| Now I examine how current copyright law regulates 
              the intellectual product 
              and its components. Copyright regulates the copying of the physical 
              component of the intellectual product by granting the copyright 
              holder exclusive right to copy for the term of the copyright period. 
              Assuming this regulation is enforced and enforceable, all trading 
              of the intellectual product involves trading of physical objects 
              that are produced by the rights holder or their agent. These physical 
              objects are the physical manifestation of the intellectual product. 
              The principles of trading physical objects, such as a teapot, are 
              well recognised and these principles work in just the same manner 
              for the physical manifestation of an intellectual product such as 
              a printed book. In the case of printed books these physical trading 
              conditions work quite well in the cause of copyright because society 
              is relatively successful at applying the copying regulations to 
              books. Books are expensive and difficult to produce, needing special 
              equipment and materials, and few people will be able to undertake 
              illegal reproduction. Enforcing the regulations with only a small 
              number of offenders is therefore relatively easy. Others have identified 
              these self-regulating effects:  
              In the past, the very nature of the distribution media 
                limited fraudulent dissemination (i.e. copy degradation, reproduction 
                costs, trace ability, etc). [8]  Digital copies are also perfect replicas, each a seed for 
                further perfect copies. One consequence is an erosion of what 
                were once the natural barriers to infringement, such as the expense 
                of reproduction and the decreasing quality of successive generations 
                of copies in analogue media. The average computer owner today 
                can easily do the kind and the extent of copying that would have 
                required a significant investment and perhaps criminal intent 
                only a few years ago. [9]  Consider now that this book is published in digital 
              form on a compact disk (CD). In this case it is a very special CD 
              that protects its content in such a way that it can never be copied 
              and only ever viewed by one consumer at a time. The physical trading 
              conditions described above for the printed book would also apply 
              to this CD. In fact, regulating this special, copy protected, CD 
              should be more successful than the printed book that could have 
              been illegally copied from time to time. Is it possible to create 
              a special CD such as this?  I think not. Now consider this same book published in digital form 
              on the Internet. There are now no physical characteristics that 
              inhibit copying of the digital manifestation of the intellectual 
              product. I argue that the same conditions exist for this product 
              as in the two cases above except for the fact that regulating the 
              copying of the product becomes very difficult. The fact that multiple 
              copies have to be allowed for the system to operate further 
              complicates the regulatory process. Many consumers will be tempted 
              to hang-on to a digital copy, after they have traded it on, so that 
              they wont have to go to the bother of borrowing the product 
              back when they want to refresh their memories. Further copies will 
              tend to rest in computer memory or backup systems if not specifically 
              deleted. It seems to me that 
              these digital copies, the physical manifestation of the intellectual 
              product, have suddenly taken on some of the characteristics 
              of the intangible intellectual 
              component - they rest with each consumer as the intellectual 
              product as a whole is traded, lent, or otherwise distributed through 
              society. This is to say that, today it is so easy to make 
              a digital copy and sometimes difficult to delete all temporary and 
              backup copies that the consumer can be forgiven for thinking that 
              the digital copy equates to the intangible copy in their head. The 
              digital copy equates to the intangible copy that they appear to 
              be allowed to keep. The fact that most individuals also find it 
              difficult to completely remove an idea from their mind, once they 
              have heard of it, only reinforces the parallel. My definition, in the section above, of the intellectual 
              product is: Intellectual product  =  intellectual component  +  physical 
              component Now the digital manifestation of the intellectual 
              product tends to equate solely to the intellectual component 
              and only appears to have the traditional physical characteristics 
              at some point during a transfer from one individual to another: Digital 
              product = intellectual component + (ephemeral physical component)  
              The Digital Object Identifier 
                Handbook alludes to these less tangible manifestations - A 
                DOI can also be used to identify less tangible manifestations, 
                the digital files that are the common form of all intellectual 
                property in the network environment. No wonder that the copyright system is under pressure in these 
              digital times when the physical component it attempts to regulate 
              all but disappears  it tends to become intangible. Current 
              efforts to improve the digital copyright situation, from the producers 
              point of view, are aimed at increasing the inefficiencies 
              or barriers in the digital distribution system to try to make copying 
              of the digital product more difficult, make the product more tangible, 
              and therefore make regulation easier. These inefficiencies take 
              the form of encrypting files, adding watermarks, and centralised 
              hardware and software control systems. In many economic models reducing 
              the efficiency of information distribution adds a social-welfare 
              cost and this on the whole, I believe, is not a good result.  In 
              addition these artificial barriers to copying will probably only 
              have a short term impact because there will always be someone who 
              will devise a method of bypassing the restrictions. [14]  Inefficiencies in the distribution system cost 
              time and money and surely no one wants this. If the digital system 
              involves equivalent costs, delays and inconvenience as obtaining 
              a physical book what is the advantage of going to the digital system? I have previously shown that it is accepted by society that the 
              intellectual component is available to all as a common 
              right therefore it seems very difficult to understand why 
              the digital manifestation, which has more and more of the same characteristics 
              as the intellectual component, should not also be available to all. [15]  This position, which has 
              evolved with the emergence of the digital age, is the crux of the 
              current copyright problem; as the physical component becomes 
              pervasive it becomes less important and copyright control less effective. 
              In the next section I propose a new copyright philosophy 
              based the intellectual component of the intellectual property. |