Negotiating Through Lawsuit Continues: EMI Drops Lawsuit, Signs Deal With Grooveshark

from the all-in-the-negotiation dept

We've noticed a troubling trend in how legitimate online music services are being pressured into deals with the major record labels. The labels begin the negotiations on licenses... and then sue the company. That, of course, makes life difficult for the startup, which is then pressured to offer even better (read: ridiculously onerous) terms to the labels. We've seen it happen over and over again, and saw it happening when EMI sued Grooveshark this past summer. And, of course, a few months later, the lawsuit is dropped and a licensing deal has been reached, though you can bet the terms are not quite what Grooveshark originally intended. That's what happens when part of the "negotiation" involves a lawsuit.

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It's 2009 And Newspapers Are Just Now Realizing That Reporters Should Interact With Their Communities?

from the better-late-than-never dept

We've complained in the past about how rare it is for reporters at newspapers to actually engage in comments on their articles. Instead, they seem to view the comments with disdain, pointing out how idiotic many comments are. Well, of course that's what happens when the folks at the actual newspaper ignore them. So, while it's nice to see a newspaper like the Cleveland Plain Dealer (whose writers have been advocating for changing copyright law to protect newspaper business models) finally realize that its reporters need to engage in comments in order to foster more of a useful community in those comments, it's really quite stunning that it's taken this long for newspapers to figure it out -- and that such a "revelation" requires a special announcement from the newspaper itself.

We're joining the online conversation. For too long, we at The Plain Dealer posted stories on cleveland.com and then turned away to focus on the next day's news. Now, we're encouraging our reporters and editors to pay attention to what you're saying, to answer your questions and respond to your complaints.

A newspapers' true asset is the community it serves. Too many in the newspaper business have been neglecting that community. It's great that this particular newspaper seems to have finally figured it out, though it's amazing that it took this long and is such a big change in focus that it requires an announcement.

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Finland Says 1Mb Broadband Access Is A Legal Right

from the my-rights-are-being-trampled dept

While the US is still struggling to figure out how to define broadband and where it's even available, Finland has decided that 1Mb broadband access should now be considered a legal right, with plans to boost that to 100Mb by the end of 2015. There do appear to be some exceptions for remote households, but if I were living in Finland right now, instead of the heart of Silicon Valley, my "legal rights" would be denied. While I'm not sure it makes sense to define broadband as a legal right, it's yet another reminder of how far behind the US appears to be on broadband deployments.

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Ad Blindness Rules: Even Fewer People Clicking Ads

from the bye-bye dept

We've been discussing why online advertising is often a bad idea for advertisers (not so much for many publishers, but that's a different issue), as ad blindness rules the day. Now there's even more evidence, as the already tiny clickthrough rate on online ads is dropping, rapidly. Basically, it sounds like more and more people are simply ignoring online ads, which is to be expected, since they rarely (if ever?) add much of value. This is the advertisers' fault. There are lots of ways that advertisers could actually add value for consumers/readers/users online -- but they're all so scared to death of actually taking that step. Instead, many are so focused on obsolete metrics like the CPM, that they're unable or unwilling to really branch out and try marketing and advertising programs that actually are effective. Simply tossing up more ad banners isn't doing the trick. Really engaging with users would help, but most brands still haven't figured out quite how to do that, even if it isn't particularly complex.

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Anti-File Sharing Propaganda Back To Focusing On That Horrible Malware You'll Get

from the unprotected-file-sharing-is-bad dept

The thing that you sort of need to admire about the copyright maximalist lobby is that they attack the problem from so many different directions on such a constant basis. It's almost impossible to keep up -- though, you do begin to notice some patterns. A particularly popular move is to alternate between the moral argument against copyright infringement (stealing! bad!) and the idea that file sharing is going to destroy your computer (we're just looking out for your safety!). It looks like the industry is back on that latter kick, as two recent stories indicate.

First, the BSA has its widely debunked "piracy" numbers -- but it's now getting news for focusing instead on how you're going to get malware if you file share. Since it can't actually back up its bogus numbers, instead it's hoping that most people don't know that correlation doesn't mean a causal relationship -- but at least we know that most of our readers know better. The report notes that there's a correlation between higher piracy rates and higher malware infections, but seems to totally ignore exceptions to that rule (the US) or delve into other variables that may explain either the piracy rate (already questionable) or the malware rate (education levels? poverty? shared computers? etc.). Even more amusing, they claim (with no actual evidence) that those who get malware have to spend more to repair their computers than it would have cost to get the legitimate software in the first place. I have no doubt that there are risks for those who file share, but this report does nothing to show the actual risks and is yet another in a long line of weak propaganda from the BSA, that despite being called on it for years, never seems to do anything to back up its reports with facts.

Then, we have the story of the MPAA apparently sending a bunch of anti-piracy comic books to New Zealand, home of one of many different fights on how to change copyright law. The comic book, like the BSA report, involves plenty of ridiculous and unsubstantiated claims about how file sharing will unleash nasty malware and viruses all over your computers -- but drawn in nice comic book form. Can we send those kids who got the MPAA comic book a copy of the Tales from The Public Domain comic books as well? There are free digital downloads for anyone who wants to hand them out in exchange for the bogus MPAA ones....

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Can't Innovate? Litigate! 3Com Goes Patent Lawsuit Ballistic

from the ghosts-of-companies-past dept

Remember back when 3Com was a big innovative company coming up with interesting new products? What happened since then? Well, as we've seen over and over again, once a company runs into trouble continuing to innovate, its last ditch effort to stay in business is to start suing everyone for patent infringement. Step up to the plate, 3Com. The company set up a subsidiary specifically for suing other companies for patent infringement and just sued Acer, Apple, Asus, Dell, Fujitsu, Gateway, HP, Sony, and Toshiba. Oh, and take a guess where this "subsidiary" set up shop? East Texas... of course. All the better to file patent lawsuits apparently...

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Universal Music Prevents Popular Play From Showing In Stockholm, Despite Not Having The Legal Rights

from the copyfraud... dept

As the major record labels and their lawyers and lobbyists run around the globe demonizing anyone for any sort of copyright infringement, we keep hearing stories of how they falsely claim rights over music for which they do not hold them. We recently covered the story of Edwyn Collins and his inability to offer free downloads of a popular hit song -- because Warner Music Group put in a copyright claim on the song. Reader Marius points us to a similar situation, over in Sweden. Despite theaters in Sweden being covered by a license agreement on musical performances by STIM, the Swedish performing rights collection society, apparently some music publishers claim that theaters still owe more money.

In one case, Universal Music (I assume its publishing arm...) threatened a theater because a popular play (that had toured without incident all over Europe) included a part where a Simon & Garfunkel record was playing in the background. The theater owner actually wrote a letter to Paul Simon to find out what his complaint was -- and received a response saying that Universal does not represent Paul Simon's music in theater contracts. Now, it's possible that there was some misunderstanding (language, cultural or legal), but this sort of thing seems to be happening more and more. When the theater owner informed Universal of this, Universal apparently retracted its demands for payment -- but the theatre company putting on the performance had already decided not to risk doing the play.

It's difficult to see how anyone comes out ahead in such a scenario. The Swedish public doesn't get to see the play or hear the music. Paul Simon doesn't get to attract new fans. Universal Music doesn't get anything other than a lot of ill will from the theater community. Why even bother at all?

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Appropriation Artist Makes Paintings Out Of WSJ Stipple Images... Pisses Off Stipple Artist

from the brewing-legal-battle? dept

If you're sitting around waiting for the Shepard Fairey lawsuit to move forward, here's another brewing situation to follow. As you probably know, the Wall Street Journal is famous for its "stipple" illustrations of various newsmakers -- in fact, some people consider it to be quite an accomplishment in life to be memorialized in a WSJ stipple image. Appropriation artist Jose Maria Cano obviously recognizes this and has created a series of paintings called the Wall Street 100 -- made up of large painted versions of the WSJ's stipple images. There's no effort, whatsoever, to disguise this. In fact, the painting even include snippets of text around the images:

The fact that the collection of images is called the Wall Street 100 might be another tipoff. And yet... the WSJ stipple artist who created the original Obama stipple that was used for the image above is pretty upset about all of this, and says that the Wall Street Journal legal team "is on top of this case." If this actually turns into a lawsuit, there's probably a much stronger copyright claim here than in the Shepard Fairey case, but again, I'm left wondering what good this would do. The complaint from the original artist, Noli Novak, isn't about money (she doesn't even own the rights to the images), but about Cano getting credit for her artwork -- even though it's pretty clear that Cano's work was simply making paintings out of the WSJ images. Cano seems to be doing standard appropriation art, taking something from elsewhere and turning it into "artwork." While you can understand why Novak might be offended, it's difficult to see what sort of "loss" there is here that's worth being concerned about. Why not just be happy that someone decided the little stipple drawings were worthy of being ripped from the newsprint and turned into serious art?

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If You're A Fugitive, You Probably Shouldn't Update Your Facebook Status With Location... Or Friend A Fed

from the some-suggestions dept

No one ever said criminals were particularly intelligent. With all the stories we've seen of various people revealing things they shouldn't on social networking systems, you knew that stories like this one were going to become more common. Apparently a fugitive on the run for bank fraud not only updated his Facebook status with his whereabouts (a resort in Cancun, Mexico), but also "friended" a former Justice Department official, who helped hand over the fugitive's info to officials who tracked down and arrested the guy.

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Tiananmen Activist... Turned Entrepreneur... Turned User Of Trademark To Stifle Free Speech

from the free-speech-for-me,-but-not-for-thee dept

Paul Alan Levy alerts us to yet another shameful case of someone abusing trademark law to try to silence critics. In this case, it involves the software company Jenzabar, which makes software for colleges and universities, and apparently likes to play up the fact that its founder and CEO, Ling Chai, was one of the "leaders" of the Tiananmen Square uprising in 1989, before fleeing to America. Apparently Chai likes to play up that connection for PR purposes, and has been able to get the press to cover Jenzabar with headlines like "From Tiananmen Leader to Netrepreneur" and "From Starting a Revolution to Starting a Company."

However, when the makers of a documentary film about the uprising at Tiananmen Square included some comments and links to articles that were critical of Chai, she went legal. It started with a lawsuit claiming defamation against the film makers, which got quickly tossed out. So, instead, Chai and Jenzabar appear to be trying to use trademark law to bankrupt the filmmakers. They've filed a trademark lawsuit, claiming that the filmmakers' web page, that talks about Chia and Jenzabar, violates its trademarks, noting that the page turns up in search results on Jenzabar and the term is in the metatags.

Pretty much everyone involved recognizes that this is a ridiculous abuse of trademark law to stifle free speech. There is no violation of trademark here. Posting links to stories about Chai and Jenzabar that are critical of her is not a trademark violation in any manner. Using the term in metatags is totally meaningless. It's a shame that someone who apparently once stood as a voice for freedom is now trying to stifle free speech in others via trademark law abuse.

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Pandora Continues To Push Users To Vote For Shameful Radio Performance Tax

from the can't-compete? dept

We mentioned back in July how Pandora was urging its users to support the Performance Rights Act, which is effectively a government bailout for the RIAA by taxing already struggling radio stations for the right to help promote the RIAA's music. It's a travesty. The only reason Pandora supports it is because Pandora was pressured into its own ridiculous webcasting rates and wants to help bring down radio too. While I like Pandora as a service, I think it's shameful that it's now using the political process to burden competitors with a government created tax, that goes straight to the RIAA.

Apparently, Pandora has once again ramped up this effort to have the government tax its competitors. A whole bunch of you have been forwarding these ridiculous emails from Pandora that urge people to contact their elected officials in support of the RIAA Bailout bill. Most of those submitting those emails to us have said that you'll be doing the exact opposite, and are offended that Pandora is pushing you to support such a thing.

Yes, Pandora, it sucks that you got stuck with ridiculous webcasting rates that will make it difficult to remain profitable, but that's no excuse for trying to get the government to dump an unfair tax on your competitors.

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Is There Any New Technology The Copyright Industry Hasn't Tried To Stop?

from the luddites-in-action dept

Earlier this year, we wrote about a long line of politicians fearing the impact of new innovations -- from video games to the waltz -- and how they would harm the morals of children. These were classic "moral panic" quotes from politicians. As a bunch of you have sent in, Ars Technica put together a similarly nice list of moral panic quotes concerning pretty much every major new technology innovation from the past 100 years. From the days of the grammophone and the player piano (which was the main reason behind much of the 1909 Copyright Act), the big copyright holding industries have pushed out fear mongering quotes about how some new technology would absolutely destroy the ability to make money from content, unless Congress acted quickly to put in place some new restriction, tax or extra right for those copyright holders. In every single case the fears and complaints from the industry weren't just wrong, but were stunningly backwards. Every technology opened up new markets and new opportunities.

And yet, where are we today? We're still listening to the RIAA, MPAA, BSA, NMPA, ASCAP and others spewing the same nonsense about the internet. And almost no elected official or reporter calls them on this. They may claim that "this time it's different," but shouldn't the burden be on them to actually prove it for once?

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ACTA Negotiations Back On... White House Shows Small Group Proposed Text Under NDA

from the but-what-about-the-public dept

With the next round of negotiations on the ACTA treaty -- which may require the US and other countries to make significant changes to copyright law that favor the entertainment industry -- set to get underway, the White House still refuses to release details to the public, but did show the text to 42 Washington "insiders" under NDA. The good news is that the list includes a fair number of folks who recognize the problems with copyright law and the ACTA proposal -- including people like Gigi Sohn, William Patry, Sherwin Siy, David Sohn and Michael Petricone. Many of those people will push for the public's best interests. But, still, it's a bit troubling that the whole conversation remains secret for "national security" reasons. If we're talking about changing copyright laws that effect everyone, why not let everyone know? Sherwin Siy, from Public Knowledge, told KEI (in the link above) about his experience viewing the document, which sounded greatly limited, and notes that while the document has been adjusted, "the most troubling aspects" have not been "resolved."

In the meantime, it's worth asking why this is necessary again. First of all, in a world where trade agreements are supposed to be about breaking down trade barriers, ACTA seems designed to be putting up protectionist policies. Protectionism doesn't work and only creates more harm. But, much more importantly, much of the push for ACTA is based on lobbyists' claims of the "harm" done by counterfeiting. Except both the GAO and the OECD have put out independent reports showing that counterfeiting isn't that big a problem, and that whatever problems there are seem to be significantly exaggerated by lobbyists. Yes, those same lobbyists who were given much earlier access to the document and, records suggest, had a hand in shaping the document itself. So why do we need ACTA again? And why are we allowing those who the government has already found to have exaggerated the problem drive the negotiations?

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And Here Come Another Round Of Yawn-Inducing Music Subscription Services

from the too-little-control dept

Well here we go again. There have been numerous attempts at music subscription services, and none have really done all that well. While some people do love their Rhapsody or Napster accounts -- neither has been a runaway success, and both struggle to get much attention these days. Yet, so many entrepreneurs believe it's a holy grail. So, here we go again. With plenty of people waiting for Spotify to enter the US market, the NY Times reports on two other new entrants; one from Mog -- who seems to have blasted press releases to everyone, with the general reaction being a big yawn and one from the founders of Kazaa and Skype, called Rdio. Neither sounds particularly compelling.

The problem with all of these subscription services is that they inherently need to have limits. You have to keep paying, you can't really share music with others, you may be able to take some of your music on the go, but it's usually a convoluted process. And that's a problem. Because people understand how mp3s work -- and that's without restrictions. Trying to get people to pay for a music experience with restrictions, that offers less than what they know can be done, is a recipe for failure. It's time to stop thinking of trying to "sell music" and start realizing how you can use music to sell something better.

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Venture Capitalists May Be Left Out Of Burdensome Regulations On Private Equity

from the good-news dept

Last month, we were a bit worried that an admittedly clueless Congress might lump venture capitalists in with other private equity firms in putting forth new regulations. Venture capital is quite different from basic private equity, and the proposed regulations would be quite burdensome for VCs without having any benefit. These "systemic" risk rules don't make sense for VCs who aren't investing in public investment vehicles for short times, but instead do long term strategic investments in private startups. VCs have been pushing Congress on this, and it looks like they finally got through to someone, as it appears that Barney Frank is looking to exempt VCs from any such regulation. This makes a lot of sense as venture capital and traditional private equity are very different animals, and putting them both under the same regulatory rules makes little sense. Putting VCs under systemic risk regulations makes even less sense, considering how unlikely it is that VCs investing in startups are involved in any sort of systemic risk issues.

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