More on Newspapers and Aggregators

If newspapers ultimately survive, they might owe a debt of gratitude not only to Rupert Murdoch (as Patrick Maines suggested here recently), but also to two brothers who have combined their expertise in economics and the law to analyze the problem and come up with a potential solution.

As I wrote here earlier this month, online aggregators quite possibly could kill off newspapers by pirating the papers’ original news content.   Among the industry watchers who have studied this phenomenon are Daniel Marburger, Ph.D., a professor of economics at Arkansas State University, and his brother David Marburger, Esq., a partner at the Baker Hostetler law firm in Cleveland.   

The brothers have conducted an extensive analysis of both the economic and legal frameworks of the newspaper industry (print and online), and how these frameworks intertwine in the digital age.  In a number of papers and articles, the Marburgers have gone beyond the usual observations in two important ways: (1) They draw a distinction between “pure aggregators” and “parasitic aggregators”; and (2) they suggest a way of closing a loophole in copyright law that would seriously curtail the so-called parasites.

“Pure aggregators,” they say, use only a headline and maybe a sentence from the original news source, and then link back to that source (i.e., a newspaper website).  Pure aggregators are economically good for papers on balance because they drive readers to the newspapers’ websites.

“Parasitic aggregators,” on the other hand, take content from newspaper sites, rewrite it a bit, and then pass it off on their own sites.  These parasitic aggregators are bad because they retain readers rather than drive them to the newspapers’ sites.

In the Marburgers’ longest paper on the economic viability of newspapers, two section titles sum up the problem and its effect: “The federal copyright act allows parasitic aggregators to ‘free-ride’ on others’ substantial journalistic investments”; and “If the law does not change, newspapers continually will diminish their journalistic resources until they can subsist only by underproducing news or until they go out of business.”

The Marburgers’ solution would allow newspapers to seek redress for unfair competition under state statutory or common-law remedies for unjust enrichment – remedies that federal copyright law has in effect precluded since 1976.  They’re not suggesting a new law – just an amendment to Section 301 of the Copyright Act.

In this short space I am oversimplifying the Marburgers’ excellent analysis and recommendations – but I hope I can help draw attention to a thoughtful paper that is worthy of serious consideration and widespread recognition.   

Aggregating Newspapers Into Extinction

Hardly a day goes by without another reminder that the demise of newspapers is in full swing.
    
In the Outlook section of yesterday’s Washington Post (Sun., Aug. 2) came the latest, an anecdotal example by Post reporter Ian Shapira titled “How Gawker Ripped Off My Story & Why It’s Destroying Journalism.”  The title pretty much sums things up.
    
Gawker is, in Shapira’s words, “the snarky New York culture and media Web site.”  More importantly, it is a news aggregator, and it had written about and heavily excerpted an earlier story Shapira had written for the Post.
    
At first Shapira was glad for the recognition, until his editor reminded him that he, and the Post, had been ripped off.  Shapira had spent several days researching and writing his original story (and getting paid by the Post to do so).  Gawker repackaged his story in no more than an hour and posted it on its site – for free (or close to it, if you count the time of the poorly paid 29-year-old “independent contractor” who did it).
    
And therein lies the worst-case scenario for the destruction of journalism – which is to say, original reporting.  Newspapers are already being decimated financially by online media sites and blogs.  To the extent that any of these sites offers serious journalism, that journalism frequently consists of stories that have been ripped off, er, “aggregated,” from established newspapers.
    
But here’s the rub: As online aggregators continue to strangle the newspaper industry, they are killing the geese that have been laying their golden eggs – original reporting.  Once the newspapers are dead (or knocked senseless), from where will high-quality journalism originate?  How many online outlets will be able to pay real reporters the way newspapers did?  What will pass for journalism?
    
It’s already happening.  Buyouts have emptied newsrooms of many of their most experienced and knowledgeable reporters, leaving things in the hands of novices.  (A small example: An inexperienced reporter at the Post refers to the Obama inauguration train’s observation car as a “caboose,” and the editor doesn’t know the difference.)
    
Sadly, even the august New York Times is not immune.  A piece by the Times’ Public Editor Clark Hoyt on Aug 1. described how the paper of record’s appraisal of Walter Cronkite contained seven factual errors – something of a record, no doubt, and a feat unimaginable in an earlier era.
    
Yesterday I was sitting with a group of friends and one of them was reading the Sunday New York Times.  He asked me if I wanted to see it, and proffered a selection of unmistakably slim sections.  He added apologetically: “The Times isn’t what it used to be.”  No, my friend, it isn’t.  But neither are the rest of them.
    
I don’t know where all of this is going to end, but I do know that we’re well on the way.