Ole, a Canadian independent record label, put forward an often-heard and much disputed proposal to enhance record label revenues: Ole wants ISPs to surveil Canada’s digital networks for copywritten works. In the record label’s filing on July 12 for the Digital Economy Consultations, entitled “Building Delivery Systems at the Expense of Content Creators,” Ole asserts that ISPs are functioning as “short circuits” and let music customers avoid purchasing music on the free market. Rather than go to the market, customers are (behaving as rational economic actors…) instead using ISP networks to download music. That music is being downloaded is an unquestionable reality, but the stance that this indicates ISP liability for customers’ actions seems to be an effort to re-frame record industries’ unwillingness to adopt contemporary business models as a matter for ISPs to now deal with. In this post, I want to briefly touch on Ole’s filing and the realities of network surveillance for network-grade content awareness in today market. I’ll be concluding by suggesting that many of the problems presently facing labels are of their own making and that we should, at best, feel pity and at worst fear what they crush in their terror throes induced by disruptive technologies.
Ole asserts that there are two key infotainment revenue streams that content providers, such as ISPs, maintain: the $150 Cable TV stream and the $50 Internet stream. Given that content providers are required to redistribute some of the $150/month to content creators (often between 0.40-0.50 cents of every dollar collected), Ole argues that ISPs should be similarly required to distribute some of the $50/month to content creators that make the Internet worth using for end-users. Unstated, but presumed, is a very 1995 understanding of both copyright and digital networks. In 1995 the American Information Infrastructure Task Force released its Intellectual Property and the National Information Infrastructure report, wherein they wrote;
…the full potential of the NII will not be realized if the education, information and entertainment products protected by intellectual property laws are not protected effectively when disseminated via the NII…the public will not use the services available on the NII and generate the market necessary for its success unless a wide variety of works are available under equitable and reasonable terms and conditions, and the integrity of those works is assured…What will drive the NII is the content moving through it.
Of course, the assertion that if commercial content creators don’t make their works available on the Internet then the Internet will collapse is patently false.




We are rapidly shifting towards a ubiquitous networked world, one that promises to accelerate our access to information and each other, but this network requires a few key elements. Bandwidth must be plentiful, mobile devices that can engage with this world must be widely deployed, and some kind of normative-regulatory framework that encourages creation and consumption must be in place. As it stands, backhaul bandwidth is plentiful, though front-line cellular towers in American and (possibly) Canada are largely unable to accommodate the growing ubiquity of smart devices. In addition to this challenge, we operate in a world where the normative-regulatory framework for the mobile world is threatened by regulatory capture that encourages limited consumption that maximizes revenues while simultaneously discouraging rich, mobile, creative actions. Without a shift to fact-based policy decisions and pricing systems North America is threatened to become the new tech ghetto of the mobile world: rich in talent and ability to innovate, but poor in the actual infrastructure to locally enjoy those innovations.