Sunday, June 26, 2011

TorrentFreak Email Update

TorrentFreak Email Update


The Red Flag Act of 1865

Posted: 26 Jun 2011 04:24 AM PDT

red flagIn the second half of the 1800s, cars started appearing in Western Europe. At first, they were powered by steam engines, and later by various liquid fuels. We’re currently seeing a rerun of the political game surrounding that development.

As industries become threatened by new technology, they typically embrace it in public and talk passionately about its potential, but only in terms of how the new technology can support the existing industries. Under absolutely no circumstances must the new technology be allowed to come into a position to replace the existing industries.

A famous example of this is the Locomotives Act of 1865 in the United Kingdom, better known as the Red Flag Act. It was a law that limited the speed of the new so-called automobile to 2 miles per hour in urban areas, and required them to always have a crew of three: a driver, a stoker (!), and a man who would walk before the automobile waving a red flag (!!).

The car was fantastic, but only as long as it didn’t threaten the railroad or stagecoach industries.

These industries, it turned out much later, were behind the lobbying that led to the Red Flag Act. The fledgling automobile industry stood to make the older industries obsolete, or at least significantly smaller, which could not be permitted. Therefore, they went to Parliament and argued how tremendously important their industries were, and claimed that their special interest was a public interest. Just like the copyright lobby does today.

Essentially, the stagecoach and railroad industries tried to limit the permissible use of the automobile to carry people and goods the last mile to and from the stagecoach and railroad stations. That wouldn’t threaten the existing industries, and they could pretend to embrace its usefulness.

Today, the copyright industry pretends to embrace the Net, but only inasmuch as they can keep operating as they always have. Any other use needs to be outlawed.

And sure, Parliament agreed in its time that the stagecoach and railroad industries were important. But Parliament made the mistake of seeing yesterday as the present time and eternal: those industries were only important before the technology shift that the car brought, a shift which was already underway. The special laws that these industries pushed through — with emphasis on the Red Flag Act — caused the inevitable technology shift to delay in United Kingdom, and therefore, the car industry of the United Kingdom lost considerable competitive edge against its foreign competition, being ten to fifteen years late into the game.

The moral of the story is that an industry troubled by technological advances should neither be allowed special laws nor be confused with the public interest, but instead be permitted to die as swiftly as possible, so that new industries and new jobs can take its place. If you do the opposite and keep that industry alive with artificial respiration and repressive legislation, you not only hurt respect for the law, but also the future economy and competitive capability.

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Rick Falkvinge is a regular columnist on TorrentFreak, sharing his thoughts every other week. He is the founder of the Swedish Pirate Party, a whisky aficionado, and a low-altitude motorcycle pilot. His blog at http://falkvinge.net focuses on information policy.

Follow Rick Falkvinge on Twitter as @Falkvinge and on Facebook as /rickfalkvinge.

Source: The Red Flag Act of 1865

Hotfile Battles MPAA Over Private User Data Disclosure

Posted: 25 Jun 2011 07:03 AM PDT

For Disney, Twentieth Century Fox, Universal, Columbia and Warner, their battle with the Hotfile cyberlocker service is developing into a costly and complicated affair.

The MPAA, who would love a decisive victory against a cyberlocker service under their belt, probably selected Hotfile because of its relative lack of might when compared to market leaders RapidShare and MegaUpload. The company also has a track record of settling lawsuits rather than fighting them. The outcome in the case, whichever way it goes, will have serious implications for others in the same field in the United States.

At this stage there are no indications Hotfile will roll over in this case, but as pages and pages of legal papers are filed and responded to, it is becoming increasingly clear that the MPAA is determined to play hardball.

In a filing from Hotfile dated June 17th, the company bemoans the tactics employed by the MPAA, describing their requests for information as “over-reaching” and tantamount to “murder by litigation.”

So what data does the MPAA want from Hotfile? In a single word – everything.

“In five short demands for documents and two related interrogatories, Plaintiffs seek all data referring to all files hosted by Hotfile, all data about Hotfile’s users, all data about Hotfile’s business partners [aka affiliates], every line of source code ever written, and virtually every conceivable piece of financial data available regarding Hotfile or its business partners or its individual founders,” Hotfile’s legal time write.

Nevertheless, it appears that up to a point Hotfile is prepared to comply with the requests of the MPAA. However, as the tables below show, the company is trying to protect the identities of users and affiliates as much as it can.

Hotfile v MPAA

The MPAA’s requests for disclosure go beyond user data. The Hollywood outfit is demanding that Hotfile hands over every version of the site’s source code that has ever existed.

Hotfile is currently resisting that request, describing its code as a trade secret which took two people more than 1,000 hours to create. Hotfile’s software gives it a competitive advantage, its legal team argues, and it would prove catastrophic if it fell into the wrong hands.

The case is becoming increasingly complex and is already developing into a bloody legal brawl. Will Hotfile continue to resist the temptation to settle in the face of “murderous litigation”, or will it concede defeat in the face of overwhelming opposition and financial resources?

Hotfile uploaders, downloaders and affiliates will certainly be hoping for the former.

Source: Hotfile Battles MPAA Over Private User Data Disclosure

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