A Digital Scrapbook

Why did we pass this law? Because the Americans promised us free trade and no tariffs on our exports if we agreed to it. That's a promise Trump tore up, but we're still holding up our end of the bargain. That's crazy. It means that American companies can use Canada's courts to destroy Canadian businesses that offer the Canadian people tools to help them escape Big Tech's sleazy ripoffs of their data and cash.

And boy do those US tech companies take in a lot of cash. The US ad-tech duopoly of Google/Meta rig the advertising market, taking 51% out of every ad dollar through an illegal, collusive arrangement called "Jedi Blue":

https://en.wikipedia.org/wiki/Jedi_Blue

The US mobile tech duopoly takes 30 cents out of every dollar spent via an app, by forcing every app vendor to use their payment processors, which charge 1,000% more than any other payment processor in Canada. That means that every time a subscriber to a Canadian news site signs up through an app, 30% of the lifetime subscription revenue for that Canadian subscriber is funneled to one of two California companies.

The corollary, of course, is that if Canadian businesses were free to compete with US companies – if Canada stopped foolishly holding up its end of the bargain that Trump has dishonoured – then it would be as though every Canadian news outlet increased its subscriber base by 25% overnight! What's more, the Canadian companies that sell those jailbreaking tools would make billions out of US Big Tech's billions.

And that's where the moderator of this week's panel comes in. When I finished making this pitch, they turned to the rest of the panel and said something like, "Well, apart from rampant theft of IP, what else could Canada do to secure its digital sovereignty?"

That's when my jaw dropped. Making it possible for, say, a Canadian company to sell its own Canadian game to a Canadian customer, in Canada, without giving Apple or Xbox 30% of the purchase price, is not "theft of IP." It's not "theft of IP" for a rightsholder to sell their own products to their customers. It's not "theft of IP" for a Canadian owner of a device to decide for themselves which software they want to run on it. If buying software from the company that made it and installing it on a device you own is "theft of IP," then so is putting non-Nike shoelaces in your Air Jordans.

It's not "theft of IP." It's just good business. Moreover, it's the kind of good business that created America's tech giants in the first place. As Jeff Bezos tells his suppliers: "Your margin is my opportunity." US tech giants make whopping margins around the world, thanks to the anticircumvention laws that the US Trade Rep crammed down every US trading partner's throats, laws that allow US companies to use other countries' legal system to destroy their competitors.

I've been mulling this "rampant theft of IP" remark for a couple of days now, but it wasn't until a reader wrote to me to remind me about Apple's origin story that I realised what the punchline is. Apple founders Steve Jobs and Steve Wozniak financed their first product launch by selling "Blue Boxes" (devices that let you make free long distance calls by cheating the phone company) door to door in the UC Berkeley dorms:

https://macdailynews.com/2024/06/19/steve-jobs-felt-certain-apple-would-never-have-existed-without-woz-and-him-making-blue-boxes/

Now, I'm not going to weep for the lost revenues that Jobs and Woz denied to AT&T. After all, AT&T was stealing that money from its customers, which is why, just a few years later, a federal court convicted AT&T of monopolistic practices and broke the company up:

https://en.wikipedia.org/wiki/Breakup_of_the_Bell_System

But the legal term for what a Blue Box does is "toll theft," which is to say, Apple – a company literally founded on theft – now makes the majority of its profits by convincing people that making a competing product is literally stealing. A company whose founders got their seed capital by marketing illegal circumvention devices now markets products designed to make it a crime for a rightsholder to sell their own work to you.

I've long said that "every pirate wants to be an admiral":

https://pluralistic.net/2025/03/04/object-permanence/#picks-and-shovels

But this is just a little too on the nose. When Apple went into business selling products to rip off the phone company, that wasn't progress. When Canadians go into business selling devices that let iPhone owners use their own property to do legal things – like buying copyrighted works directly from their creators – that is not piracy.

Canada has a real digital sovereignty problem, and it's not AI. Canada will not mitigate its digital sovereignty risk by successfully launching a Made in Canada version of the money-losingest venture in the history of the human species:

https://www.wheresyoured.at/brokenomics/

Canada's real digital sovereignty problem is its reliance on the apps, cloud services and devices that are tethered to the American cloud, access to which Donald Trump could – and does – terminate whenever he feels grumpy. Trump has repeatedly threatened to annex Canada and turn us into "the 51st state." He's trying to steal Alberta right now. Our digital sovereignty risk is the risk of Trump paralysing our country in order to steal Alberta – or the entire shop.

We can address that digital sovereignty risk – and make billions at the same time – by legalising jailbreaking and becoming the world's "disenshittification nation." Unlike a program to build Canadian AI, this will make billions, not lose them – and unlike Canadian AI, this will make our country more resilient and safer, by delivering products that Canadians – and the world – want to buy and will pay us a fortune for.

Big Tech's margins are our opportunity.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2026/06/25/thieve-different/#your-margin-is-my-opportunity

Image: Matthew Yohe (modified) https://commons.wikimedia.org/wiki/File:Steve_Jobs_Headshot_2010.JPG

CC BY-SA 3.0 https://creativecommons.org/licenses/by-sa/3.0/deed.en

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SABYST (modified) https://commons.wikimedia.org/wiki/File:Sabyst.jpg