Will the Internet Turn into a Digital Mcworld? The Possible Consequences of the Expansion of the Copyright Monopoly on E-Commerce

Abstract

The Internet has wreaked havoc on copyright law. In the past, the law readily resolved challenges posed by technological innovation. But Internet technology allows unlimited copying and therefore potential infringement, even by the most unsophisticated user.

Businesses are responding to the copying frenzy by expanding their copyright monopoly. Through the introduction of online license provisions, they are: 1) prohibiting copying that is normally allowed under traditional limitations to the copyright law; 2) protecting material that is non-copyrightable; and 3) creating perpetual copyrights. The resulting loss in the flow of information to the public domain may be significant. Concrete consequences could include: 1) increased concentration and standardization of online industries and products; 2) less innovation and creativity among businesses; and 3) a decreased emphasis on meeting consumer needs.

U.S. legislators have largely ignored these concerns. As online information becomes increasingly protected in favor of the copyright holder, deliberate efforts to ensure that the traditional copyright balance is maintained have become even more urgent.

In this article, I will attempt to describe how copyright holders are using online contracts to increase their copyright. My analysis will concentrate on US law because developments there illustrate what can happen if there is no deliberate control. Developments in the EU are discussed briefly. Ultimately, I hope to foster a debate for change.