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Re: DeCSS, crypto, law, and economics

daemon@ATHENA.MIT.EDU (Phil Karn)
Thu Jan 9 12:23:30 2003

Date: Thu, 09 Jan 2003 00:59:59 -0800
From: Phil Karn <karn@ka9q.net>
To: John Gilmore <gnu@toad.com>
Cc: cryptography@wasabisystems.com
In-Reply-To: <200301081017.h08AHeC29754@new.toad.com>

John Gilmore wrote:

> The kind of segmentation your graphs rely on can easily be created
> by *time* segmentation.  Producers start off charging high prices for
> their goods, and then gradually reduce the prices as they ramp up
> volumes, pay off their startup costs, learn the desires of their market
> better, etc.  This gets the social benefit you desire, without propping
> up any artificial forms of segmentation.

Exactly. Time segmentation already practiced by the movie studios and 
book publishers, and it's pretty hard to arbitrage -- until somebody 
invents time travel.

Much movie piracy is driven by the strange practice of releasing new 
movies in different countries at different times. This is a major form 
of geographic market segmentation. If "Two Towers" had been released 
world-wide on the same day instead of only in the US and a few other 
countries, then there would have been little motivation for anxious fans 
around the world to get US collaborators to make a crappy videotape of 
the film in a US theater and export it. They'd just go to their local 
theaters and see it in its full glory.

Phil



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