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    #153 - Cory Doctorow and Joe Betts-LaCroix

    en-usNovember 27, 2019

    Podcast Summary

    • Historical examples of adversarial interoperabilityAdversarial interoperability played a crucial role in technology's history, with Microsoft and Apple using it to level the playing field and make non-dominant systems first-class citizens, despite limited legal recourses for dominant firms.

      Adversarial interoperability, the practice of connecting systems without permission from the original creators, has played a crucial role in the history of technology. This concept was exemplified by the actions of Microsoft and Apple in the past, with Microsoft's proprietary networking protocol, SMB, being replicated and open-sourced as SAMBA, and Apple reverse engineering Microsoft's file formats to create the iWork Suite. These instances of adversarial interoperability were significant in leveling the playing field and making non-dominant systems first-class citizens. However, it's important to note that during these times, legal recourses for dominant firms were limited, with software patents being rare and the Computer Fraud and Abuse Act not yet extended to cover terms of service violations.

    • Legal Challenges to Adversarial InteroperabilityDominant firms use legal tools to maintain monopolies, but the sustainability of this approach is uncertain as people seek alternatives and platforms struggle to address peripheral use cases.

      The current legal landscape surrounding adversarial interoperability, which involves making compatible products with dominant firms, is filled with challenges such as software patents, Digital Millennium Copyright Act claims, terms of service violations, and tortious interference. These legal tools have allowed dominant firms to maintain their dominance not by making better products but by creating a legally fraught environment that discourages competition. However, the sustainability of this thicket is questionable as people are increasingly seeking alternatives to the monopolies, and the inability of these platforms to address peripheral use cases may lead to a crisis. The ethos of hacking and adversarial interoperability, as demonstrated by the success story of Mint, may continue to challenge the status quo despite the legal risks.

    • The Intersection of Law and Social NormsUnderstanding the relationship between law and social norms can help businesses navigate legally gray areas and potentially be on the right side of history. Creators must stay informed of copyright rules and adapt to changing social norms to succeed.

      The intersection of law and social norms plays a significant role in the success and acceptance of businesses, especially those operating in legally gray areas. Legal frameworks establish rules and regulations, while social norms determine what is socially acceptable. Companies that can create a constituency for a normative shift and use their surplus capital to fund legal efforts can ride the wave of change and potentially be on the right side of history. For creators, understanding the importance of copyright and the evolving rules of their industry is crucial for their livelihood and the success of their work. However, it's essential to be skeptical of applying industrial rules to non-industrial contexts and to recognize the importance of adapting to changing social norms.

    • Adapting Regulations for the Digital AgeTraditional regulations need to be revised to account for digital content's mass replication and distribution, and the changing economic landscape. Copyright law's application to personal use or civic and political discourse creates unnecessary complexities and potential legal issues.

      Our current regulatory frameworks, such as those related to banking and copyright law, may not be adaptable to the digital age and the new realities it brings. The speaker argues that the tests used to determine who falls under these regulations need to be revised to account for the mass replication and distribution of digital content, as well as the changing economic landscape. The internet's inherent nature of making copies and the ease of access to information challenge traditional notions of ownership and control. Applying copyright law to personal use or civic and political discourse, for example, creates unnecessary complexities and potential legal issues for individuals. The speaker suggests that we need to reconsider the foundational principles of our regulatory frameworks and adapt them to the digital age to ensure they remain effective and equitable for all.

    • Balancing copyright and free expressionCopyright reform should focus on distinguishing between industrial and non-industrial uses, prioritizing free expression for non-industrial uses, and combining European exceptions with American principles-based approach.

      Copyright reform should focus on distinguishing between industrial and non-industrial uses of intellectual property, rather than expecting everyone outside the entertainment industry to prioritize copyright issues. Industrial use, such as publishing for profit, should have clear rules, but these rules should err on the side of free expression. Non-industrial uses, like fanfic or educational sharing, should generally be considered fair use. The Supreme Court has shown that fair use principles can effectively protect transformative works, even if they are commercial. The goal should be to combine the enumerated exceptions of European copyright law with the principles-based approach of American copyright law, creating a system that provides clarity for borderline cases while allowing for flexibility in the face of technological change. Ultimately, the role of judges and lawmakers is crucial in navigating the complexities of copyright law and ensuring that it evolves to meet the needs of creators and consumers alike.

    • The struggle of laws and regulations to keep pace with technologyAs technology evolves, laws and regulations must balance protecting the public and allowing for innovation and creativity to flourish, while avoiding attempts to control technology and innovation that can hinder progress

      As technology evolves, the laws and regulations surrounding it often struggle to keep pace. This was seen with the evolution of recorded music and the resistance from those in the sheet music industry. Similar issues are arising with deep fakes and the need for principles and norms to determine when their use is good or bad. However, it's important to allow for some freedom and flexibility, as the future is uncertain and what may be seen as legitimate artistic expression today could be considered piracy or harmful in the future. The history of monopolies, such as the Bell System, shows that attempts to control technology and innovation can hinder progress and hold back the next generation of technology. It's crucial for laws and regulations to strike a balance between protecting the public and allowing for innovation and creativity to flourish.

    • The risk of entrenching tech monopolies through regulationRegulation could make it harder for new competitors to disrupt the market, as established players become more entrenched and investment climate remains risk-averse.

      The call for regulation in the tech industry could lead to the entrenchment of tech monopolies, creating a formidable barrier for new competitors. Regulators, often former executives, may end up becoming aristocrats, dictating how these companies should exercise their power towards the public. This state-like framework makes it difficult to break up these monopolies, as they are entrusted with important duties that only large-scale entities can perform. Additionally, the long-term consequences of regulation could make it harder for new founders to disrupt the market, as the established players become even more entrenched. The risk-averse investment climate further exacerbates this issue. It's essential to consider the potential unintended consequences of regulation and the long-term impact on competition and innovation in the tech industry.

    • Anticipating user behavior and ensuring equilibrium in virtual economiesConsider potential unintended consequences of virtual worlds, anticipate user behavior, and provide solutions for equilibrium in virtual economies. Be aware of risks of relying on centralized platforms and explore alternatives for sensitive communities. Entrepreneurs can identify specific user needs and create successful businesses.

      While designing virtual worlds or online platforms, developers must consider the potential unintended consequences of their systems and provide solutions for users who may exploit or misuse them. The example given was from EverQuest, where a player could craft shirts to the point of depleting all the sheep in the game. This issue highlights the importance of anticipating user behavior and ensuring equilibrium in virtual economies. Additionally, the discussion touched upon the potential risks of relying on centralized platforms like Facebook for sensitive communities. The lack of privacy and control over data can lead to negative consequences for users. In response, alternative platforms that prioritize user privacy and security can provide a viable solution for these communities. Furthermore, the conversation emphasized the potential for entrepreneurs to capture a portion of a large market and create successful businesses, even if it's a small percentage of a larger market. The example of someone wanting to create a Facebook-like platform for medical support groups illustrates the opportunity to provide a solution for a specific need and attract a significant user base. In summary, the key takeaway is the importance of anticipating user behavior and ensuring equilibrium in virtual economies, as well as the potential risks of relying on centralized platforms and the opportunity for entrepreneurs to create successful businesses by addressing specific user needs.

    • Targeted advertising doesn't control minds or beliefsDespite claims, targeted ads don't manipulate beliefs or voting patterns, but they can improve conversion rates for low consumer frequency industries.

      While targeted advertising through platforms like Facebook can significantly improve conversion rates for industries with low consumer frequency, such as refrigerator sales, it does not equate to mind control or the ability to manipulate people's beliefs or voting patterns. The idea that Cambridge Analytica or similar entities had such power is largely based on unproven claims and junk science. The rise in vulnerability to conspiracy theories may be due to the fact that people are more exposed to them in today's information age, rather than algorithms specifically targeting these individuals. YouTube's recommendation system may contribute to the spread of conspiracy theories by suggesting increasingly extreme content, but it does not create the same level of belief or commitment as more deliberate manipulation. Ultimately, it is important to critically evaluate sources of information and be aware of the potential for biased or misleading content.

    • Market concentration and industry collusionBe aware of market concentration and industry collusion, and critically evaluate sources of information to distinguish truth from falsehood

      Market concentration and industry collusion have led to conspiratorial thinking and the suppression of competition in various sectors, including tech and cable industries. The collective action problem becomes insoluble when there are too many players involved, making it easy for a few dominant players to agree on mutually beneficial policies in secret. This trend is contributing to an epistemological crisis, making it increasingly difficult to distinguish truth from falsehood. Historically, we relied on established processes for determining truth, such as regulators, experts, and academic institutions. However, in today's world, where information is abundant but not always trustworthy, individuals are encouraged to "hack" and research things on their own. While this can be effective, it's not a sustainable solution as no one can know everything about everything. Therefore, it's essential to be aware of the potential for industry collusion and market concentration and to critically evaluate the sources of information we rely on.

    • Powerful interests influencing the pursuit of truthPowerful interests can manipulate regulations, raising ethical dilemmas and concerns for public health and safety

      The pursuit of truth can be influenced by powerful interests, leading to ethical dilemmas and potential manipulation of regulations. Using the example from West Virginia, Dow Chemical's lobbying efforts resulted in a question about relaxing chemical waste standards in drinking water, which raises concerns about public health and safety. This situation highlights the potential for the rule of law to be overshadowed by the rule of man, where trust in the system and its processes is eroded. The speaker also touches upon the idea that those with power and resources can manipulate the system to their advantage, leaving individuals uncertain about their safety and well-being. The overall message is a call for increased transparency and accountability in regulatory processes and the importance of maintaining trust in the systems that govern our lives.

    • The Evolution of Conspiracy Theories and the Role of Science FictionThe way people spread and consume conspiracy theories has changed, with disinformation proliferating due to eroded media credibility. Science fiction, which both predicts and shapes the future, reminds us that it's not fixed and that we have the power to change it.

      The way people express and consume conspiracy theories has evolved over time, with a shift from letters to the editor to digital platforms. The credibility of information sources has been eroded due to market concentration and corruption, leading to a proliferation of disinformation and mistrust in traditional media. Meanwhile, the future, as depicted in science fiction, is becoming increasingly relevant to our present reality. Science fiction not only predicts the future but also shapes it through creativity and innovation. It's essential to believe that the future is not fixed but up for grabs, and that something different can always happen. Despite some inevitable parameters, the future remains open to change.

    • Science fiction shapes the future by providing a menu of options for innovators and reflecting societal hopes and fears about technology.Exploring science fiction can inspire new ideas, help avoid derivative thinking, and reflect the collective hopes and fears of the world. Understanding pressing issues and creating platforms for change requires addressing both the problem's existence and potential solutions.

      Science fiction plays a significant role in shaping the future by providing a menu of options for innovators and influencing societal hopes and fears about technology. Science fiction books offer insights into writers' visions for the future, and when these books gain popularity, they reflect the collective hopes and fears of the world. For founders, exploring science fiction can inspire new and innovative ideas, helping them avoid derivative thinking. In the near term, understanding and addressing pressing issues like climate risk and data security requires convincing people of both the problem's existence and the potential for a solution. Platforms that connect people with similar beliefs can be powerful tools for change, but they also come with risks. By recognizing the impact of science fiction and harnessing its power, we can create a more innovative and sustainable future.

    • The internet connects marginalized communities and unconventional ideas, acting as a catalyst for societal change.The internet empowers marginalized communities and unconventional ideas, providing opportunities for entrepreneurs to address societal needs and inspiring pluralistic solutions during times of crisis.

      The internet provides a platform for marginalized communities and unconventional ideas to connect and build support, acting as a catalyst for bringing non-mainstream concepts into the wider world. The pressure and indifference towards these ideas create opportunities for entrepreneurs to identify and address societal needs. We are currently at a tipping point regarding climate change, and individuals have the power to choose whether to pursue nihilistic approaches or pluralistic solutions. Science fiction, rather than depicting a dystopian future, can serve as a warning for the potential failure of complex systems and inspire us to plan for graceful failure and recovery. During times of crisis, people often come together and help each other, demonstrating the potential for community and cooperation.

    • Building for resilience and recovery during disruptionFocus on resilience and recovery during disasters or disruptions, prioritize public interest, and navigate complex legal landscapes for data scraping and platform disruptions.

      During times of disaster or disruption, it's essential to focus on building for resilience and recovery rather than waiting for others to rebuild. This was evident during the San Francisco earthquake, where the community came together to help each other, despite General Funston's misconceptions. Similarly, in the tech industry, companies that disrupt big platforms and prioritize public interest over firm parochial interests may find themselves on the right side of public sentiment and lawmakers. However, navigating the legal landscape around data scraping and platform disruptions can be complex. The Computer Fraud and Abuse Act, which has been used to prosecute companies for violating terms of service, is a contentious issue, and legislative clarity is needed. Companies like Power Ventures and High Q have faced legal challenges for scraping data from LinkedIn and Facebook, but recent court rulings have sided with the scrapers, emphasizing the importance of pro-competitive practices. Overall, understanding the potential future market for resilience and recovery, as well as the evolving legal landscape, is crucial for businesses and individuals alike.

    • Unpredictable Ninth Circuit rulings in tech industryJudges' views on new market entrants vs tech giants vary. Adversarial interoperability, or scraping data, allows new entrants to disrupt incumbents without user abandonment, aligns with startup community, and could lead to legislative clarity.

      The Ninth Circuit's rulings in the tech industry can be unpredictable due to its location in the tech and entertainment hub of California. Some judges support new market entrants, while others support established tech giants. However, there's a growing opportunity for companies to engage in "adversarial interoperability," or scraping data from larger platforms, following a recent court decision. This approach, inspired by the history of cable TV, allows new entrants to disrupt incumbents without asking users to completely abandon one platform for another. This approach aligns with the hacker spirit of the startup community and could lead to more legislative and legal clarity, as well as a better public understanding of the legitimacy of scraping. If you're a founder considering this approach, be prepared to face opposition from investors who have stakes in companies that could be disrupted. To learn more about this concept and the person behind these ideas, visit Corey Doctorow's personal site (craphound.com), listen to his podcasts, or follow him on Twitter (@doctorow).

    • Important lessons from successful startup foundersFocus on a specific problem, be customer-focused, iterate quickly, have a clear vision, communicate effectively, pivot when necessary, build a strong team, foster innovation, stay patient, and stay focused on the long-term vision.

      The founders of successful startups often face similar challenges and make important decisions during their early stages. In this episode of the Y Combinator podcast, we heard from three founders who shared their experiences and insights. First, we learned from the founder of Aptible about the importance of focusing on a specific problem and building a product that solves it well. He also emphasized the value of being customer-focused and iterating quickly based on feedback. Next, we heard from the founder of Notion about the importance of having a clear vision and communicating it effectively to team members and investors. She also shared her experience of pivoting the business model and the importance of staying adaptable. Lastly, we heard from the founder of Ginkgo Bioworks about the importance of building a strong team and creating a culture that fosters innovation and growth. He also emphasized the importance of being patient and staying focused on the long-term vision. Overall, the common theme among these founders was the importance of perseverance and adaptability in the face of challenges. They all emphasized the importance of staying focused on the core mission and being willing to pivot when necessary. By learning from their experiences, aspiring founders can gain valuable insights and insights into what it takes to build a successful startup.

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