As the digital era continues to redefine the boundaries of business, the question of ownership in a rapidly evolving technological landscape has, in many ways, taken center stage. In their blog post, “Redefining Ownership: Navigating Rights and Governance in the Digital Era“, the blackbox Lab at Harvard’s Digital Data Design Institute, distill insights from a panel hosted by James Riley, Assistant Professor of Business Administration at Harvard Business School and Principal Investigator of D^3’s blackbox Lab. The panelists, Christopher T. Bavitz, WilmerHale Clinical Professor of Law and Vice Dean for Experiential and Clinical Education at Harvard Law School, Jessica Silbey, Professor of Law at Boston University School of Law, and Nien-hê Hsieh, Kim B. Clark Professor of Business Administration at Harvard Business School, discussed critical shifts in ownership, governance, and rights in light of artificial intelligence (AI) and the growth of the digital economy.
Key Insight: Ownership in the Digital Economy is About Fair Access
“Ownership […] is foundational to achieving inclusivity and fairness, as it determines who can benefit from economic activities.” [1]
In his discussion of the Ownership Project, which examines the role of ownership in realizing dignity and democratic values, Professor Hsieh highlights the critical role of ownership in fostering a fair and inclusive economy. He argues that ownership—encompassing financial assets, productive capital, and economic resources—is a fundamental yet overlooked factor in addressing economic inequalities. By examining who has access to, control of, and benefits from ownership, the Ownership Project seeks to reframe economic systems to reflect values like fairness, inclusivity, and well-being. This approach challenges traditional views of ownership as a byproduct of economic activity, positioning it instead as a cornerstone for achieving equitable participation and progress across diverse economic stakeholders.
Key Insight: Digital Media Challenges Traditional Ownership Models
“[I]ncreasingly now for things like film and television and music we’re actually not owning anything, we are subscribers to a service.” [2]
Christopher Bavitz
The transition from physical to digital goods fundamentally alters how ownership is perceived and exercised. Professor Bavitz notes that while physical media allowed for user control, digital subscriptions restrict users to temporary access under terms dictated by platforms. For instance, Bavitz compares purchasing a physical book or DVD to purchasing an e-book or streaming subscription, noting that while there are restrictions on what you can do with a physical book (you cannot copy and resell it), you are able to lend it to friends, donate it, or sell it back to a bookstore. In a subscription model, however, you are paying for access to media, and when you end your subscription, you also end your ability to engage with that media.
Key Insight: Generative AI Redefines Copyright Paradigms
“Training models rely on data scraping for building underlying models. These uses are often deemed transformative under fair use, […] [h]owever, this legal framing leaves unresolved questions on compensation and control for original creators.” [3]
Professor Silbey discusses the challenges with copyright protections by highlighting the practice of scraping the internet to build training data for AI models. She explains that the law typically views data collected through scraping as either fair use for informational purposes or not copyright infringement at all, likening AI’s use of the data to repurposing sheet music as wallpaper. This interpretation of the law undermines creators’ rights, risking their ability to monetize their intellectual property as AI is increasingly used in creative industries.
Key Insight: Diversity in AI Training
“[I]f we want AI that is reflective of society […] then enabling wide-scale use of the broadest possible quantum of assets feels to me like the best way to get to that.” [4]
Christopher Bavitz
Bavitz critiqued current AI training methodologies, warning that relying exclusively on voluntarily submitted content could lead to systemic bias. By limiting training data to those with the privilege to contribute, AI systems risk reflecting a narrow perspective rather than a comprehensive societal view. He advocated for collecting diverse, widespread information to develop AI that accurately represents the broader social landscape.
Why This Matters
For policymakers, the discussion highlights the need to modernize legal frameworks to address evolving concepts of ownership and rights in the digital era. As AI systems transform markets, clear policies on data use, compensation, and fair access are essential to balance innovation with inclusivity and protect creators and consumers alike. For business executives, these shifts underscore the importance of adapting strategies to navigate digital ownership challenges, ensuring ethical AI practices, and fostering transparency to build trust and remain competitive in an AI-driven economy.
References
[1] “Redefining Ownership: Navigating Rights and Governance in the Digital Era.” blackbox Lab. Medium. November 22, 2024. https://medium.com/blackbox-lab/redefining-ownership-navigating-rights-and-governance-in-the-digital-era-dcf4a5162053.
[2] James Riley, Christopher T. Bavitz, Jessica Silbey, Nien-hê Hsieh. Ownership in the Digital Age, “Redefining Ownership,” by James Riley, blackbox Lab, November 4th, 2024, YouTube,1:18-1:24, https://www.youtube.com/watch?v=zQ7FpZRrgf8&t=1s.
[3] “Redefining Ownership: Navigating Rights and Governance in the Digital Era.” blackbox Lab. Medium. November 22, 2024. https://medium.com/blackbox-lab/redefining-ownership-navigating-rights-and-governance-in-the-digital-era-dcf4a5162053.
[4] James Riley, Christopher T. Bavitz, Jessica Silbey, Nien-hê Hsieh. AI Training and Development, “Redefining Ownership,” by James Riley, blackbox Lab, November 4th, 2024, YouTube, 0:34-0:54, https://www.youtube.com/watch?v=zQ7FpZRrgf8&t=1s.
Meet the Speakers
Christopher T. Bavitz is the WilmerHale Clinical Professor of Law and Vice Dean for Experiential and Clinical Education at Harvard Law School. He is also Managing Director of HLS’s Cyberlaw Clinic. And, he is a Faculty Co-Director of the Berkman Klein Center.
Jessica Silbey teaches and writes in the areas of intellectual property, constitutional law, and law and the humanities. In addition to a law degree, she has a PhD in comparative literature and draws on her studies of literature and film to better account for law’s force, both its effectiveness and failing as socio-political regulation.
Nien-hê Hsieh is the Kim B. Clark Professor of Business Administration in the General Management Unit at Harvard Business School. His research and teaching aims at helping business leaders and organizations determine and deliver on their responsibilities. He also studies what democratic values require for economic policies and institutions.
James Riley is an Assistant Professor of Business Administration. He is an economic sociologist with a MSc from the London School of Economics and a PhD from the Massachusetts Institute of Technology. Riley also is the Principal Investigator of D^3’s blackbox Lab.