AFP sues X/Twitter over content; Elon Musk’s reaction justified.
AFP sues X/Twitter over content; Elon Musk's reaction justified.
Ancillary Copyright: A Bizarre Mechanism Benefiting Big Tech and Media
In an increasingly digital landscape, the concept of neighboring rights or ancillary copyright has emerged as a means for media publishers to claim licensing fees for the reproduction of their content snippets and image thumbnails by news aggregators. While this idea may sound dull and obscure, it has sparked a lively debate, with Elon Musk himself expressing his bewilderment, stating, “They want us to pay them for traffic to their site where they make advertising revenue and we don’t?!” Let’s delve deeper into the origins, implications, and complexities of ancillary copyright.
Ancillary copyright was initially championed by a cartel of German news publishers, led by Axel Springer, who successfully convinced the German government to pass a law allowing them to collect fees from news aggregators like Google. Spain followed suit with its own “Google tax,” but Google managed to avoid paying anything in either country. To bolster their position, these publishers lobbied to make ancillary copyright an EU-wide requirement in 2019. As a result, platforms like Google and Facebook now regularly compensate publishers, such as those in France, to feature portions of their content.
Australia joined the ancillary copyright movement in 2021 with the News Media Bargaining Code, but Google and Meta (formerly Facebook) have managed to avoid being designated as platforms subject to this rulebook. They achieved this by forging independent content-distribution deals with Australian news publishers, amounting to a reported $130 million annually. Canada also enacted its Online News Act in June, but Meta responded by ceasing to carry news in Canada, and Google has threatened to do the same.
The media industry’s struggles, compounded by the rise of the internet, have intensified the need for new revenue streams. Legacy publishers traditionally relied on advertising, but their dominance eroded with the advent of digital platforms like Google and Facebook. These tech giants capitalized on the ad value that previously went to publishers. However, while there may be some justice in Big Tech compensating those whose lunch they stole, the mechanism of ancillary copyright itself lacks logical coherence.
Musk’s sentiment reflects this confusion. He highlights the peculiarity that those connecting news publishers with their readers are indirectly paying the publishers for this privilege. While some argue that ancillary copyright represents a form of Big Tech subsidizing the news media, this approach is neither sustainable nor fair to all parties involved. Platforms like X/Twitter, which are not major players in the adtech market, face disproportionate burdens under this framework.
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The debate surrounding ancillary copyright ultimately raises questions about the future of news industry financing. While it is crucial to consider ways to support struggling media outlets, the current system fails to provide a comprehensive solution. Platforms have the right to opt-out of carrying news or reduce its prominence if they find the regulations unduly burdensome. This dynamic calls for a broader discussion on how to address the financial challenges faced by the news industry in a sustainable and equitable manner.
News Highlights
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Russian hackers: Microsoft accuses a Russian group called Midnight Blizzard of conducting highly targeted social engineering attacks. The group, also known as Cozy Bear or APT29, has links to Russian intelligence operations.
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Alibaba follows Meta: Alibaba has taken a page out of Meta’s playbook by open-sourcing two large language models. This move represents a first for a Chinese company and mirrors Meta’s open-sourcing of its LLaMa 2 model.
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Prosecutors’ Binance conundrum: The U.S. Justice Department faces a dilemma in deciding whether to levy fraud charges against Binance. Concerns about causing a run on the platform and sparking panic in crypto markets add complexity to the decision-making process.
Significant Figures
- 2: The number of hours proposed by the Cyberspace Administration of China for Chinese individuals under 18 to spend on their smartphones daily. This potential regulation could significantly impact Chinese tech powerhouses like Tencent and Bytedance.
Further Reading
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Apple and Amazon’s impact on the economy: Twin tech giants worth over $4 trillion have the potential to either bolster the economic upswing or spoil the party.
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Tesla’s victory in the charging wars: Exploring the factors that propelled Tesla ahead of its competitors in the electric vehicle charging infrastructure.
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Furious Facebook Reels creators discuss legal action: Meta’s decision to reduce promised payouts to Reels creators due to a ‘display error’ has sparked outrage and potential legal battles.
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Twitter CEO’s username change sparks online frenzy: Linda Yaccarino’s decision to change her username resulted in a troll account capitalizing on the situation, gaining significant attention.
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Virgin Galactic’s revenue surge: Richard Branson’s spaceflight venture experienced a 400% increase in revenue driven by space flights and ‘membership fees’ for future astronauts.
Meta’s Music A.I.
Meta has introduced a new A.I. tool called AudioCraft, which can generate music and other audio from text prompts. This tool leverages Meta’s text-to-music model, MusicGen, which was trained on specially licensed tracks, and the text-to-audio component, AudioGen, which was trained on public sound effects. This release showcases technical advancements compared to earlier iterations, as the produced music and sounds are more authentic and pleasing to the ears. While not regarded as art, these innovations represent impressive achievements within the realm of A.I. technology.
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Written by David Meyer.
Image Source: Fortune
