Unproven Economic Impact of the Sui Generis Right on Database Protection

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Cedric Manara points us to an evaluation report (I was only able to open/download it by using Internet Explorer) on the EU Database Directive published by the DG Internal Maket and Services. The evaluation focuses on whether the introduction of this right led to an increase in the European database industry’s rate of growth and in database production. According to the press release, it was conducted on the basis of an online survey addressed to the European database industry and the Gale Directory of Databases as the largest existing database directory that contains statistics indicating the growth of the global database industry since the 1970s.

The most interesting and important part of the report (p. 5) reads as follows:

“The economic impact of the “sui generis” right on database production is unproven. Introduced to stimulate the production of databases in Europe, the new instrument has had no proven impact on the production of databases. Data taken from the GDD (see Section 4.2.3) show that the EU database production in 2004 has fallen back to pre-Directive levels: the number of EU-based database “entries” into the GDD6 was 3095 in 2004 as compared to 3092 in 1998. In 2001, there were 4085 EU-based “entries” while in 2004 there were only 3095.
Is “sui generis” protection therefore necessary for a thriving database industry? The empirical evidence, at this stage, casts doubts on this necessity. The European publishing industry, which was consulted in a restricted online survey, however produced strong submissions arguing that “sui generis” protection was crucial to the continued success of their activities. In addition, most respondents to the on-line survey (see Section 4.2.2) believe that the “sui generis” right has brought about legal certainty, reduced the costs associated with the protection of databases, created more business opportunities and facilitated the marketing of databases.”

These findings, I believe, have also the potential to shape the U.S. debate on the question of database protection. For conclusions within the EU framework see pp. 5-6 of the report.

Slater and McGuire on (Taste) Sharing

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Mike McGuire and Derek Slater have released an interesting Gartner/Berkman Center report entitled “Consumer Taste Sharing Is Driving the Online Music Business and Democratizing Culture” that analyzes the extent of peoples’ use of consumer-to-consumer recommendation tools such as playlists. Here’s their prediction:

By 2010, 25 percent of online music store transactions will be driven directly from consumer-to-consumer taste-sharing applications, such as playlist publishing and ranking tools built into online music stores or external sites with links to stores.

Check also Derek Slater’s playlist on this topic, and his comments here.

Great Resource Website: 2005 Harvard IP Law Conference

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Our colleagues at WilmerHale have created a great website with resources from the 2005 Harvard Law School Conference on Intellectual Property Law. The website includes electronic documentation of the information covered at the conference, including PowerPoint presentations, audio files of the panels and links to speaker biographies. (I had the honor to participate in the panel on developments in software protection in the EU.)

On Grokster, Finally

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Late, very late, but hopefully not too late — finally online available some thoughts on Grokster by Harvard Law School Clinical Professor John G. Palfrey, Jr. and me. It’s a piece written for a non-U.S., non-IP-law-audience with a general interest in the topic. Here’s the abstract:

In summer 2005, the United States Supreme Court issued a decision which is surely destined to play a significant role in the interrelation between law and technology in the coming years. The case, Metro-Goldwyn-Mayer Studios Inc., et al. v. Grokster, Ltd., et al., pitted copyright holders against the operators of certain peer-to-peer online file-sharing services and was awaited by many in both the legal and technology communities as a referendum on the landmark legal precedent set in the “Sony-Betamax” case. The Sony case came to represent the legal standard for determining when manufacturers of “dual-use technology”—technology capable of both legally noninfringing and infringing uses—should be given a safe harbor from liability for acts on the part of their consumers which violated copyright law.

Surprisingly, the Supreme Court’s decision did not center around an affirmation or rejection of the Sony ruling; rather the Court based their opinion on a common law principle which, they held, was not preempted by the holding in Sony. The “inducement” to infringe copyright, although not a completely novel cause of action, has been perceived by some commentators to introduce a change in the legal landscape of secondary liability for copyright infringement. In this article, we provide an extensive exposition of the Court’s decision and discuss the disposition of the decision including the implication of the two concurring opinions. We also speculate on the impact that the Court’s decision will have on the technology sector and on technological innovation in particular. Ultimately, we grapple with new questions which the decision has presented for industry and the continued existence of peer-to-peer file-sharing.

Global Voices Attracts 300,000 Readers a Month

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I have the great pleasure to attend the Global Voices 2005 London Summit led by my Berkman colleagues and friends Rebecca McKinnon and Ethan Zuckerman. It’s fantastic what the Global Voices initiative has achieved. Currently, more than 300,000 people per month are visiting the site and read articles written by hundreds of users from around the world, and the growth rate is impressive. Also, GV increasingly attracts the attention from traditional media such as CNN, BBC, etc. Some statistics are posted here.

I can’t wait to learn more about the future editorial strategy of GV. I’m increasingly fascinated by the emergence of innovative editorial functionalities and their implications for cyberspace as a “message space” (sensu Charlie Nesson.)

Join us online!

EU Copyright Law under Review

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Ian Brown points to a communication by the European Commission, announcing a “recasting” (see p. 7 for a definition) of EU Copyright Law as part of the Lisbon program aimed at regulatory simplification. According to the UK Patent Office’s website, the review will focus on levies applied to equipment and media used for private copying, term of protection for sound recordings, and includes a review of co-written and musical works.

Top 10 Sources Up and Runnin’

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Check it out – Top10 Sources has launched today. It’s fascinating, it’s promising, and it’s also somewhat surprising since it reintroduces editors in the old sense in the age of decentralized information production. Here’s the brief description from the homepage:

Top10 Sources is a directory of sites that bring you the freshest, most relevant content on the Web. We know it’s impossible for anyone to keep track of the 20 million+ online sources of information. So our editors search Web 2.0 — blogs, podcasts, wikis, news sites, and every kind of syndicated sources online — by hand. Our Top10 lists are updated frequently as great new sources come online.

I’m very interested in the further development of Top 10 Sources, esp. against the backdrop of my information quality research. In any event, congrats – as well as good luck – to my friend John Palfrey and his team, including Wendy.

Google’s Alan Davidson on Areas of Special Concern

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Alan Davidson, Washington Policy Counsel and head of Google’s new Washington DC government affairs office, made several interesting remarks in his panel statement. Among them: He identified the following two areas that are of special concern to search engine providers:

(1) Conceptual shift in speech regulation

  • Old approach (offline media): focused on publishers, readers
  • New & emerging generation of speech regulation: focus on deliverers – intermediaries are supposed to police the networks. Examples where this approach is currently up for discussion in D.C.: access to pharmaceutical products, blocking of gaming websites
  • Assessment: It’s not a good idea to target intermediaries: Due process, procedural problem: intermediary, e.g., can’t tell whether or not a particular site featuring copyrighted content is a fair use or not; by going after the intermediary you take the publisher out of equation, can’t go to courts to argue the case
  • Misguided, because search engines are only in the business of indexing existing content; they’re not editors (can’t be, given the scale.)

(2) Government access to information

  • Increasing pressures to provide personalized information (search history, etc.) to third parties
  • Best privacy policy doesn’t help if government wants information for national security reasons; standards really low; plus: search engines not allowed to inform users that info has been passed on to third parties.

Ed Felten on the Search Space

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Here are some keywords of Ed Felten’s presentation here at Yale’s search conference:

  • Talks about what search is
  • Search is broader than we think that it is
  • Three steps, processes or elements: (1) observe, (2) analyze/learn/, (3) serve users
  • Observation of information, either crawled in the web or the university library, real world
  • Put information in a DB, so that it’s available in electronic/digital form. Analyze, index, learn, model that information; put some sort of value on top of it
  • Index, model, … built from it allows you to serve users, answering queries, answer questions
  • Broad definition, it’s not only search engines such as Yahoo, it also includes Google print, fixture sites (e.g. baseball statistics), attributes of P2P file sharing systems; also applies to consumer reporting organizations, e.g. choicepoint
  • Interesting issue among others: Question whether search is internal or external to the world it is studying. Eg. Ebay has searchable search engine inside for objects/auctions. Component that is part of the service they provide. Bidder’s Edge tried to build external search; eBay wasn’t happy. Other interesting case: Grokster, e.g., has/had internal search engine. BitTorrent didn’t provide a search engine, provided only transfer and got significant legal advantage.
  • Other interesting aspect: analyzing and learning brings the value, e.g. Google’s PageRank is the value added. Analysis step is where the heavy thinking happens and value is created. Interesting, b/c legal challenges have not challenged analysis element, but are challenge to crawling = observation stuff (e.g. eBay v. Bidder’s Edge).
  • Decentralization and P2P design. Complex issue. If analyzing and learning is key, but “observation” element of the search process is the target of law, it’s likely that we try to decentralize the observation part.
  • In sum, search is broad, we’re very early in development of this technology.

Update: More on the other panels here.

Don’t Miss INDICARE’s November Edition

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Lot’s of good stuff in the INDICARE Monitor’s November edition. Among the interesting articles a timely piece on intrusive DRM by Philipp Bohn, a report on the European Commission’s recommendation on cross border licensing by Margreet Groenenboom, and Bill Rosenblatt’s article on rights management and the revolution in e-publishing. Also check out the INDICARE blog, esp. Margreet’s recent post. She draws our attention to a speech by Commissioner McCreevy, who is quoted with the following words:

“On-line content is increasingly sold by using digital rights management devices (DRMs) that protect the work being sold and often ensure direct payment by the consumer. Consumers download music on to portable devices in a protected format and, while doing so, pay for it. The 2001 Copyright Directive states that fair compensation must take account of the use of DRM. In practical terms, this should mean that as the use of DRMs increases, the use of levies should decrease. This does, however, not appear to be the case. This effectively means that consumers who use legitimate on-line services to download music against payment, pay twice.”
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