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Gates Elaborates on IP Communists
justin_w_hall writes "In part four of his interview with Gizmodo, big Bill Gates discusses his recent 'communist' labeling of supporters of free culture - and gets into detail about his rationale concerning Microsoft's position on DRM. Other parts of the interview: part 1, part 2, part 3."
Gates isn't smart, he's desperate. MSFT has barely nudged +/- $3 over the past four years while the rest of the tech market has taken off (particularly old rival AAPL). They're getting desperate in their smear campaign because its all about $$$...its become practically impossible to make MSFT rise with straight financials or new products, so they are trying mudslinging.
Programmers write free software to subvert a system that denies them the protection of their intellectual property rights by pricing legal defense of those rights out of their reach. That guys like Gates would be unsympathetic to this cruel dilemma facing the vast majority of programmers is not surprising. Indeed, given the fact that even giving all his wealth away, except some "modest" estate for his children, his childre will still be able to afford good legal counsel to establish protection for themselves.
If programmers were able to capture enough of the value of what they write to pay for the legal defense of their rights they'd probably write a lot less free software.
This gets to a fundamental problem with the incentives created by taxing things other than asset value (exempting house and tools of the trade which are subsistence assets protected by bankruptcy tradition):
Possession is rewarded over creation.
Think about it: Once you possess something, you basically have no tax burden. You enjoy the benefits of young men dutifully going out to die in wars, government subsidized infrastructure paid by wage earners, the entire legal edifice describing and protecting your rights and without you having to pay a cent. You can just soak the public for these benefits by paying only the lawyers fees to extract the benefits for yourself.
Taxing everything but possession (income, capital gains, sales, value added, etc) is just a way to tax the creative process.
Naturally, creators who are trying to get a leg up on the situation end up selling their creations cheap to those whose possession is subsidized by the tax payments of the creators.
Well, there is one exception to this rule of no taxation of possession -- and that is the patent maintanence fee. Patents are the only assets that the government taxes. This is an incredibly regressive tax hitting hardest those who are earliest to support the realization of a new technology's value -- forcing them to sell their rights ("assign") cheap to someone who has been sitting around enjying the government's protection.
It all adds up to a very nasty way of sucking capital out of the hands of creators and giving over to the hands of possessors.
So the creators, unable to change the tax laws to tax assets rather than creative processes (becuse they can't buy the Ways and Means Committee) become socialists.
This is directly related to the issue of outsourcing since if programmers who had created the value of the information industry had been allowed to retain the value they created, they wouldn't need jobs. The corporations would be paying them royalties or be paying companies owned by the programmers for the rights to their software instead of just throwing creators out on the street after extracting their youth and creativity.
A system that would work would elimnate all existing taxes (although not necessarily tariffs) and just tax net assets at a rate equal to the interest rate on the national debt -- exempting from taxation the same assets that are exempted by personal bankruptcy protection: home and tools of the trade.
Does Gates think he can beat the competition if they aren't beaten down for him by the government? This sort of arrogance by people who are the wealthiest isn't offset by giving their money to charity. They are eating the children of the middle class and destroying the future of the country that made them rich.Seastead this.
If it exists, we are allowed to make Fair Use of it, for criticism, satire, or just to make a point. We always have had this right. BTW: we historically don't have to ask permission to Fair Use a piece.
The DMCA lets producers shut down that right, and Bill's company is doing as they bid and enabling them to stop Fair Use.
WE are the customers too. He's enabled a runaround of copyright law. In my favorite phrase, "they broke the deal". Copyright for a certain term for them, accompanied by Fair Use for us. Now there is no term, and we can't use our Fair Use rights without breaking a sneaky little law. They broke the deal, not us.
They don't like Fair Use? Fine, we don't like copyright. Game on.