Information industry battles

Evidence that we are now witnessing one of the greatest battles in the information media industry is emergent. The giants of the industry is either actively pursuing ever more control or is being pushed to take defensive steps. Through the last century many similar battles has taken place: AT&T, the Hollywood Filmthrust and RCA vs Armstrong serving here as prominent examples.

The roles of the battle is not new: weak and unprepared governments, capitalism serving shareholders, and eager consumers. The goal of the current battle is to dominate so as to cut [exclusive] deals with content owners. As often seen before patents is used by the big guys to limit innovation from competitors, and push around those big enough to pose a competitive threat.

In earlier battles a very limited set of patents was used a weapons. Now the giants has to collect patent portfolios in order to gain sufficient control over/defense against competitors. A large number of consolidated patents is powerful when  one tries to suffocate innovation and limit the innovative freedom of others.

Innovation has always been important in the Information media industry. Innovation could make the industry more or less self regulating. If a conglomerate/cartel manages to gain control over innovation that could be a threat and even ultimately replace them, they have also gained invulnerability. The loosers if the battle is the content consumers, that will have less choice. The free market can easily commit suicide, especially in the information industry.

The governments, and especially the USA, has much to easily given the giants the weapon they need: patents. It is maybe a bit counterintuitive, but patents is a construction for limiting further innovation. Governments are also generally weak at regulating the information media industry. This creates the opportunity to create an empire. The more powerful, the easier it is to get allies either by fear or business. But, there is a but, when governments has seen trough it's fingers of this battle yielding consolidated giants, they have also created a soft underbelly on those. The giants knows it, and parts of the governments knows it too. The parts of the governments that has understood, also know how to exploit it. Ultimately the information industry stiffens, only casting static shadows of its former dynamic nature. This is when capitalism stops working.

Recently the US and EU has implemented legislation that let them get access to the giants business records. In the name of the fight against terrorism and child porn, they have adopted draconian laws, that removes our digital privacy. This just get easier the bigger the giants gets, because the stakes get higher with size. No giant wants to be defeated up by an anti-trust case.

The current battle is more destructive than ever. The real stakeholders is not shareholders, but us. Our privacy is at stake. Information media industry collects private information and serves public information. It is a unbalanced game. We loose as consumers because without competetion, the giants will be lazy but almost impossible to replace. They have their patent portfolios. This equilibrium is exploited by our governments.