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Perhaps The Copyright Industry Deserves Some Credit For Pointing Out Our Single Points Of Failure

Through new legislation the copyright industry is trying to gain unprecedented control over the Internet. Very worrying plans that need to be stopped, but there is also something to learn from. Perhaps we should be grateful that the copyright industry, in their distorted sense of entitlement to the world, are pointing out crucial weaknesses that need to be fixed.

Yesterday’s column here on TorrentFreak on how the copyright industry keeps pushing its own interests into law was very worthwhile, and highlighted the endemic corruption of the current system quite well. I think the latest bill goes so far it would have unintended consequences, though — unintended for the copyright industry.

This latest bill in the United States, named SOPA (a Swedish word meaning “piece of utter garbage”, and I am not making that up), would essentially eliminate due process of law and right to defense. It would create a j’accuse!-style justice system, where anybody in the copyright industry could kill any company on the planet they don’t like.

Here’s how it is intended to work: The copyright industry gains the right to “notify” payment processors such as Visa that a company looks bad. Visa then gets the choice of cutting it off from payments, or becoming liable themselves in case the looking-bad company actually turns out to be doing something bad. This is a very sneaky, effective and outright evil method of extrajudicial justice.

Rather than risk liability, the payment processors would choose to lie flat and just drop these customers. It is not in Visa’s mission to push civil liberties at the expense of shareholder value. This is not wrong in itself; it is the legislators who shall make sure that extrajudicial punishment as proposed here is impossible, and the legislators are not doing their job at all.

You will note that everybody in the proposed system is completely rightsless. At the pointing of a finger, a business is dead.

Similarly, SOPA contains provisions for killing domains in the centralized DNS namespace, which was built on the assumption that bad guys don’t exist in the system and that everybody can be trusted. If it’s something we have learned by now, it is that the net must be resilient against bad guys on the wire.

What’s interesting here is that the copyright industry attacks chokepoints in the system — single points of failure that our civil liberties depend on. Perhaps we should be grateful that the copyright industry, in their distorted sense of entitlement to the world, are pointing out these weaknesses to us through this kind of despicable mail-order legislation.

Because, if there’s anything that entrepreneurs hate, as in thoroughly detest, loathe and despise, it is the situation where somebody else holds a master-key to your business and can take it over at an unknown point in the future when the entrepreneur has spent ten years of their life building it. That situation is fixed first, and only then is the business built. This fix has happened a few times before, when a united hive-mind-like industry has discarded a master-key liability like a bad habit and built something else to replace it.

In the early 1990s, a system of hyperlinked pages on the internet had become popular. People would browse those interconnected pages for information on everything from universities to businesses to people. Then, in 1993, the University of Minnesota announced that it reserved the right to charge for commercial use of this protocol, Gopher, at some point in the future. It was dropped by everybody like a bad habit and replaced by HTML and the Web, which did a worse job initially but quickly replaced and outgrew Gopher.

The exact same thing happened with the standard format for image files, a format called Graphics Interchange Format, first used on BBSes and then moving on to the early Net. When UNISYS claimed that they somehow “owned” this format and would start suing people who used it, it was dropped from every usage all over the net in the blink of an eye and replaced by a fresh-new format named Portable Network Graphics.

Can you imagine the net collectively just dropping the use of JPEG today, in a consensus hive mind decision? That’s how large these watershed events are. Much larger than, say, Facebook replacing MySpace.

What’s preventing this from happening, in general, is the scenario where something works “well enough”. If something does its job miserably but is entrenched through the entire ecosystem, as long as it doesn’t kill you and you can build a business on it, it tends to remain because of network effects. It is only when it threatens each and every entrepreneur that the industry acts as a hive mind and throws it out.

Because there’s no doubt that MasterCard, Visa and Paypal are terrible for business. A middleman that skims between three and five per cent of every transaction? And, on top, makes it impossible to charge fractions of cents in this day and age? There isn’t an entrepreneur on the planet who wouldn’t love to throw them into the water at night with a pair of knee-high cement shoes. But, like a cancer, they have spread to every corner of the ecosystem. They work terribly, but “well enough”.

SOPA would change that. It would no longer work well enough; it would be a threat to the future existence of every business. Therefore, all of a sudden, we have a market incentive from the most entrepreneurial people on the planet to build a decentralized, unseizable, unstoppable financial infrastructure that lets them get paid — and lets everybody else transfer money anonymously, invisibly and unstoppable. It would be a dictator’s nightmare. And the copyright industry’s.

What SOPA does is to make sure that the net and sharing can’t coexist with Visa, MasterCard and PayPal. This means that only the stronger of the two groups will survive, and the copyright industry has their perception of the strength balance entirely wrong. The net and the human characteristic of sharing culture and knowledge are immensely stronger.

SOPA will neither kill the net nor the sharing of culture and knowledge. But it would kill Visa, MasterCard and PayPal, and it would kill centralized breakable DNS.

“But could this really happen?”, I hear people ask in scepticism. “Visa, MasterCard and PayPal are everywhere! Everywhere!” Yeah. They are. So were Gopher and GIF.

Dictators, too, depend on these single points of failure in the net for repressing the people in their countries. We see it everywhere, and it is spreading to the West at a much faster pace than I would like or had anticipated.

Perhaps the copyright industry deserves some credit for pointing out the single points of failure in the infrastructure supporting our civil liberties, so we can rebuild those parts.

That would be a trait they would share with the world’s worst dictators. Don’t get me wrong, I think the copyright industry is plain evil and that these proposed laws are abominations. Nothing new under the sun, there. But odd as it may sound, I would rather have the copyright industry prod the weaknesses of the infrastructure defending our civil liberties, than a future repressive regime doing so. At such a dystopic point in the future, it would be much harder to fix those weaknesses.

After all, the copyright industry can’t yet drag us off in black bags in the night.

About The Author

Rick Falkvinge is a regular columnist on TorrentFreak, sharing his thoughts every other week. He is the founder of the Swedish and first Pirate Party, a whisky aficionado, and a low-altitude motorcycle pilot. His blog at falkvinge.net focuses on information policy.

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  • http://www.facebook.com/profile.php?id=100002639684444 Ryan Smith

    Decentralize credit!

    • puddipuddi

      godamn I wish bitcoins would just straighten itself out and become a global currency, for the people, by the people. And by graphics cards lol… F*** every other currency and converting one to another. It’s time we made our hard earned money our own and it’s already here. Start supporting bitcoins now so we can take back our money!

      • http://falkvinge.net/ Rick Falkvinge

        Bitcoin is the most interesting idea to come about since Napster. However, it really really needs to get its usability fixed and going; right now it’s still at the proof-of-concept level.

        But as a proof of concept, it works as a replacement for centralized currencies, and that has enormous ramifications.

        • Scary Devil Monastery

          Here the “hive mind” works in favor – Bitcoin doesn’t have to be perfect, it only has to work “well enough”.

          Much like any other currency on this planet, “well enough” will be defined as “having a large enough user base”. Once it’s known that more people are experimenting with bitcoin – that there is virtual currency burning holes in pockets – entrepreneurs will establish themselves.

          It’s a given that some form of decentralized curency will become norm, eventually. After all, right now vast parts of the internet economy are in the form of bartering “eyeball time” in the form of ads and views. We’re already halfway there.

        • Scary Devil Monastery

          Here the “hive mind” works in favor – Bitcoin doesn’t have to be perfect, it only has to work “well enough”.

          Much like any other currency on this planet, “well enough” will be defined as “having a large enough user base”. Once it’s known that more people are experimenting with bitcoin – that there is virtual currency burning holes in pockets – entrepreneurs will establish themselves.

          It’s a given that some form of decentralized curency will become norm, eventually. After all, right now vast parts of the internet economy are in the form of bartering “eyeball time” in the form of ads and views. We’re already halfway there.

        • Scary Devil Monastery

          Here the “hive mind” works in favor – Bitcoin doesn’t have to be perfect, it only has to work “well enough”.

          Much like any other currency on this planet, “well enough” will be defined as “having a large enough user base”. Once it’s known that more people are experimenting with bitcoin – that there is virtual currency burning holes in pockets – entrepreneurs will establish themselves.

          It’s a given that some form of decentralized curency will become norm, eventually. After all, right now vast parts of the internet economy are in the form of bartering “eyeball time” in the form of ads and views. We’re already halfway there.

        • http://pulse.yahoo.com/_CUD5VO53DRZQKHASQ24VU54XTM Karl

          my best friend’s mother makes $73 an hour on the Laptop. She has been fired for 5 months but last month her check was $8294 just working on the computer for a few hours. Read about it on this web site http://nirl.eu/J

        • http://pulse.yahoo.com/_CUD5VO53DRZQKHASQ24VU54XTM Karl

          my best friend’s mother makes $73 an hour on the Laptop. She has been fired for 5 months but last month her check was $8294 just working on the computer for a few hours. Read about it on this web site http://nirl.eu/J

        • asdf

          Bitcoin would work if it wasn’t traded like a stock commodity.

        • http://crashsuit.tumblr.com/ crashsuit

          I guess Dwolla is starting to do pretty well for itself lately? It’s like PayPal or debit but at a flat fee of 25 cents. I guess they’re moving about a million dollars a day right now.

        • Ven

          @Crashsuit

          “Dwolla will not be a party to the transfer of funds in association with illegal goods and services.”

          Their terms of service, combined with servers being hosted in Iowa, lead me to believe that they would be the first to grab a pitchfork and crucify people for file-sharing.

        • Ven

          @Crashsuit

          “Dwolla will not be a party to the transfer of funds in association with illegal goods and services.”

          Their terms of service, combined with servers being hosted in Iowa, lead me to believe that they would be the first to grab a pitchfork and crucify people for file-sharing.

    • Bucky Cooper

      Decentralize everything, and I do mean everything. No more ISP’s, no more DNS, etc. By the time the copyright industry manages to take complete control of the network, which is their plan, the internet as we know it today will have become obsolete and everyone will have moved on to something far superior. They may be able to stifle freedom and liberty, but no industry has ever been able to stifle technological progress. We’ll all be using quantum entanglement devices that are secure and untraceable to create our own massively interconnected network. The data transfer rates will go far beyond what current storage devices can even handle, making the problems that proxy tech suffers from a thing of the past. Even fiber optic tech won’t be able to match it. It will be their worst nightmare, and is a “revolution” that has already begun…

      • Ven

        Big companies have to answer to the government to own a part of the hardware network. Other companies have to get government approval before selling those magical devices of the future.

        You can’t use big business technology, mass production, and distribution against big business and government. They just pull the plug and you are back to tin cans and a piece of string.

      • Ven

        Big companies have to answer to the government to own a part of the hardware network. Other companies have to get government approval before selling those magical devices of the future.

        You can’t use big business technology, mass production, and distribution against big business and government. They just pull the plug and you are back to tin cans and a piece of string.

  • Shiny Jirachi

    That was a very lovely read and is quite scary honestly.

  • Anonymous

    i am convinced that SOPA is going to do immense damage to the net and to USA. i cant wait, personally, because there have been enough warnings put out, all of which have been ignored. my concern is, can the damage be repaired or can a new ‘net’ be developed, and up and running in time?
    still waiting to see how the rest of the world react to the US stopping traffic from other countries going in and trying to get those countries to do what the US wants, whilst at the same time, doing as much as possible to put stuff into those same countries. one way traffic and ‘dont do what we do, do what we tell you’.

    • anonco

      I don think it will hurt that much on the whole internet, but just on USA for the biggest part. A lot of internet companies will move offshore, then they will just loose jobs….

      • Anonymous

        It will hurt foreign groups and individuals as well. Any site that distributes “American” copyrighted content (or physical goods, this is just an example) can be attacked.

        • Scary Devil Monastery

          They don’t have to be distributing anything “american” at all – the scary part about SOPA is that anyone can point a finger and kill a business. No oversight or even justification is required.

          And if you believe – for even one second – that there will not be businesses, private interests or rl trolls willing to abuse that system for their own purposes – then I have a bridge to sell to you as well. Cheap.

    • http://falkvinge.net/ Rick Falkvinge

      I agree, it definitely will, if it passes. The operative words being “immense damage”. But the net will repair itself, and in doing so, will make sure that this particular type of attack vector will never work again.

      • Scottw

        Is this not how they choose to choke support for Julian Assange & wikileaks? I have felt creepy about using paypal & visa ever since. They are like a repugnant slime I have to deal with in order to get by with everyday business now, a necessary evil. The sooner they are replaced by something with integrity the better.

        • Ven

          I think the government(s) leaned on them in that case, before they decided to pull the plug. At that level of business it’s very difficult to see where government pressure and public pressure begin and end.

          SOPA is far worse: instead of a board of executives deciding on a site-by-site bases to push the big red button, they are giving the big red button to anybody and everybody who wants one.

      • http://torrentfreak.com/ Rob8urcakes

        I also agree Rick, but the time-scale’s important as adjustments to correct the wrongs are implemented.

        I also admire your optimism, coz “never” is quite a long time – teehee.

      • http://torrentfreak.com/ Rob8urcakes

        I also agree Rick, but the time-scale’s important as adjustments to correct the wrongs are implemented.

        I also admire your optimism, coz “never” is quite a long time – teehee.

      • Anonymous

        i hope you are right, Rick. my concerns are how long it will take to ‘repair itself’, will it be allowed to repair itself because half the problems are caused by governments not being able to control what goes on on the net (they hate that!), will a new and better net come out of it all, will lessons be learnt? the last part, i very much doubt!

      • Zzzz

        A very good article until you started on your badly disguised advert for BitCON.

        • http://falkvinge.net/ Rick Falkvinge

          It doesn’t really matter what replaces the centralized systems, as long as something does. We know now that they are vulnerable.

      • IDIOCRACY

        And the easiest way to do so is as soon as this law(s) is (are) passed, use them against the whole dot com domain…. ok just the music and movie companies hehe, lets see what happens then…hehe
        Don’t fight the rules but let them fight for you, if a rule / law is that bad that it can be abused, use it against its parents… that is what kids do too. (and boy can we learn from them nowadays… just look at them how fast they pick up all techno stuff)

  • Reader

    Interesting article, I too have been waiting for a viable PayPal replacement for years, ever since they first decided to mess with a single eBay transaction of mine.

    I recall not too long ago(perhaps around the time of the illegal domain seizures), that a decentralised DNS server was considered, but as far as I know, none currently exists in a manner that can easily be adopted by the masses? :(

    • http://falkvinge.net/ Rick Falkvinge

      None does today, as there isn’t a sufficiently strong driver for adoption. This might quite possibly be that driver.

      • Scary Devil Monastery

        It depends on whether the system is abused or not. I know that any business today will instantly migrate to an alternative as soon as the magic words “business-critical threat” present themselves.

        Any system known to be open to abuse the way SOPA is will force any business to migrate to another platform – to not do so will make CEO’s risk their own behinds.

      • Scary Devil Monastery

        It depends on whether the system is abused or not. I know that any business today will instantly migrate to an alternative as soon as the magic words “business-critical threat” present themselves.

        Any system known to be open to abuse the way SOPA is will force any business to migrate to another platform – to not do so will make CEO’s risk their own behinds.

        • Anonymous

          i agree entirely. no company is interested in the risks or damage to employees, jobs etc, but as soon as one of the top guys is in that position, things can never change quick enough!

  • Roel van der Wegen

    Anyone see the comparison with (literal) witch hunts here? Somebody points a finger at you and it’s your job to prove your innocent.

    • anon

      its been like that for years, ever since the “War on Terror” started. Just try traveling somewhere and see for yourself.

      • Anonymous

        i think there is a hell of a difference between ‘terror’ and ‘sharing files’, whwther that is over the net as we know it, or the one that we dont yet know.every person in the world is getting closer to being in the position of being ‘guilty unless innocence can be proven’. all because of a movie or music file. has anyone heard of anything so fucking ridiculous? how can any government allow the majority of laws to be re-written and peoples’ rights be so downgraded because of the use of the internet and the sharing of files, then expect to remain in positions of power? dont they realise that sooner (i hope) or later, they will be forced to change? the masses are sometimes very slow at reacting, but eventually, they do react. the consequences are often very scary indeed!

    • http://pulse.yahoo.com/_IZ5BM5GNLA54OADSWGSXAMA7SY Jay

      Welcome to McCarthyism, new millenium edition

    • Scary Devil Monastery

      Except SOPA doesn’t contain the provision of proving innocence either. No trial nor jury will be forthcoming at all.

    • Scary Devil Monastery

      Except SOPA doesn’t contain the provision of proving innocence either. No trial nor jury will be forthcoming at all.

  • Peter

    Future Bet:
    New payment processor opens up in country that is not the US. US has no control over them (China anyone?). Visa, MasterCard and PayPal move to crush new player by moving out of US and into same country. US dollar plummets, and China succeeds in taking over the world.

    • http://falkvinge.net/ Rick Falkvinge

      A new centralized payment processor under another jurisdiction is still a single point of failure. We need a means to process payments that is resilient to the whims of crazy lawmakers du jour.

      • http://torrentfreak.com/ Rob8urcakes

        Aye, who would’ve believed the REAL anarchists who destroy Human Society would be capitalist Americans?

        I wouldn’t, but the facts are there for ALL to see (if you care to look at all of course).

        • Shivafang

          Both capitalism and communism have serious problems when taken to extremes. The problem is that so far only the communist extreme has been realized (and thus degregated and attacked)

          It’s only now that we’re starting to see the extreme effects capitalism can have when the system gets corrupt. I wonder what this lesson will teach the next generation?

        • http://torrentfreak.com/ Rob8urcakes

          lol, and I wonder what lesson it’ll teach THIS generation as we allowed it to happen in the first place :(

  • Anonymous

    Well I have been in business for over 10 years myself but there is one point wrong in all this in that it is the buyers and not the sellers who decide if a certain payment service lives or dies.

    As a buyer I simply have to accept whatever method buyers want to pay me in or else I lose the sale. Unfortunately it is true to say that PayPal is extremely biased and is great for buyers by being shit for sellers. I would love to drop PayPal in an instant but the truth is that I offer my buyers many ways to pay me and over 98% still pay using PayPal!

    The situation totally sucks and I want to be rid of PayPal but to lose 98% of sales would be insane. So instead I have to learn how handle the beast, PayPal, in such a way as to minimise my loses.

    PayPal being buyer biased has got it right. Seller do need to come to them to benefit from their massive client base. There is no choice here to stop using them, for any reason, without losing that form of income as well.

    Unfortunatelty it is also the case that SOPA does not attack the buyers and only fucks with the sellers. So the only hope is another payment service more massive and better than PayPal that buyers would want to use. I have seen almost all online payment services that have come and went in over 10 years as well but none of them have done that yet.

    DNS on the other hand is a piece of cake. Sellers can drop .com or any other problem domain suffix in an instant and no one would care any. No one country controls all domains so thankfully there is always a safe place to live and it affects the customers almost none.

    • Scary Devil Monastery

      A very good point. The problem being that once enough industry starts migrating away from PayPal and other single point of failures, customers will eventually become weaned of the PayPal habit.

      The public opposed going over to internet payments very fervently in Sweden – but as soon as the number of services willing to process paper billing diminished and the prices rose, the shift occurred.

      When using a service such as PayPal starts to generate an urgent need for the business to cover itself you end up with the choice for the consumer – “use service A to pay and accept a 15% administrative surcharge or use service B to pay and avoid that charge”.

      At that point, the consumer base shifts.

    • Scary Devil Monastery

      A very good point. The problem being that once enough industry starts migrating away from PayPal and other single point of failures, customers will eventually become weaned of the PayPal habit.

      The public opposed going over to internet payments very fervently in Sweden – but as soon as the number of services willing to process paper billing diminished and the prices rose, the shift occurred.

      When using a service such as PayPal starts to generate an urgent need for the business to cover itself you end up with the choice for the consumer – “use service A to pay and accept a 15% administrative surcharge or use service B to pay and avoid that charge”.

      At that point, the consumer base shifts.

    • merethan

      Dropping a .com or .net to avoid domain seizure isn’t enough. Infrastructures (such as an ISP) can still stop any domain from resolving to an address.

    • Zig

      PayPal are just an online card processor though and there are many payment gateways out there other than PP. For instance, Amazon handle millions of transactions every day and don’t use PP. I’m not sure if they still exist, but in the past I’ve used such online processing pioneers as Netbanx and it never affected my e-commerce site negatively. Simply not offering PP doesn’t mean people won’t buy from you. If you offer a convenient online payment system you’ll still have as many customers. Just because 98% of your current customers use Paypal it doesn’t reflect how NOT offering it would affect your business, it merely reflects that people choose to use its convenience BECAUSE you offer it.

  • Prince

    Paypal, Visa, Mastercard will simply lose market share as sites effected by this new law will feed the growth of competing payment providers outside the US. This might be the beginning of the end for US creditcard companies world payment domination. The .com domain will be abondoned and programs to circumvent any kind of DNS blockade will be popular. The piracy battle has been lost. The MPAA, RIAA, etc. are still in denial. No law can change what the Internet is today. But the content industry can change the way they do business and addopt to the new reality. And it’s not like Hollywood isn’t profitable. Last time I checked Hollywood had another record year of earnings. Lawmakers need to understand that there is no pain in Hollywood, they just can’t get enough.

    • Glib

      It’s not about winning and losing anymore; it’s a foregone reality, they lost, nobody will deny that. However, they can rollover and die in 5 years, or they can fight tooth and nail to try and hold on as long as possible; this is the reality of today.

      They aren’t trying to look like the good guys anymore, they’re trying to make “pirates” look more bad all the while making no effort to start pumping out the water that has already flowed in from their ship full of holes. Sure, every year more and more stuff is stolen, but the faster they can plug the holes in their sinking ship, the further across the sea they can get.

      However, as the article mentions, someone will adapt. A new payment processor in China would be insane, ESPECIALLY if the world gets it’s way and the US dollar stops being the reserve currency. Honestly, that would cripple the US. I remember a day not too long ago where copying CDs and turning them into MP3s was considered advanced. Copying DVDs being “really hard” for certain discs. Torrents were a pain and no hardware could handle the connections.

      How long, do you think, before someone actually makes a piece of software that acts as a DNS? Not totally decentralized, but users having to download a .dns file from a known quality source (TPB, Demonoid) when stuff stops working. They’d have to shut down every site offering these .dns files at once to stop people from pressing the “update” button on their software to get an updated file that circumvents it all; those files could be floated in the DHT, how to establish trusting would be the main problem, but this was a problem since the dawn of file sharing. Pain in the butt? Yes, but it’ll get simpler as it becomes popular.

      • http://pulse.yahoo.com/_OK7Y7PCSTJ27RCKZ2MGRSAYCTE NEIL

        I think what the Federal Reserve and the other private banks are doing to the Euro with their scare tactics on Greece and now Italy has ruined that idea Glib – but I get where you were coming from….

      • Very Quiet Guest

        (pssttt… look up: namecoin)

      • Very Quiet Guest

        (pssttt… look up: namecoin)

      • Anon

        >>How long, do you think, before someone actually makes a piece of software that acts as a DNS?
        - Glib

        Not necessary. There is something much simpler which supersedes the need for anything else. Their called Open DNS servers. There are many out there on the net, public/open dns servers, although chief among them, is one of this actual name, and is here: http://www.opendns.com. All you have to do is, (appropriate to your OS), go into the properties of your network/wifi connection, and where you will find TCP/IP settings (probably set by default to ‘obtain DNS server information automatically’) and set the Primary and Secondary DNS server information of the Open server IP’s you chose.

        I for example, have used these reliably now for well over 2 years:

        Primary (Open) DNS: 208.67.222.222
        Secondary (Open) DNS: 208.67.220.220

        Cheers!
        C:

  • http://twitter.com/AlyssaBlindy Alyssa Blindy

    Quite interesting. When I thought of SOPA previously, I would think of a big bar of soap going around and sweeping the internet of rogue sites. But this tops that assumption of the cryptic message of SOPA. This is bigger, and a more interesting interpretation of SOPA. I even checked with someone from Sweden on the use of the word “SOPA” to mean garbage, and they confirmed it for me. This just makes me laugh endlessly. Plain out insanity. And I thought the image of the bar of soap was bad.

    • http://torrentfreak.com/ Rob8urcakes

      Going totally against my current habits and instinct, I’d MUCH rather use soap than S.O.P.A. lol

  • Pingback: Perhaps The Copyright Industry Deserves Some Credit For Pointing Out Our Single Points Of Failure | We R Pirates

  • http://blademccool.myopenid.com/ BladeMcCool

    Lol as soon as this becomes law I’m founding a “record company” and accusing WALMART of piracy. Should be worth a few lulz if WALMART gets blocked from VIZA/MasterCrud

    • Ven

      The problem here is that payment processors get to decide for themselves if it’s Walmart infringing, or you being a troll. Odds are good they will side with the large legit company.

      The scary notion there is that is the exact same thing that will happen when a legit small artist goes after Universal or Warner or Sony.

  • anonco

    All we have to do is to create a paypal copy with almost exactly the same features, incorporate in Vanuatu or another tax haven, and it’s ok !

  • Gargamel

    Just a thought Rick, but couldn’t alot of people just use the alternative of BitCoins and the like?

    • Glib

      Bitcoins have no real worth, real money tends to have something it’s based on (loosely). Gold, for example. Bitcoins are valued in the same way stocks are. Company is worth nothing, but has a lot of shares that, for some reason, everyone buys and sells all the time. Everything is happy times until the buying and selling stops and it all becomes selling … then it crashes. In the case of stocks, they crash to their actual value (Nortel is a perfect example of this). In the case of Bitcoins, they would crash to 0

    • Glib

      Bitcoins have no real worth, real money tends to have something it’s based on (loosely). Gold, for example. Bitcoins are valued in the same way stocks are. Company is worth nothing, but has a lot of shares that, for some reason, everyone buys and sells all the time. Everything is happy times until the buying and selling stops and it all becomes selling … then it crashes. In the case of stocks, they crash to their actual value (Nortel is a perfect example of this). In the case of Bitcoins, they would crash to 0

      • Truth

        Gold has no real worth. Nothing has no real worth apart from people. Worth is technically how much time out of someone’s live are they willing to trade for an something. Bitcoins are modelled after gold, not shares. Shares pay a dividend, Bircoins don’t. There is a fixed amount of gold on Earth, there will by 2140 be a fixed number of Bitcoins mined (produced).

        • Truth

          Sorry typo, it was because I was thinking and cutting and pasting as I was typing. It should be “Nothing has real worth apart from people.” There are a few other elements on/in earth that are more scarce than Gold, and yet are worth less than gold. This is because of a strange world wide love of Gold.

      • Scary Devil Monastery

        “Real money” is usually a fiat currency meaning that the “worth” is determined exactly the way it is for bitcoins – by raw supply/demand status.

        I.e. the worth of the US dollar will drop through the floor the second China dumps it’s US bonds on the market, for instance.

        Very few currencies today have anything like a material foundation. The USD cannot be redeemed against gold anymore, and the closest correspondence it has to any material goods today would be the oil price (and even there only tentatively).

      • Anonymous

        For something to have any “worth” people have to agree that it has. Digital files obviously have become worthless since they can be shared without any costs. It just takes some time for the economists to realize that, then sure it may crash since no one would invest in companies with worthess business models…

    • http://falkvinge.net/ Rick Falkvinge

      Yes, bitcoin — if it gets its usability together — would be exactly such a decentralized, resilient payment system that would tell the copyright industry and dictators alike to go take a hike.

    • http://falkvinge.net/ Rick Falkvinge

      Yes, bitcoin — if it gets its usability together — would be exactly such a decentralized, resilient payment system that would tell the copyright industry and dictators alike to go take a hike.

    • Anonymous

      Combine payment providers like BitCoin with darknets and decent hosting providers like Periquito, and you’re set!

      • Scary Devil Monastery

        I’m not sure whether the SOP of the bitcoin client is to already establish a darknet in itself. Otherwise, there would be no problem adding that functionality. It already acts using heavy encryption.

  • Anonymous

    I want some decent businesses and content providers to move from the public internet to darknets like I2P.

    /pipedream

    I’d love to ditch the public internet completely. Too bad it’s too big to just “start over,” as some engineers say would be a good idea.

    • Scary Devil Monastery

      “/pipedream”?

      What, on earth, do you call the explosive surge of VPN providers lately? Today, every major business already use darknets extensively for their private use.

      I2P is just the free open-source solution which doesn’t cost as much.

      • Anonymous

        I2P is, but VPNs are not darknets.

        • Scary Devil Monastery

          Person A connects to person B over a heavily encrypted tunnel? Welcome to the darknet. The only main difference is that in a darknet every person acts as the VPN proxy for the others.

          But I’ll concede your point as VPN’s are single-point tunnel systems.

          Next up, please list to me the real difference between a “darknet” and a “cloud service”. I think you’ll agree that this is being heavily sold in these days.

          The criteria of the darknet is that information is distributed between peers using encrypted connections. This is already in heavy use in many major businesses. The criteria of anonymity and security is already far more stringent where for example accounting is concerned than it is for, say, filesharers.

  • http://pulse.yahoo.com/_OK7Y7PCSTJ27RCKZ2MGRSAYCTE NEIL

    OK so I did an on line Swedish English translation and the nearest it came up with is sweep….. Sorry someone had to check.

    • http://falkvinge.net/ Rick Falkvinge

      That’s “sopa” as a verb, yes: to sweep garbage. If you want to check the translation, you should check “sopor”, which is the plurale tantum form of trash, just like “cattle” in English only exists in plural form. Colloquially (but not in dictionaries), a singular form of the word trash has appeared, being singular “sopa” from plural “sopor”.

      • http://pulse.yahoo.com/_OK7Y7PCSTJ27RCKZ2MGRSAYCTE NEIL

        Thanks Rick – found it!!! I love it…..

        • Scary Devil Monastery

          To add to what Rick says – in swedish you can say someone is a “sopa” – basically meaning garbage or trash.

          Actually the closest translation in english might be “rubbish”. :)

    • Mikael

      Sopa has two meanings, “to sweep” and a slang word meaning something in the vein of “worthless garbage”. I suppose slang words don’t make it to dictionaries often, but “din jävla sopa”, has been used at least since the 70′s, pretty much used in the same context (and same meaning) as “you fucking moron”.

      • Henrik Eriksson

        You forgot the slang meaning hitting, or striking someone, “Att sopa till någon”. :)

    • http://falkvinge.net/ Rick Falkvinge

      For people interested in making the point in everyday speech in this discussion, the Swedish word is pronounced “sooh-pah”, with an extra-marked emphasis on both syllables equally (not like “super” in English which emphasizes the first, nor like “super” in French which emphasizes the last: it really empasizes both, an uncommon construct in English).

      It is always pronounced as though one were a little angry or frustrated.

      • http://twitter.com/AlyssaBlindy Alyssa Blindy

        As if someone is frustrated, huh? Well, I think the respective MAFIAA are quite frustrated :-). I heard it pronounced from google translate, it’s almost as if you are trying to say the word “superb” but someone stops you in the middle of the final syllable, and you end up putting an accent on your final A. Lol that just randomly came to my mind, the same way the idea of soap and cleaning the internet came to mind after repronounciation of the word. I have pronounced it so many times in the last few days, that now it haunts me.

      • http://twitter.com/AlyssaBlindy Alyssa Blindy

        As if someone is frustrated, huh? Well, I think the respective MAFIAA are quite frustrated :-). I heard it pronounced from google translate, it’s almost as if you are trying to say the word “superb” but someone stops you in the middle of the final syllable, and you end up putting an accent on your final A. Lol that just randomly came to my mind, the same way the idea of soap and cleaning the internet came to mind after repronounciation of the word. I have pronounced it so many times in the last few days, that now it haunts me.

      • gudrun

        I’ll probably ruin it for everyone but the moment you said angry or frustrated it started sounding like klingon to me.Qapla

      • gudrun

        I’ll probably ruin it for everyone but the moment you said angry or frustrated it started sounding like klingon to me.Qapla

  • Anonymous

    That makes a whole lot of sense dude, I mean like totally.
    anon-web.it.tc

  • Chad

    Don’t worry, this will never pass. I’m sure the Republicans will cry foul and demand that government stop over-regulating business. Oh wait…

  • foff

    I think congress has way too many other important issues to consider before even taking this into consideration. The new president will be under tremendous pressure to reduce government thus any legislation that increases government regulation is dead.

    • http://atheros.myopenid.com/ Jonathan

      That’s naïve.

    • http://atheros.myopenid.com/ Jonathan

      That’s naïve.

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  • http://ompldr.org/vYXc2MA/see-what-i-thought-id-do-was-id-pretend-i-was-one-of-those-slut-whores.html w3ts1ut

    Geographic restrictions and censorship blocks,
    While file parts and blocks get sent through transit spots,
    Blips raining down into systems stable fresh,
    Like a torrent bit by bit, raping corporate flesh,

    Hector shared with Susie and Susie shared with Bob,
    Bob shared with Marry and Marry shared with Tom,
    Tom shared with Lisa and Lisa shared with Dixie,
    Dixie poised the torrent now the whole damn swarm is messy!

    Dixie is MAFIAA scum! SCUM!
    Firewall banish Dixie from our swarm!
    Dixie is NOT OUR PEER!
    Bad parts removed, Dixie banned, torrent cleared!

    Recording IP’s, retention be damned,
    Seed to peer ratio makes traffic a jam,

    ‘Cause Hector stopped sharing,
    Susie got caught,
    Bob and Marry got straight MAFIAA bought,
    Tom didn’t fight,
    Lisa followed suit,
    but Dixie… that biatch got the end of my boot!

    SOPA is MAFIAA scum! SCUM!
    SOPA IS NOT MOTHER FUCKING WELCOME!
    SOPA IS NOT our friend!
    Destroy SOPA! You’ve got shit to defend!

    Lobbyists strive to get it to pass,
    Along the side of shady bad ProtectIP act,
    UK, USA, the Earth, where internet is,
    MAFIAA will end up raping you and your kids,

    Make some noise, shout it loud,
    FUCK THE MAFIAA, WE’RE PROUD!
    Darknets speak, sneakers run,
    Bypass corrupt laws one by one!

    RIAA, MPAA, SOPA fuck!
    False takedown notices for those with bad luck,
    Good day now, to you and yours,
    Unless you’re one of them bastard MAFIAA whores.

    #AntiCopyright
    #Free_as_in_Free_as_in_stfu_and_share_it
    #KillSOPA

  • http://twitter.com/AlyssaBlindy Alyssa Blindy

    @w3ts1ut:
    Woe
    That was very well written there.
    I’m guessing that’s how torrents get corrupted; people download them however they leave the swarm afterward by fear of getting caught or for some other reason, is this correct?
    Sorry about not replying directly, I accidentally got pushed into the wrong comment box, and I didn’t think about it when I pressed the post button.

    • http://ompldr.org/vYXc2MA/see-what-i-thought-id-do-was-id-pretend-i-was-one-of-those-slut-whores.html w3ts1ut

      Thank you.

      If a torrent is showing many hash fails it could be due to peers trying to seed bad/altered parts. Worst case scenario, the whole swarm downloads them and the integrity of the torrent is lost. This is not typically an issue considering the fact that most torrent clients will check the integrity of parts as they’re downloaded, and some will even ban IP’s that are trying to share inconsistent data after a certain amount of tries.

      All that is necessary for the triumph of evil is that good men do nothing –Edmund Burke

      All that is necessary for the triumph of evil is that clients don’t do hash checks.

      All that is necessary for the triumph of evil is that SOPA passes, etc.

  • ThumbsUpThumbsDown

    Rick’s article is one really pretty riff (perhaps I should call it an ugly riff) on what
    SOPA has to say to us about the willingness and ability of legislators in the American and European democracies to administratively and legally annul the Constitutional Rights of individual citizens for the benefit of oligopolistic and monopolistic corporate constituencies that every day make good on their presumption that the safeguarding of their private pecuniary intrests should have primacy over all other considerations of civil liberties and human rights. How dare they! How dare they even make such a suggestion, much less advance it so successfully in the legislatures!

    I really do appreciate Rick’s optimism that the corporate promoters of SOPA have
    underestimated the adaptability of market participants and their creative reactiveness in avoiding the contraints of the legislation.

    Yet, in a world where SOPA promises to be the “new real” for as long and as far as
    the eye can see, I don’t really care for the shelter and human comfort that I might be expected to derive from the thought that Visa, or MasterCard, or PayPal might be replaced by something incrementally more accomodative under SOPA.

    Why? Because we have misunderstood to our greater peril, both the meaning
    and scale of SOPA if we perceive it in incremental terms. The American legislators who wrote SOPA did so understanding full well that by making coercive remedies legally available to corporate complainants without the requirement of full prior judicial review and without providing for liability in the event of tortious effect, they were writing a law whose purpose and outcome would be to administratively disenfranchize private citizens for the pecuniary benefit of corporations. Here, SOPA speaks for the impunity with which American legislators have come to disregard the human needs and civil rights of American citizens. SOPA begs multiple questions: Why does this impunity exist? What is to be done about it? What can we prudently expect future legisltion vis a vis these corporate interests to look like?

    I want to highlight what is most counterintuitive: These legislators are not to be
    dismissed as dysfunctional intellectual and moral devients, better left to preside within prisons rather than legislatures. Oh no! In fact. looked at with a modicum of objectivity, it might perhaps be said that they are doing only what any good democratic legislator would do: That is, work hard and effectively to protect the rights and interests of their constituents. SOPA tells us better than words that we are not the true constituents of these legislators: their electoratoral concerns lie elsewhere. They are not acting with impunity! In fact, they are responding faithfully to the concerns of those constituents most likely to guarantee their reelection. SOPA tells us that as long as corporations are endowed as “artificial persons” with the right to be present in our legislatures with all the rights of “natural persons” in the making of new law, we can expect laws meeting the needs and protecting the rights of corporations rather than human beings.

    • http://falkvinge.net/ Rick Falkvinge

      I have no idea who you are, but your insights and ability to sort things into important and irrelevant continue to amaze me.

      • ThumbsUpThumbsDown

        Thank you for your report. Without enough people behind you working to
        clarify the difference between what is important and what is irrelevant, I fear that we might all become irrelevant.

  • http://Operation-DarkSky.askaboutit.com Needlez™

    Just wondering how long its going to be until some one actually points out that eventually even though the internet was designed to route around road-blocks and circumvention. If they put up too many road-blocks then they’ll block themselves, and eventually the internet will be nothing more then an redirect to 404 server not found or ICE seized sites. Personally I can’t wait until something like this happens just to prove to governments that they’ll cause more harm then good, and even with certain types of blockades they’re pointless, I mean DNS blocking? Really can’t I just ping the URL get the IP address type that in and go still even with the DNS blocked? And if not just proxy, VPN, or Tunnel to the page I want. Seriously unless they actually cut the power from the site totally, like take it offline permanently people will still find ways to access what they want. Just thought that if something like SOPA passes it’ll just be pointless like ProtectIP is, only thing is they’re forcing more and more people to get computer smart and start asking questions that they (the government) can’t answer. This is only my opinion but I think it makes a good point.

    • Scary Devil Monastery

      We’ve already observed a similar effect on local media through the use of DRM. “Good, law-abiding citizens” find themselves frustrated because their legally purchased media makes their computers work less well or even blocks their ability to enjoy the product they purchased.

      Meanwhile the “pirates” set the standard for functionality as the illegally downloaded versions carry none of those problems.

      It will be the same here. Once using the net overtly becomes a major hassle while the darknets thrive, methods outside of government control will simply become the new standard. Just like Rick points out.

      People want stuff to work. If that means side-stepping an ever more inflexible and stiffnecked bureaucratic legislation then that is what will happen.

  • Mc

    Havent you heard of namecoin rick?

    Decentralised DNS built from a fork of bitcoin. It works right now but usability is even worse than bitcoin for the moment.

    But it does work. Its miraculous. It seems that the devs one day envision a simple browser extension or installable background service that will transparently resolve .bit domains, then after that perhaps it will come standard with firefox and others. Opera has had a built in bittorrent client for years for example.

    • http://atheros.myopenid.com/ Jonathan

      I’m hoping that if it becomes the slightest bit popular, your ISPs DNS server will do the lookup for you. That is, until the industry realizes what is happening and moves to make it illegal, at which point it will be too late and people will already be familiar with dot-bit websites and will install the requisite extensions in their browsers.

    • http://pulse.yahoo.com/_UJ4XRIA3A3E6MYGK755EGWLN4Q Dani A

      I already use namecoin.. and bitcoin :p
      Honestly namecoin i consider an early alpha.. its hard to use and fickle… now if they provided a simple binary that ran as a dns service on your computer.. that you would simply say… point your primary DNS to 127.0.0.1 and it would work.. that would be nice :p but no..
      However, if shit like this keeps happening, namecoin or something like it will become the standard.

  • http://pulse.yahoo.com/_IZ5BM5GNLA54OADSWGSXAMA7SY Jay

    Rick, don’t forget the end part of SOPA…

    SEC. 205. DEFENDING INTELLECTUAL PROPERTY RIGHTS ABROAD.

    That’s the best section. The US is trying to export its copyright to other countries and it’s worth mentioning how “successful” this has been in Brazil, Sweden, the UK, NZ and everywhere else.

  • Metadoodle

    Rick, a special (if slightly off topic but nevertheless relevant to the Pirate Party ethos) request:

    Could you write us an article in which you give your views about Netsukuku please?

    • Mc

      Its dead jim?

      • Metadoodle

        Is it really? If so, why? That is what I am trying to find out.

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  • Anonymous

    The fact that the copyright industry is an industry is the entire crux of the argument, and a sad reminder of where our society currently is.

  • derp.

    You’re missing something on the

    “After all, the copyright industry can’t yet drag us off in black bags in the night.”

    line, here’s the corrected version.

    “After all, the copyright industry can’t yet drag us off in black bags in the night… Yet”

    • Mr. Briggs

      There’s already a “yet” buried in there.

  • http://pulse.yahoo.com/_PUVBRIS36F5QAWZN4X5MTMNIOU Fukk You
  • http://pulse.yahoo.com/_PUVBRIS36F5QAWZN4X5MTMNIOU Fukk You
  • Gangsta4429

    I dont even need to read al this since what I read explains that what they are planning to do is ILLEGAL!!! All this is going to do is make site put more security on their domain names to keep assholes like Anti-P2P groups CENSORED from accessing their sites…Ever since the takedown of Limewire last year, Anti-P2P companies have been overstepping their own power and basically abusing it…If they were smart which THEY ARE NOT, they would stop were they are and give up…Groups like this NEVER realize that sites that provide copyrighted material will NEVER go away…Internet will NEVER go away…They already lost the battle, they just dont seem to get the message!!!

  • Anonywangs

    I think the whole current scheme of patent and copyright law is a house of cards. I mean really, being able to copyright AND patent the same product? Being able to restrict the redistribution of long binary numbers, or even a business process? That’s retarded.

    • Anonymous

      Of course, the system is going to fail. The question is just how much these businesses will be able to delay this and how much they will be able to steal from taxpayers in the process ( government funded debt bailouts ).

      Being able to find / found / invent new jobs for the men in the middle (lawyers, economists and so on) will be the really exciting creative challenge for society in the next 20 years or so.

  • Colin

    Just a thought, perhaps TF or Rick should send this article to the bosses of Visa, Mastercard and Paypal. might make them think…..

    • http://atheros.myopenid.com/ Jonathan

      They would be smart to fight it tooth-and-nail. Despite our hate for them, they might be allies after all. I now can’t decide if I want the legislation to pass.

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  • http://atheros.myopenid.com/ Jonathan

    I know of decentralized currency and DNS services. These solutions exist and are operating. I now can’t decide if I want this horrible legislation to pass. Maybe it should!

  • http://atheros.myopenid.com/ Jonathan

    I know of decentralized currency and DNS services. These solutions exist and are operating. I now can’t decide if I want this horrible legislation to pass. Maybe it should!

  • Pingback: Dawog’s Blog » Blog Archive » Five more “must read” SOPA/PROTECT-IP Articles…

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  • Shivafang

    In a twisted way I”m almost hoping SOPA passes, just so that what Rick describes here comes to pass (That people will start seeing the current establishment as not worth supporting and move to something better.)

    I wonder if that makes me an Anarchist?

  • Anonymous

    nirl.eu/7

  • Anonymous

    ta.gg/5jo

    • legacyabq

      Spammer go away

  • legacyabq

    how can one one live day-to-day in a world that’s closing like darkness around us- oppression, control, exploitation. freedom is dead. How did the world get so titlted from its axis?

  • http://www.facebook.com/LUVBUNZ Jeremy John Corby

    Here we have the copyright industry attempting to cut their losses….. WHY ISN’T THE U.S. GOVERNMENT DOING THE FUCKING SAME?????? WHY????? GET THE FUCK OUT OF THE MIDDLE EAST NOW FFS

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  • Caine

    Cant wait for some copyright-heads to roll, literally.

  • Baloo2

    The Swedish meaning of “sopa” is rather fun, but from the Fidonet community, that is still live and kicking, I was told that in Russian it means asshole.

  • nonoei

    Vote Ron Paul for Republican Primary. Problem Solved.

  • nonoei

    Vote Ron Paul for Republican Primary. Problem Solved.

  • Sidra

    Sopa means sweep in Swedish, just to the man who wrote the article, Sopor is the word ur looking for, thats trash, garbage, rubbish and so on. So not Sopa.

  • me

    @Rick Falkvinge: very good assessment here. I couldn’t agree more.

    There’s one more choke point, that will prove harder to work around: the global backbone is in the hands of a tiny number of big level-1 NSPs. Anyone of those NSPs can drop routes to an arbitrary destination on a global scale by simply not advertising it anymore via BGP. It happened even to TBP for a brief moment, and SOPA would make it mandatory for US carriers to meddle with the routes. You can’t bypass a BGP block by routing around it like we can with using alternate DNS or other domain names. DNS trickery will appear like kindergarten play by then, when BGP-blocks are in effect.

    So, basically, we will ultimately have to distribute the /whole/ web (and I mean the whole *legitimate* web too!) and make it totally decentralized, like what Freenet and similar anonymizer projects do. Only then will traffic be untaggable and couldn’t be discriminated against at the whim of any little would-be dictator-ceo.

    Until then, we’ll remain vulnerable, and, as you’ve said, we will have to work hard eliminating the single points of failure in our global networked ecosystem.

  • BTGuard - BitTorrent Anonymously

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