A hard look at Washington, DC’s economic boom

In light of the recent fiscal cliff showdown, Annie Lowery at the New York Times writes a long profile on “Washington’s Economic Boom, Financed by You“:

Billions in federal spending, largely a result of two foreign wars, were pouring into the local economy by the early 2000s. Then came the housing bubble. But after it burst, a remarkable inversion occurred: as the country withered, Washington bloomed. Since 2007, the regional economy has expanded about three times as much as the overall country’s. By some measures, the Washington area has become the richest region in the country. It is now home to the three highest-income counties in the United States, and seven out of the Top 10.

The growth has arrived in something like concentric circles. Increased government spending has bumped up the region’s human capital, drawing other businesses, from technology to medicine to hospitality. Restaurants and bars and yoga studios have cropped up to feed and clothe and stretch all those workers, and people like [developer] Jim Abdo have been there to provide the population — which grew by 650,000 between 2000 and 2010 — with two-bedrooms with Wolf ranges.

Despite its recent success, however, the article suggests that “Peak Washington” is already here, that there is nowhere to go but down:

And yet there is a sense that the capital is headed for a slowdown. Among the Pentagon’s plans to cut nearly $500 billion over the next decade could be reductions not only in materiel but also to all manner of support staff. The homeland-security budgets look certain to see significant reductions, too. One recent estimate noted that more than two million jobs would be at stake if the sequester comes into effect.

Lowery suggests that a tempering of expectations in metro DC would, on balance, be a good thing:

There’s something unsavory about having a capital city doing outrageously well while the rest of the country is limping along — especially when its economy is premised in part on capturing wealth rather than creating it.

To the extent that DC’s economy is indeed “premised in part on capturing wealth rather than creating it,” I agree.  Nevertheless, Lowery cites plenty of evidence that “creative” (as opposed to “capturing”) work is being done in metro DC (“Google has opened an outpost….LivingSocial owns a huge, hiply decorated space….Audi, Intelsat, Hilton Worldwide and dozens of other firms have opened up offices or moved their headquarters to the region”).  Presumably, every urban area “captures” some of its wealth and “creates” some.  How much “capture” is too much, thus making a whole region “unsavory”?

Along these lines, I’m also intrigued by the quote from Virginia Congressman Jim Moran (D), who observes that “Maryland got the life sciences [centered around the National Institutes of Health in Bethesda, MD], and Virginia got the death sciences [centered around the Pentagon in Arlington, VA]….Of course, NoVa [Northern Virginia], given the two wars, it’s done even better than suburban Maryland.”  Does this suggest that DC’s Maryland suburbs are less “unsavory” than DC’s Virginia suburbs?  Or does it only matter that the National Institutes of Health and the Pentagon both spend tax revenue, making them equally offending because they “capture” the country’s wealth?

Copyrighting time

David Kravets at Wired reports on a copyright lawsuit that seems to attempt to enforce a copyright over data about time itself:

The publisher of a database chronicling historical time-zone data [Astrolabe] is claiming copyright ownership of those facts, and is suing two researchers for re-purposing it in a free-to-use database relied on by millions of computers….The researchers’ publicly available database was being hosted on a server at the Maryland-based National Institutes of Health, which apparently has removed the data at the request of Massachusetts-based publishing house, Astrolabe. The publisher markets its programs to astrology buffs “seeking to determine the historical time at any given time in any particular location, world-wide,” and claims ownership to the data in its “AC International Atlas” and “ACS American Atlas” software programs.

Wired posted a copy of Astrolabe’s complaint.  Digging into it a bit, here are the main facts alleged:

9. Defendant [researcher Arthur] Olson’s unauthorized reproduction of the Works have been published at ftp://elsie.nci.nih.gov/tzarchive.qz, where the references to historic international time zone data is replete with references to the fact that the source for this information is, indeed, the ACS Atlas [emphasis added].
10. In connection with his unlawful publication of some and/or any portion of the Works, defendant Olson has wrongly and unlawfully asserted that this information and/or data is “in the public domain,” in violation of the protections afforded by the federal copyright laws.
[11. and 12. The same as 9 and 10, except naming second defendant Paul R. Eggert.]

In other words, based on this complaint, it seems that the researchers simply took facts (e.g., “in 1900, Greenwich Mean Time +3 was defined as the longitude running from…”) and incorporated them into their own database.

If this is true, Astrolabe, as Wired points out,

faces the tough challenge of overcoming a 1991 Supreme Court decision [Feist v. Rural Telephone Service Co.], concerning a company that harvested listings from a phone company’s telephone book and re-published them. The court ruled that “copyright does not extend to facts contained in [a] compilation.”

Unfortunately, I’m guessing that Astrolabe filed this lawsuit simply to scare Olson and Eggert into a quick settlement well before a judge rule on the merits of their claim to use this data under established copyright law.  In part, my surmise is based on the counsel Astrolabe retained.  Their complaint is signed by Julie C. Maloney, an attorney who appears to be a solo practitioner based out of a small town in Cape Cod in Massachusetts.  Although she doesn’t have a law firm website, a bit of Internet searching appears to confirm that land use/zoning rather than intellectual property is her legal specialty.

While I don’t know Ms. Maloney or her professional reputation and am sure she is a capable advocate, these facts don’t suggest that Astrolabe is seeking a discussion on the legal merits of copyright law.  On the contrary, Astrolabe appears (1) primarily concerned with saving money by going with a solo practitioner rather than a bigger law firm, (2) incapable of finding a copyright-specializing attorney willing to take their (weak) case, or (3) both.