Category: Innovation

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Radio Shack – Will 3D Printing Help It Reach 100? Maybe RS Will Be MakerLabs at Scale

Few companies last more than 50 years. The 100 year mark is even rarer. IBM stands out as a company that has done that. But who knew that Radio Shack is nearing that mark? And some are noting its possible death knell, because of the recent announcement that it is closing about 1,100 stores. The pundits have gone over the mistakes and decried Radio Shack’s inability to play n the modern tech space. I think there is hope and mistake.

Radio Shack appealed to techies. It needs to return to that. My dad made me read the basics of stereos before I could get his old stereo. It was a Radio Shack book. Mobile phones and the like are not for hobbyists. Radio Shack has been at its best helping folks who want to deal with early tech that is tipping consumer. Radios, hi-fi stereos, wires, circuits, transistors, early computers (some might recall when folks took them apart and played with them).

Given my focus on 3D printing I may be biased. Heck. Sure. I am biased. But I am pretty certain RS could re-invigorate itself if it hires relatively savvy people to help with the next wave of home tech. As Nest, 3D printing, and more mean we are automating and tinkering, RS could be a great source for parts and knowledge where no one is competing. (Unlike the mobile market). That is where RS thrives. Of course when I went to one and knew more about speaker wire than the floor person, it was clear RS has lost its way. But there’s a time to reap and sow. Now is the time to sow. RS could be a place for drone, maker, and other tech hobbyists/enthusiasts. The core community is used to online discussions and help. But as the tech goes mainstream there is a gap between I dig it but need help and brainless consumer purchase. RS should embrace that. That is value many consumers who are starting to play with this technology would love. Or at least I would.

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3D Printing, Maybe It Is Magic

More and more 3D printing seems like it’s magic. In Patents, Meet Napster: 3D Printing and the Digitization of Things Gerard and I explain that it is not quite magic yet. And our argument is that the law can perhaps make sure the technology has a chance to reach a magical stage. That said each day we wrote a new report made me wonder at how quickly the technology is moving.

Forbes reports that a jewelry company is using 3D printing and Google Earth to print $250,000 jewelry. A couple weeks ago UC Hastings put on a Symposium to Illuminate Legal Issues Posed by 3D Printing Technology. I spoke and had a great time meeting more folks interested in the technology and in seeing it thrive. Mark Lemley gave the key note and is poking at many ideas that resonate with me and my work. He spoke about how technology is changing scarcity and will affect labor. The Forbes piece captures the shift:

Shoppers can completely customize their own design and have the finished product delivered in 3 or 4 days. “We’ve had a great deal of difficulty competing with cheap labor overseas,” said Bakhash, whose father Charlie founded American Pearl in New York’s diamond district in 1950.

“Now, with the advent of our platform, we’re no longer taking off-the-shelf parts and welding. There’s no jeweler at a bench with a blowtorch. The cost and labor savings is phenomenal. And we’re empowering consumers to make jewelry in real-time.”

The process starts on AmericanPearl.com, or its sister site AmericanDiamondShop.com, where a customer is able to create a unique piece, whether a $400 pair of earrings or a necklace that goes for six figures.

The Maker movement and the new wave of customized things is fascinating and exciting. But it may be that the hand-crafted, Etsy moment will be short-lived and the automated, design and print world will take over. I think that the result will be a hybrid. Folks will use the tech to produce more and to make customized goods for less cost. Some labor will be eliminated. Some labor such as design will be valuable. But just like the shifts in copyright, we will see strange and large shifts in who makes money and how it is made. Then again not all of us can be poets and also eat. More on that in another post.

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3D Printing Train Continues, Interview on TakePart Live tonight

I will be on TakePart Livetonight at 9 p.m. Pacific/11 Central/12 Eastern, to talk about 3D printing and all the fun it brings. I will be joined by a 3D printer entrepreneur who runs Deezmaker, a comic, and of course the hosts Jacob Soboroff and Cara Santa Maria. I was on the show last fall to talk about privacy and data hoarding. The hosts and crew are HuffPo veterans and a blast. The show is part of Pivot TV, which is available on DirectTV and Dish as well as some cable carriers. Looking forward to great night.

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Driverless Irony and Maybe Car Drone Drivers Coming Soon

Assumptions can break models and render rules incoherent. Some states such as California have required that a driverless or autonomous vehicle still have a licensed driver at the wheel in case the systems fail. A friend noted that this idea is useful in the rare case the vehicle encounters a situation it cannot handle. The idea may work today. It won’t work in the future.

What happens when the next generation is raised on driverless cars? Today we can assume that drivers have enough hours behind the wheel so that they might be able to take over if need be. But in five or ten years, what exactly will driver’s ed look like? Would we require youthful drivers, somewhat dangerous based on lack of experience, to drive more? That seems to defeat the upside to the technology. Yet if a generation of drivers never really drives, how can we expect them to take over for a sophisticated system pressed beyond its capabilities? As with pilots we might use simulators and such. Yet how many hours of that will be needed? Would it test the moments when the car cannot handle the situation? These points remind of the early days of Westlaw and Lexis. When I was in school, we were required to use analog research to start. The idea was that we may be without a terminal or access to legal databases. This problem would arise in courthouses. It was true at the time, but a few years later, the Internet and web based access negated that idea. There may still be some training on the old ways, but how much anyone needs or uses them is unclear. With cars, there will be a gap period when some will have the systems and some won’t. But at some point, I’d guess that most cars will have the system, and/or fewer people will own cars at all. Many may subscribe to services instead of owning a vehicle. Driving by hand will be a special art for the rich and old schoolers as they head to stores that sell LPs.

So what may be the supercool solution? Like Onstar, a car maker may have a group of drone operators for the outlier problems. If a car fails, a signal is sent. A video game junkie, err drone expert, takes over to handle the vehicle by remote. That person is training on cars and drone operation of them all the time. They have the expertise to take over when needed. Yes, you may cue the creepy music at this point.

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Public Domain? We ain’t got no Public Domain. We don’t need no Public Domain! I don’t have to show you any stinkin’ Public Domain!

With apologies to B. Traven and John Huston, I note that Duke’s Center for the Public Domain has a nice post about what might have been in the public domain. In my paper The Life and Death of Copyright, I go over how a few authors rallied with American interests to extend copyright term. I also show that no matter which of the main theories one looks to for IP, none supports copyright after death. None.

In other words, folks who usually disagree about all sorts of nuances in copyright, (It’s labor! It’s the personhood! It’s utilitarian!) converge on, or at least have no good support for copyright after death. Paul Heald’s work shows that the dreaded under-production myth is just that, a myth. Aram Sinnreich’s The Piracy Crusade just came out and gets into the problems with locking up work. I’ve just started it, but his run through history, sociology, and more looks to be a great addition to the literature in this space.

So it’s a new year. Old fights are with us. New ones will come. The sun also rises. Time for naked lunch.

(Note: Burroughs claimed the phrase, Naked Lunch, meant a “frozen moment when everyone sees what is on the end of every fork.” or the truth albeit ugly).

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Google Books and the Social (Justice) Contract

In channeling Judge Baer, Judge Chin at long last dropped the other shoe in the judicial effort to bring new information technology uses for copyrighted works fully in to the copyright regime. Congress has been slow to address the challenge of tapping the full copyright social utility/justice potential of these advances and it’s been left to the courts to sort it all out in the context of individual adversarial conflicts. Poignantly, when Jonathan Band asks “What [was] the Authors Guild fighting for?”, he also illustrates the tree-myopic/forest blind nature of the Guild’s position. What the Guild failed to see is that property rights fit into a larger socio-legal system: Yes your neighbor is precluded from trespassing on to your land but your ability to engage in whatever “private” activity strikes your fancy while thereon is limited by the legal system as a whole. Your land is individual private property, not an independent sovereign state.

 

Judge Baer reminded rights holders of this aspect of the social contract and now Judge Chin has made it clear to the Guild that this is not some narrow, eccentric application of copyright social utility. Property rights, including copyrights, exist to advance society, and to state the obvious, information technology has evolved our society. Like all other rights, customs, and expectations, however, whereas some aspects of copyright as previously envisioned fit comfortably into our new configuration others don’t fit at all. And when that ill-fit impedes important social progress modifications must be made, and if necessary, expectations altered.

 

The courts’ reasoning in both Hathitrust and Google Books moves fair use jurisprudence further toward the express consideration of copyright social justice in the application of the doctrine. As Kevin Smith notes, the judges in both cases have seized this opportunity to retrofit fair use, and it seems to me that these decisions push beyond questions of aesthetic and even functional transformation and pave the way for weighing social transformation in assessing the first fair use factor. I have also applied some of the legal conclusions drawn from Bill Graham Archives and other Grateful Dead archive projects to specific copyright social justice needs, for example, that of socially beneficent access to the literature of the Harlem Renaissance. Like some other historically and culturally important works, many of these books enjoy only marginal commercial market value and similar to the information harvested through data mining, “digital fair use” may be the only means by which to return these works to the general public. The social resuscitation of significant works through mass-digitization, and other uses that serve important and otherwise unattainable copyright social objectives, should be considered a purpose that satisfies the first fair use factor.

 

Authors and other copyrights holders would do well to finally get ahead of the information technology curve. The Authors Guild’s mistake was not so much in the effort to preserve what they considered to be their property rights or even in the effort to extract every conceivable drop of revenue out those rights, but rather, in failing to accept that in order for these rights to retain any value they must function as part of a thriving societal system or eventually forfeit the basis for legal recognition. In the analog world, the public’s access to most books remains largely dependent upon the vagaries of the commercial marketplace. Digital information technology has presented the opportunity to compile the world’s books toward the creation of global libraries accessible to every human being on a socially equitable basis. To believe that analog social inequity will be permitted to endure indefinitely in the face of digital information possibilities is simply unrealistic. Keeping in mind that the stimulation, perpetuation, and re-ignition of the cultural expression/dissemination/inspiration combustive cycle is the raison d’etre of copyright will enable authors to embrace digital change and as Gil Scott Heron sang, possibly even direct the change rather than simply be put through it.

 

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More Patent Fun, New York Times and another DC event

My paper with Gerard Magliocca made the New York Times in a piece called “Beyond 3-D Printers’ Magic, Possible Legal Wrangling,” and the fun continues. With patent reform on the table (pdf to the bill), the New America Foundation is holding a conference called Just How Broken Is the Patent System?. I will be on the kick-off panel with my friend Adam Mossoff. After some jousting over patents, property, and more with the help of Annie Lowery, the day will turn to industry folks, policy wonks, and more professors, to get into health and patents, green innovation, patent assertion, fixes to the patent system, and a keynote by Maureen K. Ohlhausen, Commissioner, Federal Trade Commission.

It promises to be a fun day. Hope to see folks there.

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The Dualities of Freedom and Innovation

What a rollercoaster week of incredibly thoughtful reviews of Talent Wants to Be Free! I am deeply grateful to all the participants of the symposium.  In The Age of Mass Mobility: Freedom and Insecurity, Anupam Chander, continuing Frank Pasquale’s and Matt Bodie’s questions about worker freedom and market power, asks whether Talent Wants to Be Free overly celebrates individualism, perhaps at the expense of a shared commitment to collective production, innovation, and equality. Deven Desai in What Sort of Innovation? asks about the kinds of investments and knowledge that are likely to be encouraged through private markets versus. And in Free Labor, Free Organizations,Competition and a Sports Analogy Shubha Ghosh reminds us that to create true freedom in markets we need to look closely at competition policy and antitrust law. These question about freedom/controls; individualism/collectivity; private/public are coming from left and right. And rightly so. These are fundamental tensions in the greater project of human progress and Talent Wants to Be Free strives to shows how certain dualities are pervasive and unresolvable. As Brett suggested, that’s where we need to be in the real world. From an innovation perspective, I describe in the book how “each of us holds competing ideas about the essence of innovation and conflicting views about the drive behind artistic and inventive work. The classic (no doubt romantic) image of invention is that of exogenous shocks, radical breakthroughs, and sweeping discoveries that revolutionize all that was before. The lone inventor is understood to be driven by a thirst for knowledge and a unique capacity to find what no one has seen before. But the solitude in the romantic image of the lone inventor or artist also leads to an image of the insignificance of place, environment, and ties…”.  Chapter 6 ends with the following visual:

 

Dualities of Innovation:

Individual / Collaborative

Radical/Incremental

Accidental /Deliberate

Global /Local

Passion / Profit

Art/Science

Exclusive/Shared

Inscribed/Tacit

 

And yet, the book takes on the contrarian title Talent Wants to Be Free! We are at a moment in history in which the pendulum has shifted too far. We have too much, not too little, controls over information, mobility and knowledge. We uncover this imbalance through the combination of a broad range of methodologies: historical, empirical, experimental, comparitive, theoretical, and normative. These are exciting times for innovation research and as I hope to convince the readers of Talent, insights from all disciplines are contributing to these debates.

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Free Labor, Free Organizations,Competition and a Sports Analogy

I have enjoyed the discussion on Orly’s book and thought of an interesting analogy to sports that is worth sharing. The inspiration was  Haddock, Jacobi, & Sag, “League Structure & Stadium Rent Seeking–The Role of Antitrust Revisited,” 65 Florida Law Review 1 (2013), an offprint of which appeared in my box the other day.  I recommend the article for those interested in regional economic development, sports franchising, antitrust and composing a title for an academic article without using a colon.  The ideas below are inspired by the article but represent my own views, not those of the authors.

Free agency in sports is desirable along the lines of Orly’s argument. Talented players are not locked into a particular team and can auction their skills off to the highest bidder.  I think the case is strong for free agency as benefitting individuals and society. One can complain about rent seeking and about the dynamics that lead to improper behavior like doping. As far as rent seeking, it is a loaded term like piracy or pornography, acting more as a conclusive label rather than an analytical concept. Orly’s argument supports rent seeking when it benefits talent and helps to unlock it.  As far as the dark side of competition (doping or cheating), those can be handled through other means than limiting free agency.

Does the free agency argument translate over into the firm or organizational level?  As Haddock, Jacobi, & Sag point out, there is lots of wasteful behavior as sports teams threaten to move in order to get better franchise deals from cities.  I understand their argument to be that the industrial structure of sports franchises in the United States leads to such opportunistic behavior as strapped and often desperate cities cannot effectively respond to the threat of exit by a team. They contrast the US sports team structure with that in the UK, where teams rely more on fan support rather than public subsidies.  Consequently, municipalities often have several sports teams that compete among themselves.

I found this example fascinating for the purposes of this symposium.  First of all, the free agency point maps readily onto Orly’s point. Competition among players is perhaps more effective and arguably more fair than competition among teams where players are locked into the firm and its mechanisms (if any) for internal competition.  At the same time, arguments for free competition do not readily transfer over to the franchising level given the industrial organization of teams and their relationship with cities. The answer to the problems Haddock et al. identify for sports franchising in the US lies in altering the political and market structure within which bargaining and competition for franchises occur. The example illustrates the relationship between individual mobility, competition internal to an organization, and the background structure of competition that defines how interactions among and within organizations play out.

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Talent Timing Paradox

There is a hidden paradox in Talent Wants to be Free: There is time to lock down, and a time to set free (maybe to sow, reap, and more too). Lobel notes that some work indicates that early stage industries may benefit from lock down. But she also makes the observation that a company locking down talent may be in decline. What can we make of this possible paradox?

I think that it shows how difficult it is for any company or industry to truly innovate. As Lobel notes, when things plateau, talent should be loosened up. Why? I suggest that the old hack of the Innovator’s Dilemma is in play. As a company is used to a certain business there are many reasons it won’t move on to the next thing. And it may not be able to see or be willing to work on the next thing. The folks who are into crazy late night work, start-up adrenaline, and the chance to press the edge of whatever field they are in find that the company has become stale. That may also be an industry. I believe that the convergence of businesses is part of why Silicon Valley companies looked to limit talent movement. They both did not want their core people help competitors build rival services and found that folks may be tempted to move to a seemingly new place. For example, a social network person may have jumped to Google to build Google + if their old firm was stable or a search technologist to Amazon or FaceBook, and so on. The respective verticals may be stale and converging. So the leaders start to find ways to keep labor in place (and probably sneak folks to their outfits as much as they can nonetheless). Is there another option? Sure.

Start a Bell Labs, Skunk Works, or Google X. In the short term at least, some of the best folks may stay and set up the next stage of your company. But as the scenario planning and related literature show, sooner or later the company will fail to turn that work into something. When that happens, some of the talent may be frustrated and leave. Again, the need for the payoff, the we planned for X and delivered X vortex takes hold and down the drain we spin. The upside is that other companies will lurk at the edge of the collapse and pick out the best of the wreckage. The key as Lobel argues is that the human capital be able to picked up. If not, the stalling, collapsing company keeps hold of good folks who might do great work elsewhere.