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SRFF Joins Public Knowledge Urging FTC To Clarify Digital Ownership Rights

FTC up close

On the surface, a concept such as “ownership” seems straight-forward, invoking what are often thought of as a “bundle of rights” such as possession, use, and disposition of property obtained – directly or indirectly – through one’s labor.

In fact, the idea of property as a natural right is deeply rooted in English Common Law and the 17th and 18th century philosophy of “Natural Rights” articulated by thinkers like John Locke and Sir William Blackstone profoundly shaped American legal culture and the U.S. Constitution.

You bought a smart device. Do you really own it?

However, in our increasingly digital age, the concept of “ownership” is under threat, as a large segment of our economy moves from the physical to the digital realm, even while software and Internet connectivity work their way into more and more physical objects. When it comes to digital materials, the concept of “ownership” is not so cut and dry. Although sellers advertise and promote the value of purchasing a “smart” product like an e-book or smart home appliance in the same way as they did their non-digital predecessors, current copyright law calls into question whether these items can be “owned” in the same way. For example, a physically functional digital device may have support for the software that runs it terminated by the company that sold it, effectively breaking (or “bricking”) the device. Or, simple repairs by the device owner or an independent repair shop may be prohibited by the manufacturer, citing copyright laws and restrictive EULA (end user license agreement) terms, bringing use of the owner’s “property” to a premature end.

Also, a change in the licensing arrangement between the company “selling” you digital material and the owners of the copyright can cut off your access to materials you have already paid for. In reality, you are not buying a copy of a digital purchase, but rather paying to access it for however long the provider makes it available to you. The issue is that this reality is not clearly communicated to consumers, with sellers marketing their digital materials as purchases when in reality they amount to a long term rental. 

These misleading marketing practices sparked Oregon Senator Ron Wyden to send a letter to the Federal Trade Commission (FTC) urging the Commission to require the transparent presentation of the terms of digital sales to consumers. As Senator Wyden put it, “prior to agreeing to any transaction, consumers should understand what they are paying for and what is guaranteed after the sale.”

On May 7th, Secure Resilient Future Foundation joined with Public Knowledge and 15 other groups in sending a letter to the FTC expressing support for Senator Wyden’s position while also articulating the importance of consumer protections surrounding digital products.

Read the letter

The letter, signed by SRFF, Public Knowledge as well as groups such as Consumer Reports, iFixit, US PIRG, Repair.org and the Electronic Frontier Foundation highlighted three main areas in which the FTC needs to clarify consumer rights when it comes to the ownership of digital products. They are:

Jointly signed letter to the FTC urging clarification of digital ownership.
  • The Right to Use: Ownership must mean continued access and the ability to use the digital product. If a digital store closes or a service ends, users should retain functional access to their media. 
  • The Right to Preserve: Consumers must have the technical and legal ability to archive, repair, and back up digital purchases. Ownership must allow consumers to ensure they can still access and use their stuff even after a platform ends support or the content is removed from a catalog. 
  • The Right to Transfer: Like physical goods, digital products should be transferable. Whether by lending to a friend, leaving to children in a will, donating to a library, or reselling, consumers deserve to exercise this traditional ownership prerogative.

You can read the jointly signed letter by clicking this link.

About SRFF

Secure Resilient Future Foundation is an organization focused on protecting and promoting transparent, secure, and sustainable technology in our digital world. To keep up to date with SRFF and our current campaigns, check out our other blog posts and please join our email list at https://secure-resilient.org/join-the-fight/. SRFF is also a non profit organization of cyber security and technology experts that fights for digital progress with the help of donations. You can donate to SRFF and further support our mission at https://givebutter.com/SRFFlaunch

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