New Study From Booz & Co. Shows That SOPA/PROTECT IP Will Chill Investment In Innovation
from the indeed dept
Booz & Co., which is one of the most respected consulting/research firms around, has come out with the results of a new study, looking into how venture capital and angel investors will respond to new laws like PROTECT IP and SOPA, and found that a large majority of them would avoid investing in user generated content sites over fear concerning the liability.- A large majority of the angel investors and venture capitalists who took part in a Booz & Company study say they will not put their money in digital content intermediaries (DCIs) if governments pass tough new rules allowing websites to be sued or fined for pirated digital content posted by users.
- More than 70% of angel investors reported they would be deterred from investing if anti-piracy regulations against “user uploaded” websites were increased.
- More than 80 percent of the angel investors would prefer to invest in a risky, weak economy (with the current internet regulations) vs. a strong economy (but with the new, more stringent proposed regulations on copyright infringement).
- If the legal framework for digital content was clarified, and penalties on copyright infringement were limited for content providers acting in good faith, the pool of angels interested in investing would increase by nearly 115 percent.
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Filed Under: angel investors, copyright, investments, protect ip, sopa, studies, venture capital
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Adapt or Die ...
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I wouldn't want to be on your side of it when it does.
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do you mean not wanting to pay ridiculous license fees that keep a service from being profitable like pandora or netflix or do you mean we didn't turn the internet into broadcast television?
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Why should the tech community have to accept an IP based business model?
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Re: Re: Answer to "Why should the tech community..."
Why should the tech community have to accept an IP based business model?
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Because the "tech community" /relies/ on IP that they don't produce. If you don't /pay/ for the production of content, then you /don't/ get to use it to make money.
IF producing "content" is SO easy and profitable, then why isn't everyone in THAT business instead of "tech"?
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Re: Re: Re: Answer to "Why should the tech community..."
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Re: Re: Re: Answer to "Why should the tech community..."
Wait. Are you saying tech companies shouldn't get paid for providing services?
Isn't that like saying a waitress shouldn't get paid because she didn't cook the food?
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Re: Re: Re: Re: Answer to "Why should the tech community..."
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Re: Re: Re: Re: Re: Answer to "Why should the tech community..."
..some of the garbage i see on youtube with hundreds of thousands of hits.. unbelievable
i think if youtube was able to remove all content it didn't have rights to distribute, it would still be gang busters
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Re: Re: Re: Answer to "Why should the tech community..."
Because the "tech community" /relies/ on users that they don't produce. If you don't /attract consumers/ for the production of content, then you /don't/ get to use it to make money.
FTFY
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Re: Re: Re: Re: Answer to "Why should the tech community..."
You can argue with blue until your head turns blue but it's not going to teach him anything, no matter what language you use.
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Re: Re: Re: Re: Re: Re: Answer to "Why should the tech community..."
Nah. The Klingon language is much too intricate.
Perhaps the language of the Ravenous Bugblatter Beast of Traal would work.
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Re: Re: Re: Answer to "Why should the tech community..."
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We're the one's not compromising? Look how long copy protection lengths are. Look how absurd infringement penalties are. IP maximists practically get everything they want and we're the ones not compromising?
and your argument suffers from the middle ground fallacy.
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Why don't you ask the entertainment industry to stop using the internet and we'll see what that does to their profits.
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It's the content guys who need to compromise, no one else.
They need to provide a convenient, reasonable priced alternative to piracy, and people will pay. They just can't expect people to buy the same thing multiple times for different platforms at what people see as an unreasonable price for the means of distribution.
The days were "big content" can command monopoly prices are gone, and if they don't adapt, so too will they be...
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The tech industry was willing to and did engage in substantial compromises. What we didn't do is capitulate, which is what you really want. To techs, compromise is finding an equitable balance between the needs. To old media, compromise is giving them anything and everything they ask for no matter what.
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there comes a time to see when you're pretty much doomed either way, even if you win you win at a huge cost to everyone else including yourself
is it really worth living then?
might aswell make it quick and just pull the trigger yourself, end that misery
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OR
you can have the long drawn out loss disguised as a (hollow) victory in which everybody loses world-wide
copyright based industries are doomed and they know it, i am just at loss to understand why is it exactly that they think everyone else needs to be dragged down with them
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also, NO U
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The jurors in said cases are an even smaller minority. Only two cases (Thomas-Rasset and Tenebaum) have ever made it to jury, and said juries were staffed by technophobic people who lapped up the RIAA's words like phoenix balm. Your "we the people" is a misnomer.
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Couldn't this be used as a metric for SOPA?
Couldn't the chill in innovation investment be used as a metric?
How about jobs lost? Noninfringing matierial removed from the internet.
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Re: Couldn't this be used as a metric for SOPA?
Perhaps the smart ones will look for DCIs that have legal or supportable models, and be able to actually attract an audience and thrive.
It's hard to measure the "chill" in this case, because a lack of investment in A doesn't preclude them from doing B.
I would say that the study is a little bit one sided.
Oh yeah, let's play fair here:
"This report was financed by Google Inc."
Smells like they got the result they were looking for.
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Re: Re: Couldn't this be used as a metric for SOPA?
Can't have it both ways.
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Re: Re: Re: Couldn't this be used as a metric for SOPA?
If you aren't investing in X, what are you doing with your money?
Google wanted a specific set of answers, and paid for them. The survey has no crediblity, because it is financed by a company strongly opposed to SOPA, asking a group of people opposed to SOPA if they are actually opposed to SOPA. What the heck do you think the answer would be?
I think that there are many better questions that could have been asked, ones that would be much less slanted.
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Re: Re: Re: Re: Couldn't this be used as a metric for SOPA?
a: True
b: False
?
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Curtailing of Innovation
-Academic Entrepreneur
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You did it! SOPA-Dirt!
Almost as good as Super Troopers and the Cat Game...
"All right meow. Hand over your license and registration"
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Re: You did it! SOPA-Dirt!
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SO? Proves no /value/ in "user-generated" UNLESS means "pirated".
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Tell that to Facebook
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"venture capital and angel investors" = grifters
"VCs and angels are what make new startups possible" -- Not true. Ideas plus labor to produce actual goods are what /add/ value to society. Mike simply favors those looking for easy ways to skim values. Henry Ford wasn't under any such delusions (I don't recall exact quote): The product pays the workers.
Mike wants to further help those who get their products FREE from someone else -- whether user generated or pirated, it's someone other than the site owner -- and their income ALSO comes from someone who has REAL products: advertisers. The mentioned "VCs and angels" wish to just sit in the middle there and SKIM. That's no way to run a "capitalist" economy, it's JUST re-distribution!
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Re: "venture capital and angel investors" = grifters
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Re: "venture capital and angel investors" = grifters
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Re: "venture capital and angel investors" = grifters
Banks also want that money on their books and they will compete to get it. They will pay the 1%ers more interest to get it.
Don't think that the 99% are left out though. It works for them also. Next time you get a letter in the mail from a competing institution quoting lower mortgage/credit card rates than you are paying, take it to your bank manager and ask if they can at least match it. If they won't, change banks.
You are the customer!
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Re: Re: "venture capital and angel investors" = grifters
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All the money (and tax revenue) that could have been generated from Internet successes will be gone, starved in their infancy.
Just because something is worth investing in for how it'll benefit investors/customers doesn't mean it gets invested in. There's ways to build coal powered plants that create energy twice as efficient as any power plant in the US (most power plants run on coal even today). No one in the US has invested in it however, why? Because the start up costs are too expensive, and back when the technology was first thought up it was viewed as too risky. Now the Russians have that more efficient coal powered plants, and American investors still aren't willing to invest in it, since the Russians would charge them too much for using their technology, technology that was first dreamed of by an American inventor who tried and failed to get US investors and the US government to invest in his idea.
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VCs and jobs
http://www.techdirt.com/articles/20090920/1925336249.shtml
You probably just weren't very careful with your wording, and should have written something like "VCs and angels can help make new startups possible", but things like this feed into the paranoid fantasies of Techdirt trolls about how you make stuff up to suit whatever story you're writing at the time.
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