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The “long” and “short” cycles of history

Hobsbawm’s cover in the style of our times, really changes the context

Conflict, peace, conflict

One of the most influential works I’ve ever read is Eric Hobsbawm’s “long nineteenth century” trilogy on the development of society from the French Revolution through the industrial revolution. I read the final book, Age of Empire, in the days leading up to the 2016 election, while on a trip in Malaysia. Hobsbawm wrote with much evidence for many of his arguments but a relatively unsupported comment he made about the attitudes of the European elite in the leadup to WW1 have stood out to me more than anything else in his long analysis. A very rough summary would be that WW1 came about because young Europeans had not faced any significant external conflict in their lifetimes, and they were bored! Both I, and Hobsbawm, reduced multiple contributing factors to a general sense of angst, with no other good outlet to channel it. Could such a huge global era with a legacy lasting a hundred years really come about because of a vague ennui? The front page of the Malaysian newspaper the day I finished that book showed a big image of Donald Trump.

A lot has happened since 2016 that would support the idea that we as a global society are caught in a tension between the individual frustrations of a given populace, and world order that generally prefers peace (largely for economic reasons). Plenty has happened in the first 100 days of the second Trump administration which make me feel we are truly teetering on the brink.

The next end of history

If Francis Fukuyama coined the phrase “the end of history” at the end of the cold war, Hobsbawm had basically already found and called a prior end of history in his work on the long nineteenth century (though just a few years before Fukuyama). The insight at the core of Fukuyama’s declaration was that with the USSR’s collapse, the world was essentially unipolar (the USA), liberal democratic, and capitalist, and as such unlikely to continue in the manner of constant global conflicts as it had since the outbreak of WW1 (a range of time Hobsbawm called the “short 20th century”). Though Fukuyama’s reputation was then cast in stone for predicting some long-lasting peace, another of his comments in the same work has seemed at least to me to become more insightful – “If men cannot fight for a just cause… then they will fight against the just cause…for the sake of struggle”

McDonald’s Peace Theory in the style of Max Beckmann (ChatGPT 2025)

It’s been somewhat well-theorized that boom and bust cycles come around in human society every 50 years, though perhaps that’s a conclusion dictated more by the timeframe studied, a 150 year period with a large amount of tumult in the middle. The Belle Epoque that preceded the outbreak of WW1, and the 1990s and early 2000s in the US, invite comparison for the deepening of global interdependence and the rapid technological accelerations that were hallmarks of both eras, with clear pockets of outsized beneficiaries living lives drastically different from the disfavored. We like to point to concrete events like the assassination of Franz Ferdinand or Hitler invading Poland as the triggers for war, but Hobsbawm and Fukuyama both suggest the real reason is an underlying cultural whine that reaches a fever pitch. You could argue that the era from 1990 until roughly somewhere between Brexit in 2016 and Trump 2 in 2024 represented a “long 19th century”-esque period of calm; 30 years where the US was in a hegemonic global position and largely used that power to enforce a regime of democratic capitalism that, aside from small conflicts in the Middle East, kept global powers aligned and out of conflict. There are signs though that something about that era is fading and we may be coming into a “short 21st century”.

Are we entering a new “short” cycle?

Politics in the US since 2016 has seen a notable decline in politeness. “Polarization” is the more common term, but there’s something existentially more terrifying about the situation in the developed world in the last 10 years that goes beyond mere gravitation in preferences towards a pole on a policy issue. Trust in government surveys show we are today at an all-time low. There is a desperation across the populace. Two wars that have polarized populations across the world have sprung up in regions that otherwise had seen long periods of relative peace. And above all, people are mean! Why?

If we ARE entering a new short cycle, it is hard to conclude that it’s because of a decline in objective advantage for the US versus other countries. The US has been the dominant force in global GDP since the end of World War II. The only lag has been in the distance of the gap between the US and multiple other countries, specifically China, and the fear of looking in the rear view mirror and losing the lead (even though we will unquestionably have it) has motivated us to make decisions based on an assumption that we must maintain our hegemony at all costs. This Thucydides Trap is one way to understand the current political dynamic in America.

Regardless, the decision seems to have been made by the current administration that we must act now and drastically to do something about the above chart, and the action is to apply massive tariffs of some severity on every other country in the world. There are tons of reasonable debates going on about tariff policy as an economic tool, whether the policy is rolled-out well, whether it is a good fit for the problems the Republican party has suggested they will solve. It’s been a great month for the podcast industry and the financial newsletter industry. These questions all generally frame themselves as questions about the country GDP chart above, and the trajectories of the lines, and how to change them. These are important questions! But I’m not an economist, and I ultimately believe Trump won’t end up doing much of anything because the backlash is too severe. I’m also not certain that tariffs, or any of Trump’s other policies, are actually ABOUT GDP, or manufacturing, or any of their claimed goals, but rather exist solely as a possible response to the angst that Trumpism has captured.

The question I’m interested in is why there is such an angst to be captured. Specific economic or governmental policy aside, the objective data on the state of the United States has diverged from the sentiment of its people. Why, and what would need to happen to reconnect them?

Indicators of a Fracture

Social media isolation // over-exposure

The New York Times had a great article headline about crypto millionaires in 2018 – “Everybody is getting hilarious rich and you’re not”. The article itself was all about the runup in crypto prices that had launched many talentless idiots into a stratosphere of wealth usually reserved for people who had plied some valuable trade into the world, and the ways these fools were both wasting money in fantastic fashion while also making everybody else feel even more foolish for not having shared in their luck.

It’s a great headline, and an article that’s stuck with me, because it so well traces a dynamic that pervades our last ~10 years of internet culture. It’s not really that there are that many more people in the world richer than you, it’s that you SEE representations of of that wealth on social media in a pervasive manner. The perception that any given individual has of their own relative wealth is constantly challenged by these depictions of other people’s success. I’m not certain what life was like it 1980, but I doubt an average American was as inundated with images and videos of other people’s success (real or fake) like we are in the social media era today where videos of high-rise apartment tours in Miami garner millions of views. We may indeed live in an era of opulence, perhaps something we will only recognize fully in retrospect, but in past eras it was not so easy for the unlucky to see the lives of the lucky as social media forces us to witness today. TikTok, Instragram, and “X.com” have made it more likely than ever that a given person will somehow feel both far poorer than they are and relatively isolated in that reality – a sort of retrospective FOMO, because you already missed out.

The main subject of the NYTimes article is such a great encapsulation of this energy, and crypto if nothing else may be remembered as a wonderful barometer of the desperation to be wealthy that so many have. The article mentions a housekeeper who put all their money in crypto while acknowledging that they may “lose it all”. A technology that financially monetized FOMO is truly an invention of the 2010s and early 2020s, and perhaps inadvertently the price of bitcoin has become a direct tracker for people’s lack of faith in a more traditional system to make them hilariously rich. It’s easier then to understand the average person’s affinity for Donald Trump’s presidential pitch, which always resonates when he’s the challenger; MAGA is a “get rich quick” pitch, cast in the light of presidential legitimacy. And since get rich quick schemes don’t actually work, Trump seems to quickly lose his appeal once empowered to enact whatever policy is meant to rid us of the scapegoats that have not in actuality caused our perceived decline, or whatever economic or social policy he has promised with make us wealthy again does not.

Social media’s impact on our society is extremely under-studied, because a large percentage of the US population is in complete denial about technology’s ability to influence us so directly but subtly. But there is plenty of evidence that the major powers of the world view social media as a weapon in international competition – be it the significant Russian influence campaigns in the 2016 and subsequent US elections, or Chinese complete control of the narratives their own citizens are exposed to (and increasingly that a portion of the US is exposed to via TikTok), it’s reasonable to conclude that only the US has missed the boat in tracking and controlling the influence new media has on it’s own country.

Gamergate / and the Manosphere

My dad, a ~65-year old boomer who lives in the Midwest but is socially liberal, recently caught up on “The Last of Us” on HBO. After it’s conclusion he asked me if there was something about my generation and “characters in shows being gay”. My initial distaste for his question included, this short interaction encompasses something quite telling about the zeitgeist of our time.

As I wrote and thought about the impact of social media, and the decline in economic well-being, the rise of commonplace gender discourse particularly around “Men” and male aversion to “wokeness” felt as or more significant as any other single trend in tracing our path to the current moment. My dad inadvertently wandered into multiple of these topics at once in his simple “why is Ellie gay” question. My generation grew up with one somewhat significant civil liberty cause, the right to gay marriage. Prior generations fought for civil rights for minorities, or women, and our cause had been gay rights. We tidily wrapped that one up and then liberals in our country started to debate what to do next. Unfortunately the answer was “face complete societal resistance to every other issue you might choose”, be it guns, trans rights, or abortion expansion. Men, mostly white, but not just “conservative”, became the resistance to all of those issues.

Gamergate was a “movement” that arose in 2014 in the video game world, and in retrospect was one of the early signs that there was a simmering backlash against liberal social causes largely from white men. This was a sensible place to find this movement, if it was brewing generally; gaming, especially at the time, is a predominantly younger and more white, more male demographic. The inciting incident for the movement ended up being false, an early harbinger of the challenges we have today with ‘fake news’ and its ability to spread before it can be debunked. But the sentiment of the gamergate movement, that minority voices were being amplified to an extent that made the majority feel itself marginalized, is one that lines up quite well with cultural underpinnings of Trumpism and it’s naked majority culture self-interest.

As liberalism failed to find a new cause that appealed to a broad coalition, the essential narrative of gamergate pervaded into other parts of culture and took purchase as the “counter” to many stillborn socially liberal efforts. Many left-leaning commenters over the years pointed out that causes like trans rights, and purity tests around their support, would not be likely to yield a large coalition but their largely political observations understated the grave shift that was occurring. The covid pandemic proved to be quite an accelerator, particularly during the Black Lives Matter movement which likely did more to inspire Trumpism in white communities than it did to inspire anti-Trumpism in minority communities. Covid also pushed more people into an online bubble, where largely conservative voices had found success after themselves being pushed out of the mainstream. Ironically as the media landscapes flipped, the online bubbles became the mainstream, and now this land historically dominated by crackpots like Alex Jones became as influential in shaping public narratives around facts as previously mainstream journalism. The last election was likely more shaped by the words of Joe Rogan, Andrew Huberman, and Lex Fridman, than it was by Wolf Blitzer or Jake Taper, and at least some of Trump’s success was credited to a superior media strategy of targeting mass audience podcasts and their predominantly male listener bases, more recently termed “the manosphere”. The fact that a major Trump supporter and future unofficial cabinet member Elon Musk owned one of the largest social media platforms seems now under-considered as a factor in his win.

The short cycle of WMYONT (White Men Yelling On Twitter)?

In search for a single cause to explain the decline in comfort with the status quo in America over the last 10 years, I find many compelling signals of fragmentation. But as in prior antecedents to ‘calm’ global eras, our current moment feels more molded by an ennui that social media and a lack of an otherwise unifying cause have amplified. A gap, an abscess of meaning, that has been filled with amplified mild discomfort. But over time, the amplified discomfort became the problem – “White men yelling on twitter” is itself the problem, the cause of the problem, and ironically the solution to the problem as those loud caucasian males ended up in both the presidency and vice presidency. There’s no single thing they are yelling about, but rather a near endless sea of non-things, a fear of being drowned out // drowned by the non- white men that the liberal groups championed until those groups couldn’t find new populations to rally behind. It feels very stupid and unlikely that such non-issues should cause such tremendous issues (like destroying the foundations of our global economy), but is it surprising? Maybe it would have been predictable to the historians of the the long 19th century that decline would come not from a sudden violent act between nations, but instead after a long period of peace during which the memory of true conflict had faded enough to make not just blaming others for your problems but DOING something about it feel like a desirable course of action.

For a long time in considering China’s rise, I thought the US had nothing real to worry about. I thought that ultimately China’s success would mirror the success of the US, and as in the US a large middle class would emerge that demanded the same rights and protections that we have – namely, the right to free speech. Communist china would become a free market capital democracy in time, like most western nations became even from different cultural starting points. It seemed inconceivable to me that a nation could dramatically curtail free speech with a population of economic parity to ours, without that population either slowly fleeing, or slowly making political demands to unlock it at home. But a lot has changed in 20 years, nothing more than the advent of social media. Free speech means something quite different in the context of a newspaper, or a magazine, than it does on X.com. No technology in our history has done so much to evangelize erroneous, hateful, incorrect, and tribal views as social media, and we don’t seem anywhere close to addressing it as a society. Perhaps our mistake then isn’t in complacency or ennui, it’s in failing to appreciate that social media IS the grave threat to society, a threat we should take far more seriously and be willing to sacrifice far more to combat.

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What to do with Generative AI copyright law

“A superhero in a black and gray costume, with a cape and a mask, stands on top of a tall building at night. The costume has a bat-like symbol on the c…”

Context if you need it:

  • Midjourney, DALL-E via ChatGPT, and Stable Diffusion* all exist and can make images of Batman that seem to obviously be inspired by copyright material that the models have been trained on.
  • The NYTimes has sued OpenAI, and multiple other lawsuits exist between copyright holders and the model makers, alleging that there is copyright infringement under various legal theories.
  • Note: this post was written before OpenAI released their demo of Sora, which will warrant it’s own consideration of how close we are to some of the AI movie creation I note late in the post.

I love Midjourney, and Stable Diffusion (more into Automattic than Comfy). I have hundreds of hours in both. The first time you use a string of words to instantly generate an image that captures the essence of your meaning, often in a quirky or funny or surprisingly philosophical way, is a magic moment akin to that of the first swipe on an iphone, the first reply in a chat room – experiences with technology that happen once every decade, and undeniably change your view of what will be possible in the world forevermore.

AI is creating immediately copyright tension, like the internet before it. A very short version of this analysis would be to simply predict that the exact same scenario will play out with generative AI models, and indeed I think it is likely. Google and other web crawling sites were spared from any serious regulation in the US, and in fact Google won a somewhat precedent-setting case against booksellers that allowed them to scan copies of entire libraries so long as they weren’t reproducing the text for free (quite relevant to the analysis in the case of LLMs). In other venues Google either voluntarily or by regulation agreed to pay certain large publishers for the ability to show links to their content in searches. We live in a capitalist society and new technology is often an incredible aggregator of wealth, quickly and suddenly, away from old industries. Google killed many smaller business models, particularly those around content, and the larger ones had to cut deals to stay afloat. Laws were not suited to protect the old models, and there was little capitalist incentive or political will to correct it, so the old models suffered at the expense of the new. Likely the same will happen with generative AI, as OpenAI has quickly become one of the most valuable private companies on the planet. Congress’s ability to pass a law regulating technology is very questionable.

But let’s pretend that outcome is not inevitable, and that the United States will need to develop a framework for understanding the impact of Generative AI on creative work, and how to modify copyright law (if it should).

Copyright law and whats different with Generative AI

Copyright law has a basis in the Constitution, which says Congress can give authors rights to their work for a limited time. Many also assert a moral basis (which is really a capitalist basis) that an author deserves compensation for their work. Form that sprang our current copyright laws, which date to a law passed in 1976, and have held up surprisingly well despite the dramatic transformation of creation and distribution of content that has transpired in the ensuing 50 years.

I won’t do a comprehensive analysis of every element of copyright law as it applies to AI. The main surface areas of debate center on a few specifically:

  • Originality: A work must be original to be covered by copyright. Certainly the works ingested by LLMs are copyrighted. But what about the output? Is the cover image at the top of this post original? I told chatGPT to make an image of a batman like character. It’s certainly unique in the sense that I would image it’s the only one EXACTLY like it in the world. If I had drawn it by hand it would qualify as original (though there would be other issues), if I had used Adobe Photoshop to create it it would still qualify. More on this later.
  • Fair use: There’s a phrase in copyright law called transformation, which is something like a get out of jail card. Copyright law wants to make it clear that criticism, parody, etc are protected given our strong bias to enable First Amendment speech. So copyright law grants perhaps incredible leniency to behavior that would otherwise be considered infringing. This is a red herring in my mind; the fact that copyright materials are in some way processed by the algorithm before some ultimate end material is produced is essentially irrelevant. The algorithm itself has no intent, so it can’t be transforming a work for the sake of parody or critique. It matters far more what a user of a model does with the output, which is a case-by-case determination so unlikely to ever be the basis for a broad ruling on generative AI models and copyright.
  • Nothing else: Every other element is basically irrelevant as applied to the models themselves. This isn’t to say that there aren’t interesting questions related to the output of the models, but those decisions are unlikely to be the basis for a broad ruling about whether the models themselves violate copyright law as the cases against OpenAI and others allege.

How will current Copyright law play out with regards to the Generative models?

The NYTimes suit relies entirely on the premise that since GPT models are trained on a dataset which includes copyrighted NYT material, and it can reproduce something sort of like that material when prompted correctly, then it must be infringing. There’s more than 60 pages in the complaint, with lots of flowery language about the value of the news and how great the NYT is (I love the NYT and am a longtime subscriber). But all of that is going to be irrelevant to the legal question, which the court will do it’s best to analogize to the internet indexing of websites, and in general this argument is not very strong for the NYTimes. If it’s OK for google to index and reproduce the EXACT text of NYTimes articles with attribution, why would it be not OK for OpenAI to index and reproduce the INEXACT text of NYTimes articles with attribution? The fact that what LLMs produce is not exactly the copyrighted material, certain in image generators, and mostly in text generators, is pretty relevant. This is why it’s highly likely to me that the NYTimes suit will fail. LLMs may ingest copyrighted works in their training, but they output something different, so they aren’t actually reproducing the copyrighted work anyway.

And every other fact that OpenAI and other LLMs will present is pretty strong for them. It’s not exactly legally relevant (though the NYtimes complaint spends a lot of time on it anyway), but trademark has a concept called confusion regarding whether consumers would believe an infringing product is actually being sold by the original trademark holder or not. There’s NO chance anybody is going to ChatGPT asking for pictures of Batman and thinking that it is an official DC product. There’s similarly no chance that the people prompting ChatGPT to produce substantially similar text to NYTimes articles are confused that the information is not from the NYTimes. If copyright law is intended to protect a creator’s ability to profit from their original work, it seems very unlikely that an LLM is currently a substitute in any way for going to the NYTimes for news, or to a comic book store to buy a Batman comic.

What happens when Generative AI is a lot better?

The internet was primarily a distribution innovation as it regards copyright infringement – Napster was bad for record labels because it created unlimited and unrestricted access to song files. I can google the name of any artist and see their art, and make a copy of the file, and I sort of have the image now. You can email somebody a pdf of a comic book (if you have one). Congress passed the DMCA to make sure that access to copyrighted information wasn’t too broad with centralized providers, and largely that has struck the right balance, though the internet has still completely disrupted almost every form of media to varying degrees. Print media is essentially dead, the music industry has changed forever, etc. But it did not eliminate human creativity in the slightest, and arguably the internet greatly enhanced human creativity because the ability to distribute and access create works was democratized dramatically.

The words in the copyright act that the internet complicated were “reproduce” / “distribute”. It was not trivial to reproduce a song before the internet, at least not in a way that you could distribute it permanently to millions of people. Generative AI is not an access innovation, but an originality innovation. Indeed a big challenge for the cases currently made in court against Generative AI technologies is the fact that what they produce is not actually a copy, but something we have historically regarded as an original-enough reinterpretation. Generative AI ought to reframe our understanding of originality dramatically, both for written text and images, and soon enough for video as well. If you are willing to spend the money on the compute cost, you could conceivably assign a Stable Diffusion instance the task of creating an image for every possible super hero design, or every possible pokemon. You could ask an LLM to generate the first paragraph of every possible news story about the Middle East. LLMs have revealed something uncomfortable about human creativity; that it is more deterministic than we’d previously chosen to believe, and that the monkeys with infinite typewriters are here at our disposal right now.

Copyright law was intended to protect the creator of a work from it’s exploitation without receiving profit, and in some regard it does feel that Stable Diffusion, for example, is benefiting from the work of copyrighted material without giving any sort of compensation. Whether courts twist current law to conform is a somewhat irrelevant question because it seems inevitable that money will allocate correctly in due time to award the largest copyright holders with some modest compensation for the ability to train AIs on their works (ala Google indexing in the Web 1.0 era). This is a question of inputs rather than outputs.

On outputs, though, what to do with the reality that soon machines will be generating an infinite amount of content that likely outpaces and completely mimics, and thus replaces, much of the output of humans in the creative realm? The current stance of the copyright office that these works are not subject to copyright protection seems obvious to become obsolete quickly, either with pressure from the large corporations that produce much of the valuable copyrighted work in the world and who no doubt will use new technologies to make that work more efficiently and demand the capitalist system the operate under afford them the same protections for a script partially written by an AI as it does for one entirely written by humans. That iteration of the question seems, again, pretty obvious in it’s outcome, and for large studios, music publishers, news organizations, and the other major institutions that primarily benefit from copyright protections, not much will or ought to change. Whether The Avengers 12 is made partially with AI or not, Disney will find a way to ensure it is not freely available. Even if the budget for The Avengers 12 is reduced across the board with AI actors, AI voices, AI imagery, and an AI script, the cost to market and promote and distribute the movie will be plenty of incentive to ensure its creation also establishes a copyright protection.

The bigger challenge is 10 or 15 years beyond that, when I can simply ask ChatGPT to make Avengers 13 and show it to me. That sounds ridiculous now because inserted below is what I get currently when I ask ChatGPT for the same.

My contention here is that the image above is “original” in our current framing of copyright law, but also completely undeserving of any legal protection. If the output moved, and had mediocre dialogue, and a plot arc, and the villain lost in a startling comeback by the Iron Man character right as all appeared to be lost, would it be more original / more deserving? Disney / Marvel will likely make that movie and spend millions of dollars in all sorts of ways to promote it, and their efforts and investment in that regard deserve protection. But what if an AI COULD make not just 1 exact copy of that movie by complete chance, but also make, deterministically, every possible iteration of that movie if given the correct prompt and infinite chances to make it? On ChatGPT 12, when I ask for an Avengers movie, will that be as obviously unoriginal to us as the image above, and would it deserve copyright protection?

There strike me as being only one likely outcome, which is that nothing will change in copyright law at all. As long as copyright law protects output from AI models, then we are largely in the same place as we are today, and AI is just another tool in the toolbox of creative entities. Works subject to copyright have no intrinsic value other than what they are worth on the open market, and though AI tools will make it easy to flood the market with crap, the market will deem them worthless and they won’t be duplicated anyway. The best and most valuable works will be promoted, marketed, surfaced by social media, and otherwise invested in or chosen by the masses as having merit and exploiting them for profit will be similarly protected by copyright law.

The gap in this approach, though, is that it seems more likely than ever that media may evolve to be more adaptable to the preferences of an individual, and more valuable work over time will be co-created by the technology and the consumer. We call this “fan fiction” today, works made which generally blatantly violate copyright but have non-cannon plots and no distribution beyond tiny fervent communities. Fan fiction is largely ignored by the copyright holders because it tends to be non-conflicting with the main works, and suing your biggest fans is often a bad look. But what if a huge percentage of media was fan fiction? This is already starting to happen with entertainment like TikTok and Roblox, where the majority of the content is user generated using the tools at the disposal of the medium versus created / curated by large entities. It may not be far-fetched to imagine a future where the majority of content preferred by consumers is in some iteratively generated and modified by mass user input versus curated by teams of creatives.

In the internet days (eg 2001 -> roughly Nov 2022 when ChatGPT launched), copyright law did nothing, and though capitalism took over it did not save a key pillar of our society that was built on existing distribution models: journalism. There was a cambrian explosion of journalism models after the internet came of age and evolved, and essentially none of them worked for very long. Today you can find the nth iteration of techcrunch, and it is ironic in some respects that the NY Times is leading the way in suing generative AI companies, but ultimately the news lost the battle long ago when the business model that long sustained them (ads) found a more efficient home in the new technology that reduced their distribution costs to zero. It was not instantly that this was clear, it took many years and iterations of both social media and journalism on the internet to arrive at the conclusion, but ultimately the answer is that far more people get their “news” directly from social media than from any legitimate journalistic source today, and the social media companies earn a lot more from serving ads than the journalists do.

Now in the coming AI age (2022 -> ?), we will quickly face the problem in a different form. What key pillar of society suffers when I can ask GPT for Avengers 12 and get more than an ersatz replica of what Disney would produce? Much like google and facebook reproduced news until they choked the industry they siphoned from, I suspect the entertainment industry will be generally demolished by the coming innovations in AI; when you can get a custom version of the next episode of your favorite show, why defer to what a writer in Hollywood thinks you might like instead? I think the copyright implication of Generative AI technology in this generation will be that less and less of the content consumers enjoy comes from big publishers and producers, but from outputs of generative AI models in a 1-of-millions format, and is therefor not going to be covered by copyright. But copyright holders will have secured some fee on inputs into training models, and it’s likely you’ll be generating your custom Avengers 13 movie in a Disney owned and operated LLM anyway. And like the print media in the age of the internet, many of those copyright holders with whither away as the majority of the revenue in the industry moves from the creators of the IP to the technological innovators that control the most powerful LLMs.

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Spotify cover artists are making money while other musicians fight over payment

Spotify and musicians have been going back and forth for some time over the amount Spotify pays out. See here for a recent story on the issue.

Meanwhile, I’ve noticed an interesting phenomenon on Spotify and it seems to show that at least a few artists are benefiting from the licensing woes of their brethren. The phenomenon, which I’ll call Song Placebo, occurs where Spotify has failed to secure a license for a top radio song, thus signalling to pragmatic cover artists that a common search term on a service with millions of subscribers is open for business. If you google around, you’ll find that a listen on Spotify is worth somewhere in the neighborhood of $.007 – .01 per listen, and there is an argument that cover artists would probably reap a high amount of the absolute cash because they are less likely to be signed to a major label. Taking the high-end of that range then, a cover artist is probably reaping about $1 for every thousand listens on Spotify, give or take 20%.

So how prevalent is Song Placebo’ing? Probably more common than you think, and two artists in particular seem to have nailed it. Let’s look at some prominent examples.

Search results for Rihanna's "Stay" on Spotify

Search results for Rihanna’s “Stay” on Spotify

Rihanna’s “Stay” is certainly a hit, certified Platinum in the US with sales over 3 million, and radio success topping Billboard charts in multiple countries. But as the image above shows, it is nowhere to be found on Spotify.

The top hit is a cover by Shaun Reynolds, a UK-based singer-songwriter dude who is a leading prescription writer for Song Placebo. His cover of “Stay”, which is sung by a guest named Laura Pringle, has a whopping 19.8 million listens on Spotify. Opening up Shaun’s larger portfolio on Spotify reveals that Shaun quite likes him some covers, and his top 10 are all works originally (made chart-toppers) by other artists. “Stay” stands out, however, as the only one that seems to have gained any traction (his second most popular song has 200k listens, and his third just 20k). But at the conversion rate above, “Stay” has generated about $19,800 for Shaun. Not bad for a song he didn’t pay a dime to market.

Tyler Ward is another ‘popular’ cover artist in the Song Placebo game. Here’s what his top 10 hits look like:

Tyler Ward Spotify Profile

Tyler Ward Spotify Profile

As you can see, his top 10 is all covers. In contrast to Shaun Reynolds, however, many of the songs he has covered are actually up on Spotify, though in the case of a few of them at least, I know they were put up after Tyler had a chance to corner the market. Altogether, Tyler has more than 11 million listens on these covers alone, good for $11k.

Is there a video of Shaun Reynolds and Tyler Ward meeting, called “When Shaun Met Tyler”, you ask? Why, of course there is.

 

So no judgment on these artists, providing our Song Placebo before the big labels come to terms with Spotify on the details for the real deal. I’m sure Shaun and Tyler are hard-working, aspiring artists, using covers as a vehicle to push their brand while also making some income. No shame there.

But it opens up an interesting question about the legal justification for allowing “covers” of songs in the first place, and possibly questions about how much we really value an original recording versus a cover. 19 million people made it through Shaun’s version of “Stay”, and probably liked it (it’s a good cover)! In a world where artists are fighting to move payouts from $.007 per play to more than $.01, though, you have to wonder if Shaun and Tyler are helping to prove that we don’t need the real thing when an army of Song Placebo providers are willing to give us “the same” for less.

 

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Studying for the Bar

I’m out of toothpaste, I need a haircut, and my car needs an oil change. I must be… studying for the bar! See you in a few weeks.

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Would newspapers benefit from collusion over paywalls?

I’ve had almost no time to post here in the past few weeks, as I just began studying for the bar, but I wanted to take a break from studying Evidence and Torts for a second. I have owed my friend Brad Greenberg, a fellow UCLA law new-grad, some attention. Brad’s most recent contribution to the world of legal academia is available here, and it covers a topic that should be interesting to law nerds and normal nerds alike – the survival (or, alternately, impending doom) of the newspaper industry. And the discussion is currently as alive as ever, with recent discussion of the topic focusing on the New Orleans Times-Picayune laying off staff despite it’s profitability.

Brad’s paper can be broken down into a few key arguments:

– Newspapers need to make more money than they are making now to survive,

– Collusion to set paywall prices could save them, but antitrust law bans such action,

– Congress should endorse and promote an exception to the antitrust laws to save the newspaper and the United States itself (I added that last part…).

Typical for a guy with multiple published pieces who also blogs on the side, Brad’s piece is refreshingly easy to read for a law article – but that doesn’t mean I agree with his points. Actually, I disagree with just about every one of them. Originally I thought of reasons why each point was wrong – newspapers can make money without paywalls, newspapers could probably escape antitrust charges through signaling their concerted action anyway, points about how the last government-endorsed entertainment/news monopoly (cable) has set us back by a decade. But really, none of those things matter, because ultimately the newspaper is dead and our children simply won’t care because the world will be just fine without them:

Welcome to the 21st Century, now with 100% less Newspaper – 

Newspapers were lazy, crappy, overachieving businesses for decades. These weren’t glamorous jobs, necessarily, but they weren’t well-run businesses either. Major newspapers lived off of two major cash cows – the natural monopolies of the classifieds and print ads. The network effect of having everybody in town looking at the same few pages of paper everyday let newspapers turn 10 cents of ink into a $1,000 ad or a $100 classified. If you needed to fill a job opening in the pre-internet era, you went to the newspaper, and you paid whatever it cost. Couch to sell? Car to sell? Plumbing services to offer for consumption? Same deal. Call the newspaper. The rest of the business wasn’t particularly fine-tuned, because it didn’t need to be.

A decade of Facebook, Google Adsense, and Craigslist later, and suddenly those ad monopolies are gone. Newspapers now offer an unattractive product (ie we pick the news that’s important, deliver it to you in a physical format once a day, and you pay for it) compared to what the internet offers (ie you pick the news you want, whenever you want it, and you don’t pay for it). It’s a lot like what’s happening right now with cable: people are realizing they shouldn’t have to pay for the 200 channels full of shows they don’t watch when all they want is Mad Men and Game of Thrones, and they can watch those on-demand online (if not completely legally at this point).  The fundamental problem facing newspapers is the same one facing cable, but the newspapers don’t have any unique content. The papers that do have unique content (for example, the Wall Street Journal) are having less trouble staying profitable, because they have something they can charge for and make a margin on. The ones that don’t are struggling to drive readers to their website, because in all likelihood those readers are already getting that same news from the few sites that have successfully transitioned online already. Content with value will always find a way to get out – but most papers just don’t have much content of value, and that’s a business problem, not a societal one.

But Brad would tell me that I’m focusing too much on the business and not enough on the societal benefits of the newspapers; ‘why don’t you lament the loss of our bold muckrakers, Dan?’ he might contest. For the most part, I just don’t think there is any risk that the sort of injustice newspapers cover will go uncovered in a digital world. As newspapers die and websites take their place, journalists will make careers (though likely fewer) of breaking and covering the same stories as they did when those stories were cast in ink. Will that make it easier to “corrupt” the news with bribes? To corner the market on an area of journalism and subvert it? Who could say at this point, but the bottom line is, newspapers are on the way out and personally curated digital news has already taken over. I’m almost certain we wouldn’t have missed Watergate if we had only had Twitter to rely on, but only time will tell.

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Digesting the Fall console game season, lack of critical perspective on the medium

This fall was a big season for console games – basically every major release of the year came in the last 2-3 months, and very few blockbusters debuted outside the fall season. All of the blockbuster sequels are on an annual, November release schedule at this point, and this past month or two saw heavyweights like Call of Duty, Uncharted, Assassin’s Creed, Elder Scrolls, Gears of War, Zelda, Marvel vs Capcom, and the Batman franchise release new entries. Fall has always been a popular release target, with the hopes of a small price cut for Christmas boosting sales after the real fans already jumped in, but this year has really been lopsided.

I’m the kind of fan who believes that games have the potential for art, even if they don’t all realize it, and as such I had reason to be skeptical of the fall schedule from the start – There is no original game in the entire schedule. Every single major release has been a sequel, if not the third or fourth or fifth entry in a series. That’s not necessarily terrible, and plenty of my favorite games have been sequels (MGS4, to name just one, is one of the greatest games of all time), but the trend of game developers cranking out sequels rather than working on new properties concerns me as a consumer looking for works with more artistic content. What’s even more concerning is how these games have been received.

So what did the reviewers have to say about this fall lineup? Here’s IGN’s article on the topic, with a spoileralert title of “Was Fall 2011 the Best Season in Gaming History“. I don’t have a huge problem with many of the games (I also haven’t played a majority of them, so I refrain from mentioning those), but some of the scores really don’t reflect the major flaws in the games, and the criticism reflects a lack of perspective on the season as a whole. Some of my biggest gripes: 8.5 for Assassin’s Creed: Part 4, a game which, in my experience, has the buggiest multiplayer of any game I’ve ever played (it wavers in and out of being completely unplayable, and often freezes to the point of needing a hard reset… a truly grave offense given that Part 3 had the same issues but less frequent). A 9.0 for Call of Duty: Modern Warfare 3: a sequel to a sequel that’s seen a spinoff, but it has added remarkably little to the multiplayer experience in two renditions, the campaign mode’s story reads even on paper as if it was written by an ADD seventh grader from a military family after a sugar binge, and the main addition to the franchise still isn’t even functional. Ultimate Marvel vs. Capcom 3 adds 12 characters to the game before it, nothing more, and got the same 8.5 as it’s predecessor. Battlefield 3 received a 9 despite the fact that the reviewer described the campaign as forgettable, and the multiplayer takes hours of grinding to achieve parity with your opponents, and was so buggy that hundreds of players were banned within weeks of release for exploiting glitches. Many of the other games on the list suffer from questionably high scores, but my gripes are less concrete, more along the lines of “how can adding almost nothing to a good game yield a higher score” sort of gripes.

Does this deserve a 9?

The problem of inflated reviews for entertainment on websites that make their money advertising for entertainment isn’t new or unique to console games, but there’s a disturbing trend in game criticism to actually berate critical reviews. IGN recently ran a piece where they got a psychologist professor of psychology psychology major to look at scores on Metacritic, and have him corroborate their complaints that too many users are giving Modern Warfare 3 a zero with some cold hard science. The student seems to understand the user complaints better than IGN –

reviews suggest that there is at least a significant minority of players who feel that the Call of Duty franchise is no longer delivering along those long-held gaming values of originality, innovation, what-have-you

Seems like a valid complaint to me, and when all anybody wants to do is give the game a 10, I feel like I’d give Call of Duty a 0 as well (Full disclosure: I have never reviewed anything on Metacritic. And I’d give call of duty a 7). When the media charged with critiquing games is minting every big-budget release as a 9 or a 10 just for being playable, can we really expect more discretion from anonymous users on Metacritic? And it isn’t just IGN, though I focus on them here.

The industry really has no critical perspective on games as a medium, as component pieces of a large entertainment medium that will keep pumping out derivative works if we pay for them and review them favorably, and it’s not doing much for the argument that the field can produce an experience with artistic merits. It definitely still can, but the November blockbusters aren’t heading in the right direction, and I’d appreciate it if at least one mainstream site would acknowledge that. End rant. I’m off to play Catherine for a third playthrough.

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My Pre-Football Fantasy Cheatsheet

I know, I’m crazy. Had a page for every position 🙂

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Google storms the Facebook Castle with Google+, does it help social games?

A while ago, a story about Warren Buffet gained a lot of traction in the tech world. The story focused on a description of Google made by Buffet, who said that great companies have core products (castles) that they then build features and services around to prevent competitors from getting to the core product (moats). Google’s castle is search, and the moat is gmail, google voice, chrome, and the other products Google puts around the search to control the user experience.

Google has had a history of launching some pretty mediocre products and making some strange acquisitions, but a week after Google+’s launch, it is starting to look like there was some semblance of a plan behind the seemingly crappy launches. Google Buzz, Wave, Picassa, +1 and Blogger were hardly search related, unlikely to become castles, and unlikely to serve as moats, but now seeing the Google+, circle-based social network, it actually seems like they are moats for the new castle. All of those products either taught Google something about how to build the new social castle, or will help “moat” that castle. And Google+ actually seems like it’s being widely praised – a great comic I saw noted that the only way to describe the service is as a Facebook that isn’t like Facebook, which is a testament more to how strong Facebook’s grasp has been on everything social for last 6 years than a statement about our collective distate for Facebook.

If Google+ catches on, users will be faced with a choice of either using both services, or staying exclusively on one or the other. The real risk for Facebook is that, even if people choose the former, it may cut time on the site in half. Half the eyeballs = half the time spent viewing ads = half the ad revenue, which is obviously not a good thing for a company that makes a lot of it’s money off of ads. The other issue is social games – Google+ will definitely become a games platform eventually, as early reports are already considering. So far, the main criticism of Zynga’s IPO has been that Zynga is tied to Facebook, but that looks like it should really be a criticism of Facebook at this point, as Zynga now has a major player they can jump ship to, or at least use as negotiating leverage. One wonders what the exact contents of that non-compete deal Facebook and Zynga signed back in late 2010, and if there is any chance it considered some sort of exclusivity for Facebook. The negotiations at that point in time probably looked an awful lot different though, with no clear alternative for Zynga to publish games on besides Facebook. Now, however, Zynga might actually be in a position to push for a better % of their own revenue (Facebook takes 30%) given that Zynga could potentially swing hundreds of millions of users over to Google+ pretty easily. That move might be too risky for a company waiting to go public, but it will definitely be an interesting standoff between Facebook and Zynga whenever Google+ does open a games platform to the public. A public games platform on Google+ would only help social games as a whole – though the 30% cut seems like an industry standard for all game-hosting platforms, at least it will allow developers to have some sway over the policies that Facebook and Google come up with, and react to them by investing more heavily in one platform over the other. Another interesting thing will be whether game development for Google+ looks more like game development for the Android platform, or if it will be an entirely new experience. It seems the possibilities for games on a new platform similar to Facebook would be more inspiring for developers than just a new version of Android, but on the other hand, opening up the Android platform to Google+ would allow minimal investment from current developers, and give Google+ instant access to games available on the platform. All in all, Google+ will have a big impact on social games, we just don’t know what that impact will be exactly until Google makes their move.

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Microsoft v i4i decision: No surprise, Microsoft loses

Pretty unsurprising news today, as the Supreme Court handed down their decision in the patent case of Microsoft v i4i. I’ve written about the case before, back when the oral arguments were heard, and noted that Microsoft was extremely unlikely to win.

Well, Microsoft actually did worse than I could have imagined, somehow losing Judge Breyer’s vote and falling to i4i in an 8-0 decision (one justice recused himself for owning a significant share of Microsoft, and even HE said he would have voted for i4i). It was really an uphill battle for Microsoft from the get-go: they were trying to lower the bar for the standard applied when a patent is challenged, from a clear and convincing standard to anything lower, but decades of court precedent and complicit silence on the part of Congress made it unlikely that the Court would step in and reverse standing law without good reason. Sotomayor wrote a snarky opinion, basically dismissing Microsoft as having no case, and the clear and convincing evidence standard will live another day (and likely for a very, very long time).

Unfortunate, because the patent system could really use some more editing and the Court had shown a willingness to adopt change by brute force in some recent cases. But alas, the patent system remains broken, to the surprise of nobody.

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law skool finals

be back in a week

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