[Script Info] Title: [Events] Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text Dialogue: 0,0:00:03.44,0:00:05.92,Default,,0000,0000,0000,,So, I apologize that I am going to introduce these Dialogue: 0,0:00:05.92,0:00:07.55,Default,,0000,0000,0000,,ideas so early in the morning, Dialogue: 0,0:00:07.55,0:00:09.50,Default,,0000,0000,0000,,after such a late night last night. Dialogue: 0,0:00:09.50,0:00:14.02,Default,,0000,0000,0000,,But I'll like you to think of an alcoholic. Dialogue: 0,0:00:14.02,0:00:15.58,Default,,0000,0000,0000,,And I don't mean the kind of drop-dead Dialogue: 0,0:00:15.58,0:00:16.83,Default,,0000,0000,0000,,drunken alcoholic, Dialogue: 0,0:00:16.83,0:00:20.92,Default,,0000,0000,0000,,or somebody who is even recovering from AA. Dialogue: 0,0:00:20.92,0:00:23.24,Default,,0000,0000,0000,,I am thinking just of the regular alcoholic Dialogue: 0,0:00:23.24,0:00:30.79,Default,,0000,0000,0000,,who works hard to control the addiction he has. Dialogue: 0,0:00:30.79,0:00:32.72,Default,,0000,0000,0000,,But this particular alcoholic, I want you to Dialogue: 0,0:00:32.72,0:00:36.11,Default,,0000,0000,0000,,imagine that, in addition to the addiction to alcohol, Dialogue: 0,0:00:36.11,0:00:39.54,Default,,0000,0000,0000,,he has a second addiction as well. Dialogue: 0,0:00:39.68,0:00:43.63,Default,,0000,0000,0000,,Not the debilitating addiction that keeps him Dialogue: 0,0:00:43.63,0:00:44.47,Default,,0000,0000,0000,,down all day. Dialogue: 0,0:00:44.47,0:00:46.42,Default,,0000,0000,0000,,And not a recovered drug addict. Dialogue: 0,0:00:46.42,0:00:48.09,Default,,0000,0000,0000,,But an addiction nonetheless Dialogue: 0,0:00:48.09,0:00:51.27,Default,,0000,0000,0000,,that continues to pull him in another way, Dialogue: 0,0:00:51.27,0:00:52.90,Default,,0000,0000,0000,,away from what he wants to do. Dialogue: 0,0:00:52.90,0:00:59.10,Default,,0000,0000,0000,,A person with two addictions, pulling different ways, Dialogue: 0,0:00:59.10,0:01:01.97,Default,,0000,0000,0000,,making him vulnerable, making him dangerous, Dialogue: 0,0:01:01.97,0:01:04.83,Default,,0000,0000,0000,,as he is susceptible to the temptations of each. Dialogue: 0,0:01:04.83,0:01:09.47,Default,,0000,0000,0000,,And the trick for this soul is to control Dialogue: 0,0:01:09.47,0:01:14.54,Default,,0000,0000,0000,,and to regulate these addictions, to keep them under control. Dialogue: 0,0:01:14.54,0:01:17.02,Default,,0000,0000,0000,,Now I give you this picture because Dialogue: 0,0:01:17.02,0:01:23.96,Default,,0000,0000,0000,,I think it is a good picture of modern democratic government. Dialogue: 0,0:01:23.96,0:01:26.01,Default,,0000,0000,0000,,Modern democratic government too, is pulled Dialogue: 0,0:01:26.01,0:01:28.12,Default,,0000,0000,0000,,by these two separate kinds of addictions. Dialogue: 0,0:01:28.12,0:01:31.25,Default,,0000,0000,0000,,Constantly pulled by craziness. Dialogue: 0,0:01:31.25,0:01:35.74,Default,,0000,0000,0000,,Craziness to one side for the people, or at least wrongly, Dialogue: 0,0:01:35.74,0:01:37.85,Default,,0000,0000,0000,,as the people push the government to do what Dialogue: 0,0:01:37.85,0:01:40.36,Default,,0000,0000,0000,,is not in the public interest. Dialogue: 0,0:01:40.36,0:01:41.77,Default,,0000,0000,0000,,Think of Peronism, Dialogue: 0,0:01:41.77,0:01:44.95,Default,,0000,0000,0000,,or the kind of populism that drove the Dialogue: 0,0:01:44.95,0:01:49.30,Default,,0000,0000,0000,,banking and housing bubble in the United States. Dialogue: 0,0:01:49.30,0:01:52.38,Default,,0000,0000,0000,,Or in the other hand, an addiction to special interests, Dialogue: 0,0:01:52.38,0:01:56.91,Default,,0000,0000,0000,,let's call them "incumbents", constantly tempting the government Dialogue: 0,0:01:56.91,0:01:59.30,Default,,0000,0000,0000,,to do something crazy for public policy Dialogue: 0,0:01:59.30,0:02:01.30,Default,,0000,0000,0000,,in the name of benefiting the incumbents. Dialogue: 0,0:02:01.30,0:02:04.18,Default,,0000,0000,0000,,And here, in the United States at least, you can think about Dialogue: 0,0:02:04.18,0:02:08.82,Default,,0000,0000,0000,,just about every major policy issue where this addiction Dialogue: 0,0:02:08.82,0:02:10.58,Default,,0000,0000,0000,,has had its role. Dialogue: 0,0:02:10.58,0:02:12.84,Default,,0000,0000,0000,,Each of these pulling constantly, Dialogue: 0,0:02:12.84,0:02:17.95,Default,,0000,0000,0000,,constantly tempting, always the government is vulnerable. Dialogue: 0,0:02:17.95,0:02:22.27,Default,,0000,0000,0000,,Always, as libertarians insist, it is dangerous Dialogue: 0,0:02:22.27,0:02:25.29,Default,,0000,0000,0000,,because it can always be exploited Dialogue: 0,0:02:25.29,0:02:30.37,Default,,0000,0000,0000,,by one of these two sources at least, Dialogue: 0,0:02:30.37,0:02:35.13,Default,,0000,0000,0000,,the temptations of the incumbents. Dialogue: 0,0:02:35.13,0:02:39.92,Default,,0000,0000,0000,,OK now, the Internet is a platform, Dialogue: 0,0:02:39.92,0:02:41.52,Default,,0000,0000,0000,,it is an architecture, Dialogue: 0,0:02:41.52,0:02:46.02,Default,,0000,0000,0000,,it is an architecture with consequences. Dialogue: 0,0:02:46.02,0:02:48.62,Default,,0000,0000,0000,,It is an architecture that enables innovation, Dialogue: 0,0:02:48.62,0:02:52.52,Default,,0000,0000,0000,,or at least enables a certain kind of innovation. Dialogue: 0,0:02:52.52,0:02:56.45,Default,,0000,0000,0000,,Think of the history of innovation in the Internet. Dialogue: 0,0:02:56.45,0:03:02.36,Default,,0000,0000,0000,,Netscape, started by a drop-out from undergraduate university. Dialogue: 0,0:03:02.44,0:03:04.44,Default,,0000,0000,0000,,Hotmail, started by an Indian immigrant, sold to Dialogue: 0,0:03:04.44,0:03:07.04,Default,,0000,0000,0000,,Microsoft for 400 million dollars. Dialogue: 0,0:03:07.04,0:03:11.82,Default,,0000,0000,0000,,ICQ, started by an Israeli kid and then his father, who was here, Dialogue: 0,0:03:11.82,0:03:14.21,Default,,0000,0000,0000,,selling it to AOL for 400 million dollars. Dialogue: 0,0:03:14.21,0:03:17.18,Default,,0000,0000,0000,,Google, started by two Stanford dropouts. Dialogue: 0,0:03:17.18,0:03:21.02,Default,,0000,0000,0000,,Napster, started by a dropout and someone who Dialogue: 0,0:03:21.02,0:03:22.97,Default,,0000,0000,0000,,hadn't yet been able to be a dropout, Dialogue: 0,0:03:22.97,0:03:24.92,Default,,0000,0000,0000,,sitting on this panel, here, today. Dialogue: 0,0:03:24.92,0:03:28.03,Default,,0000,0000,0000,,Youtube, started by two Stanford students. Dialogue: 0,0:03:28.03,0:03:35.99,Default,,0000,0000,0000,,Kazaa and Skype, started by kids from Denmark and Sweden. Dialogue: 0,0:03:35.99,0:03:38.57,Default,,0000,0000,0000,,And then, of course, Facebook, and Twitter, started by kids. Dialogue: 0,0:03:38.57,0:03:42.03,Default,,0000,0000,0000,,What unites all of these innovations? Dialogue: 0,0:03:42.03,0:03:48.44,Default,,0000,0000,0000,,They were all done by kids, dropouts, and non-americans. Dialogue: 0,0:03:48.44,0:03:50.39,Default,,0000,0000,0000,,Outsiders. Dialogue: 0,0:03:50.39,0:03:54.75,Default,,0000,0000,0000,,Because this is what that architecture invited. Dialogue: 0,0:03:54.75,0:03:58.70,Default,,0000,0000,0000,,It invited outsider innovation. Dialogue: 0,0:03:58.70,0:04:05.60,Default,,0000,0000,0000,,Now, outsider innovation threatens the "incumbents". Dialogue: 0,0:04:05.60,0:04:08.13,Default,,0000,0000,0000,,Skype threatens telephone companies. Dialogue: 0,0:04:08.13,0:04:11.05,Default,,0000,0000,0000,,Youtube threatens television companies. Dialogue: 0,0:04:11.05,0:04:13.42,Default,,0000,0000,0000,,Netflix threatens cable companies. Dialogue: 0,0:04:13.42,0:04:16.74,Default,,0000,0000,0000,,Twitter threatens sanity - Dialogue: 0,0:04:16.74,0:04:18.88,Default,,0000,0000,0000,,not that sanity was ever an incumbent. Dialogue: 0,0:04:18.88,0:04:25.01,Default,,0000,0000,0000,,But then the threatened respond to this threat. Dialogue: 0,0:04:25.01,0:04:30.58,Default,,0000,0000,0000,,By turning to the addict, modern democratic government, Dialogue: 0,0:04:30.58,0:04:34.72,Default,,0000,0000,0000,,and using drug of choice (which in the United States at least Dialogue: 0,0:04:34.72,0:04:37.90,Default,,0000,0000,0000,,is an endless amount of campaign cash), Dialogue: 0,0:04:37.90,0:04:42.56,Default,,0000,0000,0000,,using that drug to secure the protection Dialogue: 0,0:04:42.56,0:04:50.11,Default,,0000,0000,0000,,against these threats that the incumbent faces. Dialogue: 0,0:04:50.11,0:04:54.45,Default,,0000,0000,0000,,Now this was the point that I think president Sarkozy missed yesterday, Dialogue: 0,0:04:54.45,0:04:57.75,Default,,0000,0000,0000,,and the question that Jeff Jarvis raised when he suggested Dialogue: 0,0:04:57.75,0:05:00.19,Default,,0000,0000,0000,,that the principle that should be carried to the G8 Dialogue: 0,0:05:00.19,0:05:03.86,Default,,0000,0000,0000,,is that the government "do no harm". Dialogue: 0,0:05:03.86,0:05:05.69,Default,,0000,0000,0000,,President Sarkozy said, no, but we have important Dialogue: 0,0:05:05.69,0:05:08.85,Default,,0000,0000,0000,,policy issues to resolve. But here is the point. Dialogue: 0,0:05:08.85,0:05:13.26,Default,,0000,0000,0000,,We get that there are "hard policy" issues here. Dialogue: 0,0:05:13.26,0:05:17.39,Default,,0000,0000,0000,,From copyright, to privacy to security to the problem of monopoly. We get it. Dialogue: 0,0:05:17.39,0:05:22.50,Default,,0000,0000,0000,,The point is, is we don't trust the answers the Dialogue: 0,0:05:22.50,0:05:24.36,Default,,0000,0000,0000,,government gives. Dialogue: 0,0:05:24.36,0:05:27.56,Default,,0000,0000,0000,,And for good reasons we don't trust these answers, Dialogue: 0,0:05:27.56,0:05:31.42,Default,,0000,0000,0000,,because on issue after issue, the answer that Dialogue: 0,0:05:31.42,0:05:35.78,Default,,0000,0000,0000,,modern democratic government has given here, Dialogue: 0,0:05:35.78,0:05:39.17,Default,,0000,0000,0000,,is an answer that happens to benefit Dialogue: 0,0:05:39.17,0:05:41.24,Default,,0000,0000,0000,,the incumbents. Dialogue: 0,0:05:41.24,0:05:45.54,Default,,0000,0000,0000,,And ignores an answer that might actually Dialogue: 0,0:05:45.54,0:05:49.07,Default,,0000,0000,0000,,encourage more innovation. Dialogue: 0,0:05:49.07,0:05:51.69,Default,,0000,0000,0000,,So think for example about the matter of copyright. Dialogue: 0,0:05:51.69,0:05:55.24,Default,,0000,0000,0000,,Of course we need a system of copyright Dialogue: 0,0:05:55.24,0:05:58.66,Default,,0000,0000,0000,,that guarantees that creators get compensated Dialogue: 0,0:05:58.66,0:06:01.42,Default,,0000,0000,0000,,and secures their independence to create. Dialogue: 0,0:06:01.42,0:06:05.39,Default,,0000,0000,0000,,No one serious denies that we have to have Dialogue: 0,0:06:05.39,0:06:08.15,Default,,0000,0000,0000,,that system of protection. Dialogue: 0,0:06:08.15,0:06:12.63,Default,,0000,0000,0000,,The question is not whether copyright should be protected. Dialogue: 0,0:06:12.63,0:06:16.28,Default,,0000,0000,0000,,The question is how to protect copyright Dialogue: 0,0:06:16.28,0:06:17.56,Default,,0000,0000,0000,,in a digital era. Dialogue: 0,0:06:17.56,0:06:19.86,Default,,0000,0000,0000,,Whether the architecture of copyright, Dialogue: 0,0:06:19.91,0:06:22.07,Default,,0000,0000,0000,,built for the XIX century, Dialogue: 0,0:06:22.18,0:06:25.01,Default,,0000,0000,0000,,continues to make sense in the XXI. Dialogue: 0,0:06:25.01,0:06:30.56,Default,,0000,0000,0000,,And what is the architecture that would make sense in the XXI? Dialogue: 0,0:06:30.56,0:06:36.62,Default,,0000,0000,0000,,Now, is this the question the government is asking? Dialogue: 0,0:06:36.62,0:06:38.64,Default,,0000,0000,0000,,I think the answer to that is no. Dialogue: 0,0:06:38.64,0:06:42.91,Default,,0000,0000,0000,,Instead, what the government is proposing, Dialogue: 0,0:06:42.91,0:06:45.52,Default,,0000,0000,0000,,around the world, specially here, Dialogue: 0,0:06:45.61,0:06:47.98,Default,,0000,0000,0000,,and I apologize to my colleagues from France, Dialogue: 0,0:06:47.98,0:06:49.81,Default,,0000,0000,0000,,but this is a technical legal term. Dialogue: 0,0:06:49.81,0:06:54.64,Default,,0000,0000,0000,,The proposal suggested here is a "brain-dead" Dialogue: 0,0:06:54.64,0:07:00.99,Default,,0000,0000,0000,,3-strikes proposal that happens to benefit incumbents. Dialogue: 0,0:07:01.11,0:07:05.51,Default,,0000,0000,0000,,Ignoring the potential of innovation that could come from Dialogue: 0,0:07:05.62,0:07:07.99,Default,,0000,0000,0000,,a new architecture for securing copyright. Dialogue: 0,0:07:07.99,0:07:11.43,Default,,0000,0000,0000,,And you don't have to take my view for this. Dialogue: 0,0:07:11.43,0:07:14.52,Default,,0000,0000,0000,,The recent report from the conservative government in Britain, Dialogue: 0,0:07:14.52,0:07:17.56,Default,,0000,0000,0000,,the Hargreaves report, says of copyright: Dialogue: 0,0:07:17.56,0:07:20.20,Default,,0000,0000,0000,,"Could it be true that laws designed more than three centuries Dialogue: 0,0:07:20.20,0:07:23.62,Default,,0000,0000,0000,,ago with the express purpose of creating economic Dialogue: 0,0:07:23.62,0:07:25.20,Default,,0000,0000,0000,,incentives for innovation, Dialogue: 0,0:07:25.20,0:07:27.87,Default,,0000,0000,0000,,by protecting creators' rights Dialogue: 0,0:07:27.87,0:07:31.33,Default,,0000,0000,0000,,are today obstructing innovation and economic growth?" Dialogue: 0,0:07:31.33,0:07:33.51,Default,,0000,0000,0000,,The short answer is: "yes". Dialogue: 0,0:07:33.51,0:07:37.92,Default,,0000,0000,0000,,"In the case of copyright policy, there is no doubt Dialogue: 0,0:07:37.92,0:07:40.27,Default,,0000,0000,0000,,that the persuasive powers of celebrities and Dialogue: 0,0:07:40.27,0:07:42.19,Default,,0000,0000,0000,,important UK creative companies Dialogue: 0,0:07:42.19,0:07:44.82,Default,,0000,0000,0000,,have distorted policy outcomes." Dialogue: 0,0:07:44.82,0:07:48.37,Default,,0000,0000,0000,,And not just, I suggest, in the UK. Dialogue: 0,0:07:48.37,0:07:50.81,Default,,0000,0000,0000,,Think about the question of broadband policy. Dialogue: 0,0:07:50.81,0:07:53.48,Default,,0000,0000,0000,,Europe, has actually been quite successful, Dialogue: 0,0:07:53.48,0:07:57.10,Default,,0000,0000,0000,,in pushing competition in broadband, Dialogue: 0,0:07:57.10,0:07:59.89,Default,,0000,0000,0000,,and therefore pushing broadband growth. Dialogue: 0,0:07:59.89,0:08:05.67,Default,,0000,0000,0000,,The US has been a dismal failure in this respect. Dialogue: 0,0:08:05.67,0:08:09.45,Default,,0000,0000,0000,,As we watch the US going from number 1 in broadband penetration, Dialogue: 0,0:08:09.45,0:08:12.17,Default,,0000,0000,0000,,now to, depending on the scale, Dialogue: 0,0:08:12.17,0:08:15.49,Default,,0000,0000,0000,,number 18, 19, or 28. Dialogue: 0,0:08:15.49,0:08:19.23,Default,,0000,0000,0000,,And that change is because of policies that Dialogue: 0,0:08:19.23,0:08:21.95,Default,,0000,0000,0000,,effectively block competition Dialogue: 0,0:08:21.95,0:08:25.41,Default,,0000,0000,0000,,for broadband providers. Dialogue: 0,0:08:25.41,0:08:28.56,Default,,0000,0000,0000,,Their answer, these broadband providers brought to Dialogue: 0,0:08:28.56,0:08:30.84,Default,,0000,0000,0000,,our government, and got our government to impose Dialogue: 0,0:08:30.84,0:08:36.06,Default,,0000,0000,0000,,actually benefited them and destroyed the incentives Dialogue: 0,0:08:36.06,0:08:38.41,Default,,0000,0000,0000,,for them to compete in a way that would drive Dialogue: 0,0:08:38.41,0:08:41.84,Default,,0000,0000,0000,,broadband penetration. Dialogue: 0,0:08:41.84,0:08:44.03,Default,,0000,0000,0000,,I think in light of these examples, Dialogue: 0,0:08:44.03,0:08:47.65,Default,,0000,0000,0000,,it is completely fair to be skeptical Dialogue: 0,0:08:47.70,0:08:50.79,Default,,0000,0000,0000,,of the anwer modern democratic governments give. Dialogue: 0,0:08:50.91,0:08:53.45,Default,,0000,0000,0000,,We should say to modern democratic government, Dialogue: 0,0:08:53.50,0:08:59.89,Default,,0000,0000,0000,,you need to beware of incumbents bearing policy fixes. Dialogue: 0,0:08:59.89,0:09:02.21,Default,,0000,0000,0000,,Because their job, the job of the incumbents, Dialogue: 0,0:09:02.21,0:09:06.67,Default,,0000,0000,0000,,is not the same as your job, the job of the public policy maker. Dialogue: 0,0:09:06.67,0:09:10.34,Default,,0000,0000,0000,,Their job is profit for them. Dialogue: 0,0:09:10.34,0:09:12.26,Default,,0000,0000,0000,,Your job is the public good. Dialogue: 0,0:09:12.26,0:09:15.65,Default,,0000,0000,0000,,And it is completely fair, for us to say, Dialogue: 0,0:09:15.65,0:09:19.51,Default,,0000,0000,0000,,that until this addiction is solved, we should Dialogue: 0,0:09:19.51,0:09:23.15,Default,,0000,0000,0000,,insist on minimalism in what government does. Dialogue: 0,0:09:23.15,0:09:26.15,Default,,0000,0000,0000,,The kind of minimalism Jeff Jarvis spoke off when he Dialogue: 0,0:09:26.15,0:09:28.54,Default,,0000,0000,0000,,spoke of "do no harm". Dialogue: 0,0:09:28.54,0:09:32.26,Default,,0000,0000,0000,,An internet that embraces principles of open and free Dialogue: 0,0:09:32.26,0:09:35.95,Default,,0000,0000,0000,,access, a neutral network to guarantee Dialogue: 0,0:09:35.95,0:09:41.20,Default,,0000,0000,0000,,this open access, to protect the outsider. Dialogue: 0,0:09:41.20,0:09:44.66,Default,,0000,0000,0000,,But here is the one think we know about this meeting, Dialogue: 0,0:09:44.66,0:09:48.84,Default,,0000,0000,0000,,and its relationship to the future of the internet. Dialogue: 0,0:09:48.84,0:09:50.92,Default,,0000,0000,0000,,The future of the internet is not Twitter, Dialogue: 0,0:09:50.92,0:09:53.78,Default,,0000,0000,0000,,it is not Facebook, it is not Google, Dialogue: 0,0:09:53.78,0:09:57.12,Default,,0000,0000,0000,,it is not even Rupert Murdoch. Dialogue: 0,0:09:57.12,0:10:01.35,Default,,0000,0000,0000,,The future of the internet is not here. Dialogue: 0,0:10:01.35,0:10:05.62,Default,,0000,0000,0000,,It wasn't invited, it does not even know how to be invited, Dialogue: 0,0:10:05.62,0:10:09.64,Default,,0000,0000,0000,,because it doesn't yet focus on policies and fora like this. Dialogue: 0,0:10:09.64,0:10:14.47,Default,,0000,0000,0000,,The least we can do is to preserve the architecture Dialogue: 0,0:10:14.47,0:10:17.69,Default,,0000,0000,0000,,of this network that protects this future Dialogue: 0,0:10:17.80,0:10:19.42,Default,,0000,0000,0000,,that is not here. Dialogue: 0,0:10:19.56,0:10:21.100,Default,,0000,0000,0000,,Thank you very much.