1 00:00:03,437 --> 00:00:05,921 So, I apologize that I am going to introduce these 2 00:00:05,921 --> 00:00:07,546 ideas so early in the morning, 3 00:00:07,546 --> 00:00:09,497 after such a late night last night. 4 00:00:09,497 --> 00:00:14,025 But I'll like you to think of an alcoholic. 5 00:00:14,025 --> 00:00:15,581 And I don't mean the kind of drop-dead 6 00:00:15,581 --> 00:00:16,834 drunken alcoholic, 7 00:00:16,834 --> 00:00:20,921 or somebody who is even recovering from AA. 8 00:00:20,921 --> 00:00:23,243 I am thinking just of the regular alcoholic 9 00:00:23,243 --> 00:00:30,790 who works hard to control the addiction he has. 10 00:00:30,790 --> 00:00:32,717 But this particular alcoholic, I want you to 11 00:00:32,717 --> 00:00:36,107 imagine that, in addition to the addiction to alcohol, 12 00:00:36,107 --> 00:00:39,545 he has a second addiction as well. 13 00:00:39,683 --> 00:00:43,630 Not the debilitating addiction that keeps him 14 00:00:43,630 --> 00:00:44,466 down all day. 15 00:00:44,466 --> 00:00:46,417 And not a recovered drug addict. 16 00:00:46,417 --> 00:00:48,089 But an addiction nonetheless 17 00:00:48,089 --> 00:00:51,270 that continues to pull him in another way, 18 00:00:51,270 --> 00:00:52,895 away from what he wants to do. 19 00:00:52,895 --> 00:00:59,095 A person with two addictions, pulling different ways, 20 00:00:59,095 --> 00:01:01,974 making him vulnerable, making him dangerous, 21 00:01:01,974 --> 00:01:04,830 as he is susceptible to the temptations of each. 22 00:01:04,830 --> 00:01:09,474 And the trick for this soul is to control 23 00:01:09,474 --> 00:01:14,536 and to regulate these addictions, to keep them under control. 24 00:01:14,536 --> 00:01:17,021 Now I give you this picture because 25 00:01:17,021 --> 00:01:23,963 I think it is a good picture of modern democratic government. 26 00:01:23,963 --> 00:01:26,007 Modern democratic government too, is pulled 27 00:01:26,007 --> 00:01:28,120 by these two separate kinds of addictions. 28 00:01:28,120 --> 00:01:31,254 Constantly pulled by craziness. 29 00:01:31,254 --> 00:01:35,736 Craziness to one side for the people, or at least wrongly, 30 00:01:35,736 --> 00:01:37,849 as the people push the government to do what 31 00:01:37,849 --> 00:01:40,357 is not in the public interest. 32 00:01:40,357 --> 00:01:41,773 Think of Peronism, 33 00:01:41,773 --> 00:01:44,954 or the kind of populism that drove the 34 00:01:44,954 --> 00:01:49,296 banking and housing bubble in the United States. 35 00:01:49,296 --> 00:01:52,385 Or in the other hand, an addiction to special interests, 36 00:01:52,385 --> 00:01:56,912 let's call them "incumbents", constantly tempting the government 37 00:01:56,912 --> 00:01:59,304 to do something crazy for public policy 38 00:01:59,304 --> 00:02:01,301 in the name of benefiting the incumbents. 39 00:02:01,301 --> 00:02:04,180 And here, in the United States at least, you can think about 40 00:02:04,180 --> 00:02:08,824 just about every major policy issue where this addiction 41 00:02:08,824 --> 00:02:10,578 has had its role. 42 00:02:10,578 --> 00:02:12,841 Each of these pulling constantly, 43 00:02:12,841 --> 00:02:17,950 constantly tempting, always the government is vulnerable. 44 00:02:17,950 --> 00:02:22,269 Always, as libertarians insist, it is dangerous 45 00:02:22,269 --> 00:02:25,287 because it can always be exploited 46 00:02:25,287 --> 00:02:30,372 by one of these two sources at least, 47 00:02:30,372 --> 00:02:35,133 the temptations of the incumbents. 48 00:02:35,133 --> 00:02:39,916 OK now, the Internet is a platform, 49 00:02:39,916 --> 00:02:41,518 it is an architecture, 50 00:02:41,518 --> 00:02:46,023 it is an architecture with consequences. 51 00:02:46,023 --> 00:02:48,623 It is an architecture that enables innovation, 52 00:02:48,623 --> 00:02:52,524 or at least enables a certain kind of innovation. 53 00:02:52,524 --> 00:02:56,448 Think of the history of innovation in the Internet. 54 00:02:56,448 --> 00:03:02,356 Netscape, started by a drop-out from undergraduate university. 55 00:03:02,439 --> 00:03:04,436 Hotmail, started by an Indian immigrant, sold to 56 00:03:04,436 --> 00:03:07,037 Microsoft for 400 million dollars. 57 00:03:07,037 --> 00:03:11,820 ICQ, started by an Israeli kid and then his father, who was here, 58 00:03:11,820 --> 00:03:14,212 selling it to AOL for 400 million dollars. 59 00:03:14,212 --> 00:03:17,184 Google, started by two Stanford dropouts. 60 00:03:17,184 --> 00:03:21,015 Napster, started by a dropout and someone who 61 00:03:21,015 --> 00:03:22,966 hadn't yet been able to be a dropout, 62 00:03:22,966 --> 00:03:24,916 sitting on this panel, here, today. 63 00:03:24,916 --> 00:03:28,028 Youtube, started by two Stanford students. 64 00:03:28,028 --> 00:03:35,992 Kazaa and Skype, started by kids from Denmark and Sweden. 65 00:03:35,992 --> 00:03:38,569 And then, of course, Facebook, and Twitter, started by kids. 66 00:03:38,569 --> 00:03:42,029 What unites all of these innovations? 67 00:03:42,029 --> 00:03:48,438 They were all done by kids, dropouts, and non-americans. 68 00:03:48,438 --> 00:03:50,388 Outsiders. 69 00:03:50,388 --> 00:03:54,754 Because this is what that architecture invited. 70 00:03:54,754 --> 00:03:58,701 It invited outsider innovation. 71 00:03:58,701 --> 00:04:05,597 Now, outsider innovation threatens the "incumbents". 72 00:04:05,597 --> 00:04:08,128 Skype threatens telephone companies. 73 00:04:08,128 --> 00:04:11,054 Youtube threatens television companies. 74 00:04:11,054 --> 00:04:13,423 Netflix threatens cable companies. 75 00:04:13,423 --> 00:04:16,743 Twitter threatens sanity - 76 00:04:16,743 --> 00:04:18,879 not that sanity was ever an incumbent. 77 00:04:18,879 --> 00:04:25,009 But then the threatened respond to this threat. 78 00:04:25,009 --> 00:04:30,582 By turning to the addict, modern democratic government, 79 00:04:30,582 --> 00:04:34,715 and using drug of choice (which in the United States at least 80 00:04:34,715 --> 00:04:37,896 is an endless amount of campaign cash), 81 00:04:37,896 --> 00:04:42,564 using that drug to secure the protection 82 00:04:42,564 --> 00:04:50,110 against these threats that the incumbent faces. 83 00:04:50,110 --> 00:04:54,452 Now this was the point that I think president Sarkozy missed yesterday, 84 00:04:54,452 --> 00:04:57,749 and the question that Jeff Jarvis raised when he suggested 85 00:04:57,749 --> 00:05:00,188 that the principle that should be carried to the G8 86 00:05:00,188 --> 00:05:03,856 is that the government "do no harm". 87 00:05:03,856 --> 00:05:05,691 President Sarkozy said, no, but we have important 88 00:05:05,691 --> 00:05:08,849 policy issues to resolve. But here is the point. 89 00:05:08,849 --> 00:05:13,260 We get that there are "hard policy" issues here. 90 00:05:13,260 --> 00:05:17,394 From copyright, to privacy to security to the problem of monopoly. We get it. 91 00:05:17,394 --> 00:05:22,502 The point is, is we don't trust the answers the 92 00:05:22,502 --> 00:05:24,360 government gives. 93 00:05:24,360 --> 00:05:27,564 And for good reasons we don't trust these answers, 94 00:05:27,564 --> 00:05:31,418 because on issue after issue, the answer that 95 00:05:31,418 --> 00:05:35,784 modern democratic government has given here, 96 00:05:35,784 --> 00:05:39,174 is an answer that happens to benefit 97 00:05:39,174 --> 00:05:41,240 the incumbents. 98 00:05:41,240 --> 00:05:45,536 And ignores an answer that might actually 99 00:05:45,536 --> 00:05:49,066 encourage more innovation. 100 00:05:49,066 --> 00:05:51,689 So think for example about the matter of copyright. 101 00:05:51,689 --> 00:05:55,242 Of course we need a system of copyright 102 00:05:55,242 --> 00:05:58,655 that guarantees that creators get compensated 103 00:05:58,655 --> 00:06:01,419 and secures their independence to create. 104 00:06:01,419 --> 00:06:05,389 No one serious denies that we have to have 105 00:06:05,389 --> 00:06:08,152 that system of protection. 106 00:06:08,152 --> 00:06:12,634 The question is not whether copyright should be protected. 107 00:06:12,634 --> 00:06:16,279 The question is how to protect copyright 108 00:06:16,279 --> 00:06:17,556 in a digital era. 109 00:06:17,556 --> 00:06:19,861 Whether the architecture of copyright, 110 00:06:19,907 --> 00:06:22,074 built for the XIX century, 111 00:06:22,182 --> 00:06:25,010 continues to make sense in the XXI. 112 00:06:25,010 --> 00:06:30,560 And what is the architecture that would make sense in the XXI? 113 00:06:30,560 --> 00:06:36,620 Now, is this the question the government is asking? 114 00:06:36,620 --> 00:06:38,640 I think the answer to that is no. 115 00:06:38,640 --> 00:06:42,913 Instead, what the government is proposing, 116 00:06:42,913 --> 00:06:45,521 around the world, specially here, 117 00:06:45,613 --> 00:06:47,975 and I apologize to my colleagues from France, 118 00:06:47,975 --> 00:06:49,809 but this is a technical legal term. 119 00:06:49,809 --> 00:06:54,639 The proposal suggested here is a "brain-dead" 120 00:06:54,639 --> 00:07:00,991 3-strikes proposal that happens to benefit incumbents. 121 00:07:01,114 --> 00:07:05,514 Ignoring the potential of innovation that could come from 122 00:07:05,622 --> 00:07:07,990 a new architecture for securing copyright. 123 00:07:07,990 --> 00:07:11,427 And you don't have to take my view for this. 124 00:07:11,427 --> 00:07:14,515 The recent report from the conservative government in Britain, 125 00:07:14,515 --> 00:07:17,557 the Hargreaves report, says of copyright: 126 00:07:17,557 --> 00:07:20,204 "Could it be true that laws designed more than three centuries 127 00:07:20,204 --> 00:07:23,617 ago with the express purpose of creating economic 128 00:07:23,617 --> 00:07:25,196 incentives for innovation, 129 00:07:25,196 --> 00:07:27,866 by protecting creators' rights 130 00:07:27,866 --> 00:07:31,326 are today obstructing innovation and economic growth?" 131 00:07:31,326 --> 00:07:33,509 The short answer is: "yes". 132 00:07:33,509 --> 00:07:37,921 "In the case of copyright policy, there is no doubt 133 00:07:37,921 --> 00:07:40,266 that the persuasive powers of celebrities and 134 00:07:40,266 --> 00:07:42,193 important UK creative companies 135 00:07:42,193 --> 00:07:44,817 have distorted policy outcomes." 136 00:07:44,817 --> 00:07:48,370 And not just, I suggest, in the UK. 137 00:07:48,370 --> 00:07:50,808 Think about the question of broadband policy. 138 00:07:50,808 --> 00:07:53,478 Europe, has actually been quite successful, 139 00:07:53,478 --> 00:07:57,100 in pushing competition in broadband, 140 00:07:57,100 --> 00:07:59,887 and therefore pushing broadband growth. 141 00:07:59,887 --> 00:08:05,669 The US has been a dismal failure in this respect. 142 00:08:05,669 --> 00:08:09,453 As we watch the US going from number 1 in broadband penetration, 143 00:08:09,453 --> 00:08:12,170 now to, depending on the scale, 144 00:08:12,170 --> 00:08:15,491 number 18, 19, or 28. 145 00:08:15,491 --> 00:08:19,229 And that change is because of policies that 146 00:08:19,229 --> 00:08:21,946 effectively block competition 147 00:08:21,946 --> 00:08:25,406 for broadband providers. 148 00:08:25,406 --> 00:08:28,563 Their answer, these broadband providers brought to 149 00:08:28,563 --> 00:08:30,839 our government, and got our government to impose 150 00:08:30,839 --> 00:08:36,063 actually benefited them and destroyed the incentives 151 00:08:36,063 --> 00:08:38,409 for them to compete in a way that would drive 152 00:08:38,409 --> 00:08:41,845 broadband penetration. 153 00:08:41,845 --> 00:08:44,028 I think in light of these examples, 154 00:08:44,028 --> 00:08:47,651 it is completely fair to be skeptical 155 00:08:47,697 --> 00:08:50,787 of the anwer modern democratic governments give. 156 00:08:50,910 --> 00:08:53,454 We should say to modern democratic government, 157 00:08:53,500 --> 00:08:59,887 you need to beware of incumbents bearing policy fixes. 158 00:08:59,887 --> 00:09:02,209 Because their job, the job of the incumbents, 159 00:09:02,209 --> 00:09:06,667 is not the same as your job, the job of the public policy maker. 160 00:09:06,667 --> 00:09:10,336 Their job is profit for them. 161 00:09:10,336 --> 00:09:12,263 Your job is the public good. 162 00:09:12,263 --> 00:09:15,654 And it is completely fair, for us to say, 163 00:09:15,654 --> 00:09:19,508 that until this addiction is solved, we should 164 00:09:19,508 --> 00:09:23,154 insist on minimalism in what government does. 165 00:09:23,154 --> 00:09:26,149 The kind of minimalism Jeff Jarvis spoke off when he 166 00:09:26,149 --> 00:09:28,541 spoke of "do no harm". 167 00:09:28,541 --> 00:09:32,256 An internet that embraces principles of open and free 168 00:09:32,256 --> 00:09:35,948 access, a neutral network to guarantee 169 00:09:35,948 --> 00:09:41,195 this open access, to protect the outsider. 170 00:09:41,195 --> 00:09:44,655 But here is the one think we know about this meeting, 171 00:09:44,655 --> 00:09:48,835 and its relationship to the future of the internet. 172 00:09:48,835 --> 00:09:50,925 The future of the internet is not Twitter, 173 00:09:50,925 --> 00:09:53,781 it is not Facebook, it is not Google, 174 00:09:53,781 --> 00:09:57,124 it is not even Rupert Murdoch. 175 00:09:57,124 --> 00:10:01,350 The future of the internet is not here. 176 00:10:01,350 --> 00:10:05,623 It wasn't invited, it does not even know how to be invited, 177 00:10:05,623 --> 00:10:09,640 because it doesn't yet focus on policies and fora like this. 178 00:10:09,640 --> 00:10:14,470 The least we can do is to preserve the architecture 179 00:10:14,470 --> 00:10:17,688 of this network that protects this future 180 00:10:17,799 --> 00:10:19,417 that is not here. 181 00:10:19,562 --> 00:10:21,996 Thank you very much.