The Role of Government In the Information Economy Sam Graber February 20, 2001

Background in intellectual property in the “mediatainment” industry. Discuss the history, necessity, and responsibility of the Federal Government’s role in governing intellectual property in the information economy. Compatibility, standards, taxation, conduct, and commerce cannot truly occur in digital terrain without security. Security – protection for both the buyer and seller. Should Federal Government be involved? Today’s Goal

Daniel Webster fathered the indoctrination of copyright law. The Constitution gives Congress power to “promote the progress of arts and science”: PROTECTECTION comes in the form of statutory legislation that serve commercial gain As the new millennium approached, the Federal Government was besieged by corporate digerati interest groups lobbying for protection. How important is intellectual property to the US Economy? Historical Reference

How Important is Intellectual Property Protection? Economists Inc. for IPAA released a December 2000 study that showed the US Copyright industries as a major US economy contributor to GDP, employment, and foreign exports. Copyright Industries: business application software, entertainment software, books, publishing, movies, television programs, home videos, music and sound recordings Contributed an estimated $677.9B in 2000, accounting for 7.33% of total U.S. GDP This represents an increase of 9.9% from USDOC estimates the Core Copyright Industries exports at $79.65B, larger than the estimates of all other leading sectors, including combined auto and agricultural.

How Important is Intellectual Property Protection? We see that the IP sector creates significant production, exports, and employment for the US. The U.S. Government will not compromise the vitality of a major revenue source and a global competitive advantage. The US Federal Government has a long history of constantly reviewing, reconstructing, and regulating intellectual property – patents, trademarks, and copyright. Remember that IP protection ultimately balances the public benefit with economic compensation to creationist.

The Problem The problem is applying century old law to the Internet. The problem is determining what mode of government intervention facilitates the transfer from physical to digital existence without serious disruption We have see several instances where Internet applications have disrupted the domain which existing IP law protects Congress is always behind the times and reactive

Mode of Governance Market-driven governance?

The Information Infrastructure Task Force consists of high-level representatives of Federal agencies, chaired by the Secretary of Commerce. One of the key nine principles identified and goals to guide government action: Protecting intellectual property rights However: “the debate over U.S. IP policy has been restricted to the elite and those with serious financial stakes in the outcome and it has not reflected well on the caliber of U.S. participatory democracy” Which is more important – consumer choice and availability or the persistent safeguarding and tinkering of legislation for the protection of copyright for “creationist” benefit? Mode of Governance

Software Publishing Movies Music Markets

Should the Federal Government revise all of copyright law to let information be made free? Should the Federal Government protect consumer or corporation? Should the Federal Government think about lessons from overseas or collude with international partners to protect IP? Discussion