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Thursday, September 20, 2007

Openness and the ethic of sharing

Rufus Pollock, Talk at Law 2.0: Openness, Web 2.0 and the Ethic of Sharing, Open Knowledge Foundation Weblog, September 18, 2007.  Excerpt:

Yesterday I was at the SCL’s “Law 2.0? : New Speech, New Property, New Identity” talking on Openness, Web 2.0 and the Ethic of Sharing. The full text of my talk is inline below, there are companion slides up online (more graphics!) and for those who like source here a link to the markdown original....

One of the first printed texts of which we have record is a copy of the Buddhist Diamond sutra produced in China around 868AD. In it can be found the dedication: “for universal free distribution”. Clearly, the idea of open knowledge, that is knowledge you are free to use, reuse and redistribute, has been present since humanity first began to formally transmit and share ideas. It is also likely that the urge to keep ideas secret, particularly those that had ‘commercial’ value, is equally old....

With the introduction of formal monopoly rights such as patents and copyrights during the sixteenth and seventeenth century there was now a halfway house of sorts whereby the monopoly (and the associated profits) of secrecy was combined with openness in the form of the disclosure of the work....

Free, unencumbered access to a piece of knowledge whether it be a film or a database, is the most obvious way that openness delivers benefits. Because it is cheaper and easier to get hold of open knowledge it may be much more widely used than it would otherwise. Each such extra user, who gains access because open knowledge is cheaper or easier to get hold of than ‘closed’ knowledge, derives a benefit that increase the well-being of society.

Let me give a few examples of how profound these effects may be....

While the benefits of openness for users are obvious, by contrast, the benefits for production are much less so. After all, by removing the possibility of monopoly provided by secrecy or intellectual property, openness may eliminate one of the primary means by which producers finance their activities. Nevertheless there are a variety of ways in which openness can be beneficial (as well as several reasons why it may not be as harmful for revenues as one might think)....

The main point to make is that in industries which are cumulative, that is new ideas and inventions build upon old, proprietary rights mean having to ask ‘permission’ (and pay for it) — while openness does not. With openness it is easier for subsequent innovators and creators to produce new work while with proprietary rights one have increased transactions costs as well as a whole bunch of bargaining issues — most prominently the risk of ‘hold-up’. Particularly in cases where the initial creator today may be the reuser tomorrow the benefits of openness in freer and more rapid reuse and cumulative innovation may outweigh the losses from lower immediate revenues....