Apr
2
Righting Copyright’s Wrongs?
Filed Under B2B, Blog, eBook, Education, eLearning, Industry Analysis, internet, mobile content, Publishing, Uncategorized | Leave a Comment
They are at it again, you know. I have warned about this before. It seems that you cannot stop legislators making laws. They seem to think it is what they are for, while we older people know that the only way to preserve a reputation as a wise law-giver is to give nothing away. Nobody is happy with a patched road or a mended fence. Most Western legal systems are full of patched legal garments, most legislators are patching the patches, many of us know that only revolutions will allow a complete remake. The Sumerian agricultural revolution and the laws of Hammurabi. The Byzantine revolution and the laws of Justinian. The French Revolution and the Napoleonic code. The Digital Revolution and the redefinition of networked trading and ownership rights…?
Well, you certainly need a broad historical canvas if you are going to start a conversation in this area at all. One man of vision over many years in this field is the British media lawyer, Laurie Kaye, whose latest blog (http://laurencekaye.typepad.com/laurence_kayes_blog/) on 29 March sets out the battleground for the digital media marketplace arguments for 2015. And I share his respect for the enthusiasm of Commissioner Oettinger of the European Union, while adding a touch of personal despair at how long we Europeans have been about this Single Market business. Who amongst us is not frustrated by the limitations of the world we have now moved into? The librarians and researchers launched their London Manifesto yesterday to try to encourage the Commissioner in the right direction. (http://www.cilip.org.uk/sites/default/files/documents/The_London_Manifesto.pdf). Well they would do that, wouldn’t they? Yet more and more their impatience is just an echo of common place resistance and outright defiance in the market place.
And its not just copyright as ownership, its the whole content trading system of which copyright is the centre piece. As a good Brit I pay my BBC annual licence fee, but the rule of territoriality in a global networked society means I cannot view the videos I can see in London while I am in New York. Each of the media has a different rulebook, yet we live in a world of multiple and multi media developments. Above all, the interests of the players in the cycle of content creation and distribution are beginning to diverge, and great gaps, more significant than ever before, appear between what authors want and need, and the way in which publishers, ever protective of their business model, require for survival. The increasing dissonance that I hear as I listen to the strident voices protecting the copyright regime of the last century (representing a business model where publishers held the whip hand), and the equally strident voices demanding the freedom in the network to control for themselves the way authorial output is distributed is becoming distressing. Please, Officer Oettinger, what is a man to do?
In some ways this started in the academic world. When we write the history, Open Access will be seen not just as a way of allowing all citizens to discover the content of state-funded research. It will also be seen as authors wanting to use the network, with its ability to create huge access and impact for global populations, as a way of building reputation in the communities they target. The communities where they earn their bread and seek preferment. And is this so very different from the science fiction author who spoke to me recently about his publishing as a way to create an income stream – in his case from lecturing fees, public appearances, film scripts derived from the content, and commissioned writing for on and offline magazines. The book made the reputation, just as the scholarly research article does, and the key issue is not its royalty yield, but the breadth of readership and brand recognition that it creates. All too often the defence of copyright is the defence of the publishing business model, without a realisation alongside it that the role and value of the intermediary which is in question here. Networks, we always used to say, disintermediate intermediaries. In a world where it is so relatively easy to create your online eBook, and publishers are deserting the scrutiny of unsolicited manuscripts in favour of bringing successful self -publishers into contract as authors, publishers must – and can – demonstrate the value of their editorial preparation (something few now indulge in for cost reasons), their ability to discover talent and their excellence as reputation formers and mass marketeers. These are not all areas of strength for everyone, but they are becoming survival skills. Recall for a moment how proactive agents have been diminishing the rights granted to publishers in order to increase the flexibility of their clients. Recall for a moment how often now (Quebec City this week, Montreal airport last year and the Italian railways just before that) you can download an eBook from a library in order to read while travelling.
So when we want to debate the small print of copyright licensing rules we have to bear in mind that the revolution coming will have such violence that it will completely transform the way that longform text is created, marketed and distributed. No industry can be kept on life-support by virtue of making a concession on library lending while winning a point on fair dealing. We now need to resolve, as a matter of prime concern, whether territoriality in terms of making agreements about content is of any continuing use. We need to address issues that affect market receptivity, like net neutrality. We have made huge strides, thanks to the efforts of Lawrence Lessing, in writing into licensing a real recognition of origin and authorship while freeing up a good deal of re-use, and we need to look at ways in which the Creative Commons movement give pointers to future treatment in a licenced – and implied licence – network world. But above all we must urgently clear our minds and begin to redefine “ownership” of intangible intellectual property. For anyone under 17 this is a meaningless blog , and no one could explain it to them. Living in a world where the network sorts out licences and rewards on an M2M basis – machine to machine – this will never be an issue. Until then, different rules will govern downloading from those that govern streaming, and the lawyerly debate on whether that was a product or this was a service will create fresh intellectual property from the argument itself.
Mar
16
Data is a Commodity, Analytics is not a Solution
Filed Under B2B, Big Data, Blog, data analytics, Financial services, Industry Analysis, internet, Publishing, Search, Thomson, Uncategorized, Workflow | 1 Comment
This will only get worse. The latest announcement from the Thomson Reuters GFMS service, the premier data analytics environment around gold and silver, indicates that their Copper commodity service on Eikon now moves from mining company to mine by mine performance. “It all adds another data-rich layer of fundamental research to our customers’ copper market analyses” says their head of research. And there, in that line, we have a “fundamental” issue that lies behind the torrent of announcements we see in the B2B sector at the moment. Think only of Verisk buying Wood Mackenzie last week at a price which went well beyond the expectations (17X ebitda) of counter bidders like McGraw Hill, and which shocked private equity players who relish the data sector but find it hard to imagine 12X as an exceedable multiple. The question is this: Risk management and due diligence are vital market drivers, but they are data-insatiable; any and all data that casts a light on risk must be included in the process; it is the analysis, especially predictive analytics, which adds the value; so who will own the analytics – the data companies, the market intermediaries (Thomson Reuters, Bloomberg etc), or the end user customers?
Those of us who come from the content-driven world – they were out in force at Briefing Media’s splendid Digital Media Strategies event last week in London – find this understandably hard to argue, but our biggest single threat is commoditization. Even more than technology disruption, to which it is closely related, data commoditization expresses the antithesis of those things upon which the content world’s values were built. When I first began developing information services, in pre-internet dial-up Britain, we spoke lovingly of “proprietary data”, and value was expressed in intellectual property that we owned and which no one else had. For five years I fought alongside colleagues to obtain an EU directive on the “Legal Protection of Databases”, so it is in a sense discouraging to see the ways things have gone. But it is now becoming very clear, to me at least, that the value does not lie in the accumulation of the data, it lies in the analytics derived from it, and even more in the application of those analytics within the workflow of a user company as a solution. Thus if I have the largest database of cowhide availability and quality on the planet I now face clear and present danger. However near comprehensive my data may be, and whatever price I can get now in the leather industry, I am going to be under attack in value terms from two directions: very small suppliers of marginal data on things like the effect of insect pests on animal hides, whose data is capable of rocking prices in markets that rely on my data as their base commodity; and the analytics players who buy my data under licence but who resell the meaning of my data to third parties, my former end users, at a price level that I can only dream about. And those data analytics players, be they Bloomberg (who in some ways kicked off this acquisition frenzy five years ago when they bought Michael Liebrich’s New Energy Finance company) or others, must look over their shoulders in fear of the day when the analytics solutions become an end user App.
So can the data holding company fight back? Yes, of course, the market is littered with examples. In some ways the entire game of indexation, whereby the data company creates an indicative index as a benchmark for pricing or other data movement (and as a brand statement) was an attempt to do just that. Some data companies have invested heavily in their own sophisticated analytics, though there are real difficulties here: moving from that type of indicative analytics to predictive analysis which is shaped as a solution to a specific trader’s needs has been very hard. Much easier was the game of supplying analysed data back to the markets from which it originated. Thus the data created by Platts or Argus Media and the indexation applied to it has wonderful value to Aramco when pricing or assessing competitive risk. But in the oil trading markets themselves, where the risk is missing something that someone else noted, analysts have to look at everything, and tune it to their own dealing positions. Solutions are changing all the time and rapid customization is the order of the day.
Back out on the blasted heath which once was B2B magazine publishing, I kept meeting publishers at DMS who said “Well, we are data publishers now”. I wonder if they really understand quite what has happened. Most of their “data” can be collected in half an hour on the Open Web. There is more data in their domains free on DBpedia or Open Data sources than they have collected in a lifetime of magazine production. And even if they come up with a “must have” file that everyone needs, that market is now closing into a licensing opportunity, with prices effectively controlled, for the moment, by those people who control the analytics engines and the solution vending. Which brings me back to Verisk and the huge mystery of that extravagant pricing. Verisk obviously felt that its analytics would be improved in market appearance by the highly respectable Wood Mackenzie brand. Yet if a data corner shop, let alone Platts or Argus Media, were to produce reporting and data that contradicted Wood Mackenzie, anyone doing due diligence on their due diligence would surely demand that Verisk acquire the dissenting data and add that to the mix? If data really is a commodity business, far better to be a user than an owner.
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