Copyright Quirks

This post is set to follow on from my earlier one on the subject of copyright law and its origins. However, just understanding the existence of copyright law does not necessarily premeditate the understanding of the various complications, quirks and intricacies that get people quite so angry about it- so today I want to explore a few of these features that get people so annoyed, and explain why and how they came to be.

For starters, it is not in the public interest for material to stay forever copyrighted, for the simple reason that stuff is always more valuable if freely in the public domain as it is more accessible for the majority. If we consider a technological innovation or invention, restricting its production solely to the inventor leaves them free to charge pretty much what they like, since they have no competition to compete with. Not only does this give them an undesirable monopoly, it also restricts that invention from being best used on a large scale, particularly if it is something like a drug or medicine. Therefore, whilst a copyright obviously has to exist in order to stimulate the creation of new stuff, allowing it to last forever is just asking for trouble, which is why copyrights generally have expiry times. The length of a copyright’s life varies depending on a product- for authors it generally lasts for their lifetime plus a period of around 70 years or so to allow their family to profit from it (expired copyright is the reason that old books can be bought for next to nothing in digital form these days, as they cost nothing to produce). For physical products and, strangely, music, the grace period is generally both fixed and shorter (and dependent on the country concerned), and for drugs and pharmaceuticals it is just ten years (drugs companies are corrupt and profit-obsessed enough without giving them too long to rake in the cash).

Then, we encounter the fact that a copyright also represents a valuable commodity, and thus something that can potentially be put up for sale. You might think that allowing this sort of thing to go on is wrong and is only going to cause problems, but it is often necessary. Consider somebody who owns the rights to a book, and wants someone to make a film out of it, partly because they may be up for a cut of the profits and will gain money from the sale of their rights, but also because it represents a massive advertisement for their product. They, therefore, want to be able to sell part of the whole ‘right to publish’ idea to a film studio who can do the job for them, and any law prohibiting this is just pissing everybody off and preventing a good film from potentially being made. The same thing could apply to a struggling company who owns some valuable copyright to a product; the ability to sell it not only offers them the opportunity to make a bit of money to cover their losses, but also means that the product is more likely to stay on the free market and continue being produced by whoever bought the rights. It is for this reason legal for copyright to be traded between various different people or groups to varying degrees, although the law does allow the original owner to cancel any permanent trade after 35 years if they want to do something with the property.

And what about the issue of who is responsible for a work at all?  One might say that it is simply the work of the author/inventor concerned, but things are often not that simple. For one thing, innovations are often the result of work by a team of people and to restrict the copyright to any one of them would surely be unfair. For another, what if, say, the discovery of a new medical treatment came about because the scientist responsible was paid to do so, and given all the necessary equipment and personnel, by a company. Without corporate support, the discovery could never have been made, so surely that company is just as much legally entitled to the copyright as the individual responsible? This is legally known as ‘work made for hire’, and the copyright in this scenario is the property of the company rather than the individual, lasting for a fixed period (70 years in the US) since the company involved is unlikely to ‘die’ in quite the same predictable lifespan of a human being, and is unlikely to have any relatives for the copyright to benefit afterwards. It is for this reason also that companies, rather than just people, are allowed to hold copyright.

All of these quirks of law are undoubtedly necessary to try and be at least relatively fair to all concerned, but they are responsible for most of the arguments currently put about pertaining to ‘why copyright law is %&*$ed up’. The correct length of a copyright for various different stuff is always up for debate, whether it be musicians who want them to get longer (Paul McCartney made some complaints about this a few years ago), critics who want corporate ones to get shorter, or morons who want to get rid of them altogether (they generally mean well, but anarchistic principles today don’t either a) work very well or b) attract support likely to get them taken seriously). The sale of copyright angers a lot of people, particularly film critics- sales of the film rights for stuff like comic book characters generally include a clause requiring the studio to give it back if they don’t do anything with it for a few years. This has resulted in a lot of very badly-made films over the years which continue to be published solely because the relevant studio don’t want to give back for free a valuable commodity that still might have a few thousand dollars to be squeezed out of it (basically, blame copyright law for the new Spiderman film). The fact that both corporations and individuals can both have a right to the ownership of a product (and even the idea that a company can claim responsibility for the creation of something) has resulted in countless massive lawsuits over the years, almost invariably won by the biggest publishing company, and has created an image of game developers/musicians/artists being downtrodden by big business that is often used as justification by internet pirates. Not that the image is inaccurate or anything, but very few companies appear to realise that this is why there is such an undercurrent of sympathy for piracy on the internet and why their attempts to attack it through law have met with quite such a vitriolic response (as well as being poorly-worded and not thought out properly).

So… yeah, that’s pretty much copyright, or at least why it exists and people get annoyed about it. There are a lot of features concerning copyright law that people don’t like, and I’d be the last to say that it couldn’t do with a bit of bringing up to date- but it’s all there for a reason and it’s not just there because suit-clad stereotypes are lighting hundred dollar cigars off the arse of the rest of us. So please, when arguing about it, don’t suggest anything should just go without thinking of why it’s there in the first place.

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Money- what the &*$!?

Money is a funny old thing- the cornerstone of our way of existence, the bedrock of modern-day life, and the cause of, and solution to, 99% of all life’s problems. But… well, why? When you think about it, money doesn’t actually mean anything- it is an arbitrary creation brought in for convenience’s sake, and yet it as an entity has spiralled into so much more than a mere tool. Now how on earth did that happen?

Before about two and a half thousand (ish) years ago, money just about not exist. To the best of my knowledge, coinage only became commonplace in Europe with the rise of the Roman Empire- indeed, when they left Britain in the 5th century AD, much of the country went back to simply bartering- trading goods and services for other goods and services. This began to change as time went on however, and by the time of William the Conqueror’s invasion, the monetary system was firmly established across Europe. Coins were a far more efficient system than bartering- trading stuff for one another is a highly subjective process, and it can be hard to get a sense of value and to what extent you were being ripped off. By giving everything a fixed, arbitrary value (ie a price), everything suddenly had a value relative to one another. More importantly, this allowed for goods and services to be traded for the potential to buy more goods and services of equal value in coin form, rather than the things themselves, which was both easier and more efficient (there was now no risk of carrying a lampshade to the supermarket to exchange for a pint of milk, because a wallet is far easier to carry). The idea of money representing the potential to buy things can be seen by anyone looking on a British note, where it reads “I promise to pay the bearer on demand the sum of…” however many pounds (this is in fact a callback to the days when banks stuck to the gold standard, when you could theoretically walk into the Bank of England and ask for five pound’s worth of gold for your fiver).

However, with coins representing potential to buy things, they instantly took on a value of their own, and here things start to get confusing. Because, when money itself takes on a value, it instantly becomes a commodity just like any other- just as people trade in gold bullion, oil and bits of companies, so people trade with money itself. And this… actually, I’ve got ahead of myself- let me take a step backward.

The input of human effort can be used to increase the value of various bits of the world we live in. For example- a heap of planks may be bought for £50 from a sawmill, but once you have gone home and spent 6 hours swearing at a hammer, you may now have a bench or something worth £500 or more. The materials themselves have not changed, but since a bench is more useful, better looking, and is better appreciated by people than a few planks, people set more value by it. Because more value is set by it, so it is worth more money.

This, at a base level, is how the economic system works- human effort is used to turn raw materials, which we don’t want, into products, which we do. Because people want these products, they pay money for them, and because they need this money to pay for them, they get a job. Because they are providing human effort to their boss (which itself has a value for its ability to raise the value of raw materials), their boss pays them the money they need. The boss gets the money he uses to pay his employees from selling things to people, which makes money because the human effort put in to make his final product raises the value of his final product above that of the raw materials he bought in order to make it- and thus we are back at the beginning of the cycle.

If we study this process, we can see that the only way the boss can make any money out of it is if the value of his final product (F) is greater than the value of its raw materials (M) plus however much he pays his employees for the effort they input (E)- ie, F>M+E. However, pretty much by definition, F should equal M+E- thereby the only way he can make money is by paying his workers less than their human effort is actually worth in the context of the product (A communist would seize on this as evidence of corporations exploiting the masses, but I refuse to go into this argument here- it is far too messy). This is the only way that any money actually gets produced in an economy, and the result is inflation. If inflation did not exist, then the only way anyone could make any money would be by spending less- but this automatically means that somebody else will not be getting your money, and so will be losing some. Thus inflation is vital to ensure that everybody in an economy gains money, and although this does lead to the gentle devaluation of currency, it allows the human race to stay one step ahead of a potential vicious cycle of decline- and inflation can only be generated by an economy manufacturing things.

But why do we need our level of money to continually rise? Well, imagine you have a steak worth £5 (It’s just an example, don’t judge me on my figures). When you eat that steak, something of value £5 has been turned into the contents of your gut, and ultimately into what comes out the other end- which is clearly worth a lot less than the steak. Thus, the human race consuming resources  reduces the overall value of planet earth, just as making stuff increases it. Nature in fact has an inbuilt system to prevent this from turning into a cycle of endless decline- reproduction. If the cow you ate your steak from had had a calf, then nature has ensured that your consumption of the steak has not, in the long run, decreased the overall steak value of the world due to the steak potential existing in the calf (I’ve just realised I’m making all these terms up on the fly- my apologies). I could go into the whole energy from calf <- energy from grass <- energy from sun <- universe in general etc. thing here, but this is extrapolating the economic problem somewhat. However, suffice it to say that ensuring our overall monetary value continues to rise via inflation is our version, from an economic perspective, of reproduction, balancing out our consumption of finite resources in terms of value.

Phew- this is getting longer than I anticipated. My apologies once again for it turning into a semi-coherent ramble, I only hope you could follow it. There is still quite a lot more to get through, so I think I’ll try to wind this all up on Wednesday (after another Six Nations post Monday- COME ON ENGLAND!). If you have been able to follow all of that then congratulations- you now understand core economics. If you haven’t then also congratulations- you are sufficiently normal to not understand my way of thinking.