Chamber Of Commerce Lies Again: Attributes Millions Of Jobs To IP Laws Based On Flimsy Correlation

from the that's-not-true dept

Remember how we were just talking about Senator Chris Coons, and the fact that maybe (just maybe) he was realizing that pushing for ridiculously over-aggressive "anti-piracy" laws without understanding the details was a bad idea? Yeah, apparently that lesson didn't sink in very well. On Wednesday, Coons appeared at an event put on by the US Chamber of Commerce (the main lobbyists pushing for PIPA and SOPA), in which he called for new SOPA/PIPA-like laws and cheered on some ridiculously bogus "new research" from the US CoC claiming that "IP Creates Jobs for America."

The "research" uses the same bogus and debunked methodology that the US Chamber's "Global IP Center" has been championing for a while. First, you define what industries are considered "IP-intensive." You make this as broad as possible, so you include (for example) the tech industry (they get patents!), even though they're among the ones fighting to stop SOPA/PIPA-like laws, and also fighting to reform patent laws that have restricted innovation. Great. Then you list out all the jobs in those industries. And then you falsely claim that those are jobs that were "created by IP laws."

Except almost none of that is accurate. But it is a neat (though shameless) political scam to count those who are opposed to these kinds of laws and pretend they're in favor of them. Shame on Coons for falling for such blatant propaganda. Perhaps he should talk to his son, who explained to him why the bills he supported earlier this year would cause significant problems for the internet.

Meanwhile, as a part of this program, it appears that they're releasing totally misleading and laughable state-by-state profiles of how many "jobs" were "created" by IP. Here's California's (warning: pdf). It claims that IP supports 55% of the jobs in California's private sector -- and certainly suggests that those jobs wouldn't exist if we didn't have stronger IP laws (what with the big banner right above it declaring "IP Creates Jobs for California."

Yet the data shows no such thing. At no point do they even try to show a causal relationship between more draconian IP laws and more jobs. Because they know they can't. Instead, they use this bogus lumping together of any job that sorta kinda touches on IP laws and the massively ludicrous suggestion that those jobs only exist because of IP. I can understand why the Chamber of Commerce is promoting such a laughable study -- but it's a shame that a politician who claims to know better would fall for it.

Filed Under: california, chamber of commerce, chris coons, jobs, pipa, sopa

SOPA Supporters Urge White House To Use Secretive TPP Process To Insert Draconian New IP Laws

from the sopa-reunion dept

We've been warning for a while about the TPP negotiations, and how the big interests who pushed SOPA were making a concerted effort to use the (very questionable and extremely secretive) nature of international trade negotiations to sneak through many of the things they wanted in SOPA, without any scrutiny. Make no mistake: while the public has no access to, or information about, what the federal government is negotiating, the big special interests are well informed. As pressure has been mounting against TPP, it appears that the US Chamber of Commerce has "brought the band back together," putting outa letter to the Obama administration explaining why draconian IP rules must be included in the TPP. The letter is signed by a who's who of SOPA supporters, including (of course) the Chamber of Commerce, the MPAA, the RIAA, A2IM, PhRMA, AAP, BSA, ESA and more. Basically, it's a bunch of also ran industry trade groups whining to the feds that they can't innovate anymore and they need economically damaging mercantilist-style protectionism.

For the TPP to achieve that vision, it is essential that the final TPP agreement incorporate comprehensive and high-standards for the protection and enforcement of intellectual property (IP) rights – including patents, trademarks, copyrights and trade secrets. And that outcome can only be achieved through continued and heightened U.S. leadership. By contrast, any attempts to weaken IP rights or to exclude any sector from protection must be strongly rejected and would be inconsistent with overall U.S. Government policy and U.S. economic and trade interests.

Almost nothing in that paragraph is accurate (or honest). The TPP can be a perfectly good trade agreement without touching on IP issues. It's just that, in the past few years, industry lobbyists have realized that sneaking IP law expansion through international obligations is a good way (they thought) to keep them under the radar, and to get ridiculous rules pushed through without having to go through the standard legislative efforts. In fact, deals like these often require changes to the laws after-the-fact, which is exactly what the industry wants. Because then, rather than arguing for a law because they know it will hurt innovative upstarts, they can just stand around pouty-faced, talking about how we have to "respect our international obligations."

Furthermore, there is tremendous evidence at this point that IP laws are way too broad and too draconian, and that's causing significant hindrance to innovation. Claiming that no weakening of IP laws can be allowed is a ridiculous and unsupportable maximalist agenda, designed not to help the US, but to lock in entrenched players at the expense of disruptive innovators.

We commend your Administration for recognizing the key role played by innovative and creative industries in driving economic growth, jobs and competitiveness. As recently highlighted in the March 2012 U.S. government report – Intellectual Property and the U.S. Economy: Industries in Focus – U.S. IP intensive industries support more than one in every four jobs, over one-third of GDP, and approximately 60 percent of exports. The protection and effective enforcement of IP rights are therefore of critical importance to the economic growth and prosperity not only of the United States but also of its eight TPP-negotiating partners.

This is a load of hogwash. The "report" used the US Chamber of Commerce's own totally discredited methodology to inflate numbers to ridiculous levels. Furthermore, the US CoC's interpretation that this report shows that enforcement is "critical" is, once again, complete hogwash. It assumes -- without any proof whatsoever -- that these IP intensive industries exist because of strong IP laws.

What the letter conveniently ignores is that some of the largest players -- and the fastest growing ones -- included in the list of "IP intensive" industries were the tech companies who fought against SOPA and who have complained about enforcement and protection levels being way, way too high. To use those industry's own growth as proof of the need for greater enforcement isn't just disingenuous, it's downright obnoxious.

As you and your Administration have repeatedly recognized, strong IP protections have been an essential element in fostering the explosive growth in new and more efficient technologies, increased productivity, life-saving medicines and other health technologies, as well as a wide variety of creative and educational works. As a result, high-standard IP protections are a key driver of economic growth in the United States and overseas and are linked to the creation and retention of jobs in industries as diverse as consumer and industrial products, educational products and entertainment, scientific products and equipment and information and communications technology.

Ah, flattery. And yet, there is no evidence to support the statement above. In fact, research has shown that IP laws do not, in fact, lead to explosive growth in technologies. Rather, the laws tend to lag growth -- showing that massive growth often happens in the absence of such laws or with weaker laws. The laws are then put in place to protect the leaders against new upstarts. This is exactly what the signatories of the letter are trying to do.

While the benefits of strong IP protections and enforcement are widely supported throughout the United States and safeguarded in our Constitution and laws, such protections are at serious risk in the ongoing TPP negotiations. Some seek to enshrine low standards of protection, with limited enforcement, in the final TPP agreement, arguing that U.S. proposals would be harmful and could undermine other interests.

Actually, some seek to push back on the ridiculous excesses of those who signed this letter, in order to look out for what actually benefits the public the most. Shocker, I know, but these laws are supposed to (we're told) benefit the public. Of course, the letter attacks such claims as well:

The strong IP protections proposed by the U.S. government in the TPP negotiations do not represent, as some suggest, a threat to public health, the development and expansion of the Internet or rights of freedom of speech, but rather a much-needed response to increasingly sophisticated threats to IP protection throughout the world. More, not less, rigorous IP rules are needed to thwart the explosion in IP infringement, including of pirated, counterfeit and unlawful copycat products throughout all sectors of the economy, and trade-secret theft.

Notice how these groups don't even hide the fact that they know what IP protections are being proposed by the US government in the TPP negotiations. That's because they're heavily involved in the process. You know who's not? The public. When special interests -- especially ones with a history of trampling all over the public interest -- get to help write the laws and the rules, while the public is kept in the dark, it's a pretty safe bet to expect that the public will get trampled again. Sorry, special interests, but saying you won't trample the public interest, while not letting the public into the debate, isn't that convincing.

Furthermore, we're already seeing such laws harm public health, hurt internet development, and be used to attack free speech. We can provide tons of examples. So claiming that it won't do more of that is a laughably ridiculous assertion.

What's also true is that never has expanding IP laws and enforcement been successful in "thwarting" infringement. It may work briefly, but within months, people find other ways to infringe. The only thing that works is encouraging real innovation in the field -- enabling startups to enter the market and do cool new things. Let them compete with "piracy" and innovative companies can and do succeed (though the industry then wants to shut them down or squeeze more money out of them). Yet the TPP isn't about enabling disruptive innovators. It's about giving slow, lumbering legacy companies who don't want to adapt the ability to kill innovation.

In their essence, the arguments against strong IP protections are largely based on the misguided assumption that strong IP protections advance only the interests of IP exporting countries and disadvantage countries with less well developed IP-dependent industries. In fact, the adoption of strong IP protections by all countries in the TPP and more widely promotes strong benefits for all, whether or not the country has developed its own major IP-based industries

Citation needed. Seriously. Because tons upon tons of studies have shown exactly the opposite.

Developed and developing countries that have adopted stronger IP protections have proven better able to develop their own technological, science, creative and other innovative and IP-dependent industries, advancing their own economic growth, productivity, exports, innovation and the interests of their workers and consumers alike.

This is lying by use of correlation, rather than causation. The real relationship is the opposite of what they're saying. The innovation almost always precedes the increase in IP protections, which then grant the leaders the ability to stifle upstarts and innovation they don't control. While it's true that developed nations have stronger IP laws, that's more about crony capitalism happening after the fact, rather than stricter laws being the cause of the innovation and growth.

The letter, in typical fashion, is a complete joke. The claims don't stand up to any sort of scrutiny. The authors must know this, but in a political world, they can get away with being extremely disingenuous.

Filed Under: chamber of commerce, mpaa, riaa, sopa, tpp

U.S. Chamber Of Commerce Releases Latest Bogus Study Pushing For More Draconian IP Enforcement

from the details-missing dept

The US Chamber of Commerce (which many people mistakenly think is a government organization -- it's not) has a long history of getting the facts wrong about intellectual property. The folks at the Chamber of Commerce have one basic mission, which is to protect the big businesses that fund it. And what better way to do that then to have the government help give them monopoly rights and then enforce those rights. The latest is that it has released a report which it falsely claims proves that stricter IP enforcement would boost the economy. But that's not what the report actually says. The Chamber of Commerce hired NPD Group to write this report, and you can read the results yourself (pdf). It's significantly weaker than even the most ridiculous studies we've seen in the past.

Basically, what the report does is talk about "IP-intensive industries," noting that they have created a lot of jobs. Then it picks twelve random "non-IP-intensive industries" and notes that they spend less on R&D and have lost jobs. That's it. But the conclusions it comes to are not supported by the facts. It takes several logical leaps as follows:

• Because an industry is considered "IP-intensive" it is only successful because of intellectual property laws. That's simply not true. In fact, a study by CCIA showed that exceptions to intellectual property law contribute more to the economy in those industries than the IP law itself. The problem here is falsely assuming that any kind of "IP-intensive industry" is only possible or only successful because of intellectual property. And yet, the actual research suggests that the vast majority of that economic activity, while perhaps in "IP-intensive" industries has little, if anything, to do with intellectual property law or its enforcement.
• Second, it assumes, but does nothing to support, the idea that stronger enforcement increases output in "IP-intensive" industries. In fact, actual research has shown the opposite to be true -- and that in cases where weaker enforcement occurs, output and economic activity increase.
• It assumes that because the industries it picked contributed more jobs to the economy, that's because of intellectual property law. Yet, there's little evidence to support this basic claim. In fact, history has shown that increasing IP strictness often decreases jobs by limiting competition.
• Finally, the report also assumes that IP-intensive industries are on the rise because of intellectual property law, not other massive shifts in the global market. Of course knowledge industries are growing in the US as agricultural and manufacturing jobs move elsewhere. But that's not because of intellectual property law. It's because of the natural progression of the economy. That the "non-IP intensive industries" it randomly chose to include (things like wood, textile, and paper) are on the decline is not due to intellectual property law at all. Claiming it does, as the report implies, is incredibly intellectually dishonest.

The report is a joke, based on a series of faulty assumptions. Tragically, the US Chamber of Commerce still gets attention, despite the fact that its claims pushing for stronger IP laws would do a lot more harm than good for most US business and innovation.

Filed Under: chamber of commerce, draconian, intellectual property, studies