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Said Congressman Rahm Emanuel; an Illinois Democrat who was a senior adviser to 
President Clinton; 〃When I served in the White House; we streamlined the FDA's drug 
approval process in response to concerns about its cumbersome nature。 We took those 
steps with one objective in mind: to move drugs to the marketplace more quickly。 The 
result; however; has been an increasingly cozy relationship between the FDA and the 
pharmaceutical industry; which has put public health at risk。 The Vioxx debacle 'over 
an anti…inflammatory drug that was found to lead to an increased riskfor heart attacks 
and strokes' shows the extent to which drug safety has taken a backseat to speedy 
approval。 A recent Senate hearing on Vioxx's recall revealed major deficiencies in 
the FDA's ability to remove dangerous drugs from the market。〃 
As consumers we want the cheapest drugs that the global supply chains can offer; but 
as citizens we want and need government to oversee and regulate that supply chain; 
even if it means preserving or adding friction。 
Sort that out。 

Who Owns What? 
Something else is absolutely going to have to be sorted out in a flat world: Who owns 
what? How do we build legal barriers to protect an innovator's intellectual property 
so heor she can reap its financial benefits and plow those profits into a new invention? 
And from the other side; how do we keep walls low enough so that we encourage the 
sharing of intellectual property; which is required more and more to do cutting…edge 
innovation? 
〃The world is decidedly not flat when it comes to uniform treatment of intellectual 
property;〃 said Craig Mundie; Microsoft's chief technology officer。 It is wonderful; 
he noted; to have a world where a single innovator can summon so many resources by 
himself or herself; assemble a team of partners from around the flat world; and make 
a real breakthrough with some product or service。 But what does that wonderful 
innovative engineer do; asked Mundie; 〃when someone else uses the same flat…world 
platform and tools to clone and distribute his wonderful new product?〃 This happens 
in the world of software; music; and pharma…ceuticals every day。 And the technology 
is reaching a point now where 〃you should assume that there isn't anything that can't 
be counterfeited quickly〃…from Microsoft Word to airplane parts; he added。 The 
flatter the world gets; the more we are going to need a system of global governance 
that keeps up with all the new legal and illegal forms of collaboration。 
We can also see this in the case of patent law as it has evolved inside the United 


States。 Companies can do one of three things with an innovation。 They can patent the 
widget they invent and sell it themselves; they can patent it and license it to someone 
else to manufacture; and they can patent it and cross…license with several other 
companies so that they all have freedom of action to make a product…like a PC…that 
comes from melding many different patents。 American patent law is technically neutral 
on this。 But the way established case law has evolved; experts tell me; it is decidedly 
biased against cross…licensing and other arrangements that encourage collaboration 
or freedom of action for as many players as possible; it is more focused on protecting 
the rights of individual firms to 
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manufacture their own patents。 In a flat world; companies need a patent system that 
encourages both。 The more your legal structure fosters cross…licensing and standards; 
the more collaborative innovation you will get。 The PC is the product of a lot of 
cross…licensing between the company that had the patent on the cursor and the company 
that had the patent on the mouse and the screen。 
The free…software person in all of us wants no patent laws。 But the innovator in all 
of us wants a global regime that protects against intellectual property piracy。 The 
innovator in us also wants patent laws that encourage cross…licensing with companies 
that are ready to play by the rules。 〃Who owns what?〃 is sure to emerge as one of 
the most contentious political and geopolitical questions in a flat world…especially 
if more and more American companies start feeling ripped off by more and more Chinese 
companies。 If you are in the business of selling words; music; or pharmaceuticals 
and you are not worried about protecting your intellectual property; you are not 
paying attention。 
And while you are sorting that out; sort this out as well。 On November 13; 2004; Lance 
Cpl。 Justin M。 Ellsworth; twenty; was killed by a roadside bomb during a foot patrol 
in Iraq。 On December 21; 2004; the Associated Press reported that his family was 
demanding that Yahoo! give them the password for their deceased son's e…mail account 
so they could have access to all his e…mail; including notes to and from others。 〃I 
want to be able to remember him in his words。 I know he thought he was doing what 
he needed to do。 I want to have that for the future;〃 John Ellsworth; Justin's father; 
told the AP。 〃It's the last thing I have of my son。〃 We are moving into a world where 
more and more communication is in the form of bits traveling through cyberspace and 
stored onservers located all over the world。 No government controls this cyber…realm。 
So the question is: Who owns your bits when you die? The AP reported that Yahoo! denied 
the Ellsworth family their son's password; citing the fact that Yahoo! policy calls 
for erasing all accounts that are inactive for ninety days and the fact that all Yahoo! 
users agree at sign…up that rights to a member's ID or account contents terminate 
upon death。 〃While we sympathize with any grieving family; Yahoo! accounts and any 
contents therein are nontransferable〃 even after death; Karen Mahon; a Yahoo! 
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spokeswoman told the AP。 As we get rid of more and more paper and communicate through 
more and more digitized formats; you better sort out before you die; and include in 
your will; to whom; if anyone; you want to leave your bits。 This is very real。 I stored 


many chapters of this book in my AOL account; feeling it would be safest in cyberspace。 
If something had happened to me during my writing; my family and publisher would have 
had to sue AOL to try to get this text。 Somebody; please; sort all this out。 
Death of the Salesmen 
In the fall of 2004; I went out to Minneapolis to visit my mother and had three 
world…is…flat encounters right in a row。 First; before I left home in Washington; 
I dialed 411 …directory assistance…to try to get a friend's phone number in 
Minneapolis。 A computer answered and a computerized voice asked me to pronounce the 
name of the person whose number I was requesting。 For whatever reason; I could not 
get the computer to hear me correctly; and it kept saying back to me in a computerized 
voice; 〃Did you say 。。。 ?〃 I kept having to say the family name in a voice that masked 
my exasperation (otherwise the computer never would have understood me)。 〃No; I didn't 
say that。。。 I said。。。〃 Eventually; I was connected to an operator; but I did not enjoy 
this friction…free encounter with directory information。 I craved the friction of 
another human being。 It may be cheaper and more efficient to have a computer dispense 
phone numbers; but for me it brought only frustration。 
When I arrived in Minneapolis; I had dinner with family friends; one of whom has spent 
his life working as a wholesaler in the Midwest; selling goods to the biggest retailers 
in the region。 He is a natural salesman。 When I asked him what was new; he sighed 
and said that business just wasn't what it used to be。 Everything was now being sold 
at 1 percent margins; he explained。 No problem。 He was selling mostly commodity items 
so that; given his volumes; he could handle the slim profit margin。 But what bothered 
him; he mentioned; was the fact that he no longer 

had human contact with some of his biggest accounts。 Even commodities and low…cost 
goods have certain differentiating elements that need to be sold and highlighted。 
〃Everything is by e…mail now;〃 he said。 〃I am dealing with a young kid at 'one of 
the biggest retailers in the na

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