Computer Law Commons^™

Tax Reporting As Regulation Of Digital Financial Markets, Young Ran (Christine) Kim

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FTX’s recent collapse highlights the overall instability that blockchain assets and digital financial markets face. While the use of blockchain technology and crypto assets is widely prevalent, the associated market is still largely unregulated, and the future of digital asset regulation is also unclear. The lack of clarity and regulation has led to public distrust and has called for more dedicated regulation of digital assets. Among those regulatory efforts, tax policy plays an important role. This Essay introduces comprehensive regulatory frameworks for blockchain-based assets that have been introduced globally and domestically, and it shows that tax reporting is the key …

How The Blockchain Undermined Digital Ownership, Aaron Perzanowski

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The shift from a market built around the sale of tangible goods to one premised on the licensing of digital content and services has done significant and lasting damage to the notion of individual ownership. The emergence of blockchain technology, while certainly not necessary to reverse these trends, promised an opportunity to attract investment and demonstrate consumer demand for marketplaces that recognize meaningful digital ownership. Simultaneously, it offered an avenue for alleviating worries about hypothetical widespread reproduction and unchecked distribution of copyrighted works. Instead, many of the most visible blockchain projects in recent years—the proliferation of new cryptocurrencies and the …

Revolt Against The U.S. Hegemony: Judicial Divergence In Cyberspace, Dongsheng Zang

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This Article contributes to our understanding of the current state of cyber law. The global perspective demonstrates an almost uniform response to the U.S. law in cyberspace from all of America's major trading partners. In the past, comparative studies tended to focus on a single jurisdiction-typically, the European Union-and compared it with the United States. This approach, informative as it was, significantly understated the gravity of the differences between that jurisdiction and the United States. Fundamentally, it was based on an American-centric outlook with primary interests in building convergence models. In cyberspace, however, this is simply not helpful. In recent …

Modeling Through, Ryan Calo

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Theorists of justice have long imagined a decision-maker capable of acting wisely in every circumstance. Policymakers seldom live up to this ideal. They face well-understood limits, including an inability to anticipate the societal impacts of state intervention along a range of dimensions and values. Policymakers cannot see around corners or address societal problems at their roots. When it comes to regulation and policy-setting, policymakers are often forced, in the memorable words of political economist Charles Lindblom, to “muddle through” as best they can.

Powerful new affordances, from supercomputing to artificial intelligence, have arisen in the decades since Lindblom’s 1959 article …

The Promise And Limits Of Lawfulness: Inequality, Law, And The Techlash, Salomé Viljoen

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In response to widespread skepticism about the recent rise of “tech ethics”, many critics have called for legal reform instead. In contrast with the “ethics response”, critics consider the “lawfulness response” more capable of disciplining the excesses of the technology industry. In fact, both are simultaneously vulnerable to industry capture and capable of advancing a more democratic egalitarian agenda for the information economy. Both ethics and law offer a terrain of contestation, rather than a predetermined set of commitments by which to achieve more democratic and egalitarian technological production. In advancing this argument, the essay focuses on two misunderstandings common …

Clearing Opacity Through Machine Learning, W. Nicholson Price Ii, Arti K. Rai

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Artificial intelligence and machine learning represent powerful tools in many fields, ranging from criminal justice to human biology to climate change. Part of the power of these tools arises from their ability to make predictions and glean useful information about complex real-world systems without the need to understand the workings of those systems.

A Critical Evaluation Of The Effectiveness And Legitimacy Of Webblocking Injunctions, Mark Hyland

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Relative to the dual criteria of effectiveness and legitimacy, this article evaluates webblocking injunctions in the context of intellectual property law and with a particular focus on the vanguard role played by the English Courts. With regard to the first criterion, it is argued that there is reason to think that webblocking injunctions are viewed by IP owners as well as by legislators and courts as a relatively effective instrument in the protection of IP assets. Moreover, the extension of webblocking orders to trade marks together with their adoption in a number of legal systems, is further evidence that these …

A U.S. Dst? The Potential Impact Of The Cloud Regulations, Reuven Avi-Yonah, Karen Sam

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In this article, the authors explain how the recently proposed U.S. cloud computing regulations would apply to U.S. and foreign providers, and consider the potential consequences if the rule for permanent establishments and U.S. trades or businesses changes in 2020.

An Agent-Based Model Of Financial Benchmark Manipulation, Gabriel Virgil Rauterberg, Megan Shearer, Michael Wellman

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Financial benchmarks estimate market values or reference rates used in a wide variety of contexts, but are often calculated from data generated by parties who have incentives to manipulate these benchmarks. Since the the London Interbank Offered Rate (LIBOR) scandal in 2011, market participants, scholars, and regulators have scrutinized financial benchmarks and the ability of traders to manipulate them. We study the impact on market quality and microstructure of manipulating transaction-based benchmarks in a simulated market environment. Our market consists of a single benchmark manipulator with external holdings dependent on the benchmark, and numerous background traders unaffected by the benchmark. …

Regulating Bot Speech, Madeline Lamo, Ryan Calo

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We live in a world of artificial speakers with real impact. So-called “bots” foment political strife, skew online discourse, and manipulate the marketplace. Concerns over bot speech have led prominent figures in the world of technology to call for regulations in response to the unique threats bots pose. Recently, legislators have begun to heed these calls, drafting laws that would require online bots to clearly indicate that they are not human.

This work is the first to consider how efforts to regulate bots might run afoul of the First Amendment. At first blush, requiring a bot to self-disclose raises little …

Fintech: Antidote To Rent-Seeking?, Jeremy Kidd

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Fintech is a reality of our modern society, and will likely become even more so in the future. Peer-to-peer lending, cybercurrencies, smart contracts, algorithmic lending, and more, have required adaptation by consumers and producers of financial services. Our modes of doing business will continue to be challenged and changed by these and other Fintech innovations, almost certainly expanding beyond merely “promot[ing] financial inclusion, expand[ing] access to capital for individuals and small businesses, and more broadly reshap[ing] how society interacts with financial services.” By reducing transaction costs, advancing technology opens the doors to innovations the likes of which we might not …

Is The License Still The Product?, Robert W. Gomulkiewicz

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The Supreme Court rejected the use of patent law to enforce conditional sales contracts in Impression Products v. Lexmark. The case appears to be just another step in the Supreme Court’s ongoing campaign to reset the Federal Circuit’s patent law jurisprudence. However, the decision casts a shadow on cases from all federal circuits that have enforced software licenses for more than 20 years and potentially imperils the business models on which software developers rely to create innovative products and to bring those products to market in a variety of useful ways.

For over two decades, we could say that …

Artificial Intelligence In Health Care: Applications And Legal Implications, W. Nicholson Price Ii

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Artificial intelligence (AI) is rapidly moving to change the healthcare system. Driven by the juxtaposition of big data and powerful machine learning techniques—terms I will explain momentarily—innovators have begun to develop tools to improve the process of clinical care, to advance medical research, and to improve efficiency. These tools rely on algorithms, programs created from healthcare data that can make predictions or recommendations. However, the algorithms themselves are often too complex for their reasoning to be understood or even stated explicitly. Such algorithms may be best described as “black-box.” This article briefly describes the concept of AI in medicine, including …

Lessons Learned Too Well: Anonymity In A Time Of Surveillance, A. Michael Froomkin

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It is no longer reasonable to assume that electronic communications can be kept private from governments or private-sector actors. In theory, encryption can protect the content of such communications, and anonymity can protect the communicator's identity. But online anonymity-one of the two most important tools that protect online communicative freedom-is under practical and legal attack all over the world. Choke-point regulation, online identification requirements, and data-retention regulations combine to make anonymity very difficult as a practical matter and, in many countries, illegal. Moreover, key internet intermediaries further stifle anonymity by requiring users to disclose their real names.

This Article traces …

Robotics And The Lessons Of Cyberlaw, Ryan Calo

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Two decades of analysis have produced a rich set of insights as to how the law should apply to the Internet’s peculiar characteristics. But, in the meantime, technology has not stood still. The same public and private institutions that developed the Internet, from the armed forces to search engines, have initiated a significant shift toward developing robotics and artificial intelligence.

This Article is the first to examine what the introduction of a new, equally transformative technology means for cyberlaw and policy. Robotics has a different set of essential qualities than the Internet and accordingly will raise distinct legal issues. Robotics …

Search Neutrality As An Antitrust Principle, Daniel A. Crane

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Given the Internet's designation as "the great equalizer,"' it is unsurprising that nondiscrimination has emerged as a central aspiration of web governance.2 But, of course, bias, discrimination, and neutrality are among the slipperiest of regulatory principles. One person's bias is another person's prioritization. Fresh on the heels of its initial success in advocating a net neutrality principle,' Google is in the uncomfortable position of trying to stave off a corollary principle of search neutrality.' Search neutrality has not yet coalesced into a generally understood principle, but at its heart is some idea that Internet search engines ought not to prefer …

Open Robotics, M. Ryan Calo

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Robotics is poised to be the next transformative technology. Robots are widely used in manufacturing, warfare, and disaster response, and the market for personal robotics is exploding. Worldwide sales of home robots—such as iRobot’s popular robotic vacuum cleaner—are in the millions. In fact, Honda has predicted that by the year 2020, it will sell as many robots as it does cars. Microsoft founder Bill Gates believes that the robotics industry is in the same place today as the personal computer (“PC”) business was in the 1970s, a belief that is significant given that there are now well over one billion …

Enforcement Of Open Source Software Licenses: The Mdy Trio's Inconvenient Compliations, Robert W. Gomulkiewicz

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The Federal Circuit’s ruling in Jacobsen v. Katzer [535 F.3d 1373 (Fed. Cir. 2008)] finally settled the question of whether open source licenses are enforceable. Unfortunately, three recent cases from the Ninth Circuit have complicated matters. I call this trio of cases the “MDY Trio” in honor of the Ninth Circuit’s prior trio of licensing cases known as the “MAI Trio.”

On the surface, the MDY Trio provides a boost for the enforceability of software licenses, but the MDY Trio also creates two significant complications for open source licenses. First, the MDY Trio’s test for distinguishing between licenses and copyright …

People Can Be So Fake: A New Dimension To Privacy And Technology Scholarship, M. Ryan Calo

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This article updates the traditional discussion of privacy and technology, focused since the days of Warren and Brandeis on the capacity of technology to manipulate information. It proposes a novel dimension to the impact of anthropomorphic or social design on privacy.

Technologies designed to imitate people-through voice, animation, and natural language-are increasingly commonplace, showing up in our cars, computers, phones, and homes. A rich literature in communications and psychology suggests that we are hardwired to react to such technology as though a person were actually present.

Social interfaces accordingly capture our attention, improve interactivity, and can free up our hands …

Government Data Breaches, A. Michael Froomkin

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No abstract provided.

Open Source License Proliferation: Helpful Diversity Or Hopeless Confusion?, Robert W. Gomulkiewicz

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A decade ago, I observed that licenses were the "unnoticed force" behind free and open source software ("FOSS"). Since then, legal scholarship on FOSS licensing has gone from a trickle to a torrent. Likewise, economists, political scientists, and anthropologists (among others) have begun to focus on FOSS licensing, each from their own academic perspectives. FOSS programmers themselves (known as "hackers" in the FOSS community) have refocused on FOSS licensing, most notably by revising the most venerable FOSS license, the GNU General Public License ("GPL"), for the first time in more than fifteen years.

One prominent issue among hackers and business …

Property And Probable Cause: The Fourth Amendment's Principled Protection Of Privacy, Ricardo J. Bascuas

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No abstract provided.

The Dangers Of The Digital Millennium Copyright Act: Much Ado About Nothing?, Steve P. Calandrillo, Ewa A. Davison

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In 1998, Congress passed the Digital Millennium Copyright Act (DMCA), a landmark piece of legislation aimed at protecting copyright holders from those who might manufacture or traffic technology capable of allowing users to evade piracy protections on the underlying work. At its core, the DMCA flatly prohibits the circumvention of “technological protection measures” in order to gain access to copyrighted works, but provides no safety valve for any traditionally protected uses.

While hailed as a victory by the software and entertainment industries, the academic and scientific communities ties have been far less enthusiastic. The DMCA’s goal of combating piracy is …

The Magnificence Of The Disaster: Reconstructing The Sony Bmg Rootkit Incident, Deirdre K. Mulligan, Aaron Perzanowski

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Late in 2005, Sony BMG released millions of Compact Discs containing digital rights management technologies that threatened the security of its customers' computers and the integrity of the information infrastructure more broadly. This Article aims to identify the market, technological, and legal factors that appear to have led a presumably rational actor toward a strategy that in retrospect appears obviously and fundamentally misguided.

The Article first addresses the market-based rationales that likely influenced Sony BMG's deployment of these DRM systems and reveals that even the most charitable interpretation of Sony BMG's internal strategizing demonstrates a failure to adequately value security …

A Dispatch From The Crypto Wars, A. Michael Froomkin

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Matt Curtin's Brute Force is a primarily personal account of one early effort to harness the power of distributed computing. In 1997, Mr. Curtin and other members of the DESCHALL (DES Challenge) project built, distributed, and managed software that united thousands of computers, many of them ordinary personal computers, in the search for a single decryption key among 72 quadrillion possibilities. The DESCHALL project sought to demonstrate that DES, then the U.S. national standard encryption algorithm, was no longer as secure as advertised. While Brute Force also offers some background on encryption regulation, export control policy, and other aspect of …

General Public License 3.0: Hacking The Free Software Movement's Constitution, Robert W. Gomulkiewicz

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The General Public License (GPL) enshrines a softwarehacker's' freedom to use code in important ways. Hackers oftenrefer to the GPL as the free software movement's "constitution."Richard Stallman, founder of the Free Software Foundation (FSF), wrote the most recent version of the GPL, version 2.0, back in 1991. For a constitution, a fourteen-year-old document is young, but for a license, it is quite old. The revision process is finally underway, led by Stallman and Eben Moglen, FSF's general counsel.

The release of GPL version 3.0 will be momentous for many reasons, but one reason stands out: The GPL governs much of …

General Public License 3.0: Hacking The Free Software Movement's Constitution, Robert W. Gomulkiewicz

Articles

The General Public License (GPL) enshrines a software hacker’s freedom to use code in important ways. Hackers often refer to the GPL as the free software movement’s “constitution.” Richard Stallman, founder of the Free Software Foundation (FSF) wrote the most recent version of the GPL, version 2.0, back in 1991. For a constitution, a fourteen-year-old document is young, but for a license, it is quite old. The revision process is finally underway, led by Stallman and Eben Moglen, FSF’s general counsel.

The release of GPL version 3.0 will be momentous for many reasons, but one reason stands out: The GPL …

Contracting Spyware By Contract, Jane K. Winn

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The question of what constitutes "spyware" is controversial because many programs that are adware in the eyes of their distributors may be perceived as spyware in the eyes of the end user. Many of these programs are loaded on the computers of end users after the end user has agreed to the terms of a license presented in a click-through interface.

This paper analyzes whether it might be possible to reduce the volume of unwanted software loaded on end users' computers by applying contract law doctrine more strictly. Unwanted programs are often bundled with programs that the end user wants, …

Getting Serious About User-Friendly Mass Market Licensing For Software, Robert W. Gomulkiewicz

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Software publishers use standard form end user licenses (“EULAs”) in mass market transactions on a regular basis. Most software users find EULAs perplexing and generally ignore them. Scholars, however, have focused on them intently. In the past twenty years over a hundred scholarly articles have been written on the subject. Most of these articles criticize EULAs and argue that courts should not enforce them. In their critique of EULAs, some scholars examine the adequacy of the offer, acceptance, and consideration. Others discuss EULAs as part of the troublesome issue of standard form contracting, and whether standard forms, on balance, harm …

Entrepreneurial Open Source Software Hackers: Mysql And Its Dual Licensing, Robert W. Gomulkiewicz

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Hackers often quibble about commercializing software, yet most willreadily sell their programming services. Richard Stallman, the father of free software, has always recognized that hackers have a right to make money. Aside from selling programming services, however, Stallman's disciples seem to frown upon commercializing software. Other hackers, labeling themselves "open source" developers, have warmed to the possibility that free software may be profitable.

This article describes one of the most promising business models for hackers, called "dual licensing." In this model, hackers offer the same code under two different licenses: a commercial license and an open source license. Licensees who …