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18 Kor. U. L. Rev. 99 (2015)
The Electronic Silk Road and Information Intermediaries

handle is hein.journals/korunilre18 and id is 111 raw text is: 







  THE   ELECTRONIC SILK ROAD AND INFORMATION INTERMEDIARIES.



                                                                 Anupam Chander



     Nearly every company  set up in a garage in Silicon Valley hopes to take over the
world. There is reason for such optimism. Again  and again, Silicon Valley firms have
become  the world's  leading providers of Internet services. How  did Silicon Valley
become  the world's leading supplier of Internet services?
     Popular  explanations for Silicon Valley's recent  success revolve around  two
features.  First, Silicon Valley bestrides the  great academic  centers of  Stanford
University and  the University of California, Berkeley, and sits near the artistic and
intellectual hub of San Francisco. Second, the center of venture capital in the United
States also happens to be in Menlo Park, California, allowing both industries to profit
from each other in a symbiotic relationship. But education and money coincide in other
parts of the United States as well. Why  did those parts not prosper in the manner of
Silicon Valley?  More  fundamentally, did not the Internet make geography irrelevant?
Scholars answer that Silicon Valley's advantage lies in the economies of agglomeration.
Ronald  Gilson argued that California's advantage was its labor law, which he believes
encourages  knowledge spillovers   and   agglomeration  economies   by  facilitating
employee  mobility. While these standard accounts do much to explain the dynamism of
Silicon Valley relative to other parts of the United States, they do not explain the relative
absence of such  Internet innovation hubs outside the United States, or the success of
Silicon Valley enterprises across the world.
     Law  played a far more significant role in Silicon Valley's rise and its global success
than has  been previously  understood.  It enabled the rise of Silicon Valley  while
simultaneously disabling the rise of competitors across the world. In this Article, I will
argue that Silicon Valley's success in the Internet era has been due to key substantive
reforms to American  copyright and tort law that dramatically reduced the risks faced by
Silicon Valley's new breed of global traders. Specifically, legal innovations in the 1990s
that reduced liability concerns for Internet intermediaries, coupled with low privacy
protections, created a legal ecosystem that proved fertile for the new enterprises of what
came  to be known as Web  2.0. I will argue that this solicitude was not accidental - but
rather a kind  of  cobbled industrial policy favoring Internet entrepreneurs.  In  a
companion  paper, Uyin L   and I show that these aspects of copyright and tort law were


  May 13, 2015. Adapted from Anupam Chander, How Law Made Silicon Valley, 63 Emory L. J. 639,
  (2014).

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