Intellectual Property Rights

This blog post is based on a presentation made at the iTechLaw conference held on February 5, 2010. The audience consisted of lawyers from various corporations and corporate law firms. As is their wont, most lawyers when dealing with software patents get straight to an analysis of law governing the patenting of computer programmes in India and elsewhere, and seeing whether any loopholes exist and can be exploited to patent software. It was refreshing to see at least some lawyers actually going into questions of the need for patents to cover computer programs. In my presentation, I made a multi-pronged case against software patents: (1) philosophical justification against software patents based on the nature of software; (2) legal case against software patents; (3) practical reasons against software patents.

Preamble

Through these arguments, it is sought to be shown that patentability of software is not some arcane, technical question of law, but is a real issue that affect the continued production of new software and the everyday life of the coder/hacker/software programmer/engineer as well as consumers of software (which is, I may remind you, everywhere from your pacemaker to your phone). A preamble to the arguments would note that the main question to ask is: why should we allow for patenting of software? Answering this question will lead us to ask: who benefits from patenting of software. The conclusion that I come to is that patenting of software helps three categories of people: (1) those large software corporations that already have a large number of software patents; (2) those corporations that do not create software, but only trade in patents / sue on the basis of patents ("patent trolls"); (3) patent lawyers. How they don't help small and medium enterprises nor society at large (since they deter, rather than further invention) will be borne out by the rest of these arguments, especially the section on practical reasons against software patents.

What are Patents?

Patents are a twenty-year monopoly granted by the State on any invention. An invention has to have at least four characteristics: (0) patentable subject matter; (1) novelty (it has to be new); (2) inventive step / non-obviousness (even if new, it should not be obvious); (3) application to industry. A monopoly over that invention, thus means that if person X has invented something, then I may not use the core parts of that invention ("the essential claims") in my own invention. This prohibition applies even if I have come upon my invention without having known about X's invention. (Thus, independent creation is not a defence to patent infringement. This distinguishes it, for instance, from copyright law in which two people who created the same work independently of each other can both assert copyright.) Patents cover non-abstract ideas/functionality while copyright covers specific expressions of ideas. To clarify: imagine I make a drawing of a particular machine and describe the procedure of making it. Under patent law, no one else can make that particular machine, while under copyright law, no one can copy that drawing.

Philosophical Justification Against Software Patents

Even without going into the case against patents per se (lack of independent creation as a defence; lack of 'harm' as a criterion leading to internalization of all positive externalities; lack of effective disclosure and publication; etc.), which has been done much more ably by others like Bessen & Meurer (especially in their book Patent Failure) and Boldrin & Levine (in their book Against Intellectual Monopoly, the full text of which is available online).

But there is one essentially philosophical argument against software as subject matter of a patent. Software/computer programs ("instructions for a computer"), as any software engineer would tell you, are merely algorithms ("an effective method for solving a problem using a finite sequence of instructions") that are meant to be understood by a computer or a human who knows how to read that code.

Algorithms are not patentable subject matter, as they are mere expressions of abstract ideas, and not inventions in themselves. Computer programs, similarly, are abstract ideas. They only stop being abstract ideas when embodied in a machine or a process in which it is the machine/process that is the essential claim and not the software. That machine or process being patented would not grant protection to the software itself, but to the whole machine or process. Thus the abstract part of that machine/process (i.e., the computer program) could be used in any other machine/process, as it it is not the subject matter of the patent. Importantly, just because software is required to operate some machine would then not mean that the machine itself is not patentable, just that the software cannot be patented in guise of patenting a machine.

Legal Case Against Software Patents

In India, section 3(k) of the Patent Act reads:

(3) The following are not inventions within the meaning of this Act: (k) a mathematical or business method or computer programme (sic) per se or algorithms.

As one can see, computer programs are place in the same category as "mathematical methods", "algorithms", and "business methods", hence giving legal validity to the idea propounded in the previous section that computer programs are a kind of algorithms (just as algorithms are a kind of mathematical method).

Be that as it may, the best legal minds in India have had to work hard at understanding what exactly "computer programme per se" means. They have cited U.S. case law, U.K. case law, E.U. precedents, and sought to arrive at an understanding of how per se should be understood. While understanding what per se means might be a difficult job, it is much easier to see what it does not mean. For that, we can look at the 2004 Patent Ordinance that Parliament rejected in 2005. In that ordinance, sections 3(k) and (ka) read as follows:

(3) The following are not inventions within the meaning of this Act: (k) a computer programme per se other than its technical application to industry or a combination with hardware; (ka) a mathematical method or a business method or algorithms.

Thus, it is clear that the interpretation that "computer programme per se" excludes "a computer programme that has technical application to industry" and "a computer programme in combination with hardware" is wrong. By rejecting the 2004 Ordinance wording, Parliament has clearly shown that "technical application to industry" and "combination with hardware" do not make a computer programme patentable subject matter.

Indeed, what exactly is "technical application to industry"? "Technical" has various definitions, and a perusal through those definitions would show that barely any computer program can be said not to relate to a technique, not involve "specialized knowledge of applied arts and sciences" (it is code, after all; not everyone can write good algorithms), or not relate to "a practical subject that is organized according to scientific principles" or is "technological". Similarly, all software is, by definition, meant to be used in combination with hardware. Thus, it being used in combination with hardware must not, as argued above, give rise to patentability of otherwise unpatentable subject matter category.

In 2008, the Patent Office published a new 'Draft Manual Of Patent Practice And Procedure' in which it sought to allow patenting of certain method claims for software inventions (while earlier the Patent Office objected to method claims, allowing only device claims with hardware components). This Draft Manual was withdrawn from circulation, with Shri N.N. Prasad (then Joint Secretary of DIPP, the department administering the Patent Office) noting that the parts of the Manual on sections 3(d) and 3(k) had generated a lot of controversy, and were ultra vires the scope of the Manual (which could not override the Patent Act). He promised that those parts would be dropped and the Manual would be re-written. A revised draft of the Manual has not yet been released. Thus the interpretation provided in the Draft Manual (which was based heavily on the interpretation of the U.K. courts) cannot not be relied upon as a basis for arguments in favour of the patentability of software in India.

In October 2008, CIS helped organize a National Public Meeting on Software Patents in which Indian academics, industry, scientists, and FOSS enthusiasts all came to the conclusion that software patents are harmful for both the industry as well as consumers.

Practical Reasons Against Software Patents

This is going to be an attempt at distilling and simplifying some of the main practical arguments against patenting of software.

There are traditionally four incentives that the patent system caters to: (1) incentive to invent; (2) incentive to disclose; (3) incentive to commercialize; and (4) incentive to invent substitutes. Apart from the last, patenting of software does not really aid any of them.

1. Patent Landmines / Submarine Patents / Patent Gridlocks / No Exception for Independent Creation

   Given that computer programs are algorithms, having monopolies over such abstract ideas is detrimental to innovation. Just the metaphors say a lot about software patents: landmines (they cannot be seen/predicted); submarines (they surface out of the blue); gridlocks (because there are so many software patents around the same area of computing, they prevent further innovation in that area, since no program can be written without violating one patent or the other).

   Imagine the madness that would have ensued had patents been granted when computer programming was in its infancy. Imagine different methods of sorting (quick sort, bubble sort) that are part of Computer Science 101 had been patented. While those particular instances aren't, similar algorithms, such as data compression algorithms (including the infamous LZW compression method), have been granted patents. Most importantly, even if one codes certain functionality into software independently of the patent holder, that is still violative of the patent. Computer programs being granted patents makes it extremely difficult to create other computer programs that are based on the same abstract ideas. Thus incentives # (1) and (3) are not fulfilled, and indeed, they are harmed. There is no incentive to invent, as one would always be violating one patent or the other. Given that, there is no incentive to commercialize what one has invented, because of fear of patent infringement suits.

   An apt illustration of this is the current difficulty of choosing a royalty-free video format for HTML 5, as it shows, in practical terms, how difficult it is to create a video format without violating one patent or the other. While the PNG image format was created to side-step the patent over the LZW compression method used in the GIF image format, bringing Ogg Theora or Dirac (both patent-free video format) to surpass the levels of H.264/MPEG-4 AVC or VC-1 will be very difficult without infringing dozens if not hundreds of software patents. Chris DiBona of Google, while talking about improving Ogg Theora as part of its inclusion in HTML 5 specifications said, "Here’s the challenge: Can Theora move forward without infringing on the other video compression patents?" Just the number of companies and organization that hold patents over H.264 is astounding, and includes: Columbia University, Electronics and Telecommunications Research Institute of Korea (ETRI), France Télécom, Fujitsu, LG Electronics, Matsushita, Mitsubishi, Microsoft, Motorola, Nokia, Philips, Robert Bosch GmbH, Samsung, Sharp, Sony, Toshiba, and Victor Company of Japan (JVC). As is the amount of royalties to be paid ("[t]he maximum royalty for these rights payable by an Enterprise (company and greater than 50% owned subsidiaries) is $3.5 million per year in 2005-2006, $4.25 million per year in 2007-08 and $5 million per year in 2009-10"; with royalty per unit of a decoder-encoder costing upto USD 0.20.)

   Indeed, even the most diligent companies cannot guard themselves against software patents. FFII estimates that a very simple online shopping website would violate twenty different patents at the very least. Microsoft recently lost a case against i4i when i4i surfaced with a patent covering custom XML as implemented in MS Office 2003 and MS Office 2007. As a result Microsoft had to ship patches to its millions of customers, to disable the functionality and bypass that patent. The manufacturers of BlackBerry, the Canadian company Research in Motion, had to shell out USD 617 million as settlement to NTP over wireless push e-mail, as it was otherwise faced with the possibility of the court shutting down the BlackBerry service in the U.S. This happened despite there being a well-known method of doing so pre-dating the NTP patents. NTP has also filed cases against AT&T, Sprint Nextel, T-Mobile, Verizon Wireless, and Palm Inc. Microsoft was also hit by Visto Corporation over those same NTP patents, which had been licensed to Visto (a startup).

   • Don't These Cases Show How Software Patents Help Small Companies?

     The astute reader might be tempted to ask: are not all of these examples of small companies getting their dues from larger companies? Doesn't all of this show that software patents actually help small and medium enterprises (SMEs)? The answer to that is: no. To see why, we need to note the common thread binding i4i, NTP, and Visto. None of them were, at the time of their lawsuits, actually creating new software, and NTP was an out-and-out "non-practising entity"/"patent holding company" AKA, patent troll. i4i was in the process of closing shop, and Visto had just started up. None of these were actually practising the patent. None of these were producing any other software. Thus, none of these companies had anything to lose by going after big companies. In other words, the likes of Microsoft, RIM, Verizon, AT&T, etc., could not file counter-suits of patent infringement, which is normally what happens when SMEs try to assert patent rights against larger corporations. For every patent that the large corporation violates of the smaller corporation, the smaler corporation would be violating at least ten of the larger corporation's. Software patents are more helpful for software companies as a tool for cross-licensing rather than as a way of earning royalties. Even this does not work as a strategy against patent trolls.

   Thus, the assertion that was made at the beginning is borne out: software patents help only patent trolls, large corporations that already have large software patent portfolios, and the lawyers who draft these patents and later argue them out in court.

2. Term of Patents

   Twenty years of monopoly rights is outright ludicrous in an industry where the rate of turnover of technology is much faster -- anywhere between two years and five months.

3. Software Industry Progressed Greatly Without Patents

   In India, software patents have never been asserted in courts (even though many have been illegally granted), yet the software industry in India is growing in leaps and bounds. Similarly, most of the big (American) giants of the software industry today grew to their stature by using copyright to "protect" their software, and not patents.

4. Copyright Exists for Software

   As noted above, the code/expression of any software is internationally protected by copyright law. There is no reason to protect the ideas/functionality of that software as well.

5. Insufficient Disclosure

   When ordinary computer programmers cannot understand what a particular software patent covers (which is the overwhelming case), then the patent is of no use. One of the main incentives of the patent system is to encourage gifted inventors to share their genius with the world. It is not about gifted inventors paying equally gifted lawyers to obfuscate their inventions into gobbledygook so that other gifted inventors can at best hazard a guess as to precisely what is and is not covered by that patent. Thus, this incentive (#2) is not fulfilled by the current system of patents either -- not unless there is a major overhaul of the system. This ties in with the impossibility of ensuring that one is not violating a software patent. If a reasonably smart software developer (who are often working as individuals, and as part of SMEs) cannot quickly ascertain whether one is violating patents, then there is a huge disincentive against developing software in that area at all.

6. Software Patents Work Against Free/Libre/Open Source Software

   Software patents hinder the development of software and FOSS licences, as the licensee is not allowed to restrict the rights of the sub-licensees over and above the restrictions that the licensee has to observe. Thus, all patent clearances obtained by the licensee must be passed on to the sub-licensees. Thus, patented software, though most countries around the world do not recognize them, are generally not included in the default builds of many FOSS operating systems. This inhabits the general adoption of FOSS, since many of the software patents, even though not enforceable in India, are paid heed to by the software that Indians download, and the MP3 and DivX formats are not enabled by default in standard installations of a Linux OS such as Ubuntu.

Conclusion

Currently, the U.S. patent system is being reviewed at the administrative level, the legislative level, as well as the judicial level. At the judicial level, the question of business method patents (and, by extension, software patents) is before the Supreme Court of the United States of America in the form of Bilski v. Kappos. Judge Mayer of the Court of Appeals for the Federal Circuit (CAFC, which heard In re Bilksi) noted that "the patent system has run amok". The Free Software Foundation submitted a most extensive amicus curiae brief to the U.S. Supreme Court, filled with brilliant analysis of software patents and arguments against the patentability of software that is well worth a read.

CIS Statement on the WIPO Broadcast Treaty at SCCR 19

The Centre for Internet and Society believes that the protection that may be afforded to broadcasters under existing international treaties, including Article 14 of the TRIPS Convention, are sufficient to safeguard the interests of broadcasters, and that the Broadcast Treaty, which has been under discussion for more than a decade without any progress, is, as the WIPO Chair observed, an expenditure of "time, energy and resources to no avail" (SCCR/15/2/rev).

We believe that at any rate webcasting/netcasting should be kept out of the ambit of the broadcast treaty, even if only restricted to "retransmission" of broadcasts as in the current draft, since by its very nature webcasting is very different from broadcasting. Webcasting is currently quite vibrant, with a recent report by Arbor Networks estimating that around ten per cent of all Web traffic is streaming video, making webcasting the fastest growing application on the Internet.  Given this situation, a strong case has to be made to show that an international treaty is required to protect and promote webcasting, which has not been done.

Specifically, we believe that Paragraph 16 of the WIPO Development Agenda, which relates to preservation of a vibrant public domain, will be endangered by a right being given to webcasters which is separate from the underlying content of the transmission.

Statements by other organizations on WIPO Broadcast Treaty at SCCR 19

• Electronic Frontier Foundation
  
• Public Knowledge
• International Federation of Library Associations, Electronic Information for Libraries, and Library Copyright Alliance (Joint Statement)
  
• Computer and Communications Industry Association
  

Special ‘301’ Reports

The ‘Special 301 Reports’ are published annually by the office of the United States Trade Representative (USTR) to examine ‘in detail the adequacy and effectiveness of intellectual property rights protection’ in countries around the globe. Sections 301-310 of the Trade Act of 1974, as amended by the Omnibus Trade and Competitiveness Act of 1988, empower the USTR ‘to identify foreign countries that deny adequate and effective protection of intellectual property rights or fair and equitable market access for U.S. persons that rely on intellectual property protection.’    

India has faced considerable pressure to amend and enforce its copyright laws, more to the needs of the United States rather than reflecting the needs of its population, businesses and innovation. The 301 reports over the last decade have been largely concerned with the general problems of counterfeit and piracy in India, unlike China where specific laws adopted and enforced by the state have been critiqued. Over the course of the decade, according to the reports, the United States has been concerned with a large number of subjects including the backlog and inadequacy of India’s legal system, lack of enforcement of IP protections for media oriented products like ‘motion pictures, music, software, books and video games’, need for stronger protection of copyrights, trademarks and patents, optical media and procedural inadequacies. In 2004 the USTR reported, ‘copyright piracy is rampant, and the U.S. copyright industry estimates that lost sales resulting from piracy in India of U.S. motion pictures, sound recordings, musical compositions, computer programmes, and books totaled approximately $500 million in 2004.’

The United States articulates the reasons for concern in India – the challenge posed by Indian pirated and counterfeit goods entering American markets. It expresses its concern for lack of piracy enforcement as ‘‘growing concern for U.S. copyright industries, especially given the pirated imports are entering the market from Southeast Asia.

Over the past few years, it has also included suggestions of taking criminal action against those engaging in copyright infringement. India’s supposed ‘weak’ criminal system is mentioned in the 2008 reports, focused specifically on the need for a greater police presence enforcing IPR infringements through criminal means and ‘stronger’ border control.

The Effects of Counterfeiting and Piracy on India’s Entertainment Industry

Published in March 2009 by United States-India Business Council (USIBC) and prepared by Ernst and Young India, claims that as much as Rs.16, 000 crores are lost due to piracy. Alongside, as many as 80,000 jobs are lost directly as a result of theft and piracy, afflicting India’s entertainment industry. This report was commissioned as a part of the USIBC–FICCI Bollywood–Hollywood initiative and covered film, music, television and video games. It was funded by the Global Intellectual Property Center of the U.S. Chamber of Commerce. The spectacular press launch meeting was organized in Mumbai and also attended by Yash Chopra, chairman of FICCI Frames and Ramesh Sippy, the famed director who commented on the occasion, “I know first hand the importance of fighting piracy to support the growth of Bollywood. I commend the USIBC–FICCI initiative for enlisting all elements of the entertainment industry against piracy.” The President of USIBC, Ron Summers used the opportunity to suggest stronger legal means to tackle piracy. He said, “We strongly support passage by India of optical disc legislation that will thwart piracy in this important industry. We are pleased to stand shoulder to shoulder with counterparts in India to help protect jobs and revenues that are now being needlessly lost to piracy.”

Sixth Annual BSA and IDC Global Software Piracy Study

Business Software Alliance, in partnership with a market analysis firm IDC, published their annual study on global trends in software piracy in May 2009. Sixth in its annual series, the report critically blames the Asia Pacific region, especially India and China, for the growing levels in piracy, despite countries bringing down their piracy rates. The report says, ‘In 2008, the rate of PC software piracy dropped in slightly more than half (57) of the 110 countries studied, remained the same in nearly one third (36), and rose in just 16. However, the worldwide PC software piracy rate rose for the second year in a row, from 38 per cent to 41 per cent, mainly because PC shipments grew fastest in high-piracy countries such as China and India, overwhelming progress in these and other countries.’

In addition, it also makes an India specific point by highlighting India’s piracy trends,

‘India’s rate has dropped six points in five years, despite its sprawling PC market, of which consumers and small businesses account for 65 per cent. While consumer PC shipments grew more than 10 per cent last year, shipments to other categories dropped 7 per cent.’

Motion Pictures Distributors Association’s Internet Piracy Studies

Earlier this month, the MPA Office in India named Motion Pictures Distributors Association, along with a DtecNet a global anti-piracy company, released a study on the Internet piracy trends in India. This report places India as the fourth largest global hub of online film piracy, behind United States, Britain and Canada, with Delhi, Bangalore and Mumbai accounting for the major share of illegal downloads. It estimates that Vishal Bhardwaj’s Kaminey, was downloaded 350, 000 times on Bit Torrent with about 2/3rds of downloaders being from India. MPDA also links this study to another consultancy, Envisional’s similar suggestions, while MPDA’s managing director, Rajiv Dalal pushed for strong laws to support copyright, strong enforcement and stiff sentences for people who violate laws, on the basis of these reports.

Despite the availability of a large number of critiques available in the academic world, the media – both broadcast and print, reports shock inducing statistics verbatim, treating them as expert evidence without engaging in any analysis of the published material. Most of the piracy studies are quantitative in nature and do not provide any social class or demographic break up either of those who engage in piracy or those who buy pirated goods. It has also been pointed out by scholars like Shujen Wang that it is unreasonable to assume that every pirated copy could be counted as a lost sale, and thus a loss. In absence of research on the cultural aspects of piracy and the subsequent circulation, these reports have been successful in creating a fear psychosis in the civil society.

International Intellectual Property Alliance

The International Intellectual Property Alliance (IIPA) is an international lobby group of US media industries with close ties to the United States Trade Representative. It has in its reports consistently expressed dissatisfaction with Indian efforts to deal with piracy.  IIPA works in close cooperation the other US lobby groups like the MPAA (Motion Picture Association of America) and the BSA (Business Software Alliance). The IIPA reports, which place India in a 'danger zone', significantly influence regional and international discourses on piracy.  Interestingly, the IIPA in India has been very successful in regionalizing and nationalizing a global discourse. Thus, in the past few years, local industry associations in India in cinema, music and software have independently run highly emotional campaigns against piracy, reminiscent of IIPA's own campaigns. 

Motion Pictures Association

The Motion Picture Association of America (MPAA) through its international counterpart, Motion Pictures Association (MPA), has been unofficially operational in India for the last 15 years. Its member companies are Walt Disney, Paramount, Sony Entertainment, Twentieth Century Fox, Universal Studios, and Warner Bros. The MPA's work in India was mostly non-obtrusive till 1994 when MPA Asia-Pacific, based in Singapore, started being represented by the high profile legal firm Lall & Sethi Advocates.

They have collectively worked on forming enforcement teams for coordinated raids in Mumbai and Delhi since 1995. Earlier this year, MPA announced its first India office to be set up in Mumbai, called the Motion Picture Distributor's Association India (Pvt.) Limited (MPDA), under the directorship of Rajiv Dalal.  Mr. Dalal had previously directed strategic initiatives from the MPAA's Los Angeles office.  The MPDA will engage itself in working jointly with local Indian film industries and the Indian government to promote the protection of motion pictures and television rights. 

According to the organization's own assertion, in 2006 the MPA's Asia-Pacific operation investigated more than 30,000 cases of piracy and assisted law enforcement officials in conducting nearly 12,400 raids. These activities resulted in the seizure of more than 35 million illegal optical discs, 50 factory optical disc production lines and 4,482 optical disc burners, as well as the initiation of more than 11,000 legal actions.

Indian Music Industry

The world's second-oldest music companies' association, Indian Music Industry (IMI), was first established as Indian Phonographic Industry in 1936. It was re-formed in its present avatar in 1994, as a non-commercial and non-profit organization affiliated to the International Federation of Phonographic Industry (IFPI) and is registered as a society in West Bengal. IMI members includes major record companies like Saregama, HMV, Universal Music (India), Tips, Venus, Sony BMG (India), Crescendo, Virgin Records, Magnasound, Milestone, Times Music and several other prominent national and regional labels that represent over 75 per cent of the output in corporate recordings.

It was one of the first organizations in the country to start the trend of hiring ex-police officers to lead anti-piracy operations. In 1996, IMI hired Julio Ribeiro (a former Commissioner of Police, Mumbai; Director General of Police, Punjab; and Indian Ambassador to Romania) to head its anti-piracy operations. Their anti-piracy work is split into three specific regions, North and North Eastern, Western and Southern and East, each zone headed by a former senior police officer. IMI operates through offices in Kolkata, Mumbai, New Delhi, Chennai, Bangalore and several other cities and towns across India, focusing on surveillance, law enforcement, and gathering intelligence through an 80 member team hired to tackle piracy. During 2001 to 2004, IMI registered over 5500 cases, seized over 10 lakh music cassettes, and around 25 lakh CDs.

Business Software Alliance

Headquartered in Washington DC, the Business Software Alliance has a regional office in Delhi, and has been instrumental in conducting anti-piracy operations across the country. According to the BSA, India ranks 20 in global software piracy rankings, with a rate of 73 per cent while the Asia Pacific average is 53 per cent. China ranks second with a rate of 92 per cent and annual losses of $3,823 million while Pakistan ranks nine with 83 per cent piracy rate. They have engaged the general public in providing them with information on pirated software through an anti-piracy initiative – The Rewards Programme. Launched in 2005, reward amount up to Rs.50, 000, would be provided for information leading to successful legal action against companies using unlicensed software. The reward program was aimed to encourage people to support the fight against piracy and to report software piracy to the NASSCOM-BSA Anti-Piracy Software Hotline.

In 2006, BSA and NASSCOM got a shot in their arms by winning the largest settlement amount for a copyright case in India, with Netlinx India Pvt. Ltd. The case had emerged after a civil raid was conducted at the premises of Netlinx in December 2000, leading to inspection and impounding of 40 PCs, carrying illegal unlicensed software. The settlement includes damages of US$ 30,000, complete legalization of software used by them, removal of all unlicensed/pirated software and submission to an unannounced audit of computer systems during next 12 months.

Industry Enforcers

Bollywood Film and Music companies, such as T-Series and Yashraj Films, have established anti-piracy arms to combat piracy in specific markets. T-Series has been in the industry for over 15 years, as a brand of Gulshan Kumar founded Super Cassettes Industries Limited, and has often been at the forefront for conducting raids along with police officials to check piracy of its copyrighted content. In its latest announcement earlier this year, T-Series launched an anti-piracy campaign against those stealing digital content. The announcement came after they filed a complaint on June 1 with a police station in Mangalore against Classic Video shop for infringement of its copyright works like Billu, Ghajini, Aap Ka Suroor, Apne, Fashion and Karz that had been illegally downloaded and copied onto multiple discs, card readers and pen-drives.

Yashraj Films, a leading film studio, has long been a part of enforcement activities against piracy, both in the Indian market and internationally. Most recently, it was a key member in the formation of the United Producers and Distributors Forum, which also included chairman Mahesh Bhatt, Ramesh Sippy, Ronnie Screwalla of UTV, Shah Rukh Khan, Aamir Khan and Eros International. This organization is now trying to enforce anti-piracy laws by conducting raids across the country with the help of another ex-cop from Mumbai, A.A. Khan. Yashraj Films has also established anti-piracy offices in the United Kingdom and the United States to curb piracy in those markets, as overseas returns of its films, watched by the desi diaspora is one of its largest revenue earning sources. The website of Yashraj Films lists news reports from across US and Europe of instances of crackdown on pirates. 

In the context of intellectual property in the creative industries, these anti-piracy agents have successfully created the halo of illegality around the subject of piracy. The discourse on informal networks and circuits of distribution of cultural goods remains hijacked with efforts to contain piracy as the only rhetoric which safeguards the business interests of big media companies and multinational corporations.

The Indian Journal of Law and Technology (IJLT) is an annual law journal published by the Law and Technology Committee of the National Law School of India University, Bangalore. IJLT aims to provide a platform for promoting discussion on issues relating to the interface between law and technology, particularly from the perspective of the developing world.

The Centre for Internet and Society (CIS) is a leading research organisation that engages with issues of digital pluralism, public accountability and pedagogic practices, in relation to the field of Internet and Society, with special emphasis towards South-South dialogue and exchange.  IJLT and CIS are proud to announce the 1st IJLT-CIS Annual Law Essay Competition 2009, which is a competition open to undergraduate law students across India. The competition seeks to encourage creative thinking and promote research and writing about crucial legal issues in the field of Information Technology and the Internet.

Themes

1. Criminality and Second Life: Dr. Jekyll and Mr. Hyde
2. Trademark and the Internet: Cybersquatting and the Google Adwords-Consim Controversy -- Reasonable Limits to Trademark Protection
3. 3G Services and Spectrum Allocation: Fair Competition, Welfare and Freedom of Speech and Commerce on the Airwaves
4. Easier to Be Criminals: Judicial and Legislative Responses to Cyber Crime in India.

Judging

The winning law essays shall be determined through a blind review by a panel of eminent academicians in the field of law and technology.

Prizes

Ist Prize: Rs. 7500 and an internship at CIS

2nd Prize: Rs. 5000

3rd Prize: Rs. 4000

Please note that the terms of the above internship shall be decided by CIS on its own initiative, and as such shall not be negotiable. The winning law essay shall be considered for publication in the next issue of IJLT in accordance with the Editorial Policy of IJLT.

Eligibility

The competition is open to all undergraduate law students in any college/law school in India.

Submission Guidelines

• The entries must be between 5000-7500 words inclusive of all footnotes. The entries that fall short of or exceed the above word limit shall be penalised.
• Substantive footnoting is not permitted and shall be penalised. The use of endnotes or other citation methods is not permitted.
• The entries should be accompanied by a 150-word abstract. The abstract is not counted towards the word limit.
• All entries should be in Times New Roman, size 12, 1.5 line spacing. The footnotes used should be in Times New Roman, size 10, single line spacing.
• The footnotes used should follow a uniform and complete system of citation. However, the use of the Harvard Blue Book (18th edition) system of citation is encouraged.
• The entries must be submitted in the Microsoft Word format and with all identifying information removed from the text of the entries and the file properties. The covering e-mail should contain the name, e-mail address, postal address, institution, course and year of study of the author.
• The entries must be submitted via e-mail to essay@ijlt.in.
• The deadline for entries is 11:59 P.M., 23rd January, 2010.

For any clarifications, please send an e-mail to editorialboard@ijlt.in.

Information and knowledge are crucial factors in human development. We are reminded of this constantly, from the “knowledge economy” we live in, to the emotional and financial power that information and communications technologies (ICTs) have over our lives. In the words of philosopher Francis Bacon, “Scientia potentia est” – knowledge itself is power. Present-day movements for access to knowledge and the right to information have their origins in this simple and arguably ancient idea. Despite a rich history and wide intellectual acceptance, the right to know is not universally granted, and the right to know on the internet is a particularly bitter struggle in many parts of the world.[1]

Information, knowledge and access are terms with a multiplicity of meaning. Even as they constitute an ambitious goal that disparate global actors work towards, it is worth considering how these terms are construed in relation to each other.[2]

“Information” in this context usually refers to government and institutionally held records. Legislation that mandates greater transparency is critical. The earliest example of this kind of legislation was implemented in Sweden as far back as the late 18th century, while countries such as South Africa and India have had theirs enacted as recently as 2000 and 2005 respectively. Freedom of information and the resulting power to make informed decisions are bedrocks of liberal democracy, essential tools for active citizen participation – and the foundation of dominant ideas of the better life, such as that of an open society.

“Knowledge” in its most instrumental sense usually refers to the elements of learning; to scholarly and artistic work and its tools. The access to knowledge movement [3] for instance, works on copyright law reform and the promulgation of open access. Access to knowledge in its present incarnation is a relatively new frame of reference compared to the right to information, which has been demanded for a longer period of time. But it is worth bearing in mind that the underlying theme has always existed and even been expressed, most notably in the hope and anxiety surrounding every disruptive technological shift, from the printing press to the internet.

The most frequently misunderstood term in this troika is, perhaps, “access”. The common interpretation of the term is its strict dictionary meaning, which is to use, to consume, to be allowed entry into or contact with. In relation to information and knowledge, however, and especially since the advent of the internet, access is just as much about production as it is about consumption. Knowledge is not something that Northern countries produce and Southern countries consume; it is a vast and porous domain that consists of formal and as yet unrecognised realms, all of which are growing and evolving. To read is a necessary precondition to being able to write; access, by analogy, implies entry not just into the world of knowledge consumption but also knowledge creation.

One manifestation of this fusion is Wikipedia, the encyclopaedia that is collaboratively produced online. Granted, many more people read Wikipedia than edit it. Nevertheless, for a growing global volunteer base, it is simultaneously a place to read and consume as well as edit and produce. In a similar vein, it is access to information that propels people around the world to intervene in public processes and change laws; without the information, there could be no change.

With regards to government information, it is important that not only are there mechanisms put in place that facilitate access to it, but also that these mechanisms work. The history of events leading up to the enactment of the Right to Information Act in India provides valuable lessons as to what the scope of government information should be, in how punitive measures can be implemented to guarantee that the process works, and, above all, as to how marginalised citizens can gain the space and the means to use the law to their advantage [4] To a large extent, the rich genealogy of the right to information has naturalised it as an obvious, just and urgent issue. Furthermore, it is an umbrella concern, covering as much as specific local contexts demand.

In contrast, the movement for access to knowledge works primarily on one crucial barrier, namely, intellectual property. For some, this focus is problematic. If, for instance, knowledge is imparted by education, then isn’t access just as much hampered by the lack of skilled teachers as restrictive intellectual property laws? This is certainly true, and yet, there are at least three good reasons why this narrow focus makes strategic sense.
One: education is a long-standing priority of societies and governments the world over, and there is an inestimably large group of individuals and institutions who work in the area. However, relatively few people are aware of the impact of intellectual property on access to educational material, and even fewer research it.
Two: the advent of the internet has created hitherto unprecedented opportunities in the knowledge domain, opportunities that could turn into unrealised potential if the application of intellectual property online is decided by copyright industries alone.
Three: knowledge is more than just formal education, and the internet provides limitless ways in which it can be redefined and multiplied. The overzealous application of intellectual property significantly limits the manner in which knowledge operates online.

A chain of events that unfolded in France over the last two years dramatically illustrates the level of threat faced by those seeking information and knowledge online. In 2008, at the insistence of the domestic recording industry, the French government began considering the enactment of a law designed to thwart online piracy. As industry forces pressed on and Nicholas Sarkozy added his support, the effort culminated in a bill that would be popularly known as HADOPI [5] after the enforcement agency it intended to create. HADOPI employed the three strikes principle. If an internet user was found to have committed an act of piracy, the copyright holder in question was entitled to warn the user through HADOPI. No details as to the exact nature of the copyright violation were required to be provided other than that a violation had occurred. After three such warnings, internet service providers (ISPs) in France would be mandated under HADOPI to bar the user from being allowed access to the internet for a period of up to one year.

The prospect of HADOPI had people up in arms. A broad coalition of internet users, consumers and their allies quickly assembled in France and elsewhere in the world. To users in France, it represented an immediate threat; to users elsewhere in the world, it represented the extent to which their online freedoms could be restricted in the future. Apart from the draconian nature of the punishment meted out by this bill, users were outraged that every kind of misdemeanour – whether deliberate, inadvertent, supposed or even mistaken – would be treated the same, with the benefit of doubt given to the copyright holder. [6]

Throughout 2009, the bill faced several setbacks, including a complete rejection by the French National Assembly. But its backers pushed on, eventually winning approval after modifications; until 10 June 2009, when the Constitutional Council of France struck down HADOPI on the grounds that it was inconsistent with the country’s Constitution – for going against freedom of expression and the presumption of innocence.

To involve infrastructure providers (ISPs) in enforcing private copyright disputes and suspend user privileges in the wake of alleged copyright violations, as HADOPI wished to do, was admittedly an extreme step. But there are other, less visibly harmful ways by which access to online information and knowledge is threatened and thwarted, and the problem is that some of these ways appear innocuous – though in fact any investigation of them would provide cause for serious alarm. Of the many concerns that exist, at least a few deserve our immediate attention:

• Digital Rights Management (DRM) and Technological Protection Measures (TPMs);
• copyright law provisions that affect online education, whether by distance or in a physical classroom setting, or in a library;
• the lack of provisions that would meaningfully allow disabled learners and users (particularly the visually disabled) to access information and knowledge online; and
• the extent to which users can usefully integrate online copyrighted material into their lives in a manner that would be considered fair.
  

A primary anxiety around copyrighted material in the online environment has been, on the part of copyright industries, how to regulate the flow of exchange. Previous to the advent of mass use of the internet, a song or a book was limited in its capacity for exchange by the physical, tangible form it came in. With the proliferation of digital material and peer-to-peer systems, however, the possibility for exchange is virtually boundless, and this makes content industries nervous – for it signals the end of an already outdated business model and the beginning of another. In return, industry retaliation has consisted of a strategy of lockdown. The tools of this strategy are DRM and TPMs – software that regulates what one can do with a digital file, or rather cannot do – and the vehicles by which these are legislated and proliferated around the world are a set of World Intellectual Property Organization (WIPO) agreements collectively known as the WIPO Internet Treaties.[7]

DRM is oblivious of the specific circumstances of the user, and is therefore unaware of both the user’s individual needs as well as her rights – for example, the nuances of copyright law in the country of the user’s residence. It doesn’t matter therefore that a user may be blind, or work for a public library, and that national copyright law in the country might specifically extend provisions to visually disabled people and libraries (for instance, by enabling permission-free format changes and reproductions for research). DRM will still operate on a one-size-fits-all model that supersedes national law. In some countries, fair dealing – or fair use – might allow for ways of personal consumption of copyrighted material that the DRM withdraws, resulting in a situation where the whims of a multinational industry render national law meaningless.

DRM is software that can be hacked – up to an extent. In this way, it is still possible for users to legitimately exercise their rights with and upon DRM-protected material. Yet, following the model of the Digital Millennium Copyright Act (DMCA) – the United States’ (US) interpretation of the WIPO Internet Treaties – many countries have legislated that such circumvention constitutes a copyright violation. In some cases this renders sections of their own copyright law redundant, and in effect, casts an unnecessarily heavy shroud over certain copyrighted material merely because it happens to be online. More worryingly, the WIPO Internet Treaties themselves do not ask of countries that anti-circumvention provisions apply even when a user is exercising a legitimate right such as fair use, and yet countries around the world have allowed their laws to imply so [8] because of bilateral persuasion, often from the US or the European Union, without a clear understanding of how this can stunt the potential of the internet within their borders.

It must be noted that copyright law in general – in most countries around the world [9] – generally does not do enough for access to knowledge. To the extent that the majority of the world learns not online but from the printed and spoken word, copyright law in its general application matters tremendously. When considering the potentially limiting aspects of copyright regulation online, one must keep in mind that many countries around the world do not have the kind of provisions that could be limited by new regulation of online material. In fact, most countries do not expressly facilitate distance learning, nor make all the provisions they can for access for the visually disabled, or freedom of information, or even education in general. [10] In part, this is because ever since the globalisation of intellectual property rights, including as recently as the founding of the World Trade Organization (WTO) in 1996 and the instituting of its Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), [11] there has been a distinct shift away from the minimum copyright protection demanded by this trade rule to a maximally protectionist approach.

In the majority of national circumstances today, copyright law is what is referred to as TRIPS-plus, which is to say, excessively protective of copyright-holders’ interests. The excess is overwhelmingly in favour of copyright industries and at the expense of users of copyrighted material. In such a situation, when copyright as it applies offline is already imbalanced, it is even harder to demand a balanced interpretation of copyright in the online space.

Finally, it hardly needs repeating that without a strong sovereign commitment to freedom of speech and information – in effect, a guarantee against censorship – any gains made in access rights stand to be nullified. And this commitment, worryingly, is by no means universally evident.

1. For one understanding of the right to know, see Stiglitz, J. (2009) On Liberty, the Right to Know, and Public Discourse: The Role of Transparency in Public Life, Oxford Amnesty Lecture, Oxford, UK, 27 January. siteresources. worldbank.org/NEWS/Resources/oxford-amnesty.pdf
   For an understanding of how countries restrict access to the full potential of the internet, see Reporters Without Borders’ list of “Internet Enemies”: www.rsf.org/List-of-the-13-Internet-enemies.html
2. Naturally, all three words offer a wide scope of understanding. The descriptions that follow are only an attempt at clarifying a functional definition, not at fixing definitive meaning.
3. The movement for access to knowledge (sometimes abbreviated as A2K) refers to a loose grouping of individuals and institutions who work locally as well as on a potential international treaty on access to knowledge; an early draft is available at: www.cptech.org/a2k/a2k_treaty_may9.pdf
4. For an understanding of the concerns of a key Indian social movement, the Mazdoor Kisan Shakti Sangathan (MKSS), in the years leading up to the enactment of India’s Right to Information Act, see Sampat, P. and Dey, N. (2005) Bare Acts and Collective Explorations, in Narula, M. et al. (eds.) Sarai Reader 05: Bare Acts, Sarai, New Delhi. www.sarai.net/publications/readers/05-bare-acts/02_preeti.pdf
5. HADOPI: Haute Autorité pour la Diffusion des OEuvres et la Protection des Droits sur Internet (High Authority for the Diffusion of Works and the Protection of Rights on the Internet).
6. For one account of the story of HADOPI, see O’Brien, D. (2008) The Struggles of France’s Three Strikes Law, Electronic Frontier Foundation. www.eff.org/deeplinks/2008/05/struggles-frances-three-strikes-law
7. The WIPO Internet Treaties consist of the WIPO Copyright Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT).
8. For instance, in a recent eight-country study in Africa, it was found that Morocco, Kenya and Egypt all have anti-circumvention provisions enacted into law. See the ACA2K Briefing Paper for the WIPO Development Agenda meetings, April 2009: www.aca2k.org/attachments/180_ACA2K%20Briefing%20Paper1_WIPODevtAgenda-042009.pdf
9. Among several country studies, regional and international reports, one recent survey that confirms this finding is the Consumers International IP Watch List report for 2009, in which it is reported that in relation to access to knowledge, “no countries adequately took account of consumers’ interests.”
   See:a2knetwork.org/sites/default/files/ip-watchlist09.pdf
10. Ibid.
11. TRIPs is currently the overarching international trade rule that governs the global sovereign application of intellectual property; for the full text of the TRIPs agreement, see: www.wto.org/english/tratop_e/trips_e/trips_e.htm
    

Getting to the National Market

Wading through Majestic Bus Stand, Flea Markets, Private Bus Stops and vehicles going around in circles, you could almost miss this board outside one of the shopping plazas. NATIONAL MARKET, the famed "pirate market" at the heart of the city. Most of the business here is illegal and the local police raid the thirty odd shops selling goods, which within the purview of any multilateral agreement under WIPO or TRIPS regime would be an infringement of copyright, at least once a month. The shops run shutter to shutter, each one five by four feet. Crowded with sellers and customers, all pirate markets typically smell the same. Pirated DVDs, DVD players, Chinese mobile phones and PDAs, even VHS players of the yore, smuggled MP3 music systems, fake Ray-Bans and Police sunglasses, gaming consoles. You name it, and National Market has it.

Meet the Pirate

Tall and sporting a stubble, Sooraj (name changed) is a Malayali who has been in the trade for over 8 years. "Earlier, I used to have the best English Movie collection ever. But now, its all going away. Most people have shifted from DVD's to Digital Storage and Bit Torrents", says Sooraj. A family comes across the counter. A middle aged man accompanied by two women in a burqua, one of them carrying a young baby boy in their hand. "Tom and Jerry!", says the man and Sooraj's helper brings out a carton full of animated Hollywood films. Finding Nemo, The Lion King, Madagascar, its all there. "No Tom and Jerry. This doesn't have Tom and Jerry", growls the stout customer. Sooraj jumps into the action, hunts out a DVD from a stack and puts it on the table. "Tom and Jerry Tales - 13 episodes", reads the the outside with a classic Tom chasing Jerry picture on the cover. Satisfied, the family puts it aside and goes on to explore other popular cartoon series. In the end, the man calls for Maharathi, a recent Bollywood flick. He looks at the cover intriguingly and I decide to butt in, "Amazing movie. Just saw it last week. Great plot." The deal is seized and after a bout of bargaining over the price. As the family dissolves into the market, Sooraj turns back and says to me, "A lot of customers bargain. I get a headache. And my shop is the first one in the market, inside people operate on margins of 5-10 rupees. That just ruins everything for us. They don't think of the amount of the risk involved."

The Business of Piracy

Sooraj explains to me how Chennai is the biggest market of the South. "Chennai is a sea. You will get everything there. Once you take a dive in that ocean, it's all there." When I ask him of the chain of distribution, he says, "No one will say that I print the covers of fake DVDs or I copy prints. For me, I just call my distributor and everything comes from Chennai. I don't ask beyond that. The stock comes in the price range of 25-35-40 Rupees. Now, there is only one quality of stock. The market is dying. No one has good stock. Earlier, we used to sell DVDs for Rs.70-80. Now, there is no demand. Even the wholesale business is at a low.'' I ask him, "So what are you going to do, now that soon DVDs will be gone?" Sooraj is not flustered. "We will shut this and start a new business," he says. I quietly step back, as another customer comes asking for audio CDs. He doesn't deal in those.

Enforcement Threat

When the customer is gone, I ask him, "How often does the police raid this market?" He smiles and replies, "Not often anymore. The business is almost dead. But yes, they come sometimes. Then you are taken away and a case ensues." I decide to ask him candidly, "How many times have you been booked?" He smiles again. "5-7 times. I have a few cases pending, dates that I have to go and visit the court. They arrest you for a day but that's all they can do. After all this is not a big crime." He continues dealing with customers who have various demands for music and films. Some he sells to, he guides others to the inside shops. "I sell about a 1000 DVDs everyday. Earlier, the figure used to be much higher. Mostly English. Hindi, Tamil and Telugu too. No Kannada," he volunteers. I probe further, "Why no Kannada?" He says that that he supports protection for their own industry. "And the market price for Kannada films is appropriate. Some are Rupees 60, 90, 110. That's reasonable. We do not need to pirate it."

The Confederation of Indian Industry (CII) organized its third annual conference on counterfeiting and piracy, with support from the United States Embassy and the Quality Brands Protection Committee of China (a body comprising more than 80 multinational companies).  Last week we criticised the conference in an open letter.  This week, we examine a few of the recurring themes that came up at the conference.

Something being substandard is not the same as something being counterfeit.

This was a mistake made by many whenever they invoked 'counterfeit' in the sense of something that is violative of one's patent and trademark rights.  The Indian Drugs and Cosmetics Act itself distinguishes between 'misbranded', 'adulterated', and 'spurious' drugs, thus recognizing that something that is made without proper authorization from rights owners isn't necessarily of a bad quality.  Indeed, this was substantiated by an audience member, a lawyer from Dr. Reddy's Lab.  She spoke of a mandi in Agra where they seized medicines being sold under the Dr. Reddy's name, but produced by local manufacturers.  Upon lab testing, it turned out, much to their surprise, that the medicines were of the highest quality and were not substandard.  Similarly, many large companies including trusted FMCG companies like Hindustan Unilever and ITC are upbraided by authorities for violations of the Drugs and Cosmetics Act (for the cosmetics they produce) as well as the Prevention of Food Adulteration Act.  Thus, even legitimate businesses can produce substandard products.  Thus, a product can be unauthorized but not substandard, just as a product can be substandard but not counterfeit.

This distinction becomes very important when we talk about patents, and especially drug patents.  A generic drug is by definition identical or within an acceptable bio-equivalent range to the brand name counterpart with respect to pharmacokinetic and pharmacodynamic properties.  Thus, this entire category of high-quality drugs is often sought to be made illegal or counterfeit by large pharma companies.  Some countries like Kenya have capitulated.  But so far the World Health Assembly has been forced by developing countries to keep the issue of substandard medicines separate from patent-bypassing medicines.

The industry, for all their talk about "out of the box" thinking on the issue, still only consider metrics such the number of piracy raids conducted as measures of success.  A question was put forth by Manisha Shridhar of the Intellectual Property & Trade Unit of the World Health Organization upon learning of the quality of the drugs seized at the Agra mandi: Why not cut a licensing deal with those manufacturers, who obviously have excellent production facilities?  That kind of thinking, which helped HMV in India in the 1980s, and copying innovative features from video pirates and pricing their products competitively has helped an Indian company, Moserbaer, do extremely well.

Counterfeiters and pirates are not always seeking to fool consumers.

Only lawyers hired by the industry would think that a consumer aspiring towards a Rolex watch would actually think that the one he purchased off the streets for one-hundredth the original's price was in fact original.  Street-side DVD hawkers are not thought by the general public to be selling original wares.  Still, despite knowing the difference between the original and the fake, consumers many times opt for the latter.

Having said that, counterfeiting, by using someone else's trademark and trying to pass off fake goods as real ones, is quite obviously wrong.  It harms customers, and it harms the manufacturers.  Thus, a distinction deserves to be made here between the counterfeiters who try to deceive consumers (for instance by copying authenticity marks, like holograms, etc.) and those who are just providing them with highly cheaper alternatives (pirated DVDs, etc.).  In this light, it is also important here to distinguish between counterfeiting, traditionally taken to be trademark violation, and piracy, traditionally taken to be a violation of international law, but now generally meaning a large-scale violation of copyright law.  While the former can lead to consumer confusion, the latter scarcely ever does.  This is ignored by industry people who evoke the image of the consumer quite often, but only when it helps them, and not in any meaningful manner.  They negate consumer choice when it comes to consciously purchasing pirated goods, and consumer freedoms when it comes to usage of copyrighted materials.

While commercial film piracy funds terrorists, so does pretty much every business activity.

A favourite of the MPAA (and by association, the MPA) is the RAND report on Film Piracy and its Connection to Organized Crime and Terrorism.  This report, which was funded by the MPAA, predictably concludes that film piracy funds organized crime and terrorism.  Even if we are to believe its findings wholesale, it leaves us wondering whether all business activities from which terrorists derive funds should be banned.

In India, there is a substantiated link between organized crime and film and music production, and terrorists have been said to make money off the stock market.  If the MPA's arguments are taken to their logical conclusions, then film production and equity trading should also be prosecuted.  Furthermore, while the mafia and terrorists are the ostensible targets, the laws that are brought about to tackle it affect poor roadside vendors and non-commercial online file sharers.  To tackle the funding of terrorists, roadside piracy shouldn't become the target just as film production per se shouldn't.  The invocation of the RAND report is thus only meant for rhetorical effect, as it is hard to find logic in there.

"To copy without authorization is to steal", the death penalty, and drug peddling.

At the conference, Dominic Keating of the US Embassy pointed out that "to copy without authorization is to steal" and David Brener of US Customs and Border Protection kept emphasising, on at least two occasions, that "drug peddling merits an automatic death sentence in many countries".  There are numerous arguments one can make to show the lack of thought in the former.  One could point out that 'stealing' and 'theft' are things that happen to tangible property, and that not only is copyright not tangible, but it is barely property.  Copying without authorization creates one more of what existed, without depriving the authorizer (usually a corporation) of its original.  This goes against our notion of 'stealing'.  If the argument is to be shifted to the terrain of control over one's property/copyright, Mark Lemley in an illuminative article shows how the economic theories behind externalities in property and copyright are vastly different, and that complete control over either has never been, nor should it ever be, an aim of the law.  Simply put, someone free riding on your property leaves you worse off than earlier, while someone free riding on your copyright usually doesn't.

One could also point out that 'stealing' is endemic in activities involving human creativity.  T.S. Eliot notes that "Immature poets imitate; mature poets steal; bad poets deface what they take, and good poets make it into something better, or at least something different".  He does not even consider the possibility that artistic borrowing, whether by imitation or by 'stealing' does not happen.  Even Y.S. Rajan, Principal Adviser to CII recognized this when during the conference he noted that "imitation and innovation have an interesting and intertwining philosophical history".  If we are to take Mr. Keating's admonishment seriously, we would indeed have a very illustrious list of thieves on our hands, including the Walt Disney Corporation, William Shakespeare, Vladamir Nabokov, Public Enemy, and pretty much every creative person who has ever lived.  Books can be written about this (and indeed, numerous books have been), so we shall not dwell on this issue.

Mr. Brener's repeatedly spoke of how drug peddling attracts death penalty in many countries (though in neither the US nor in India has anyone ever received capital punishment for drug peddling), but he also clarified that he is not advocating for the death penalty for copyright violations.  That made one wonder why he was bringing up the death penalty at all.  He also made the dubious, non-substantiated claim (noting it as "true fact") that pirating movies is more profitable than selling heroin.  This claim appears in an article about a report produced by the Australian Federation Against Counterfeit Theft (AFACT), but the original report is nowhere to be found.  The article about the AFACT report also claims that the pirates are using their illicit profits promote drug smuggling.  The seeming contradiction of film pirates investing in something that is riskier and less profitable doesn't seem to have caught the eye of the writers.  One version of the 'drugs are less profitable than pirated DVDs' claim (with marijuana taking heroin's place) was debunked on the Commons Law mailing list.  Pirated DVDs are sold for a fraction of the cost of the original.  It would be obvious to anyone that DVDs that are typically sold for Rs.30-50, where the cost of manufacture alone may be estimable to be around Rs. 10, cannot be more profitable than heroin peddling.  That apart, most online file sharing (deemed to be "piracy") is non-commercial.  Thus the question of profit does not really arise.  Still, for the industry, absence of a profit is equal to a loss.

Thus, the rhetoric of crime, and that too heinous crime, is continually used, despite its being completely inapposite. Why does used to try to make IP enforcement a matter of state concern, rather than a matter of private, and civil, interest.  This way, illegitimate statistics and factoids are used to make individual file-sharers who earn no money get lengthy prison sentences.  This and other ways in which IP enforcement has expanded are carefully documented in this paper by Susan Sell.

Repeating false 'statistics' does not make them true.

Again, we were subjected to a number of dubious claims during the conference: If only counterfeiting and piracy were eliminated, India's fiscal deficit would disappear; the Indian entertainment industry loses 16000 crore (USD 4 billion) yearly to piracy; 820,000 direct jobs are lost due to film piracy; software piracy costs the industry USD 2.7 billion annually, etc.  These reports' methodologies have been thorougly discredited.  Even The Economist, a very conservative and pro-industry newspaper, believes that the BSA-IDC annual reports on software piracy are utterly distorted.  Similarly, in the U.S., the figure of 750,000 jobs (around 8% of the U.S. unemployed in 2008) being lost due to piracy were touted by everyone from the Department of Commerce, the Chamber of Commerce, U.S. Border and Customs Protection, and the MPAA, RIAA, and BSA.  The amount of money lost each year in the U.S. due to IP infringement has been estimated to be between USD 200-250 billion (that's more than the combined 2005 gross domestic revenues of the movie, music, software, and video game industries).  In a lengthy piece in Ars Technica, Julian Sanchez traces back the history of both these figures, and shows how they are just large numbers used for lobbying, and are not based on actual studies.  The industry-commissioned Ernst & Young  report ("The Effects of Counterfeiting and Piracy on India's Entertainment Industry") was never made available to the public at large, thereby making it impossible to judge the methodological soundness of the survey and the veracity of the figures.

IP expansion and more stringent enforcement is counter-productive.

Chander Mohan Lall, copyright lawyer to various film studios (including Warner Bros.) in India, used a number of short film clips in presentation during the conference.  Upon being questioned about it, he admitted that he did not have permissions of the copyright holders, but claimed that his use fell under "the education exception" in Indian copyright law.  While I wish he were correct (because what he was doing was indeed educational use), as per the law he is wrong.  Section 52(1)(i) of the Copyright Act only exempts educational usage of cinematograph film recordings when "audience is limited to such staff and students [of an educational institution], the parents and guardians of the students and persons directly connected with the activities of the institution".  While there are other arguments he could seek to use to make his usage of the film clilps non-infringing, being excepted by the educational fair dealings clauses isn't one of them.  Thus, more stringent enforcement of IP rights actually engenders such unauthorized, but perfectly legitimate copying and communication to the public such as that done by Mr. Lall.

Another way in which IP enforcement is being sought to be increased is by way of the so-called Goonda Acts.  These are generally statutes aimed at criminals and lumpen elements in society.  The Maharastra version, the Maharashtra Prevention of Dangerous Activities of Slumlords, Bootleggers, Drug-Offenders and Dangerous Persons Act, 1981, just became the Maharashtra Prevention of Dangerous Activities of Slumlords, Bootleggers, Drug-Offenders, Dangerous Persons and Video Pirates Act.  The term "video pirate" is very widely defined, to include any copyright infringement-chargesheeter who is "engaged or is making preparations for engaging in any of his activities as a video pirates, which affect adversely or likely to affect adversely, the maintenance of public order". Public order is deemed to be disturbed by "producing and distributing pirated copies of music or film products, thereby resulting in a loss of confidence in administration".  Thus video pirates can possibly be interpreted to include individual sitting at home and using P2P networks to share films.  The only requirement is that they should have had a chargesheet lodged against them previously -- they needn't even have been convicted; being chargesheeted suffices.  Thus, non-commercial activities of file-sharing are equated to bootleggers and drug smugglers, and preventive detention (an anti-civil rights relic of India's colonial past) is applicable to them.

IP expansion is happening without the ostensible justifications for IP being kept in mind. That Tirupathi ladoos are going to get GI (geographical indicator) protection was announced at the conference with great pride.  Geographical indicators are used to protect consumer interests, to ensure that no one outside a particular region (Champagne) can lay claim to be producing that product (Champagne) if the production of that product is intrinsically linked to special features found in that region (climate, etc.).  However, no devout person would want to purchase anything advertised as "Tirupathi ladoo" if it were produced outside the Venkateswara temple at Tirupathi, thus the question of consumer confusion does not arise.  What if someone malignantly advertises something as Tirupathi ladoo and claims it was made in Tirupathi (and not just that it tastes like the ladoo made there)?  Such a person can be taken to task for deceptive advertising, and there is no need for something to have IP protection to do so.  This represents a senseless expansionism of IP.  It is now IP for IP's sake.

One of the speakers, Mr. V.N. Deshmukh, who though pro-stringent IP enforcement, astutely noted that, "When local demand is not met, they [consumers] turn to counterfeiters and pirates."  Local demand can be unsatisfied because of lack of supply, or because the supply is overpriced, or because the supply is not easy to access, or because what is supplied is inferior to what is demanded.  At the end of the day, as William Patry, Google's lead counsel, has noted, what companies sell to the public are products and services, and not IP.  It would thus be wise for businesses to be innovative and compete rather than trying to extend their monopolies and engaging in rent-seeking behaviour that is economical harmful to consumers.  They would also do well to remember that IP is not only a product but an input as well, so they are ultimately consumers themselves.  All the harsher laws and enforcement mechanisms that they push for right now will have unintended consequences, and come to affect them adversely.

An Open Letter to the President of Confederation of Indian Industry (CII) on the Third International Conference on Counterfeiting & Piracy

To
Mr. Venu Srinivasan
The President 
Confederation of Indian Industry (CII)
The Mantosh Sondhi Centre, 23, 
Institutional Area, Lodi Road
New Delhi - 110 003 

Dear Mr. Srinivasan,

We understand that Confederation of Indian Industry (CII) is hosting the Third International Conference on Counterfeiting and Piracy from 19-20th August 2009 in partnership with the Embassy of the United States and the Quality Brand Protection Committee (QBPC), China. As stated in the invitation letter the primary objectives of the conference are: 1) to initiate coordinated action for cross border enforcement; 2) to highlight the importance of protection of intellectual property rights (IPRs); 3) to combat the growing threat of piracy and counterfeiting; 4) to facilitate a global meeting of customs officials across the globe; 5) to recommend the creation and setting up of a governmental “National Brand Protection” group; 6) to serve as a forum to discuss legal guidelines related to the prosecution of IPR infringement and to eliminate ‘loopholes’ within the existing laws; and 7) to strengthen cooperation between enforcement agencies and chalk out strategies for enforcement agencies a industry action both at national & international level. We also understand that this international conference is part of CII Intellectual Property Division’s special initiative on enforcement of IPRs. As part of this special initiative CII aims at “engaging government to create conducive legislative measures, policy levels reform and impressing [upon them] to adopt stringent enforcement initiatives and exemplary punitive and monetary measures to further safeguard and secure the interest of industry”. CII also wants to “create a global partnership to synergise efforts of international community and to support and participate in India's efforts in combating counterfeiting both at domestic and international levels”.  We, the undersigned, representing various civil society organizations in India, write this letter to express our strong reservation on the conference as well as on CII’s special initiative on IP enforcement. Without raising any question on CII’s right to organize events we would like to convey the following concerns with regard to the conference and CII’s initiative on IP enforcement.

Many of the above mentioned objectives of the conference and the special initiative are directed towards the enhancement of intellectual property (IP) standards like coordinated action on border measures, common guidelines for prosecution of IP infringement, exemplary punitive and monetary measures, etc. In other words, enhancement of IP standards means using more public money to protect private rights; very often protecting the monopoly over intangible property rights of multi-national corporations (MNCs).

As you may be aware, MNCs and their developed country hosts are currently engaged in the implementation of a multi-pronged strategy to enhance IP enforcement standards.[1] This is similar to the MNC’s initiatives in the mid 80s to enhance international IP protection, which resulted in the Agreement on Trade-Related aspects of Intellectual Property Rights (TRIPS). Unlike the 80s, now MNCs and developed countries use multiple forums to pursue the objective of enhancement of IP enforcement standards. Some developed countries have unilaterally enhanced their IP enforcement strategy to force other countries, especially developing countries, to accept the same through various multilateral organizations, namely the World Customs Organization (WCO), World Health Organization (WHO), Universal Postal Union (UPU), Interpol, WIPO and WTO. Developed countries are also using Free Trade Agreements (FTAs), Bilateral Agreements on IP Enforcements as well as financing lobbyist studies, conferences and policy recommendations to impose higher IP enforcement standards. These efforts for the enhancement of IP enforcement standards are a matter of grave concern for the people of developing countries and their governments. By partnering with the US Embassy and Quality Brand Protection Committee of China (QBPC)[2] in the organization of this conference, CII is allowing itself to play in the hands of MNCs and some developed countries, whose interests do not match with that of India industries and that of the Indian people.

As you are aware, the Government of India is taking a very strong position in resisting enhancement of IP enforcement standards in all the multilateral forums. India along with like-minded developing countries successfully pushed back TRIPS-plus[3] IP enforcement agenda at WCO and WHO. India is also trying its level best to convince other developing countries the need to stick to TRIPS-compliant standards rather than adopting TRIPS-plus enforcement standards. In the wake of the controversial generic drug seizures by EU customs authorities, India has also raised the issue of TRIPS-plus IP enforcement standards contained in the EU IP Enforcement Directive at least two times at the TRIPS Council.[4]  The Indian political leadership has unequivocally raised its concern over the enhancement of IP enforcement standards at other forums also.[5] In adopting this stance, the Government of India has cited public interest as well as the operating freedom of Indian industry as its justifications.[6]  By partnering at this vital stage with an MNC lobby group and a heeding to developed country governments, CII is not acting in furtherance of the legitimate public interests of Indian domestic industry and the Indian people.

It is a well-evidenced fact that TRIPS-plus enforcement standards adversely impact not only legitimate trade between nations (as shown by the EU seizures) but also the day-to-day life of millions of people especially in India and other developing countries.[7] Unfounded IP enforcement measures would adversely impact access to life saving medicines and educational materials. Thus the IP enforcement measures also have the potential to deny right to development to people in the global South. Hence an organization like CII should not view IP as only a business tool but should look at the larger scheme of things especially in the social and economic realities of India. In fact, by promoting enhancement of IP enforcement standards CII is advocating a policy, which would violate the right to health, the right to knowledge, as also the right to development.

We would also like to point out that Indian pharmaceutical industry is one of the victims of TRIPS-plus IP enforcement standards. In 2008 alone, 17 consignments[8] were seized in transit at Europe using the EU Directive on IP Enforcement, which allows seizure of goods in transit.[9] These consignments were being exported from developing countries (such as India and Brazil) to other developing countries, and the contents of the consignments are perfectly legal in both the exporting as well as the importing nations.  These highly questionable seizures resulted in the crisis of health programmes as it resulted in delays in   and prohibitive costs of access to life-saving medicines in developing countries of Africa and Latin America. CII can barely claim to be representative of the interests of Indian industry if it ignores such episodes and partners with self-promoting MNCs and developed countries’ governments to advocate for the enhancement of IP enforcement standards.

In the light of above-mentioned issues, we request you to consider the following:

• Rejecting the TRIPS-plus enforcement agenda in toto.  We demand CII, Federation of Indian Chambers of Commerce and Industry (FICCI), Associated Chambers of Commerce and Industry(ASSOCHAM) and other Indian business associations to  reject any and all attempts of  bringing in a TRIPS-plus enforcement agenda in India, in the interests of Indian industry and the Indian people.
• Completely disengaging from any collaborative efforts with foreign institutions to further TRIPS-plus standards of IP protection in India and also abstaining from any engagements on the anti-counterfeiting efforts with foreign agencies.  CII should attempt to engage with domestic institutions and build national consensus before engaging with foreign institutions with the claim of representatives of Indian industry.
• Taking necessary proactive steps to safeguard the interests of access to medicine and access to knowledge along with interest of the Indian domestic industry.
• Participating in a more creative discussion on IP and development rather than simply accepting the simplistic and largely discredited view that stronger IP regime leads to more innovation and is a necessary condition for socio-economic development.

CC:
Shri Anjan Das
Senior Director & Head
Technology, Innovation, IPR & Life Sciences
Confederation of Indian Industry (CII)
Plot No. 249-F, Sector-18; Udyog Vihar, Phase-IV,
Gurgaon-122015, Haryana

Shri. P. Chidambaram
Minister
Ministry of Home Affairs
Government of India
North Block, Central Secretariat
New Delhi 110001

Shri G. K. Pillai
Secretary Justice
Department of Justice
Ministry of Home Affairs
Government of India
North Block, Central Secretariat
New Delhi 110001

Shri Naresh Dayal,
Secretary, Dept. of Health and Family Welfare
Ministry of Health and Family Welfare
Government of India
149-A, Nirman Bhawan, New Delhi – 110 011 

Shri Ajay Shankar
Secretary
Department Of Industrial Policy & Promotion
Ministry of Commerce and Industry
Room 153, Udyog Bhavan,
New Delhi – 110 011

Signatories to this letter

• Centre for Trade and Development (Centad), New Delhi
• Centre for Internet and Society, Bangalore
• National Working Group on Patent Laws, New Delhi
• Lawyers Collective (HIV/AIDS Unit)
• All India Drug Action Network (AIDAN)
• International Treatment Preparedness Coalition (ITPC), India
• Consumers Association of India, Chennai
• IndoJuris Law Offices, Chennai
• All Indian People’s Science Network, New Delhi
• Delhi Science Forum
• Alternative Law Forum, Bangalore
• Knowledge Commons
• Moving Republic
• IT for Change
• Centre for Health and Social Justice(CHSJ), New Delhi
• Navdanya, New Delhi
• Support for Advocacy and Training to Health Initiatives (SATHI)
• Centre for Enquiry Into Health and Allied Themes (CEHAT)
• Initiative for Health Equity & Society
• International Peoples Health Council (South Asia)
• Drug Action Forum – Dharwad, Karnataka
• Dr. Mira Shiva, New Delhi
• Tina Kuriakose, PhD Scholar, Jawaharlal Nehru University, New Delhi
• Dr Gopal Dabade, Dharwad
• Dinesh Abrol, Scientist NISTADS, CSIR, New Delhi
• Madhavi Rahirkar, Lawyer/Consultant, Pune
• Gautam John, Bangalore
• Achal Prabhala, Bangalore

Endnotes

[1] See Susan K Sell, The Global IP Upward Ratchet, Anti-counterfeiting and Piracy Enforcement Efforts: The State of Play.
[2] QBPC barely qualifies as a representative of Chinese interest, as it comprises more than 180 multinational member companies.
[3] ‘TRIPS-plus’ refers to any protection of IPRs that surpasses the standards and requirements spelt out in WTO-TRIPS provisions.
[4] See Jonathan Lyn, India Brazil raise EU drug Seizures issue at WTO, available at http://www.livemint.com/2009/02/04232721/India-Brazil-raise-EU-drug-se.html
[5] Indian Minister of State for External Affairs Broaches Seizures of Generics at ECOSOC, available at http://www.keionline.org/blogs/2009/07/08/india-ecosoc-seizures/#more-2404
[6] Indian Commerce Secretary’s Speech to the African Community Ambassadors. available at http://www.centad.org/focus_77.asp.
[7] For two very recent examples, see Intellectual Property Enforcement: International Perspectives, Xuan Li & Carlos Correa (eds.) (2009); Anand Grover, Report of the Special Rapporteur on the Right of Everyone to the Enjoyment of the Highest Attainable Standard of Physical and Mental Health, A/HRC/11/12 (2009).
[8] Jyoti Datta, 16 out of 17 drug consignment seizures in the Dutch were from India available at http://www.thehindubusinessline.com/2009/06/08/stories/2009060851700300.htm
[9] The EC Regulation No 1383/2003 allows for seizure of goods in transit.

From Kazaa to The Pirate Bay

Little did the world of the VHS era realize in its time where the future of pirate technologies were heading to. The world's favourite music and films were quickly transferred onto optical discs as magnetic tapes went obsolete a few years before the end of the last century. Internet was soon to become the nemesis of discs, which were bulky to store and scratched easily. The first tryst with peer to peer technologies on networks sent shivers down the spine of Jack Valenti and the Motion Pictures Association of America. The speed of dissemination and distribution of content over the Internet was something the world had never seen before. The lawsuits against peer to peer networks such as Kaaza and Limewire ran into millions of dollars. Websites were shut down, but time and progress of technology could never be reversed. Bit Torrent soon became the most common protocol to transfer content over the Internet. Bit Torrent meta files themselves do not store copyrighted data. Hence, Bit Torrent itself is not illegal. However, its use to make copies of copyrighted material that contravenes laws in many countries has created many controversies, including the now famous Pirate Bay Trial in Sweden. The popularity of torrents though is not specific to the Western world. The strength of the Internet lies in its ability to generate content from any corner of the world which is then spread across the world through a web of distribution reaching many computers and granting them access to the content simultaneously.

Desi content on Torrent Networks

Desi : A term derived from Sanskrit, meaning region, province or country. It now refers to the people and culture of South Asian Diaspora.

On the most popular Bit Torrent search engines, torrentz.com, Hindi and Hindi movies are permanent search tags. Often, one would even see the names of popular Bollywood releases such as Dev D, or at the time of writing this blog entry, Telegu Films, prominently displayed on the site. Bollywood and other content created in India and the rest of the subcontinent is driving the cyberspace. With a huge diaspora spread across every part of the world and increasing Internet penetration alongside rising broadband speeds in urban India, the demand for Desi content on torrent networks is on the rise. Websites such as desitorrents.com and dctorrent.com are two torrent search engines that are popular amongst Internet users and cater exclusively to Desi content. A closer look at the content on these sites reveal that the most popular content on these torrent networks are television shows, cricket matches, Bollywood movies, music and regional cinema. Torrent scenes such as AXXO are not unique to Hollywood upload alone. Desi content has its own torrent scenes, responsible for uploading torrent trackers, as soon as the content is out in the public. Users identifying themselves as Jay, Captain Jack or Gangadhin are busy uploading these files on the Desi networks.

Downloaders Demographic

Online since January 2004 and an Internet traffic rank of 7,302, an average visitor spends 8.3 minutes on the Desi Torrents site everyday. Relative to the general Internet population, the website has the highest number of male visitors in the age group of 18 to 34.

Most browsers are at least Graduate School educated who prefer to access the website from home. In comparison, Desi Club Torrents, which is a free website has a younger representative web demographic with males between 18 to 24 years of age being the most prominent visitors. According to the data, it is also revealed that the website has a higher ratio of visitors who have not attended Graduate School but still have attended some college for education

Impact on the Traditional Markets

In most cases, the popularity of Bollywood films in cinema halls and on torrent sites seems to be linked. For example, the most successful Bollywood film of 2008, Ghajini, which ended up raking Rs. 200 crores on the box office, is also one of the most downloaded films on Bit Torrent Networks. However, for the Pirate selling DVD's of latest films, this is not great news. A majority of their customers have migrated to downloading films on the Internet using Peer to Peer technologies. The upper middle-class niche film watching audiences, have been the fastest to acquire computers and get on the Internet. Increasing broadband speeds have ensured that this segment of consumer transitions away from the traditional 'on the corner' pirate shop.

Every year the Office of the United States Trade Representative (USTR) publishes a report known as the Special 301 Report, documenting IP regimes in various countries, and publishing a list of those countries which do not afford 'adequate and effective' protection for US intellectual property.  This year Consumers International, which set up the A2K Network, published a counter-report, the IP Watch List 2009 for which the India report [pdf here] was prepared by the Centre for Internet and Society.  While the Special 301 Report labels India a "Priority Watch List" country (meaning that it has an IP regime least conducive to the trade interests of the United States), the Consumers International report holds India to have the most consumer-friendly and balanced IP regulation amongst the sixteen countries surveyed.  The CI report lambasts the USTR's attempts to make countries comply with unreasonable demands which go over and above the countries' international obligations.  For instance, the WIPO Internet Treaties, which have been criticised by many, is sought to be imposed on countries like Israel, India, and Canada.  Prof. Michael Geist of the University of  Ottawa even notes that piracy levels and accession to the WCT and WPPT do not seem to be correlated: "In fact, only five countries that have ratified the WIPO Internet treaties have software piracy rates lower than Canada."  Still, the USTR has placed both India, whose IP laws are being praised by Consumers International and Canada, which has low piracy rates even by the accounts of the notoriously propagandist BSA, have both been placed in the Priority Watch List.  The reasons for doing so are not all that unclear if we look at who really shapes the USTR's Special 301 report.

The India section of the USTR Special 301 report [pdf] (pp. 18-19) notes:
"India will remain on the Priority Watch List in 2009. India has made progress on improving its IPR infrastructure, including through the modernization of its IP offices and the introduction of an e-filing system for trademark and patent applications. Further, the IP offices have started the process of digitization of intellectual property files. In addition, the Indian ministerial committee on IPR enforcement has supported the creation of specialized IPR police units. Customs enforcement has also improved through the implementation of the 2007 IPR (Imported Goods) Enforcement Rules as well as by seizures of unlicensed copyrighted goods intended for export. However, the United States remains concerned about weak IPR protection and enforcement in India. The United States continues to urge India to improve its IPR regime by providing stronger protection for copyrights and patents, as well as effective protection against unfair commercial use of undisclosed test and other data generated to obtain marketing approval for pharmaceutical and agrochemical products. The United States encourages India to enact legislation in the near term to strengthen its copyright laws and implement the provisions of the WIPO Internet Treaties. The United States also encourages India to improve its IPR enforcement system by enacting effective optical disc legislation to combat optical disc piracy. Piracy and counterfeiting, including of pharmaceuticals, remain a serious problem in India. India’s criminal IPR enforcement regime remains weak. Police action against those engaged in manufacturing, distributing, or selling pirated and counterfeit goods, and expeditious judicial dispositions for IPR infringement and imposition of deterrent-level sentences, is needed. As counterfeit medicines are a serious problem in India, the United States is encouraged by the recent passage of the Drugs and Cosmetics (Amendment) Act 2008 that will increase penalties for spurious and adulterated pharmaceuticals. The United States urges India to strengthen its IPR regime and stands ready to work with India on these issues during the coming year."

Large chunks of it seem to have been 'borrowed' from the IIPA submissions.  The IIPA (International Intellectual Property Alliance), which is made up of US-based IP-maximalist lobbyists like the Motion Picture Association of America, Recording Industry Association of America, National Music Publishers Association, Association of American Publishers, and Business Software Alliance, is a body that was created to lobby the USTR to impose trade sanctions on those countries which did not follow the path that IIPA thought best for those countries.
Interestingly, the IIPA submissions talk not of IIPA's concern about weak IPR protection and enforcement in India, but instead states: "the United States remains concerned about weak IPR protection and enforcement in India".  This exact line even manages to finds itself in the USTR Special 301 report.  Many IIPA complaints find themselves as USTR recommendations, including: a) fast-track judical dispositions of IP cases; b) special laws against optical disc piracy; c) ratification of the WCT and WPPT (the "WIPO Internet Treaties"); d) increased criminal enforcement of intellectual property.

Thus, the Special 301 report emerges as a discredited report that the US's trade partners should not (and by many accounts do not) pay attention to.  Measurement of IP balance and consumer-friendliness such as the Consumers International IP Watch List are more important, and should eventually lead to a measurement index for Access to Knowledge.

First, we wish to applaud the Ministry of Information and Broadcasting for holding this stakeholders' meeting, which is a definite step towards greater transparency, and are grateful for having been invited to provide our input.  The meeting was attended by representatives from various government offices and ministries, including the Ministry of Human Resource Development (which administers the Indian Copyright Act), broadcasters, broadcast associations, law firms, and civil society organisations.  The Secretary of the Ministry of Information and Broadcasting inaugurated the session by talking of how the Broadcast Treaty involved the assessment and balancing of various interests while keeping 'public interest' foremost.  This was followed by Mr. N. P. Nawani, Secretary General of the Indian Broadcasting Foundation (IBF), presenting on the concerns of the broadcasting industry. After this Prof. N. S. Gopalakrishnan, head of the School of Law, Cochin University of Science and Technology, spoke.

Prof. Gopalakrishnan covered many areas of relevance: the concept of broadcasting and the legal rights involved; the scheme of legal protection over broadcast signals and over the content of the signals, and the difference between the two; gaps in the international law covering broadcasting; details of the proposed broadcast treaty; the implications of the broadcast treaty and concerns of the Indian government; and unresolved issues.

Amongst the unresolved issues mentioned by Prof. Gopalakrishnan was that of webcasting and the problems related to that.  The discussion below aims to shed some light on some of the problems created by the inclusion of webcasting in the broadcast treaty.

Legal regimes for broadcasting

At the national level, the law governing broadcasting is the Indian Copyright Act, 1957.  Broadcasting is covered by many sections of the Indian Copyright Act, including: ss. 2(dd) (definition of "broadcast"), 2(ff) (definition of "communication to the public"), 37 (the section granting a special "broadcast reproduction right"), and 39A (containing exceptions to s.37).  At the international level, broadcasting is covered by the Rome Convention, 1960 (which India has signed, but hasn't ratified); the Brussels Convention, 1974 (only pre-broadcast satellite signals); the TRIPS Agreement, 1994 per Article 14 (which doesn't mandate that broadcasting rights be granted directly to the broadcasters); the WIPO Performances and Phonograms Treaty, 1996 (WPPT) in Articles 2(f) and 15; and the proposed WIPO Treaty on the Protection of Broadcasting Organizations ("Broadcast Treaty").  In May 2006, provisions for webcasting were brought back into the Broadcast Treaty as part of the non-mandatory Appendix after having been excised in 2004 owing to protests by many countries on their inclusion.  The current draft (SCCR/15/2 rev.) was prepared in September 2006 as an attempt to put together an all-inclusive document (with alternative versions of proposed provisions present in the document), and a diplomatic conference was planned to push the treaty through.  In August 2007, WIPO released a 'non-paper' (SCCR/S2/Paper1) and dropped plans for the diplomatic conference, as there was still significant disagreement about the treaty.  In November 2008, the WIPO chair released an informal paper (SCCR/17/INF/1), which advocated technological neutrality, and hence, presumably, that webcasting to be covered by the treaty.

Meaning of broadcasting and netcasting

Broadcasting is generally taken to be a point-to-multipoint transmission of audio-visual content.  Hence, cable transmissions and Internet/Web transmissions (which are point-to-point) are usually not included when one uses the term "broadcasting".  But there is no one common definition of "broadcasting". As things stand in the WIPO Broadcast Treaty, the definition of broadcasting (Art. 5(a)) does not cover cablecasting, which is separately defined in Art. 5(b), neither does it cover webcasting.  However, the definition of "retransmission" as provided in the draft treaty is broad enough to cover Internet-based transmission, and hence could provide a backdoor via which webcasting is included.  The rights covered by the all-inclusive draft WIPO Broadcast Treaty include the rights of and over: retransmission; communication to the public; fixation; reproduction; distribution; transmission following fixation; making available of fixed broadcasts; and pre-broadcast signals.  The treaty also mandates legislative protection to systems of digital rights management (DRM) and technological protection measures (TPMs).  This, coupled with post-fixation rights, grants broadcasters the rights to dictate what one can and cannot do with a broadcast, thus negating all fair dealing rights and possibly restricting the public domain as well.  It may be noted that even content creators are not provided such rights in the vast majority of the world, and that fair dealing rights are much better safeguarded by copyright law.  The latest proposal by the U.S. on the term "netcasting" is to be found in an informal paper presented at SCCR 15 [MS Word document], and has been criticised as overly expansive by civil society organisations such as Consumer Project on Technology (now Knowledge Ecology International).

Non-justifications for webcasting's inclusion

Webcasting is sought to be included within the Broadcast Treaty for a number of reasons, all of which are problematic.  Firstly, there is the argument of technology neutrality, which advocates say is to ensure that the treaty is relevant into the future as well.  However, adopting technology neutrality as the basis for doing so amounts to wilful blindness to technological advancements, and the benefits that such advancement provides, including lowered costs of infrastructure.  Secondly, advocates argue that thanks to media convergence, the same content (which is usually digital) can be delivered through various communication networks.  This disregards the need to establish the requirement for a new right to be created, and simply assumes that just because the function that the two (broadcasters and webcasters) perform are similar means that they operate in similar economic and social environments.  In fact, webcasters work in a very different environment from broadcasters. 

This is an environment where intense innovation and competition already exist, and don't need to be artificially created by means of a new property right in an international treaty.  Furthermore, the United States, a country with extremely large and hugely profitable broadcasting networks, does not have a specific statute to protect broadcasters’ rights.  Even it only has laws protecting the conditional-access regime.  Second, much less investment is required to reach a set number of people through webcasting than through broadcasting -- and these people can be spread throughout the globe.  Typically, a computer with a fast internet connection is all that is required.  Given this, anyone can become a 'broadcasting organisation'.  Additionally, IP addresses (in IPv6) are not limited, unless one considers 340 undecillion addresses to be 'limited'. This is a big difference from terrestrial broadcasting, where Hertzian frequencies are limited, and hence one has to pay a premium for them.  Lastly, signal appropriation does not happen for sake of the signal, but for the content.  Protection, thus has to be given to the content (and already is given, in the form of copyright law).  Copyright owners who object to such appropriation, and who are often large multinational corporations, have proven more than willing to pursue those who appropriate their works – broadcasters are not necessarily in a better position to do so.  This situation is aggravated with webcasting.  Indeed, on the Web, something akin signal appropriation is not only not frowned upon, but often encouraged: embedding of audio and video from other servers on your own website is prevalent.

Problems if webcasting is included

Apart from the lack of justifications for going ahead with the treaty, especially when it seeks to create a separate property right over signals instead of merely providing for signal protection and includes webcasting (at least upon 'retransmission'), there are many problems that the treaty creates.  Firstly, transaction costs will increase vastly, leading to a tragedy of the anticommons where no one ends up using the content because clearing all the surrounding rights is too difficult.  On top of clearing and making payment for rights from the copyright holders, a person wishing to use parts of any content that has been broadcast/webcast would have to get the rights cleared from the first broadcaster/webcaster as well.  This is inevitable if property-like rights are bestowed upon the act of distributing signal in the form of a broadcast or hosting audio and visual content for webcasting.

Secondly, materials in the public domain and openly-licensed content will become more difficult to gain access to, and the exercise of fair dealings with copyrighted content will be hampered.  Since rights over signal are independent of rights over content, a copy of the public-domain work will have to be procured from an archive, which negates the very purpose of broadcasting and webcasting, which is to make content more easily accessible to a large number of people located over great distances.  Additionally, limitations and exceptions are extremely difficult to negotiate and are of the 'ceiling' kind, limiting the limitations and exceptions that national legislatures can prescribe.  Thus, the fair dealing rights over the signal will probably end up being more limited than the fair dealing rights over content.  This makes the situation akin to anti-circumvention measures, which (in countries where they are legally recognised) have fewer limitations and exceptions than the content they protect.

Thirdly, public benefit and access will seriously be harmed.  It is conceivable that this treaty might hamper the Indian legislature's ability to pass statutes such as the Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharati) Act, 2007, which mandate sharing of certain kinds of signals.  Lawyers will claim that such statutes go against India's international obligations.

Differences between webcasting and broadcasting

To sum up, there are a large number of differences between broadcasting and webcasting.
Infrastructure: The expenditure required to establish the infrastructure for a webcasting unit is much less than that required for an equivalent (in terms of reach in terms of listeners).  Even traditional broadcasting is not that expensive: fixed-frequency radio transmission kits have been known to cost as little as Rs. 50 (<http://news.bbc.co.uk/2/hi/south_asia/4735642.stm>.  Thus, one of the biggest arguments for protection ('to recover investment') is taken away.  The content producers' 'investment' is protected by copyright law.
Competition: Providing incentives to increase competition and hence public benefit is often a reason cited as a reason for introduction of a new property-like right.  However, such incentives seem utterly redundant in the online market where becoming a webcasting organisation is trivial, and immense competition already exists.
Broadcasting vs. Uni- and Multicasting: The notion of 'broadcasting' does not exist in IPv6.  The closest that a webcaster can come to broadcasting is 'multicasting' to a specific range of IP addresses.  What one sees on the Web today is "unicasting", which is initiated by a request from the recipient and not by the webcaster.
Temporal limitations: Unlike traditional broadcasting (which does not include cable), content on demand is possible over the Web.  By this, the temporal limitations faced by traditional broadcasting, which is ephemeral, are overcome.  This opens up many possibilities that should not be hampered by creating an excessive legal regime (and that too a property regime) over webcasting.
Geographic limitations: While terrestrial broadcasting is limited in geographic scope (which satellite and cable-casting are less susceptible to), webcasting knows no geographic limitations.  As long as an Internet connection is present, the content can be viewed anywhere.  Additionally, granting a separate webcasting right will open up a jurisdicational can of worms.
Marginal costs of subscribers: While in terrestrial broadcasting, adding an additional receiver does not cost the broadcaster anything, in satellite television (direct-to-home), cable television and webcasting, each additional receiver means either additional infrastructure (cables and set-top boxes) or additional server load.  In the case of webcasting, this marginal cost is small enough to ignore, especially given all the other reasons mentioned previously.

Conclusion

There are still a number of uncertainties surrounding the inclusion of webcasting in the Broadcast Treaty.  Michael Nelson of the Internet Society points out that questions such as who the broadcaster is in a download grid, in distributed gaming, for webcasts of surveillance videos, etc., are unanswered.  As the example of the download grid (a situation where the 'casting' is multipoint-to-point) shows, many Internet-specific scenarios have not been contemplated by the treaty negotiators.  Situations which might soon be reality, such as peer-to-peer relaying of webcasts are also not contemplated, and the treaty would become a policy document preventing such technological innovations.  Whether IPTV would be included within webcasting is also unclear. The WIPO chair in his informal paper noted, 'Finally, if after consideration of the options above (A/B) and possible other options, it will not in the present situation be possible to decide on the establishment of a new treaty, the SCCR should end these discussions through an express decision in order to avoid further spending of time, energy and resources to no avail. Such a decision could include a timetable for later revisiting and reconsidering the matter.' (SCCR/15/2 rev)  SCCR should end these discussions which have gone on for more than a decade without any progress.

In August 2006, Jamie King shot Part I of 'Steal This Film' in Sweden, combining found material, propoganda-like slogans and Vox Pops, along with accounts from members of the Pirate Bay, Piratbryan and the Pirate Party. The film critiques the alleged regulatory capture attempt performed by the Hollywood film lobby in order to leverage economic sanctions by the United States government on Sweden through the WTO. The film interviews the Pirate Bay Members Fredrik Neij, Gottfrid Svartholm, and Peter Sunde and Piratbryan members Rasmus Fleischer, Johan and Sara Anderson, who recount the search and seizure raid conducted by the Swedish police, with the purpose of disrupting the Pirate Bay's BitTorrent tracker. This raid, according to the Pirate Bay members, was against the Swedish law and conducted under pressure from the Motion Pictures Association of America. The documentary was officially released on filesharing networks on 28 December 2007 and, according to the filmmakers, downloaded 150,000 times in the first three days of distribution. The Pirate Bay encouraged the downloading of 'Steal This Film II', announcing the film's release on its blog. 'Steal This Film II' was also screened by the Pirate Cinema, Copenhagen, in January 2008.

In the post-Napster era of peer to peer networks, the Pirate Bay case has been the media highlight on file sharing. After the police raided 12 different premises in May 2006, confiscating 186 servers and causing the torrent tracker to shut down for three days, the Pirate Bay re-opened to double the number of visitors, as its popularity got a shot in the arm with the extensive media coverage. While the MPAA termed the raids as extremely succesful, the Pirate Bay, which restored its servers in three days, thought otherwise. After a preliminary investigation and interrogation by the police, a four thousand page report was prepared by the prosecutor, in preperation of a trial. The Swedish prosecutors filled charges in January 2008 against four individuals they associated with The Pirate Bay for 'promoting other people's infringement of copyright laws'.

The Swedish prosecution raised a furore in the world of Intellectual Property by suing The Pirate Bay. While the prosecutors contended that millions of people get access to copyrighted materials such as movies, songs, and software programs, which can be downloaded for free by going to The Pirate Bay site, the contentious issue lies in the fact that the Pirate Bay itself does not host any files. Just as Google is an index of links, The Pirate Bay is an index of where those files are located. The original files are located across millions of computers around the world, which may only have a small fragment of the original file, and which share these fragments using BitTorrent. According to CableLabs, an organisation of the North American cable industry, BitTorrent represents 18% of all Broadband traffic. Apart from suing The Pirate Bay, the major Hollywood studios have also tried pressure tactics to contain copyright infringement. HBO in 2005, for example, poisoned torrents of its 'Rome' TV show by providing bad chunks of data to clients. It also sent cease and desist letters to the Internet Service Providers of BitTorrent users. The increased pressure from the Hollywood lobby and persistent lawsuits have resulted in the shutdown of various BitTorrent indexing sites, such as the Supernova.org, Torrentspy, LokiTorrent, Demonoid, Oink.cd and EliteTorrents.org.

The Pirate Bay Trial started on 16th Feburary 2009, with defense lawer Per E. Samuelson, arguing that it is legal to offer a service that can be used both legally and illegally, under the Swedish Law. He compared the Pirate Bay services to making cars that can be driven faster than the speed limit. On the second day of the trial, the prosecution dropped half of the charges against the Pirate Bay, due to shortcomings in evidence. Prosecutor Hakan Roswall dropped all charges related to 'assisting copyright infringement', leaving 'assisting making available' as the remaining charge. The next day of the trial saw an argument by the defense attorney Per Samuelson, which was latter dubbed as the King Kong defense, popularised by the blogs, file sharing news feeds and the media. The defense stated:

EU directive 2000/31/EC says that he who provides an information service is not responsible for the information that is being transferred. In order to be responsible, the service provider must initiate the transfer. But the admins of the Pirate Bay don’t initiate transfers. It’s the users that do and they are physically identifiable people. They call themselves names like King Kong... According to legal procedure, the accusations must be against an individual and there must be a close tie between the perpetrators of a crime and those who are assisting. This tie has not been shown. The prosecutor must show that Carl Lundström personally has interacted with the user King Kong, who may very well be found in the jungles of Cambodia...

The remaining six days of the trial saw questioning of the accused, witness depositions by plaintiffs and conflicting academic research by experts, as the prosecution tried to show that the Pirate Bay was an immensely profitable business that made money by helping others infringe copyright laws. The four operators of the site, Fredrik Neij, Gottfrid Svartholm, Peter Sunde and Carl Lundstrom, were convicted by Stockholm district court on 17 April 2009 and sentenced to one year in jail each and a total of 30 million SEK (approximately 3.5 million USD, 2.7 million EUR) in fines and damages. In its verdict the court stated that 'responsibility for assistance can strike someone who has only insignificantly assisted in the principal crime'.

Even while filming of 'Dark Fibre' was on here in Bangalore, Jamie and his crew were filming outside the courtroom in Stockholm, as the the subjects of 'Steal This Film' went on trial and were convicted. The convicted are now preparing to appeal against the sentence and the fine in the higher Swedish court. 

Confused about the difference between an MSO and a COAX? Well, this will simplify cable TV for you.

The system of providing television to consumers using radio frequency signals transmitted to televisions using fixed optical fibers or co-axial cables is called cable television. This is different from the over-the-air method used in traditional television broadcasting (via radio waves) for which a television antenna is required. FM radio programming, high-speed internet, telephony, and similar non-television services may also be provided.

Still confused? It's simple.

Your local cablewallah is a Private Cable Operator, a private small cable company dealing/competing with the Multi System Operators (MSO), who is an operator of multiple cable systems. For example, Hathway, Siti Cable, In TV are MSOs who operate either directly or via small cablewallahs. When cable TV was first introduced in India, small entrepreneurs set up their private cable companies, providing anywhere between seven to twenty channels to their local neighborhoods. They put up their own cable dish to down-link the broadcast signals from the satellite. Up until 1997, this was the only way one could access cable television; but this changed with the entry of the Multi Service Operators, who used better technology to provide clearer pictures, better sound and up to a 100 channels.

The broadcaster up-links the signal to their channel via satellite. The MSO down-links this signal, using a control room or a rear end. Inside the control room would be a set of RF signal modulators. Scientific Atalanta is an industry standard in India that provides control room equipment to various MSOs. The MSOs, which started off with analog technology to transmit their signals, are now moving to digital cable, delivering cable television as digital data instead of an analog frequency.

Because many MSOs continue to use analog transmission for low-numbered channels, and digital transmission for higher channels, a typical digital cable box is also able to convert traditional analog cable signals. Despite the advance of cable-ready television sets, most users need a cable box to receive digital channels. However, customers who do not subscribe to any digital channels can go without; MSOs provide "basic cable" service within the analog range, avoiding the need for distributing a box. However, advanced carrier services such as pay per view and video on demand will require a box.

Digital television allows for a higher quality and quantity of cable TV signals. Digital transmission is compressed and allows a much greater capacity than analog signals it almost completely eliminates interference. Digital converters have the same purpose as analog ones but are able to receive digital cable signals. With more data than analog in the same bandwidth, the system delivers superior picture and sound quality.

The MSO further re-transmits the RF signal from to the cablewallah, via coaxial optical cables or simply known as COAX that in turn boosts this signal using amplifiers and provide it to various homes using a common type of optical cable called RG6. The term RG was initially used by the US Military as an abbreviation for Radio Guide, but the term is now obsolete. RG6, in common practice, refers to coaxial cables with an 18 AWG center conductor and 75 ohm characteristic impedance. It typically has a copper-coated steel center conductor and a combination aluminum foil/aluminum braid shield. They are usually fitted with F connector style, in each end.

Once the signal reaches a cablewallah, the responsibility of the MSO ends, and it is up to the Cable Operator to maintain and distribute cable television from there onwards. Once the signal reaches the consumer's home, it is processed by a television converter box, popularly known as a set top box. A set top box is an electronic tunning device that transposes or converts any of the available channels from a cable television service to an analog RF signal on a single channel. The device enables televisions which are not cable ready to receive cable channels.

Modern set top boxes have a descrambling ability. The past three years have seen the entry of Direct to Home Pay TV operators, such as Tata Sky or Dish TV in the market, taking the technology to a new levels of sophistication, where the customers use a small cable dish to down-link the broadcasters signals which are processed with a set top box. In case of premium television, or paid channels, the broadcaster up-links an encrypted or a scrambled signal. When the signal reaches the home of the end user, it is reprocessed using a set top box, thus descrambling it and making it available for viewing on Television. A descrambler must be used with a cable converter box to be able to unencrypt all the premium and pay-per-view channels of a cable television system.

Now, put on that television, forget the tech and get back to the latest IPL match!

With inputs from MSOs, Local Cable Operators and Wikipedia for definitions of terms.

Television emerged as one of the biggest gainers in a post-liberalisation India during the '90s. From 41 television sets and one channel in 1962, the country has come a long way, with over 130 million homes with televison. Cable TV has spurred an unprecedented revolution for the entertainment and advertising industry. As a country where more than half the population lives on a daily income of less than USD 1 but swears by its Indian Premier League, India has also emerged as the Asian giant in pay TV piracy. The Cable and Satellite Broadcasting Association of Asia, in a pan-Asia survey, pegged the net loss of revenue to the television industry due to pay TV piracy at USD 1.1 Billion in 2008. In its annual report published last year, it estimates that over 21.64 million cable TV homes went unreported, either on account of theft or leakage by local cable operators. This is almost one-fouth of the 8.5 million existing cable TV connections across the country. The report also suggests that 65 percent of the total loss of USD 1.76 Billion due to cable TV piracy in Asia comes from India alone, followed by Thailand at USD 180 Million.

According to Shashi Kumar, the General Manager of Hathway Cable TV Private Limited, a Multi Service Operator, 'All cable operators report only 10-15 percent of their total subscriber base. Obviously, the piracy figures in this industry will be very high.' A cable operator in Bangalore, on the condition of being anonymous, discloses, 'We are providing cable TV connections to over 800 homes. But we declare only 250, because that is the minimum number of connections that the MSO wants. There are not enough margins in the business to sustain accurate reporting.' The average cost of setting up a cable operation now runs into crores of rupees and the business is not lucrative if it is entirely clean. The average price for a digital cable connection charged by an MSO to the local cablewallah is between Rs. 180-200, the charge to the end consumer is Rs. 250 per connection per month. This does not seem to spell profit for the cable operators. 'An amplifier alone costs Rs. 3500 per unit and serves about 20 homes. The cost of the RJ6 cable is Rs. 4300 a bundle. How can we be expected to do business on a profit margin of Rs. 50 per month? If the margins were higher, perhaps operators would not leak connections,' adds the cable operator.

While Multi Service Operators seem to be fed up of the situation, there is not much they can do about it. 'There are already 5-6 national level MSOs. And then there are new entrants into the market every month. Despite knowing that the cable operators are under-reporting connections, we continue to work on minimum level subscriptions because the market is extremely competitive. If we take action against a cable operator, we would lose out on whatever business we have to a new player,' adds Shashi, while describing the operations of their company.

The industry is now looking at growth in the number of Direct To Home subscribers as a deterrent to piracy. Estimates suggest that by 2015, over 40 percent of subscribers in the pay TV universe is likely to comprise DTH owners, up from the current five percent. Frightened of repeated instances of signal piracy on their networks, broadcasters are now investing in signal encryption technology, to ward of the pirates. However, till DTH television becomes the norm rather than the exception, one can expect more tussles between the broadcasters, Multi Service Operators, regulators and cablewallahs, in the world of pay TV piracy.

'Dark Fibre' is a documentary/fiction hybrid by J. J. King, producer/director of the 'Steal This Film' series, which has already reached over six million people online and is working towards achieving international television distribution, and Peter Mann, a British film-maker whose most recent work is titled 'Sargy Mann'.

'Dark Fibre' is set amongst the cablewallahs of Bangalore, and uses the device of cabling to traverse different aspects of informational life in the city. It follows the lives of real cablewallahs and examines the political status of their activities.The fictional elements arrive in the form of a young apprentice cablewallah who attempts to unite the disparate home-brew networks in the city into a grassroots, horizontal 'people's network'. Some support the activity and some vehemently oppose it -- but what no one expects is the emergence of a seditious, unlicensed and anonymous new channel which begins to transform people's imaginations in the city. Our young cable apprentice is tasked with tracking down the channel, as powerful political forces array themselves against it. Not only the 'security' of the city, but his own wellbeing depend on whether he finds it, and whether it proves possible to stop its distribution. Meanwhile, mysterious elements from outside India -- possibly emissaries of a still-greater power -- are appearing on the scene. This quest for the unknown channel is reminiscent of a modern-day 'Moby Dick', with the city of Bangalore as the high seas and our cable apprentice a reluctant Ahab. The action is a combination of verite, improvisation and scripted action.

In conversation with Jamie and Peter in Bangalore

Q: How did you get the idea to make Dark Fibre, a fiction film?

Peter:

We first met through BritDoc--British Documentary--and they run Channel 4 which is a Film Foundation. They have been good to us. They funded both Steal This Film and 'Sargy Mann'--a film on my father who is a blind man. They organised a meeting of all the directors they had funded and we met there. We were both thinking about what to do next and felt frustrated because we were making documentaries but really wanted to make fiction. We both shared the same ideas, with regard to shooting something completely as it is but presenting it in a fictional context.

Jamie:

And furthermore, we agreed that documentaries are not really real life. Because at the end of the day, I will keep only what I like, make you look at the way I want you to, I would cut you out of the picture if I don't agree with you. This happens even with the most worthy of the films. And you can be more truthful in fiction because its always a subjective truth. Fiction allows things to remain more real. I don't need an argument in the film. If I can just say, here is one guy's story and this is his story, then you can see the city with no bullshit. The story would allow you to look at things as they are; it's partly that idea behind Dark Fibre.

This is in some way related to the concept of the artistic truth. You use all the tools at your disposal to tell a story, not just literal facts. This is about presenting things within an atmosphere, presenting things in a context. This then adds up to someone understanding something about the world, and I think fiction serves that better than documentary.

Q: What brings you to India to make Dark Fibre? 

I think the cablewallah networks are unique. I have never seen anything like this anywhere else myself. India is also in a very, very interesting time and place. The idea of information as a commodity is alive here as it isn't in many other places. The value of information is very high here. There is a western imaginary of Bangalore which is immediately fascinating. It's the place where our information is processed. This is where our credit card and our phone data goes. And it enters a weird black market that we don't understand. This is the cliché. We already have cliché films about Bombay and call centers. We do not want to put a call center into the film because that is already the imagined cliché vision of Bangalore. It is obviously far more sophisticated than that. And in some ways it is far patchier than that. Who are these information workers? What are they doing and at which level are they doing it? Are they the street workers putting cables into walls or is it the guy at Infosys who is hiring people and teaching them to fake English accents? Which is the real information worker? That variegation of information life in Bangalore is interesting, not just to us, but, I think, to everybody. Information dexterity is perceived as the signature of Northern dominance. The ability to manipulate information, to move intellectual property, to transform an idea into a product, to transform someone else's idea into your property. That kind of dexterity is seen as the keynote of western dominance. And watching a developing country transform into an information dextrous economy, seeing information dextrous people is amazing. And then there is the patchiness of it--who gets left behind? Who gets included? Whats missed out and what is added in that vision? How is it manipulated in favor of big businesses? And all of this is fascinating not only from an orientalist's point of view but from a general economic-socio-political point of view.

Q: What is the underlying concept that brought about Dark Fibre?

Jamie:
 
While making 'Steal This Film' we spent a year on a 36 minute film trying to make an argument that would be staunch, impactful, and radical. What we learned is that it's very difficult to set out to argue your way to the truth. It's relatively easier to let the world itself speak and in the meanwhile observe it in detail. The kind of issues we are engaging with in Dark Fibre are around people's relationships with information and their relationship with freedom. These are very, very hard to nail down and speak about in a radical way. These are things left to the Intellectual Property lawyers, it's already happening, it's already cliché. All the arguments are already written. And even after a year of Steal This Film, it's shown in liberal universities – Wait! Liberal universities? I was supposed to be an anarchist! We want to go further. We want to tell people things through an image.

Peter:

Our idea of relationships is exploring the parallel physical communications networks and the virtual networks. In a city like Bangalore you see it. The traffic here is chaotic but it works. How? There is no answer to that. But it provokes questions. Through Dark Fibre, we are trying to say that there is a potential network in the city (cablewallahs) which is currently being unused and asking what it would take to unlock that potential and where would it take us if that really happens.

Q: Why the cablewallahs? What is so fascinating about them?
 
Jamie:
 
Yes, we are interested in the cablewallah network and I think it's quite perverse that it makes people from around here laugh. You see cablewallahs as a fact of life, probably a mundane fact of life. Westerners, Europeans, who are used to orderly deployments of information technology are completely blown away when you tell them that this is how it works in India. Ad hoc, grassroots, messy, out of control.

To the West, it is just unthinkable that the government would allow something like these networks, which supply 24 hours television. To not have these under government control is unthinkable.

So, obviously, we are at a point of transition where it's unthinkable to the Global North and it would become unthinkable here too. We are in the middle of that shift and thats one of the things we are trying to document; the network form, which is horizontal, ad hoc and on the street, becomes not only regulated but seditious.

Because it begins to be seen as almost dangerous. As the regulators move in, they take Direct to Home control of all the deployments of their intellectual properties. The older networks start to look not only like intellectual property right infringements, but their disorder is also seen to be terrorist.

Our proposal in this film is - "What if instead of just dying peacefully, someone had the idea of transforming these networks that used to deliver international and local content, by connecting them together, and turning them in to massive local media networks which are used for media sharing, file sharing, your own local channel?" There is a potential because the network is already there.

In a way, if you think about the microcosm idea of the Internet as a whole, that essentially is what our plot is. On a certain level you would say that it's just a network but then the internet is the most important driving force of the world today.

Jamie:

The point is that once this idea is out, we can create the infrastructure to connect the entire city, infrastructure we can all use. Everyone starts to have a stake in it, be it the newspapers, TV channels, pirate markets (they will say, "No one is buying our shit anymore because they can share it over the network"), the computer manufacturers, the importer of Chinese routers, a gangster who thinks he can advertise on the network, the intellectual property lawyer... different people start getting the idea that they might have something to do with this network. Basically this is a chaos scenario, from which arises the plot. It is a fictional scenario but is set in the reality of information sharing here today.

Q: What is the technique you use to make the plot hybrid fictional?
 
Jamie:

The main character is played by an actor and he will be an embedded actor, working with the real cablewallah. Parts of it will be documentary, seeing how the cablewallah works and the viewer, through watching this actor, will understand how the network works. We have already spoken to some cablewallahs. And they have been very happy about all this. We see this as sort of embedded journalism, where the embedded actor takes the place of an interviewer. The film is not going to be historical. The characters will have a background and the film is going to have a background, but what we are trying to do is show the 'now'. We want to make it speak about the past and speak about the future. About our future.

Q: 'Steal This Film' was a critique of the international intellectual property regimes. Would this film also be similarly advocative?
 
Jamie:

We are going to the next level from 'Steal This Film', and this is more of my argument than Peter's -- that the conversation about Intellectual Propery is over or the film is the last word at all. But I personally need to go somewhere else to say more. I am interested in information in general. And how information affects what we can think, what we can dream, what we can be, how it forms all of us -- that is what we are working on in 'Dark Fibre' and the question of intellectual property is a subset of that question. We spend a lot of time talking about ideas and that's one of the things that connects us. We want to articulate a lot of the philosophical, abstract ideas in this film. And we will see if we can manage to do it in a new context. 'Steal This Film' interested a few people and this will be the next point of departure for discussion.

Q: Peter, do you share Jamie's passion for Intellectual Property?
 
Peter:

Not in the same way. I am very interested in the subject. Anybody who creates work is interested in it. In my last film, there is a constant commentary of a test match going on and as a result of it, it is almost impossible to sell it to television; people who own the rights to the cricket say that we have to pay them thousands of pounds! I am interested in documenting the world as it is and not what is cleaned up for TV. I am interested in the specifics. If you get on a bus in London, the ringtone everyone has on a mobile phone is not a ringtone but a particular song. But you can't put that on film because Mick Jagger, or whoever the artiste is, will want ten thousand pounds for it. The frustration that I face is that it is impossible to put the world that I see in front of me on film. I used to work with TV commercials and you would never see anything in commercials that is not the product being sold. I was once working on a Coca Cola commercial in New York and there was a person who was appointed by Coca Cola to go around the whole set to ensure that no one is drinking anything that is not made by Coca Cola, whether that is water or juice. Anything. And I think all that is about creating a creased world that we don't live in. I am interested in the world, through documentaries or fiction, that we live in. And it is bits of music, it is referenced films, we reference music, we reference sport. Just because people have rights over these, you never see them on film. That is my main area of interest, more than what is happening on the legal front.

Saturday, December 13, 2008 had Mishi Choudhary and Eben Moglen of the New York-based Software Freedom Law Center speaking to the students of the National Law School of India University in Nagarbhavi, Bangalore, in a talk organized by CIS.

Mishi Choudhary, who will head the Software Freedom Law Center in New Delhi, spoke on "Globalising Public Interest Law: The SFLC Model".  She told the students about the importance of non-profit legal work as well as its viability as a career choice.  She also laid out the background to the work that SFLC does, and traced a brief history of software patent cases

Eben Moglen chose to speak on "Who Killed Intellectual Property and Why We Did It?".  He started off by talking of the interconnections between law and societal change: how law can't keep pace with the changes we see around us, and how law actually sometimes changes in the reverse direction, while trying to maintain the status quo. 

This is not a new phenomenon, he noted, and that when law is responsive to anybody, it listens to the 'people of the past' more carefully than the 'people of the future'.  This, he says, is compounded by the fact that the primary mode of change in the law is not legislation (since there is nothing legislators hate more than legislating), and that the better lawyers usually represent only those who can afford to pay them, hence resulting in systemic injustice.  He emphasised that the clients of the SFLC, on the other hand, are people who create software worth billions of dollars, but who do not own it.

On that point of creation for the purpose of sharing and not owning, a student raised the question of why proprietary rights shouldn't exist in creations of the intellect.  In response Mr. Moglen pointed out that while his personal opinions might be different, the Software Freedom Law Center does not seek to bring into dispute the concept of property rights in software, nor the fundamentals of patent law: it is merely concerned with the scope of patent law, and seeks a literal enforcement of patent law as it exists in most jurisdictions.

Another question that cropped up was on the economics of software creation and the anti-competitive nature of free software.  To this, Mr. Moglen provided a brief summary of the tragedy of the anticommons by using land to be acquired for public works in the centre of a city as an example.  In software, this problem is only exacerbated, he pointed out.  Most physical creations over which patents are granted have something like 8 or 10 steps.  Software code is different because it contains thousands of instructions.  Even big companies face the anticommons problem; but they manage to evade it by cross-licensing agreements which results in efficient transactions for them since it involves no exchange of money whatsoever.  Small companies are in a worse situation, since they don't have those kinds of patent portfolios to be able to enter into cross-licensing agreements, no matter how innovative they are.  Thus, in effect, the system is rigged against them.  This provides a partial answer to the antitrust question, he noted.  Competition law is actual in favour of free software.  The right to practise a trade or profession, and the right to speech get implicated in any case where a FLOSS-based company is hauled up before a court being accused of conspiring with other to take cost to zero.

Mr. Moglen further explained that when it comes to software, the problem of patenting is very different.  A 20-year monopoly is more reasonable from the viewpoint of physical creations.  Patent law, however doesn't tailor the rights that are granted by a patent.  The problem starts right from the process of granting a patent.  The job of a patent office being to apply the tests of non-obviousness, novelty and utility, most patent offices can do a reasonable job in most fields of technological endeavour, since there is a large body of innovation with which the proposed patent can be compared.  Software, however, is a recent field with a large number of applications coming in all at once.  While the patents that are sought might include claims on ideas and applications that existed in software in 1956, those aren't easy for the patent offices to dig up, since the field of software patents and software itself have not existed for the same length of time.