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Category: Innovation

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The Daily You: A Mandatory Read

Over at the Business Insider, Doug Weaver has a terrific review of our guest blogger Joe Turow’s new book The Daily You, demonstrating its practical importance to people in the field like Weaver as well as to policymakers and scholars.Here’s the review:

Listening to the insider discussions and industry reporting about online marketing provides a numbing sense of false comfort.  But every so often, we go outside the bubble and hear civilians talking about what we do.  I’m sure most of us have had someone at a party or family gathering share their ‘creeped out’ moment;  that instance where they finally saw clearly that somehow they were being ‘followed’ online.   Other times, they offer us largely unformed general concerns about online privacy: they don’t really have a sense of what’s going on but they instinctively know they don’t like it.  And once in a great while you’ll hear from someone who’s really done their homework and brings crystal clarity to the issue from the consumer point of view.

That moment came for me when I stumbled on an NPR radio interview with Joseph Turow, author of “The Daily You: How the New Advertising Industry is Defining Your Identity and Your Worth.”  After using up my ten minute commute, I found myself sitting my car in the parking lot of my office for another 30 minutes just listening to this guy.  It was kind of like hearing someone talk about you in a bathroom when they don’t know you’re in one of the stalls.  Except they’re totally getting it right.  Turow, an associate dean at the Annenberg Communication school at Penn, has done a lot of homework.  The book is detailed and rigorous, but also extremely accessible to the curious consumer.  While it’s probably not going to sell millions of copies, I believe it’s going to be a hugely influential and important book for several reasons.

  • To my knowledge, it’s the first crossover book that’s attempted to explain in great detail our industry’s use of data to the consumer.  And while explaining it all to the consumer, Turow also explains it all to the business and consumer press.  Perhaps for the first time, they will really understand the digital marketing ecosystem.  And that understanding is almost certain to drive a lot more reporting.  Expect a lot more stories like the Wall Street Journal’s 2010 “What They Know” series, only better informed.
  • “The Daily You” is also clear eyed and inclusive.  Turow is not a wild eyed privacy crusader tilting at windmills.  A walk through his index and end notes is like thumbing through a digital marketing “who’s who” — you’ll recognize a lot of names, companies and concepts right off the bat.
  • And finally, the book builds an intellectual bridge that’s the link to a very powerful idea:  that on some level this is not just a privacy issue, but a human rights issue.  For Turow, the real issue is the digital caste system that’s being imposed on consumers without their knowledge or consent.  Over time, one consumer will enjoy better discounts and better access to quality brands and offers than his less fortunate counterpart.  Perhaps more important are the ways in which these two consumers content experiences will diverge as a result of all the profiling that’s been done.  Like it or not, each of us is getting an online data version of an invisible credit score.  Turow gets this and his readers will too.

For my money, “The Daily You” should be a mandatory read for anyone in our industry.  It’s the beginning of an important new conversation about sustainable and inclusive data practices, a conversation that will form much quicker than many of us might imagine.

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The Hardest Thing to Predict Is the Future

SOPA and PROTECT IP are dead… for now. (They’ll be back. COICA is like a wraith inhabiting PROTECT IP.) Until then, Michelle Schusterman has a terrific graphic about the movie industry’s predictions of doom with each new technological revolution. (Ditto the music industry: the player piano, radio, CDs, the MP3 player, etc., etc.) One reason for this is that it’s difficult to predict the effects of a new communications technology. People thought we’d use the telephone to listen to concerts from afar. But another reason is that content industries see advances not as an opportunity but as a threat – a threat that they deploy IP law to combat, or at least control. And in a policy space where lawmakers don’t demand actual data on threats before acting, trumped-up assertions of job loss and revenue loss can carry the day. This puts the lie to the theory that IP owners will move to exploit new communications media, if only they are protected against infringement. We didn’t get viable Internet-based music sales until iTunes in 2003, and Spotify is the first serious streaming app (the “celestial jukebox“). Think about prior efforts like Pressplay and MusicNow, and how terrible they were. Letting the content industry design delivery models is like letting Matt Millen draft your football team.

This is why piracy is a helpful pointer: it tells us what channels consumers want to use to access content. Sometimes this is just displacement of lawful consumption, as when college students with copious disposable income download songs via BitTorrent, but sometimes it indicates an unaddressed market niche (as with me and the baseball playoffs). To paraphrase Thomas Jefferson, I think a little bit of infringement now and again is a good thing. It is only when there is a viable threat in a new medium that existing players innovate – or cut deals with those who do. In that regard, even if SOPA and PROTECT IP are effective at reducing infringement, we might not want them.

Cross-posted at Info/Law.

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The E.U. Data Protection Directive and Robot Chicken

The European Commission released a draft of its revised Data Protection Directive this morning, and Jane Yakowitz has a trenchant critique up at Forbes.com. In addition to the sharp legal analysis, her article has both a Star Wars and Robot Chicken reference, which makes it basically the perfect information law piece…

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Cybersecurity Puzzles

Cybersecurity is in the news: a network intrusion allegedly interfered with railroad signals in the Northwest in December; the Obama administration refused to support the Stop Online Piracy Act due to worries about interfering with DNSSEC; and the GAO concluded that the Department of Homeland Security is making things worse by oversharing. So, I’m fortunate that the Minnesota Law Review has just published the final version of Conundrum (available on SSRN), in which I argue that we should take an information-based approach to cybersecurity:

Cybersecurity is a conundrum. Despite a decade of sustained attention from scholars, legislators, military officials, popular media, and successive presidential administrations, little if any progress has been made in augmenting Internet security. Current scholarship on cybersecurity is bound to ill-fitting doctrinal models. It addresses cybersecurity based upon identification of actors and intent, arguing that inherent defects in the Internet’s architecture must be remedied to enable attribution. These proposals, if adopted, would badly damage the Internet’s generative capacity for innovation. Drawing upon scholarship in economics, animal behavior, and mathematics, this Article takes a radical new path, offering a theoretical model oriented around information, in distinction to the near-obsession with technical infrastructure demonstrated by other models. It posits a regulatory focus on access and alteration of data, and on guaranteeing its integrity. Counterintuitively, it suggests that creating inefficient storage and connectivity best protects user capabilities to access and alter information, but this necessitates difficult tradeoffs with preventing unauthorized interaction with data. The Article outlines how to implement inefficient information storage and connectivity through legislation. Lastly, it describes the stakes in cybersecurity debates: adopting current scholarly approaches jeopardizes not only the Internet’s generative architecture, but also key normative commitments to free expression on-line.

Conundrum, 96 Minn. L. Rev. 584 (2011).

Cross-posted at Info/Law.

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Goldilocks and Cybersecurity

It may seem strange in a week where Megaupload’s owners were arrested and SOPA / PROTECT IP went under, but cybersecurity is the most important Internet issue out there. Examples? Chinese corporate espionage. Cyberweapons like Stuxnet. Anonymous DDOSing everyone from the Department of Justice to the RIAA. The Net is full of holes, and there are a lot of folks expert in slipping through them.

I argue in a forthcoming paper, Conundrum, that cybersecurity can only be understood as an information problem. Conundrum posits that, if we’re worried about ensuring access to critical information on-line, we should make the Net less efficient – building in redundancy. But for cybersecurity, information is like the porridge in Goldilocks: you can’t have too much or too little. For example, there was recent panic that a water pump burnout in Illinois was the work of cyberterrorists. It turned out that it was actually the work of a contractor for the utility who happened to be vacationing in Russia. (This is what you get for actually answering your pager.)

The “too little” problem can be described via two examples. First, prior to the attacks of September 11, 2001, the government had information about some of the hijackers, but was impeded by lack of information-sharing and by IT systems that made such sharing difficult. Second, denial of service attacks prevent Internet users from reaching sites they seek – a tactic perfected by Anonymous. The problem is the same: needed information is unavailable. I think the solution, as described in Conundrum, is:

increasing the inefficiency with which information is stored. The positive aspects of both access to and alteration of data emphasize the need to ensure that authorized users can reach, and modify, information. This is more likely to occur when users can reach data at multiple locations, both because it increases attackers’ difficulty in blocking their attempts, and because it provides fallback options if a given copy is not available. In short, data should reside in many places.

But there is also the “too much” problem. This is exemplified by the water pump fiasco: after 9/11, the federal government, including the Department of Homeland Security, began a massive information-sharing effort, such as through Fusion Centers. The difficulty is that the Fusion Centers, and other DHS projects, are simply firehosing information onto companies who constitute “critical infrastructure.” Much of this information is repetitive or simply wrong – as with the water pump report. Bad information can be worse than none at all: it distracts critical infrastructure operators, breeds mistrust, and consumes scarce security resources. The pendulum has swung too far the other way: from undersharing to oversharing. Finding the “just right” solution is impossible; this is a dynamic environment with constantly changing threats. But the government hasn’t yet made the effort to synthesize and analyze information before sounding the alarm. It must, or we will pay the price of either false alarms, or missed ones.

(A side note: I don’t put much stock in which federal agency takes the lead on cybersecurity – there are proposals for the Department of Defense, or the Department of Energy, among others – but why has the Obama administration delegated responsibility to DHS? Having the TSA set Internet policy hardly seems sensible. Beware of Web-based snow globes!)

Cross-posted at Info/Law.

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Censorship on the March

Today, you can’t get to The Oatmeal, or Dinosaur Comics, or XKCD, or (less importantly) Wikipedia. The sites have gone dark to protest the Stop Online Piracy Act (SOPA) and the PROTECT IP Act, America’s attempt to censor the Internet to reduce copyright infringement. This is part of a remarkable, distributed, coordinated protest effort, both online and in realspace (I saw my colleague and friend Jonathan Askin headed to protest outside the offices of Senators Charles Schumer and Kirstin Gillibrand). Many of the protesters argue that America is headed in the direction of authoritarian states such as China, Iran, and Bahrain in censoring the Net. The problem, though, is that America is not alone: most Western democracies are censoring the Internet. Britain does it for child pornography. France: hate speech. The EU is debating a proposal to allow “flagging” of objectionable content for ISPs to ban. Australia’s ISPs are engaging in pre-emptive censorship to prevent even worse legislation from passing. India wants Facebook, Google, and other online platforms to remove any content the government finds problematic.

Censorship is on the march, in democracies as well as dictatorships. With this movement we see, finally, the death of the American myth of free speech exceptionalism. We have viewed ourselves as qualitatively different – as defenders of unfettered expression. We are not. Even without SOPA and PROTECT IP, we are seizing domain names, filtering municipal wi-fi, and using funding to leverage colleges and universities to filter P2P. The reasons for American Internet censorship differ from those of France, South Korea, or China. The mechanism of restriction does not. It is time for us to be honest: America, too, censors. I think we can, and should, defend the legitimacy of our restrictions – the fight on-line and in Congress and in the media shows how we differ from China – but we need to stop pretending there is an easy line to be drawn between blocking human rights sites and blocking Rojadirecta or Dajaz1.

Cross-posted at Info/Law.

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Stanford Law Review Online: Don’t Break the Internet

Stanford Law Review

The Stanford Law Review Online has just published a piece by Mark Lemley, David S. Levine, and David G. Post on the PROTECT IP Act and the Stop Online Piracy Act. In Don’t Break the Internet, they argue that the two bills — intended to counter online copyright and trademark infringement — “share an underlying approach and an enforcement philosophy that pose grave constitutional problems and that could have potentially disastrous consequences for the stability and security of the Internet’s addressing system, for the principle of interconnectivity that has helped drive the Internet’s extraordinary growth, and for free expression.”

They write:

These bills, and the enforcement philosophy that underlies them, represent a dramatic retreat from this country’s tradition of leadership in supporting the free exchange of information and ideas on the Internet. At a time when many foreign governments have dramatically stepped up their efforts to censor Internet communications, these bills would incorporate into U.S. law a principle more closely associated with those repressive regimes: a right to insist on the removal of content from the global Internet, regardless of where it may have originated or be located, in service of the exigencies of domestic law.

Read the full article, Don’t Break the Internet by Mark Lemley, David S. Levine, and David G. Post, at the Stanford Law Review Online.

Note: Corrected typo in first paragraph.

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A Commons Comedy Fueled by Data

Imagine you are a fisherman and haul in a catch with fish that are protected and that would get you in trouble. Quick! Hide it! Deny it! etc., right? Nope. The Times reports that a partnership among fishermen and the Nature Conservancy meant that this fisherman reported the catch so the overall area could thrive.

The story starts in the usual eco-group takes on industry way with the NC buying “out area fishing boats and licenses in a fairly extreme deal — forged with the local fishing industry — to protect millions of acres of fish habitat.” But the NC put the fleet back to work using a commons model.

Bringing information technology and better data collection to such an old-world industry is part of the plan. So is working with the fishermen it licenses to control overfishing by expanding closed areas and converting trawlers — boats that drag weighted nets across the ocean floor — to engage in more gentle and less ecologically damaging techniques like using traps, hooks and line, and seine netting.

The conservancy’s model is designed to take advantage of radical new changes in government regulation that allow fishermen in the region both more control and more responsibility for their operating choices. The new rules have led to better conservation practices across all fleets, government monitors say.

The challenges here were that “There wasn’t scientific information at that level that could match the fisherman knowledge.” Fisherman did not trust the NC, but when the NC bought some of the boats or permits from those who wanted to leave the industry, “The fishermen soon divulged which nurseries and rock formations needed to be protected and which areas where mature fish congregated should be left open. What resulted was a proposal that included large areas of closings — nearly 4 million acres — that most fishermen thought was fair. It was adopted easily by the fishery council in 2006.”

Now let’s look at the data magic. The NC uses a system called eCatch. According to the Times, fisherman were not sure about this reporting requirement “But fishermen have come to believe that the data will show patterns — for example, high catch rates of certain species after full moons along the edge of the shallow water shelf in July — that will help them all predict the danger zones. Independent fisherman have joined the risk pool and eCatch system because they see benefits. By handing out free iPads, the conservancy made the posting of real-time results almost effortless.”

And, it seems other areas are emulating this approach. “In Massachusetts, scallop fishermen, with the help of the University of Massachusetts, have developed a similar reporting program to avoid pulling in endangered yellowtail flounder.” Could lobster fishermen be far off from this method? Afterall at least with other seafood efforts the new method “yields profits and hardly any bycatch” (the term for catching sensitive species which can lead to market problems). And in what looks like another aspect of this commons comedy, in one case a family that sold its permit and leases it back at fair market value as long as the method “continues to use Scottish seining, which is far gentler to the ocean bottom than trawling is.”

Rather than the fight between nature groups and industry the fisherman offered a different picture: “The Nature Conservancy had identified that the small family boats were sustainable, and they wanted to help,” Mr. Fitz said. “We recognized that we needed help negotiating this increasingly confusing path into the future.”

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New Wave Publishing: Innovation, New Creativity, and Jobs on the Horizon?

A New Wave is happening in publishing. Now I hear New Wave and think of the British invasion of the 80s. Today the new wave is happening in publishing in the U.S. And it may be that creative folks will not need the central publishing industries to reach their audiences. For the dream of interactive publishing is real. In one case some professors are getting short, powerful ideas out fast and making some money too. In another, a creative technologists have started a company in Shreveport, Louisiana, hired 20 people, and are selling some of the hottest things for iPads. Like all creative acts, not everyone will succeed. But that is true in all business too. The difference is that the barriers and old ideas of what a marketplace can handle are dropping. And what’s really cool is that folks are playing with new ideas and models to create great art and ideas, share, and earn all at the same time. For me, both cases show that ideas about what is and is not a market and where the latest and best high art or creative project will come from often miss the point. Open up the system and watch how people will create in new ways and even make some money too. Trying to hold onto the past and decrying the death of high art etc. as some do, simply misses the array of possibilities that lie before us.

More specifically, these examples make me think that some rather cool new text and opportunities are headed our way. As Richard Lanham noted in the Electronic Word almost 20 years ago, the standard linear text may give way to new forms. Like illuminated manuscripts we are seeing a new way of communicating. Hyperlinked, and how about animated, and I’d say even holographic, interactive text is coming. (I am guessing this stuff is occurring elsewhere, but the stories I have seen are U.S. So as always share what I am missing politely please.)

First, in professorland, Erik Brynjolfsson and Andrew McAfee’s Race Against the Machine: How the Digital Revolution is Accelerating Innovation, Driving Productivity, and Irreversibly Transforming Employment and the Economy, follows Tyler Cowan’s work released as an ebook, but I think Race Against the Machine is only available as an e-book. Although the ideas in the book, or rather as Hal Varian reminded me, monograph may fit its length, are interesting, I was intrigued by the ebook model. At $3.99 and as an electronic publication, the tightly written piece can be written as intended without bloat to justify a larger spine (yes that matters for shelf-space marketing). And I think the press is run such that the authors will receive a fair amount of the proceeds. I found that the hyperlinked citations worked rather well. I jumped out and then back into the piece as supported assertions drew me away from the text, but I wanted to go back quickly when done. All that on an iPhone Kindle App.

Second, the Atlantic’s How to Build the Pixar of the iPad Age in Shreveport, Louisiana demonstrates the promises of technology that Race Against the Machine offers in some ways. The word, book, fails to capture this work. As the article describes:

Their first project, The Fantastic Flying Books of Mr. Morris Lessmore, was released for the iPad last May. It recounts the wondrous adventures of a book lover who dotingly cares for a living library before writing a book himself that tells of “his joys and sorrows, of all that he knew and everything that he hoped.” Gorgeously illustrated, Lessmore breaks new ground in the way that it incorporates interactivity. Each page has a wormhole of interaction. Read about a song and perhaps a keyboard will pop up and guide your fingers to plunk out “Pop Goes the Weasel.” When Morris Lessmore hand-feeds alphabet cereal to his books, the reader gets a bowl too, with letters that can be dragged along through the milk to spell out words. Each page holds its game like a secret and puzzling out what to do encourages the reader to look harder, knowing they’ll be rewarded. The games pull the reader deeper; the narrative pulls the reader farther. The tension between lingering and racing is potent.

It is technically an App! And it was the best-selling one for a bit too. That success has led the team to hire 20 people and become a small studio in this new medium.

And like the professors, these creators are doing what they want their way and kicking open new markets to boot. “There isn’t a huge market for animated shorts, certainly not the multibillions that can be reaped from a wide-release. If they’d wanted a world-class studio, they might have been forced to supersize their operations.” Technology like the iPad in this case is opening the door for folks to create and sell on their terms. They can “stay smaller, retain more creative control, and tell stories in new ways. They have faith that stories are more fundamental than technology, but that technology will enable a storytelling renaissance.”

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Science and Employment: You Must Remember This, The Fundamental Things Apply As Time Goes By

Here are some pointed questions about science, innovation, and technological progress:

First: What can be done, consistent with military security, and with the prior approval of the military authorities, to make known to the world as soon as possible the contributions which have been made during our war effort to scientific knowledge?

The diffusion of such knowledge should help us stimulate new enterprises, provide jobs for our returning servicemen and other workers, and make possible great strides for the improvement of the national well-being.

Second: With particular reference to the war of science against disease, what can be done now to organize a program for continuing in the future the work which has been done in medicine and related sciences?

The fact that the annual deaths in this country from one or two diseases alone are far in excess of the total number of lives lost by us in battle during this war should make us conscious of the duty we owe future generations.

Third: What can the Government do now and in the future to aid research activities by public and private organizations?

The proper roles of public and of private research, and their interrelation, should be carefully considered.

Fourth: Can an effective program be proposed for discovering and developing scientific talent in American youth so that the continuing future of scientific research in this country may be assured on a level comparable to what has been done during the war?

New frontiers of the mind are before us, and if they are pioneered with the same vision, boldness, and drive with which we have waged this war we can create a fuller and more fruitful employment and a fuller and more fruitful life.

War should be understood as the military actions in Asia and the war on terror.

By now you all may have wondered, “What the heck is Deven doing talking about war (good God, y’all, what is it good for)?” Or something like that. And some of you may have figured out that all of the above except “War should be understood as the military actions in Asia and the war on terror”, which I threw in to try and seem like the ideas are from today, is from President Roosevelt’s letter to Vannevar Bush.

Funny how little changes overtime. Jobs, medical progress, public/private collaboration, the future of science education are all on our minds today. They have been a core issue since at least 1944. The full history of Science the Endless Frontier is hosted by the NSF. It is a fun read. Well, if you are absurdly nerdy, it is a fun read.

There are many things to enjoy in the report. One part that jumped out at me is his idea about employment and science. I may write more as I digest the report in general. For now take a read:

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