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Music Exec: ISPs Must Pay Up for Music-Swapping
Reuters ^ | January 18, 2003 | Bernhard Warner

Posted on 01/19/2003 7:18:43 PM PST by Leroy S. Mort

CANNES, France (Reuters) - A top music executive said on Saturday that telecommunications companies and Internet service providers (ISPs) will be asked to pay up for giving their customers access to free song-swapping sites.

The music industry is in a tailspin with global sales of CDs expected to fall six percent in 2003, its fourth consecutive annual decline. A major culprit, industry watchers say, is online piracy.

Now, the industry wants to hit the problem at its source -- Internet service providers.

"We will hold ISPs more accountable," said Hillary Rosen, chairman and CEO the Recording Industry Association of America (RIAA), in her keynote speech at the Midem music conference on the French Riviera.

"Let's face it. They know there's a lot of demand for broadband simply because of the availability (of file-sharing)," Rosen said.

As broadband access in homes has increased across the Western world, so has the activity on file-sharing services.

IMPOSSIBLE TO ENFORCE

The RIAA is a powerful trade body that has taken a number of file-swapping services, including the now defunct Napster, to court in an effort to shut them down.

Rosen suggested one possible scenario for recouping lost sales from online piracy would be to impose a type of fee on ISPs that could be passed on to their customers who frequent these file-swapping services.

Mario Mariani, senior vice president of media and access at Tiscali, Europe's third largest ISP, dismissed the notion, calling it impossible to enforce.

"The peer-to-peer sites are impossible to fight. In any given network, peer-to-peer traffic is between 30 and 60 percent of total traffic. We technically cannot control such traffic," he said.

Rosen's other suggestions for fighting online piracy were more conciliatory.

She urged the major music labels, which include Sony Music, Warner Music, EMI, Universal Music and Bertelsmann's BMG, to ease licensing restrictions, develop digital copyright protections for music, and invest more in promoting subscription download services.

Pressplay and MusicNet, the online services backed by the majors, plus independent legitimate services such as Britain's Wippit.com, sounded somewhat optimistic about their longterm chances to derail free services such as Kazaa and Morpheus.

But they also acknowledged they cannot compete with the "free" players until the labels clear up the licensing morass that keeps new songs from being distributed online for a fee.

LEGAL STEP

Officials from Pressplay and MusicNet, which are in their second year in operation, declined to disclose how many customers they have.

"We haven't really started yet," said Alan McGlade, CEO of MusicNet, when asked about his subscriber base.

Michael Bebel, CEO of Pressplay, said his customers tally is in the tens of thousands. He added that the firm, backed by Universal and Sony, could expand into Canada in the first half of the year, its second market after the U.S. He didn't have a timeframe for Europe.

Meanwhile, Kazaa and Morpheus claim tens of millions of registered users who download a wide variety of tracks for free.

Rosen hailed a recent U.S. court decision which ruled that Kazaa, operated by Australian-based technology firm Sharman Networks, could be tried in America, as an important legal step to halting the activities of file-sharing services.

"It's clear to me these companies are profiting to the tune of millions and millions of dollars. They must be held accountable," Rosen said.


TOPICS: Business/Economy
KEYWORDS: kazaa; peertopeer; riaa; rosen
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To: Leroy S. Mort
That's not exactly a perfect analogy, but I'll run with it. Under the copyright law, a fair use claim can be made if the use of a copyrighted work is reproduced for the purpose of education or discussion. Free Republic would seem to meet that criteria. However, fair use is also limited to excerpts. Sometimes excerpts are posted on FR and sometimes entire articles are.

As you're probably aware, FR was sued and came to an agreement with two major publishers and agreed not to allow full reproduction of their work. Other copyright owners could do the same. The law and the courts worked properly in this example. Music copyright holders should also be allowed to enforce their copyrights.

141 posted on 01/22/2003 3:35:52 PM PST by tdadams
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To: tdadams
However, fair use is also limited to excerpts. Sometimes excerpts are posted on FR and sometimes entire articles are.

As you're probably aware, FR was sued and came to an agreement with two major publishers and agreed not to allow full reproduction of their work. Other copyright owners could do the same.

Fair enough. So you would be supportive of an industry-wide attempt to limit all articles on FreeRepublic to excerpts? Meantime copyright violation is ok as long as no one sues? Or is it even a violation in that case?

142 posted on 01/22/2003 4:10:34 PM PST by Leroy S. Mort
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To: Leroy S. Mort
Won't you quit farbricating scenarios and implying that they're my position? I've posted plenty enough on this topic - that should leave you no doubt about my point of view.
143 posted on 01/22/2003 5:10:20 PM PST by tdadams
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To: tdadams
Won't you quit farbricating scenarios and implying that they're my position? I've posted plenty enough on this topic - that should leave you no doubt about my point of view.

I was implying no such thing, and I don't visit this forum frequently enough anymore to be familiar with your position on anything. I was merely asking the question. If you don't choose to answer it , that's certainly your right.

144 posted on 01/22/2003 6:01:28 PM PST by Leroy S. Mort
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To: Leroy S. Mort
So you would be supportive of an industry-wide attempt to limit all articles on FreeRepublic to excerpts?

It may be against my personal interest (I enjoy the collection of articles here) if that were the case, but I don't think it would be inappropriate. Copyright owners have a legitimate interest in protecting their work.

Meantime copyright violation is ok as long as no one sues? Or is it even a violation in that case?

If I murder someone but don't get caught, is it any less a crime?

Are you asking serious questions or just being contentious?

145 posted on 01/23/2003 5:07:00 AM PST by tdadams
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To: bfree
If I buy one CD with what I consider 2 good tracks on it, why can't I copy those tracks along with others I like into a CD and then share it with friends?

Because it's against the law! Is that so difficult to understand???

If you do not own the copyright (i.e. "the right to copy"), you do not have the right to copy. It's a federal law. Simple as that! Do you still need to ask "why can't I?"

For your convenience, the relevant parts of the above link state:

the owner of copyright under this title has the exclusive rights to do and to authorize any of the following:

(1) to reproduce the copyrighted work in copies or phonorecords;

(3) to distribute copies or phonorecords of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending;

You are not that "owner of copyright", so you are barred from doing either of these. Pretty cut and dried.
146 posted on 01/23/2003 5:31:36 AM PST by tdadams
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To: tdadams
Gee, I guess the Gestapo is on their way, looks like jail time for millions.
147 posted on 01/23/2003 9:10:32 AM PST by bfree
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To: tdadams
So you would be supportive of an industry-wide attempt to limit all articles on FreeRepublic to excerpts?

It may be against my personal interest (I enjoy the collection of articles here) if that were the case, but I don't think it would be inappropriate. Copyright owners have a legitimate interest in protecting their work.

Would you consider as thieves those who upload and/or read full articles that, by copyright law should be excerpted? Or is there a question of degree when compared to the theft of music?

Meantime copyright violation is ok as long as no one sues? Or is it even a violation in that case?

If I murder someone but don't get caught, is it any less a crime?

Perhaps that answers my first question?

Are you asking serious questions or just being contentious?

I'm asking serious, albeit perhaps uncomfortable, questions to try to understand how consistent you are in your views on copyright law.

148 posted on 01/23/2003 2:16:03 PM PST by Leroy S. Mort
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To: Leroy S. Mort
You're attempting to make a one to one analogy again and I've already stated that this is a flawed analogy. For historical and philosophical reasons, the written word (news articles would qualify) has always been afforded a more liberal dissemination than has music, especially contemporary pop music. Hence the wide availability of literature loaned and distributed by libraries. Would you suggest that this is somehow a violation of copyright law?

I guess you think you're trapping me into an ethical contradiction, but until you come up with a more valid analogy, you're not.

149 posted on 01/23/2003 5:00:06 PM PST by tdadams
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To: tdadams
For historical and philosophical reasons, the written word (news articles would qualify) has always been afforded a more liberal dissemination than has music, especially contemporary pop music.

I could argue that "pop music" back in the mists of time was MUCH more liberally disseminated than the printed word, but that, of course, predates copyrights.
Do you mean to say that you think the copyright laws regarding print are open to "interpretation of intent" whereas those regarding other media are not? Or merely that violation of the strict reading of copyright law regarding print is ok because "everyone does it"? It would seem to me if the producers of the written material in question had not cared about the "liberal dissemination" of their product they wouldn't have worded their copyright laws to limit it, particularly in the case of the internet. What am I missing here?

Hence the wide availability of literature loaned and distributed by libraries. Would you suggest that this is somehow a violation of copyright law?

Absolutely not. I am aware of no copyright law which prohibits a public library (or an individual for that matter) from loaning a book or periodical or even music CD. I fail to see the connection with the established copyright law which, in your own words, prohibits the dissemination of copies of full articles vs excerpts on the internet.

I guess you think you're trapping me into an ethical contradiction, but until you come up with a more valid analogy, you're not.

The issue is copyright law in both cases. The violation of one, you appear to condone, excuse, or ignore, while the other you do not. To me, that's a contradiction.

150 posted on 01/23/2003 6:06:05 PM PST by Leroy S. Mort
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To: zarf
I don't understand the attititude that music or software and the like should be free. A flat ISP charge would solve the problem and make the leeches who want free "stuff" pay.

And I don't understand the attitude that artists should be GUARANTEED a profit for their work. I can assure you that an artist truly worth his salt will not go hungry in this day and age.

Are you seriously attempting to argue that there was only "garage band junk" available for public consumption until the benevolent "RCIA" came and along and opened the flood of beautiful music for all to enjoy? Sure seems like that's your argument.

My...however did we survive just twiddling our thumbs for entertainment in the olden days?

151 posted on 01/23/2003 6:26:08 PM PST by Shethink13
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To: Shethink13
Correction: make the RIAA, not RCIA
152 posted on 01/23/2003 6:27:05 PM PST by Shethink13
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To: Poohbah
The RIAA-bashers seem to think that if you simply took all the money out of the picture, A Thousand Flowers of People's Artistry would instantly bloom.

I direct my post #150 to you as well. Is it your contention that before the RIAA, no music existed that was worthy of appreciation?

153 posted on 01/23/2003 6:29:38 PM PST by Shethink13
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To: Shethink13
Not at all.

But to sit there and say (as many Freepers do) that YOUR property rights are sacred, while those of RIAA members are invalid, merely because of (pick any silly reason--you don't like some of their politics, or it's personally inconvenient for you), is kinda silly.
154 posted on 01/23/2003 7:29:18 PM PST by Poohbah (Four thousand throats may be cut in a single night by a running man -- Kahless the Unforgettable)
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To: Leroy S. Mort
The issue is copyright law in both cases.

That's overly simplistic, sort of like saying there's no difference between a Mercedes and a Yugo. Both are cars, aren't they?

I've tried explaining to you that copyright re: music and literature are, by law and by fact, not the same. Until you realize this, there's no point in arguing with you. We'll just agree to disagree.

155 posted on 01/24/2003 4:26:42 AM PST by tdadams
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To: tdadams
I've tried explaining to you that copyright re: music and literature are, by law and by fact, not the same. Until you realize this, there's no point in arguing with you. We'll just agree to disagree.

I'm sorry I seem not to be getting my point through. Let me try to simplify it. Both issues involve the protection of income by the party holding the copyright, and an effort by others to deny or bypass that income through a violation of the copyright.

To use your analogy, lets compare the theft of a Mercedes and that of a Yugo. Both are grand theft auto, aren't they?

Now if your point is that, compared to Beavis here downloading Metallica albums for his personal use, your indiscretion is being "less of a thief", you might have an argument, though I dont think it would work in a court of law for the Yugo thief (he might however succeed with an insanity plea).

156 posted on 01/24/2003 7:29:00 PM PST by Leroy S. Mort
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To: Leroy S. Mort
I'm sorry I seem not to be getting my point through. Let me try to simplify it.

Simplify as you see fit, but that's not the problem. The problem is you're simply unwilling to acknowledge the point I've made several times now. A copyrighted news article and contemporary music copyrights are given different consideration under the law. Until you realize and/or acknowledge that, there's no point in discussing this with you anymore. Go take a class in copyright law if you're still confused.

157 posted on 01/25/2003 9:26:58 AM PST by tdadams
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To: tdadams
I notice you failed to address the rest of my comment: "Both issues involve the protection of income by the party holding the copyright, and an effort by others to deny or bypass that income through a violation of the copyright."

Are you disagreeing with that, or merely ignoring it?

158 posted on 01/26/2003 12:41:09 PM PST by Leroy S. Mort
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To: tdadams
Who are the "parasites" and "hanger ons" you refer to? The songwriter? The producer? The studio musician?

The ex-hippy, ponytailed entertainment lawyers who, if they were born women, would be screwing the musicians on the tour bus for free rather than screwing them for money from behind a desk with a contract.

159 posted on 01/26/2003 2:02:47 PM PST by Oschisms
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To: Leroy S. Mort
This is really getting tiring. I suspect your questions are rhetorical and disingenuous, so I'm reluctant to keep entertaining you. However, I'll take the chance that maybe you really don't get it.

The issue is downloading music vs. posting articles on FR. What makes one sinister and the other less so? In a word, motivation.

What is the motive of someone who downloads music from the internet? To circumvent buying that same song at retail and having to pay for it. The offender is essentially receiving stolen property and receives a monetary benefit from his action.

What is the motive of someone who posts an article to FR? To share contemporary news of a common interest with others of a like mind. No monetary benefit.

There is a difference. But instead of seeing and acknowledging that, you're only trying to make your point and completely ignoring the differences that I've pointed out.

Frankly, I'm tired of running in circles with you on this issue, so your future posts to me will be ignored. I've answered you already.

160 posted on 01/26/2003 7:56:25 PM PST by tdadams
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