The district court’s conclusion that rules governing personal jurisdiction and venue provide no impediment to pre-Rule 26 discovery of the ISPs is legal error. A showing of “good cause,” which is required for discovery ostensibly intended to identify defendants, requires an evaluation of whether the information sought from the ISPs would be used to name and serve defendants in the forum. See, e.g., Oppenheimer Fund, Inc. v. Sanders, 437 U.S. 340, 352-53 & n.17 (1978) (where “the purpose of a discovery request is to gather information for use in proceedings other than the pending suit, discovery properly is denied”). The Copyright Act and the District of Columbia’s long-arm statute limit the court’s reach to defendants who reside in the district. And the uncontroverted evidence before the district court showed that few, if any, of the targeted Internet subscribers reside in the District of Columbia—as publicly available geolocation software used by Plaintiff’s counsel in other cases confirms. The district court’s decision to defer any consideration of personal jurisdiction or venue until after the subscribers’ personal information had been disclosed to Plaintiff requires reversal.

The court’s decision to permit discovery of the ISPs before deciding whether the 1,000-plus “Does” are misjoined provides an additional basis for reversal. Plaintiff, by routinely declining to name and serve defendants after obtaining the subscribers’ personal information, virtually ensures that Rule 20’s requirements for joinder will go unaddressed if not evaluated at the outset. And as a growing majority of courts have concluded, deferring a ruling on joinder deprives the courts of filing fees and encourages a proliferation of improperly coercive lawsuits. Given the groundswell of published opinions that disagree with the lower court and have severed or dismissed non-resident “Does” or all Does except for “Doe No. 1,” deferring a ruling on joinder in a suit that seeks nationwide subscriber information also encourages forum shopping—as the record here shows persuasively.

The record reflects that Plaintiff’s counsel’s cases have migrated across the country, with the venues selected, not by the locus of the parties or situs of harm, but based on counsel’s perceptions of which forum is most likely to authorize the greatest discovery, at the lowest cost, with the least judicial oversight.

The specter of intra-district, judge-specific shopping in Plaintiff’s counsel’s cases further underscores the problem with the lower court’s approach. The ISPs raised below Plaintiff’s counsel’s practice of filing complaints and dismissing them vel non based on the judicial assignment—only to re-file in another court. When presented with the same facts, Judge Wilkins quoted with approval Judge Huvelle’s finding: “Plaintiff’s actions a[re] akin to ‘judge shopping.’… This Court could not agree more.” ...

The ISPs respectfully submit that the district courts in this Circuit should not be the destination for 1,000-plus Doe cases that are brought primarily to compile mailing lists—not to adjudicate actual cases or controversies.

AF Holdings and its counsel owe a duty of candor to the Court, and a duty of fairness to appellants.... The serious issues concerning attorney misconduct and potentially forged documents were not identified for the court below; they necessarily affect the “good cause” analysis and provide an alternative basis for reversal to address the evidence now being considered in the pending disciplinary proceedings in the Central District of California.

Specifically, in a series of cases beginning with Dendrite Int’l, Inc. v. Doe No. 3, 775 A.2d 756, 760-61, 342 N.J. Super. 134 (App. Div. 2001), courts have adopted a balancing standard to assess requests for early discovery to identify anonymous online speakers that protects the right to speak anonymously while at the same time ensuring that plaintiffs who have valid claims are able to pursue them. Without such a standard, abusive plaintiffs could too easily use extrajudicial means against defendants from whom they could not, in the end, obtain judicial redress. See Levy, Litigating Civil Subpoenas to Identify Anonymous Internet Speakers, 37 Litigation No. 3 (Spring 2011).

The use of BitTorrent to select and share movies is expressive and, therefore, protected by the First Amendment. Call of the Wild Movie, 770 F. Supp. 2d at 350 (“[F]ile-sharers are engaged in expressive activity, on some level, when they share files on BitTorrent, and their First Amendment rights must be considered before the Court allows the plaintiffs to override the putative defendants’ anonymity.”).

Although the expressive aspect of the conduct alleged here – the posting of copyrighted movies to BitTorrent – is somewhat minimal, that does not mean that discovery to identify the anonymous user without adequate initial evidence that individual Doe Defendants committed the alleged infringement. The weakness of AF Holdings’ assertions of personal jurisdiction and proper joinder means that First Amendment concerns weigh more strongly here in favor of quashing the subpoenas. Certainly it was not appropriate for the district court to ignore the question altogether.

As economist Jeff Eisenach testified last year regarding Pandora royalties, "the ratio of Pandora's content costs to its revenues is within Pandora's control: To raise its revenues, it need only choose to sell additional advertising" or find other ways to cash in on its popular and successful product.

Pandora is choosing to limit revenues for now by keeping advertising low and attracting customers to its free service tier.... It's no reason to plead poverty in the face of massive audience growth and "better than expected" earnings reports.

Six months later, we have found no evidence that Google’s policy has had a demonstrable impact on demoting sites with large amounts of piracy. These sites consistently appear at the top of Google’s search results for popular songs or artists.

Well-known, authorized download sites, such as iTunes, Amazon and eMusic, only appeared in the top ten results for a little more than half of the searches. This means that a site for which Google has received thousands of copyright removal requests was almost 8 times more likely to show up in a search result than an authorized music download site. In other words, whatever Google has done to its search algorithms to change the ranking of infringing sites, it doesn't appear to be working.

For this analysis we performed searches for [artist] [track] mp3 and [artist] [track] download over a period of several weeks starting December 3, 2012

1. The RIAA will never, ever be satisfied, no matter what Google does. Which again, reinforces the idea that it was probably a bad idea to even cave in in the first place.
2. The RIAA still doesn't understand how search works, nor does it seem to have any interest in learning. It doesn't understand that every single other website in the world has to work hard to lift themselves up in Google's search rankings. They don't get to specifically call out sites they don't like and automatically force Google to lower their rankings. The RIAA gets a massive headstart on every other site in the world... and they still haven't figured out how to take advantage of this.

“Google has the resources to allow take downs that would more meaningfully address the piracy problem it recognizes, given that it likely indexes hundreds of millions of links per day. Yet this limitation remains despite requests to remove it,” RIAA noted.

In addition to unthrottling the URL limits, RIAA also says it wants to lift the cap on the number of queries they can execute per day to find infringing content.

“Google places artificial limits on the number of queries that can be made by a copyright owner to identify infringements.”

While there is no limit on the number of DMCA notices that a copyright owner or reporting organization may send us, we put safety limits on the number of automated submissions that partners can make at one time using our tools in order to protect our systems from technical problems. We increase these limits for partners who have demonstrated a consistent track record of submission quality and volume.

"To help protect House data, our IT policy generally prohibits the use of peer-to-peer (P2P) technologies while operating within the secure network," a spokesman for the Office of the Chief Administrative Officer told POLITICO this week. "While Spotify is currently not authorized, the CAO has and will continue to work with outside vendors to enable the popular services that improve member communication capabilities."

RIAA CEO Cary Sherman wrote to the Hill Tuesday to explain why Spotify shouldn't violate the House's IT policy and to lend a hand in getting the decision reversed: "These services are safe and secure, and assuring access to them not only respects the contractual relationship users may have with these services, but also achieves an important public policy goal of promoting legal, safe digital providers," Sherman wrote.

It may be symptomatic of Congress being susceptible to lobbyists' generally oversimplifying and misunderstanding complex technology. As EFF's Parker Higgins tweeted in response: "The years of indiscriminately vilifying p2p technology are now coming back to haunt the content industry." In particular, the policy may be a consequence of three hearings on filesharing in the House from 2007 to 2009, which received testimony criticizing filesharing: "Inadvertent File Sharing over Peer-to-Peer Networks" on July 24, 2007, before the House Committee on Oversight and Government Reform; "H.R. 2221, the Data Accountability and Protection Act and H.R. 1319, the Informed P2P User Act" on May 5, 2009, before the House Committee on Energy and Commerce, Subcommittee on Commerce, Trade, and Consumer Protection; and "Inadvertent File Sharing over Peer-to-Peer Networks: How It Endangers Citizens and Jeopardizes National Security" on July 29, 2009, before the House Committee on Oversight and Government Reform. This context suggests that maybe those hearings caused technophobic Congressmen to panic, leading to a regulation that is now mindlessly enforced as a part of House IT policy.

While at the RIAA, Ms. Temple-Claggett has worked on some of the most high-profile copyright cases brought by copyright owners in recent years, including the Supreme Court Grokster litigation, as well as litigation against LimeWire, XM Satellite Radio and Usenet.com

The problem of Internet piracy and the sale of counterfeit products online has not gone away. Senator Leahy continues to monitor law enforcement actions, significant developments in the courts and voluntary industry practices, and all those pieces will help determine what next steps are appropriate.
— spokeswoman for Sen. Patrick Leahy (D-Vermont), chairman of the Senate Judiciary committee and author of the Protect IP Act

We can all agree about the importance of protecting American innovation from foreign thieves, but I think it is critical that all parties have a seat at the table and work together to solve important policy issues. As chairman of the Judiciary committee, I look forward to working with both the technology and content communities to find ways to protect America's competitive advantage while promoting internet freedom and growth.
— Rep. Bob Goodlatte (R-Virginia), chairman of the House Judiciary committee and original sponsor of SOPA

Hollywood and Silicon Valley have more in common than most people realize. We share a commitment to innovation, to our consumers, and are working together to develop new platforms to make that content easily and legally accessible. Like the tech industry, the well-being of the film community is dependent on a vibrant First Amendment and we would never support any legislation that limits this fundamental right. We can all agree no one wins if everyone loses. Preserving freedom of speech and protecting intellectual property rights are not mutually exclusive efforts. Intellectual property protection is essential to creators and makers in both industries and we need to discuss it rationally. Let's use this anniversary to forge a path toward the future where the creative content and technology industries work together to develop meaningful solutions that ensure an Internet that works for everyone.
— Michael O'Leary, senior executive vice president for global policy and external affairs at the Motion Picture Association of America

It's a new day for a new music business and for the RIAA. For the better part of the last year, we have focused on being an evangelist for the dynamic, exciting legal online marketplace that now exists for fans. That will continue to be our priority in 2013. We earn more than half of our revenues from digital services and platforms. Not many creative industries can say that. Music helps drive social media trends and device sales. In fact, in 2012, the two top Google searches were music-related. Currently, 19 of the top 20 YouTube videos are music videos. And according to Twitter, seven of the top 10 Twitter accounts are held by artists.

What does this all tell us? Music is at the center of cultural and commercial phenomena. We are not stuck in the past but looking ahead at a promising, bright future teeming with new music options. Which is why we created, along with our online retailer partner NARM, WhyMusicMatters.com, a one-stop educational guide for digital music so fans can know where to get their favorite music in a variety of different ways. And we expect that this bright future will offer access to music in ways currently unimaginable but will perhaps seem commonplace a year from now.

Yes, piracy still continues to plague us and is a continuing threat to our business. But instead of looking to Congress for help, we are tuned in to the marketplace and actively seeking out voluntary partnerships with intermediaries like ISPs and advertisers to help curtail illegal downloading. Moving forward, we want to simplify music licensing to make it easier to develop music business models. We know that music models continue to evolve - access and listening models are becoming more prevalent and it's imperative we derive a fair market return for the music that is the foundation of those businesses. And as always, we'll continue to find new ways to promote the dynamic music marketplace.
— Mitch Glazier, senior executive vice president at the Recording Industry Association of America.

Protection of intellectual property and Internet freedom are critically important. The Chamber will work with members on both sides of the aisle to find an effective and commercially reasonable solution to address this ongoing problem.
— U.S. Chamber of Commerce spokeswoman

If you had asked me how I felt on January 18, 2012, about the prospects for protecting the creative work of artists and innovative businesses in the wake of the internet revolt against the Stop Online Piracy Act and the Protect IP Act, my response might have involved some muttering under my breath and a request for a stiff drink. In the coming week, many who seek to exploit the work of creators without their consent will be looking backwards and celebrating last year's defeat of those bills. So one might expect advocates for artists and creators to be in a dour mood again, but there is ample cause for optimism among members of the creative community...

At least some of the goals of the legislation have been achieved through increased private and government action since the introduction of the first version of the bills in 2010:

• More credit card companies are engaging in best practices. In June 2011, major credit card companies and online payment processors (American Express, Discover, MasterCard, PayPal and Visa) reached an agreement on voluntary best practices to reduce sales of counterfeit and pirated goods by cutting off sites that distribute infringing goods from conducting financial transactions through these processors.
• More advertisers are engaging in best practices. On May 3, 2012, the Association of National Advertisers and the American Association of Advertising Agencies issued a statement of best practices to address online piracy and counterfeiting.
• Internet service providers, movie studios and record labels are collaborating on a Copyright Alert System. Under this system ISPs have agreed to notify users when their accounts appear to be used for illegal downloading activity and to impose real consequences on users who refuse to stop after receiving multiple notices.
• Google finally started considering whether sites are rogue websites when doing search rankings. In August 2012, Google announced a change in its search algorithm that takes into account the number of "valid copyright removal notices" when determining the ranking of search results. In its announcement, Google indicated the goal was to help its users find legitimate sources of content more easily...

As more artists and creators stand with their peers and highlight what is really happening on the Internet, more people will listen and think twice. If there is a silver lining to the blackout, it has been the people who we have met this year: artists, reformed 'pirates' academics and lawmakers who want to begin meaningful conversations about promoting creativity and ensuring it finds a place in all of our lives.
— Sandra Aistars, executive director of the Copyright Alliance

Except for music, Vimeo strictly controls, monitors, and curates (in its words) the audiovisual works it copies, performs, and distributes. It prohibits – and uses its personnel and tools to review, monitor, and delete – all sorts of videos, including television programs, movies, and movie trailers, as well as “gameplay videos,” “commercial” videos (such as product promotions or real estate tours), “sexually explicit” videos, and “fan vids,” among others.... It enforces its discretionary and subjective guidelines to eliminate content that is not “Vimeoesque.”... All in order to mold its website and control its image.... Despite its pervasive involvement in and control of the content on its website, Vimeo does nothing to limit the infringing use of music on its website.

One of the early “creations” by Vimeo’s founder was a video format in which he “lip synched” to a commercial, copyrighted recording, synchronized the recording into the video during editing, and uploaded the video, making it available to every Vimeo user.... He named this “a lip dub,” and it was promoted as the “signature” Vimeo video genre, something that “put us [Vimeo] on the map.” .... As Vimeo and its users know, these popular lip dub videos, by definition, copy and incorporate copyrighted music without consent or license. ... (If Vimeo “suddenly started to ban videos with copyrighted music, like lipdubs, then I would be pissed but I would have to realize it’s their final decision.”) That also is apparent from Vimeo’s instructions on its home page on how to create lip dubs.... (“Like a music video. Shoot yourself mouthing along to a song then synch it with a high quality copy of the song in an editing program.”).

Lip dubs were heavily promoted. Vimeo provided a “Lip Dub Stars” channel, labeling it a channel “we like” and securing commercial sponsorship for it.... Lip dubs were featured as a “Vimeo Obsession” on Vimeo’s home page.... “Lip dub” became one of the top seven key words that drew visitors to Vimeo ..., and appeared (in several variants) in an internal chart of top “searches per day” on the Vimeo Website

The foundational premise of Locke's theory is that all people have a natural right of property in their own bodies. Because people own their bodies, Locke reasoned that they also owned the labor of their bodies and, by extension, the fruits of that labor. When an individual catches a fish in a stream, he has a right to keep that fish because but-for his efforts, the fish would not have been caught. For the same reason, an author has a right to his works because his efforts made the work possible. Under Locke’s view, "[o]ur handiwork becomes our property because our hands—and the energy, consciousness, and control that fuel their labor--are our property."

That is, "a person rightly claims ownership in her works to the extent that her labor resulted in their existence." If anything, under Locke's theory, intellectual property should be even more worthy of protection than physical property. Land and natural resources are pre-existing and finite, and one person's acquisition of a piece of tangible property may reduce the "common" that is available to others. Not so with tangible expressions: the field of creative works is infinite, and one person's expression of an idea does not meaningfully deplete the opportunities available to others; indeed, it expands the size of the "pie" by providing inspiration to others. Moreover, while tangible property such as land and chattel is often pre-existing and acquired through mere happenstance of birth, intellectual property flows directly from its creator and is essentially the "propertization of talent"--that is, "a reward, an empowering instrument, for the talented upstarts" in a society.

But creation of the loaf is not the reason why the baker owns it. He owns the loaf because he owned the dough that he baked. He already owned the dough, before any act of "creation"--before he transformed it with his labor. If he owned the dough, then he owns whatever he transforms his property into; the act of creation is an act of transformation that does not generate any new property rights. So creation is not necessary for him to own the resulting baked bread. Likewise, if he used someone else's dough--say, his employer's--then he does not own the loaf, but the owner of the dough does. So creation is not sufficient for ownership.

The central plank of the 1710 Act was then, and remains, a cultural quid pro quo. Parliament, to encourage "learned Men to compose and write useful Books", provided a guaranteed, if finite, right to print and reprint those works so composed. The legislators were not concerned with the recognition of any pre-existing authorial right, nor were they solely interested in the regulation of the bookseller's market.

In the 1690s, Parliament refused to renew the Stationers’ Company’s printing monopoly, and authors and booksellers in the newly competitive industry began pressing for formal protection for their works. Although he strongly opposed the Stationers’ Company’s monopoly, John Locke himself described literary publications as “property” and argued in a 1694 letter to Parliament that formal publishing rights should last for the life of the author plus seventy years.

In 1710, Parliament enacted the Statute of Anne, which formally granted authors of existing works a 21-year exclusive publication right and authors of new works a renewable 14-year exclusive right.

Specifically, the study of the Convention’s record provides three indications that the Framers intended the Progress Clause as a limitation on Congress’s intellectual property power. First, Madison and Pinckney’s initial proposals to vest patent and copyright powers in Congress were plenary and did not include language relating to the promotion of progress in science and useful arts. Had the Framers been content with such plenary patent and copyright powers, they would have likely adopted them as proposed. The Framers’ choice not to adopt the plenary proposals, but rather to subject their exercise to specific ends, tends to prove that the Progress Clause was added as a limitation.

No such right at the common law had been recognized in England, when the colony of Penn was organized. Long afterwards, literary property became a subject of controversy, but the question was involved in great doubt and perplexity; and a little more than a century ago, it was decided by the highest judicial court in England, that the right of authors could not be asserted at common law, but under the statute. The statute of Anne was passed in 1710.

That congress, in passing the act of 1790, did not legislate in reference to existing rights, appears clear, from the provision that the author, &c. "shall have the sole right and liberty of printing," &c. Now if this exclusive right existed at common law, and congress were about to adopt legislative provisions for its protection, would they have used this language? Could they have deemed it necessary to vest a right already vested. Such a presumption is refuted by the words above quoted, and their force is not lessened by any other part of the act.

Congress, then, by this act, instead of sanctioning an existing right, as contended for, created it. This seems to be the clear import of the law, connected with the circumstances under which it was enacted.

From: Teller, Paul
Sent: Saturday, November 17, 2012 04:11 PM
Subject: RSC Copyright PB

We at the RSC take pride in providing informative analysis of major policy issues and pending legislation that accounts for the range of perspectives held by RSC Members and within the conservative community. Yesterday you received a Policy Brief on copyright law that was published without adequate review within the RSC and failed to meet that standard. Copyright reform would have far-reaching impacts, so it is incredibly important that it be approached with all facts and viewpoints in hand. As the RSC’s Executive Director, I apologize and take full responsibility for this oversight. Enjoy the rest of your weekend and a meaningful Thanksgiving holiday....

Paul S. Teller
Executive Director
U.S. House Republican Study Committee
Paul.Teller@mail.house.gov
http://republicanstudycommittee.com

We hear this argument all the time and it makes no sense.... Peer-to-peer users tend to be younger and more Internet-savvy, so the likelihood that would be buying digital files makes perfect sense. But you can't compare that to the entire population.

P2P users spent US$42 per year on music on average, compared with US$76 among those who paid to download and US$126 among those that paid to subscribe to a music service. The overall impact of P2P use on music purchasing is negative, despite a small proportion of P2P users spending a lot on music.

• 16% bought no music files.
• Another 9% said that 10% or less of their music file collections were purchased.
• The median music file collection, among P2P users, is around 50% purchased.
• And 15% said that their whole collection was purchased (suggesting that they used P2P for other purposes).

P2P music downloaders do indeed buy more music than non-users. We’ve known that for about 10 years. It’s a dumb, illogical and irritating argument.

The average P2P user spent $90 per capita on music in 2004- now they spend $42 (CDs, downloads, subscriptions). This was during the same period when the number of files illegally downloaded per capita was rising.

[P2P users] are better digital consumers. But is also clear that this investment has fallen vis à vis large CD-based collections. The survey offers ample evidence of this shift in the way music aficionados relate to music–no longer organized around large CD collections or measured in terms of individually priced songs or albums, but rather defined by a mix of legal and illegal strategies for accessing everything now.

Celebrating P2P users for their contribution belies the fact that the paid component of the music that they acquire, aka their acquisition mix, is 50% less than the average music consumer.

In reality, the comparison is unfair – what it’s comparing is people who are interested in music with people who might not be interested at all. Of course people interested in music buy more. But as research firm the NPD Group (which has been studying these issues for a decade) points out here, this data is neither new, nor illustrative. In their words, “Celebrating P2P users for their contribution belies the fact that the paid component of the music that they acquire, aka their acquisition mix, is 50% less than the average music consumer. Yes, that’s half the average.”

We’ve argued that the media ecology has become so complicated that nobody has a handle on what substitutes for what. Does a pirated MP3 file substitute for a $1 purchased file, a $12 CD, some number of listens on YouTube or Spotify or radio? Does Spotify substitute for MP3 purchases? Or YouTube listens? Should we take stagnant discretionary income into account, and rising costs for other media services, like cable TV, Internet access, and data plans. Do national differences matter–including major differences in digital markets and services (In Germany, CD sales represent over 80% of the market; in the UK and US, under 50%).... Which of these factors get priority? How do we model their interaction?

"There are always going to be those who look for bootlegs and songs you can't find on sites like Spotify and Rdio, and there will always be people who see illegal downloading as a sort of game, but I think that number will just get smaller and smaller as other options become more convenient with all your devices," says Russ Crupnick, senior entertainment industry analyst for NPD.

The reason for this, as Crupnick and others note, isn't because of potential legislation that mirrors SOPA so much as the growing number of cheap, legal alternatives to illegal downloading combined with the decline of many well-known file-sharing sites.

ISPs caving to copyright holders- could shut off your Internet if you're accused of piracy...!

"As far as the 41%, from that data set," came Friedlander's reply, "if you look at any of a variety of months between late 1999 and 2011 and 2012 (such as July '99 vs Aug '11) you can see declines around the 41% level (different months yield different figures, but some are even higher than 41%)."

The problem with this response was that Sherman's categorical statement that we've seen a 41 percent drop in the number of musicians and artists since 1999 wasn't based on a monthly chart. It was based on the yearly table that he showed the Personal Democracy conference.

The number of people attending musical performances, such as orchestra, opera, and rock concerts, is expected to increase from 2010 to 2020. As a result, more musicians and singers will be needed to play at these performances.

There will be additional demand for musicians to serve as session musicians and backup artists for recordings and to go on tour. Singers will be needed to sing backup and to make recordings for commercials, films, and television.

According to Paul Vidich, a former Warner Music executive who closed the iTunes deal, the pending merger between Universal and EMI could put an end to that state of affairs.

"Without a UMG-EMI license, they won't have a business," said Vidich, referring to new digital startups. "Within the new UMG-EMI there will be only a handful of senior executives who make these key licensing decisions. So this small group will become the gatekeepers for music startups that require these licenses. The psychology, pay packages and strategic interests of these executives will have an outsized impact on diversity and innovation in the entire online music industry."

Copyright protection is essential to the health of the motion picture and music industries and the U.S. economy as a whole. Like the sale of “pirated” copies, unauthorized importation of copies of protected works made overseas and intended only for sale in a foreign market can undercut or eliminate the economic benefit that Congress intended to provide under the Copyright Act.

Extending the first sale doctrine to copies made abroad for distribution in a foreign market could impede authors’ ability to control entry into distinct markets, limit their flexibility to adapt to market conditions, or undermine territorial licensing agreements. If accepted, Kirtsaeng’s view of the first sale doctrine could thus prevent U.S. copyright holders from obtaining the economic reward Congress intended to provide under U.S. law to motivate investment in creative activity.

When copyright owners distribute tangible copies of creative works in a foreign market, they recoup the economic benefit made possible by the copyright law of that country, which may be substantially less generous or well enforced than U.S. copyright law. They do not realize the separate benefit Congress intended them to derive from their U.S. copyright. If those copies are imported into the United States without permission, the copyright owner might never obtain that full benefit.

Those harms, in turn, could have deleterious consequences for the U.S. economy as a whole. As of 2010, the motion picture and television industry supported 2.1 million jobs and nearly $143 billion in total wages in the United States.... In addition to the major motion picture studios, the industry supports a nationwide network of nearly 95,000 businesses throughout the 50 States. Id. The music industry employed over 25,000 paid employees as of 2004.... The industry supports many smaller businesses such as retail stores, distribution companies, recording studios, and music professionals. The retail trade alone generates over $7 billion from the sale of sound recordings... Maintaining robust copyright protection is thus crucial to preserving not only the health of these creative fields themselves, but also their substantial contributions to the national economy.

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2000: RIAA negotiates a small increase in financial support from labels' substantial savings from physical media reductions to create the Online Strategy Group (OSG), hiring engineers, programmers, technologists, musicologists and a futurist or two. The OSG's first suggestion is FoM, Future of Music, which the RIAA incorporates, initially to handle the growing subscription business.

2001: On OSG's advice, the RIAA convinces member labels to cross-offer artists by genre in sites with fun names like, "soultology.com", "hitsnmisses.com", "netrockstar.com", "eargasm.com", etc. A marginally increased monthly fee ($1 more for each sub-site) gets download access and membership in forums, discounts on t-shirts, tickets, posters, etc. FoM takes over all revenue-generating ventures and negotiates equitable profit-sharing deals with the labels and reaches out to independent artists. FoM buys Creative and, with help from the OSG brain-trust, designs and sells a fantastically popular line of MP3 players.

2002: Capitalizing on the psychology of "sharers", OSG introduces memberships that encourage people to find and upload obscure and out-of-print audio. Uploaders compete for discounted memberships, back-stage passes, artist access and the most important prizes: minor fame, street-cred and a custom avatar. The RIAA creates work-arounds for copyright issues removing limits on fan's abilities to upload, modify and share work.

2003 - 2005: Recognizing the growth of social media, the OSG introduces groups and messaging. Higher-access users get expanded pages on OSG sites and are encouraged to rate and critique music. OSG makes available interaction with music journalists, holds contests for album & t-shirt art, gives prizes for mashups with highest votes by the communities. The OSG makes "Locker" space available, 1G free, $1/mo for each additional gigabyte. OSG introduces "Rip Me" - user puts a factory CD in the computer drive tray, and is given the option to rip/upload tracks or have recording company copies put in his/her locker. (Subsequent attempts to upload the same CD from another computer is allowed with a minimum new subscription)

2006 - 2010: FoM buys Pandora, iTunes, YouTube, RIM, Turntable.fm, Facebook and a controlling interest in Sirius. OSG helps FoM branch the Blackberry, creating the "Rockberry", a consumer-oriented "mobile media sharing device". OSG solicits auditions from all musicians everywhere, showcasing the best on YouTube. FoM makes record profits from tours, downloads, streams, hardware, music licensing and merchandise. Cary Sherman becomes fifth richest man in the US.

2011: *FoM introduces choice "retro" vinyl, CD and tape catalogue for hipsters worldwide. OSG and RIAA move into "palatial" FoM office campus in Los Angeles, work begins on 30-story FoM tower in Manhattan.

Cross-posted from botaday.com

I asked him whether he stood by his presentation's claim that "TPP will result in 'kicking people off the Internet'" was a myth.

"It is," he said.

I showed him a printed-out copy of the section of the TPP leak that referred to "terminating specified accounts" of copyright infringers.

He visibly stiffened. "I'm not commenting on a leaked draft," he told me. "From what I know, the TPP framework would not force anyone off the Internet. I don't know anything about the TPP draft."

Had Schlesinger actually read the TPP, either the leaked chapter or the current draft? I can't say for sure. Legally, he can't have read the latter, because he's a federally registered lobbyist, which would bar him from seeing the text.

In just three years the revenue generated by the anti-piracy outfit reduced from $92.8 million to $49.6 million. The decreased budget is a direct result of the major Hollywood studios cutting back on their MPAA funding. In the same period membership dues dropped from $84.7 million to $41.5 million, more than a 50% decline.

Other than barebones references from two of the four movant ISPs that these subpoenas impose “a substantial administrative burden,” the ISPs fail to present any witness or other evidentiary detail to demonstrate a burden to the Court, let alone what steps the ISPs are or could be taking to deter infringing activity on their networks to reduce any burden subpoena compliance engenders.

The plaintiff’s estimates regarding the amount of online infringing activity and the economic harm resulting from such activity is corroborated by a recent government report. See U.S. GOV’T ACCOUNTABILITY OFFICE, GAO-10- 423, INTELLECTUAL PROPERTY: OBSERVATIONS ON EFFORTS TO QUANTIFY THE ECONOMIC EFFECTS OF COUNTERFEIT AND PIRATED GOODS 23-24 (2010) (estimating that U.S. economy annually loses $58 billion, over 370,000 jobs, and $2.6 billion in tax revenue as a result of copyright infringement over the Internet) (citing Stephen E. Siwek, THE TRUE COST OF COPYRIGHT INDUSTRY PIRACY TO THE U.S. ECONOMY, Institute for Policy Innovation (IPI), IPI Center for Technology Freedom, Policy Report 189 (Oct. 2007)).

Since there is an absence of data concerning these potential effects, the net effect cannot be determined with any certainty

“The lack of a performance royalty for terrestrial radio airplay is a significant inequity and grossly unfair. We can’t start a race to the bottom when it comes to royalty rates and compensation for artists," Nadler said in a statement. "The Interim FIRST Act would provide artists with fair compensation for the valuable creations they share with all of us."