Archive for November 20th, 2009

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Britain’s digital economy bill is a dud

November 20, 2009

Lynne Kiesling

Britain’s legal institutions may be about to get even more Orwellian than they already are (which is pretty Orwellian, given their widespread use of government CCTV surveillance cameras and their penchant for euphemism). The Digital Economy Bill, introduced in the Queen’s speech to Parliament earlier this week, is downright craven and very likely to violate scores of economic and social liberties. As summarized at TechDirt:

[It] includes massive changes to copyright law, including the power of the government to effectively change the law at will with little to no oversight. Basically, it would let the Business Secretary, Lord Mandelson, change copyright law through secondary legislation, which requires no Parliamentary approval. As people are noting, Mandelson has had to resign from elected positions twice in the past in disgrace, and is now in an unelected position. And he’s the guy who gets to change copyright law at will? That does not seem right. On top of that, the bill doesn’t even specify “three” strikes for users. Instead, it requires ISPs to notify users with warnings — and to notify copyright holders that they did notify users — and if file sharing is not reduced by 70% in a year (with no indication of how this is measured), then the government will tell ISPs to start kicking people off the internet.

This CNet.uk article characterizes it as

… confirming tortuously complicated proposals to combat copyright infringement by to-ing and fro-ing between ISPs, rights holders, Ofcom and the courts. It also paved the way for business secretary Lord Mandelson to rewrite copyright law …

The bill sets out a proposal for the business secretary to amend the 1988 Copyright, Designs and Patents Act as he sees fit. Should Parliament okay this proposal, twice-sacked unelected official Mandelson will be able to rewrite the law through secondary legislation — which doesn’t need to be approved by Parliament. It’s nothing short of a political land grab, and we’d hope MPs see sense and if nothing else kick this part of the bill into touch.

This proposal sounds like a seriously disturbing contravention of the political representation that characterizes a democratic republic, and what makes it even more disgusting is that it’s so clearly special-interest motivated by the entrenched recording industry, which is hoping that such heavy-handed government intervention can save them having to actually innovate and think about how their business model should evolve. It also ignores all of the studies that show that activities like file sharing don’t actually decrease music purchases, so if the recording industry bothered to think more broadly, they might actually come up with a sustainable business model.

As Cory Doctorow observed at Boing Boing,

This is as bad as I’ve ever seen, folks. It’s a declaration of war by the entertainment industry and their captured regulators against the principles of free speech, privacy, freedom of assembly, the presumption of innocence, and competition.

This proposal creates the office of Pirate-Finder General, with unlimited power to appoint militias who are above the law, who can pry into every corner of your life, who can disconnect you from your family, job, education and government, who can fine you or put you in jail.

That’s why I’m so deeply disturbed by this proposed legislation, even though I don’t live in Britain. I worry that it’s a harbinger of how our elected so-called representatives and the political institutions grounded in coercion and prone to special interest lobbying will continue to erode our economic and social rights. This authoritarian attitude, the money behind harnessing that attitude to serve specific entrenched interests, and the likely outcomes of such legislation are well worthy of the Orwellian epithet.

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Apparently “light-handed regulation” is actually a form of regulation

November 20, 2009

Michael Giberson

Tom Fowler, at NewsWatch: Energy, takes note of commentary by Tudor Pickering concerning a FERC investigation into whether three natural gas pipeline companies were over-recovering on their regulated rates. (See FERC press release here; a Reuters article.)

Tudor Pickering, an energy industry advisory and investment company, notes that since 1992 FERC hasn’t required periodic rate cases by natural gas pipelines, but rather has predominantly relied upon pipeline co. initiative or customer complaints to motivate changes in rates.  Rate cases are expensive for pipelines, customers, and regulators, so minimizing the number of rates cases can cut costs.  Even when customers complain, rates are typically settled by agreement rather than through new rate cases.  The 1992 policy switch was part of a “light-handed” approach to regulation that accompanied deregulation or restructuring of many other industries in the 1980s and 1990s.

Apparently now, however, disclosure regulations issued in 2008 resulted in FERC noticing that a few companies appeared to be over-recovering costs.  Not only did FERC notice, they’ve decided to do something about it.  Investigations will be launched, hearings held, etc.  Tudor Pickering finds this turn of events “disturbing.”  The “pipes probably assumed the FERC would continue to let market forces work,” but instead, Tudor Pickering observes in chilling tones: “So much for that. Big Brother is watching!”

Hmmm, who would have thought that, if you disclose information to the government entity regulating your rates, that the agency would use that information in rate regulation?  Apparently “light-handed rate regulation” is actually a form of rate regulation.

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Tres Amigas project discussed on public radio show

November 20, 2009

Michael Giberson

My most recent 15 seconds of fame*: The Environment Report: The ‘Tres Amigas’ Project. (Or, if you prefer, you can listen to today’s full 4:00 minute news segment.)

In the segment I make the outrageous claim** that the project is located in an area where many renewable power resources will be built.  The Environment Report is public radio news service focused on environment issues, they were interested in Tres Amigas transmission project because it is promoted as a “renewable energy hub.”***

 

*Actually, my part is slightly less than 15 seconds, closer to 12, but fame is generally parceled out in 15-unit intervals and I want it all.  The Tres Amigas segment is about a minute long.

**Actually, I make the relatively obvious observation described, but I’m trying to develop a reputation for outrageous claims in case, later, I want a job hosting a cable news program.

***For more substance on the Tres Amigas project, read the USA Today story, try my guest post at Alt Energy Stocks or see the earlier posts here at KP on the topic.

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