The Pirate’s Dilemma
Pirates are innovators, they signal market problems and lead the way to new business models. Nevertheless, they are tagged as thieves by many. We invited Matt Mason, author of the book “The Pirate’s Dilemma: How Youth Culture Is Reinventing Capitalism”, to write an article on the “pirate’s dilemma” for TorrentFreak.
The Pirate’s Dilemma: The Problem With Information (and how to fix it)
BY MATT MASON
The same way light confuses scientists by existing as particles and waves at the same time, information increasingly seems to confuse us. Information is getting cheaper and more expensive at the same time, and it appears that many of us, especially those of us who own or control a great deal of it, no longer understand how to observe or use it.
We live in a world where it is legal for a company to patent pigs, or any other living thing except for a full birth human being, but copying a CD you bought onto your hard drive is considered an infringement of someone else’s rights. A place where an average law abiding citizen could owe more than $12 million dollars in fines if they were sued every time they accidentally violated copyright law in a single day. A society where it’s ok for each of us to be hit with 5,000 advertising messages every 24 hours, usually without our permission, but creating a piece of art and placing it in public yourself without permission can land you in prison. This isn’t just about the pros and cons of file sharing - this is about an entire species losing its sense of perspective, failing to understand the potential of one of its most precious (and yet most abundant) resources.
Many of us are confused about whether our ideas should count as information, or property. When we have a new idea, there are two opposing forces at work. At the same time as we are thinking “how can I get this out there?” we’re also asking ourselves “how can I benefit from/monetize this idea?” We want to spread ideas as information, but capitalize on them as intellectual property. This problem with information is something I call The Pirate’s Dilemma.
The first thing we need to understand is that the decision as to how we share “our” information isn’t always “ours” to make alone. If a drug company decides it won’t share malaria and anti-retroviral AIDS drugs with a developing nation for a price the suffering citizens of that country can afford, that country may decide to ignore patent protections and manufacture pirate copies of the drugs anyway in order to save lives. If an industry dependent on physical information, distribution bottlenecks and artificial scarcity decides to ignore more efficient ways of distributing the information it considers its property, pirates will step into the breach and highlight the fact that there is a better way for us to do things.
Some of America’s greatest innovators were thought of as pirates. When Thomas Edison invented the phonographic record player, musicians branded him a pirate out to steal their work and destroy the live music business, until a system was established so everyone could be paid royalties, which we today call the record industry. 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, including 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.
Piracy is the sharp end of innovation, innovation by any means necessary. Large oligopolies control most of our industries and governments. Six companies control most of what we see and hear. According to The World Bank’s 2007 figures, roughly two-thirds the world’s 150 largest economies aren’t nations, but corporations. We all know the system doesn’t work quite the way it’s supposed to, yet continue to think of this inefficient system we have as “the free market”. Pirates upend inefficient systems – they take order and create short-term chaos, but often the long-term result of piracy on a large scale is a better system - a more efficient way of doing things. Pirates created many of our established orders out of chaos, and now that these industries are becoming inefficient in the face of new technologies, chaos is being created once again.
From CEOs to struggling artists, in everything from health care to entertainment to education, many of us are being challenged by the problem of others sharing and using our intellectual property without permission. This challenge requires a change of attitude, because sometimes piracy isn’t the problem, it’s the solution. You see, piracy is really a market signal - an early warning system, a warning that all too often goes ignored by established industries. Whether we consider ourselves pirates or professionals, we’re all competing in the same space.
When pirates enter our market spaces, we have two choices: We can throw lawsuits at them and hope they go away. Sometimes this is the best thing to do. But what if those pirates are adding value to society in some way? If these pirates are really doing something useful, people support them, and the strong arm of the law won’t work. The pirates will keep coming back and multiplying no matter how many people are sued. And the truth is, if lawsuits become a core component of your business model, then you no longer have a business model (unless you’re a lawyer).
Because in these cases, what pirates are actually doing is highlighting a better way for us to do things; they find gaps outside the market – and better ways for society to operate. In these situations the only way to fight piracy is legitimize and legalize new innovations by competing with pirates in the marketplace. Once the new market space is legitimized, more opportunities are created for everyone. This is how cable TV started, it’s why many drugs are now sold at prices people in the third world can afford, it’s how many other new opportunities are being created today. Pirates present us with a choice. We can either fight them in the courts, or match them play for play in the marketplace. To compete or not to compete, that is the question; that is The Pirate’s Dilemma.
Matt’s book: “The Pirate’s Dilemma: How Youth Culture Is Reinventing Capitalism” is out now through Free Press, and probably soon on a BitTorrent tracker near you ;).
Previously: Sweden’s Biggest File-Sharing Case Goes to Retrial
Next: BitTorrent, Uncensoring Independent Filmmakers
104 Responses (Add yours or TrackBack)
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Interesting article.
But we kinda already know all this… question is, what can we do to fix it?
“You can’t reform profit capitalism and inhumanity. Just kick it till it breaks.”
Piracy isn’t reinventing capitalism… It is fighting against one part of a core aspect of capitalism, property - in this case intellectual property.
Still a good article :)
A strong article with a compelling story. I didn’t know that about Fox, and it’s deliriously ironic.
While free is all nice and swell, a massive amount of people will prefer to pay for premium services, and while they won’t always get that, that’s what you have competition for - both “illegal” and legal. Competition’s important.
Very interesting read. I agree with many of the author’s points.
Heres my Idea of how we can share without going to prison since Bens guide didn’t make it into the most popular file in the P2P World.
Why don’t the RIAA give out free music on Bittorrent with mandatory ad viewing so their advertisers say the RIAA for their music.
Why don’t every company use P2P to advertise while giving out freebies such as free mp3s, free software, free games, free cell phone minutes, and other free stuff.
Why not take advantage of P2P instead of trying to destroy and sue the P2P to death.
I haven’t finished reading this yet, but I can’t wait to after work. This looks like a great article. Thank you.
This author loses all credibility with me in the second paragraph.
Mr Leader,
Your suggestion would require the corporations to have actual common sense, something that’s in very short supply.
Pirates are thieves, there’s no two ways about it. Everyone has the right to information but it makes me laugh when people try to say that that extends to the latest Foo Fighters album, or the latest bag of shit to come out of hollywood, as though if they did not have it they would somehow be in the dark. Movies, music, games, and computer applications are not the kind of information that come as a basic freedom contrary to the ramblings of your average p2p’er. Call a spade a spade, if you download shit that you have no legal right to, you are a thief, at least have the balls to admit it instead of trying to hide behind some made up freedom of information bollocks that only exists on your head.
I am not a pirate. I am a thief, and a proud thief at that.
Great article.
Please recommend more torrent related books if there are any good ones out there.
[quote comment="258459"]Heres my Idea of how we can share without going to prison since Bens guide didn’t make it into the most popular file in the P2P World.
Why don’t the RIAA give out free music on Bittorrent with mandatory ad viewing so their advertisers say the RIAA for their music.
Why don’t every company use P2P to advertise while giving out freebies such as free mp3s, free software, free games, free cell phone minutes, and other free stuff.
Why not take advantage of P2P instead of trying to destroy and sue the P2P to death.[/quote]
In terms of the RIAA giving out music free, will hurt them a whole lot more than piracy. Reason being that if something is available free then who would buy their product if it free. Right now the case seems to be RIAA sells tracks, stuff is still pirated, and adds to RIAA’s profits as curiousity/interest from pirates leads to the purchasing of music (see previous TF article on piracy leads to increased sales).
i pay for movies i deem worthy of my money
its not many anymore
[quote comment="258500"]i pay for movies i deem worthy of my money
its not many anymore[/quote]
Indeed, most movies these days are just remakes of older ones… who the hell cares?
Listen friends.
everyone want money.
Why they opened Anti Piracy company ?
They need money too !
They won’t shut down their company if you tell them the truth.
They are human, they want $ also.
They won’t shutdown Bittorrent completely, after they shut down bittorrent, from where they’ll make $$$ ! ! !
It’s very simple! Anti Piracy makes $ from Bittorrent.
They find Torrent members, they sue them. making $ from them.
They will never shut down torrent sites. if they do, how will they find someone and sue ?
it’s pretty clear, they make $ from bittorrent sites and they really make huge $ from bittorrent.
They do fraud.
For example:
They sue someone, taking his PC from him, connecting another HDD and telling court, we found illegal songs or copyright material.
Then court fine that person 220,000$!
If you want the truth about them. sue them and get their PCs, access to MPAA/RIAA emails, read about their plans and tricks.
We are using one brain, because 1 person have only 1 brain, they are unite, a big group ( 50 or 100 person ).
all of them thinking of new tricks and ways to sue and make $. they’ll never think of shutting down a torrent site :)
Use your little brain my friends.
Enjoy MPAA/RAA, You guys really making good $ and playing with $ and ripping poor people.
( 220,000$ ) from an old mother ! ! ! LoL
Given the message, I’m surprised Matt isn’t releasing a free pdf of the book. What’s up with that?
Coincidentally, I just read about that Hollywood piracy story in Against Intellectual Monopoly, which _is_ freely available for download:
http://www.dklevine.com/general/intellectual/againstfinal.htm
All of this could have been avoided if the RIAA had just reduced the prices on CD’s to 4.99 a pop several years ago. They would have still make a ton in profits, and no one would have bothered with file sharing, as it would cost MORE in money (IE computer, blank discs, Internet connection, backup material, etc) and time (searching, downloading, burning, backing up, sorting, etc.) than it would be worth. A CD, label, and sleeve costs ME less than 75 cents to make, so how much does it cost a major production company, who’s equipment has been bought and paid for 20 years ago? 35 cents? 25 cents? I can remember a time when CD’s shared the shelves with cassette tapes and the cassettes where only 6.99 for full record recordings, so are you gonna tell me that CD’s couldn’t be produced WITH a profit for 2 bucks less. There is a lot more material in a cassette tape than in a CD. Yes, I know, someone is gonna talk about the cost of marketing… blah blah blah. How much does a website, a my space page, and any number of FREE marketing cost? Bottom line is the greedy bastards at the RIAA just didn’t want to change with the times.
[quote] Pirates are thieves, there’s no two ways about it. Everyone has the right to information but it makes me laugh when people try to say that that extends to the latest Foo Fighters album, or the latest bag of shit to come out of hollywood, as though if they did not have it they would somehow be in the dark. Movies, music, games, and computer applications are not the kind of information that come as a basic freedom contrary to the ramblings of your average p2p’er. Call a spade a spade, if you download shit that you have no legal right to, you are a thief, at least have the balls to admit it instead of trying to hide behind some made up freedom of information bollocks that only exists on your head.
I am not a pirate. I am a thief, and a proud thief at that.[/quote]
I’m sorry but I am not going to pretend sharing some movies online means I stole something just because you think it means I am more manly…
[quote comment="258486"]Pirates are thieves, there’s no two ways about it. Everyone has the right to information but it makes me laugh when people try to say that that extends to the latest Foo Fighters album, or the latest bag of shit to come out of hollywood, as though if they did not have it they would somehow be in the dark. Movies, music, games, and computer applications are not the kind of information that come as a basic freedom contrary to the ramblings of your average p2p’er. Call a spade a spade, if you download shit that you have no legal right to, you are a thief, at least have the balls to admit it instead of trying to hide behind some made up freedom of information bollocks that only exists on your head.
I am not a pirate. I am a thief, and a proud thief at that.[/quote]
Only because in 1974 the system decided to call it stealing. Before then it was perfectly fine.
Stealing is all frame of reference. The RIAA sees it as stealing. 2 of 500 see it as stealing. 498 of 500 see it as perfectly fine.
this analogy’s been used before, but i’m gonna bring it up again.
If i buy a newspaper and leave it on the table for the next person to read, that’s considered stealing because didn’t pay for that newspaper. They have no legal right to posses that newspaper. Do we go to jail because of reading newspapers that people leave behind? No.
Ontop of that, it’s the same for music. I can buy a CD at the store and use some of the songs from the CD on my website (myspace,blog,etc. etc.). The people who are listening to the music are stealing, hell they didn’t pay for the music, why are they allowed to listen to it? Just because they’re not downloading it or they don’t physically have a copy of it saved on their harddrive doesn’t mean they’re not stealing.
When you go to a store to buy a CD, you have to pay for it. If you take it without paying for it, it’s stealing. So why do people that visit websites that have music on them don’t go to jail?
e_e …
This whole stealing , not stealing argument again.
It’s NOT stealing, it’s copyright infringement.
If it was stolen, then no-one could ever hear the music again because someone stole the damn thing.
[quote comment="258545"]this analogy’s been used before, but i’m gonna bring it up again.
If i buy a newspaper and leave it on the table for the next person to read, that’s considered stealing because didn’t pay for that newspaper. They have no legal right to posses that newspaper. Do we go to jail because of reading newspapers that people leave behind? No.
Ontop of that, it’s the same for music. I can buy a CD at the store and use some of the songs from the CD on my website (myspace,blog,etc. etc.). The people who are listening to the music are stealing, hell they didn’t pay for the music, why are they allowed to listen to it? Just because they’re not downloading it or they don’t physically have a copy of it saved on their harddrive doesn’t mean they’re not stealing.
When you go to a store to buy a CD, you have to pay for it. If you take it without paying for it, it’s stealing. So why do people that visit websites that have music on them don’t go to jail?[/quote]
Not buying something does not qualify as theft as nothing of value is taken
I only read a few comments, but I’m pretty surprised at how few people realize that the things that we all pirate ARE these companies’ main products. Not ads.
I’d like that one guy to expand on how he thinks distributing the main product for free but with ads would make the artist or programmer and their higher ups any cash?
Don’t get me wrong, I may or may not pirate more than most people, but I’m pretty sure what we’re doing by taking what we want instead of paying is pretty horrible for everyone outside of our group.
I’m surprised how few people realize that pirating the RIAA, IFPI, and MPAA’s member companies’ products serves to legitimize them, making it seem they are the only good source of music and movies.
They’re not.
It’s great that you can pirate if you need to, but give some credit to everything out there that WANTS to be free. That’s where you’ll find the artists who really deserve your support.
Basically, the author took an economics class and applied it to P2P. It’s the same theory that one could apply to black markets. The idea is that supply and demand is not at equilibrium, and somebody has stepped in (pirates) to set it straight.
However, this isn’t a model that’s easily sustained. Under developed economies around the world exist in part because of the lack of property laws, the foundation of a sustainable economy. Without property laws, there is no incentive to produce goods, as no form of compensation is guaranteed.
Anyway, I won’t go all macro/micro ecoonomics on you guys, but if you want to get a better idea of the autors perspective, economics is the way to go.
So, how much did you pay him to write this article? If he wrote it pro-bono then he really is for the people, if he charged then you should probably ransack his home.
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