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FYI: The transcript of FSF attorney Eben Moglen's talk at Harvard...

The transcript of FSF attorney Eben Moglen's talk at Harvard.

Welcome, everyone, to tonight's event. I just have a couple of quick
announcements. I'm Mike Zarren, the editor-in-chief of the Harvard Journal of
Law and Technology. Two quick announcements. First is, if you don't know about
our Journal, you should check out our web page. It's  jolt.law.harvard.edu. Our
fall issue, which I know it's not the fall any more but it's just coming out
now, has some great articles in it which I won't repeat all the topics, but
they're cool.

The second announcement is that our next big event is our symposium. It's our
annual spring symposium. This year the symposium is on innovations and ownership
issues with regard to media. The symposium is going to examine how technological
innovation and the digitization of print and broadcast media are impacting
ownership and control of media distribution channels, as well as consumer access
and choice. So please look at our website for current list of participants.
There is a whole bunch of people coming and talking here, and that event is also
open to the public and will also be webcast.

Special thank you to those of you who are watching online. The last JOLT webcast
was the most watched webcast in the history of Harvard Law School, so that's
exciting. I don't know what that means but.... [laughs] Anyway, without further
ado, I would like to introduce Jonathan Zittrain, who's not only the co-director
of the Berkman Center for Internet and Society -- there we go --as well as one
of the best professors here at Harvard Law School.

Jonathan Zittrain: Hi, there. This session is something of a bookend to the
session a couple of weeks ago. Maybe we should just find out, right? How many of
you were here at the last session? You know what I mean, right? How many of you
were here? How many of you were not here? All right, so the not-heres have it
over the heres from the last session. It's a bit of a bookend from the
presentation by . . . Problems? OK. OK, ma'am, turn down your radio.

OK, so this is a bookend to a session that started with Darl McBride of SCO, the
Santa Cruz Operation two, Santa Cruz Operation Jr., who presented a number of
theories about their ownership of UNIX and how that impacts Linux. I understand
that there were people at the event, handing out copies of Linux as a form of
civil disobedience. I don't know how many people made use of their copies to
install Linux on their coffee makers or reinstall it on their TiVos.

I was disappointed to see that there was no one, I guess, in converse fashion,
frisking people in their way in, looking for copies of Linux to seize, as a form
of civil obedience by the powers-that-be. But in some important respects, too, I
am not sure this will be a bookend, and that's because of who is speaking, Eben
Moglen. Eben Moglen is a scholar of the first order, somebody who thinks very
big, and yet also very deep. And therefore, my guess is he will not be looking
at this problem solely as a lawsuit that has certain facts and issues of law to
be decided and here's how it ought to come out.

Of course, he is also looking at it that way, because he is, among other things,
counsel to the Free Software Foundation, and therefore, Richard Stallmans'
lawyer, and somebody who is the legal, and in other important respects, public
face of the Free Software Foundation and the Free Software Movement.

This is probably an appropriate job for him to hold. In other lives, he has been
a computer programmer. As early as 1973, at age 14, he was contributing to the
development of VSAPL, the little-known successor, APL II, and PASCAL, at IBM
Santa Teresa Laboratory. He has since, aside from being a historian, been a law
professor at Columbia University, where in a way that is truly scholarly, in the
sense that it depicts that a true relish of knowledge and of not just
stockpiling knowledge but challenging conventional wisdom and making new
knowledge out of old, new analysis, he has taken on a number of sacred cows,
including, some of you may be chilled to find out, the law review establishment,
which I think he probably still thinks is overripe for change and renewal, to
put it lightly.

How does Eben Moglen describe his own mode of scholarship? He says it is
basically a two step, purely experimental paradigm. Step 1: try to create
freedom by destroying illegitimate power sheltered behind intellectual property
law. Right? What could step 2 be? Step 2: See what happens.

So far, he reports that early results are encouraging. So you are all part of
the grand experiment that is really just Eben Moglen's research agenda, but
obviously there is something a little more to it. There is a sense that this
isn't just an economic or financial issue, that there really are broad-brushed
social and cultural things at stake, and I'm sure that's what you are going to
hear about today. So with that, please join me in welcoming Professor Eben
Moglen.

Eben Moglen: Thank you. It's a great pleasure to be here. I want to thank the
Journal of Law and Technology and Jonathan Zittrain for combining to set things
up for me in this delightful way. It is true that I feel somewhat overwhelmed at
the prospect of trying to talk for any substantial length of time about a
lawsuit that isn't going anywhere very much. I am, however, going to mention the
SCO lawsuit from time to time in my remarks.

Mr. McBride, when he was here, was kind enough to mention me once or twice, and
I am going to do him the same favor. I hope you will feel, those of you who
followed the conversation, that I am responsive to his remarks, though I don't
think that doing it in the form of he said, I say, would lead, as Jonathan
suggests, to a particularly intellectually challenging evening.

Free software, you will know, I am sure, that I didn't make this up, is free as
in freedom, not free as in beer. One of the primary problems with the
conversation we have been having about this lawsuit, in your distinguished
speaker series this year, is that at least so far it had apparently been
suggested that the goal of those of us who believe in the free software movement
was primarily to prevent people from earning a profit in the computer industry.

This results, it is sometimes suggested, from some wild antipathy to the idea of
economic benefit or some particular antipathy to the idea that people ought to
have incentives to do what they do. I shall along the way suggest that we
believe very strongly in incentives, though we see the problem of incentive
perhaps a little bit differently than Mr. McBride. But it isn't, after all, and
we need to begin there, it isn't, after all, about making things free as in
beer. It is about making things free as in freedom.

[7:21] The goal of the Free Software Movement is to enable people to understand,
to learn from, to improve, to adapt, and to share the technology that
increasingly runs every human life.

The fundamental belief in fairness here is not that it is fair that things
should be free. It is that it is fair that we should be free and that our
thoughts should be free, that we should be able to know as much about the world
in which we live as possible, and that we should be as little as possible
captive to other people's knowledge, beyond the appeal to our own understanding
and initiative.

This idea lay behind my dear friend and colleague, Richard Stallman's, intense
desire, beginning in the early 1980's, to bring about a world in which all the
computer software needed by anybody to do anything would be available on terms
which permitted free access to the knowledge that that software contained and a
free opportunity to make more knowledge and to improve on the existing
technology by modification and sharing.

This is a desire for a free evolution of technical knowledge. A descent by
modification untrammeled by principles that forbid improvement, access and
sharing.

If you think about it, it sounds rather like a commitment to encourage the
diffusion of science and the useful arts by promoting access to knowledge.

In short, the idea of the Free Software Movement is neither hostile to, nor in
any sense at cross-purposes with, the 18th century ambition for the improvement
of society and the human being through access to knowledge.

The copyrights clause in Article 1 Section 8 is only one of the many ways in
which those rather less realistic than usually pictured founding parents of ours
participated in the great 18th century belief in the perfectability of the world
and of human life.

The copyrights clause is an particular legal embrace of the idea of
perfectability through access to and the sharing of knowledge. We, however, the
21st century inheritors of that promise, live in a world in which there is some
doubt as to whether property principles, strongly enforced, with their
inevitable corollary of exclusion -- this is mine, you cannot have it unless you
pay me -- whether property principles best further that shared goal of the
perfectability of human life and society based around access to knowledge.

Our position has been for twenty years that to the extent that existing
copyright rules encourage the diffusion of science and the useful arts, they
were good. And to the extent that they discouraged the diffusion of knowledge
and the useful arts, that they could be improved.

We have, pardon me for taking credit for something, we have improved them,
substantially, not by negating any of the existing rules of copyright. On the
contrary, we have been quite scrupulous about that.

One of the things which amuses me amidst the rhetoric that is now being thrown
around, is how oddly orthodox I seem to me when I consider my weekly activities
as a lawyer.

Though not necessarily welcome in Los Angeles, I find myself behaving very much
like an awful lot of lawyers in Los Angeles. I want my clients' copyrights
respected, and I spend a fairly large amount of tedious time trying to get
people to play by the very rules embodied in the Copyright Act that I am
supposedly so busy trying to destroy.

Free software is an attempt to use the 18th century principles for the
encouragement of the diffusion of knowledge to transform the technical
environment of human beings. And as Jonathan says, my own personal opinion on
the subject is that the early going in our experiment has worked out pretty
well.

It is because it has worked out pretty well that there is blowback from it, and
one of the little pieces of that blowback is the controversy now roiling the
world entitled SCO against IBM, which apparently is supposed to become, Mr.
McBride said it when he was here, SCO against something called the Linux
Community.

I don't think that's actually what's happening, but it is certainly what Mr.
McBride came here to say was happening.

So I'd best talk for a moment or two about how we see the situation that Mr.
McBride describes as a great test of whether free goods are somehow going to
drive out the incentive to produce in the net.

Free software, of which the operating system kernel called Linux is one very
important example among thousands, free software is the single greatest
technical reference library on Planet Earth, as of now.

The reason I say that is that free software is the only corpus of information
fixed in a tangible form, through which anyone, anywhere, can go from naivete to
the state of the art in a great technical subject -- what computers can be made
to do -- solely by consulting material that is freely available for adaptation
and reuse, in any way that she or he may want.

We enable learning all over the world by permitting people to experiment, not
with toys, but with the actual real stuff on which all the good work is done.

For that purpose, we are engaged in making an educational system and a human
capital improvement system which brings about the promise of encouraging the
diffusion of our science and useful art in a way which contributes to the
perfectability of human beings.

[15:02]

That's what we were trying to do, and we have done it. We are, as it happens,
driving out of business a firm called the Santa Cruz Operation [sic] - or SCO
Ltd. That was not our intention. That's a result of something called the
creative destruction potential of capitalism, once upon a time identified by
Joseph Schumpeter. We are doing a thing better at lower cost than it is
presently being done by those people using other people's money to do it. The
result - celebrated everywhere that capitalism is actually believed in -- is
that existing firms are going to have to change their way of operation or leave
the market. This is usually regarded as a positive outcome, associated with
enormous welfare increases of which capitalism celebrates at every opportunity
everywhere all the time in the hope that the few defects that capitalism may
possess will be less prominently visible once that enormous benefit is carefully
observed.

Mr. McBride does not want to go out of business. This is understandable. Mr.
Gates does not want to go out of business either. But they are both on the wrong
side of a problem in the political economy of the 21st century. They see
software as a product. In order to make their quote "business model" close quote
work, software must be a thing which is scarce. And out of the scarcity of
software there will be a price which can be extracted, which will include an
economic rent, from which Mr. McBride has suggested somebody will be enabled to
buy a second home.

Mr. McBride thought it was the programmers who would be able to buy a second
home but people who actually understand the current state of the software
industry recognize that programmers are not buying second homes these days. I
think Mr McBride means the executives who employ programmers and the financiers
who employ executives to employ programmers will buy a second home on the
software-is-product business model for a little while longer.

We think that software is not a product, because we do not believe in excluding
people from it. We think that software is a form of knowledge. The International
Business Machines Corporation, the Hewlett Packard Corporation, and a number of
other organizations either represented here in body or in spirit this evening
have another theory, which is that software in the 21st century is a service, a
form of public utility combined with knowledge about how to make best use of the
utility, which enables economic growth in peoples' enterprises generally, from
which there is a surplus to be used to pay the people who help you produce the
surplus, by making the best possible use of the public utility.

I think it would be appropriate to suggest, if you like, that where we now are
is in a world, where, if I may employ a metaphor, Mr. McBride and his colleagues
-- I do mean those in Redmond, as well as those in Utah -- think that roads
should all be toll roads. The ability to get from here to there's a product. Buy
it, or we exclude you from it. Others believe that highways should be public
utilities. Let us figure out how to use the public highways best, so that
everybody can profit from them - from the reduction of the costs of
transportations of goods and the provisions of services -- and by the by, there
will be plenty of money to pay traffic engineers and the people who fix the pot
holes.

We believe, for what little our view of the economics of the software market may
be worth in the 21st century -- after all we are the people who transformed it
-- we believe that the public utility service conception of software better
reflects economic actuality in the 21st century. We are not surprised that Mr.
McBride is going out of business on the other business model.

Mr. McBride's claim is that he is going out of business because somebody has
taken what belongs to him. That's a lawsuit. As it turns out, however, the
people he believes have taken what don't belong to him aren't us. His theory is
that various people promised AT&T at various times that they would do or refrain
from doing various things, that some of the people who promised AT&T in the old
days to do or refrain from doing various things broke those promises, and that
out of the breaking of those promises, Linux, a computer program distributed
under free terms, benefitted.

[20:09]

Mr. McBride may be right about that or he may be wrong. We do not know what the
contents of those contracts are in general terms, and we do not even know, as
Mr. McBride pointed out to you when he was here, that he is the beneficiary of
those contracts. He is presently in litigation trying to prove that he has what
he claims to have -- certain contract rights which he claims were conveyed to
him by Novell. I have no opinion about whose rights those are, and I wish Mr.
McBride luck in his litigation over that question.

But what Mr. McBride has also claimed is that our creative works are somehow
dominated by those contract disputes, dominated in the sense that he has
claimed, though so far not behaved in concert with the claim, that users of free
software are liable to him, or to his firm, on the basis of claims that grow out
of the contractual relations between AT&T, Sequent, IBM, and others, over time.

I have spent a fair amount of time tediously reflecting on whether each piece of
the story, as Mr. McBride and his colleagues have told it, could amount to a
copyright claim against third parties.

I have spent that time because there were lots of third parties out there in the
world who were concerned about assertions of copyright problems that Mr. McBride
was making. I have confronted wraithlike examples of what were said to be
derivative work but weren't derivative work under copyright law, or asserted
copyright claims that turned out to be based on code that nobody owned
ascertainably and had been in the public domain for a lengthy period of time, or
code that Mr. McBride claimed he was entitled to prevent people to stop using
long after he had deliberately given to people that very code under promises
that they could use it, copy, modify it and distribute any way that they want.

And bit by bit, I have found myself unable to discover a single way in which Mr.
McBride's firm could claim against third parties, not those who had ever been in
privity of contract with AT&T or its successors over code in the Unix operating
system, anything that could force them to pay damages or stop them from using
free software.

This is the thing we call SCO, not a lawsuit actually brought on the basis of
promises exchanged between IBM and AT&T, but a mysterious belief that somewhere
out in the world tens of thousands of people might have to stop using billions
of dollars worth of software that we made it possible for them to have at
marginal cost solely because of some agreement between AT&T and somebody else to
which Mr McBride's firm is a successor in interest.

I see no substance to that claim. And I am prepared, under the guidance of your
searching and hostile questioning, to explain bit by bit why I think that's
true.

But I have published those various inquiries, and I don't want to recapitulate
them here this evening. I think that that would be a poor use of our time
together. At www.gnu.org/philosophy/sco, all of it in lower case letters, you
will find the various papers that I have written and that Mr. Stallman has
written on these subjects, and there I hope we will have taken up in detail all
the various points.

But it's hard to resist talking about the United States Supreme Court in a
classroom at Harvard Law School. And so, for just a moment, I do want to engage
in a little court watching with you.

Mr. McBride, when he was here, had much to say about a case called Eldred
against Ashcroft, in which Mr. McBride discovers that the United States Supreme
Court came out 7-2 against free software and in favor of capitalism [laughter
from audience]. The odd thing is that on the very day when Mr. McBride was
standing here discussing that subject with you, I was in Los Angeles discussing
the very same thing with a fellow named Kevin McBride, Mr. McBride's brother and
the actual author of the document from which Mr. McBride was speaking.

[25:08]

Kevin McBride has the advantage in this discussion of being a lawyer, which is a
little bit of help in discussing the United States Supreme Court. But it is not
quite enough help.

The primary trick in discussing cases - I shrink from saying that even in this
room where I have taught first-year law students -- the primary trick in
discussing cases is to separate holding from dicta, a job with which many
lugubrious Septembers and Octobers have been occupied by lawyers all over the
planet and by every single one of you here.

The McBrides, jointly -- I feel sometimes as though I'm in a Quentin Tarantino
movie of some sort with them [laughter] -- the McBrides have failed to
distinguish adequately between dicta and holding.

I do not like Eldred against Ashcroft. I think it was wrongly decided. I filed a
brief in it, amicus curiae, and I assisted my friend and colleague Larry Lessig
in the presentation of the main arguments which did not, regrettably, succeed.

Oddly enough, and I will take you through this just enough to show, oddly
enough, it is the position that we were taking in Eldred against Ashcroft, which
if you stick to holding rather than dicta, would be favorable to the position
now being urged by Mr. McBride. What happened in Eldred against Ashcroft, as
opposed to the window dressing of it, is actually bad for the argument that Mr.
McBride has been presenting, whichever Mr. McBride it is. But they have not
thought this through enough.

Let me show you why. The grave difficulty that SCO has with free software isn't
their attack; it's the inadequacy of their defense. In order to defend yourself
in a case in which you are infringing the freedom of free software, you have to
be prepared to meet a call that I make reasonably often with my colleagues at
the Foundation who are here tonight. That telephone call goes like this. "Mr.
Potential Defendant, you are distributing my client's copyrighted work without
permission. Please stop. And if you want to continue to distribute it, we'll
help you to get back your distribution rights, which have terminated by your
infringement, but you are going to have to do it the right way."

At the moment that I make that call, the potential defendant's lawyer now has a
choice. He can cooperate with us, or he can fight with us. And if he goes to
court and fights with us, he will have a second choice before him. We will say
to the judge, "Judge, Mr. Defendant has used our copyrighted work, copied it,
modified it and distributed it without permission. Please make him stop."

One thing that the defendant can say is, "You're right. I have no license."
Defendants do not want to say that, because if they say that they lose. So
defendants, when they envision to themselves what they will say in court,
realize that what they will say is, "But Judge, I do have a license. It's this
here document, the GNU GPL. General Public License," at which point, because I
know the license reasonably well, and I'm aware in what respect he is breaking
it, I will say, "Well, Judge, he had that license but he violated its terms and
under Section 4 of it, when he violated its terms, it stopped working for him."

But notice that in order to survive moment one in a lawsuit over free software,
it is the defendant who must wave the GPL. It is his permission, his master key
to a lawsuit that lasts longer than a nanosecond. This, quite simply, is the
reason that lies behind the statement you have heard -- Mr. McBride made it here
some weeks ago -- that there has never been a court test of the GPL.

To those who like to say there has never been a court test of the GPL, I have
one simple thing to say: Don't blame me. I was perfectly happy to roll any time.
It was the defendants who didn't want to do it. And when for ten solid years,
people have turned down an opportunity to make a legal argument, guess what? It
isn't any good.

The GPL has succeeded for the last decade, while I have been tending it, because
it worked, not because it failed or was in doubt. Mr. McBride and his colleagues
now face that very same difficulty, and the fellow on the other side is IBM. A
big, rich, powerful company that has no intention of letting go.

[30:02]

They have distributed the operating system kernel program called Linux. That is,
SCO has. They continue to do so to their existing customers because they have a
contractual responsibility to provide maintenance.

When they distribute that program called Linux, they are distributing the work
of thousands of people, and they are doing so without a license, because they
burned their license down when they tried to add terms to it, by charging
additional license fees in violation of Sections 2 and 6 of the GPL.

Under Section 4 of the GPL, when they violated it, they lost their right to
distribute, and IBM has said as a counterclaim in its lawsuit, "Judge, they're
distributing our copyrighted work, and they don't have any permission. Make them
stop."

If SCO played smart, they would have said, "But your Honor, we do have a
license. It's the GNU GPL." Now for reasons that we could get into but needn't,
they didn't want to do that, possibly because it would have affected adversely
their other claims in their lawsuit, or possibly because they had taken a 10
million dollar investment from Microsoft, but we'll talk about that a little
further, I'm sure, in the question period.

At any rate, they didn't say that. What they said back is, "But Judge, the GNU
GPL is a violation of the United States Constitution, the Copyright Law, the
Export Control Law", and I have now forgotten whether or not they also said the
United Nations Charter of the Rights of Man. [laughter]

At the moment, we confine ourselves solely to the question whether the GPL
violates the United States Constitution. I am coming back to Eldred against
Ashcroft along the way.

In Eldred against Ashcroft, 435 Congressmen and a hundred Senators had been
bribed to make copyright eternal in a tricky way. The bribe, which of course was
perfectly legal and went by the name of campaign contributions, was presented to
the Congress for a copyright term extension.

In 1929, Steamboat Willy first brought before the public a creature called
Mickey Mouse. The corporate authorship term under copyright being then, as
almost now, 75 years, had it not been for action by Congress in the year 2004,
Mickey Mouse would have escaped control of ownership, at least under the
Copyright Law. This, of course, necessitated major legal reform to prevent the
escape of Mickey Mouse into the public domain.

Copyright term extension now provides that, whether or not a Sonny Bono skis
into a tree again in the next ten years or so, every once in a while Congress
will extend the term of copyrights a little while longer. And then, as the ball
approaches midnight in Times Square, they'll extend it a little longer. And so
on and so on. Nothing need ever escape into the public domain again, least of
all Mickey Mouse.

Professor Lessig, Eric Eldred, I and lots of other otherwise sensible people in
the United States thought that this did not actually conform to the grand idea
of the perfectability of human beings through the sharing of information. We
doubted that securing perpetual ownership a slice at a time was actually a form
of encouraging the diffusion of science and the useful arts, and we suggested to
the Supreme Court that on this basis alone, the Copyright Term Extension Act
should fall. We were, as Mr. McBride rightly points out, soundly repudiated.

It turns out that there's no such thing as an unconstitutional copyright rule,
if Congress passes it, and if it observes the distinction between expression and
idea, which the Supreme Court says is the constitutional guarantee that
copyright does not violate the freedom of expression, and provided that fair use
rights are adequately maintained.

In short, the actual holding of Eldred against Ashcroft is, Congress can make
such copyright law as it wants, and all licenses issued under the presumptively
constitutional copyright law are beyond constitutional challenge.

I have news for Mr. McBride. The existing copyright law is constitutional and
our license, which fully observes all the requirements that the copyright law
places upon it, are also presumptively constitutional. Only in the world in
which we succeeded in Eldred against Ashcroft, in which if you like there would
be substantive due process review of copyright licenses to see whether they met
the form of copyright called for in Article 1 Section 8, could Mr. McBride and
friends even stand in a United States courtroom and argue that a copyrights
license is unconstitutional.

[35:17]

Regrettably for Mr. McBride, in other words, we lost Eldred against Ashcroft,
and the very claim he now wishes to make perished, along with some more
worthwhile claims, at that moment, at least until such time as the Supreme Court
changes the holding in Eldred against Ashcroft.

Mr. McBride takes a great deal of cold comfort from the pro-capitalist rhetoric
in which Justice Ginsberg announced the decision of the Supreme Court. And, as
yet another disgruntled observer of Eldred against Ashcroft, I wish him luck
with his cold comfort, but he and I were on the same side of that case, little
as he knows it, and the legal arguments that he would now like to present
unfortunately failed. Mind you, even if he were allowed to present to the court
the idea that copyright licenses should be judged for their squareness with
constitutional policy, we would triumphantly prevail.

There is no copyright license in the United States today, I will lay this down
without further demonstration but we can talk about it if you like, there is no
copyright license in the United States today more fitting to Thomas Jefferson’s
idea of copyright or indeed to the conception of copyright contained in Article
1 Section 8, than ours. For we are pursuing an attempt at the diffusion of
knowledge and the useful arts which is already proving far more effective at
diffusing knowledge than all of the profit-motivated proprietary software
distribution being conducted by the grandest and best funded monopoly in the
history of the world.

But, sorrily for us all, Mr. McBride will not get us to the stage where we are
allowed to tell that to the United States Supreme Court, where we would prevail
gloriously, because the United States Supreme Court's already decided that
copyright law is presumptively constitutional as soon as Congressmen have taken
the campaign contributions, held the vote, and passed the resulting gumball-like
statute to the White House for the obligatory stamping. But I welcome Mr.
McBride to the campaign for a less restrictive copyright in the United States,
as soon as he actually figures out, from the legal point of view, which side his
bread is buttered. Unfortunately, as you all realize, we cannot hold our breaths
waiting for enlightenment to strike. If only Mr. McBride attended Harvard Law
School.

That’s, I think, enough about SCO, truly, though I am delighted to answer your
questions in due course about it. It's actually a copyright lawsuit desert.
There aren’t any copyright claims in it. There are some contract claims between
IBM and SCO, and those will, in due course, be adjusted by the courts, and I
look forward with a moderate degree of interest to the outcome. A threat to the
freedom of free software, it ain’t. One hell of a nuisance it most certainly is.
And I, unfortunately, expect to continue to spend a good deal of my time abating
the nuisance, but without much sense of the presence of a hovering threat to the
things I really care about, of which this is not a very good one.

So instead I want to talk about the legal future of free software as it actually
is, rather than as Mr. McBride sees it, some titanic clash between the American
way of life and whatever it is we’re supposed to be. I should say about that
titanic clash between the American way of life and whoever we are that it rings
familiar to me. Increasingly I listen to Mr. McBride and I hear Mr. Ballmer, as
perhaps you do as well. That is to say, I treat SCO now as press agentry for the
Microsoft monopoly, which has deeper pockets and a longer-term concern with what
we are doing.

[39:38]

Microsoft’s a very wealthy corporation, and it could succeed on a business model
of software-as-a-public utility surrounded by services in the 21st century. But
for all the profound depth of Mr. Gates’ mind, the idea of human freedom is one
of those things which doesn’t register very well with him. And the idea of
transforming his business into a service business, for reasons that are, I
think, accessible to us all, doesn’t appeal. Therefore, for the survival of the
Microsoft monopoly, and I do actually mean its survival, the theory being
presented by Mr. McBride that we are doing something horrid to the American way
of life must prevail. Regrettably for Microsoft, it won’t, because what we are
actually doing is more apparent to the world than that propagandistic view will
allow for. We at any rate have go on about our business, which is encouraging
the freedom of knowledge and in particular the freedom of technical knowledge,
and in doing that, we have to confront the actual challenges presented to us by
the world in which we live (which aren’t SCO), and so for just a few more
moments I want to talk about those.

Software is, in our phrase, free, libre. That is to say, we now have a body of
software accessible to everybody on earth so robust and so profound in its
possibilities that we are a few man months away from doing whatever it is that
anybody wants to do with computers all the time. And of course new things are
constantly coming up that people would like to do and they are doing them. In
this respect -- I say this with enormous satisfaction -- in this respect the
Free Software Movement has taken hold and is now ineradicably part of the 21st
century. But there are challenges to the freedom of free software which we need
to deal with.

Patent law, unlike copyright law, presents certain features which are egregious
for the freedom of technical knowledge. If the copyright law presents a workable
form of the great 18th century ambition of the perfectability of human kind, the
patent law regrettably does not. This is not surprising, 18th century thinkers
were a little dubious about the patent law as well. They had a concern for
statutory monopolies and a deep history of English law that made them worry
about them very much. Patent law in the 21st century is a collection of evil
nuisances. There's no question about it. And in the world of software where we
exist, there are some particularly unfortunate characteristics of the way that
the patent law works. We are going to have to work hard to make sure that the
legitimate scope of patent, which is present, but which is small, is not
expanded by careless administrators any further in the course of the 21st
century to cover the ownership of ideas merely because those ideas are expressed
in computer programming languages rather than in, say, English or mathematics.

This is work for us, and it is work for us which a lot of smart lawyers are
doing, but they are doing it around the world in various licenses and other
legal structures connected with software in inconsistent ways. And the
inconsistency among the ways in which lawyers are attempting to cope with the
threats posed to software by patents are a serious difficulty for us. We need to
conduct a very high-level seminar in the next five years around the world over
the relationship between patentability and free software ideas and get square
for ourselves what license terms and ways of working minimize the risks posed by
patents. There is what I would characterize at the moment as a constructive
diversity of views on that subject. But the diversity will have to be thinned a
little bit through an improvement of our thought processes if we are by the end
of this decade to have done what we need to do in subduing the growth of
inappropriate patenting and its effect on our particular form of human knowledge
enhancement.

As you are aware, and as I am spending a year writing a book about, there are
lots of other things going on in the Net about ownership. Music and movies and
various other forms of culture are being distributed better by children than by
people that are being paid to do the work. Artists are beginning to discover
that if they allow children to distribute art in a freehanded sort of way, they
will do better than they do in the current slavery in which they are kept by the
culture vultures, who do, it is true, make a good deal of money out of music,
but they do so primarily by keeping ninety-four cents out of every dollar and
rendering six to the musicians, which isn’t very good for the musicians.

So there is a great deal of fuss going on about ownership in the Net, and since
I care about more than just free software, I care about that fuss. I have a side
over there too. But the important thing for us in the conversation we’re
presently having is that the owners of culture now recognize that if they are
going to prop up their own methods of distribution, a method of distribution in
which distribution is bought and sold and treated as property -- and you can’t
distribute unless you pay for the right to do so -- unless they can prop up that
structure, they are done in their business models. And for them that requires
something which I truly believe amounts to the military occupation of the Net.
They have to control all the nodes in the Net and make sure that the bitstreams
that pass through those nodes check in before they go some place that the right
of distribution hasn’t been bought or sold in order to permit that bitstream to
go.

It is precisely because software is free, that the owners of culture have to
occupy the hardware of the Net in order to make good their business model. Free
software, like, for example, Ian Clark’s Freenet or other forms of free software
that engages in peer-to-peer sharing of data, or for that matter just free
software like TCP/IP which is meant for sharing data, presents overwhelming
obstacles to people who want every single bitstream to bear requirements of
ownership and distribution inside it and to go only to the places that have paid
to receive it. The result is an increasing movement to create what is in truly
Orwellian fashion referred to as trusted computing, which means computers that
users can’t trust. In order to continue to move for the freedom of knowledge in
21st century society, we have to prevent trusted computing and its various
ancillary details from constituting the occupation of the hardware of the Net,
to prevent the hardware from running free software that shares information
freely with people who want to share. Beating the trusted computing challenge is
a difficult legal problem, more difficult for the lawyer in dealing with
licensing and the putting together of software products than the original
problem presented by freeing free software in the first place. This, more than
the improvement of the free software distribution structure as we currently know
it, is the problem most before my mind these days.

But I would take one more step with you to discuss the problem that lies behind
the problem of free hardware. We are living now in a world in which hardware is
cheap and software is free, and if all the hardware continues to work pretty
much the way it works now, our major problem will be that bandwidth is now
treated in the world also as a product, rather than a public utility. And you
are allowed to have, in general, as much bandwidth as you can pay for. So then
in the world in which we now exist, though hardware is cheap and software is
free, there are major difficulties in disseminating knowledge and encouraging
the diffusion of science and the useful arts, because people are too poor to pay
for the bandwidth that they require in order to learn.

This arises from the fact that the electromagnetic spectrum too has been treated
as property since the second quarter of the 20th century. That was said to be
technically necessary as a result of technical problems with interference that
are no longer relevant in the world of intelligent devices. The single greatest
free software problem in the 21st century is how to return the electromagnetic
spectrum to use by sharing rather than use-by-propertization. Here again, as you
will notice, free software itself, free executable software, has a major role to
play. Because it is software-controlled radios, that is to say devices whose
operating characteristics are contained in software and can be modified by their
users, that reclaim the spectrum for shared rather than propertarian use. Here
is the central problem that we will be dealing with, not at the end of this
decade, but for the two or three decades that follow, as we seek to improve
access to knowledge around the world for every human mind. We will be dealing
with the question of how to make the technical and legal tools under our control
free the spectrum.

In attempting that trick, we will be confronting a series of owners far more
powerful than Microsoft and Disney. You need only consider the actual embedded
power of the telecommunications oligopolists in the society around you to
recognize just what an uphill battle that one will be. That’s the one that we
must win if we are to approach the middle of the 21st century in a world in
which knowledge is freely available to be shared by everybody. We must see to it
that everyone has a birthright in bandwidth, a sufficient opportunity to
communicate, to be able to learn on the basis of access to all the knowledge
that is there. This is our greatest legal challenge. The freedom of the software
layer in the Net is an essential component in that crusade. Our ability to
prevent the devices that we use from being controlled by other people is an
essential element in that campaign.

But in the end, it is our ability to unify all of the elements of the
information society -- software, hardware, and bandwidth -- in shared hands,
that is in our own hands, that determines whether we can succeed in carrying out
the great 18th century dream, the one that is found in Article 1 Section 8 of
the United States Constitution, the one that says that human beings and human
society are infinitely improvable if only we take the necessary steps to set the
mind free. That’s where we are really going. Mr. McBride’s company’s fate,
whether it succeeds or fails, even the fate of the International Business
Machine corporation, is small compared to that. We are running a civil rights
movement. We’re not trying to compete everybody out of business, or anybody out
of business. We don’t care who succeeds or fails in the marketplace. We have our
eyes on the prize. We know where we are going: Freedom. Now.

Thank you very much. [applause]

[51:32]

I’m delighted to take your questions:

Zarren: So, I’ve been asked by the media services people to make sure that when
people ask their questions, if they could speak into the microphone, that would
be good. There’s a little button that turns it on.

Q: I just wanted to ask a question clarifying and, well, anyway. . . You seem
to, or not, have expressed a dichotomy between software and hardware, in the
sense that software needs to be free, software is a utility, a public good.
Hardware you don’t talk about so much. And by hardware, initially I mean related
to software but then generalizable to machines, just any kind of machine. How do
you distinguish why should software be free and hardware not?

Moglen: The 21st century political economy is different from the past economic
history of the human beings because the economy is full of goods that have zero
marginal cost. Traditional microeconomic reasoning depends upon the fact that
goods in general have non-zero marginal cost. It takes money to make, move, and
sell each one. The availability of freedom for all in the world of bitstreams
hinges on that non, on that zero marginal cost characteristic of digital
information. It is because the marginal cost of computer software is zero that
all we have to do is cover the fixed costs of its making in order to make it
free to everybody, free not just in the sense of freedom, but also in the sense
of beer.

Hardware, that is computers and, you know PDAs, as well as shoes and tables and
bricks in the wall and even seats in a Harvard Law School classroom, has
non-zero marginal cost. And the traditional microeconomic reasoning still
continues to apply to it in pretty much the way that it did for Adam Smith,
David Ricardo, or Karl Marx. Reasoning about hardware is, in that sense, like
reasoning about the economy we grew up in and presents all of those questions of
how you actually cover the costs of each new unit that the market is designed to
help us solve. It’s precisely because so much of human knowledge and culture in
the 21st century no longer participates in the traditional microeconomics of
price, asymptotically reaching towards a non-zero marginal cost, that we
experience so much opportunity to give people what they never had before. And
when I speak to you about the difference between hardware and software I’m
implicitly observing the distinction between the traditional non-zero marginal
cost economy and the wonderful and weird economics of bitstreams, in which the
traditional microeconomic theory gives the right answers, but traditional
microeconomic theorists don’t like what they see when they do the chalk work.

Q: (unintelligible) Would you then advocate to, in other words, because
knowledge can be contained in hardware, and also hardware has this additional
marginal cost, would you advocate every, that for instance, for every computer
to come with chip diagrams so that the knowledge in the hardware is free while
you can still collect on the marginal cost?

Moglen: Sure, it would be a very good idea, and if you watch and see what
happens in the 21st century you’ll see more and more manufacturers deciding to
do precisely that, because of the value of empowered user innovation, which will
drive down their costs of making new and better products all the time. Indeed
for reasons which are as obvious to manufacturers as they are to us, the
softwarization of hardware in the 21st century is good for everybody. I’m
writing a little bit about that now. I don’t mean to plug a book, but wait a
little bit and I’ll try and show you what I actually think about all of that in
a disciplined sort of way.

Q: I was wondering if the SCO lawsuit might be the first of what could become a
series of lawsuits filed ad seriatim and in parallel against free software? And
wanted to get your view on two possible types of lawsuits that could follow on
the heels of SCO, regardless of whether SCO won or lost. The first would be a
lawsuit filed by a company that to its shock and amazement found that instead of
its programmers hoping for their first house, working on the stuff they were
supposed to work on by day, they were in fact spending most of their time
Slashdot and the rest of their time coding free software, and then occasionally
staying up late to do something for the old man. If those programmers have
signed, which is typical, agreements with their company that says any software
they write actually is property of the company, maybe even a work for hire, what
is the prospect that a company could then say, Our code through that coder has
been worked in to something like Linux, and it is now infringing unless we are
paid damages? The second possible way in which you could see this kind of
lawsuit come up would be, oddly enough, through the thirty-five year termination
rule, something that normally would be heralded by people in your position, to
say copyright law allows musicians and artists who stupidly signed agreements
when they were but small peons, without legal assistance with big companies,
thirty-five years later can take it all back, no matter what. They can reset the
clock to zero and re- negotiate. I call this the Rod Stewart Salvation Act.
[laughter] And while that might be helpful for the artists, much as the music
industry hates it, couldn’t that also mean that free software coders, who
willingly contributed, weren’t even blocked by their employers, to contribute to
Free Software Movement, could -- down the line -- and thirty-five years isn’t
that long in the history of Unix, say, "We take it all back?"

Moglen: So, those are two very good questions. If I answer each one of them
fully, I’m going to take too long. Let me concentrate on the first one, because
I think it’s really quite important. What Jonathan’s question does is point out
to you that the great legal issues in the freedom of free software have less to
do with the license than with the process of assembly by which the original
product is put together. One of the legal consequences of the SCO affair is that
people are going to start to pay closer attention all the time to how free
software products are put together. They are going to discover that what really
matters is how you deal with the questions of, for example, possible lurking
work-for-hire claims against free software. They’re going to discover that in
this respect, too, Mr. Stallman was quite prescient, because they are going to
recognize that the way they want their free software put together is the way the
Free Software Foundation put it together since now more than twenty years. The
way we’re going, they’re going to discover that they really would like to have
it, is for each individual contribution of code to a free software project, if
the guy who contributed the code was working in the industry, they would really
like to have a work-for-hire disclaimer from the guy’s employer, executed at the
same time that the contribution was made. And the filing cabinets at the Free
Software Foundation are going to look to them like an oasis in a desert of
possible problems. We saw that problem coming. We have tried in our act as
stewards over a large part of the free software in the world to deal with it.
People are going to want to have that up front for everything that they can
possibly, and they’re going to be much more reluctant to rely on software that
wasn’t assembled in those ways.

If you are thinking about working in the law of free software, and gosh, I hope
you are, one of the things you might want to be thinking about working on is the
software conservation trusts that are going to be growing up around this economy
in the next five years. I’ll help you make one, or you can come to work in one
of mine. We’re going to need to spend a lot of time doing work which is
associated with trustees. We’re going to be spending a lot of time making sure
that things are put together and they are built well. And we are going to be
doing that on behalf of a third-party insurance industry which is going to be
growing up, is growing up before our very eyes now, which is learning that it
really cares how the free software is assembled.

[60:05]

When you go to an insurance company and ask for fire insurance on your house,
they don't want to know how your house is licensed. They want to know how your
house is built. And the questions you are asking about how the free software is
built are about to become really important questions. What will abate those
lawsuits is that we did our work well or that we are doing our work well as
lawyers, assisting programmers to put projects together in defensible ways that
protect freedom.

Up until the day before yesterday, there were probably three lawyers on earth
who cared a lot about that, and two of them are in this room. There will be more
in the near future. I will say quickly about your second question, Jonathan,
that the problem presented is a serious problem, but, at least from my point of
view, a manageable one, and I'm willing to talk more about why, but I think we
ought to get more voices into the conversation.

Q: Without disputing the importance or difficulty of the spectrum battle, or the
. . . clearly the copyright battle and progress is very immediate, but it seems
to me that most worrisome right now is the patent battle that I expect to come
next. Compared to that, the whole thing with SCO, well, SCO is a paper dragon, a
hollow threat. Can you say anything about what you expect that battle to look
like? And how it will be fought? How it can be?

Moglen: Sure, Jeremy[?]. Patents are about politics. I thought that the
pharmaceuticals companies did my side a favor by buying us 12 trillion dollars
in free publicity in the last half decade by teaching every literate twelve year
old on earth that "intellectual property" means people dying of preventable
diseases because the drugs are too expensive because patents cover them.

Patents are politics. Patents are about how we distribute wealth over very long
periods of time, in quite absolute ways. We're not going to have an answer to
our patent problem which lies in courtrooms or in laboratories. We're going to
have an answer to our patent problems which lies in the actual conduct of
politics.

You saw the beginning of it this past summer when the European Parliament
decided, in a very unusual move, to refuse, and to refuse promulgation to the
European Commission's preferences with respect to changes in patent law in
Europe regarding inventions practiceable in software.

The European Commission put forward a suggestion for change and harmonization in
European patent law which would have made the issuance of patents for inventions
practiceable in software very much easier. The European parliament after a
lengthy campaign, led in part by the Free Software Movement in Europe -- that's
Euro Linux and the Free Software Foundation Europe and a lot of small software
houses in Europe benefitting substantially from the new mode of software as a
public utility -- a campaign which involved in the end 250,000 petition
signatories, the European Parliament decided to say no. And two parties, Greens
and Social Democrats, in the European Parliament now understand that patent
policy in Europe is a partisan issue. That is to say that there are sides, and
that electoral politics and party organization can be conducted around those
sides.

Our society is a much less aware one on that subject. For those of us who live
here, the task of getting to the standard set for us by our colleagues in Europe
this past summer is the first and most important challenge. We must make our
Congressmen understand that patent law is not an administrative law subject to
be decided in the PTO, but a political subject to be decided by our legislators.
We may have to restore actual democracy to the House of Representatives in the
United States in order to make that possible, and there are many other aspects
to the challenge involved.

But this is one of the primary respects in which technically sophisticated
people in the United States are going to have to get wise to the mechanisms of
politics, because we're not going to solve this in the Supreme Court, and we're
not going to solve this in the work station. We are going to solve this in
Congress, and we're going to have to build our muscles up for doing that.

[1:00:05]

Q: Related to that point, I'm curious, this isn't so much a legal point as a,
maybe even a public relations point. You opened up your talk by saying, This is
about freedom not free beer. But when you, I think, listen to people like Jack
Valenti and the RIAA, you know, and, Mr. McBride, the constant drumbeat is of
this idea of free beer and teaching kids that they can't steal from, you know,
Big Music. How do you win that battle of public relations on the ground, which
ultimately will have ramifications in Congress? How do you, how do you convey
that message outside the technology community?

Moglen: Well, one of the things that I guess I would say about that is that
English language fights us on it, right? One of the things that has happened
over the course of time in our European environments, where the word for free in
the sense of costless and the word for free in the sense of liberated are two
different words, is that people have twigged to the distinction much more
easily.

Software libre works nicely, or logiciel libre if you have to truckle to the
Academie Francaise, in a way that free software doesn't at making that
distinction. It was in part for that reason that some folks decided in the late
90's, that maybe they ought to try and find another phrase and settled on open
source. That turned out to have more difficulties, I think, than benefits for
the people who did it, though it now works very nicely as a way for business to
identify its interest in what we do without committing itself to political or
social philosophies that businessmen may not share or at any rate don't need to
trumpet just in order to get their work done from day to day.

So one of the things that we do, for those who speak English, is we actually
have to reinforce from time to time -- that is all the time -- the distinction
between free beer and free speech. On the other hand those of us who live in the
United States and speak English shouldn't have quite that much trouble because
free speech is a way more important part of the American cultural landscape than
free beer is. At least it was in the world that I grew up in, whatever Rupert
Murdoch may want to say about it now.

We are the party of free speech, and we need to point out to people that if you
allow anybody, including a well-dressed lobbyist of ancient, ancient vintage, to
declare that a love of free speech is like taking a CD out of a record store
under your arm, game's over. Not game about free software, but game about
liberty and life in a free society.

We stand for free speech. We're the free speech movement of the moment. And that
we have to insist upon, all the time, uncompromisingly. My dear friend, Mr.
Stallman, has caused a certain amount of resistance in life by going around
saying, "It's free software, it's not open source". He has a reason. This is the
reason. We need to keep reminding people that what's at stake here is free
speech. We need to keep reminding people that what we're doing is trying to keep
the freedom of ideas in the 21st century, in a world where there are guys with
little paste-it labels with price tags on it who would stick it on every idea on
earth if it would make value for the shareholders. And what we have to do is to
continue to reinforce the recognition that free speech in a technological
society means technological free speech. I think we can do that. I think that's
a deliverable message.

That's what I spend a good deal of my time doing, and while it's true that I
bore people occasionally, at least I think I manage, more or less, to get the
point across. We're just all going to have to be really assiduous about doing
it.

Q: I'll ask a question. You talked a lot about distribution and how you think
that ought to be free, and I think I see that argument much better than I see
the argument about how creators of zero-marginal-cost distribution goods will
necessarily be compensated for what they create, and so I've heard a lot of, I
don't think these are any of your arguments, but I've heard, OK, well, that the
musicians will go on tour, so they'll make it back that way, you know, whatever
time they put in. Or people will keep creating whatever it is they create -- and
this applies to more than just, you know, movies or music -- it applies to
books, or even non-entertainment-style knowledge-type things, there's gotta be,
you hear people will still do the same amount of it because they love to do it
or are interested to do it, but I don't think that quite compensates for the
compensation that many of those creators now receive. And so I was wondering if
you would comment a little bit on how the free distribution world, which differs
from the current world in that many of the current distribution regimes were
created specifically only to compensate people, will differ in terms of
compensating creators.

Moglen: I will say a little bit now, and in the interests of time also say that
you can find in the Net where I put stuff which is at
http://moglen.law.columbia.edu a paper called "Freeing the Mind", which
addresses this question, I hope comprehensively, or at least a little bit. Now,
let me give you an answer.

[1:10:17]

Historical perspective is useful here. Before Thomas Edison, there was no way
for culture to be commodity. Every musician, every artist, every creator of
anything before Thomas Edison was essentially in the business of doing what we
now have go back to doing, except those who lived in a world of goods that could
be distributed in print, for whom you only have to step back to before
Gutenberg. Right?

The commoditization of culture is a phenomenon of yesterday, with respect to the
deep history of human creativity. Whatever else we believe, and the problems are
serious, we have to remind ourselves that there is no prospect that music would
go away if it is ceased to be commodifiable. Music is always there. It always
was.

What you are asking about is, why do people pay for the things they care about,
in a way that will allow creators to go on making them? And the answer that I
need to give you is that people pay out of the personal relationship that they
have to the concept of making.

Musicians got paid by people who heard music, because they had a personal
relationship to musicians. This is what you mean by going on tour or the
Grateful Dead or anybody who uses the non-zero marginal cost of the theatre seat
as a way of getting back, just as people merchandise as a way of getting back.

Think for a moment about the coffee house folk musician, the singer/songwriter.
The simplest case in a way of the transformation of the music business. Here are
people who are currently on tour 40, 45, 50 weeks a year. What happens is, they
go to places and they perform and at the back, CDs are on sale, but people don't
buy those CDs as a kind of, you know, I would otherwise be stealing the music;
they buy it the way they buy goods at a farmers market or a crafts fair, because
of their personal relationship to the artist.

So let me tell you what I think the owners of culture were doing in the 20th
century. It took them two generations from Edison to figure out what their
business was, and it wasn't music and it wasn't movies. It was celebrity. They
created very large artificial people, you know, with navels eight feet high. And
then we had these fantasy personal relationships with the artificial big people.
And those personal relationships were manipulated to sell us lots and lots of
stuff -- music and movies and T-shirts and toys and, you know, sexual
gratification, and heavens knows what else. All of that on the basis of the
underlying real economy of culture, which is that we pay for that which we have
relations with. We are human beings, social animals. We have been socialized and
evolved for life in the band for a very long time. And when we are given things
of beauty and utility that we believe in, we actually do support them.

You think that this isn't true, because the current skin at the top of social
life says that that's not a robust enough mechanism to sustain creation, and
that the only mechanism that will sustain creation is coercive exclusion -- you
can't have it, if you don't pay.

But they can't be historically right, because the ability to coerce effectively
is a thing of yesterday. And the longer, deeper history of culture is the
history of the non-coercive mechanisms for securing compensation to artists,
only some of which we are now in a position to improve immeasurably.

Q: But what about the software writer?

Moglen: Ah, the software. . .

Q: That's the kind of stuff I think I was more getting at with my question. So
you have somebody who creates something useful but it has a zero distribution
cost, and it's useful in a way that's not, not useful like celebrity, though I'm
not sure, I don't think that's useful in some ways, but it's useful in the
different sense that it takes a long time to create well.

Moglen: See, the programmers I worked with all my life thought of themselves as
artisans, and it was very hard to unionize them. They thought that they were
individual creators. Software writers at the moment have begun to lose that
feeling, as the world proletarianizes them much more severely than it used to.
They're beginning to notice that they're workers, and not only that, but if you
pay attention to the Presidential campaign currently going on around us, they
are becoming aware of the fact that they are workers whose jobs are movable in
international trade.

We are actually doing more to sustain the livelihood of programmers than the
proprietary people are. Mr. Gates has only so many jobs, and he will move them
to where the programming is cheapest. Just you watch. We, on the other hand, are
enabling people to gain technical knowledge which they can customize and market
in the world where they live. We are making people programmers, right? And we
are giving them a base upon which to perform their service activity at every
level in the economy, from small to large.

[1:15]

There is programming work for fourteen-year-olds in the world now because they
have the whole of GNU upon which to erect whatever it is that somebody in their
neighbourhood wants to buy, and we are making enough value for the IBM
corporation that it's worth putting billions of dollars behind.

If I were an employee of the IBM corporation right this moment, I would consider
my job more secure where it is because of free software than if free software
disappeared from the face of the earth, and I don't think most of the people who
work at IBM would disagree with me.

Of all the people who participate in the economy of zero marginal cost, I think
the programmers can see most clearly where their benefits lie, and if you just
wait for a few more tens of thousands of programming jobs to go from here to
Bangalore, they'll see it even more clearly.

Q: So, author writes software. The moment the software is fixed in a tangible
medium, copyright attaches; others can't use it without further action by
author. Author chooses to adopt the General Public License to govern what others
can do with the software, and you made the intriguing point then that the
General Public License gives, with certain limits, and that's why, you point
out, nobody is really wanting to challenge it all that much because it would be
a Pyrrhic challenge. If you win and the license evaporates, then it rubber-bands
back to the author. That seems so persuasive, and almost proves too much,
doesn't it? Because, suppose another author writes software, writes for now with
the author and chooses to license it under the Grand Old Party License, by which
only Republicans may make derivative works, and other, what would otherwise be
copyright-infringing uses of the software. One, do you think such a license
should be enforced by the courts? And two, couldn't you say the same logic would
apply, that nobody would dare to challenge it because half a loaf is better than
none? At least, let the Republicans use the software.

Moglen: So, fundamentally I think the question that you asked is, Has the law of
copyright misuse evaporated entirely? And I think the answer, notwithstanding
the Supreme Court's current deference to whatever Congress chooses to say, is
no. I think there's still a common law of going too far out there, and as a
lawyer who works on behalf of people who are fairly militant on behalf of
sharing, I hear proposals all the time about stuff that they think it would be
really neat to do that I don't think the copyright law, unalloyed by further
contractualization will permit them to do.

I think the actual tool set of Berne-harmonized copyright law has certain limits
on the power of the licensor, and I believe that those limits are capacious
enough to allow us to create the kind of self-healing commons we have created,
but I'm not sure that they would be strong enough to permit the importation of
lots of additional contractualizing restrictions as though they were part of the
body of copyright law itself.

Moreover I'm pretty sure that if you tried to do it and succeeded in one
jurisdiction, you would find that the Berne Convention didn't actually export
all of those propositions around the world for you, and that therefore you would
have difficulty erecting a worldwide empire around the GPL Public License.

But I think you're correct to say another thing, which is that if there were a
number of self-defending commons raised on different principles around the
world, that that would create undesirable dead weight lawsuits, which is why I
spend a fair amount of time trying to help people see why the GPL is good and
doesn't require to be turned into the XPL and the YPL and the ZPL around the
world. In fact I think in the next few years, we're going to have a greater
consolidation of licenses, not a greater multiplication of them. But it's a
conceptual issue of importance, and it depends upon the belief that copyright
law all by itself permits some things and not others, and that you can only fill
those gaps with the kind of contract law that we try not to use.

Q: Can you recommend any economists who have studied zero marginal cost
economics?

Moglen: Well, see now, I sometimes joke with my dear colleague, Yochai Benkler
at Yale Law School, that Yochai is well-positioned now to win the final Nobel
Prize in economics. But I fear that that's not quite correct and that people are
beginning to flood in. I have a little bit this sort of feeling that sooner or
later I'm going to wake up and find out that in Stockholm they've decided to
award a prize to guys for teaching economics that we have known for 25 years.

[79:57]

Eric von Hippel is doing very important work about that, if you want to take
just people living in the neighborhood. We are beginning to get in our business
schools a bunch of people who are actually trying to think about these
questions, because they see billions of dollars being bet and in good business
school tradition, they tend to figure out that what rich businessmen and their
investors are thinking about is something they might want to pay attention to.

In the pure economics departments, unfortunately we remain a phenomenon too
disquieting to consult just yet. But PhD students, of course, do not always do
what their professors do, and my guess is that we are merely a few years away
from the beginning of some rocket science on these subjects.

It's an enormous, beautiful opportunity for the revision of a field. Even in an
economic, even in a discipline like economics, it is only so long that people
can be prevented from working on really interesting problems. And the day is
coming.

Q: Just a general question on market forces and the free software economy. Even
in an ideal world, wouldn't you say that, you know, because of the market forces
and then we, you know, a group of players become especially successful, then
they actually -- even though it's an ideal world -- they actually become
powerful enough and they monopolize under standards again, and we come back to
the same system we have today. So, I guess the question is that whether this
product-type system economy we have, is that just a function of the structure we
have, or is that, you know, a result of just market forces?

Moglen: Well, the structure that we have constitutes what we call market forces.
I wouldn't want to take the position that the market was a Newtonian mechanism
that existed in the universe independent of human social interaction.

Look, what we are doing is trying, through legal institutions directed at the
protection of a commons, to prevent that commons from suffering tragedy. Because
the content of that commons is capable of renewal and has zero marginal cost,
the tragedy we're trying to prevent is not Garrett Hardin's one, which was based
upon the inherent exhaustibility of natural resources of certain kinds. But
there is no question that the commons that we are making is capable of being
appropriated and destroyed in the ways that you suggest.

Those of us who believe in the GNU GPL as a particularly valuable license to use
believe in that because we think that there are other licenses which too weakly
protect the commons and which are more amenable to a form of appropriation that
might be ultimately destructive -- this is our concern with the freedoms
presented, for example, by the BSD license -- we are concerned that though the
freedoms in the short term seem even greater, that the longterm result is more
readily the one that you are pointing at, market participants who are free to
propriatize the content of the commons may succeed in so effectively
propriatizing it as to drive the commons out of use altogether, thus, if you
like, killing the goose that laid the golden egg in the first place.

So, to some extent, I would say, avoidance of the tragedy of the commons in our
world depends upon the structuring of the commons. Institutions alone, as I also
pointed out earlier in this conversation however, commons resources need active
management.

You, as a lawyer, will either engage in assisting to protect the commons or not
protect the commons. This is a form of natural resources law for the 21st
century. It is about the recognition that no machine will go of itself, that it
will require assistance to achieve its goals precisely in the way that you have
in mind.

The best National Park Law on earth won't prevent the poaching of the park if
there are not committed people willing to defend it. So you offer a general
theory of the possibility of commons destruction and I agree with you. I say two
things. We can design a better commons, and we can work our tails off to keep
that commons in being healthy, strong and well. That's what I'm up to. That's
what I hope you'll be up to as well.

Zarren: Please join me in thanking JOLT and Professor Eben Moglen.

[applause]

[85:30]

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