Blair Levin, Managing Director, Legg Mason; Bruce Mehlman, Asst Secy for Tech Policy, Dept of Commerce; Gregory Staple, Partner, Vinson and Elkins; Gigi Sohn, President, Public Knowledge "Tech Policy Outlook" Impressionistic transcript by Cory Doctorow doctorow@craphound.com July 9, 2003 Supernova Conference Washington DC -- Bruce Mehlman: The Internet is more valuable with more users. But if everyone is on, and using MSFT email, there's a serious security risk if MSFT mail is targeted by a worm. Growing and maintaining the best and brightest is a major challenge. On the one hand, the Internet is global medium and 27K taxing juridisctions will break it, but there's local control needed, 'cause I don't want porn for my kids (but China wants to keep democracy off its network). The Founders created intellectural property not to enrich inventors but to enrich society -- so follow-ons could stand on their shoulders. -- Blair: Tech growth is a function of innovation, which is a function of investment. The four major factors that affect investment: 1. Regulation at the Federal level 2. State regs 3. Merger policies 4. Tax policies The Bells will be major investors: 1. They can buy new spectrum 2. They can invest in WiFi 3. They can invest in video 4. They can offer service anywhere in the country and enter in the enterprise market (or buy WorldCom) 5. They can give bigger dividends -- Gigi: Tech and policy makers shouldn't be lapdogs for Hollywood. Copyright has been a one-sided debate for years. Content industries built long relationships with Congress and the members of Congress. It's only slowly that tech and public interest communities are getting involved. Content is trying to push for tech mandates, including copyright protection. Last year saw the failed Hollings Bill. Hollywood has taken this to the the FCC for "Hollings Light" in the Broadcast Flag. They're working to introduce "Super-DMCAs" in the state legislatures (unless you have your cable-provider's express permission, you can't connect a device to your cable -- you can't connect a TiVo without permission, which you won't get if your cable carrier has its own crappy PVR). No matter how you feel about DRM, we can all agree that the worst-equipped body to describe DRM is the goverment. Hollywood is also asking for increased enforcement. Lamarr Smith has introduced a bill to involve the FBI in enforcing copyright -- as if the FBI didn't have enough to do fighting Al Quaeda. The Recording Industry is using a simple subpoena process granted under the DMCA to hunt down file-sharers, on the strength of unsubstantiated allegations. Verizon has been the whipping boy so far, but the cable-modem providers are next. The FCC is an open agency: engange in substantive conversation with them. 750,000 people sent nearly identical media consolidation letters, but that's not as persuasive as tech execs reaching out to oppose issues. Tech laid down and died on Broadcast Flag. Spectrum: It's important to ensure that spectrum doesn't enrich corporations at public expense: 1. Commons shouldn't be the dregs of spectrum We can fight consolidation with spectrum. Don't give it to Verizon and NBC. GIve it to the public. More unlicesned spectrum. 2. Spectrum shouldn't be allocated in perpetuity Spectrum should be leased and enrich the public 3. Why, when 90% of Americans get spectrum through cable/satellite, which should be give all that spectrum to the broadcasters? This is beachfront spectrum. Imagine if it could be part of unlicensed spectrum! -- Bruce: If you want more success in digital content and more digital content online, you need the government involved: 1. More DRM. DVD keeps honest users honest. 2. Content doesn't need to be free. It's based on economic returns. More spoofing: Hatch is good. It's not unreasonable to non-destructively disrupt the market for technology. 3. Content guys need to look to new business-models. 4. IPR enforcement: government suits against infringers. The FBI and the DOJ should go after large commercial infringers. 5. We need to educate people that stealing is wrong. File sharing is like shoplifting. 6. Market-based cooperation: this shouldn't be in DC. -- Blair: Wall Street loves those proposals. These fights retard economic growth. -- Blair: The end of line-sharing screws Covad, which is a terffic company that has done a lot to drive braodband. -- Bruce: The content community has very effectively spoken with one voice. Tech is divided. [Ed: Yeah, Courteney Love and Madonna are speaking with one voice, sure.] -- Gigi: Yeah, we don't agree on anything. -- Blair: Congress isn't important to policy. They don't act that often. They don't effect investment the way the FCC does. -- Gigi: Lots of letters to Congress is powerful, even if they're not substantive. But that doesn't apply to the FCC. The FCC is where you go with a substantive case. The Courts are important to copyright -- even though you can't spam them. They pay attention though -- see the recent Supreme Court decision on civil rights. Law professors need to get the judges wised up. -- Bruce: I don't believe that file-sharers are sharing because of copyright extension. -- Weinberger: We're making our own public domain because the government took it away from us.