The always interesting James Grimmelmann has a new paper, Regulation by Software (.pdf), on how software relates to law. He starts by dissecting Lessig’s “code is law” argument. Lessig argues that code is a form of “architecture” – part of the environment in which we live. And we know that the shape of our living environment regulates behavior, in the sense that we would behave differently if our environment were different.

Orin Kerr at Volokh wrote about Grimmelmann’s paper, leading to a vigorous discussion. Commenters, including Dan Simon, argued that if all designed objects regulate, then the observation that software regulates in the same way isn’t very useful. If toothpicks regulate, and squeaky tennis shoes regulate, what makes software so special?

Which brings us to the point of Grimmelmann’s paper. He argues that software is very different from ordinary physical objects, so that software-based regulation is not the same animal as object-based regulation. It’s best, he says, to think of software as a different medium of regulation.

Software-based regulation has four characteristics, according to Grimmelmann. It is extremely formal and rule-bound. It can impose rules without disclosing what the rules are. Its rules are always applied and cannot be ignored by mutual agreement. It is fragile since software tends to be insecure and buggy.

Regulation by software will work best, Grimmelmann argues, where these four characteristics are consistent with the regulator’s goals. He looks at two case studies, and finds that software is ill-suited for controlling access to copyrighted works, but software does work well for managing online marketplaces. Both findings are consistent with reality.

This is a useful contribution to the discussion, and it couldn’t have come at a better time for Freedom to Tinker book club members.