frames.

Such is the risk with “broadband” — a term inherited by the Internet from both telecom and cablecom, and which is a subject of interest for both Congress and the FCC. In April of this year the FCC announced the development of a national broadband plan, subtitled “Seeks Public Input on Plan to Ensure Every American has Access to Broadband Capability”. In July the commission announced that Harvard’s Berkman Center would conduct “an independent review of broadband studies” to assist the FCC. Then yesterday the center put up a notice that it “is looking for a smart, effective fellow to join our broadband research team”. (This is more than close to home for me, since I am a fellow at Berkman. So I need to say that the broadband studies review is not my project — mine is this one — and that I am not speaking for the Berkman Center here, or even in my capacity as a fellow.)

The challenge here for everybody is to frame our understanding of the Net, and of research concerning the Net, in terms that are as native to the Net as possible, and not just those inherited from the Industrial Age businesses to which it presents both threats and promise — the former more obvioius than the latter. This will be very hard, because the Internet conversation is still mostly a telecom and cablecom conversation. (It’s also an entertainment industry conversation, to the degree that streaming and sharing of audio and video files are captive to regulations driven by the recording and movie industries.)

This is the case especially for legislators and regulators, too few of which are technologists. Some years ago Michael Powell, addressing folks pushing for network neutrality legislation, said that he had met with nearly every member of Congress during his tour of duty as FCC chairman, and that he could report that nearly all of them knew very little about two subjects. “One is technology, and the other is economics,” he said. “Now proceed.”

Here is what I am hoping for, as we proceed both within this study and beyond it to a greater understanding of the Internet and the new Age it brings on:

  • That “broadband” comes to mean the full scope of the Internet’s capabilities, and not just data speeds.
  • That we develop a native understanding of what the Internet really is, including the realization that what we know of it today is just an early iteration.
  • That telecom and cablecom companies not only see the writing on the wall for their old business models, but embrace other advantages of incumbency, including countless new uses and businesses that can flourish in an environment of wide-open and minimally encumbered connectivity — which they have a privileged ability to facilitate.
  • That the Net’s capacities are not only those provided from the inside out by “backbone” and other big “carriers”, but from the outside in by individuals, small and mid-size businesses (including other Internet service providers, such as WISPs) and municipalities.

That last item is important because carriers are the theropods of our time. To survive, and thrive, they need to adapt. The hardest challenge for them is to recognize that the money they leave on the shrinking Industrial Age table is peanuts next to the money that will appear on the Information Age table they are in a privileged position to help build.

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The Trillion-Dollar Market

July 4, 2009 in Business, infrastructure, VRM | 10 comments

Forget financial markets for a minute, and think about the directions money moves in retail markets. While much of it moves up and down the supply chains, the first source is customers. The money that matters most is what customers spend on goods and services.

Now here’s the question. Where is there more money to be made — in helping supply find demand or in helping demand find supply? Substitute “drive” for “find” and you come to the same place, for the same reason: customers are the ones spending the money.

For the life of the commercial Web, most of those looking to make money there have looked to make it the former way: by helping supply find or drive demand. That’s what marketing has always been about, and advertising in particular. Advertising, last I looked, was about a $trillion business. Now ask yourself: Wouldn’t there be more money to be made in helping the demand side find and drive supply?

Simply put, that’s what VRM is about. It’s also what Cluetrain was about ten years ago. It wasn’t about better ways for the supply side to make money. It wasn’t about doing better marketing. It was about giving full respect to the human beings from whom the Web’s and the Net’s biggest values derive. When Cluetrain (actually Chris Locke) said “we are not seats or eyeballs or end users or consumers. we are human beings and our reach exceeds your grasp. deal with it.“, it wasn’t saying “Here’s how you market to us.” It was saying “Our new power to deal in this new marketplace exceeds your old powers to drive, lock in, or otherwise control us.” When Cluetrain said “The sky is open to the stars”, it wasn’t issuing utopian palaver. It was speaking of a marketplace of buyers and sellers whose choices were wide open on both sides. [Later… Chris Locke, who wrote that line (and those that followed), offers a correction (and expansion) below.]

On Cluetrain’s 10th anniversary, we have hardly begun to explore the possibilities of truly free and open markets on the Internet. They are still inevitable, because supporting those markets is intrinsic to the Net’s essentially generative design. Lock down users, or lock one in and others out, and you compromise the wealth the Net can create for you. Simple as that.

And that wealth starts with customers.

This is also what How Facebook Could Create a Revolution, Do Good, and Make Billions, by Bernard Lunn in ReadWriteWeb, is about.

I just wrote a brief response in Gain of Facebook, on the ProjectVRM blog.

No time for more. Not because it’s the Fourth of July, but because I’m in a connectivity hole (with latencies and packet losses that start at 1+ second and 15% packet losses and go up from there), but because I’m at my daughter’s wedding, and I need to get ready. Cheers.

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Nettapping for everyone

October 24, 2008 in Business, Future, infrastructure, News, Politics, problems, Science | 7 comments

ISPs are pressed to become child porn cops is a new MSNBC piece by Bill Dedman and Bob Sullivan. It begins,

New technologies and changes in U.S. law are adding to pressures to turn Internet service providers into cops examining all Internet traffic for child pornography.

One new tool, being marketed in the U.S. by an Australian company, offers to check every file passing through an Internet provider’s network — every image, every movie, every document attached to an e-mail or found in a Web search — to see if it matches a list of illegal images.

The company caught the attention of New York’s attorney general*, who has been pressing Internet companies to block child porn. He forwarded the proposal to one of those companies, AOL, for discussion by an industry task force that is looking for ways to fight child porn. A copy of the company’s proposal was also obtained by msnbc.com…

But such monitoring just became easier with a law approved unanimously by the Congress and signed on Monday by President Bush. A section of that law written by Republican presidential candidate Sen. John McCain gives Internet service providers access to lists of child porn files, which previously had been closely held by law enforcement agencies and the National Center for Missing and Exploited Children. Although the law says it doesn’t require any monitoring, it doesn’t forbid it either. And the law ratchets up the pressure, making it a felony for ISPs to fail to report any “actual knowledge” of child pornography.

*That would be Andrew Cuomo.

(An appeal to journalists everywhere: When you refer to a piece legislation, whether proposed or passed, please link to the @#$% thing.)

So I looked around, and believe that the legislation in question is S.1738, described by Thomas as A bill to require the Department of Justice to develop and implement a National Strategy Child Exploitation Prevention and Interdiction, to improve the Internet Crimes Against Children Task Force, to increase resources for regional computer forensic labs, and to make other improvements to increase the ability of law enforcement agencies to investigate and prosecute child predators.

It was sponsored by Sen. Joe Biden and co-sponsored by 60 others, not including John McCain. But Thomas says S.519, A bill to modernize and expand the reporting requirements relating to child pornography, to expand cooperation in combating child pornography, and for other purposes, is a related bill (there are two others), and was sponsored by McCain. About that bill it says, Latest Major Action: 2/7/2007 Referred to Senate committee. Status: Read twice and referred to the Committee on the Judiciary. Note: For further action, see S.1738, which became Public Law 110-401 on 10/13/2008.

So I’ve read the text, and I see two things there. One is this Task Force business (which to me says “gather the wrong people for a noble purpose, and task them with creating a technical mandate that may not get funded, and if it does will be a huge kluge that does far less than it’s supposed to do while complicating everything it touches”). The other is a wiretapping bill for the Internet. I get that from Section 103, which says one Task Force purpose is “increasing the investigative capabilities of state and local law enforcement officers in the detection and investigation of child exploitation crimes facilitated by the Internet and the apprehension of offenders”. Hence the move by Andrew Cuomo in New York.

This is one more slippery slope at the bottom of which the Internet is just another breed of telecom service, subject to ever-expanding telecom regulation, all for Good Cause.

And we’ll see more of this, as long as we continue framing the Net as just another breed of telecom.

The Net is too new, too protean, too essential and too economically vital for it to be lashed — even by legislation that attempts to protect its virtues — to telecom law that was born in 1934 and comprises a conceptual box from which there is no escape.

Hat tips to Alex Goldman and Karl Bode.

Bonus wisdom from Richard Bennett: “The Internet is indeed the most light-regulated network going, and it’s the only one in a constant state of improvement. Inappropriate regulation – treating the Internet like a telecom network – is the only way to put an end to that cycle.”

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