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
16
Social norms
Market
Built environment
Law
17
18
19
Digital Economy Act (DEA)
20
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
23
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
24
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
27
Communications Data Bill (CDB)
28
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
29
ISPs DEA to CDB copyright police to surveillance agents of state
30
Mass surveillance undermines trust Also doesn’t work
31
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
37
