"Legislation favors socialism over capitalism" my FT letter to the editor on Lessig's Op Ed

http://www.ft.com/cms/s/fd88803c-6232-11db-af3e-0000779e2340.html

Legislation would favour socialism over capitalism

 By Scott Cleland

Published: October 23 2006 03:00 | Last updated: October 23 2006 03:00

From Mr Scott Cleland.

Sir, I have to challenge Lawrence Lessig's gross misrepresentation of net neutrality legislation in his article "Congress must keep broadband competition alive" (October 19).

Prof Lessig asserts that net neutrality legislation is "not a massive programme of regulation. Itis instead a very thin rule for broadband providers that forbids business models that favour scarcity over abundance".

First, the most draconian form of regulation possible is a ban. Second, Prof Lessig's vision of net neutrality is a "socialised internet" that would effectively outlaw capitalism for broadband in America. A fundamental incentive of capitalism is competitive differentiation and innovation which creates "scarcity" but also stimulates demand and growth. Under Prof Lessig's theory and logic, patents and trademarks should be outlawed because they "favour scarcity over abundance". That is their purpose, in order to encourage innovation, commerce and economic growth.

In sum, Prof Lessig's "very best network neutrality legislation" favours socialism over capitalism.

Scott Cleland,Chairman, NetCompetition.org(an e-forum on net neutrality funded by broadband companies),

McLean, VA 22102, US