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A royalties plan for file sharing
CNET News.com ^ | July 11, 2003 | William Fisher

Posted on 07/11/2003 2:59:05 PM PDT by The Electrician

The Recording Industry Association of America has announced that it will soon bring its formidable legal forces to bear on the individuals who share copyrighted music files through the Internet.

Starting as early as mid-August, it expects to file "thousands" of lawsuits against people who make large numbers of songs available on peer-to-peer networks.

The RIAA is right about three things. First, under current copyright law, the behavior of the file swappers is illegal. Second, partly (although only partly) as a result of the ubiquity of file swapping, the music industry is in crisis. CD sales continue to decline, record company revenue is falling at an accelerating pace, and many music retailers are going out of business. Third, among the groups threatened by this crisis are the creators of music--the composers and performers.

The RIAA now takes the position that the only way to solve the crisis and protect the creators is to sue many individual file swappers, hoping that the threat of both civil and criminal penalties will prompt the millions of people worldwide who currently engage in this behavior to mend their ways. Its new strategy has many disadvantages and perils.

The proposed litigation campaign will be extraordinarily costly. It is likely to be ineffective--as file swappers use proxy servers, offshore Internet sites, and encrypted peer-to-peer systems to avoid detection. And it will further alienate the already disaffected community of music consumers. More importantly, better solutions to the crisis in the music industry are available. The more dramatic--but also the best--would be the establishment of a compulsory licensing system.

In brief, here's how such a system would work:

The creator of a recording would register it with the U.S. Copyright Office and would receive, in return, a unique file name, which would be used to track Internet transmissions of the work. The government would tax devices and services used to gain access to digital entertainment. The primary target of such a tax would be ISP access.

Secondary targets would include CD burners, blank CDs, MP3 players, etc. Using techniques pioneered by American and European performing-rights organizations, a government agency would estimate the frequency with which each song was enjoyed by consumers. Revenue collected from the tax would then be distributed by the government agency to creators in proportion to the rates with which their songs were being consumed.

Once this alternative mechanism for compensating creators was in place, the old one would be dismantled. In other words, copyright law would be reformed to eliminate the current prohibitions on the reproduction, distribution, public performance, adaptation, and encryption circumvention of published music recordings.

The social advantages of such a system would be large. Consumers would pay much less for much more music. Creators would be fairly compensated--indeed, would earn more than under the current regime. The set of musicians who could earn a livelihood by making their work available to the public would increase sharply. And litigation costs would decline dramatically.

To be sure, such a system is not yet ready for immediate implementation. Many technical and administrative issues need to be resolved before it could be launched. But several academics, programmers, and public-interest groups are currently working to address those issues.

The RIAA should join us. Instead of continuing to waste its money and credibility on an unwinnable war against the file-sharing masses, it should cooperate in the design of a solution to the underlying problem that would benefit all of the players in this drama.

biography

William Fisher is a professor at Harvard Law School and is the director of the Berkman Center for Internet & Society. He can be reached through his home page.


TOPICS: Editorial; News/Current Events; Technical
KEYWORDS: filesharing; harvardlaw; riaa
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This is a revealing look inside the twisted mind of a virulent "statist". Mr. Fisher evidently never understood the meaning of the word "freedom". He relishes the idea of the word "compulsory", and salivates at the prospect of academics, programmers, and "public-interest groups" (whoever they might be) working together to impose his regime on all of us. His utopian prescription for solving RIAA's litigious tendencies vs. file swappers involves creating a huge new bureaucracy, complete with mandatory government registration, centralized government tracking of all commercial activity, taxes on blank discs, MP3 players, and other devices (and especially Internet access, whether or not the persons who were accessing the net were actually illegally sharing copyrighted material), with the funds thus expropriated to be divvied up under the control of the government amongst the music "creators", middlemen, retailers, etc. (it seems that he intends to pay retailers out of the proceeds of these taxes, even if the retailers are not involved in making a sale! As well as others in the food chain today whose jobs are really no longer needed.).

It's a frightening scenario, but even more frightening is that a person of his position and evident influence would float such an ugly idea. But, then, what did you expect would come out of Harvard?

Guess that the concept of a freedom-based alternative would never have crossed his mind... The RIAA is hardly looking out for the interests of the music creators, and neither is Mr. Fisher's prescription. Rather, it is geared towards greasing the palms of all of the unnecessary intermediaries in the production and distribution of music that is a legacy of the days when physical goods needed to be moved in order to move the music, and pathetically little of the revenue that was generated actually made it into the hands of the performers.

1 posted on 07/11/2003 2:59:05 PM PDT by The Electrician
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2 posted on 07/11/2003 3:01:20 PM PDT by Support Free Republic (Your support keeps Free Republic going strong!)
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To: The Electrician
There's a scene in one of the Burt Reynolds' movies where he grabs a man by the shirt colar through a door and says "Women love, children love me, dogs love me. You come out here and love me before I kick your a$$!".
3 posted on 07/11/2003 3:01:56 PM PDT by go star go
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To: The Electrician
Not only is it a frightening scenario, it's dumb. So they'd get a unique file name from the government, then some would be digital bootlegger changes the file name (heck even non-bootleggers would probably change, I'm guess the government issued GUID wouldn't be very intuitive and actually reference the song and artist names) and the first half of his scheme falls apart completely.

This guy should be proud though, he's actually come up with a solution less likely to work than anything the RIAA has proposed, not an easy task.
4 posted on 07/11/2003 3:06:27 PM PDT by discostu (you've got to bleed for the dancer)
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To: The Electrician
E*V*I*L
5 posted on 07/11/2003 3:07:12 PM PDT by fooman (Get real with Kim Jung Mentally Ill about proliferation)
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To: The Electrician
RIAA should face it. Technology has rendered what they do worthless.

Artists will be paid for live performances. The rest of the leeches in the music industry need to figure out how to suck someone else dry.

6 posted on 07/11/2003 3:14:13 PM PDT by ProudGOP
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To: The Electrician
I agree. Anybody who views CD players, blank CDs and MP3 players as "targets" for taxation is dangerous as far as I'm concerned. It's pathetic to see the RIAA and its lackeys trying to protect an antiquated business model instead of adapting to the new marketplace.

In 10 years, nobody is going to be buying music CDs. Nobody. By then, we will be in the age of the multi-terrabyte hard drive. People will be able to store pretty much everything ever recorded on a single disc drive (and send it out wirelessly to their car stereos). Why fuss with a $15.98 CD with 10 songs on it?

People are still willing to pay for their music. But the business model is changing. The days of the $15.98 CD are rapidly coming to an end. I know I'll never pay that much for a CD again.

7 posted on 07/11/2003 3:19:26 PM PDT by SamAdams76 (Back in boot camp! 249 (-51))
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To: The Electrician
It doesn't cross his mind that vast numbers of people use ISPs for strictly business purposes, surfing FR, etc, that they use CD burners for backing up data. He wants all those people to be taxed for his musical tastes.
8 posted on 07/11/2003 3:19:44 PM PDT by MalcolmS (Do Not Remove This Tagline Under Penalty Of Law!)
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To: The Electrician
RIAA will require that a little 'shocker' bug will in everyone's ear. If you listen to copyprotected music, you will be zapped.

ZAP!
9 posted on 07/11/2003 3:19:51 PM PDT by fooman (Get real with Kim Jung Mentally Ill about proliferation)
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To: ProudGOP
Professor Fisher seems to believe that the record industry (how's that for an anachronistic description?) needs to have a government-guaranteed existence, complete with a mandated stream of income, etc. I'm sure that the buggy-whip manufacturers thought the same thing of their cherished industry.

His formula has everything in common with the Soviet/East German model of central bureaus filled with apparatchiks and secret police and busybodies uber alles, and nothing in common with America's traditions of freedom. How or where do the universities find these neanderthals? (rhetorical question only - clearly the answer is that these petty tyrant wannabe's are home-grown - or, should I say, Ivory Tower-grown)

10 posted on 07/11/2003 3:28:19 PM PDT by The Electrician
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To: The Electrician
The government would tax devices and services used to gain access... a government agency would estimate the frequency with which each song was enjoyed by consumers. Revenue collected from the tax would then be distributed by the government agency to creators...

Oh joy. Another government bureaucracy to be funded.

Consumers would pay much less for much more music. Creators would be fairly compensated--indeed, would earn more than under the current regime.

And this is precisely why the RIAA will reject this idea.

11 posted on 07/11/2003 4:17:18 PM PDT by TechJunkYard (via Tammy)
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To: The Electrician
This fellow with his registration ID. Let me float an idea here.

Let's say I write a cool piece of software. It allows me to configure every possible permutation of musical notes of three minutes duration. After accomplishing this task, I get it to print out the results (vast though they would be). I subtract from my pile all songs already written. I haul the results down to the Copyright office and (assuming I can afford the copyright fees) copyright every song that was possible. I get the "official ID number". I post an avertisement in every newspaper in the world, place public announcements in every city proclaiming that "beyond debate and without a doubt, Prodigal Son has written every possible song- therefore all composers of works less than three minutes duration should immediately cease their efforts or risk prosecution".

What would happen? What would happen if someone other than the RIAA did it? What would happen if the RIAA did it? This sounds like a crazy abstract, but with increasing computer power- this is almost bound to happen.

12 posted on 07/11/2003 4:21:04 PM PDT by Prodigal Son
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To: SamAdams76
They'll just have to be content with recording free music, then recouping their losses on concert ticket sales and public appearances. (I haven't been to a real concert since 1994 when I saw the Beach Boys at Six Flags).
13 posted on 07/11/2003 4:25:23 PM PDT by TrebleRebel
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To: Prodigal Son
Great point, Prodigal Son, reminiscent of a mathematical proof. The problem is that data is data is data, extremely hard to tell one batch from another once it's made into 1's and 0's.

You can debate forever whether copying music is thievery (it likely is). But for the same reason that no one tries to tax the air you breathe, it will be impossible to effectively tax or price digital music because it's value is as close to zero as you can get.

14 posted on 07/11/2003 4:30:42 PM PDT by FastCoyote
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To: The Electrician
The more dramatic--but also the best--would be the establishment of a compulsory licensing system.

The government would tax devices and services used to gain access to digital entertainment.!! The primary target of such a tax would be ISP access. !?!!

Secondary targets would include CD burners, blank CDs, MP3 players, etc.!!!!

Revenue collected from the tax would then be distributed(!!) by the government agency to creators in proportion to the rates with which their songs were being consumed.!!!!!!

What the F!!!! Is this guy on crack?!

Oh, nevermind..."William Fisher is a professor at Harvard Law School"

15 posted on 07/11/2003 4:57:42 PM PDT by Grit (Tolerance for all but the intolerant...and those who tolerate intolerance etc etc)
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To: FastCoyote
Here it goes again.

You buy a record (CD, tape, whatever), You get the right to play as many cuts as you want as many times as you like. You get the right to loan it to a friend, neighbor (a library gets the right to loan it out to almost anybody).

You could break the record up so just one track is in each piece and loan those out. They could be played on a turntable. You could design a CD player to do the same thing. You could put ten tone arms on a turntable and play each cut at the same time.

The point being that as long as only one instance of the same is being played at a time, it's legal - in perpetuity! Enter technology to make sharing MUCH easier. Legal point doesn't change. You should be able to copy your record (CD etc., whatever) to your computer and stream it to anyONE (person) for non comercial benefit.

Taken a step further, as long as there are fewer instances of a song playing in the universe at any one time than there were "hard" copies (licenses) sold, there's no beef. That pretty much takes care of songs issued before say, 1995.

For the newer stuff? I'll get back to ya, but I'm sure there's some way to give the RIAA what is has coming.

16 posted on 07/11/2003 5:00:26 PM PDT by Paladin2
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To: The Electrician
All I can say is that RIAA better step carefully - because if they were to mess with somebody with a disposition like mine the way I've heard they've messed with some other folks then there would certainly be hell to pay.

Literally.

17 posted on 07/11/2003 5:17:15 PM PDT by The Duke
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To: The Electrician
Using techniques pioneered by American and European performing-rights organizations, a government agency would estimate the frequency with which each song was enjoyed by consumers.

So, I can bugger another man's rump and Big Brother isn't going to bother me, but they sure as hell want to know which Village People tune I'm playing at the time?

18 posted on 07/11/2003 6:44:38 PM PDT by randog (Everything works great 'til the current flows.)
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To: Prodigal Son
Why not make one really large song with all the different combinations in it and copyright that instead?
19 posted on 07/11/2003 8:16:11 PM PDT by droberts
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To: randog
would estimate the frequency with which each song was enjoyed by consumers.

I'm sure they'll SUBTRACT money for the crappy songs nobody enjoys...
20 posted on 07/12/2003 12:17:36 AM PDT by cryptical
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