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Internet Giants

The Law and Economics of Media Platforms

Randal C. Picker

This seven-week course will explore the relationship between law and technology with a strong focus on the law of the United States with some comparisons to laws around the world, especially in Europe. Tech progress is an important source of economic growth and raises broader questions about the human condition, including how culture evolves and who controls that evolution. Technology also matters in countless other ways as it often establishes the framework in which governments interact with their citizens, both in allowing speech and blocking it and in establishing exactly what the boundaries are between private life and the government. And technology itself is powerfully shaped by the laws that apply in areas as diverse as copyright, antitrust, patents, privacy, speech law and the regulation of networks.

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This seven-week course will explore the relationship between law and technology with a strong focus on the law of the United States with some comparisons to laws around the world, especially in Europe. Tech progress is an important source of economic growth and raises broader questions about the human condition, including how culture evolves and who controls that evolution. Technology also matters in countless other ways as it often establishes the framework in which governments interact with their citizens, both in allowing speech and blocking it and in establishing exactly what the boundaries are between private life and the government. And technology itself is powerfully shaped by the laws that apply in areas as diverse as copyright, antitrust, patents, privacy, speech law and the regulation of networks.

The course will explore seven topics:

1. Microsoft: The Desktop vs. The Internet. We will start with a look at the technology path that led to the first personal computer in early 1975, the Altair 8800. That path starts with the vacuum tube, moves to transistors, then to integrated circuits and finally to the microprocessor. We will look at the early days of software on the personal computer and the competition between selling software and open-source approaches as well as the problem of software piracy. We will discus the public good nature of software. The 1981 launch of the IBM PC revolutionized the personal computer market and started the path to Microsoft's powerful position and eventual monopoly in that market with the selection of MS-DOS. We then turn to four antitrust cases against Microsoft: (1) the 1994 U.S. case relating to MS-DOS licensing practices; (2) the U.S. antitrust middleware case over Microsoft’s response to Netscape Navigator; (3) the European Union case regarding Windows Media Player; and (4) the EU browser case over Internet Explorer. These disputes arose at the point of maximal competition between the free-standing personal computer and the Internet world that would come after it and we may know enough now to assess how these cases influenced that competition.

2. Google Emerges (and the World Responds). Google has emerged as one of the dominant platforms of the Internet era and that has led to corresponding scrutiny by regulators throughout the world. Decisions that Google makes about its algorithm can be life altering. Individuals are finding it more difficult to put away past mistakes, as Google never forgets, and businesses can find that their sales plummet if Google moves them from the first page of search results to a later page. With great power comes scrutiny and we will look at how government regulators have evaluated how Google has exercised its power. Both the U.S. Federal Trade Commission and the European Union have undertaken substantial investigations of Google’s practices and we will look at both of those.

3. Smartphones. The Internet started on the desktop but the Internet is increasingly mobile and people are seemingly tethered to their smartphones and tablets. And we have seen an interesting shift in that market away from Nokia handsets and the Blackberry to Apple's iPhone and its iOS platform and to the Android platform. The legal infrastructure of smartphones and tablets is extraordinarily complex. We will start by looking at U.S. spectrum policy and the effort to free up 500 megahertz of spectrum. We will look at the activities of standard setting organizations, including the IEEE and the creation of the 802.11 standard and Wi-Fi (or, if you prefer, wifi), the creation of patent pools and the regulation of standard essential patents. We will look at the FTC action against Google/Motorola Mobility and Apple's lawsuit against Samsung over utility and design patents relating to the iPhone. Finally, we will take a brief look at the European Commission's investigation into the Android platform.

4. Nondiscrimination and Network Neutrality. Facebook has more than 1 billion users and measure that against a world population of roughly 7 billion and a total number of Internet users of roughly 2.5 billion. A course on law and technology simply has to grapple with the basic framework for regulating the Internet and a key idea there is the notion of network neutrality. Nondiscrimination obligations are frequent in regulated network industries, but at the same, discrimination can be an important tool of design for communication networks. We will start our look at the Internet by looking at the great first communications network of the United States, the post office and will look in particular at the Post Office Act of 1845. We will then move to modern times and will consider efforts by the U.S. Federal Communications Commission to produce sensible and sustainable nondiscrimination conditions for the Internet and will touch briefly on comparisons from around the world.

5. The Day the Music Died? In many ways, the Internet came first to music with the rise of peer-to-peer (p2p) music sharing through Napster and its successors. We start with a look into music platform history and the devices that brought recorded music into the home: the phonograph and the player piano. We turn to radio and the legal regime that puts music on the airwaves, the performing rights organizations like ASCAP and BMI. We look at the antitrust issues associated with the blanket license. We consider a failed music platform, digital audio tape, and the complicated legal regime associated with it, the Audio Home Recording Act of 1992. We will consider the copyright issues raised by the creation and distribution of music and the litigation over the p2p technologies such as Napster and Grokster. The music industry responded to p2p technology by adding digital rights management tools to CDs. As music distribution switched from physical media to digital distribution, we entered the world of Apple and the iPod and iTunes. We consider the DRM issues associated with Apple's music platform as seen by Steve Jobs. We conclude by looking at emerging subscription services like Spotify and the service that Apple is building based on its purchase of Beats.

6. Video: Listening and Watching. Images are some of the most powerful ways in which ideas and speech are communicated and video has long been regulated by the state. That starts as a communications law issue with government regulation of the radio spectrum, but also leads to the design of the television system with the assignment of channels and eventually the definition of digital television. And with the emergence first of cable TV and subsequently the VCR critical copyright roadblocks had to be overcome for new distribution technologies to emerge. We will consider the legal engineering that led to the DVD platform, which was an exercise in patent pools and trademark creation. We will sort through the creation of the digital TV platform and will also look at the copyright underpinnings for Netflix. And we will consider the question of technology neutrality in the content of the copyright fight over a new video distribution entrant, Aereo. Finally, we close the week with a brief look at the incentive spectrum auctions and the possible end of broadcast television.

7. The Mediated Book. Gutenberg revolutionized books with his printing press and for academics, books are sacred objects. But the printed book is on the run and with the rise of the ebook, we are entering a new era, the era of the mediated book. This is more than just a change in technology. We will look at the issues created by the rise of the ebook, issues about control over content and licensing and of the privacy of thought itself. We will also look at the legal skirmishes over this space, including the copyright fair use litigation over Google Books, the Apple e-book antitrust case. And we will look at the Amazon Kindle platform.

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What's inside

Syllabus

Introduction to the Course
THIS VERSION OF THIS COURSE WAS LAUNCHED IN JULY 2015 AND HAS NOT BEEN UPDATED SINCE THEN. MUCH HAS HAPPENED SINCE THEN SO YOU SHOULD CONSIDER ANOTHER COURSE FOR MORE RECENT DEVELOPMENTS. ************************************************************** This is a course on the law and economics of media platforms. Media delivery is frequently organized around a set of tools that bring together different parties to interact. Edison’s phonograph and wax cylinders did that, bringing together music producers and consumers wanting to listen to music at home, but so does Microsoft Windows, which sits between software developers and computer users.
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Microsoft: The Desktop v. The Internet
In this module, we will focus on Microsoft and its arc from start up to dominance and repeated antitrust target. We will look at the technology leading to the personal computer and the release of the IBM PC in August, 1981 and then the rise of Microsoft from there. We will turn to antitrust actions against Microsoft, first in the United States in 1994 for its MS-DOS licensing practices and then again in the United States in 1998 for its response to the Internet and Netscape Navigator. We will then turn to two competition policy actions against Microsoft in Europe.
Google Emerges (and the World Responds)
In this module, we will focus on Google and its arc from 1998 start up to dominance and repeated antitrust target. We will look at the underlying tech, two-sided markets and auctions and then at antitrust investigations in the U.S. and the EU.
Smartphones
In this module, we will focus on the emergence of the smartphones platform. That is an interesting mix of government policy (especially regarding spectrum), collective private activity (standard setting, such as that for the 802.11 standard and for Wi-Fi), and individual private actions (such as that leading to the Apple iPhone and the Android platform).
Nondiscrimination and Neutrality
In this module, we will focus on the issue of network neutrality, or, as the U.S. Federal Communications Commission likes to put it, the open Internet.
The Day the Music Died?
In this module, we will focus on different platforms for distributing music. That will start with the great home technology of the early 1900s—the phonograph and the player piano—before turning to radio and the ASCAP and BMI licensing regime for public performances. We then will turn to a failed technology and legal regime, digital audio tape and the Audio Home Recording Act of 1992. We will then switch to MP3 players, from the relatively obscure (the Diamond Rio) to the ubiquitous (the iPod) and to Apple’s digital rights management regime. We will then switch to the issues raised by peer-to-peer software like Napster and Grokster and then close with an examination of the switch from physical distribution media to digital and subscriptions like Spotify.
Video: Listening and Watching
In this module, we will focus on the different platforms for delivering video to the home. We will start with the history of TV in the U.S. in the 1940s and then jump to the copyright issues associated with the creation of cable TV in the 1960s and 1970s. We will then switch to considering two devices (the VCR and the DVD player), two services (Netflix and Aereo) and then creation of digital TV.
The Mediated Book
In this module, we will focus on the emergence of digital books and digital libraries. Three topics loom large: (1) Google’s efforts to copy millions of books and bring them online through Google Books; (2) Amazon’s creation of the Kindle ebook platform; and (3) Apple’s launch of the iPad with its associated bookstore and the resulting antitrust lawsuit over that launch.
Course Review
We review the entire course in this last module.
Internet Giants: Experimental
Done with the course? Wondering what comes next? Me, too, but this is where the experimental module comes in. A module to test other ways to interact and to explore ideas that might appear in future versions of the course.
Mandatory Continuing Legal Education Information
This course has been approved for continuing legal education credit in Illinois and this section describes the process for obtaining that credit.

Good to know

Know what's good
, what to watch for
, and possible dealbreakers
Focuses on examining the interplay of technological innovation and the law
Examines cases that apply antitrust law to technology companies
Taught by Randal C. Picker, an experienced scholar and author in law and technology
Explores emerging technology issues in the context of smartphones, networks, and digital media
Provides a comprehensive overview of the complex legal issues surrounding media platforms
Discusses the evolution of media delivery technologies and their impact on copyright law

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Reviews summary

Law and economics of internet giants

Learners say that this course offers engaging assignments and a thorough overview of the development of major tech companies. Instructor Randy Picker is praised for his ability to make complex legal and economic concepts clear and entertaining. While the course is largely positive, some learners note that the content is slightly outdated, having been produced in 2015. Despite this, learners widely recommend this course for those interested in the history, law, and economics of media platforms.
Excellent instructor who presents complex topics clearly and engagingly
"Professor Picker presents a lucid, thorough and engaging perspective on the rise of big data companies."
"Randy’s old-fashioned lecture style, his high pitched voice, his sweater and dry humor really brought me back to the university campus."
"Randy Picker is a very knowledgeable, personable and gifted presenter."
Thorough and well-organized overview of the law and economics of media platforms
"The information was eye-opening and I learned a lot about how the American judicial system works."
"The curriculum is very well designed."
"Excellent course for those interested in a good foundation of basics of the history, economics, law, and origins of major internet platforms such as Apple, Google, Amazon, Netflix, Microsoft, etc."
The course content is slightly outdated, having been produced in 2015
"This course felt like a long journey, thankfully, it was presented in short and brief segments thus allowing for some breather from time to time."
"The downside of the course is the exaggerated use of annoying sounds such as the long stretch of AAAAAAs and MMMMs between the sentences made by the professor which at times disrupted the good contents of the segment."
"This content is over five years old. That technology changes daily - and so do laws and court proceedings - this content is severely outdated."

Activities

Coming soon We're preparing activities for Internet Giants: The Law and Economics of Media Platforms. These are activities you can do either before, during, or after a course.

Career center

Learners who complete Internet Giants: The Law and Economics of Media Platforms will develop knowledge and skills that may be useful to these careers:
Copyright Specialist
Copyright Specialists are responsible for protecting the intellectual property rights of their clients. They work with clients to register copyrights and trademarks, and they also represent clients in copyright infringement lawsuits. The Internet Giants course would be helpful for Copyright Specialists who want to learn more about the legal and economic issues surrounding media platforms. The course would provide them with a deep understanding of the copyright law and the digital marketplace, which would be invaluable in their practice.
Intellectual Property Lawyer
Intellectual Property Lawyers are responsible for protecting the intellectual property rights of their clients. They work with clients to register patents, trademarks, and copyrights, and they also represent clients in intellectual property infringement lawsuits. The Internet Giants course would be helpful for Intellectual Property Lawyers who want to specialize in technology law. The course would provide them with a deep understanding of the legal and economic issues surrounding media platforms, which would be invaluable in their practice.
Technology Lawyer
Technology Lawyers are responsible for representing clients in the technology industry. They work with clients on a variety of legal issues, including intellectual property, privacy, and antitrust law. The Internet Giants course would be helpful for Technology Lawyers who want to learn more about the legal and economic issues surrounding media platforms. The course would provide them with a deep understanding of the digital marketplace and the First Amendment, which would be invaluable in their practice.
Policy Analyst
Policy Analysts are responsible for researching and analyzing public policy issues. They work with policymakers to develop and implement policies that address a variety of social and economic problems. The Internet Giants course would be helpful for Policy Analysts who want to specialize in technology policy. The course would provide them with a deep understanding of the legal and economic issues surrounding media platforms, which would be invaluable in their work.
Privacy Lawyer
Privacy Lawyers are responsible for protecting the privacy rights of their clients. They work with clients to develop privacy policies and procedures, and they also represent clients in privacy litigation. The Internet Giants course would be helpful for Privacy Lawyers who want to learn more about the legal and economic issues surrounding media platforms. The course would provide them with a deep understanding of the Fourth Amendment and the digital marketplace, which would be invaluable in their practice.
Media Lawyer
Media Lawyers are responsible for representing clients in the media industry. They work with clients on a variety of legal issues, including defamation, copyright infringement, and privacy law. The Internet Giants course would be helpful for Media Lawyers who want to learn more about the legal and economic issues surrounding media platforms. The course would provide them with a deep understanding of the digital marketplace and the First Amendment, which would be invaluable in their practice.
Trademark Attorney
Trademark Attorneys are responsible for protecting the trademark rights of their clients. They work with clients to register trademarks, and they also represent clients in trademark infringement lawsuits. The Internet Giants course would be helpful for Trademark Attorneys who want to specialize in technology law. The course would provide them with a deep understanding of the legal and economic issues surrounding media platforms, which would be invaluable in their practice.
Patent Attorney
Patent Attorneys are responsible for protecting the intellectual property rights of their clients. They work with clients to register patents, and they also represent clients in patent infringement lawsuits. The Internet Giants course would be helpful for Patent Attorneys who want to specialize in technology law. The course would provide them with a deep understanding of the legal and economic issues surrounding media platforms, which would be invaluable in their practice.
Telecommunications Lawyer
Telecommunications Lawyers are responsible for representing clients in the telecommunications industry. They work with clients on a variety of legal issues, including regulatory compliance, antitrust law, and intellectual property law. The Internet Giants course would be helpful for Telecommunications Lawyers who want to learn more about the legal and economic issues surrounding media platforms. The course would provide them with a deep understanding of the digital marketplace and the First Amendment, which would be invaluable in their practice.
Attorney
Attorneys are responsible for interpreting the law and applying it to specific situations. They also advocate for their clients in court and provide legal advice. The Internet Giants course would be helpful for Attorneys who want to specialize in technology law. The course would provide them with a deep understanding of the legal and economic issues surrounding media platforms, which would be invaluable in their practice.
Journalism Professor
Journalism Professors teach courses on the theory and practice of journalism. They also conduct research on journalism-related topics. The Internet Giants course would be helpful for Journalism Professors who want to learn more about the legal and economic issues surrounding media platforms. The course would provide them with a deep understanding of the digital marketplace and the First Amendment, which would be invaluable in their teaching and research.
Media Studies Professor
Media Studies Professors teach courses on the history, theory, and impact of media. They also conduct research on media-related topics. The Internet Giants course would be helpful for Media Studies Professors who want to learn more about the legal and economic issues surrounding media platforms. The course would provide them with a deep understanding of the digital marketplace and the First Amendment, which would be invaluable in their teaching and research.
Political Science Professor
Political Science Professors teach courses on the theory and practice of politics. They also conduct research on politics-related topics. The Internet Giants course would be helpful for Political Science Professors who want to learn more about the legal and economic issues surrounding media platforms. The course would provide them with a deep understanding of the digital marketplace and the First Amendment, which would be invaluable in their teaching and research.
Economics Professor
Economics Professors teach courses on the theory and practice of economics. They also conduct research on economics-related topics. The Internet Giants course would be helpful for Economics Professors who want to learn more about the legal and economic issues surrounding media platforms. The course would provide them with a deep understanding of the digital marketplace and the antitrust laws, which would be invaluable in their teaching and research.
Communication Studies Professor
Communication Studies Professors teach courses on the theory and practice of communication. They also conduct research on communication-related topics. The Internet Giants course would be helpful for Communication Studies Professors who want to learn more about the legal and economic issues surrounding media platforms. The course would provide them with a deep understanding of the digital marketplace and the First Amendment, which would be invaluable in their teaching and research.

Reading list

We've selected 23 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Internet Giants: The Law and Economics of Media Platforms.
An **excellent resource** for understanding the legal and economic issues surrounding copyright in the digital age. Essential reading for anyone interested in the copyright issues raised by the rise of online content distribution.
Provides a comprehensive history of Silicon Valley and the tech industry, from its early days to the present day. It valuable resource for understanding the context of the course's topics.
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A foundational work on the intersection of law and technology; Examines the legal implications of digital technologies and the need for a new framework for governing cyberspace; Discusses issues such as intellectual property, privacy, and free speech.
A thought-provoking exploration of the potential risks and challenges posed by the internet's development; Examines issues such as privacy, surveillance, and the spread of misinformation; Provides a framework for understanding and addressing the future of the internet.
A comprehensive overview of antitrust law and its application to American businesses; Examines the history, theories, and enforcement of antitrust laws; Provides insights into the legal and economic implications of antitrust regulation.
Provides a history of the telecommunications industry and the rise of the internet. It valuable resource for understanding the infrastructure that underpins the tech industry.
A forward-looking analysis of the industries that will shape the future economy; Examines the potential impact of emerging technologies such as artificial intelligence, biotechnology, and renewable energy; Provides insights into the skills and knowledge required to succeed in the workforce of tomorrow.
Explores the history of advertising and the rise of the attention economy. It valuable resource for understanding the business models of the tech industry.
Provides an overview of platform businesses and the economics of two-sided markets. It valuable resource for understanding the business models of the tech industry.
While this book focuses more on the **business impacts** of disruptive technologies than law and economics, it provides a framework for understanding how established companies can struggle to compete against smaller, more agile newcomers.
A more **recent book** that argues that antitrust law needs to be more aggressive in breaking up large tech companies. Provides a good overview of the current debate over antitrust and the tech industry.
Provides a **theoretical framework** for understanding how disruptive technologies can lead to the downfall of established companies. Offers insights into the challenges that tech companies face in adapting to new technologies.
An exploration of the transformative impact of digital technologies on society and the economy; Discusses the potential benefits and risks of technological advancements such as artificial intelligence, blockchain, and the Internet of Things; Provides a vision for shaping a future that is both prosperous and equitable.
An examination of the struggle for control over online content and expression; Discusses the role of copyright law, free speech principles, and digital technologies in shaping the digital landscape; Provides a historical perspective on the evolution of digital rights.
Provides a visual overview of the history of information technology and the rise of the internet. It valuable resource for understanding the broader context of the course's topics.
Explores the challenges facing capitalism in the 21st century, including the rise of technology and the growing inequality. It valuable resource for understanding the broader context of the course's topics.
Provides an overview of the economics of information and the network economy. It valuable resource for understanding the broader context of the course's topics.
Explores the dangers of big data and algorithms. It valuable resource for understanding the ethical issues raised by the tech industry.
A controversial but **influential book** that argues that antitrust law is often counterproductive. Provides a different perspective on the role of antitrust in regulating the tech industry.
Explores the dangers of relying too heavily on metrics and data. It valuable resource for understanding the ethical issues raised by the tech industry.
Explores the dangers of filter bubbles and the impact of personalized content on our lives. It valuable resource for understanding the ethical issues raised by the tech industry.

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