The idea of balancing the readers’ interests against the publishers’ is the wrong way to judge copyright policy, but there are indeed two interests to be weighed: two interests
The word “balance,” in discussions of copyright, has come to stand as shorthand for the idea of “striking a balance” between the readers and the publishers. Therefore, to use the word “balance” in regard to the readers’ two interests would be confusing. We need another term.
In general, when one party has two goals that partly conflict, and cannot completely achieve both of them, we call this a “trade-off.” Therefore, rather than speaking of “striking the right balance” between parties, we should speak of “finding the right trade-off between spending our freedom and keeping it.”
The second mistake in copyright policy consists of adopting the goal of maximizing—not just increasing—the number of published works. The erroneous concept of “striking a balance” elevated the publishers to parity with the readers; this second error places them far above the readers.
When we purchase something, we do not generally buy the whole quantity in stock or the most expensive model. Instead we conserve funds for other purchases, by buying only what we need of any particular good, and choosing a model of sufficient rather than highest quality. The principle of diminishing returns suggests that spending all our money on one particular good is likely to be an inefficient allocation of resources; we generally choose to keep some money for another use.
Diminishing returns applies to copyright just as to any other purchase. The first freedoms we should trade away are those we miss the least, and whose sacrifice gives the largest encouragement to publication. As we trade additional freedoms that cut closer to home, we find that each trade is a bigger sacrifice than the last, while bringing a smaller increment in literary activity. Well before the increment becomes zero, we may well say it is not worth its incremental price; we would then settle on a bargain whose overall result is to increase the amount of publication, but not to the utmost possible extent.
Accepting the goal of maximizing publication rejects all these wiser, more advantageous bargains in advance—it dictates that the public must cede nearly all of its freedom to use published works, for just a little more publication.
In practice, the goal of maximizing publication regardless of the cost to freedom is supported by widespread rhetoric which asserts that public copying is illegitimate, unfair, and intrinsically wrong. For instance, the publishers call people who copy “pirates,” a smear term designed to equate sharing information with your neighbor with attacking a ship. (This smear term was formerly used by authors to describe publishers who found lawful ways to publish unauthorized editions; its modern use by the publishers is almost the reverse.) This rhetoric directly rejects the constitutional basis for copyright, but presents itself as representing the unquestioned tradition of the American legal system.
The “pirate” rhetoric is typically accepted because it so pervades the media that few people realize how radical it is. It is effective because if copying by the public is fundamentally illegitimate, we can never object to the publishers’ demand that we surrender our freedom to do so. In other words, when the public is challenged to show why publishers should not receive some additional power, the most important reason of all—“We want to copy”—is disqualified in advance.
This leaves no way to argue against increasing copyright power except using side issues. Hence, opposition to stronger copyright powers today almost exclusively cites side issues, and never dares cite the freedom to distribute copies as a legitimate public value.
As a practical matter, the goal of maximization enables publishers to argue that “A certain practice is reducing our sales—or we think it might—so we presume it diminishes publication by some unknown amount, and therefore it should be prohibited.” We are led to the outrageous conclusion that the public good is measured by publishers’ sales: What’s good for General Media is good for the USA.