D E C E M B E R 2 3,
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1999 IS SHAPING
up to be a good year for lawyers. This fall saw the
patent lawyers out in force, with Priceline suing Expedia over
Priceline's patented "name your own price" business model, and Amazon
suing Barnes and Noble for copying Amazon's "One-Click Ordering." More
recently, it's been the trademark lawyers, with Etoys convincing a
California court to issue a preliminary injunction against etoy.com,
the Swiss art site, because the etoy.com URL might "confuse" potential
shoppers. Never mind that etoy.com registered its URL years before
Etoys existed: etoy has now been stripped of its domain name without
so much as a trial, and is only accessible at its IP address
(http://146.228.204.72:8080). Most recently, MIT's journal of
electronic culture, Leonardo, is being sued by a company called
Transasia which has trademarked the name "Leonardo" in France, and is
demanding a million dollars in damages on the grounds that search
engines return links to the MIT journal, in violation of Transasia's
trademark. Lawsuits are threatening to dampen the dynamism of the
internet because, even when they are obviously spurious, they add so
much to the cost of doing business that soon amateurs and upstarts
might not be able to afford to compete with anyone who can afford a
lawyer.
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The commercialization of the internet has been surprisingly good for
amateurs and upstarts up until now. A couple of college kids with
a well-managed bookmark list become Yahoo. A lone entrepreneur founds
Amazon.com at a time when Barnes and Noble doesn't even have a section
called "internet" on its shelves, and now he's Time's Man of
the Year. A solo journalist triggers the second presidential impeachment
in US history. Over and over again, smart people with good ideas and not
much else have challenged the pre-wired establishment and won. The idea
that the web is not a battle of the big vs. the small but of the fast vs.
the slow has become part of the web's mystique, and big slow companies
are being berated for not moving fast enough to keep up with their
net-savvy competition. These big companies would do anything to find a
way to use what they have -- resources -- to make up for what they lack
-- drive -- and they may have found an answer to their prayers in
lawsuits.Lawsuits offer a return to the days of the fight between the big and
the small, a fight the big players love. Ever since patents were
expanded to include business models, patents have been applied to all
sorts of ridiculous things -- a patent on multimedia, a patent on
downloading music, a patent on using cookies to allow shoppers to buy
with one click. More recently, trademark law has become an equally
fruitful arena for abuse. Online, a company's URL is its business, and a
trademark lawsuit which threatens a URL threatens the companies' very
existence. In an adversarial legal system, a company can make as
spurious an accusation as it likes if it knows its target can't afford
a defense. As odious as Amazon's suit of Barnes and Noble is, it's hard
to shed any tears over either of them. etoy and Leonardo, on the
other hand, are both not-for-profits, and defending what is
rightfully theirs might bankrupt them. If etoy cannot afford the
necessary (and expensive) legal talent, the preliminary injunction
stripping them of their URL might as well be a final decision. The definition of theft depends on the definition of property, and in
an age when so much wealth resides in intelligence, it's no wonder that
those with access to the legal system are trying to alter the
definition of intellectual property in their favor. Even Amazon, one
of the upstarts just a few years ago, has lost so much faith in its
ability to innovate that it is now behaving like the very dinosaurs it
challenged in the mid-90's. It's also no surprise that both recent
trademark cases -- etoy and Leonardo -- ran across national
borders. Judges are more likely to rule in favor of their fellow
citizens and against some far away organization, no matter what
principle is at stake. The web, which grew so quickly because there
were so few barriers to entry, has created an almost irresistible
temptation to create legal barriers where no technological ones
exist. If this spate of foolish lawsuits continues -- and there is
every indication that it will -- the next few years will see a web
where the law becomes a tool for the slow to retard the fast and the
big to stymie the small.
Clay Shirky is a contributing editor at FEED and Professor of Media Studies at Hunter College.
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