SHARINGSHARING SHARING SHARINGSHARINGSHARINGSHARINGSHARINGSHARINGSHARINGSHARING SHARINGSHARINGSHARINGSHARINGSHARINGSHARINGSHARING SHARINGSHARINGSHARINGSHARINGSHARINGSHARING SHARINGSHARINGSHARINGSHARING SHARINGSHARINGSHARINGSHARINGSHARINGSHARINGSHARING S SHARINGSHARINGSHARINGSHARINGSHARINGSHARINGSHARING SHARINGSHARINGSHARINGSHARINGSHARINGSHARING SHARINGSHARINGH SHARINGSHARINGSHARINGSHARING SHARINGSHARINGSHARINGSHARINGSHARINGSHARINGSHARINGSHARINGSHARINGSHARINGSHARING SHARINGA SHARINGSHARINGSHARINGSHARING SHARINGSHARINGSHARINGSHARINGSHARINGSHARINGSHARINGSHARINGSHARING R SHARINGSHARINGSHARINGSHARINGSHARINGSHARING SHARINGSHARINGSHARINGSHARINGSHARINGSHARINGSHARINGSHARINGSHARING I SHARINGSHARINGSHARING N SHARINGSHARING SHARINGSHARINGSHARINGSHARING SHARING G Culture and the Economy in the Internet Age — Philippe Aigrain with contribution of Suzanne Aigrain amsterdam university press Sharing Sharing Culture and the Economy in the Internet Age Philippe Aigrain with the contribution of Suzanne Aigrain Amsterdam University Press The publication of this book is made possible by a grant from the Open Society Foundations. This book is published in print and online through the online OAPEN library (www.oapen.org). OAPEN (Open Access Publishing in European Networks) is a collaborative initiative to develop and implement a sustainable Open Access pub- lication model for academic books in the Humanities and Social Sciences. The OAPEN Library aims to improve the visibility and usability of high quality aca- demic research by aggregating peer reviewed Open Access publications from across Europe. Cover design: Maedium, Utrecht Lay-out: JAPES, Amsterdam isbn 978 90 8964 385 8 e-isbn 978 90 4851 534 9 nur 983 Creative Commons CC BY NC ND http://creativecommons.org/licenses/by-nc-nd/3.0 P. Aigrain & S. Aigrain / Amsterdam University Press, Amsterdam, 2012 Some rights reserved. Without limiting the rights under copyright reserved above, any part of this book may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form or by any means (electronic, mechanical, photocopying, recording or otherwise). To Mireille, Tom, Louise and Jonathan Acknowledgments Building upon a book that was published by Philippe Aigrain earlier in French (Internet & Création: comment reconnaître les échanges sur internet en finançant la création, InLibroVeritas, October 2008), Sharing: Culture and the Economy in the Internet Age takes into account comments, criticism and suggestions for improve- ment received from many readers. The ideas developed in Sharing could not mature in isolation: they are rooted in collective environments. Invaluable inspiration and support were provided by Jérémie Zimmermann and all the participants in La Quadrature du Net, by Juan-Car- los de Martin and the members of the COMMUNIA Network on the Digital Public Domain, by researchers in the Berkman Center for Internet & Society and the NEXA Center for Internet & Society, members of the Forum d’Action Modernités, and participants in the Free Culture Forum and the Free Culture Research Confer- ences. Some of the findings presented in this book would have been impossible with- out the large-scale data collection and publication efforts conducted by research- ers such as Frédéric Aidouni, Mathieu Latapy and Clémence Magnien of the Com- plex Networks team of University Paris 6, and Bodó Balázs and Zoltán Lakatos of University of Budapest. Many individuals deserve a special mention: Sharing would not be what it is with- out Fernando Anitelli, Phil Axel, Raphaël Badin, Maja Bogotaj, Yochai Benkler, Juan Branco, Paul Branco, Jean-Gabriel Carasso, Aline Carvalho, Mario Ciurcina, Roberto di Cosmo, Milad Doueihi, Mélanie Dulong-de-Rosnay, Christophe Espern, William Fisher, Vera Franz, Mayo Fuster-Morell, Volker Grassmuck, Jim Griffin, Peter Jenner, Gaëlle Krikorian, Hervé Le Crosnier, Olivier Lejade, Lawrence Lessig, Simona Levi, James Love, Eben Moglen, Francis Muguet†, Charles Nesson, Jérémie Nestel, François Pellegrini, Valérie Peugeot, Rufus Pollock, Manon Ress, Marco Ricolfi, Gérald Sédrati-Dinet, Tom Smith, Richard Stallman, Malte Spitz, Peter Sunde, Félix Tréguer and Laurence Vandewalle. We remain of course solely responsible for the analysis and proposals developed in this book. Mireille, Louise, Tom, Jonathan, and many friends created an environment without which this book would not exist. 7 Sharing found its home in the publishing world at Amsterdam University Press, an open access friendly publisher staffed with author-friendly editors. We are grateful to Saskia de Vries, Jeroen Sondervan, Chantal Nicolaes, Paul Penman and Alison Fisher for transforming our text into a published book and open ac- cess monograph. This book was drafted and laid out using the Lyx, Latex, and JabRef free soft- ware. Graphical illustrations were produced with the Inkscape and Gimp free software or from our own software in Python. Our software and datasets can be downloaded from the book site at http://www.sharing-thebook.net. On the same site, the reader can also run our models with adjusted parameters and upload datasets in order to run our algorithms for the study of diversity of attention. 8 sharing Contents List of figures 11 List of Tables 13 1 Introduction 15 Setting the scene 2 The Internet and creativity debate 21 3 The value of non-market sharing 27 3.1 Sharing is legitimate 27 3.2 Sharing is useful 31 3.3 The media industry opposition to file sharing 43 4 Sustainable resources for creative activities 49 The Creative Contribution 5 Which rights for whom? A choice of models 59 5.1 Access without rights to share 59 5.2 Compensation schemes 65 5.3 Social rights for all 70 6 Defining rights and obligations 79 6.1 Which works to include 80 6.2 Rights and obligations of users and intermediaries 84 7 How much? 89 7.1 Rewarding the present and financing the future 90 7.2 Rewards 92 7.3 Financing production and the creative environment 100 7.4 Passing copyright-law tests 109 7.5 Is the Creative Contribution socially acceptable? 122 8 Sustainable financing for the commons 127 8.1 Evolution of the Creative Contribution in one country 127 8.2 International aspects 129 8.3 Economy and non-market commons 130 Implementation 9 Organization and complementary policy measures 137 9.1 Principle and essential components 137 9.2 Decision-making processes and democratic governance 139 9 9.3 Additional policy measures 141 10 Usage measurement for equitable rewards 145 10.1 A general usage measurement system 145 10.2 Registration and identification of digital works 149 10.3 Data collection 152 10.4 Performance in one medium 153 10.5 Management costs 155 11 Clarification and counter-arguments 157 11.1 Clarification 157 11.2 Criticisms by opponents 160 11.3 Criticisms by defenders 164 12 From proposal to reality 169 12.1 Grassroots Internet and creative communities 169 12.2 Government policy 172 12.3 Policy-makers 173 12.4 Entertainment players? 174 12.5 Collective management? 175 12.6 The continued role of academic research 177 Appendixes A Diversity of attention for beginners 181 A.1 From wealth to popularity 181 A.2 Testing and parameter estimation for Zipf's law 186 A.3 Zipf's law and diversity of attention in P2P sharing 189 A.4 A fresh look at the Long Tail theory 191 B The total cost of rewards and their distribution 193 B.1 The model used in chapter 7 193 B.2 Reward functions 197 C Modeling usage measurement 199 C.1 General model 199 C.2 Music singles in the US 201 C.3 Blogs in France 203 C.4 Fraud prevention and detection 204 Notes 207 Bibliography 221 Index 231 10 sharing List of Figures 3.1 Cumulative access (listening or downloads) to the 5565 music tracks avail- able on the Musique Libre site in 2006, normalized for how long they had been on-line [Aigrain, 2006]. p. 38 3.2 Comparison of the cumulated access on the Musique Libre site in 2006, with the cumulated access that would result from the best-fitting Zipf's law (see appendix A for technical details). p. 38 3.3 Cumulated attention for extreme observed cases. p. 39 3.4 Comparison between the observed cumulated attention for the 2 million most popular files in eDonkey sharing and the cumulated attention for a distribution similar to the one studied by Page and Garland [2009] for single commercial downloads, adjusted for universe size. p. 41 3.5 Cumulated observed access for film sharing in Hungary (1542 films shared over 3 months in 2008), data from Balázs and Lakatos [forthcoming]. p. 42 4.1 Cultural and creative activities and their economy. p. 51 4.2 Roles and functions in media. p. 52 7.1 An image from COMBO, a collaborative animation by Blu and David Ellis, http://vimeo.com/6555161, license CC-By-NC-ND.p.90 7.2 Various distributions of attention to creators can lead to great differences in the number of creators who share 90% of the usage credits. p. 95 7.3 Estimate of the 300 highest rewards from the Creative Contribution in the US, for all media in various hypotheses of distributions. p. 112 9.1 Core components for the organization of the Creative Contribution. p. 138 10.1 General structure of a possible usage measurement system. p. 146 A.1 Share of total wealth held by the 20% richest individuals, depending on the value of Pareto's law parameter. p. 182 A.2 The number of occurrences of words in a French text of 30,000 words, as reported by Estoup, reproduced in Petruszewycz [1973]. p. 184 A.3 Number of times each track was listened to for the 1000 most popular titles on the Musique Libre Creative Commons music streaming platform in 2006 [Aigrain, 2006]. p. 187 A.4 Share of access to the 80% least popular works under Zipf's law with the same parameter ( ¼ 1:0) in 100 universes containing between 1000 and 100,000 works. p. 188 B.1 Rewards for the first 20,000 creators among one million rewarded creators for various reward functions. p. 197 11 List of Tables 7.1 Number of rewarded contributors and total amount of rewards for various hypotheses on observed diversity or applied reward functions. p. 99 7.2 Estimates of yearly production investment for various media in three coun- tries.