[comp.org.eff.news] How much is information really worth?

howell@bert.llnl.gov (Louis Howell) (09/10/90)

The lack of a consensus on ethical standards among computer users is
serious, but even if one existed I'm not sure how much effect it would
have on law enforcement, the media, and the public in general, who
wouldn't know what we were talking about.  The destructive hackers would
continue to get all the attention and thus color people's opinions of
the whole community.  All the agreement in the world won't help if the
regulations are being written by outsiders who don't know what they are
doing.

For example, our society still has not come up with any consistent way
to put a value on information.  Copyright and patent laws have been
tailored to the corporate arena, where typical infractions are large
enough to merit serious penalties, the legal costs are minor compared
to the other sums involved, and no lives are ruined in the process.
Attempts to apply this legal system to individuals and small software
sweatshops appears to be the moral equivalent of correcting a wayward
child by swatting him over the head with a 2-by-4.

In the recent Bell South fiasco, the company apparently put a value on
the stolen 911 document roughly equivalent to the entire cost of
producing it.  This strikes me as completely absurd, since only a copy
was made---Bell South did not lose the use of the document or suffer
any other financial loss as a result of the incident.  If you go by
some kind of "fair market value" criterion, the value would be closer
to that of a paperback book.  Even if trade secrets were involved, as
was originally thought, it still seems unfair to charge a thief with
the cost of the entire development project.  Some kind of lost revenue
standard seems more reasonable, but computing it could be a legal
nightmare.

For an item that is on the market, even valuing the information at
market value may not be appropriate.  To be specific, suppose some
software company spends about $100,000 to write a great C compiler.
They put it on the market for $1000, and it sells.  Now suppose some
high school hacker manages to snarf a copy of this compiler for his
own personal use.  He gets caught, and is charged with stealing it.
What now is the value of the object he has stolen (which can make a
big difference in court)?  To say $100,000 is absurd, since the
company still has the compiler.  Even $1000 may be too high, though.
The company has not lost $1000 in revenue because there is no way
the kid could have afforded to buy the program.  If he couldn't
steal it, he still wouldn't have bought it, so the effect on the
company is the same as if he had done nothing at all!  If the company
loses nothing, is it not better that the kid have the use of the
best tools for his work?

This argument won't work for any tangible object.  If a crook steals
a diamond ring, it is silly to argue that he would not have otherwise
bought it, since there is still a real diamond ring missing.  With
information theft, though, it's hard to say that anyone really loses.

I'm not seriously suggesting that this type of software theft should
be legal, since then there would be no way for the company to recoup
its investment.  There is no practical way to implement a socialist
"welfare distribution" system, since even those who could pay would
find it easy to obtain free copies of anything.  The trouble is in
trying to couple an economy of tangible goods that are expensive to
reproduce with one of intangible goods that can be reproduced for
almost nothing.  It's a tough problem, and I don't claim to have a
pat answer.

On the other hand, in my example the fact does remain that no one was
hurt.  The offense strikes me as more comparable to a minor case of
shoplifting than to the theft of a tangible $1000 object.  I certainly
wouldn't call it a felony, and seriously damaging the career of such
a talented kid would probably be a net harm to society.  I propose that
the appropriate penalty be just enough to "teach the kid a lesson",
but no more.

Any thoughts?  Just how much SHOULD information be worth?
--
Louis Howell

  "A few sums!" retorted Martens, with a trace of his old spirit.  "A major
navigational change, like the one needed to break us away from the comet
and put us on an orbit to Earth, involves about a hundred thousand separate
calculations.  Even the computer needs several minutes for the job."

brnstnd@kramden.acf.nyu.edu (Dan Bernstein) (09/13/90)

In article <1990Sep10.095011@bert.llnl.gov> howell@bert.llnl.gov (Louis Howell) writes:
> For an item that is on the market, even valuing the information at
> market value may not be appropriate.  To be specific, suppose some
> software company spends about $100,000 to write a great C compiler.
> They put it on the market for $1000, and it sells.  Now suppose some
> high school hacker manages to snarf a copy of this compiler for his
> own personal use.  He gets caught, and is charged with stealing it.

No. He hasn't stolen anything; he's only broken copyright law. Assuming
the company has registered the copyright, that's $50,000.

Our society values information quite highly.

---Dan