[governance] FW: TP: city government exercising policy on Google Applications / consumer rights / Consumer Protection Act / trial period

[Philippe Blanchard]

I follow-up Daniel's analysis.
In his example, he clearly demonstrates that we are in a situation for which the classical rules based on physical territory cannot apply. Eventhough those rules proved useful, they were designed more than 200 years ago (Beaumarchais- 24 January 1732 – 18 May 1799-  worked on Intellectual property consideration and set the basis of main of our current IP laws).

We all know that those rules cannot longer apply as is and the question is then  to review what is the scope that can embrace the fact we are moving, we buy "stuff " in one country to be used in another country... and when those "stuff" are intangibles, their materiality (or lack of) clearly conflicts with the classical, material rules we used to abide by.

I am afraid we cannot go further if we still try to cut&paste rules that were designed hundreds of years ago to the world we now live in. Internet governance and intangibles taxation require the creation (or the mobiilization) of a meta-structure, above the national levels... And for me, it needs to be a UN-type agency.

Philippe



On Jul 13, 2011, at 2:53 PM, Daniel Kalchev wrote:

Interesting discussion indeed.

What is an application? What you pay for, when you buy software? Aren't you paying for the right to use the application? How are taxes collected on rights to use? Who is taxed -- the party that gives the right, or the party that receives the right?

Does the application have physical location? Does it reside on my iPad flash storage and if it does, can I take it from there and put it in another physical place? Or does it reside "somewhere" in the Internet cloud?

What if the application is web based, "resides" and "runs" somewhere, but I "use" it here?

Could you also explain to me who collects taxes when:

Apple in California sold me the application.
I purchased it while in Oslo (Norvay), then used it while staying at the Frankfurt (Germany) airport and continued to use it back home in Varna (Bulgaria).

Internet does not have 'place' and it also does not do anything with 'physical' objects. Both these things are the foundation of the current taxation system.

Daniel
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