Intellectual property and the new eminent domain
On the renegade frontier that is the Internet, how much longer can anyone own anything? If you haven't heard the stirring voices of the Web proletariat demanding the redistribution of wealth for yourself, you soon will.
On one level, there are your bastions of e-commerce: Amazon, iTunes, eBay. But those increasingly seem to be the few isolated islands of legitimate capitalism in a violent ocean of finders/keepers entitlement to ownership.
Many of the most common types of Web thievery are known to the general surfer. These include music piracy (MP3 sharing), movie hacking and peer-to-peer exchange, and password cracking to lay claim to password-protected content of any type. The convenience of digital media and the seeming anonymity with which one can steal stuff has given the practice the momentum of a runaway train.
But on the fringes of that battle between hackers and security phreaks (which has generated an entire industry or ten amidst that conflagration), lies a more disturbing mindset. One that seems to fester and grow deep within the Web milieu. That is, can anyone ever really own anything digital?
This is on top of mind with me today as we fired another volley in the decades-long battle that is agency source file ownership. Ad agencies have traditionally retained dominion over their source art as a means of ensuring future work and residual income. Back in the day, this was actual artwork and printing film in a non-digital world where graphic artists armed with x-acto blades and type galleys and printing strippers were the wizards of commercial arts.
Then came the digital revolution. The initial shock and awe that the Mac brought to advertising kept its mystique for years. No one questioned file ownership. Then, everyone had a computer. And the software got cheaper. Then the software got easier to use. Then the hardware got more powerful. Then the peripherals and accessories let virtually every mom and pop with even a modicum of skill produce "professional" results. (Or gave them enough glossy satisfaction to sustain the illusion.)
In that evolution, several things happened in advertising. One of the most corrosive effects has been that services that once held high perceived value have been mentally cataloged as "should be cheap." Logo design is one of the most violated victims. These days it seems only the big megalithic branding agencies can still pull off charging tens if not hundreds of thousands of dollars for a worldwide brand logo. Some still manage to mediate usage licensing. But for the rest of us (and NOT just agencies our size), logo design has been reduced to the realm of "my son has Photoshop" or "I can get the kid up the street to do this for $50."
If this devaluation was contained solely to logo design, that would be one thing. But most print-based disciplines are held in relatively low-regard. While, ultimately the quality of the creative determines the efficacy of a piece, and many clients understand that, the act of integrating that creative idea into a physical layout is perceived as able to "just be thrown together quickly."
Back in the day (which I've actually been in the business long enough to witness "the day", which tells you how quickly the change has occurred), clients didn't demand source files from you. You said, "source files are ours, film and plates belong to the printers." End of discussion. That changed rapidly. Now, the prevalent theme across the board from clients is "I paid for it, I get all source files." Sometimes, if confronted, they do an end around and say "I just want a copy in case your building burns down or you go out of business." While that's a legitimate concern for some, for others it's a way to refuse being denied "their files."
Increasingly, the only recourse for agencies like us it to give it the old college try and then bend over and grab our ankles.
What's the harm in turning over source files, you say? Well, it screws agencies out of recurring revenue, reveals to many clients the "secret sauce" in the way you build things, and ultimately exposes your portfolio work to being corrupted by clients who think they're designers. So you lose jobs, teach your clients how to do things only you know how to do, and have them turn your pride and joy to crap which can ultimately reflect poorly on the agency when a project is left to mutate under the amateur eye of its new owner.
In our experience, some Web work and much interactive/video work still holds relative mystique. Many clients pay good money for it, and some don't demand ownership of files. Most of the time it's because they don't have video editing software, or know how to use Flash. But, the new YouTube-loving generation does. And it's only a matter of time until they start giving away the farm.
And that's a big fear about the whole future outlook...it's about free content. While that is often liberating and seems like the free market at its finest, it really isn't. It's virtual anarchy.
When I was in college, I worked in a copy shop for a few years. One of our big offerings was to create photocopy packets of class notes. Teachers would request them between semesters and then we'd sell them to students at the beginning of each session. During that time, Kinko's got the crap sued out of them for photocopying copyrighted materials for class notes. I recall us awaiting the verdict of that watershed national case and the impending fallout. Kinko's lost big time, and soon enough, new policies started trickling down to us. Before we could photocopy any book, we required signed documentation from the teachers, the textbook publishers, their mothers... It even became illegal for us to photocopy a book that a student brought to the counter. I seem to remember that we could only photocopy four pages, or something like that. When we'd turn disbelieving customers away from the counter, we'd point them to the crappy coin-operated, self-service machines and turn the other cheek.
Now I look back, and that was just a portent of the challenges to intellectual property ownership. In the height of the Napster brouhaha, Metallica sued the Internet darling and champion of Web surfers' "rights" over their distribution of unreleased material. Seems someone had a digital recording of one of the band's demo tracks (or unreleased recordings) and they immediately began sharing it via the Napster service. It spread like wildfire and Metallica sued, claiming it was losing future revenue from a track that never had the chance to be sold first. The hard-ass band and counter-culture sweetheart was then cast in a light of money-grubbing sellouts by many of the fans that chose to embrace the vigilante pathos of the Web rather than appreciate (and compensate) the band for their hard work.
The world was in the throes of change.
Now, iPod package warnings claiming "don't steal music" are as pervasive as "smoking causes cancer" badges on cigarette packs. YouTube (or GooTube as it's now affectionately called in its acquisition post-coital bliss) is constantly challenged on the legality of the videos its users post. Fox is going after it for posting the season premiere of "24" on the site hours after the show first ran, hoping to preserve sales of its DVD set that came out the weekend after. In fact, it is strange that the DVD set of the first two episodes literally came out days after the premiere. Usually they wait until the season's over...now it seems like they're accelerating their marketing. I'd venture to say it's them trying to cash in before the footage is all pirated and ubiquitous.
The very nature of YouTube being free and (currently) a non-revenue-generating entity seems counter-intuitive to its purchase price of $1.5B. You can be sure Google has ulterior motives, but on the surface, it seems weird.
People pirate copies of all the Microsoft apps, trying to "screw Bill". Almost the entire Asian continent peddles pirate software and movies, inspiring Hollywood to run those pathetic trailers of the poor gaffer who can't feed his family because little Jimmy Chan is ripping copies of "Saw 3" illegally.
But even as I type that and make light of their plight, it reveals how insidious the mindset is. I don't like Hollywood for all its excess and left-leaning agendas. I hate paying $12 for a movie ticket...it's obscene. So when those trailers come on, I, like dozens of others in the theaters, make some smart-ass comment about it. "Tough shit, dude" is the dominant sentiment. But just because I don't like Hollywood doesn't give me the right to steal their work.
Just because most of the world hates Microsoft doesn't give them the right to dupe copies of Windows. The open source movement would like nothing better than to devour everything Gates has begot. Then, without an enemy, it'll turn upon itself and burn Linus Torvalds-headed penguin dolls in effigy.
It's like the world is seething with an anti-establishment rage. People hate WalMart. They hate the government. They don't want to pay for music or movies. Even the encyclopedia business has been thrown to the Wikipedia dogs. As soon as people find a way to pirate free cell phone transmission, you'll see chaos like you've never witnessed before.
It's a creepy scorched earth mentality.
Someday, I still intend to write a book. Maybe two. While I'm interested in the exercise and inherent reward of doing it, I won't lie, I'd like to make some money off the deal. But I'm leery about the environment in which I'll find myself. Is conventional publishing next on the Internet chopping block? Blogging itself is a bird flipped at the mainstream media just as user-generated video is a nose thumbed at the networks. Will anyone buy books anymore? Books themselves are endangered as a physical form. When they go all-digital, I think the days of the "million copy bestseller" are over. You'll be lucky to sell 10,000 copies legitimately before people start emailing them back and forth like so much rubbish junk mail.
I look at how wedding photographers are increasingly succumbing to the pressure to release master files...no longer able to hold negatives hostage. Printers, having gone direct-to-plate digital, no longer retain the metal plates they used to store as leverage for reprints. And now I see how ad agencies like my beloved Binary Pulse are forced to confront the same challenges.
Yes, everything changes. The rate and amount of change invoked by the Internet continues to fascinate me, and I largely think it's all for the good. Certainly, it's more exhilarating than being stagnant. But I can't help but feel like the world is destined for an uncertain future in which commerce may look very different. I can almost foresee a kind of electronic bartering paradigm emerging. Money won't seem so important when you can steal everything digital for yourself.
If content is really king, we'll need to create items of rare and unique value as a medium of exchange.
Maybe the first short story I write will be offered as payment for the latest Mac OS.
People will paint portraits for a legal copy of the Lord of the Rings movies.
And maybe you'll really be able to get anything for a song.
On one level, there are your bastions of e-commerce: Amazon, iTunes, eBay. But those increasingly seem to be the few isolated islands of legitimate capitalism in a violent ocean of finders/keepers entitlement to ownership.
Many of the most common types of Web thievery are known to the general surfer. These include music piracy (MP3 sharing), movie hacking and peer-to-peer exchange, and password cracking to lay claim to password-protected content of any type. The convenience of digital media and the seeming anonymity with which one can steal stuff has given the practice the momentum of a runaway train.
But on the fringes of that battle between hackers and security phreaks (which has generated an entire industry or ten amidst that conflagration), lies a more disturbing mindset. One that seems to fester and grow deep within the Web milieu. That is, can anyone ever really own anything digital?
This is on top of mind with me today as we fired another volley in the decades-long battle that is agency source file ownership. Ad agencies have traditionally retained dominion over their source art as a means of ensuring future work and residual income. Back in the day, this was actual artwork and printing film in a non-digital world where graphic artists armed with x-acto blades and type galleys and printing strippers were the wizards of commercial arts.
Then came the digital revolution. The initial shock and awe that the Mac brought to advertising kept its mystique for years. No one questioned file ownership. Then, everyone had a computer. And the software got cheaper. Then the software got easier to use. Then the hardware got more powerful. Then the peripherals and accessories let virtually every mom and pop with even a modicum of skill produce "professional" results. (Or gave them enough glossy satisfaction to sustain the illusion.)
In that evolution, several things happened in advertising. One of the most corrosive effects has been that services that once held high perceived value have been mentally cataloged as "should be cheap." Logo design is one of the most violated victims. These days it seems only the big megalithic branding agencies can still pull off charging tens if not hundreds of thousands of dollars for a worldwide brand logo. Some still manage to mediate usage licensing. But for the rest of us (and NOT just agencies our size), logo design has been reduced to the realm of "my son has Photoshop" or "I can get the kid up the street to do this for $50."
If this devaluation was contained solely to logo design, that would be one thing. But most print-based disciplines are held in relatively low-regard. While, ultimately the quality of the creative determines the efficacy of a piece, and many clients understand that, the act of integrating that creative idea into a physical layout is perceived as able to "just be thrown together quickly."
Back in the day (which I've actually been in the business long enough to witness "the day", which tells you how quickly the change has occurred), clients didn't demand source files from you. You said, "source files are ours, film and plates belong to the printers." End of discussion. That changed rapidly. Now, the prevalent theme across the board from clients is "I paid for it, I get all source files." Sometimes, if confronted, they do an end around and say "I just want a copy in case your building burns down or you go out of business." While that's a legitimate concern for some, for others it's a way to refuse being denied "their files."
Increasingly, the only recourse for agencies like us it to give it the old college try and then bend over and grab our ankles.
What's the harm in turning over source files, you say? Well, it screws agencies out of recurring revenue, reveals to many clients the "secret sauce" in the way you build things, and ultimately exposes your portfolio work to being corrupted by clients who think they're designers. So you lose jobs, teach your clients how to do things only you know how to do, and have them turn your pride and joy to crap which can ultimately reflect poorly on the agency when a project is left to mutate under the amateur eye of its new owner.
In our experience, some Web work and much interactive/video work still holds relative mystique. Many clients pay good money for it, and some don't demand ownership of files. Most of the time it's because they don't have video editing software, or know how to use Flash. But, the new YouTube-loving generation does. And it's only a matter of time until they start giving away the farm.
And that's a big fear about the whole future outlook...it's about free content. While that is often liberating and seems like the free market at its finest, it really isn't. It's virtual anarchy.
When I was in college, I worked in a copy shop for a few years. One of our big offerings was to create photocopy packets of class notes. Teachers would request them between semesters and then we'd sell them to students at the beginning of each session. During that time, Kinko's got the crap sued out of them for photocopying copyrighted materials for class notes. I recall us awaiting the verdict of that watershed national case and the impending fallout. Kinko's lost big time, and soon enough, new policies started trickling down to us. Before we could photocopy any book, we required signed documentation from the teachers, the textbook publishers, their mothers... It even became illegal for us to photocopy a book that a student brought to the counter. I seem to remember that we could only photocopy four pages, or something like that. When we'd turn disbelieving customers away from the counter, we'd point them to the crappy coin-operated, self-service machines and turn the other cheek.
Now I look back, and that was just a portent of the challenges to intellectual property ownership. In the height of the Napster brouhaha, Metallica sued the Internet darling and champion of Web surfers' "rights" over their distribution of unreleased material. Seems someone had a digital recording of one of the band's demo tracks (or unreleased recordings) and they immediately began sharing it via the Napster service. It spread like wildfire and Metallica sued, claiming it was losing future revenue from a track that never had the chance to be sold first. The hard-ass band and counter-culture sweetheart was then cast in a light of money-grubbing sellouts by many of the fans that chose to embrace the vigilante pathos of the Web rather than appreciate (and compensate) the band for their hard work.
The world was in the throes of change.
Now, iPod package warnings claiming "don't steal music" are as pervasive as "smoking causes cancer" badges on cigarette packs. YouTube (or GooTube as it's now affectionately called in its acquisition post-coital bliss) is constantly challenged on the legality of the videos its users post. Fox is going after it for posting the season premiere of "24" on the site hours after the show first ran, hoping to preserve sales of its DVD set that came out the weekend after. In fact, it is strange that the DVD set of the first two episodes literally came out days after the premiere. Usually they wait until the season's over...now it seems like they're accelerating their marketing. I'd venture to say it's them trying to cash in before the footage is all pirated and ubiquitous.
The very nature of YouTube being free and (currently) a non-revenue-generating entity seems counter-intuitive to its purchase price of $1.5B. You can be sure Google has ulterior motives, but on the surface, it seems weird.
People pirate copies of all the Microsoft apps, trying to "screw Bill". Almost the entire Asian continent peddles pirate software and movies, inspiring Hollywood to run those pathetic trailers of the poor gaffer who can't feed his family because little Jimmy Chan is ripping copies of "Saw 3" illegally.
But even as I type that and make light of their plight, it reveals how insidious the mindset is. I don't like Hollywood for all its excess and left-leaning agendas. I hate paying $12 for a movie ticket...it's obscene. So when those trailers come on, I, like dozens of others in the theaters, make some smart-ass comment about it. "Tough shit, dude" is the dominant sentiment. But just because I don't like Hollywood doesn't give me the right to steal their work.
Just because most of the world hates Microsoft doesn't give them the right to dupe copies of Windows. The open source movement would like nothing better than to devour everything Gates has begot. Then, without an enemy, it'll turn upon itself and burn Linus Torvalds-headed penguin dolls in effigy.
It's like the world is seething with an anti-establishment rage. People hate WalMart. They hate the government. They don't want to pay for music or movies. Even the encyclopedia business has been thrown to the Wikipedia dogs. As soon as people find a way to pirate free cell phone transmission, you'll see chaos like you've never witnessed before.
It's a creepy scorched earth mentality.
Someday, I still intend to write a book. Maybe two. While I'm interested in the exercise and inherent reward of doing it, I won't lie, I'd like to make some money off the deal. But I'm leery about the environment in which I'll find myself. Is conventional publishing next on the Internet chopping block? Blogging itself is a bird flipped at the mainstream media just as user-generated video is a nose thumbed at the networks. Will anyone buy books anymore? Books themselves are endangered as a physical form. When they go all-digital, I think the days of the "million copy bestseller" are over. You'll be lucky to sell 10,000 copies legitimately before people start emailing them back and forth like so much rubbish junk mail.
I look at how wedding photographers are increasingly succumbing to the pressure to release master files...no longer able to hold negatives hostage. Printers, having gone direct-to-plate digital, no longer retain the metal plates they used to store as leverage for reprints. And now I see how ad agencies like my beloved Binary Pulse are forced to confront the same challenges.
Yes, everything changes. The rate and amount of change invoked by the Internet continues to fascinate me, and I largely think it's all for the good. Certainly, it's more exhilarating than being stagnant. But I can't help but feel like the world is destined for an uncertain future in which commerce may look very different. I can almost foresee a kind of electronic bartering paradigm emerging. Money won't seem so important when you can steal everything digital for yourself.
If content is really king, we'll need to create items of rare and unique value as a medium of exchange.
Maybe the first short story I write will be offered as payment for the latest Mac OS.
People will paint portraits for a legal copy of the Lord of the Rings movies.
And maybe you'll really be able to get anything for a song.





