A victory for the rising tide

I put up a post a few months ago arguing that the effort by corporations to use copyright law as a club to try to control people’s behavior is both philosophically problematic and economically counterproductive; the evidence shows, I believe, that they’re better off letting the market work than trying to over-regulate it. As I noted, though, corporations would rather regulate competition out of the way than have to actually compete, and they would rather try to control the market by regulation than have to rely on making a better product or selling it more cheaply. Thus we had, for instance, Viacom suing YouTube to try to force YouTube to remove any videos that might infringe on copyright law; as Farhad Manjoo writes in Slate,

a ruling in Viacom’s favor would have much wider repercussions. It would shift the balance of power between Web companies and entertainment companies, requiring sites to essentially ask permission or seek licenses from Hollywood and the music labels before innovating. Some of the world’s biggest Internet companies—not just YouTube, but also Facebook, Amazon, Yahoo, eBay, Flickr and others—would never have been able to get off the ground had they been required, as struggling startups, to constantly police their networks for potentially infringing material.

Interestingly, though, Viacom didn’t win—not at this stage, anyway; Judge Louis Stanton of the U.S. District Court for the Southern District of New York granted YouTube’s motion for summary judgment. Their policy has been to let copyright holders advertise alongside their content, and to take that content down if the copyright holder asks, and the judge decided that’s good enough. Viacom appealed, of course, but Judge Stanton has given us an all-too-rare victory for common sense; here’s hoping the decision stands.