Stop the ACTA (Anti-Counterfeiting Trade Agreement)

IP Law, Mercantilism, Protectionism
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I blogged a year ago about the “Secret intellectual property treaty [that] could profoundly change life on the Internet.” At the time, the text was still secret but it was believed that the treaty: “seeks to set forth standards for enforcing cases of alleged copyright and patent infringement.” Now, as Cory Doctorow notes in How ACTA will change the world’s internet laws, the text has been leaked. This thing is bad. America and the west have long tried to extend the reach of their mercantalist IP laws — they use the WTO to twist the arms of other countries, etc. (see, e.g., my previous posts Hatch’s “International IP Piracy Priority Watch List”; IP Imperialism (Russia, Intellectual Property , and the WTO); Russian Free Trade and Patents; Bush Wants More Jailed Citizens in Russia and China; China, India like US Patent Reform).

The ACTA is also similar to another arcane law, the Digital Millennium Copyright Act (DMCA), which, under the guise of protecting “property rights,” snuck in provisions that criminalize even the mere possession of technology that can be used to circumvent digital protection systems (see, e.g., my post TI Uses Copyright Law to Attack TI Calculator Enthusiasts). Likewise, under the guise or protecting property rights in inventions and artistic works (patent and copyright), it “seeks to provide legal authority for the surveillance of Internet file transfers and searches of personal property”. As one group notes, “ACTA goes way, way beyond the TRIPS (the copyright/patent/trademark stuff in the World Trade Organization agreement), creating an entirely new realm of liability for people who provide services on the net”. More invasion of personal liberty and property rights in the name of false, artificial property rights.

So the ACTA is like a hybrid of previous efforts: it is as abusive and insidious as the DMCA, and covers patents as well as copyrights. And it will apply worldwide. This is culmination of America’s efforts use of the WTO to extend western style IP rights worldwide. As Doctorow notes, this is “a radical rewriting of the world’s Internet laws, taking place in secret, without public input. Public input? Hell, even Members of Parliament and Congressmembers don’t get a say in this. The Obama administration’s trade rep says that the US will sign onto ACTA without Congressional debate, under an administrative decree.”

For detailed comments on the ACTA, please see the following report:

James Love, Comments on ACTA Provisions on Injunctions and Damages (pdf), KEI Research Note (Knowledge Ecology International, April 6, 2010).

[cross-posted at Mises blog]

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Net Neutrality Developments

Mercantilism, Protectionism, Technology
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net neutrality pictureIn recent years the “Net Neutrality” movement has gained steam. This is an effort by various statists, interventionists, do-gooders, meddlers, and techno-ignoramuses who seek to have the government forbid network providers (e.g. cable companies, telcos, and wireless carriers) from selectively blocking certain types of Internet use–for example, to require companies to give Web users equal access to all content, even if some of that content is clogging the network. Of course, as I noted on A Libertarian Take on Net Neutrality, the network neutrality movement is unlibertarian. There is nothing wrong with price discrimination or with charging different prices for different levels of service. As some anti-corporatist types are only too eager to point out, without state intervention the major telcos might well not have as much monopolistic power as they currently do. But it doesn’t make much sense to urge that the state engage in further intervention to fix the problem of previous state intervention. It is state intervention that is the problem.

In the latest development on this front, as reported in U.S. Court Curbs F.C.C. Authority on Web Traffic, cable company Comcast Corporation had challenged the F.C.C.’s authority to impose Net Neutrality rules. Last week, a federal appeals court ruled in Comcast’s favor, holding that F.C.C. regulators have limited power over Web traffic. As the article notes, “The decision will allow Internet service companies to block or slow specific sites and charge video sites like YouTube to deliver their content faster to users.”

Libertarians should not leap for joy, however. The court merely held that current federal statutes do not happen to give the F.C.C. quite enough authority to regulate Internet companies in this manner. They didn’t say it would be unconstitutional or even unwise. So all Congress has to do is pass a law. And they’re good at doing that.

Update: See my posts Kinsella on This Week in Law discussing IP, Net NeutralityAgainst Net Neutrality; and Fernando Herrera-Gonzales’s articles Net Neutrality: Unwarranted Intervention and Opening the Internet — with an Axe.

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Corporate Leftism: Questions About the University of Michigan’s Smoking Ban

Corporatism, Education, Nanny Statism, The Left
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Just less than one year ago, it was announced that the University of Michigan would institute a “smoke free” policy on all three of its campuses, finally banning smoking on all university property after incrementally banning it first indoors and then within fifteen feet of all entrances and exits to university buildings. The new policy is set to take effect on July 1st, 2011.

However, this proposed policy has caused significant and vocal opposition from members of the campus community. In particular, members of the University of Michigan College Libertarians, including myself, have led the efforts to reverse this decision.

Criticisms, up to this point, have focused heavily on the fact that this decision was made entirely from on high by President Mary Sue Coleman without the involvement of students, faculty, or staff. There have also been significant concerns regarding the justifications for the ban: representatives of the “Smoke Free University Initiative” have stated, interestingly, that the ban is not in response to concerns regarding second-hand smoke (the usual excuse for such measures), but rather for the purpose of creating a “culture of health.” This, it seemed, was particularly ridiculous: the university was engaging in blatant paternalism and trying to make personal health decisions for students, faculty, and staff. One of the most vocal opponents of the ban, Alex Biles, had a modest proposal of his own for promoting a “culture of health.” There were a variety of other concerns, of course, including the issue of enforcement, the costs of this policy to the university, the additional cigarette butt littering after the removal of butt huts across campus, and so on.

However, a massive break was made last weekend when it was discovered that President Mary Sue Coleman, architect of the policy, also just so happened to sit on the Board of Directors of the pharmaceutical giant Johnson & Johnson, which is the largest producer of smoking cession products in the nation, and received an incredible $229,978 in compensation. The College Libertarians quickly wrote up and sent out a press release regarding this development and the issue has spawned two articles in the most-read campus newspaper, the Michigan Daily, this week. This significant and obvious conflict of interest has never been addressed by Mary Sue Coleman and it was only through independent investigation that this was discovered.

This, of course, does not constitute evidence that the policy was motivated by her affiliation to the corporate giant. But, as Murray Rothbard insisted, we should not shy away from investigating such relationships and always asking, “cui bono?” when examining the genesis of government policies. What appear to be disinterested and benevolent actions by “public servants” are often motivated by far more sinister and self-serving reasons.

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Lower corporate taxes! (Even for GE.)

Business, Corporatism, Imperialism, Taxation, The Basics
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According to Forbes.com, I should be angry that General Electric pays less taxes than I do:

As you work on your taxes this month, here’s something to raise your hackles: Some of the world’s biggest, most profitable corporations enjoy a far lower tax rate than you do–that is, if they pay taxes at all.

The most egregious example is General Electric. Last year the conglomerate generated $10.3 billion in pretax income, but ended up owing nothing to Uncle Sam. In fact, it recorded a tax benefit of $1.1 billion.

Avoiding taxes is nothing new for General Electric. In 2008 its effective tax rate was 5.3%; in 2007 it was 15%. The marginal U.S. corporate rate is 35%.

General ElectricActually I am less than pleased with GE, but that’s because they possess hefty military contracts that allow our brave freedom fighters to slaughter poor brown people overseas, or whoever else refuses to submit to the empire.  They are, in Lew Rockwell’s words, true merchants of death, one of the worst examples of corporatism in the American economy.

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Libertarians regressing to unsound, and thus, unfair Economics

(Austrian) Economics, Mercantilism, Protectionism, The Basics
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Capitalism (by George Reisman) There is a trend among young and “eternally rebel” types to try and conflate Capitalism and Interventionism and call the mix “Corporatism” at best or just call it “Capitalism.” This of course is not only a conceptual, but also an strategic mistake. …

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