Playing by the Rules: The Success of Unlicensed Spectrum

"Professor Brett Frischmann, affiliate scholar at the Center for Internet and Society at Stanford Law School, provides a succinct explanation of why rule-based systems (those following a "commons management principle") can generate greater benefits in some instances than title-based access:

The general value of commons as a resource management principle is that it maintains openness, does not discriminate among users or uses of the resource, and eliminates the need to obtain approval or a license to use the resource. As a general matter, managing infrastructure resources in an openly accessible manner eliminates the need to rely on either market actors or the government to “pick winners” downstream. In theory, at least, this facilitates innovation in the creation of and experimentation with new uses. More generally, it facilitates the generation of positive externalities through the downstream production of public goods and non-market goods that might be stifled under a regime where access is allocated on the basis of individuals’ willingness to pay."