Stories like this. It is always wonderful to come back to stories like fred and the better thriving so visibly. The vast time i spoke it was amazing to see the Community Supporting the store. Thank you offer being Stores Supporters of great independent stores tearjerkers to have been. Not all places do. This is an extraordinary bookstore. So like many of you i earned my living from the art over the internet. Even if youre living on the internet today there is a reasonable chance that some fraction of how you live tomorrow will take this on the internet because after all everything about the internet and everything we do tomorrow will require it. Theres a wonderful thing about the hours since it is very much a personalized, individual life at tbd. When you look at the income of people who work in the art, you see each one is doing something different. Usually profoundly different even at 10000 feet it might look like a painter is a painter and a novelist as a novelist they do something that is unique to the way they practice the media. The frustrating thing is this means theres not one easy way to kind of get into the cars. There is no prescribed path to answer the hours and thrive on it. There is no one great Business Model for the art. So almost everyone who earns a living in the arts has lost money in the business. Of those who actually made money and the ice, most of them made of various elemental. Those who made lots of money many didnt can tame you to earn lots of money. They crashed and burned. It is independent of your media your area have area have the economic arts effectively always worked. Short of a minimum guaranteed income it is hard to imagine a copyright regime that would provide an income to a significant plurality of people who like to earn a living from the iris. It is kind of a six sigma event. Something very rare. You imagine a firing line, maybe the 49th parallel with people lined all along it and they are all passing points all day long and most of those coins will, either heads or tails. If enough people passing of coins enough times, stumbling and on the edge. Obviously you can get better at making your coin land on the edge. You can practice getting your coin land on the edge. The more you flip your coin, the greater the chance. The one thing we can tell about everyone is that they may all have in common with one another more than perseverance, more than skill is sloth. Sophistic; all collaborated to get the coin to land on the edge. Now with the winners that the people in this contest should get their coin on the edge their culture here is then put on magazines and high people tell them that theyve done Something Wonderful. You would see lots of people lining up to be professional coin passers. Not only could you imagine that people would be feted for doing this or celebrated for doing this imagine that tossing a coin was something intrinsically satisfying which is what we talk about when we talk about our. We give people who have mentally start through ptsd, we get them art therapy, a critical means of recovering their equilibrium. Art comes with the human condition. This is what living in the arts really looks like. Its an incredibly lucky thing that some of us get them that many people try to participate in because not only is an intrinsically satisfying, but the people who win are thought to ask to have done Something Wonderful and extort very. Artists in particular dont like to be reminded that the luck element in this because art as a class can suffer and so reminding people who have succeeded in the hours that their success is as much of luck is perseverance and talent is something horrifying. It is like a reminder that this too shall pass on any day you might end up like your colleagues are you started off with is a young writer or young teacher or some other artist who worked as hard as you did but never made it and so its a great way to get people very angry at you is to remind them that they owe their success has much to luck as to any other intrinsic value. The arts are foundational in a nonmarketing tvt. They are not doing something economically rational. The economically rational return on artistic investment is negative. Would make it anyway. So what we talk about the art and technology we bring to its something that economists call survivor bias. We examine people who succeed in the art and say how can we make sure these kinds of people who are successful artists, the kind of artist that should be succeeding and make it work we love, how do we ensure they go on succeeding with . This is an entirely backwards way of thinking about the knowledge in relationship to the art. If you think back to the dawn of recorded music, before recorded music and before radio it was literally inconceivable to imagine a musician who was a great musician whose performances were thrilled millions, but he didnt like being in front of crowds. This is as weird as a swimmer who could be an omen that Gold Medalist but didnt like water. The advent of radio and records made it possible to be a kind of artist that would conceive before that and although the artist who had made their career on the stage were off should about the future that John Philip Sousa with the American Congress in 1909 and internal talking machines are about to go on. We lose our voice boxes as sure as we lost our tails when we came down over the trees. Points to sousa for being controversial series of natural selection, i. T. Sure paints a big teacher there. When we say that what we preserve its Business Model instead of a fortune of artist as a class we end up on one hand strangling the potential artist who might thrive in the new technical reality. More importantly we go to war against whatever technological and social factors have given rise to a new art and artistic crack this. The major impact of radio was not that it created a new artist. A major impact of radio was that remade the world every single way we could think of. When you go to war against radio, you dont decide as a party send for a live performance. Use side for a whole way of being that was precluding the radio is not a part of the way we build out our world. So i am someone who is lucky enough to win the art lottery in the last round of technology that is rapidly changing unsorted being replaced a new kinds of technology. For me personally, what Business Model will be the best Business Model is one that is extremely important. Putting on and taking off my party send for me had been putting on my partisan for artist as a class have committed things im most interested in is how do we ensure that the rules that we formulate for the art guarantee whatever money is being generated for artistic crack this is preferentially to the people who make art on the secondarily to the people who invested art and people with the platforms and retailers to make the art available. I have grandiosely characterize this prethree loss of arts in the 20th century. I live in the United Kingdom so when i come to north america to give a talk oftentimes the first day that i am here at whatever talk i gave her a little bit hallucinogenic because they are influenced by an allnight jet lag session which im allowed basically rewriting the speech that i widely wrote when i was well rested back in london. So this is no exception. I was in new york to give a talk at a publishing conference. I wrote my talking came up with this thing i called doctorow law. I went out to eat with my agent. I went out to lunch with my aged and used to represent arthur c. Clarke and albuquerque stay. I said i came up with the law and i presented it today at a conference and it went over really well. He said if theres one thing i learned to representing arthur c. Clarke cant have one law. You have to have three. So that is how this talk is structured. Its how the new book is structured. Its a brand that fairytale theme. So blog number one, the law i came up with at 2 00 in the morning at a New York Hotel room if any time someone gives you a law book and want to be the key you can ensure it is there for your benefit. So if youve ever made something creative and then intemperate to sell it on the internet using one of the platforms like amazon and the apple app store, google apps store when you make that available you are often given a checkbox that says what you like to protect your work or piracy or would you like to protect your work more generically . Would you like to add Digital Rights management to your work . If you have ever gotten a deal where youve gone to a publisher or record label or studio to make your work available chances are they almost always kick off that box. Protecting your work doesnt sound like a crazy idea. Here is what happens when you kick the ball. The platform you are using to make your work available scrambles your work. It encrypts it so you cant read it without some kind of descrambler. They provide to the audience that discriminant program or device and apple on a phone, the netflix plugin for your browser and that he scrambles the work. That technology, that will have this characteristic determined by the people who made it that amazon or netflix or apple when they will decide what it can and cant have. Netflix, for example is this consensus hallucination that theres a difference between a download and a screen. I can somehow give you a stream over its not a downloadable work so you can stream the movie, but you dont get a copy of it somehow. It doesnt land on your hard drive ever. What they mean when they say ive given you downloaded not a stream is activated, but the program they use doesnt have a save button. The way they ensure that as they provide you with the descrambling program that doesnt have a save button and provided that no one can figure out how to descrambling using the program into which they might insert a save button they make a distinction between downloading and streaming. They can make a post about how you can and cant use media and do this thing that has been a holy grail of technology and the fairytale day you can subdivide a piece of artistic work in todays thinner and thinner slices. Maybe you dont want the whole painting. Maybe the right to look at the painting on wednesday. I will sell you the wednesday rights of the painting. In theory this opens up a whole economic model that has never been explored before. They only ever wanted to painting and now people who are historically lots of the painting can get into the painting market by only buying the ones they write. So they can make the subdivided markets that people have been talking about for 20, 30 years now. The way this works as i provide you with a player. The player has the key to unscramble the thing that i scrambled and provided you cant figure out how i had the key you cant make your own work. Effectively what this is as ive given you a program or device had hidden a secret somewhere in there. As long as you can figure out where ive given you that youve got to take home and subject to whatever abuse that you want to subject it to you in whatever analysis you want to subject it to, so long as you never figure out where this thing that you own and keeping your lab or in your company or in your hacker space come you never figure out where i had the key. By model works. You may have found a flaw in the model. Theres a reason they dont let the big keeper keep atf in their living room aired it doesnt matter how well built, if you handed to the person you dont trust, they will eventually figure out how to open it up. When your adversaries include more grad students that theyre an electron microscope with nothing to do this weekend, it is kind of game over. So in theory, no one would ever want a digital lock on their work because they would be broken immediately. The law has a fix for this. Starting in 1998 the United States had a digital copyright act in all over the world with less analogous to it, we made it illegal to break the digital allows them a duty to represent keys are hidden to make your own players. So now, you have a world where anyone can download from the internet and ripped a dvd, but there are no products you can buy. You have to know it exists to rip a dvd. It is not a thing where theres coops that will show you how to do it. It is all kind of shady and theres not any obvious paths to ripping a dvd. You can think of these has been in past. In practice they are not really because in practice the easiest way to rip a dvd is to find a copy someone elses arty ripped on the pirate bay and download it yourself. You dont have to be smart enough to figure out how to break the protection on the dvd. He does have to be smart enough to find a copy of the dvd that someone else broke the protection on. As soon as works are made available, they are available for download without paying for them. The antipiracy site doesnt work although the peoplehood make the tool said well its better than nothing. What my first law tells you is its actually worse than nothing. The reason its worse than nothing is that the rules around the digital laws the 1998 copyright act says that when you allow someone to log your Creative Work only they are about to remove the lock. So if adobe or apple or amazon lock up your work and you decide later to you when to start selling your work through one of their competitors and you say you know, i would like it if you are if you unlock all those books you sold to my readers so they can come with me to one of your competitors, only they get the right to decide whether or not they are going to do it and chances are they are not going to do it because you are basically letting them out of their walledgarden where they generate lots of money from being able to exploit the fact your customers are locked into them. We actually just saw this play out in real time with one of the big five publishers. Five major publishers left in the world. Two are german, one titled newspaper family and one mostly felt like cluster bombs and landmines. And a french one is owned by a company that also does lots of things including selling cluster bombs. They clearly hasnt read out their ardor for us. Theyre remarkably strategically illiterate because theyve always insisted their works be sold with digital locks on them. And so every book in all of their imprints thats ever been sold has been sold lockstep to some platforms technology. Last year or the beginning of this year amazon sat down and said you were the first of the big five to do 10 year deal is with us. It is time to negotiate the new 10 year deal and we want a lot here we want a lot. They said that is more than we are prepared to give. Amazon said no problem you dont have to sell your books duress anymore. Actually intaglio agree to the terms, we are not going to sell your books anymore. No longer will people be about two by jk rowlings books or Amanda Palmer spoke through amazon which accounts for 40 to 50 of all of the books in north america. This is a huge blow. If they had not launched their work up with amazon, magic anticopying snake oil, they wouldve said albright it is your choice whether or not you want to carrier books are not carriere books, but so long as you are not carrying our books we are going to make them available everywhere else at halfprice and make this little app that takes their amazon book and turns them into apple books or google books or anyone elses platform book and all of those people that you have sold at a loss to get them into your walledgarden, they will walk out of fall with the morals because people dont live books because the bookstore. They are not by jk rowling because they came from amazon here they are buying it because they love jk rowling books and so they will follow jk rowling were to retake her. They werent allowed to do that. They were capable because they had sold the right to control their customers to amazon for effectively nothing. Theyre crazy for you bear customers to amazon platform. They have this other line of business a Company Called audible that is the major audio book market. Where you get to decide whether or not you let them lock up your books, if you make your audio books available you have to allow amazon to lock your book. And they are 90 of the market. And they are the only ones allowed to provide audio books to itunes. So if you ever buy the idea book on itunes, it is all locks to amazon. It is not like amazon said you know, weve got all these people who work for our company and a lot of them are super cutthroat hypercompetitive. We will make the work for other divisions and the ones that are patchouli scented, easygoing they will work for audible. Amazon is like a normal curve of cutthroat Business Activities and they have the same proportion of cutthroat Business People work in their audible divisions and other divisions except that audible has suppliers by much shorter, curly or hairs. So its really only a matter of time until days start to turn the screw here. Ill buy you a not one of mine, that in the near future we will see happening instead make a shot site look like a my little pony episode. So that is my law. Anytime someone locks up something that belongs to you and will give you the key you can be sure the lock is in there for benefit. Now the second lot is being famous wont make you rich, but knowable by your art unless they have heard of you. So this Great Technology innovator and entrepreneur and publisher. He publishes a rather books, computer books with the animals on the cover. He coined the term open source and web 2. 0 and hes great with open aphorisms. He said two years ago for most artists a problem with tiresias of security. That resonate for a lot of people. People went to war without on their banners and i think when people heard that, a lot of them unfortunately misunderstood. They thought he was saying if youre famous enough youll be rich. And of course thats not true us all. But it is absolutely true that no one can buy your works unless theyve heard of them. The way people hear about her works as creators of the 21st century is using the internet and my father so the way they give us money. Said the Search Engines and social media of Online Platforms like you to. We are remunerated for them to send payment like square or paypal or advertising brokers like googles ad words were true crowd funding platforms like kickstart. The way that we are now living happens on the internet. Sometimes it happens to a traditional publisher or studio or label and sometime