Music Industry Proposes a Piracy Surcharge on ISPs

From Frank Rose, Wired:

Having failed to stop piracy by suing internet users, the music industry is for the first time seriously considering a file sharing surcharge that internet service providers would collect from users.

In recent months, some of the major labels have warmed to a pitch by Jim Griffin, one of the idea's chief proponents, to seek an extra fee on broadband connections and to use the money to compensate rights holders for music that's shared online. Griffin, who consults on digital strategy for three of the four majors, will argue his case at what promises to be a heated discussion Friday at South by Southwest.

"It's monetizing the anarchy," says Peter Jenner, head of the International Music Manager's Forum, who plans to join Griffin on the panel.

Griffin's idea is to collect a fee from internet service providers -- something like $5 per user per month -- and put it into a pool that would be used to compensate songwriters, performers, publishers and music labels. A collecting agency would divvy up the money according to artists' popularity on P2P sites, just as ASCAP and BMI pay songwriters for broadcasts and live performances of their work.

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Ambulance Chasing

Cayocosta

If Trent Reznor (or anyone else) wants to do it the right honest way, he or she should support piracy and/or condemn the music industry in such a way that provides no opportunity for personal financial gain while doing so. Otherwise, all you have is self-interested, populist bullshit contrived to make money via capitalizing on the hype of the moment - all the while (wittingly or otherwise) selling their brethren down the river.

Irish ISP Taken to Court Over Illegal Music Downloads

From Mary Carolan, The Irish Times:

Four major record companies have brought a High Court action aimed at compelling Eircom to take measures to prevent its networks being used for the illegal downloading of music.

The case is the first in Ireland aimed at internet service providers, rather than individual illegal downloaders.

Eircom is the largest broadband internet service provider in the State.

Latest figures available, for 2006, indicate that 20 billion music files were illegally downloaded worldwide that year. The music industry estimates that for every single legal downloaded, there are 20 illegal ones.

The record companies are also challenging Eircom's refusal to use filtering technology or other measures to voluntary block, or filter, material from its network that is being used to download music in violation of the companies' copyright and/or licensing rights.

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New Music Model for Suckers

Cayocosta

Where once ten or twelve bucks bought as many tunes, thanks to new 'models' we now have the $300 elite collection and/or multi-thousand dollar package including a personal appearance. Offers that unfortunately bilk those most loyal fans while allowing everyone else a free ride - on their generosity.

Brit Gov't: File-Sharing Legislation by 2009

From Lars Brandle, Billboard:

The British government has vowed to take up the fight on illegal file-sharing as part of a multi-stage action plan intended to ensure the prosperity of the country's creative industries.

Should the recording industry fail to break its impasse with Internet service providers on P2P activity by early 2009, the government will take action by means of legislation.

It's one of 26 key commitments for government and industry, published today in "Creative Britain: New Talents for the New Economy."

In the absence of a voluntary solution between rights holders and ISPs, the Department of Culture, Media and Sport report claims that the government "will shortly consult on options for a statutory solution," with a view to implementing
legislation by April 2009.

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Why Advertising Supported Free-Music Ain't Gonna Happen

Cayocosta

Lots of hype and bluster about ad supported free-music solutions lately. Well, it ain't gonna happen, and here's why:

Two ways to offer ad subsidized music: streaming and downloads.

The problem with downloads is that once the track is downloaded, the ad is no longer attached; unless the ad is audio and embedded in the tune - which would kill the idea.

Which brings us to DRM. DRM protected tracks with proprietary players would allow ads to be served while tracks are played. But again, limiting the use of tracks to certain players would kill the concept.

Streaming on dedicated players that serve ads is not a bad idea, but limited in application as a live internet connection is required to stream in real time. Thus, ad-supported streaming is DOA.

Remember, the industry is competing with free, unfettered mp3 downloading and listening (albeit illegally).

Beyond all this is the amount paid to the content providers.

For downloads, Amazon and Apple are charging .80 to .99 per track and netting back 70 cents or so to the labels. There is no way ads can generate anywhere near as much.

Now, why would the industry accept mere cents on the dollar when they are already receiving 70 cents per track for paid downloads?

Why then would the industry voluntarily kill the remaining CD business and developing paid download business - for a fraction of the music's market value?

Then there's the precedent. Should the industry allow music to be free - subsidized via anything else - it would be nearly impossible to return (if so desired) to charging for downloads.

Hence, for free-music subsidized via advertising to work, the industry would:

1.) have to accept much less than the market value of music.
2.) hasten the decline of its remaining CD business.
3.) render obsolete its burgeoning paid download business.
4.) have to accept sharing fractional revenue with third parties (portals).
5.) once and for all, establish that recorded music no longer has any intrinsic value in the marketplace.

Humbug.

In the interim however, should a tech player offer millions of dollars for the rights to stream (no downloads) content under an ad supported platform (imeem, for example), the labels will rightly take the money and run.

Unlimited Music Comes to UK Mobiles

From Jonathan Richards, Times Online:

Omnifone, the UK-based digital music company, has announced a service which will allow mobile users to download an unlimited number of songs to their phone as part of their monthly plan - and keep them even if they change their contract.

The service, called Music Station Max, will be rolled out in the UK in the first half of the year, and will initially be available on LG phones, though deals with other manufacturers would follow, the company said.

As part of the service, subscribers will be able to download an unlimited number of songs directly to their phone via the 3G network, and then 'sideload' them onto their computer, where they can create playlists and share proferences with friends using Omnifone's software.

If the user chooses to change his or her contract, they can either continue subscribing to an 'unlimited download' service for a monthly fee - similar to the Napster model, or leave the service, in which case a number of the downloaded songs will remain on their phone. The company has not said how many.

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Music Pirates Face UK Internet Access Ban

From BBC:

People in the UK who go online and illegally download music and films may have their internet access cut under plans the government is considering. A draft consultation Green Paper suggests internet service providers would be required to take action over users who access pirated material.

Under a "three strikes" rule they would receive an e-mail warning, suspension, and then termination of their contract.

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Victory Records Respond to Piracy

From the site:

At Victory we give away a lot of free music to help expose our artists. Unfortunately, there are some individuals that do things that are illegal, upsetting and sometimes offensive to them. Dead To Fall, Farewell To Freeway, Secret Lives of the Freemasons and Across Five Aprils have asked us to make a news post about one such person. He could have easily embedded VictorStream (which was mentioned to him) on his blog to share music and video but chose to continue to do otherwise. He has been asked nicely by the bands to take down their material. When he refused we had no choice but to defend our artists’ wishes by having a more official “take down” letter sent.

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RIAA Talks About Network Filters

Civilization vs. Savagery

The central concern of Lord of the Flies is the conflict between two competing impulses that exist within all human beings: the instinct to live by rules, act peacefully, follow moral commands, and value the good of the group against the instinct to gratify one’s immediate desires, act violently to obtain supremacy over others, and enforce one’s will. This conflict might be expressed in a number of ways: civilization vs. savagery, order vs. chaos, reason vs. impulse, law vs. anarchy, or the broader heading of good vs. evil.

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Verizon Rejects Hollywood’s Call to Aid Piracy Fight

From NYT:

More often than not companies in similar positions have similar views. But when Hollywood asked the two big phone companies to help with its fight against piracy, they responded in opposite ways. AT&T is talking about developing a system that would identify and block illicitly copied material being sent over its broadband network.

Verizon, however, opposes the concept.

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China Companies Sued Over Music Piracy

From BBC:

The trade body representing the global record industry has launched piracy lawsuits against China's biggest internet companies.

Firms targeted in the legal action include Baidu, China's largest Internet business, and Yahoo China, in which US giant Yahoo has a 44% stake.

The International Federation of the Phonographic Industry says the firms offer direct links to pirated music.

It estimates that 99% of all music files in China are pirated.

As a result, the trade body says the annual legal music market in China accounts for just $76m (£38m).

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Yacht Rock Episode 9: Runnin with the Devil

Pirate Bay Founders Busted, May See Jail Time

From Reuters:

Four men linked to the popular file-sharing site Pirate Bay were charged by a Swedish prosecutor on Thursday with conspiracy to break copyright law and being an accessory.

The site was created in 2003 by a Swedish anti-copyright group but was soon taken over by individuals. It helps surfers swap mostly copyright-protected music, movie and game files.

Pirate Bay co-founders Fredrik Neij, Gottfrid Svartholm, spokesman Peter Sunde and Carl Lundstrom, who is reported to have helped fund one of the world's most visited Web sites, could face up to two years in jail if convicted.

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