Internet

Gilmore-Girls

Spoiler Alert! Illegal Downloaders Steal Content Even When Legally Available

The film and TV industry receives a lot of flak from critics for being its own worst enemy. If Hollywood studios want consumers to pay for content, the argument goes, then they should make it easier to download legally. If piracy is a problem for the industry, then maybe it should take a hard look in the mirror.

The only problem with this argument is that it’s completely false. KPMG just released a first of its kind study assessing the availability of movies and TV shows online. It found that as of December 2013, 81 percent of the 808 unique films studied were available on at least 10 of the 34 online video-on-demand (VOD) service providers. Only 50 of the films studied were not available on any of the 34 online video offerings that KPMG reviewed. The study also found rapid growth in the number of TV viewing options available to audiences. Overall, 85 percent of the most popular and critically acclaimed TV titles were available in the U.S. through legitimate online video services.

This development could not be timelier, with both the ramp up to the Oscars and Fall … Read the rest

Taken by Tom Blackwell

The LEADS Act presents a path forward for cross-border digital searches

Last week, Senators Hatch, Coons and Heller introduced the Law Enforcement Access to Data Stored Abroad (LEADS) Act which seeks to clarify the powers that warrants issued by the U.S. courts have on data stored abroad. The LEADS Act also focuses on reforming the Mutual Legal Assistance Treaty (MLAT) process, which are agreements designed for law enforcement agencies to receive and provide assistance to their counterparts in other countries. If enacted, this law could have both immediate effects on a current court case, and far-reaching effects on international agreements for cross-border access to data for law enforcement purposes.

Until now, the U.S. government has argued that it could use the powers granted to it under the Electronic Communications Privacy Act (ECPA) to gain lawful access to data stored abroad if the company storing it had a presence on U.S. soil. The LEADS Act would clarify ECPA, stating specifically that the U.S. government cannot compel the disclosure of data from U.S. providers stored abroad if accessing that data violates the laws of the country where it is stored or if the data is not associated with a U.S. person—a citizen or … Read the rest

Cast pf Firefly

They Aim to Misbehave

Last Monday night, the television world was abuzz with anticipation for what seemed like the perfect end to the “McConaissance”: an Emmy, in the same year as his Oscar, for actor Matthew McConaughey’s performance in the acclaimed HBO drama True Detective. Defying all expectations (and perhaps the Vegas odds) McConaughey lost to repeat winner Bryan Cranston, for his equally acclaimed work on the hit AMC series Breaking Bad. The triumph of TV stardom over movie stardom is rare in Hollywood, and as host Seth Meyers noted at the beginning of the night, “[TV’s] not like that high-maintenance diva movies, who expect you to put on pants and drive all the way over to her house and buy $40 worth of soda.” Perhaps this is why TV is also gaining on movies in another area besides awards: piracy.

Piracy in TV is rapidly increasing, as just about every Emmy-nominated show—broadcast, cable, pay-per-view and streaming—suffers from illegal downloads. In fact, surprisingly, according to Tru Optik, it is Netflix’s Orange is the New Black (OITNB) that secured the second spot this year, behind oft-cited industry statistic, HBO’s Game of Thrones. … Read the rest

Bitcoin Keychain

“BitLicenses” Explained

In the past few years, virtual currencies, particularly Bitcoin, have jumped from an online experiment to a multi-billion dollar global phenomenon. Now, governments are starting to recognize these currencies, hoping to both legitimize and secure them with proposed regulations. On July 17, the New York State Department of Financial Services (NYSDFS) released a proposed regulatory framework for virtual currency that would require businesses that hold, transmit or convert virtual currencies to everyday currencies to apply for “BitLicenses.” This is one of the first proposed regulations on virtual currencies in the United States since the IRS proclaimed Bitcoin to be property subject to capital gains tax last March. While NYSDFS is still only seeking comments on these rules and nothing is final, I will attempt to break down the proposal as is and provide some initial thoughts on the implications for virtual currencies.

What is the purpose of the regulations?

NYSDFS announced these regulations as a result of public hearings it conducted in January 2014. NYSDFS hopes to use these rules to protect consumers, prevent money laundering, and improve cyber security for businesses that use virtual currencies. These regulations represent … Read the rest

Image taken by Bob Mical.

How FITARA Can Help Federal Agencies with Their IT Problem

In 2004, the Department of Veterans Affairs was forced to scrap a multimillion-dollar computer system that was designed to streamline the agency’s costs. Ironically, the project cost taxpayers $265 million, and is one of many examples of federal IT projects which go massively over budget and under deliver. Part of the reason for these failures is the last time we made significant changes to how our government acquired its own IT was the Clinger-Cohen Act of 1996. This law was enacted the year before Google.com was registered as a domain name, back when Windows 95 was the new big thing. Almost two decades later, while innovation has continued to press forward, our government’s ability to efficiently acquire new IT has lagged miserably behind.

Luckily, a few lawmakers are trying to remedy that. In March 2013, Congressmen Darrell Issa (R-CA) and Gerry Connelly (D-VA) introduced H.R. 1232, the Federal Information Technology Acquisition Reform Act (FITARA), to overhaul the federal government’s approach to acquiring IT. The bill seeks to designate clear responsibility and authority over federal IT investment, enhance the government’s ability to get good IT, strengthen the federal IT … Read the rest

InternetTaxblog

Misinformation in the Internet Tax Freedom Act Debate

In 1998, Congress recognized that taxation could slow the growth of the Internet adoption and suppress the enormous potential of the digital economy and so it passed the Internet Tax Freedom Act (ITFA) to prohibit states from imposing new taxes on Internet access. After being renewed in 2001, 2004, and 2007, ITFA is once again set to expire and there is a lively debate over whether it should reauthorized and made permanent.

Unfortunately, not all participants in the debate are presenting the facts accurately. Michael Mazerov, a Senior Fellow with the Center on Budget and Policy Priorities’ State Fiscal Project, recently wrote a blog post opposing the extension, and one of his key assertions was that there are no differences in broadband subscription rates between states with and without taxes placed on Internet access. To back this dubious claim, Mazerov cites a 2006 report from the Government Accountability Office (GAO).

But there’s only one problem: the GAO didn’t say this.  In fact, when presenting its finding, the GAO states very clearly that their ability to properly analyze the problem was compromised by a lack of broadband pricing data. The only … Read the rest

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ITIF’s Top 10 Net Neutrality Hits

This past Thursday, the FCC voted to kick off a new attempt at open Internet regulations, marking yet another milestone in the history of the net neutrality debate. Over the years ITIF has been at the forefront of this debate, and will continue to do so. Below is a top-10 list of ITIF publications that both explain how advanced IP networks actually work and advance our “third way,” middle-ground approach.  To see all of ITIF’s work in this area, please go to www.itif.org and click on “issues: broadband”

1. A “Third Way” on Network Neutrality

In May, 2006 Rob Atkinson and Phil Weiser bemoaned the fact that “the network neutrality debate denies the reasonable concerns articulated by each side and obscures the contours of a sensible solution.” Eight years later, and this paper’s diagnosis and cure still hold value. It argues that policymakers should ensure a baseline of a high-bandwidth, best-efforts Internet connection while taking an “antitrust-like” approach to any discriminatory access arrangements.

2. Designed for Change: End-to-end Arguments, Internet Innovation, and the Net Neutrality Debate

One of the meatier ITIF publications on net neutrality, this report digs into the … Read the rest

The Nanny Police Are at IT Again

The Washington Post printed a story about how the Campaign for a Commercial-Free Childhood has submitted the opinions of six experts on child development to the Federal Trade Commission in support of CCFC’s complaint against toy maker Fisher-Price for marketing its “Laugh and Learn” app for infants and small children.

One of the six experts, Herbert Ginsburg writes, “Existing research suggests that infants and very young children are not cognitively ready to learn key abstract ideas about numbers. Although some children at the upper bounds of this age range might learn to parrot some number words they are highly unlikely to learn important concepts of numbers.”

To be sure I am not a child development expert (although I did study child development in college.) I am a parent of a wonderful daughter. When she was 19 months old I ran across a Fisher Price online game, “The ABC Game“, which taught infants and toddlers their letters. (This was pre-tablet so I used a laptop). My daughter would press keys on my laptop and up would pop a picture of the letter, a picture of an animal whose first … Read the rest

Taylor Swift

We Are Never Ever Getting Back Together

A few days ago, Marvin Ammori published a piece on Slate titled, “Hollywood’s Copyright Lobbyists Are Like Exes Who Won’t Give Up”, in reference to  the House Judiciary Subcommittee on Courts, Intellectual Property and the Internet holding a hearing regarding the Digital Millennium Copyright Act (DMCA) notice and takedown system. In it, he alleges that the hearing’s existence, created to discuss the potential of voluntary initiatives among copyright stakeholders, is proof of a conspiratorial secret resurgence of the Stop Online Piracy Act (SOPA).

Ignoring the ludicrous nature of this claim — does every hearing that every committee holds in the entirety of the U.S. Congress have some secret ulterior purpose now? — his argument is demonstrably false.  Let’s start with the facts: the DMCA notice and takedown system is the process by which content creators notify service providers that they are illegally distributing content.  In exchange for working collaboratively with rights holders, service providers receive a “safe harbor” from prosecution. The House Judiciary subcommittee hearing tomorrow is an opportunity to discuss voluntary initiatives among stakeholders to curb piracy, not a chance to propose new legislation (and in case anyone … Read the rest

Kim DotCom Thinks You Are a MegaIdiot

On Sunday evening, CBS’s 60 Minutes aired a report that reviewed the trials and tribulations of Kim DotCom—the self-styled villainous creator of the website MegaUpload. Prior to its infamous shutdown in 2012, MegaUpload was the premiere website for the illegal sharing of copyrighted works such as movies, TV shows, and music.

The 60 Minutes piece focuses primarily on the perspective of DotCom, including his delusion that he has been unfairly targeted by the U.S. Department of Justice (DOJ). He repeatedly states that he should not be held responsible for the actions of his users; the website was designed for file sharing, and what his users chose to share is not his concern. In fact, DotCom expresses a desire for his work to be compared to that of movie heroes such as James Bond, only to have Bob Simon aptly point out that he is in fact much closer in persona to Dr. No — the flamboyant lifestyle, the private island, etc. It is this persona that DotCom alleges is responsible for the FBI targeting him, rather than the fact that he built a website designed to illegally exploit copyrighted works … Read the rest