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A Mathematical Model of Copyright

by Breck Yunits

May 26, 2023 โ€” What is copyright, from first principles? This essay introduces a mathematical model of a world with ideas, then adds a copyright system to that model, and finally analyzes the predicted effects of that system.


Part 1: The world

The world

WW

The world WW contains observers who can make point-in-time observations OtO_t[1] of WW.

Ideas

I:f(Ot1,tฮ”)โ†’Ot1+tฮ”I: f(O_{t_1}, t_\Delta) โ†’ O_{{t_1}+{t_\Delta}}

An idea II is a function that given input observations at time t1t_1 can generate expected observations at time t1+tฮ”{t_1}+{t_\Delta}.

Thinkers

TT

A thinker[2] TT can store ideas II in TT.

Skillsets

SS

A skillset SS is the set of {โ€‰Ii,โ€ฆ,Inโ€‰}\set{I_i, \mathellipsis, I_n} embedded in TT.

Idea Creation

ฮฑ:f(S,O,t)โ†’Inew\alpha: f(S, O, t) โ†’ I_{new}

A thinker can generate a new idea InewI_{new} from its current skillset SS and new observations OO in time tt.

Value

V:f(I,Opredictions,Oactual)โ†’โˆ‘(Oactualโˆ’Oprediction)2V: f(I, O_{predictions}, O_{actual}) โ†’ \sum{(O_{actual} - O_{prediction})}^2

An idea II can be valued by a function VV which measures the accuracy of all of the predictions produced by the idea Ot1+t2O_{{t_1}+{t_2}} against the actual observations of the world WW at time t1+t2{}_{{t_1}+{t_2}}. Idea IiI_i is more valuable than idea IjI_j if it produces more accurate observations holding the size of โˆฃIโˆฃ|I| constant.

Fictions

FF

A fiction[3] FF is an II that does not accurately model WW.

Messages

MM

Thinkers can communicate II to other thinkers by encoding II into messages MIM_I.

Signal

ฮฉ:โˆ‘V(I)โˆฃMโˆฃ\Omega: \frac{\sum{V(I)}}{|M|}

The Signal ฮฉ\Omega of a message is the value of its ideas divided by the size of the message.

Fashions

ZZ

A fashion ZMIZ_{M_I} is a different encoding of the same idea II.

Teachers

ฯ„\tau

A teacher is a TT who communicates messages MM to other TT. A thinker TT has access to a supply of teachers ฯ„\tau within geographic radius rr so that ฯ„={โ€‰TโˆฃT<rโ€‰}\tau = \set{T|T < r}.

Learning

L:f(MI,T)โ†’Tโ€ฒL: f(M_I, T) โ†’ T^\prime

The learning function LL applies MIM_I to TT to produce Tโ€ฒT^\prime containing some memorization of the message MIM_I and some learning of the idea II.

Objectives

BB

A thinker TT has a set of objectives BTB_T that they can maximize using their skillset STS_T.

Technologies

XX

TT can use their skillset SS to modify the world to contain technologies XX.

Technology Creation

ฮ :f({โ€‰Tโ€‰},{โ€‰Xโ€‰},t)โ†’Xnew\Pi: f(\set{T},\set{X}, t) โ†’ X_{new}

Technology creation is a function that takes a set of thinkers and a set of existing technologies as input to produce a new technology XnewX_{new}.

Artifacts

AA

With XX MIM_I can be encoded to a kind of XX called an artifact AA.

Creators

ฯ‡\chi

A creator ฯ‡\chi is a TT who produces AA.

Outliers

ฯƒ\sigma

An outlier ฯƒ\sigma is a ฯ‡\chi who produces exceptionally high quality AA.

Copies

KK

A copy KAK_A is an artifact that contains the same MM as AA.

Derivatives

Aโ€ฒA^{\prime}

A derivative Aโ€ฒA^{\prime} is an artifact updated by a ฯ‡\chi to better serve the objectives BB of ฯ‡\chi.

Libraries

JJ

A library JJ is a collection of AA.

Attention

NN

Thinkers TT have a finite amount of attention NN to process messages MM.

Distribution

D:f(Ao,To)โ†’AToD: f(A_o, T_o) โ†’ A_{T_o}

Distribution is a function that takes artifact AA at location oo and moves it to the thinker's location ToT_o.

Publishers

QQ

A publisher is a set of TT specializing in production of AA.

Censors

U:U(D)U: U(D)

A censor is a function that wraps the distribution function and may prevent an AA from being distributed.

Part 2: Adding copyright to the model

Masters

ฮจ\Psi

A master ฮจ\Psi is now legally assigned to each artifact for duration dd so AA becomes AฮจA^{\Psi}.

Royalties

RR

A royalty RR is a payment from TT to ฮจ\Psi for a permission on AฮจA^\Psi.

Permission Function

P:f(Aฮจ,T)โ†’{โˆ’1,0,R}โˆ—(ฮธ=Pr(ฮจ,Aฮจ)) in t<dP: f(A^\Psi, T) โ†’ \{-1, 0, R\} * (\theta = Pr(\Psi, A^\Psi)) \text{ in } t < d

For every AฮจA^\Psi used in ฮ \Pi a permission function PP must be called and resolve to >โˆ’1>-1 and royalties of โˆ‘RAฮจ\sum{R_{A^\Psi}} must be paid. If any call to PP returns โˆ’1-1 the creation function ฮ \Pi fails. If a PP has not resolved for AฮจA^{\Psi} in time dd it resolves to 0.[4] PP always resolves with an amount of uncertainty ฮธ\theta that the ฮจ\Psi is actually the legally correct AฮจA^\Psi.

Classes

T={TR+if Rinโˆ’Rout>0TRโˆ’if Rinโˆ’Routโ‰ค0T = \begin{cases} T_{R+} &\text{if } R_{in} - R_{out} > 0 \\ T_{R-} &\text{if } R_{in} - R_{out} \leq 0 \end{cases}

The Royal Class TR+T_{R+} is the set of TT who receive more RR than they spend. Each member of the Non-Royal Class TRโˆ’T_{R-} pays more in RR than they receive.

Public Domain

A0A^0

A public domain artifact A0A^0 is an artifact claimed to have no ฮจ\Psi or an expired dd. The PP function still must be applied to all A0A^0 and the uncertainty term ฮธ\theta still exists for all A0A^0.

Advertising

ฮ›:f(Ai,Ajฮจ)โ†’Aij\varLambda: f(A_i, A_j^\Psi) โ†’ A_{ij}

Advertising is a function ฮ›\varLambda that takes an AA and combines it with an orthogonal artifact AjฮจA_j^\Psi that serves BฮจB_\Psi.

Part 3: Predicted effects of copyright

Effect on Z

โ‡‘ZI\Uparrow {Z \over I}

We should expect the ratio of Fashions ZZ to Ideas II to significantly increase since there are countless MM that can encode II and each unique MM can be encoded into an AฮจA^\Psi that can generate RR for ฮจ\Psi.

Effect on F

โ‡‘F\Uparrow F

We should expect the number of Fictions FF to increase since RR are required regardless if the MM encoded by AA accurately predicts the world or not. ฮจ\Psi are incentivized to create AA encoding FF that convince TT to overvalue AฮจA^\Psi.

Effect on ฮ›\varLambda

โ‡‘ฮ›\Uparrow \varLambda

We should expect a significant increase in the amount of advertising ฮ›\varLambda as ฯ‡\chi are prevented from generating Aโ€ฒA^{\prime} with ads removed.

Effect on โˆฃMโˆฃ|M|

โ‡‘โˆฃMโˆฃ\Uparrow |M|

We should expected the average message size โˆฃMโˆฃ|M| to increase because doing so increases RR by decreasing ฮธ\theta and increasing AฮจA^\Psi.

Effect on ฮฉ\Omega

โ‡“ฮฉ\Downarrow \Omega

We should expect the average signal ฮฉโ€พ\overline{\Omega} of messages to decrease.

Effect on K

โ‡‘KInew\Uparrow {K \over I_{new}}

We should expect the ratio of number of copies KK to new ideas InewI_{new} to increase since the cost of creating a new idea ฮฑฮฑ is greater than the cost of creating a copy KK and royalties are earned from AA not II.

Effect on ฮ \Pi

โ‡“ฮ \Downarrow \Pi

We should expect the speed of new artifact creation to slow because of the introduction of Permission Functions PP.

Effect on J

โ‡‘Z+F+KI\Uparrow {{Z + F + K} \over I}

We should expect libraries to contain an increasing amount of fashions ZZ, fictions FF, and copies KK relative to distinct ideas II.

Effect on S

โ‡“S\Downarrow S

We should expect a decrease in the average thinker's skillset Sโ€พ\overline{S} as more of a thinker's NN is used up by Z,F,KZ, F, K and less goes to learning distinct II.

Effect on Iโ€ฒI^\prime

โ‡“Iโ€ฒ\Downarrow I^\prime

We should expect the rate of increase in new ideas to be lower due to the decrease in Sโ€พ\overline{S}.

Effect on Classes

fโ€ฒ(R,TR+)>0f^{\prime}(R, T_{R+}) > 0
fโ€ฒ(R,TRโˆ’)<0f^{\prime}(R, T_{R-}) < 0

We should expect the Royal Class TR+T_{R+} to receive an increasing share of all royalties RR as surplus RR is used to obtain more RR streams.

Effect on ฯƒ\sigma

ฯƒโ†’TR+>0\sigma โ†’ T_{R+} > 0

We should expect a small number of outlier creators to move from TRโˆ’T_{R-} to TR+T_{R+}.

Effect on A0A^0

โ‡“A0Aฮจ\Downarrow {{A^0} \over A^\Psi}

We should expect a decrease in the amount of A0A^0 relative to AฮจA^\Psi as TR+T_{R+} will be incentivized to eradicate A0A^0 that serve as substitutes for AฮจA^\Psi. In addition, the cost to TT of using any A0A^0 goes up relative to before because of the uncertainty term ฮธ\theta.

Effect on Aโ€ฒA^{\prime}

โ‡“Aโ€ฒ\Downarrow A^{\prime}

We should expect the number of Aโ€ฒA^{\prime} to fall sharply due to the addition of the Permission Functions PP.

Effect on B

โ‡‘BฮจBT\Uparrow {{B_\Psi} \over {B_T}}

We should expect AA to increasingly serve the objective functions of ฮจ\Psi over the objective functions BTB_T.

Effect on Q

โ‡“Q\Downarrow Q

We should expect the number of Publishers QQ to decrease due to the increasing costs of the permission functions and economies of scale to the winners.

Effect on U

โ‡‘U\Uparrow U

We should expect censorship to go up to enforce copyright laws.

Effect on AยฉA_ยฉ

โ‡‘Aยฉ\Uparrow A_ยฉ

We should expect the number of AA promoting ยฉ to increase to train TT to support a ยฉ system.

Effect on TRโˆ’T_{R-}

โ‡“TRโˆ’\Downarrow T_{R-}

We should expect the Non-Royal Class TRโˆ’T_{R-} to pay an increasing amount of RR, deal with an increasing amount of noise from Z+F+K{Z + F + K}, and have increasingly lower skillsets Sโ€พ\overline{S}.


Conclusions

New technologies XnewX_{new} and specifically AnewA_{new} can help TT maximize their BTB_T and discover InewI_{new} to better model WW.

A copyright system would have no effect on InewI_{new} but instead increase the noise from Z+F+K{Z + F + K} and shift the Aโ€พ\overline{A} from serving the objectives BTB_T to serving the objectives BฮจB_\Psi.

A copyright system should also increasingly consolidate power in a small Royal Class TR+T_{R+}.

โ‚

Notes

[1] The terms in this model could be vectors, matrices, tensors, graphs, or trees without changing the analysis.

[2] We will exclude thinkers who cannot communicate from this analysis.

[3] The use of "fictions" here is in the sense of "lies" rather than stories. Fictional stories can sometimes contain true II, and sometimes that may be the only way when dealing with censors ("artists use lies to tell the truth").

[4] If copyright duration is 100 years then that is the max time it may take PP to resolve. Also worth noting is that even a duration of 1 year introduces the permission function which significantly complicates the creation function ฮ \Pi.




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