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A Decent way to Pay Artists
By viscix, Section GNU-Friends
Posted on Sun Nov 3rd, 2002 at 05:22:40 GMT

Reconciling the need of artists to get paid and citizens to enjoy freedom in the digital age is not going to be easy. Using the best aspects of the market and the technology today, however, it may be possible to do just that. This is a rework of other ideas that might easily be put into practice today, and even on a limited scale could provide an outpost of freedom in a world rocketing toward overregulation.

 

The need bring the rules of copyright in line with the realities of the digital age is widely accepted, but there is a huge divide of opinion as to how this should happen between the owners of recorded culture and the citizens to whom they sell access. Few of the citizenry currently accept the idea that they have an ethical obligation to pay upwards of $15 for access to a CD when the culture it contains could easily be provided for a few cents worth of electricity. On the other hand, the largest owners of culture (as represented by RIAA, for example) see no reason that citizens should be allowed nearly free access to a CD which cost millions to produce and promote. What both groups claim to understand is that artists should be paid. Unfortunately for most of us, the large culture-owners currently have the political clout to dominate the discussion.

Before the digital age was fully realized, the most powerful owners of culture managed to secure their investment by imposing taxes on the media (DATs) that threatened them. This did not secure payment for artists, but it kept the powerful interests happy and that was enough. The same cannot be done again, however, as no legitimate argument can be made that hard drives and CDR's are largely the tools of "piracy," even if one accepts that definition of sharing. Nor can it be taken seriously that the artists would benefit, even if such were to happen. So the owners of culture have turned their energies toward criminalizing the citizenry and taking control over all digital tools. In the process, they threaten the entire technology industry, eliminating possibilities of innovation. They threaten free speech, shutting down internet radio and limiting other forms of digital broadcast. Of course they also plan to fight free culture, declaring war on P2P and seeking extensions to the terms of copyright. They even threaten those artists in whom they have no interest, re-raising barriers to entry in what many consider a deliberate attempt to stifle future competition. In the face of all of this, the citizenry might readily re-consider a tax upon their storage media, but that is no longer an option. All the resources available now are tied up trying to keep the very worst of the culture-owners' plans from coming to fruition. Even as this happens, many uninformed or disempowered citizens add their money to the power of the culture-owners, buying their entertainment and technology for lack of better solutions. We pay for the creation of future chains.

There is, of course, a way out. Many artists, shunned by the large culture-owners, have discovered the possibilities of the digital age and have been willing to give up control of distribution in the hopes of reaching a willing audience. But the tools to ensure that they can make a living at this have yet to be implemented, and already the large culture-owners have chilled interest in a technological solution and laid the seeds of doubt in the citizenry, some of whom begin to think that giving in to the new regulations really is the only way.

But what if we could voluntarily pay a "tax" on digital recording media or network access, on the promise that profits would reach the appropriate artists? There are some databases where one can pay to access music on the assumption that a portion will reach the artists, but once that music is accessed there is no reason to assume further sharing will necessarily benefit the artists or the database owners, so there are still powerful drives to control the culture. Suppose that a few makers of high-quality CDRs, (and later, providers of high bandwidth access) voluntarily surveyed their customers about their legitimate sharing of culture and distributed a portion of profits accordingly. The donation fund might easily come from a slightly higher cost to the customers, who might reasonably choose to pay that cost to ensure that the needs of their freedom can be preserved without costing the artist her living. Under such circumstances, the technology provider and the artist compliment each other, the work of each improves the interest of the citizen in that of both.

The most important aspect of this idea is not that it is completely new or infallible, but that it could be tried now, with only a minimal effort and minimal risk. A small internet recording label already offering free downloads might offer to sell blank CDR's at a slightly increased price, or a company already selling high quality CDR's might drum up business by offering free music downloads to customers. A group such as evolution radio might combine the two, continuing to broadcast Free music while adding high-quality downloads in exchange for a donation or purchase of blank CD's. An artist might put up a site with their music free for all, and simply ask that those who wish to share it consider choosing a CDR supplier noted for being especially good about making donations. Everyone would be perfectly fair in pointing out that only by purchasing an audio CD directly can a person get perfect quality audio. While no one can promise that this would solve all the problems associated with the new digital age, it would allow us to start small, coming from a place of mutual trust and agreement, rather than the one of hostility and cynicism proposed by the established culture-owners.

--
This idea is an largely extension of one Richard Stallman proposed in 1992, called The Right Way To Tax DAT. Many of its other elements have been floating around the internet for some time.

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A Decent way to Pay Artists | 5 comments (5 topical, editorial) | Post A Comment
[new] A different approach (#1)
by hgolden (#445) () on Tue Nov 19th, 2002 at 07:49:42 GMT
(User Info)

I also want to have a decent way to pay artists, but I see things from the opposite perspective, so I favor a very different system than what viscix imagines.

viscix begins, "Reconciling the need of artists to get paid and citizens to enjoy freedom in the digital age is not going to be easy." [Emphasis added].

My (opposite) perspective, is "Individuals are responsible for seeking their own happiness, and the best system devised so far to encourage that is based on voluntary exchange. To be voluntary, exchange must not be influenced by force or fraud."

I consider the two perspectives opposite because the first is a top-down view (externally imposed on the individuals to achieve an end that is somehow decided to be valuable), while the other is bottom-up (the individuals seek their own happiness making exchanges of value to the other).

viscix asserts, "Few of the citizenry currently accept the idea that they have an ethical obligation to pay upwards of $15 for access to a CD when the culture it contains could easily be provided for a few cents worth of electricity." viscix can speak for himself and those he has surveyed about their sense of ethical obligation, but he is incorrect in saying that those who disagree are only a few. I know that I do accept the idea that I have an ethical obligation to pay what the creator asks for (or do without), and I know more than a few who agree with me about this.

viscix doesn't talk explicitly about the need of the person who wants to access the "culture" on the CD. However, I believe he is implicitly stating that the need justifies paying less (or nothing) to the creator than the asking price.

I don't think that Richard Stallman agrees with the idea that the consumer should decide unilaterally how much the creator will get. While Stallman doesn't like the use of the word "creator," I'm not sure what other word applies in many situations. (Please suggest an alternative you prefer.)

For example, if a musician records his own words and music, I believe he is entitled to charge whatever he wants to for you to listen to it, either once, or whenever you want. It is your decision whether or not you want to pay the price. If you think the price is too high, then your best course is to decline to pay it and do without. This would be an example of an impasse due to the inability to agree on a price.

Does it matter how much it costs the musician to provide the music to you? Not as I see it. If you are willing to pay the price asked, make the deal. Otherwise, decline it. If enough people are willing to pay the price asked, the musician will be happy, but if he sets the price too high, then he won't get much business, and he'll probably decide to lower the price. In economic terms, he will try to maximize his profit.

The important thing to realize is that profit is not just measured in money. Most likely, the musician also is looking for people to hear his music, so he will have an incentive to lower the price to get more people to pay for it and listen to it. He profits not just from the money he receives, but also from the sense that his music is heard and enjoyed by people. Therefore, the non-monetary profit of the positive reaction of his listeners will be boosted by lowering the price to attract more listeners. How the musician will balance the monetary and non-monetary profits will depend on his own preferences. A musician without any reputation will probably give his music away for free to attract listeners. A well-known musician may charge more than average. No matter what the price, you still aren't forced to buy.

Does your "need" for the music justify a unilateral attempt to set the price lower than the asking price? I don't think so. As I see it, if you pay less than the price which the musician accepts voluntarily, then you aren't having a voluntary exchange. Whether you call this theft or piracy or free speech or sharing, the important point is that you somehow believe that you are entitled to use and enjoy something that you didn't create and set the price unilaterally.

Perhaps I have misunderstood Richard Stallman, but I don't believe he advocates that consumers should unilaterally set prices. When he advocates free software, he does so from the point of view of a voluntary system, not a mandatory one. Those who have mistakenly called Stallman a communist haven't understood this essential difference. He isn't trying to achieve a dictatorship of the proletariat or any other kind of dictatorship. He wants to create a situation where sharing is voluntary, where sharing is profitable. Once the collection of free software reaches a certain level in a particular application area, proprietary software will not be profitable. While Stallman doesn't like proprietary software, he doesn't condone copying it against the proprietor's terms and conditions.

As I see it, the desirable future isn't one in which consumers take whatever they can get away with, nor is it one where machines belong to someone else and only allow us to do what their owner permits, turning our personal computer into our personal jailer. Neither of these extremes is a voluntary society. Today, the dialog is a war between two extremes, each pole rightly condemning the other. Unless we are willing to accept either anarchy or totalitarianism, we must condemn both.

As to viscix's specific proposal, I must admit that it isn't that clear to me. Certainly, though, the current stranglehold that publishers (who viscix refers to incorrectly as large culture owners) have over content is coming to an end. The intermediaries add little value to creations, and the Internet reduces the barrier to enter the market to the point that the artist can publish his own work. Therefore, I believe we will see less and less the model where the publisher acts as gatekeeper and keeps the lion's share of the revenue.

What will encourage consumers to pay artists? In some ways, I think the best analogy will be what encourages diners to tip waiters. It will come to be expected, and one who doesn't will be shunned.

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