November 24, 2024

Regulation by Software

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.

DRM and 'casual piracy'

Some background on a major transformation taking place in the music industry, even as most mainstream media organizations print not a word about it:

Reuters article, May 31: Sony BMG tests technology to limit CD burning.

As part of its mounting U.S. rollout of content-enhanced and copy-protected CDs, Sony BMG Music Entertainment is testing technology solutions that bar consumers from making additional copies of burned CD-R discs. …

“The casual piracy, the schoolyard piracy, is a huge issue for us,” says Thomas Hesse, president of global digital business for Sony BMG. “Two-thirds of all piracy comes from ripping and burning CDs, which is why making the CD a secure format is of the utmost importance.” …

Among the biggest headaches: Secure burning means that iPod users do not have any means of transferring tracks to their device, because Apple Computer has yet to license its FairPlay DRM for use on copy-protected discs. …

San Jose Mercury News, June 15: Music industry eyes `casual piracy.’ Major labels to copy-protect all CDs sold in the U.S. The story begins:

The record labels are in pursuit of a new class of music pirates – not the millions who download bootlegged songs over the Internet but those who copy music CDs for their friends. …

It’s surprising to me that the Mercury News has accepted the record labels’ terminology in this matter. Piracy refers to making unauthorized reproductions of digital media for financial gain – or, stretching the term, for indiscriminate distribution. It is not piracy – “casual” or otherwise – when you buy music and make a few copies for close friends.

As Jessica Litman, author of “Digital Copyright,” writes in her law review article “War Stories,” 20 Cardozo Arts & Entertainment Law
Journal 337 (2002):

Under the old way of thinking about things, copying your CD and carrying the copy around with you to play in your car, in your Walkman, or in your cassette deck at work is legal. Borrowing a music CD and making a copy on some other medium for your personal use is legal. Recording music from the radio; maxing different recorded tracks for a ‘party tape,’ and making a copy of one of your CDs for your next-door neighbor are, similarly, all lawful acts. The copyright law says so: section 1008 of the copyright statute provides that consumers may make non-commercial copies of recorded music without liability. Many people seem not to know this any more.

Now, this is not to say that individuals have a right to make an unlimited number of an unlimited number of CDs for their friends. But where is the debate on this issue? The Merc article goes on:

Sony BMG Music Entertainment, home to some of the music industry’s biggest acts, including Bruce Springsteen, System of a Down and Shakira, plans to copy-protect all music CDs sold in the United States by the end of the year. Another major label, EMI, whose artist roster includes Coldplay and Norah Jones, will introduce copy-protected CDs in its two largest markets – the United States and the United Kingdom – in the coming weeks.

For consumers, it signals an abrupt change to the rip, mix, burn mania embodied by the 2001 Apple Computer ad campaign promoting the first iMac computer with a CD burner and software for creating custom music CDs. These new copy-protected discs limit the number of times people can create copies of music CDs or add individual songs to music mixes. …

On the PC, a message appears that asks the buyer for permission to install a piece of software on the desktop. Answer no, and the disc is ejected. It won’t play. Once installed, the software regulates how often people can rip a full copy of the CD to the computer, burn individual tracks or make full copies of each album. EMI, for example, will permit the consumer to upload an album once per computer, burn individual tracks seven times and make up to three full copies of each CD.

Should we allow the record labels to define the extent of our fair use rights through the DRM they place on the CDs we buy? (Ernest Miller suggests that the labels are making a strategic mistake through this attack on copying/sharing among family members and friends.)

This latest bit of news comes on top of the restrictions placed on other uses of digital media:

– it’s a federal offense to back up a copy of your DVD;

– it’s illegal to copy a purchased computer game with DRM onto your laptop or desktop;

– the new generation of digital television may impose similar limits on how you can copy or burn Hollywood programming.

Will citizens balk at these kinds of restrictions, or come to accept them? My suspicion is that the Darknet will grow in direct proportion to actions that turn mainstream Americans into “casual pirates.”

A 'Darknet' backgrounder

OK, time to dive in here from my hotel room. A little while ago I posted a guest entry on the Berkman blog that offers a few details about how Darknet and Ourmedia came to be. It’s hard to summarize a book’s major themes in a paragraph or two, but the basic thrust is:

– Increasingly we’re become creators and co-creators of our media experiences instead of merely passive receptacles for big media content. I call this the personal media revolution.

– The law is fast becoming out of sync with what people want to do with media – to reclaim it, borrow from it, remix it and recirculate it.

– As such, the law is turning millions of us into a nation of digital felons. I cite example after example of people (a Boston pastor, an Intel vice president) using media in reasonable ways and yet finding themselves on the wrong side of the law because they’re broken the encryption on a DVD or tried to apply the precepts of fair use to our increasingly visual culture.

– But most of “Darknet” is not about the law – it’s about the future of media (movies, television, music, computing, games) and what kind of media we want as a society: spoonfed, one-way, traditional media or a more vibrant, interactive form of media filled with grassroots, shared experiences?

I suspect you can tell where I come down.

A Land Without Music

Here’s a story I heard recently from an anonymous source. Based on the source’s identity and some of the details of the story, I believe it to be true. I have omitted some details here, to protect the source.

A well-known company, running a massive multi-player virtual world, was considering adding a new space to their world. Due to the nature of the space, characters there would probably want to make music. So the programmers created a set of virtual musical instruments, and tools for players to create their own instruments. The plan was that players would get virtual instruments and make music, for all of the reasons people make music in the real world.

But management nixed the idea, on advice from lawyers, because of concerns about copyright infringement. The problem was that players might use their virtual instruments to play copyrighted songs, and the game company might be sued for contributory or vicarious copyright infringement, for failing to prevent this.

Stop for a minute to think about this. All kinds of virtual objects exist in this virtual world, including a wide variety of weapons. But saxophones? Too risky. Presumably management would have approved a magic saxophone that was only capable of playing non-copyrighted songs, but the engineers had no idea how such a thing could be built.

To put this in context, recall that programmable virtual instruments are widely sold and used in the real world. They’re called synthesizers, and they’re really just computers that can be programmed to play any sequence of sounds, whether copyrighted or not. It’s not so easy to draw a principled line between real-world synthesizers and game-world instruments that makes one legal and the other illegal.

Perhaps the company was being overly cautious and the lawsuit risk was illusory. But I’m not so sure. This would hardly be the most farfetched copyright lawsuit we have seen.

Why I Can't Tinker with my Household Cleaner

John Mark Ockerbloom emailed an interesting story about Federal regulation of tinkering with household chemicals, which I quote here with permission:

I just washed our kitchen floor tonight. And (I admit guiltily)I haven’t done it in a while– usually I “let” my wife do it. So I look at the small print on the label of our Lysol All-Purpose Cleaner to remind me what to do, as I fill a bucket with water. And there I see the words “It is a violation of federal law to use this product in a manner inconsistent with its labeling.”

And I get to wondering: what law? And why? It’s all well and good that, for now at least, I can tinker with my digital TV signal, and I’m right with you at wanting to be able to tinker with my software. But supposing I like hacking cleaners or chemicals instead of code– why can’t I tinker with my cleaner like I should be able to with my computer?

Maybe, I think, it’s just like one of those overbroad warnings you sometimes see affixed to copyright notices. And I start to think about what the *real* regulation might be– using it to make a drug? An explosive? Poison? What can I really do with this, and what can’t I? And why?

15 minutes after firing up Google, I think I have my answer. Technically, under federal law I really *can’t* do anything with it other than what the label tells me to do– unless it’s to use a lower dose than what’s on the label. The relevant law appears to be in Title 7, Chapter 6, Subchapter II: Environmental Pesticides. 7 USC 136j tells me it really is illegal to use pesticides in a manner inconsistent with the labeling. And “pesticide” is defined in 7 USC 136 (u). I don’t see that it obviously includes my Lysol bottle, but another web page tells me that the EPA considers this definition to include disinfectants. My Lysol bottle claims to disinfect, so I gather this makes it a pesticide, and therefore subject to this federal law, and thus illegal to hack, as it were.

Now, my question: is this legal overreaching, and if so, where exactly is the overreach? I can see a legitimate reason for a government (if not federal, than at least state) to stop people from polluting the environment, as might occur if they dump too much bug killer– or even household cleaner– into the air or water. But can they really prevent me from doing anything other than what the labeler allows with my cleaner? (Like try to mix it with other ingredients to make a safer cleaner, or doing cleaner-vs-Twinkie endurance experiments, or seeing if I can separate some ingredients from the rest– in all cases being careful to contain and control the liquid and its vapors, and keep them on my property?) Or is the EPA, or Congress, overstepping its powers somehow?

And if not, then is there anything stopping Congress from giving, say, the FCC broad powers to prohibit using, say, digital media or devices in a manner inconsistent with the labeling their manufacturers give them? (There might be the First Amendment… or there might not be. It’s not clear it would apply in all electronic tinkering cases, and cases like Pacifica show that it can overridden in some cases where it would seem to apply.)

I’d be interested in finding out more, before I start seeing notices saying “it is illegal to record this program in a manner inconsistent with the presence of commercials” on my TV…

He also notes this:

I do see that it’s possible to get an “experimental use permit” to tinker with things considered pesticides, described in 7 USC 136c. Though it sounds like it’s not trivial to get; among other things, there’s a sentence in 136c that states “The Administrator may issue an experimental use permit only if the Administrator determines that the applicant needs such permit in order to accumulate information necessary to register a pesticide under section 136a of this title.”