Digital symbiosis and a
Widening New Digital Divide
These patterns continue today with
new platforms. Apple (the computer
company, not the record label) leveraged the development of the first
broadly licensed online music store
(i Tunes) to great success in the markets for portable music devices (iPods,
iPhones, iPads, and a growing family of
consumer electronics) as well as music
and now television and film programming. Google has used You Tube and
Google Books to enhance and expand
its advertising platform. YouTube’s
ContentID and Partner Program, under
which many copyright owners pre-clear
and derive advertising revenue from
use of their content, leverages professional content to expand Google’s
family of services. Over 3,000 content
owners participate in Google’s revenue-sharing model. Facebook leverages
music streaming services—such as
Spotify—to enrich its social networking
platform. Microsoft’s Xbox, Netflix, and
a host of other technology platforms
develop and expand the symbiotic
pathways that bind technology innovators and content creators. Sony’s recent
effort to enter the smartphone industry
seeks to integrate devices, music, video, and game content seamlessly.
Yet the principal technology and
content sectors are deeply divided on
how to address the widespread availability of unauthorized copies of copyrighted works on the Internet. The
vertical fragmentation of distribution
platforms in the Internet age has created a wedge between platform innovators and creative industries that
hinders e-symbiosis. Whereas broadcasters historically hosted content
and hence bore direct responsibility
for infringement, Internet platforms
attenuate responsibility. For example,
Google profits from advertising impressions and click-through monetization via its search engine and AdSense
network that derive from Web sites
distributing copyrighted works without authorization. Although Google
might be insulated from liability so
long as it complies with the Digital
Millennium Copyright Act’s (DMCA)
takedown procedures, its bottom line
benefits handsomely from delivering
advertisements to people searching
for pirated content. The same can be
said for payment processors working
for Web sites distributing copyrighted
works without authority.
The major content industries—
music, film, books, as well as some
video game manufacturers—have
called upon Congress to enact strict
new enforcement tools—such as do-
main name blocking, expanded pub-
lic enforcement powers, and broader
private rights of action—to combat
piracy of their works on foreign Web
sites. The major Internet companies
have strongly opposed these measures
on the grounds that they would un-
dermine the Internet’s functioning,
compromise cybersecurity, and ham-
per free expression. They also contend
that these measures could be eas-
ily circumvented. At a minimum, such
measures could substantially increase
the screening costs of advertising net-
works and payment processors.