tide abdn pdf

6 September 2012 Trust in the digital economy: Aberdeen University 1

Trust in the Digital Economy

Regulation and trust in the digital

economy: an uneasy relationship

Ray Corrigan

Open University

2

Theory

3

Economic

4

Behavioural

5

ill-informed regulation DEA, CDB

6

Stakeholders

7

Stakeholders

Public (Citizen consumers)

Innovators/ Creators Agents*

* Business, public services, government (& civil society)

8

Trust

9

All 3 need to thrive

10

Balance

11

Invisible hand

12

Enlightened governance

13

Complex ecology

14

Net file sharing v music, online news v

newspapers, Amazon v bookshops

>50 Android patent cases globally

Samsung v Apple

Government v everybody

15

Behavioural forces in digital economy

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Social norms

Market

Built environment

Law

17

18

19

Digital Economy Act (DEA)

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S3-18: ISP copyright police notify subscribers of reported infringements

provide infringement lists to copyright owners

Obligations to limit internet access

Website blocking provisions (govt to abolish; Ofcom said unworkable)

21

Z depends on i) term ii) scope iii) penalties iv) case law v)enforcement

Strength of copyright ( Z )

C r e

a t i v e A

c t i v i t y

Zero Z C

( a ) Creators

Innovators/Creators

22

Societal welfare = (weighted) sum of consumers, creators & agents

Strength of copyright (Z)

To

tal co

nsu

me

r w

elfa

re

Zero Zconsumer

(b) Consumers

Consumers

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Music, film, software, media companies and publishers

Strength of copyright (Z)

Ag

en

t p

rofita

bili

ty

Zero ZA

(c) Agents

Za > Zc

Agents of creators

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Strength of copyright (Z)

Cre

ative

Activity

Zero ZC

Strength of copyright (Z)

To

tal so

cie

tal w

elfa

re

Zero ZS

Strength of copyright (Z)

Ag

en

t p

rofita

bili

ty

Zero ZA

(a) Creators

(b) Society as a whole

(c) Agents

Possibly Za > Zc > Zconsumers

Lined up

25

DEA Winners – some agents & creators

DEA Losers - agents & creators & public & trust

Public

Creators

Agents

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Communications Data Bill (CDB)

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S1 Blank cheque Secretary of State Power to ensure or facilitate availability of data

S9 Authorisations for obtaining data by police and other relevant public authorities

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ISPs DEA to CDB copyright police to surveillance agents of state

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Mass surveillance undermines trust Also doesn’t work

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CDB Winners – surveillance tech suppliers

CDB Losers - agents & creators & public & trust

Public

Creators

Agents

32

Governments don’t understand technology

Computers/Net Magic solution or

Terrifying problem

Net = TV on steroids / online shopping centre

33

Government ignorance bad for:

Innovators/creators

Agents

Citizen consumers

Trust

34

Public

Hugely forgiving of / blind to agents’ data gathering

(Convenience beats everything)

But data pollution = environmental disaster of

digital economy

36

Trust in digital economy?

E2E Net: global machine for springing surprises

Innovators/creators engage

Agents (care with architecture)

Regulators – get educated & Reed

Business – data pollution

Citizen consumers get educated & active

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