Law Commons^™

Free Speech Unmoored In Copyright’S Safe Harbor: Chilling Effects Of The Dmca On The First Amendment, Wendy Seltzer

Wendy Seltzer

Each week, more blog posts are redacted, more videos deleted, and more web pages removed from Internet search results based on private claims of copyright infringement. Under the “safe harbors” of the Digital Millennium Copyright Act (DMCA), Internet service providers are encouraged to respond to copyright complaints with content takedowns, assuring their immunity from liability while diminishing the rights of their subscribers and users. Paradoxically, the law’s shield for service providers becomes a sword against the public who depend upon these providers as platforms for speech.

Under the DMCA, process for an accused infringer is limited. The law offers Internet …

Negligent Insider Trading: A Viable Theory Of Civil Liability?, Steven Brody

Steven Brody

A flurry of civil suits by the SEC and private parties has followed on the heels of the collapse of the subprime mortgage market. Many of these actions raise theories of liability that are still developing in the area of white collar crime and securities fraud. As the SEC and private parties seek to explore new theories under which to bring suit, this article briefly addresses one as-yet unexplored avenue that many academic authorities have alluded to as possible under Section 17 of the Securities Act of 1933: that of “negligent insider trading.” While such a theory has yet to …

Department Stores On Sale: An Antitrust Quandary, Mark D. Bauer

Mark D Bauer

In 2005, Macy’s bought its largest competitor, May Department Stores, for $17 billion. The resulting combination created a department store behemoth with over one thousand stores across the United States. Despite protests by the attorneys general of a number of states, and consumers and advocacy groups around the country, the Federal Trade Commission (“FTC”) blessed this merger without requiring any modification in its terms. And according to law and economics scholars, this merger had no substantive impact on consumers, competition or consumer welfare.

My empirical research, published in an earlier law review article, showed that Macy’s now charges consumers 13% …

Estimating Monopoly Power With Economic Profits, Michael A. Williams, Kevin Kreitzman, Melanie S. Williams, William M. Havens

Melanie S. Williams

Monopolization and attempted monopolization are prohibited by section 2 of the Sherman Act. Proving the existence of monopoly power, however, is problematic. While direct evidence is sometimes available, more often courts rely on indirect—and sometimes highly disputed—evidence that firms have obtained or attempted to obtain monopoly power. Courts have been reluctant to rely on direct evidence of supra-normal profits as proof of monopoly power because (1) accounting profits as recorded in firms’ financial statements differ from economic profits, which fundamentally determine whether a firm as monopoly power, and (2) short-term, supra-normal profits are not, by themselves, evidence that a firm …

Leveraged Buyout Bankruptcies, The Problem Of Hindsight Bias, And The Credit Default Swap Solution, Michael N. Simkovic, Benjamin S. Kaminetzky

Michael N Simkovic

No abstract provided.

Should "Substitute" Private Attorneys General Enforce Public Environmental Actions? Balancing The Costs And Benefits Of The Contingency-Fee Environmental Special Counselor Arrangement, Julie E. Steiner

Julie E. Steiner

There is developing phenomenon of quasi-privatized environmental enforcement occurring on behalf and in the name of governments by entrepreneurial attorneys who substitute in place of the public enforcers and derive professional payment from a contingent fee withdrawn from the public’s environmental damage award. This Article addresses the question of whether governments should permit private attorneys to handle these “substitute environmental special counsel” enforcement arrangements. In so doing, the Article weighs the arrangement’s costs and benefits from the standpoint of whether it maximizes the deterrence and restorative compensation goals of environmental enforcement.

Governments are often the only entities with standing to …

An Environmental Role For Energy Regulators, Jeremy Knee

Jeremy Knee

No abstract provided.

Nadie Sabe Para Quien Trabaja: La Propiedad En La Jurisprudencia Del Tribunal Constitucional, Enrique Pasquel

Enrique Pasquel

En este trabajo se analiza lo que el Tribunal Constitucional peruano ha dicho sobre la protección que brinda la Constitución al derecho a la propiedad privada.

Landlords Of Last Resort: Should The Government Subsidize The Mortgages Of Privately-Owned, Small Multifamily Buildings?, David J. Reiss

David J Reiss

The absence of stable financing options has long caused difficulties for owners of small multifamily buildings. Despite the ongoing maturation of a secondary mortgage market for small multifamily mortgages, this housing stock continues to shrink due to abandonment, demolition, foreclosure and other causes. As these buildings house many low-income households, some have suggested subsidizing the financing costs for the owners of these buildings. Any proposal to subsidize these landlords to meet affordable housing goals, however, should be predicated on determinations that (i) it is an efficient means to provide housing to the neediest tenants and (ii) the multifamily mortgage market …

Fannie Mae And Freddie Mac: Creatures Of Regulatory Privilege, David J. Reiss

David J Reiss

This book chapter addresses the appropriate role of Fannie Mae and Freddie Mac, the government-chartered, privately owned mortgage finance companies, in the United States housing finance sector. The federal government recently placed Fannie and Freddie in conservatorship. These two massive companies are profit-driven, but as government-sponsored enterprises they also have a government-mandated mission to provide liquidity and stability to the United States mortgage market and to achieve certain affordable housing goals. How the two companies should exit their conservatorship has implications that reach throughout the global financial markets and are of key importance to the future of American housing finance …

Financing The Next Silicon Valley, Darian M. Ibrahim

Darian M Ibrahim

Silicon Valley’s success has led other regions to attempt their own high-tech transformations, yet most imitators have failed. Entrepreneurs may be in short supply in these “non-tech” regions, but some non-tech regions are home to high-quality entrepreneurs who relocate to Silicon Valley due to a lack of local financing for their start-ups. Non-tech regions must provide local finance to prevent entrepreneurial relocation and reap spillover benefits for their communities. This Article compares three possible sources of entrepreneurial finance – private venture capital, state-sponsored venture capital, and angel investor groups – and finds that angel groups have distinct advantages when it …

Individualism Submerged: Climate Change And The Perils Of An Engineered Environment, Juliet P. Stumpf, Daniel J. Chepaitis, Andrea Panagakis

Juliet P Stumpf

Current approaches to addressing the negative impacts of climate change rely on collective capabilities. Welfare economics and contractualism, the two conventional perspectives that dominate the debate, support the pursuit of adaptive strategies such as large-scale geoengineering projects to reduce solar radiation or ameliorate sea-water inundation. In place of returning greenhouse gas emissions to natural levels, these approaches put the global climate system and compensation for losses resulting from climate change under the control of some group of fellow humans. In other words, they privilege mechanisms that increase each individual=s dependence on a collective decisionmaker and decrease the individual=s capacity to …

Valuing Intellectual Property: An Experiment, Christopher Sprigman, Christopher Buccafusco

Christopher Sprigman

In this article we report on the results of an experiment we performed to determine whether transactions in intellectual property (IP) are subject to the valuation anomalies commonly referred to as “endowment effects”. Traditional conceptions of the value of IP rely on assumptions about human rationality derived from classical economics. The law assumes that when people make decisions about buying, selling, and licensing IP they do so with fixed, context-independent preferences. Over the past several decades, this rational actor model of classical economics has come under attack by behavioral data showing that people do not always make strictly rational decisions. …

Problems And Reforms In Mortgage-Backed Securities: Handicapping The Credit Rating Agencies, Franz P. Hosp

Franz P Hosp V

Here we go again - another financial mess with credit rating agencies in the cross hairs. This is nothing new. Over the last four decades, credit rating agencies have been associated with several major financial disasters: the bankruptcy of Penn Central Transportation Company in 1970, the bankruptcy of Orange County in 1994, the Asian financial crisis in the late 1990's, the bankruptcy of Enron in 2001, and the bankruptcy of WorldCom in 2002.

Currently, the United States is suffering from an economic crisis precipitated largely by the deterioration of mortgage-backed securities. The process of securitizing mortgages is complex and involves …

Matters Of Preference: Tracing The Line Between Citizens, Democratic States, And International Law, Mark A. Chinen

Mark A. Chinen

In this Article, we assess the role the aggregation of citizen preferences into the foreign policy choices of a democratic country might play in the legitimization of international law. After addressing some of the theoretical and empirical issues associated with such an approach, we use an anticipated reaction model developed by Michael Bailey to show that even in large democracies there are mechanisms through which citizen preferences can be and are reflected in the policy choices of their representatives. Incumbents and candidates for office take policy positions in hopes of maximizing their future election chances. Although policymakers each have their …

Congress, Corporate Boards, And Oversight: A Private Law / Public Law Comparison, Paul S. Miller

Paul S. Miller

This article argues that a system of congressional oversight based on trust can produce more effective government than one based on highly detailed regulations. The article first presents historic examples of congressional oversight and the ways in which trust contributed both to the effectiveness of the oversight and to the success of the policies at issue. The article goes on to examine the rise of trust theory in corporate governance as a means of making oversight by boards of directors more effective and thereby making corporations more profitable. The final part of the article explores how use of trust theory …

Firms As Social Actors, Richard Adelstein

Richard Adelstein

A close look at what firms are and how they act.

Altruism And Innovation In Health Care, Anupam Bapu Jena, Stéphane Mechoulan, Tomas J. Philipson

Stéphane Mechoulan

The joint presence of technological change and consumption externalities is central to health care industries around the world, because medical innovation drives the expansion of the health care sector and altruism seems to motivate many public subsidies. Although traditional economic analysis has proposed well-known remedies to deal with consumption externalities and inefficient technological change in isolation, it lacks clear principles for addressing them jointly. We argue that standard remedies to each of the two problems are inadequate. Focusing on U.S. health care, we provide illustrative calculations of the dynamic inefficiency in the level of research and development (R&D) spending when …

When Users Are Authors: Authorship In The Age Of Digital Media, Alina Ng

Alina Ng

This Article explores what authorship and creative production means in the digital age. Notions of the author as the creator of the work provided a point of reference for recognizing ownership rights in literary and artistic works in conventional copyright jurisprudence. The role of the author, as the creator and producer of a work, has been seen as distinct and separate from that of the publisher and user. Copyright laws and customary norms protect the author’s rights in his creation to provide the incentive to create and allow him to appropriate the social value generated by his creativity as recognition …

Organizations And Economics, Richard Adelstein

Richard Adelstein

A contribution to a symposium on a paper by Richard Posner.

Debt As Venture Capital, Darian M. Ibrahim

Darian M Ibrahim

Venture debt, or loans to rapid-growth start-ups, is a puzzle. How are start-ups with no track records, positive cash flows, tangible collateral, or personal guarantees from entrepreneurs able to attract billions of dollars in loans each year? And why do start-ups take on debt rather than rely exclusively on equity investments from angel investors and venture capitalists (VCs), as well-known capital structure theories from corporate finance would seem to predict in this context? Using hand-collected interview data and theoretical contributions from finance, economics, and law, this Article solves the puzzle of venture debt by revealing that a start-up’s VC backing …

¿En Qué Momento Se Jodió El Sur? Crecimiento Económico, Derechos De Propiedad Y Regulación Del Crédito En Las Colonias Británicas Y Españolas En América, Enrique Pasquel

Enrique Pasquel

Las instituciones legales de las colonias británicas y españolas pueden ayudar a explicar los distintos niveles de desarrollo económico en esas regiones. Este artículo se centra en el marco legal de los derechos de propiedad y el mercado del crédito en la época colonial, analizando las políticas de asignación de tierras, el establecimiento de registros, los programas de titulación, las cargas sobre la tierra y las restricciones al crédito.

Regulation By Markets And Higher Education, Benedict Sheehy

Benedict Sheehy

Markets have a number of uses. One increasingly important use by politicians is as a means of regulating the supply and distribution of goods and services formerly supplied and distributed by governments on non-market bases. The use of markets as a regulator of higher education is not novel. However, the increased reliance on markets as a regulator of higher education is an on-going experiment with certain predictable failures. This article explores the uses of the market in the supply and distribution of higher education and weighs it against the stated policy objectives, with particular attention to the application proposed in …

De Que Forma A Economia Auxilia O Profissional E O Estudioso Do Direito?, Bruno Meyerhof Salama

Bruno Meyerhof Salama

The Politics And Psychology Of Gasoline Taxes: An Empirical Study, Shi-Ling Hsu

Shi-Ling Hsu

No abstract provided.