Grex Cyberpunk Conference

Item 142: The Fourth Napster Item

Entered by krj on Wed Feb 7 04:53:55 2001:

68 new of 134 responses total.


#67 of 134 by polygon on Mon Feb 12 21:12:01 2001:

Re 66.  Because the likelihood that the line will be that long is
infinitesimal from the standpoint of the average musician.


#68 of 134 by aaron on Mon Feb 12 21:56:44 2001:

re #66: Again, that is not how it works. The contracts available to 
most artists are carefully constructed so that the record company can 
claim to lose money, no matter how many copies are sold. "'A band will 
make more money by giving away 500,000 copies of an album - if that 
helps them sell more forty-dollar concert tickets and twenty-five-dollar
 T-shirts - than it would by not giving away a single album and selling 
only 200,000 copies,' says an agent at a high-powered talent agency." 
Rolling Stone, "World War MP3", June 17, 1999. Here's a bitter account 
of how a $250,000 "advance" can translate into barely more than $4,000 
per band member - http://www.arancidamoeba.com/mrr/problemwithmusic.html
 .

For an examination of the same type of contract in a related industry 
(motion pictures), see "Less Than Zero - Studio Accounting Practices in 
Hollywood" - http://www.hollywoodnetwork.com/Law/Hart/columns/index.html
 ("The accounting provisions which are contained in the studios' SPDs 
make it difficult, if not mathematically impossible in many cases, for 
net profits ever to be achieved."), and "Where's The Profit" - 
http://www.college.hmco.com/accounting/readings/12-bengei.html ("What do
 Rain Man, Batman, and Who Framed Roger Rabbit? have in common? At the 
box office, all three are among the 40 most successful films of all 
time, but each as remained in the red for those performers, writers, and
 other filmmakers whose contracts provide a share in the film’s net 
profits. And these three films are not unique in this respect. Fewer 
than 5% of released films show a profit for net profit participation 
purposes.") For the record, the movie industry based its accounting 
model on the record industry's model. See T. Connors, "Beleaguered 
Accounting", 70 S. Cal. L. Rev. 841, 847 (1997).


#69 of 134 by scg on Tue Feb 13 00:55:44 2001:

Quibbling over whether performers directly see any of the money paid for the
recording strikes me as somewhat pointless.  The more important questions are
wehther they get paid, and to a lesser extent whether how well their recording
does determines their wealth.

If somebody buys services from my employer, and I then do the engineering work
required for whatever they've bought, you could argue that I never see a penny
of the money they're paying my employer.  By the standards being used in this
argument, you'd be right.  I'm not paid on commission.  Even if I spend this
week bringing in more revenue than everybody else in the company combined,
what I get paid for this week will be no different than if I'd spent the time
sitting in my chair and staring at the wall.  However, that's not to say that
I'm not being compensated for what I do, or that getting work done doesn't
benefit me personally.  My employer pays my sallary on the assumption that
I will be doing work, rather than staring at the wall.  If I weren't getting
work done, I probably wouldn't continue to receive that sallary for all that
long.  If I do good work, in theory the sallary will go up, or at least it
will look good on a resume and cause me to get paid more by somebody else,
eventually.

Likewise, wheter recording artists are paid on commission provides a less than
full answer to whether they are being compensated.  If a recording artist is
being paid only on commission, and the commission contract is rigged such that
the artist won't possibly be able to make a cent, then the artist probably
isn't making anything off that recording.  If, on the other hand, the artist
is getting a million dollar advance on the recording, and then not earning
any royalties on it, the artist is still doing pretty well.

It should also be noted that there are other reasons for doing things, beyond
immediate payment and pure enjoyment.  If an artist is getting a $100 advance
and almost no chance for commissions on their first CD, but will then be in
a position to do much better financially on their second CD if their first
one does well, then releasing a first CD for no money can still have great
benefits for the artists.  How likely these benefits are to happen, and
whether it's worth it, are things the artist has to decide.  As such the first
CD can be seen as a high risk investment -- something that will likely cause
the loss of whatever resources are put into it, but which has some small
chance of bringing extreme riches.  There are also ways to make money off
publishing that don't involve getting money from the publisher at all.  I
don't know how this works for the music industry, but there are certainly some
fields where the prestige of having published a book can increase peoples'
sallaries in their other jobs.


#70 of 134 by krj on Tue Feb 13 02:07:07 2001:

((response cloned from M-net:))

We seem to be into really subtle territory here in the difference between
the trial court judge Patel's original ruling, and what the appeals
court has directed.  Based on the news reports I'm seeing, Judge Patel
ordered Napster to police itself to ensure that copyrighted material
is not traded using its system; the Court of Appeals directive is
(if I'm reading this right) that the policing of Napster is to be
done by the copyright holders; they are to send complaints to Napster,
and Napster is only responsible for copyright infringement after
they have been notified about it.

This sounds like the DCMA's "notice and take down" rules, which
is Napster's current policy!!  I refer to it as the
"nudge, nudge, wink, wink" school of copyright enforcement.

On the other hand, the appeals court clearly said that Napster's
file trading does not fall under the protection of fair use.
So I really don't know what to make of it...  and this is all over
a preliminary injunction anyway, the actualcopyright infringement trial
starts this spring, and Patel has made it clear she's about as hostile
to Napster as a judge can get towards a civil defendant.

(Maybe the appeals court is telling the music industry that if they 
want genuine, effective relief, they'll have to start suing the 
individual Napster users?)


#71 of 134 by brighn on Tue Feb 13 02:31:42 2001:

#67, 68> *shrug* We disagree. I'm moving on.


#72 of 134 by bdh3 on Tue Feb 13 08:17:44 2001:

What is the purpose of Napster?  Is it to allow general users to
download non-copyright material? No.  Is it to allow me who buys a CD of
a 'band' to 'record' a specific song from that CD and personally use it
how I see fit?  No.   (plenty programs to do that on me own machine)
(I zap copies of Mary Wilson's Music and computer CDs so that when she
destroys them (she never has originals) I can give her another copy. 
Wish I did the same for vhs cassettes (three copies of pocohontas and
counting....)).

The primary use of Napster is in fact to allow a user to download and
record 'songs' he/she hasn't 'paid for' no matter how you look at it and
no matter how Napster wants you to look at it.  In the real world thats
the way Napster is used (or mis-used).  I frankly don't see the
'business model' for Napster that generate profit for investors even
right now much less originally.  If Napster's 'business model' was
instead to facilitate the distribution of child porno instead of
'bootleg' recordings I don't think there would be any question about
shutting it down.  As for it only really hurting the 'big bad' record
companies instead of the 'original artists', well... I would suggest
that if it were not for the original 'record companies' -despite their
extremely predatory practices - you would likely as not have never even
'heard' of the 'original artists'.  The 'record company' *did* get
the Beatles out there and last I heard with the exception of the dead
one they weren't exactly on welfare...

For every 'success' how many unbelievably stupid 'records' or 'films'
were released by a 'major studio' and perhaps the 'creative accounting'
on the part of the studios is in order to have the 'one' success
subsidize the 400 major abject and outright failures each year in order
for the studios to 'make money' for their investors so they can stay in
business.  After all, nobody forces the 'author' to take a percentage of
the 'net' instead of the 'gross'.  How many movie 'classics' now were
considered 'box office disasters' upon their release?  _Its a Wonderful
Life_ I seem to recall was a 'box office disaster' comes to mind.

No, Napster is clearly in the business of 'bootleg'-ing and ought to be
shut down.

Oh, I am looking for the english version of _Shanghai Noon_.  I will
gladly trade you a copy of the 'files' (two) on two CDs for the same in
english.  I have the VCD set with Mandarin in one channel and Cantonese
in another with three other language 'subtitles' in the video...Mary
Wilson and Nai-Nai enjoy it, but I would like to have one in english...
(Is _Shanghai Noon_ even on DVD release yet? I bought the two cd (VCD)
set in very professional package for less than a dollar in Hu Fei, An
Wei province last year from a street vendor (I coulda probably got it
for less except on account I look like I have money - am 'epicanthaly
challenged')).  Please to send me e-mail at bdh@bdh.nu.


#73 of 134 by polygon on Tue Feb 13 14:12:32 2001:

Re 69.  The issue is not whether somebody is getting compensated at
all.  The issue, for me, as I originally stated it, is that the cost
of a new CD in a store is so outlandishly high that I'm not really
interested in buying any at that price.  The fact that none of that
large amount of money benefits the artist, except very indirectly and
speculatively, only reinforces this.

Buying a CD at a concert is slightly different.  It's almost like a
donation toward the living expenses of someone who is doing music because
they love doing it, given that they could enjoy a higher income doing
almost anything else.  In fact, at the kind of concerts I go to, usually
it's the performer himself/herself, or a band member, at the CD table
taking the money.


#74 of 134 by ashke on Tue Feb 13 15:20:06 2001:

So for those who are against napster, and I'll admit freely that some use it
for getting all they can, aren't we splitting hairs because the courts feel
that a computer does not constitute a home recording device (even though I
have a program like Adaptec's Disc Jockey where I can import my vinyl and
tapes into it) therefore it's not protected like your dual cassette recorder
is?

I'm more offended that Eminem and other artists feel that "If you can afford
a computer you can afford the $16 to buy my ...CD"  I am COMPLETELY offended
by that.  I DO buy thier overpriced CD's.  What you see coming out of the
woodwork on this issue are hippocrites and money grubbing artists against this
system.  Case in Point, Metallica, who advocated bootlegging not only the
albums, but the concerts they did, who now have been vocal about napster and
equally as tightfisted with their concert material.  they saw $$$.  They had
a big enough fan base.  So they changed their mind.  So that means that every
other artist has to as well, right?  Big bad metallica has offically spoken
out of both sides of their face.

I'm especially angry that the shift after Frampton Comes Alive is for MONEY
to rule the recording industry.  I am all for the little people who do what
they can and produce their own, like Ani Defranco.  But now you have MBA's
dictating what the public will like, wanting cookie cutter bands, and warping
any idea of "music" as played by the musician.  The RIAA has made the artist
a comodity of the Record Company, similiar to Slave Labor, and some of us
might actually LIKE to hear something GOOD.

If you go after napster, by all rights you should go after ever kid who gives
his friend or his sweetheart a tape of "their songs".  But because of all the
BS that happened 20-30 years ago, you can't.  It's just a matter of setting
precident with a computer as a recording device.  I wonder if I should send
the appelate court judges a copy of one of the several computer programs that
COMPOSE music?


#75 of 134 by brighn on Tue Feb 13 16:19:31 2001:

(#73> Having reread the thread, I do admit that I took a side comment of
Larry's and made a major thread out of it, and then, having forgotten it was
a side note of his, commented as if it had been the crux of his argument. My
apologies for that; it was inadvertant, not malicious, but it was still
inappropraite.)

#72> Beady, all the rest of your comments aside, child porn is illegal.
Metallica songs aren't. There's a HUGE difference between the illegal exchange
of legal material and the exchange of illegal material. While I think the
former is still inappropriate, in the "Grand Sheme," your comparison sucks
wad. If anything, it represents those of us who are opposed to Napster on
solid moral grounds as fruitcakes who don't know the difference between
Metallica and kiddie porn.


#76 of 134 by brighn on Tue Feb 13 16:26:08 2001:

#74> The most apropos comparison to Napster in the non-virtual world would
be someone standing at a concert with a crate full of home-burned CDs, giving
them away to people for $1/per to cover costs. Someone giving copies to all
their friends isn't a "large enough" example. The point being: You may have
five or six friends that you regularly give pirated music to. Napster gives
far far more than five or six people access to your HD.


#77 of 134 by ashke on Tue Feb 13 16:52:12 2001:

Well, for an example, NO ONE has access to my hard drive.  I don't allow
downloads when I'm online.  It slows down the process.  Another thing, it is
an urealistic expectation that a preson is going to do that, have a crate and
sell them.  First off, nothing is being sold, and secondly, those are the SAME
fears that came with dual tape copies.  And tapes from vinyl.  Tapes were EVIL
remember?  It is the SAME thing, only we have the ability to make a cd, not
just a tape.  I think the problems are unfounded.


#78 of 134 by gull on Tue Feb 13 17:56:52 2001:

I think the big question with recording industry practices is "is there 
any alternative?"  The problem is there really isn't.  They control all 
the distribution channels, so they can conspire to make the contracts as 
bad as they want and it'll be a matter of "my way or the highway."  At 
one point they even made a nearly-successful attempt to keep stores from 
selling used CDs.

The syndicates that handle newspaper comic strips are in a similar 
situation.  There's only about five of them, and if you're a cartoonist 
and you  don't like the terms they offer you, well, too bad.  They've 
locked up the market for newspaper comic page space.  There's no room 
for independents.


#79 of 134 by krj on Tue Feb 13 18:24:42 2001:

Sun/ashke in resp:74 :: "aren't we splitting hairs because the courts feel
  that a computer does not constitute a home recording device (even though I
  have a program like Adaptec's Disc Jockey where I can import my vinyl and
  tapes into it) therefore it's not protected like your dual cassette recorder
  is?"

This isn't the courts splitting hairs.  This is the courts applying the 
definitions -- pretty clear ones -- laid down by Congress in the 
Audio Home Recording Act of 1992.    These are the same definitions
which the courts interpreted to allow MP3 players to be sold, even
though they do not incorporate SCMS.

Yes, at some level it's splitting hairs, in the sense that most laws 
eventually end up splitting hairs somewhere.   On the other hand, 
the AHRA was also one of those grand compromises which tried to 
balance the competing interests of the copyright industry, the 
electronics industry, and the consumers, and like it or not, 
resolutions like this are what Congress is for.

See http://www.hrrc.org (Home Recording Rights Coalition) for 
a good background on the law.
 
((I have more to pass along about the Napster ruling and will hope to 
  get it cranked out later today.))


#80 of 134 by ashke on Tue Feb 13 19:24:35 2001:

But that definition was laid down BEFORE mass applications for computers were
truly used....correct?  The leaps and bounds in computer technology and home
pc technology are amazing.  If you had told me in 91 that I'd be playing music
on a computer, I'd have called you crazy.  Now?  I use it as much as my
stereo.  


#81 of 134 by brighn on Tue Feb 13 20:07:01 2001:

I was playing music on the computer in 1991. I was playing music on the
computer in 1984.

Mass reproduction has been available for quite some time. The law is plain:
Reproduce a few times, and we won't prosecute, even though it's illegal.
Reproduce a few thousand times, and we'll prosecute. This isn't a matter of
new v. old technology. The only way that new technology is relevant is that
it's now easier to break the law. That doesn't mean you're not breaking the
law anymore.



#82 of 134 by gull on Tue Feb 13 20:37:38 2001:

Re #80, 81: Actually, the law says, "reproduce a few times, using a
stand-alone audio CD burner and audio CD blanks, and we won't
prosecute.  Reproduce a few times, using a computer and data CD blanks,
and we might."  It does sort of split hairs.  Stand-alone audio burners
are considered "home recording devices" and computers aren't.



#83 of 134 by krj on Tue Feb 13 21:14:08 2001:

Brighn is somewhat mistaken in #81: he's describing prosecutorial
discretion and allocation of resources, not the law, and we are 
generally concerned with civil copyright infringement here, not 
criminal.    And so far no individual users of Napster have been 
sued.

Gull in resp:82 :: yes, that's the law.  In exchange
for the extra royalties one pays for the audio CD burner and the 
audio CD blanks, Congress rules that you are immune from copyright 
suit for the non-commercial use of those things, even if you are 
duplicating copyrighted material.    There's no technical 
difference between an audio blank and a data blank, merely a 
legal/royalty difference.   You could be sued for copyright 
infringement for the use of your computer to clone CDs on data
discs, and if you did it often enough the felony provisions
of the No Electronic Theft Act would apply.   


#84 of 134 by brighn on Wed Feb 14 04:28:37 2001:

This response has been erased.



#85 of 134 by brighn on Wed Feb 14 04:34:03 2001:

>Somebody somewhere here a long time ago referred to a law that limited home
>copies to a certain number. There was some discussion at that point as to
>whether or not that was a law or just a practice, but I thought that it had
>ultimately come down that it was a law.


#86 of 134 by gull on Wed Feb 14 04:54:07 2001:

Re #83: Who decides who gets the royalties?  Do they just go to the
record companies?

(Interestingly, it's also *impossible* to use the legal, audio blanks in
a computer.  You get an 'application code' error.)


#87 of 134 by brighn on Wed Feb 14 17:51:39 2001:

OOC, I've been archiving my old vinyls onto CD via computer. Not that I'm
going to stop or anything, but I assume that's legal... is it? (It's for my
own usage, recording LPs I own into CDs I own).

#85> I recall now that it was determined that it wasn't law, but rather a
legal guideline agreed to by some grand power like the RIAA or other...
details remain sketchy in my head, though. *shrug* 

This is why I keep trying to remind myself to stay out of legal discussions
and keep to moral discussions. The law is overly intricate and pointless, in
many ways.


#88 of 134 by gull on Wed Feb 14 18:58:04 2001:

Re #87: It's technically illegal, but the chances of getting sued over
it are nonexistant.


#89 of 134 by mwg on Wed Feb 14 19:29:53 2001:

In theory it is also impossible to use data blanks on home audio CD
recorders, but some can be fooled and anything can be hacked.

I've been prowling through Napster a bit.  It is a good place to pick up
those goofy fringe recordings of horrible things happening to a purple
reptile or to mutants with video displays embedded into thier digestive
systems, or other oddball things that you won't find on a mass-produced
audio format.

And if Napster does get heavily modified, as has been pointed out,
alernatives exist already, including servers using Napster protocol that
will work with clients that can be given specified servers.  (I don't know
what a real Napster client is like, so I don't know if this is
easy/hard/impossible on them.)


#90 of 134 by brighn on Wed Feb 14 22:41:45 2001:

The technological cat's out of the bag, re: Napster.

Frankly, the best the Majors and the RIAA can hope for is maintaining enough
of a PR image that some of us actually respect them enough to keep from
ripping them off. I think that's Bertelmann's strategy. 

Of course, they could ALWAYS restructure how they pay artists so those of us
who don't respect them begin to again. If anything, that's one really good
thing that could come out of this mess, once the dust settles. Personally,
I'm not going to hold my breath, but that DOES seem to be a motivator that
I've heard a lot -- the first is that CDs are too pricey, but the second is
that none or little of that money goes to the artists (directly, at least,
and the indirectly is clearly too "indirectly" for some people's tastes).


#91 of 134 by aaron on Wed Feb 14 23:02:53 2001:

Their best response, barring an unforeseen advance in encryption and 
pay-per-download technology, would probably be to offer affordable 
blanket licenses for various libraries of downloadable music (akin to 
what is available to commercial enterprises through BMI and ASCAP), 
while pursuing legal remedies against those responsible for any 
significant level of piracy.


#92 of 134 by polygon on Thu Feb 15 17:16:57 2001:

Re 75 re 73.  Many thanks for this acknowledgement.  I appreciate it.


#93 of 134 by krj on Fri Feb 16 22:33:46 2001:

Back to my resp:0, second paragraph...  today we have a wire service
story about a Napster statement that they are continuing to work on 
developing their subscription service:
 
http://www.latimes.com/wires/20010216/tCB00a6683.html
 
"The new business model and technology enables digital music
files to be transferred from computer user to computer user -- so-called
peer-to-peer sharing -- but restrictions such as limiting the ability
to copy files on a CD will be placed on the transferred files,
Napster said."
 
So I guess my first thought was correct: they must be planning on having
either the sending or receiving program put a Digital Rights Management
wrapper around the vanilla MP3 file.   ???


#94 of 134 by dbratman on Sat Feb 17 00:56:48 2001:

Stanford University, where I work, has instituted network routines to 
put Napster and several other such services at the bottom priority of 
network processing.  They've been eating up so much network resources 
it slows everybody down.  There is no prohibition, and in fact they 
recommend certain times of day when other network traffic is low.

As I suspected, it's the bandwidth.

Response among students has been mixed.  Some whine that they can't get 
everything they want RIGHT NOW.  Others suggest that perhaps this move 
will improve the dating scene on campus, as students will be impelled 
to go out instead of spending all their evenings downloading music from 
the Web.

A list of things that _I_ would prefer doing to watching little 
completion percentage bars crawl across my computer screen would be a 
very long list indeed.


#95 of 134 by gull on Sat Feb 17 05:07:18 2001:

At Michigan Tech they banned Napster use because they found the usage
pattern it created was aggravating a problem with their backbone
switch.  (A problem that the switch's manufacturer had, at the time I
left, been utterly unable to fix over a period of two or three months.) 
It wasn't a bandwidth usage problem, exactly; something about the
rapid-fire way Napster makes connections was triggering the switch to
drop whole network segments for ten or fifteen minutes at a time.


#96 of 134 by krj on Sat Feb 17 05:42:42 2001:

News item:
http://dailynews.yahoo.com/h/ap/20010215/tc/belgium_napsster_1.html
 
"Belgian Cops Raid Music-Sharers."

The raids of users homes were primarily aimed at a web site.
However, the prosecution spokesman says, "four cases against 
Napster users were currently under review."


#97 of 134 by mcnally on Sun Feb 18 02:14:38 2001:

  I much preferred the hysterical Slashdot extrapolations (jackbooted Belgian
  stormtroopers conducting mass arrests) to the actual story, which involves
  police seizing computers from several people who operated an MP3 download
  site, but this could indeed turn into a trend to watch..


#98 of 134 by krj on Sun Feb 18 19:20:24 2001:

www.inside.com has the  best explanation I've seen of how a Digital Rights
Management Napster is supposed to work.  Grab the story quick before they
move it from the "free" section to the "members" section.
 
New Scientist has a piece on SDMI and watermarking.
http://www.newscientist.com/features/features.jsp?id=ns22782

Like most good stuff, this is indexed from the http://www.mp3.com/news
index page.


#99 of 134 by raven on Wed Feb 21 08:11:18 2001:

And the latest news is Napster wants to try to settel with all the record
companies including the indies for a cool billion dollars.  This works
out to 20 dollars a subscriber for napsters current 50 million subscribers,
assuming most of them stay signed up for a subscriber service which is a big
if, with open nap, guntella, etc, available for free.  Seems like a sketchy 
business model, but it could way to reach the win win solution of unlimited
aqccess to music while assuring the record companies and more importantly
the artisits their cut.


#100 of 134 by mdw on Wed Feb 21 09:38:38 2001:

The artists?  Doubtful even in the most optimistic model.


#101 of 134 by krj on Wed Feb 21 17:20:34 2001:

resp:96, resp:97 ::  ZDnet(UK) runs a story that the IFPI (the global
version of the RIAA)  is pushing hard for raids on Napster users in 
Belgium.  "The head of IFPI in Belgium, Marcel Heymans, claimed 
Thursday that Belgian police were poised to raid the homes of hundreds
of Napster users."

http://www.zdnet.com/zdnn/stories/news/0,4586,2687923,00.html?chkpt=zdhpnew
s01
 
or some URL like that.
 
As for the billion dollar settlement offer, it smacks of desperation 
to me.  If the four major labels (other than BMG) wanted Napster to 
continue to exist, and if they thought it could produce a billion dollars
in revenue, then they could just continue their lawsuit, win, and collect
all Napster assets in the judgement; then they would own Napster and 
its potential revenues forever.
 
Several of the pieces I read yesterday -- there was a huge flurry of them
prompted by the billion dollar offer -- suggest the most likely outcome
will be that someone sets up a Napster-ish directory server in one of the 
countries which currently host off-shore gambling sites.   Revenue?
One could probably get millions of Napster users to pay a small monthly
fee for access to the directory server if the files traded were unrestricted
MP3 files, rather than the restricted-use files planned for Napster II.


#102 of 134 by brighn on Thu Feb 22 17:11:53 2001:

#110, 99> Even fairly optimistic lil ol' me isn't naive enough to think any
noticable amount of Napster's settlement with the RIAA and the Majors will
go to the artists. 
(er, that was 100, not 110)


#103 of 134 by krj on Thu Feb 22 17:58:54 2001:

Couple of fascinating (to me, anyway) news items.
 
Slashdot's "YRO" (Your Rights Online) section links to a story at
www.law.com about Dave Powell and Copyright Control Services, who hunt
down copyright infringers on the net.  So far his business has been 
mostly defending expensive software packages for pro audio, but he's
just chomping at the bit to start working over Napster users.
What's holding him back, so far, is the PR concerns of the record labels.
The www.law.com URL is just too mindboggling to transcribe, sorry.
 
And Congress, most notably Senator Orrin Hatch (R, Utah), continues
to make noises.  A story I missed at the Washington Post last Thursday
quotes Hatch as raising the possibility that Congress could enact
a "compulsory license" for the Internet sale of music.
A compulsory license would mean that the copyright holder would lose
veto power over the ability of a company to use or sell its music;
it's similar to what exists today for radio, I think.  
The record company screams would be heard for miles.

Rep. Rick Boucher (D-Va) criticizes the record labels for their
reluctance to allow sales of individual songs, rather than complete
albums.

http://www.washingtonpost.com/wp-dyn/articles/A12511-2001Feb15.html

Non-original thoughts:  Hatch, in particular, seems particularly 
irked because he was a principal author of the Digital Millenium 
Copyright Act.  The act, which gave the copyright industry just 
about everything it wanted, was supposed to speed the arrival of an
online music business, but here we are, years later, and there's no
real online music business, just lawsuits galore.   I've lost the 
essay which claimed that the major labels are still in "deep denial"
about the Internet and its implications for their business.

And I haven't mentioned a piece from www.musicdish.com, which 
put forth the proposal that the promotion and distribution sides
of the music business converge on the Net...  later this afternoon maybe.



#104 of 134 by brighn on Fri Feb 23 18:12:02 2001:

(Side note. question: I'd also heard about ten years back or so that there
were laws drafted or transcribed that would allow anyone who wants to *cover*
a song to do so despite the wishes of the copyright holder, so long as they
pay a royalty fee. Is that accurate, or was some media source confused about
what was going on?)


#105 of 134 by mcnally on Fri Feb 23 19:03:28 2001:

  I thought that was already the case..


#106 of 134 by krj on Fri Feb 23 19:28:10 2001:

That's essentially correct, as I understand it.  The right to make a 
first recording is under the control of the copyright holder, but
to make subsequent recordings, all a performer has to do is pay 
the statutory licensing fees, and the copyright holder has nothing 
to say about it.  I am not aware that there was any recent change 
to these rules.


#107 of 134 by krj on Fri Feb 23 19:44:56 2001:

News item:  "Next on record industry's hit list -- Napster clones"
http://www.zdnet.com/zdnn/stories/news/0,4586,2689187,00.html       
                            (or find it at http://www.mp3.com/news)

With the Court of Appeals ruling against Napster as a precedent, 
the RIAA has fired off 60 legal notices to the ISPs of people who
are running "Open Napster" servers.  Presumably this is the 
DMCA "notice and take down" form letter, in which the ISP has to cut
off the user to protect its own immunity from copyright lawsuit.

What's not mentioned in the story, but what I think I remember from
the Scientology cases, is that the copyright holder has to follow
up with a lawsuit against the user within a short period of time, 
or else the ISP and the user are free to continue as before.

The story mentions the difficulties with Open Napster servers located
outside the USA.

The RIAA's lawyer says they have ideas about how to attack Gnutella,
but he declined to discuss them.


#108 of 134 by danr on Sat Feb 24 04:01:29 2001:

Sounds like a losing battle to me. As soon as one program or service is 
beaten down, two will spring up to take its place. And that's not even 
taking into account websites outside the US.


#109 of 134 by krj on Thu Mar 1 21:04:49 2001:

Napster's next court date with Judge Marilyn Patel is tomorrow.
She's supposed to be working on the injunction to force Napster to 
cease exchanging copyrighted material, under the direction she was 
given by the appeals court panel.  Does this mean Napster will shut
down tomorrow?  Seems iffy, since Napster would probably appeal the 
ruling just to play out the string.  But don't be surprised if the 
survival of Napster-as-we-know-it is measured in days or weeks.
Watch online news media for breaking reports of whatever happens.
 
Napster has urged its users to take its cause to Congress, and 
in response the RIAA has been stocking up on Republican lobbyists.
Their most prominent signing is Bob Dole, and this one brings warmth
to my heart: I can think of no better Republican representative 
of the Old Regime, the pre-Internet years, than Bob Dole, Yesterday's
Man.  
 
The RIAA has also signed up Governor Marc Racicot, who is quoted in 
a wide variety of news stories  that he sees his role as 
educating Congress as to the role of intellectual property.
He specifically names Sen. Orrin Hatch as someone who needs to be
educated; I hope Hatch, who co-authored the last major revision of
copyright law and who is also a independent songwriter in his spare 
time, bops Racicot on the head.  :)


#110 of 134 by krj on Thu Mar 1 23:41:29 2001:

This isn't directly a Napster-related news item but I'll stick it 
in here anyway, since some of the players and arguments have figured
in the Napster arguments:

http://www.latimes.com/business/updates/lat_love010228.htm
 
Lead paragraphs:  "Just as actress Olivia de Havilland brought down 
the Hollywood studio system in the 1950s and outfielder Curt Flood
fought for free agency in baseball in the 1970s, rock star Courtney
Love is determined to radically redefine the nature of the music
recording business for the next century.

"Love is seeking to break her contract with Vivendi Universal, the 
world's largest record conglomerate, and expose what she calls the 
'unconscionable and unlawful' tactics of the major record labels."
 
Summarizing:
The basic argument seems to be that the standard record label 
contract is a servitude-for-life kind of deal, and courts have 
held those to be unreasonable.  

California has a law which limits entertainment contracts to seven years,
but the law has never been tested in the music business.  
The record companies have settled similar suits with other artists,
but Love has strong financial resources, since she controls the 
Kurt Cobain estate, and she has already fired  her previous attorney
for trying to settle the suit.


#111 of 134 by mcnally on Fri Mar 2 00:23:10 2001:

  She may have a point.  It's entirely possible that seven years exceeds
  Courtney Love's life expectancy..


#112 of 134 by krj on Fri Mar 2 01:23:54 2001:

There was a similar suit filed within the last six months or so, and 
my mind has gone vague on the details.  It was by the leader/songwriter
of Foreigner, or some similar hard rock hair band of days gone by.
 
The plaintiff's argument went like this.  Under the contract, he still owes 
two albums to the record label.   However, the label has lost all interest
in his style of music, which he admits is now out of fashion, and 
so the label won't accept or release anything he turns in.   
There is still a minority interest in his music, 
and he would like to be free to look for an independent boutique
label or maybe market himself;
but the label refuses to release him.
 
So essentially he is in permanent bondage and can never earn money
through recording music again.  He asks the court to terminate the 
contract because it cannot be fulfilled.  I've heard nothing further
about this.


#113 of 134 by aaron on Fri Mar 2 16:55:20 2001:

He should change his name to a symbol, and wait out his record contract.
 It worked for Prince, sort of....


#114 of 134 by krj on Fri Mar 2 21:00:43 2001:

Breaking news items on today's court hearing:  Judge Patel 
"concluded the hearing by saying she will rule at an undisclosed
time."   Napster says it will block one million songs from being 
traded, starting this weekend, in an attempt to pacify the 
record companies.  (from www.sfgate.com)


#115 of 134 by aaron on Fri Mar 2 21:19:54 2001:

According to Britney Spears, there are nine million wonderful songs in 
the world, so that doesn't seem too bad for Napster. <cough>


#116 of 134 by scott on Fri Mar 2 22:21:36 2001:

Aaron, do you have a cite for that "statistic"?

Seriously, it sounds like something which would be a pretty funny read. :)


#117 of 134 by aaron on Fri Mar 2 22:38:30 2001:

http://www.mtv.com/sendme.tin?page=/news/gallery/s/spears00_2/index3.htm
l


#118 of 134 by aaron on Fri Mar 2 22:39:00 2001:

(the "l" wrapped)


#119 of 134 by scott on Fri Mar 2 23:01:21 2001:

Amusing little interview:
"MTV: People always think, "Oh, this whole teen pop craze is
only going to last five minutes." How is it important
for you to show that that won't happen to you?

Britney: I think it really boils down to good music.
If you do that, I think you'll be around for a while."


Hee hee.  :)


#120 of 134 by krj on Sat Mar 3 02:23:34 2001:

News media reports differ on whether Napster is going to block 
"one million songs" or "one million file names;" the RIAA says that 
one million file names could be as few as 100 songs, since the users
pick and mispell the file names as they wish.


#121 of 134 by remmers on Sat Mar 3 18:19:32 2001:

So presumably users could get around any blocking based on
file names, simply by renaming files.  Is such an approach
likely to satisfy the court?


#122 of 134 by scott on Sat Mar 3 18:28:54 2001:

Dude!  Heard the latest mp3 from Meta11ica?  ;)


#123 of 134 by krj on Sat Mar 3 22:12:51 2001:

In the original preliminary injunction order from Judge Patel
last July, Napster was directed to halt all trading of copyrighted
material involving their service, even if it required Napster to 
shut down.   

In contrast, the directions of the appeals court seem to be saying
(this is based on press reports and fallible memory, remember) 
that Napster has to stop the exchanging of copyrighted files to the 
extent that their technology allows them to do so, while not 
unreasonably hampering lawful file transfers.  All Napster HQ
ever sees is the file names; the actual transfers of binary song 
files take place directly between the users.  So the file names 
are all Napster Inc. has to work with.


#124 of 134 by remmers on Sun Mar 4 14:38:38 2001:

Interesting.  Thanks for the clarification.


#125 of 134 by mwg on Tue Mar 6 03:40:48 2001:

Napster was supposedly going to install filters this weekend to cut down
on the copyrighted song traffic, statistics right now are: 2075980 songs
10350 users 8874GB of data.

So much for filtering.


#126 of 134 by krj on Tue Mar 6 18:32:09 2001:

Judge Patel's new injunction came out this morning.  Reports on it 
are in most online media sources.  The New York Times and inside.com
have pretty opposite analyses of it.


#127 of 134 by mcnally on Tue Mar 6 20:48:23 2001:

 regarding Napster song blocking, a friend sent me this..
 
 > I love this idea, from a headline blurb on Slashdot.  It can't see it
 > holding up, but it's a truly inspired idea.  :-)
 >
 >> AIMster is offering a Pig Latin encoder that will encrypt your mp3 titles.
 >> They state that, under the DMCA, it would be illegal for the RIAA to
 >> reverse engineer their encoding scheme and try and filter the encrypted
 >> filenames from Napster.
 
 I have to concur with his assessment that it's unlikely to prevent much of
 an impediment to the RIAA, but I love the ironic angle..


#128 of 134 by krj on Wed Mar 7 21:18:37 2001:

remmers in resp:124 :: a good article on the injunction and what it
requires  of Napster is at the Washington Post:

http://www.washtech.com/news/media/8141-1.html

My guess is that what happens is that the RIAA goes back before 
Judge Patel in a week or two and says, this is not working.


#129 of 134 by krj on Sat Mar 10 06:03:21 2001:

"The Music Business Thinks Like Napster:"
 
Found at Borders tonight is a sampler from the Verve label's new 
reissue program of old jazz classics:  Ella, Louis Armstrong, Count Basie,
Antonio Carlos Jobim, and so forth.   It's supposed to be free if 
you buy one album from the series: but if you want to buy it on its
own, Borders will sell it to you for a penny.
 
So far, pretty standard promotional stuff.  The twist:  for your penny, 
you get two identical CDs.   "Music so good we made it twice,"
reads the package.  "Keep one and pass it on!"
 
This is actually the second time I've heard of this gimmick, though
the first I've seen it in the store.
 
(Note to Twila: the package also says there is a bonus new Diana Krall
track in here, so you might want to scoop this up.)


#130 of 134 by sspan on Wed Mar 14 02:07:48 2001:

a penny for a new Diana Krall song? I'm there..:)


#131 of 134 by krj on Wed Mar 14 17:41:53 2001:

resp:128 ::  I lost the news story where the record labels are complaining
that Napster is still allowing many song files to be traded.
 
The LA Times reports that Napster is asking Judge Patel to appoint 
a technically competent monitor to verify that Napster is doing 
everything possible to comply with the injunction crafted under the 
guidance of the 9th circuit appeals panel.  


#132 of 134 by anderyn on Fri Mar 16 13:14:15 2001:

I just found out that e-music is having a free promotion (through March
18th) -- they'll let you download fifteen songs (or a whole album, as you
choose), for free. They do pay royalties to the artists, and it is a trial
to allow you to see how good their for-pay service is, but I found some 
pretty cool artists on there, and some groups I wouldn't have expected (lots
of Cooking Vinyl artists, Ken, and some Shanachie, too...). 

The url for those who might be interested is:
t http://www.emusic.com/index.html#promoanchor
(without the t at the beginning, of course)


#133 of 134 by dbratman on Fri Mar 16 19:04:05 2001:

As a law librarian, I've just had the privilege of cataloging a 
videotape recording of the appeals court arguments from last November 
by David Boies (for Napster) and other lawyers (for N's nemeses).

My private personal conclusion: They're all idiots, every one.


#134 of 134 by krj on Tue Mar 27 23:56:21 2001:

I've started a new Napster item to be linked between Music and Spring
Agora.  It's item:music,304 in the music conference.  
Discussion here should probably stop, though I won't take the step 
of freezing the item.


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