By 1996, it became clear to everyone in the halls of power that there was something important about to happen. We were about to have an information economy, whatever the Hell that was. They assumed it meant an economy where we bought and sold information. Information technology improves efficiency, so imagine the markets that an information economy would have! You could buy a book for a day, you could sell the right to watch the movie for a Euro, and then you could rent out the pause button for a penny per second. You could sell movies for one price in one country, at another price in another, and so on. The fantasies of those days were like a boring science fiction adaptation of the Old Testament Book of Numbers, a tedious enumeration of every permutation of things people do with information—and what might be charged for each.
Unfortunately for them, none of this would be possible unless they could control how people use their computers and the files we transfer to them. After all, it was easy to talk about selling someone a tune to download to their MP3 player, but not so easy to talk about the the right to move music from the player to another device. But how the Hell could you stop that once you'd given them the file? In order to do so, you needed to figure out how to stop computers from running certain programs and inspecting certain files and processes. For example, you could encrypt the file, and then require the user to run a program that only unlocked the file under certain circumstances.
But, as they say on the Internet, now you have two problems.
You must now also stop the user from saving the file while it's unencrypted—which must happen eventually— and you must stop the user from figuring out where the unlocking program stores its keys, enabling them to permanently decrypt the media and ditch the stupid player app entirely.
Now you have three problems: you must stop the users who figure out how to decrypt from sharing it with other users. Now you've got four problems, because you must stop the users who figure out how to extract secrets from unlocking programs from telling other users how to do it too. And now you've got five problems, because you must stop users who figure out how to extract these secrets from telling other users what the secrets were!
That's a lot of problems. But by 1996, we had a solution. We had the WIPO Copyright Treaty, passed by the United Nations World Intellectual Property Organization. This created laws that made it illegal to extract secrets from unlocking programs, and it created laws that made it illegal to extract media (such as songs and movies) from the unlocking programs while they were running. It created laws that made it illegal to tell people how to extract secrets from unlocking programs, and it created laws that made it illegal to host copyrighted works or the secrets. It also established a handy streamlined process that let you remove stuff from the Internet without having to screw around with lawyers, and judges, and all that crap.
And with that, illegal copying ended forever, the information economy blossomed into a beautiful flower that brought prosperity to the whole wide world; as they say on the aircraft carriers, “Mission Accomplished".
) Like I said before, iTunes and Steam are great examples of this.
