The Pirate's Dilemma

29 Jul '08 - 15:30 by orangeek

Few weeks ago I finished reading "The Pirate's Dilemma - How Youth Culture reinvented capitalism" by Matt Mason.

 

I think it's a great book, especially since it succeeds to give a historical blackground to the "pirate" movement.

We (?) actually could think that the piracy is always related to mp3, p2p and file sharing in general.

And so, what happens if we learn that the some older pirates were into the filmmaking, cable companies, DJ/mixtape businesses?

And why we couldn't think at piracy as a new way to do business instead? an opportunity rather than a menace? A new way to follow the "Ocean Blue" strategy?

After the jump some highlights from the book (that is freely downlodable from the main site)

Guess who? pag. 36

Another pirate nation that began in a fashion similar to Sealand is the USA. During the 19th century Industrial Revolution, the Founding Fathers pursued a policy of counterfeiting European inventions, ignoring glbal patents, and stealing intellectual property wholesale.
"Lax enforcement of the intellectual property laws was the primary engine of the American economic miracle", writes Doron S.Ben-Atar in Trade Secrets. "The USA employed pirated know-how to industrialize". Americans were so well known as bootleggers, Europeans began referring to them with the Dutch word "Janke", then slang for pirate, which is today prononunced "Yankee".
Trace the origins of recorded music, radio, film, cable TV, and almost any industry where intellectual property is involved, and you will invariably find pirates at its beginnings. When Edison invented the phonografic record, musicians branded him a pirate out to steal their work, until a system was created for paying them royalties.
Edison, in turn, went on to invent filmmaking, and demanded a licensing fee from those making movies with his technology. This caused a band of filmmaking pirates, among them a man named William, to flee New York for the then still wild West, where they thrived, unlicensed, until Edison’s patents expired. These pirates continue to operate there, albeit legally now, in the town they founded: Hollywood. William’s last name? Fox.
When cable TV first came about, in 1948, the cable companies refused to pay the networks for broadcasting their content, and for more than thirty years operated like a primitive illegal file-sharing network, until Congress decided that they, too, should pay up, and a balance was struck between copyright holders and the pirate TV broadcasters.

The Pirate Bay POV Pag. 56

The Pirate Bay is a militant file-sharing space powered by its founders’ desire to defend free culture. Their actions were reactions to the fact that many regulators are arguing that the only way to defend copyright law is to invade and infringe upon people’s rights and privacies.
This is already happening—some entertainment companies, for example, have embedded spyware in hardware and software such as DVD players or CD albums that note everything you record. Like all successful pirates, the Pirate Bay’s actions created fierce debate.
On one side is the entertainment industry, scared for its future, as it was in the 1980s, when cassette tapes and video recorders were introduced.
Cassette tapes and video recorders both brought the film and recording industries hugely lucrative new revenue streams once they had stopped fighting the new formats and started figuring out how to make money from them.
On the other side of the debate are people eager to consume media in new ways, enjoying the freedom to make back-up copies they always have, who are being threatened with million-dollar fines and prison sentences for what is essentially no different from home taping. The debate over the Pirate Bay’s legality escalated into an international wrangle involving Hollywood, the White House, the World Trade Organization, and the Swedish government. The wrangle became so heated it sparked a new political movement: the Pirate Party.
“Copyright has been said to be necessary for the creation of culture, and patents have been said to be necessary for innovation to happen,” declares the Pirate Party’s website. “This has been repeated so often, that nobody questions it. We do, and we say that it’s just a myth, perpetuated by those who have something to gain from preventing
new culture and technology. When push comes to shove, copyright PREVENTS a lot of new culture, and patents PREVENT a lot of innovation. Above all, today’s copyright laws has [sic] no balance at all between the creator’s economic interests and society’s cultural interests.”

Pirate-à-Porter Pag.94

Intellectual property works very differently in fashion than it does in the world of entertainment. The 2-D design of a garment is protected, but the 3-D physical object is not, so copying is, and always has been, rife.
Freedom to copy other people’s designs is taken for granted in the world of fashion, which makes it unusual, but it’s also the reason it’s so successful. Haute couture designs are copied, sampled, and modified,
gradually trickling down until there are versions of last season’s catwalk designs in bargain basements everywhere. The view that remixing or sampling a design is a serious threat to business is not one held by the fashion industry.* There are rarely objections from design houses when an idea is copied; in fact, it’s almost encouraged. This is an industry where as soon as a high-priced designer garment becomes a trend, there are factories full of copies and knockoff designs competing
at lower prices.
This approach seems counterintuitive. But as Professors Kal Raustiala and Chris Sprigman observed in a 2006 Virginia Law Review article, this approach, in the case of the fashion industry, actually
encourages innovation.
In “The Piracy Paradox: Innovation and Intellectual Property in Fashion Design,” Raustiala and Sprigman make the case that the remix stimulates growth in the industry. Because designs are copied quickly and styles diffuse down to the mass market, the original luxury items lose their allure, creating demand for new trends, and this pirate-induced demand drives the entire business forward. Raustiala and Sprigman call this process “induced obsolescence,” arguing that copying
in fashion is “paradoxically advantageous for the industry. IP [intellectual property] rules providing for free appropriation of fashion designs accelerate the diffusion of designs and styles....If copying were illegal, the fashion cycle would occur very slowly.”
Instead, they argue, appropriation speeds diffusion. The article quotes Miuccia Prada: “We let others copy us. And when they do, we drop it.”

Listen to us... and sell something we actually want.
Pag.222

Browsing times in stores are falling, too. Whether it’s shopping or youth culture, we just don’t have the time for long-term commitments anymore.
We still need devices of mass production, but they are taking a backseat. Viruses are center stage, the only real capital we have left. We don’t need marketing people to pigeonhole music or compartmentalize
scenes anymore, because we do it ourselves.
We can transmit to the world a carefully managed perception of who we are, what we think is cool, what we wear and listen to. We need the network or no one will hear us, but we retain the power. Marketers
can’t sell us meaning; we have to find it in their products, and if we do, and we’re passionate about them, we’ll happily tell everyone we can. But by the same token, if a brand or an idea makes one wrong move, it can cause the entire crowd to walk away.
Companies have to fight harder for our attention, youth markets are becoming increasingly difficult for brands to penetrate, and so they are working harder than ever to jump on the next big thing. When they do, the effect is sometimes terminal.

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