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<pubDate>Wed, 15 May 2013 05:32:00 PDT</pubDate>
<title>Canadian Anti-Infringement Enforcement Company Caught Using Infringing Photos On Its Website</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20130514/20283923089/canadian-anti-infringement-enforcement-company-caught-using-infringing-photos-its-website.shtml</link>
<guid>http://www.techdirt.com/articles/20130514/20283923089/canadian-anti-infringement-enforcement-company-caught-using-infringing-photos-its-website.shtml</guid>
<description><![CDATA[ IP "enforcement" is a Herculean task (according to the enforcers), one that requires so much time and energy that those pursuing infringers barely have time to make sure their own backyard is clean. Many in the copyright industry (or closely affiliated) have been caught infringing on others' copyrights: hosted infringing material. SOPA pusher <a href="http://www.techdirt.com/articles/20120112/11042717390/lamar-smith-caught-infringing-photographers-copyright.shtml" target="_blank">Lamar Smith</a>. <a href="http://www.techdirt.com/articles/20120330/08581418302/nbc-universal-caught-using-infringing-graphic-apple-probably-wont-learn-anything.shtml" target="_blank">NBC Universal</a>. <a href="http://www.techdirt.com/articles/20101210/02455612230/copyright-troll-righthavens-number-one-supporter-caught-putting-infringing-material-his-own-blog.shtml" target="_blank">Righthaven</a>. The <a href="http://www.techdirt.com/articles/20100730/10510310426.shtml" target="_blank">US Copyright Group</a>. The list literally goes <a href="http://www.techdirt.com/search-g.php?q=caught+infringing" target="_blank">on and on</a>.
<br /><br />
Here we are again, discussing an entity so concerned with outside infringement, it can hardly be bothered to notice the infringement within its own walls. Canipre, the Canadian "<a href="http://www.techdirt.com/articles/20121202/19532721203/canadian-copyright-law-caps-statutory-damages-5000-just-as-file-sharing-lawsuits-make-their-unwelcome-return.shtml" target="_blank">forensics software</a>" company that has hunted down IP addresses for a "million pirates" on behalf of lawsuit-happy studios like <a href="http://www.techdirt.com/blog/?company=voltage+pictures" target="_blank">Voltage Pictures</a> ('Hurt Locker,' anyone), <a href="http://www.vice.com/read/canadian-copyright-canipre-images-without-permission" target="_blank">has decked out its (rather overdramatic) website with the unlicensed photos belonging to others</a>.
<blockquote>
<i>Canipre, as a company, offers to track down people who are illegally downloading copyrighted material from record companies and film studios. According to their website, they have issued more than 3,500,000 takedown notices, and their work has led to multimillion dollar damages awards, injunctions, seizure of assets, and even incarceration.</i>
<br /><br />
<i>In a <a href="http://news.nationalpost.com/2013/05/12/anti-piracy-firm-wants-to-bring-u-s-style-copyright-lawsuits-to-canada/" target="_blank">recent interview</a>, Canipre's managing director Barry Logan explained that it's about much more than just money&mdash;he's hoping to teach the Canadian public a moral lesson:</i>
<br /><br />
<i>"[We want to] change social attitudes toward downloading. Many people know it is illegal but they continue to do it... Our collective goal is not to sue everybody&hellip; but to change the sense of entitlement that people have, regarding Internet-based theft of property.&rdquo;</i></blockquote>
Well, it seems the "sense of entitlement" goes all the way up. Here's a screencap of Canipre's website that features a <a href="http://www.flickr.com/photos/12737693@N04/3113969750" target="_blank">self-portrait</a> by Steve Houk.
<br /><br />
<center><a href="http://www.vice.com/read/canadian-copyright-canipre-images-without-permission" target="_blank"><img alt="" src="http://i.imgur.com/diZ3VHB.jpg" style="width: 501px; height: 335px;" /></a></center>
<br />
We'll quote Vice here:
<blockquote>
<i>So, just to be clear: Canipre has written "they all know it's wrong and they're still doing it." Referring to copyright theft. On top of an image that they are using without the permission of the copyright holder. On their official website.</i></blockquote>
Houk says no permission was given to use his photo. He contacted Canipre directly to discuss its infringement and to point out that is was "disheartening" to see a company claiming to "champion intellectual property rights" obviously disregarding the rights of others. This led to Canipre's marketing director firing off a volley of emails and phone calls before finally deciding to pass the buck.
<blockquote>
<i>Logan claimed that the company used a 3rd party vendor to develop their website and that the vendor had purchased the image from an image bank.</i>
<br /><br />
<i>I pointed out to Logan that if that was true, he had basically paid his vendor to rip off other people's creative work. Logan told me that he would contact his web provider and have the image removed. He also told me that he would provide me with the name of the website developer and the name of the image bank where they obtained my photo.</i></blockquote>
So, it's important that Canipre maintains a presence on the web that properly (and noirishly) delivers its message on the importance of intellectual property rights, but not important enough to dot i's, cross t's and make sure its "third party vendor" isn't simply grabbing images from "the internet" (or image banks with their own infringement problem).
<br /><br />
Logan has yet to provide the name of the developer or the image bank, so it still remains somewhat of a mystery which 3rd party vendor slapped Houk's photo onto an IP enforcer's website. And <a href="http://assets.vice.com/content-images/contentimage/no-slug/8f4a1312f6b35584ea61101b2d0c5505.jpg" target="_blank">this photo</a>, taken by <a href="http://www.flickr.com/photos/saschapohflepp/2234924127/" target="_blank">Sascha Pohlflepp</a>. And <a href="http://assets.vice.com/content-images/contentimage/no-slug/893b31a551866aa6652625f64404a1c8.jpg" target="_blank">this one</a>, taken by <a href="http://www.flickr.com/photos/doctabu/291216582/" target="_blank">Brian Moore</a>. At this point, all of the infringing photos have been taken down, but only after Vice called attention to Canipre's actons.
<br /><br />
The ironic thing about the last two photos is that they're both Creative Commons-licensed, meaning all Canipre (or its vendor) had to do was properly attribute the photos. But neither could be bothered.
<br /><br />
Now, some might say that in the scheme of things, Canipre's infringement is nothing compared to the infringement it's fighting. But here's the difference. Canipre is a company that helps studios like Voltage sue alleged infringers based on not much more than an IP address. File sharers aren't turning a profit or presenting themselves as righters of the world's wrongs. If you're going to put yourself in the position of "educating" people (via mass lawsuits) about the importance of the intellectual property rights you're being paid to protect, you had better make sure you're not stepping on the IP toes of others.<br /><br /><a href="http://www.techdirt.com/articles/20130514/20283923089/canadian-anti-infringement-enforcement-company-caught-using-infringing-photos-its-website.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130514/20283923089/canadian-anti-infringement-enforcement-company-caught-using-infringing-photos-its-website.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130514/20283923089/canadian-anti-infringement-enforcement-company-caught-using-infringing-photos-its-website.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>casual-infringement-for-all!</slash:department>
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<pubDate>Thu, 7 Mar 2013 08:43:42 PST</pubDate>
<title>Microsoft: Just Kidding, You Can Transfer Licenses For Your Retail Versions Of Office</title>
<dc:creator>Timothy Geigner</dc:creator>
<link>http://www.techdirt.com/articles/20130306/09195522215/microsoft-just-kidding-you-can-transfer-licenses-your-retail-versions-office.shtml</link>
<guid>http://www.techdirt.com/articles/20130306/09195522215/microsoft-just-kidding-you-can-transfer-licenses-your-retail-versions-office.shtml</guid>
<description><![CDATA[ <p>
A few weeks back, I wrote a piece about how Microsoft was <a href="https://www.techdirt.com/articles/20130213/10093021963/microsoft-makes-retail-versions-office-single-install.shtml">changing</a> the licensing terms for the retail versions of its Office product so that it would be a single install license. As I mentioned in that piece, this seemed like a pretty clear attempt to get retail customers to move to MIcrosoft's Office 365 line, requiring an ongoing subscription. Otherwise, retail customers would be beholden to their PCs, left to buy a new copy of Office should that machine no longer function (especially so if that machine wasn't under warranty). Customers, to put it mildly, were not impressed.
<br /><br />
And it was that customer feedback that has apparently prompted Microsoft to <a href="http://blogs.office.com/b/office-news/archive/2013/03/06/office-2013-retail-license-agreement-now-transferable.aspx">revert the Office 2013 retail products back to the traditional</a>, transferable licensing arrangement.
<blockquote>
<i>Based on customer feedback we have changed the Office 2013 retail license agreement to allow customers to transfer the software from one computer to another. This means customers can transfer Office 2013 to a different computer if their device fails or they get a new one. Previously, customers could only transfer their Office 2013 software to a new device if their PC failed under warranty.</i>
</blockquote>
While it's nice that Microsoft ended up listening to their customers, some folks are noting that these sneaky kinds of licensing attempts <a href="http://www.zdnet.com/microsoft-restores-transfer-rights-for-retail-office-2013-copies-7000012200/?s_cid=e539">are nothing new for the company</a>.
<blockquote>
<i>By the way, if all this seems familiar, it&rsquo;s not your imagination. Microsoft tried a similar tactic with Windows Vista in October 2006. The original license agreement imposed a new limit of one transfer on retail copies of Windows. At the time, I called it <a href="http://www.zdnet.com/blog/bott/a-sneaky-change-in-windows-licensing-terms/156">&ldquo;a sneaky change in Windows licensing terms.&rdquo;</a> After a similar outcry from Microsoft customers (a Microsoft executive acknowledged having received <a href="http://www.zdnet.com/blog/bott/microsoft-changes-vista-license-terms/166">"lots of e-mail and other feedback"</a> on this issue), Microsoft rolled back the changes and <a href="http://www.zdnet.com/blog/bott/microsoft-changes-vista-license-terms/166">restored the original license terms</a> less than a month later.</i>
</blockquote>
This trend should be a lesson to Microsoft, as well as other technology companies. If you want to get customers to adopt a certain product line you have, do it by making that product <i>more </i>valuable, rather than by reducing the value of a competing product.
</p><br /><br /><a href="http://www.techdirt.com/articles/20130306/09195522215/microsoft-just-kidding-you-can-transfer-licenses-your-retail-versions-office.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130306/09195522215/microsoft-just-kidding-you-can-transfer-licenses-your-retail-versions-office.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130306/09195522215/microsoft-just-kidding-you-can-transfer-licenses-your-retail-versions-office.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>the-customer-is-always-right</slash:department>
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<pubDate>Fri, 1 Mar 2013 17:32:15 PST</pubDate>
<title>Could Open Source Software Be Put Into The Public Domain Instead?</title>
<dc:creator>Glyn Moody</dc:creator>
<link>http://www.techdirt.com/articles/20130214/09533121970/could-open-source-software-be-put-into-public-domain-instead.shtml</link>
<guid>http://www.techdirt.com/articles/20130214/09533121970/could-open-source-software-be-put-into-public-domain-instead.shtml</guid>
<description><![CDATA[ <p>There are <a href="http://opensource.org/licenses/alphabetical">dozens of free software and open source licences</a> -- many would argue rather too many. Different licenses impose different conditions.  For example, <a href="http://opensource.org/licenses/GPL-3.0">the best-known and most widely-used is the GNU General Public License</a>, which is designed to ensure that anyone building on GPL'd software and distributing it should make the modified program available under the same license.  Others, such as the <a href="http://opensource.org/licenses/BSD-2-Clause">BSD license</a> simply require the copyright and license notices to be included with any code that is used.
</p><p>
Open source licenses are often described as the "constitutions" for the communities that form around the software they govern.  That would seem to imply that in their absence, alongside other unwanted consequences, the communities would collapse.  A provocative paper by Clark Asay, Assistant Professor at Penn State University Dickinson School of Law, suggests that this isn't the case, and that <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2201066">software could be released into the public domain and yet still thrive as a collaborative project</a>.
</p><p>
He points out that despite its undeniable success -- <a href="http://www.h-online.com/open/features/What-s-the-next-big-platform-for-Linux-1794404.html">free software now dominates many of the most important sectors in computing</a> -- there are transaction costs associated with it.  For companies, these arise from ensuring full compliance with licenses, no mean task if corporate lawyers are unfamiliar with the subtleties of this world.  For programmers who are choosing a free software license for their code, not only is there a bewildering choice, but some of them are mutually incompatible.  This means that code from one project can't always be dropped into another using a different licence, which makes building on open source harder than it should be.
</p><p>
Asay suggests that placing software into the public domain would avoid all these issues, and allow the code to be re-used more widely, with resulting benefits for coders, companies and users alike.  However, he recognizes that there are some important concerns that need addressing.
</p><p>
For example, one of the strengths of licenses like the GNU GPL is that it prevents free riding: if a company takes GPL'd software and uses it in a product that it distributes, it must adopt the GNU GPL and contribute its code back to the original code's community.  If the code were in the public domain, that wouldn't be the case -- it could simply be taken and used without further ado.  But Asay notes that there are good reasons why companies are likely to make their code available anyway:

<i><blockquote>if a firm were to take and close a project, they almost certainly would not obtain the free labor that contributors around the world are willing to provide to open-licensed projects. Without that free labor, firms would lose the most significant advantages of an open model of innovation, and the free labor would likely remain loyal to the open version of the project. Firms thus already have incentives to open and contribute as much of their materials as possible, since doing so will attract free labor and trigger innovation in directions that better suit the firm and its strategic direction.</blockquote></i>

The key point is that the code without the community that creates it is pretty much dead.  A company may gain a short-term advantage in taking public domain code and enclosing it, but by refusing to give back its changes, it loses any chance of collaborating with the coders who are writing the future versions.  It will have no influence, and no way of raising issues of particular concern that help it with its products.  Instead, it will have to keep up the development of its own version of the code single-handed.  That's likely to be costly at best, and may even be impossible except for the very largest companies (Apple is an example of one that has succeeded, <a href="https://support.apple.com/kb/TA25633?viewlocale=en_US">basing its Mac OS X operating system on the free BSD version of Unix</a>.)
</p><p>
That also explains why coding communities will still function, even in the absence of "constitutions".  Anyone who refuses to accept consensus decisions simply becomes isolated if they try to ignore them.  Alternatively, if the community leadership starts to go astray, forks of the code may occur that gain sufficient supporters to become the main line of development.  In other words, the natural collaborative development dynamics produce many of the same results as formal licenses that lay down what norms and behavior are expected.
</p><p>
Asay also tackles the important issue of attribution in a world of public domain software.  Many programmers contribute to free software not for direct economic benefit, but to enhance their reputations, which may translate into financial benefits in the form of a higher salary or job offers.  Asay points out that the current system of providing recognition is unsatisfactory -- often attribution is buried deep in licensing documents that no one ever looks at.  That may explain in part why developer profiles on the popular GitHub code hosting service are becoming more common: it's a way of displaying programming prowess in a form that is easy for peers -- or potential employers -- to access.  As <a href="https://github.com/features/community">the site itself explains</a>:

<i><blockquote>Every developer gets their own profile page that is automatically updated with a stream of the important things they are doing on GitHub and a list of the Open Source projects they are hosting at GitHub. Many developers have started referring to GitHub Profiles as the <b>new r&eacute;sum&eacute;</b>.</blockquote></i>

The use of such pages makes the attribution requirements of software licenses less crucial, and would obviously work fine even if software were released into the public domain.
</p><p>
One problem with Asay's idea is that the state of the public domain today is unsatisfactory.  For example, it is very hard to place works in the public domain -- the <a href="https://creativecommons.org/choose/zero/">Creative Commons CC0</a> is perhaps the most thoroughly worked-out tool for doing so.  As Asay notes, we need legislation to formalize and facilitate this move, and to address issues such as liability.
</p><p>
This difficulty emphasizes how much the public domain has been neglected as copyright maximalists have sought to portray it as an anomalous wasteland that needs to be made "productive" by reclaiming it through copyright  enclosure.  But the public domain is the natural condition of all knowledge -- that which can be shared freely -- while it is copyright and its monopoly that is the deviation from that state.  If nothing else, Asay's proposal may help to bring some much-needed attention to this important but neglected area.
</p><p>
Follow me @glynmoody on <a href="http://twitter.com/glynmoody">Twitter</a> or <a href="http://identi.ca/glynmoody">identi.ca</a>, and on <a href="https://plus.google.com/100647702320088380533">Google+</a></p><br /><br /><a href="http://www.techdirt.com/articles/20130214/09533121970/could-open-source-software-be-put-into-public-domain-instead.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130214/09533121970/could-open-source-software-be-put-into-public-domain-instead.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130214/09533121970/could-open-source-software-be-put-into-public-domain-instead.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>need-to-fix-public-domain-first</slash:department>
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<pubDate>Thu, 31 Jan 2013 00:04:34 PST</pubDate>
<title>VLC Multimedia Player Shows Changing Open Source License Is Hard, But Possible</title>
<dc:creator>Glyn Moody</dc:creator>
<link>http://www.techdirt.com/articles/20130118/08080921723/vlc-multimedia-player-shows-changing-open-source-license-is-hard-possible.shtml</link>
<guid>http://www.techdirt.com/articles/20130118/08080921723/vlc-multimedia-player-shows-changing-open-source-license-is-hard-possible.shtml</guid>
<description><![CDATA[ <p>Licenses lie at the heart of open source -- and many other kinds of "open" too.  That's because they are used to define the rights of users, and to ensure those rights are passed on -- that the intellectual commons is not enclosed.  Their central importance explains in part the flamewars that erupt periodically over which license is "best" -- many people have very strong feelings on the subject.
</p><p>
Those heated discussions are one reason why it's rare for an open source project to change its license -- usually it's just easier to stick with what you've got rather than provoke another argument over <i>which</i> new license should be adopted.  But there's another major impediment to changing the licensing: the need to get absolutely everyone who has contributed code to agree formally.
</p><p>
That's not a problem when the code has been assigned by contributors to a single entity, often a software foundation, as happens with <a href="https://www.gnu.org/licenses/why-assign.html">components</a> of Richard Stallman's GNU (<a href="https://www.gnu.org/">GNU's Not Unix</a>) project.  But the individual copyrights of perhaps the best-known open source code, that of the Linux kernel, have not been assigned in this way.  That makes the prospect of contacting the thousands of people who have contributed code, and getting them to agree to a license change, not just hard, but probably impossible, not least because some of them may be dead.  For this reason (and because Linus Torvalds doesn't want to change it anyway), Linux is likely to remain licensed under the <a href="https://www.gnu.org/licenses/gpl-2.0.html">GNU GPLv2</a> for the foreseeable future.
</p><p>
Another project where the copyright on code contributions has not been assigned to some central body is <a href="http://www.videolan.org/vlc/index.html">the popular multimedia player VLC</a>.   Since this is a major project with many hundreds of contributors, you might think it would be similarly impossible to get all of them to agree to a license change.  And yet, against the odds, VLC has done just that, thanks to the tireless efforts of Jean-Baptiste Kempf.  <a href="http://www.openlogic.com/blog/bid/247623/VLC-License-Change-A-lesson-in-perseverance">A fascinating post explains how he achieved this</a>:

<i><blockquote>The initial license change for libVLC [VLC's main engine] was completed a few months later in December 2011. This involved about 150 developers and 80,000 lines of code. If a developer did not respond to the re-licensing request, that developer's code was rewritten.</blockquote></i>

But sorting out libVLC was easy compared to the rest of the code:

<i><blockquote>Then came the task of contacting the authors of the various plug-ins and modules, focusing on the playback modules first. This was a bit more challenging, involving some 300 developers and 300,000 lines of code. Kempf was kind enough to describe his methods for doing so in a few blog posts. He began with details of how to correctly compile the list of names and email addresses and the measures he took to appropriately narrow that list down to remove dupes, people who had already responded in the first relicensing phase, and so forth. His response rate for the initial emails was only 25%, with 25% bouncing and 50% not responding. This had to be frustrating but not entirely surprising. To deal with the remaining 75%, Kempf employed a variety of methods that could be described as stalking or resolutely resourceful, depending on your perspective; social media, the telephone directory, whois lookups, friends or co-workers, and showing up where they work were all fair game.</blockquote></i>

Impressive stuff, not least because Kempf did manage to get every single person to sign off in the end.  Still, as the post quoted above goes on to note, you might think this is an extremely strong argument for using a contributor's assignment that licenses or assigns copyright to some central organization.  But VideoLAN, the non-profit group that produces VLC, is located in France, which recognizes the creator's "moral rights", introducing a further complication:

<i><blockquote>Moral rights include the right of attribution, integrity, disclosure and withdrawal, and are based on the rationale that there exists a personal and inalienable bond between authors and their work. As such, moral rights cannot be assigned or waived.</blockquote></i>

That means even in the presence of an assignment, authors would still need to give their permission for a license change that would be valid in any country that recognizes moral rights.
</p><p>
The VLC experience confirms that changing a license is not something to be undertaken lightly.  But it also shows that with perseverance it can be done -- once the flamewars have subsided, of course.
</p><p>
Follow me @glynmoody on <a href="http://twitter.com/glynmoody">Twitter</a> or <a href="http://identi.ca/glynmoody">identi.ca</a>, and on <a href="https://plus.google.com/100647702320088380533">Google+</a></p><br /><br /><a href="http://www.techdirt.com/articles/20130118/08080921723/vlc-multimedia-player-shows-changing-open-source-license-is-hard-possible.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130118/08080921723/vlc-multimedia-player-shows-changing-open-source-license-is-hard-possible.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130118/08080921723/vlc-multimedia-player-shows-changing-open-source-license-is-hard-possible.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>easy,-it-isn't</slash:department>
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<pubDate>Wed, 30 Jan 2013 09:38:00 PST</pubDate>
<title>Broken Copyright: Jonathan Coulton Is Actually Infringing Copyright, But Glee Is Not</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130129/16045921819/broken-copyright-jonathan-coulton-is-actually-infringing-copyright-glee-is-not.shtml</link>
<guid>http://www.techdirt.com/articles/20130129/16045921819/broken-copyright-jonathan-coulton-is-actually-infringing-copyright-glee-is-not.shtml</guid>
<description><![CDATA[ Want to know just how messed up our copyright system is, and just how out of sync it is with the way people feel about copyright and what makes sense?  Just know this: between Jonathan Coulton and Fox, concerning the dispute over Fox's <i>Glee</i> <a href="http://www.techdirt.com/articles/20130118/15021521732/jonathan-coulton-publicly-shames-fox-copying-his-arrangement-glee.shtml">using Coulton's rendition</a> of <i>Baby Got Back</i> on their show -- you could make an argument that Coulton may have actually exposed himself to more copyright infringement problems than Fox did.
<br /><br />
Allow me to explain.  When the whole thing first broke, we thought that Coulton took the right approach in basically just telling his fans about it.  Then, when we heard that he <a href="http://www.wired.com/underwire/2013/01/jonathan-coulton-glee-song/" target="_blank">was exploring legal issues with his lawyers</a>, that actually seemed like the wrong approach to take, even if he was upset about things.  According to various reports, right before the show aired, Fox finally reached out to him and explained that what they did was perfectly legal (probably true) and that Coulton should be happy for the exposure.  Coulton's response was quite reasonable -- asking if that meant <a href="http://mashable.com/2013/01/29/jonathan-coulton-fox/" target="_blank">Fox would be crediting him</a>.  Since the answer was no, the promise of exposure rings a bit hollow.
<br /><br />
That said, it's not entirely hollow -- because of Coulton's ability to whip up (completely reasonable) righteous indignation about this from his fans via social media.  As he told Mashable in the link above:
<blockquote><i>
"They were right. I did get exposure, but it didn't come from anything they did. It was sympathetic outrage on Twitter, and bloggers and journalists talking about how crazy it was."
<br /><br />
[....] "Sometimes I forget that Twitter is something beyond just being snarky at the Oscars. All of a sudden something happens and you remember that this is an amazing, powerful tool." Coulton says. "My fans have a keen sense of justice, and this idea that we should be attributed for our work. People who are of the Internet realize that attribution is what we trade on."
</i></blockquote>
And, of course, he's taken it a step further as well, re-releasing his original song on iTunes, but <i>calling it</i> <a href="http://www.jonathancoulton.com/2013/01/26/baby-got-back-glee-style/" target="_blank"><i>Baby Got Back (In the Style of Glee)</i></a> and promising to donate the proceeds to two charities associated with Glee: The VH1 Save the Music Foundation and the It Gets Better Project.  Song sales are doing well, with Coulton's version <a href="http://blog.cunet.com/2013/01/when-social-media-goes-bad-how-an-independent-musician-and-his-minions-outsold-glee1/" target="_blank">climbing the charts</a>, while the official Glee version of the song is riddled with one star reviews from his supportive fans (even though he's not encouraging people to do this) and is nowhere to be found on the charts.
<br /><br />
Still, what strikes me as perhaps most interesting about all of this is that as you <a href="http://madisonian.net/2013/01/28/coulton-glee-and-copyright/" target="_blank">explore the legal issues</a>, it is entirely possible to come out with an argument that says that if anyone is infringing on copyright here... it's Jonathan Coulton.  Let me be clear on this: I am not saying that anyone has directly accused him of this, nor am I suggesting (in any way) that he should be accused of this.  I'm just showing how misaligned the law is with what most people think of as a sensible regime today.  So why might Coulton be in trouble?  As he's noted repeatedly, he paid the compulsory license to cover the song via the Harry Fox Agency.  Doing so means that he <a href="http://www.harryfox.com/songfile/common/samplelicense_physical.pdf" target="_blank">agreed</a> (pdf) to abide by Section 115 of the Copyright Act.
<br /><br />
What's that?  Well, <a href="http://www.law.cornell.edu/uscode/text/17/115" target="_blank">check it out here</a>.  Here's the relevant part for our discussion:
<blockquote><i>
A compulsory license includes the privilege of making a musical arrangement of the work to the extent necessary to conform it to the style or manner of interpretation of the performance involved, but <b>the arrangement shall not change the basic melody or fundamental character of the work</b>, and <b>shall not be subject to protection as a derivative work under this title, except with the express consent of the copyright owner</b>.
</i></blockquote>
Previously, we and many others had suggested that the changes that what Coulton had made could possibly be protected as unique creative works.  However, he more or less gave up that claim when he used the statutory license, rather than doing a direct deal with Sir Mix A Lot, or whoever else holds the rights on the song.  That also means, however, that Coulton did not live up to Section 115 and his cover, in all likelihood, violates the original copyrights, because the license he got does not cover the very different arrangement and melody he created.
<br /><br />
That is, by any normal measure, insane.  But that's the law.  This whole situation has (ridiculously) exposed Jonathan Coulton as a "pirate" and Fox as being perfectly within the law.  And that just seems silly.<br /><br /><a href="http://www.techdirt.com/articles/20130129/16045921819/broken-copyright-jonathan-coulton-is-actually-infringing-copyright-glee-is-not.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130129/16045921819/broken-copyright-jonathan-coulton-is-actually-infringing-copyright-glee-is-not.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130129/16045921819/broken-copyright-jonathan-coulton-is-actually-infringing-copyright-glee-is-not.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>how-messed-up-is-our-system</slash:department>
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</item>
<item>
<pubDate>Fri, 18 Jan 2013 18:31:00 PST</pubDate>
<title>Jonathan Coulton Publicly Shames Fox For Copying His Arrangement In Glee</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130118/15021521732/jonathan-coulton-publicly-shames-fox-copying-his-arrangement-glee.shtml</link>
<guid>http://www.techdirt.com/articles/20130118/15021521732/jonathan-coulton-publicly-shames-fox-copying-his-arrangement-glee.shtml</guid>
<description><![CDATA[ We've talked about <a href="http://www.techdirt.com/blog/?tag=jonathan+coulton">Jonathan Coulton</a> and his embrace of the internet and new business models plenty on Techdirt -- as well as his <a href="http://www.techdirt.com/articles/20120322/02414218194/musician-jonathan-coulton-i-value-internet-lot-more-than-record-industry.shtml">nuanced arguments</a> concerning copyright infringement.  He's not "pro-piracy," but recognizes that the overall growth of the internet that has resulted in more infringement has also created tremendously valuable tools and services that made his music career <i>possible</i>.  Thus, recognizing that the two things go <a href="http://www.techdirt.com/articles/20120121/16551717500/jonathan-coulton-destroys-rationale-behind-megaupload-seizure-with-single-tweet-follows-up-with-epic-blog-post.shtml">hand in hand</a>, he notes that it's better in the long run.  So what does he do when someone infringes on his rights?  Well, he goes public.
<br /><br />
As some have noted, Coulton has <a href="http://www.slate.com/blogs/browbeat/2013/01/18/jonathan_coulton_glee_and_baby_got_back_did_fox_steal_the_arrangement.html" target="_blank">called out Fox for apparently copying his arrangement</a> of Sir Mix-a-Lot's "Baby Got Back" in the TV show <i>Glee</i>.  You can see <a href="http://www.youtube.com/watch?feature=player_embedded&v=MCWaN_Tc5wo" target="_blank">his version</a> here:
<center>
<iframe width="420" height="315" src="http://www.youtube.com/embed/MCWaN_Tc5wo" frameborder="0" allowfullscreen></iframe>
</center>
And then there's the <a href="http://www.youtube.com/watch?feature=player_embedded&v=Yww4BLjReEk" target="_blank">Glee version</a>, which is quite similar, and includes a few of Coulton's own additions:
<center>
<iframe width="560" height="315" src="http://www.youtube.com/embed/Yww4BLjReEk" frameborder="0" allowfullscreen></iframe>
</center>
Yes, his is a cover song, but he introduced some variations that appear to be directly copied in Glee.  Is there a potential copyright claim here?  Well, that depends -- and the copyright law here is complex.  You can cover a song by paying compulsory license fees, and Fox likely did that to whoever holds the copyright on the original.  But they copied specific changes (and possibly the music) that Coulton added, which could potentially be covered by his own copyright (of course, whether or not he registered them could also impact what he could do about it).  And let's not even get into the issue of things like sync licenses for video, and the (still open) question of whether or not Glee actually used part of Coulton's own recording.
<br /><br />
In the end, though, almost none of that probably <i>matters</i>.  Because Coulton seems unlikely (we hope) to go legal here.  Instead, he's just going with the public shame route -- with a simple <a href="https://twitter.com/jonathancoulton/status/292304798999539712" target="_blank">tweet about the situation</a>, which has set off "the internet" to help him make his case and embarrass Fox and Glee.
<blockquote><i>
Internet sleuths immediately went to work on the question, creating <a href="http://youtubedoubler.com/?video1=MCWaN_Tc5wo&start1=0&video2=Yww4BLjReEk&start2=0&authorName=FAV">side-by-side comparisons</a> of the audio (which are <em>very</em> convincing) and even unearthing an official Fox version of the as-yet-unreleased single in the <a href="https://itunes.apple.com/se/album/baby-got-back-glee-cast-version/id592420108">Swedish iTunes store</a>. While the track is not currently available in the American store, gaming blog Kotaku claims that it &#8220;<a href="http://kotaku.com/5977149/glee-egregiously-rips-off-jonathan-coulton">was available earlier and was pulled by Fox</a>.&#8221; Despite calls from Twitter and multiple media organizations, the network has yet to make a statement as of this afternoon, but, all things considered, it&#8217;s looking pretty bad for <em>Glee</em>.
</i></blockquote>
Of course, as a public storm of support rises behind Coulton, it seems likely that Fox/Glee producers will step up, apologize and probably cut Coulton a check of some sort.  All of that seems a lot more efficient -- and it didn't require copyright law at all.  Just a bit of public shaming for a bad actor.  Of course, just imagine if the situation had been reversed, and Coulton was caught making use of a News Corp.-owned song.  In that case, you'd have to imagine that the cease and desist letters and lawyers would have popped up quite quickly....<br /><br /><a href="http://www.techdirt.com/articles/20130118/15021521732/jonathan-coulton-publicly-shames-fox-copying-his-arrangement-glee.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130118/15021521732/jonathan-coulton-publicly-shames-fox-copying-his-arrangement-glee.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130118/15021521732/jonathan-coulton-publicly-shames-fox-copying-his-arrangement-glee.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>social-mores</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130118/15021521732</wfw:commentRss>
</item>
<item>
<pubDate>Thu, 10 Jan 2013 14:31:27 PST</pubDate>
<title>Now That Amazon Is Offering Auto-Rip Of CDs You Bought, Will It Do The Same For Books?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130110/12462521630/now-that-amazon-is-offering-auto-rip-cds-you-bought-will-it-do-same-books.shtml</link>
<guid>http://www.techdirt.com/articles/20130110/12462521630/now-that-amazon-is-offering-auto-rip-cds-you-bought-will-it-do-same-books.shtml</guid>
<description><![CDATA[ Times change.  Amazon is making some news by <a href="http://news.cnet.com/8301-1023_3-57563190-93/amazon-to-launch-auto-rip-an-effort-to-sex-up-cds/" target="_blank">launching an auto-rip service</a> that puts MP3 copies of songs into your Amazon cloud storage when you buy CDs.  Some have been comparing this to the old MP3.com "Beam It!" service that got MP3.com sued out of existence a while back, but this is quite different on one key dimension: Amazon has licensing deals with the major labels which specifically allow this (which also means it doesn't work on all CDs).
<br /><br />
Still, this move does raise some interesting question.  For example: <a href="https://twitter.com/blankbaby/status/289389806637682688" target="_blank">why not do this for books too</a>?  Why not have it so that when you buy a physical book, a digital copy automatically shows up on your Kindle?  Of course, the real answer isn't difficult to glean: because the publishers have no interest at all in doing this (yet).  I expect they'll do it eventually, but the publishers are still going through the same denial phase that many in the recording business went through earlier, and so it's probably still going to be at least a year before some publisher comes around to such a deal (and then it will be announced as "big news" when it happens).
<br /><br />
Another interesting question is whether or not the "AutoRip" service leads to <a href="https://twitter.com/SherwinPK/statuses/289409143104749568" target="_blank">more resells of CDs</a> soon after people buy them.  As Sherwin Siy notes, it may not actually be different than buying a CD and ripping it yourself, but the automated nature of it may make it easier to simply pass on the CD.  Of course, does that mean you're legally supposed to delete the MP3s too?  I'm sure the industry would argue that's the case, but it might not be that clear cut.
<br /><br />
In the end, this really is the kind of thing that the recording industry <i>should have</i> embraced a decade ago, so welcome to the party (a bit late).<br /><br /><a href="http://www.techdirt.com/articles/20130110/12462521630/now-that-amazon-is-offering-auto-rip-cds-you-bought-will-it-do-same-books.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130110/12462521630/now-that-amazon-is-offering-auto-rip-cds-you-bought-will-it-do-same-books.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130110/12462521630/now-that-amazon-is-offering-auto-rip-cds-you-bought-will-it-do-same-books.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>why-not?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130110/12462521630</wfw:commentRss>
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<item>
<pubDate>Tue, 4 Sep 2012 09:15:00 PDT</pubDate>
<title>Why Does Copyright Last 70 Years After Death... But Licenses Expire At Death?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120904/01275120261/why-does-copyright-last-70-years-after-death-licenses-expire-death.shtml</link>
<guid>http://www.techdirt.com/articles/20120904/01275120261/why-does-copyright-last-70-years-after-death-licenses-expire-death.shtml</guid>
<description><![CDATA[ Last week, we were among the group of folks who wrote about some articles highlighting the fact that, when you die, your library of digital goods likely <a href="http://www.techdirt.com/articles/20120828/16191120192/what-happens-to-all-that-digital-goodness-you-have-purchased-after-you-die.shtml">dies with you</a>, thanks to ridiculous licensing terms and DRM (and ignoring unauthorized copies).  Over the weekend, there was a silly -- and quickly proven bogus -- story claiming that Bruce Willis was so incensed by this that he was going to file a lawsuit on the legality of passing down his digital content to his children.  While that story appears to have been a work of fiction by the UK's Daily Mail, it did lead to a great observation by Kevin Marks who <a href="https://twitter.com/kevinmarks/statuses/242892259387912193" target="_blank">compared the lifetime of copyright to the lifetime of the licenses you get</a>:
<blockquote><i>
How is it that copyright lasts 70 years after death, but licenses expire at death?
</i></blockquote>
The simplest answer is that the big legacy entertainment industry players have lobbyists.  And their customers do not.  So we've created a system that massively favors one side over the public -- despite the fact that, if we believe the US Constitution, copyright is supposed to be for the benefit of the public.<br /><br /><a href="http://www.techdirt.com/articles/20120904/01275120261/why-does-copyright-last-70-years-after-death-licenses-expire-death.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120904/01275120261/why-does-copyright-last-70-years-after-death-licenses-expire-death.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120904/01275120261/why-does-copyright-last-70-years-after-death-licenses-expire-death.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>questions-to-ponder</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120904/01275120261</wfw:commentRss>
</item>
<item>
<pubDate>Wed, 1 Aug 2012 22:54:50 PDT</pubDate>
<title>Amazon Reverses Course, Signs Licenses With Music Labels To Allow File Matching</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120801/02530119903/amazon-reverses-course-signs-licenses-with-music-labels-to-allow-file-matching.shtml</link>
<guid>http://www.techdirt.com/articles/20120801/02530119903/amazon-reverses-course-signs-licenses-with-music-labels-to-allow-file-matching.shtml</guid>
<description><![CDATA[ In the spring of 2011, Amazon <a href="http://www.techdirt.com/articles/20110329/02085613669/amazon-launches-digital-music-locker-even-as-legality-is-still-question.shtml">launched</a> its cloud music streaming player to much fanfare, along with questions about its legal status.  Amazon chose not to get licenses from the labels, saying (accurately) that since the service was just to allow individuals to upload and stream their own MP3s, there was no need to get licenses.  While the labels indicated they disagreed with this assessment, none seemed willing to take on the legal fight against Amazon (or Google who initially made a similar choice).  After both Amazon and Google launched their cloud offerings, Apple got attention for not doing a cloud player, but rather a matching and syncing system.  
<br /><br />
Now, Amazon has apparently decided that a similar matching system makes more sense... and has <a href="http://arstechnica.com/gadgets/2012/07/amazon-decides-it-actually-does-need-licenses/" target="_blank">done licensing deals</a> with the four major labels and a bunch of indies.  The end result is that the streaming player is changing significantly.  The free service is greatly limited, and they now want $25/year for more.  If you pay, then it'll now match as many songs as it can on your hard drive with its own database, and automatically populate your account (similar to Apple's system).  Thus, users no longer need to upload all their tracks.
<br /><br />
Basically, Amazon bought a license to allow the matching, and then switched its whole service around to enable that (and to charge people).  It'll be interesting to see how well this works.  $25 isn't much at all, but in the year+ since Amazon's streaming player launched, I honestly can't remember ever hearing anyone mention using it.  I'm sure there are some out there, but it never seemed that successful, so it may be a challenge to get people to pay the $25.  Personally, I played around with Amazon's player a few times, but the storage limit as compared to Google's similar offering meant that I used Google instead.  These days I tend to bounce back and forth between Spotify and Google Music, and can't think of a reason to use Amazon's service instead -- even with the matching.<br /><br /><a href="http://www.techdirt.com/articles/20120801/02530119903/amazon-reverses-course-signs-licenses-with-music-labels-to-allow-file-matching.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120801/02530119903/amazon-reverses-course-signs-licenses-with-music-labels-to-allow-file-matching.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120801/02530119903/amazon-reverses-course-signs-licenses-with-music-labels-to-allow-file-matching.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>matching-offerings</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120801/02530119903</wfw:commentRss>
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<pubDate>Tue, 20 Mar 2012 13:28:34 PDT</pubDate>
<title>How Sony Got Off Easy With Its 'Settlement' In Class Action Lawsuit By Underpaid Artists</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120320/03492318168/how-sony-got-off-easy-with-its-settlement-class-action-lawsuit-underpaid-artists.shtml</link>
<guid>http://www.techdirt.com/articles/20120320/03492318168/how-sony-got-off-easy-with-its-settlement-class-action-lawsuit-underpaid-artists.shtml</guid>
<description><![CDATA[ While Eminem's producers got a ton of attention and a <a href="http://www.techdirt.com/articles/20100903/15093610898.shtml">big ruling</a> noting that the labels had incorrectly accounted for iTunes sales -- leading to some back of the envelope calculations that artists might be <a href="http://www.techdirt.com/articles/20110404/12211913771/record-labels-may-owe-artists-close-to-2-billion-lawsuits-ramp-up-with-rick-james-lead.shtml">owed around $2 billion</a> in unpaid royalties from the major labels -- the very first of these cases (which actually predates the Eminem case) has reached the "settlement" stage, with <a href="http://mediadecoder.blogs.nytimes.com/2012/03/12/digital-notes-sony-offers-8-million-settlement-over-royalties/" target="_blank">Sony Music offering all qualified artists a relatively tiny pool of money to split</a>.  
<br /><br />
The case was originally brought back in 2006 by the Allman Brothers and Cheap Trick -- which we <a href="http://www.techdirt.com/articles/20060428/036245.shtml">wrote about</a> at the time.  Both of those bands eventually settled, but by then the case had turned into a class action lawsuit for other Sony Music artists, with the Youngbloods and Elmo Shropshire (who has been involved in some other <a href="http://www.techdirt.com/articles/20110117/12575712702/this-dmca-notice-got-runover-reindeer.shtml">bizarre copyright lawsuits</a>) taking the place as the named artists in the case.  At issue, of course, is whether or not an iTunes transaction is a sale (tiny royalty payment) or a license (much bigger royalty payment).  However, the settlement seems pretty paltry.  Sony pays out $7.95 million, but as is so often the case in class action lawsuits, <a href="http://www.digitalmusicnews.com/permalink/2012/120314lawyers" target="_blank">the lawyers get $2.65 million</a> of that, leaving $5.3 million for all of the remaining qualified artists.  As Digital Music News explains:
<blockquote><i>
Of that $5.3 million, $5 million is reserved for artists who sold at least 28,500 total downloads on iTunes between the inception of iTunes on January 9, 2001 and December 31, 2010 including current class members Youngbloods and Shropshire.  Qualifying members would split that $5.3 million pro rata to the number of downloads of their records. However, these two artists may ultimately receive a lot less than splitting the $5 million between themselves because any artist who was signed to Epic, Columbia or Arista Records who sold more than 28,500 is eligible to join the class if they entered into agreements dated between January 1, 1976 and December 31, 2001.
<br /><br />
According to a trusted source there may well be over 100 artists would qualify for membership. The balance of the money, only $300,000, is reserved for all Sony artists with fewer than 28,500 total downloads on iTunes.
<br /><br />
The proposed settlement also provides for a prospective 3 percent bump in artists' royalty rates with respect to permanent digital downloads and ringtones sold in the US after January 1, 2011. The 3 percent is against Sony Music Entertainment's gross receipts. This amounts to 3 percent of 70 cents (the amount Sony received for 99 cent downloads) and that is only 2.1 cents. 
</i></blockquote>
It's... something.  But considering how much was being dangled in previous estimates, it sure sounds like Sony may end up getting off on the cheap end if this settlement is completed.  Oh, and in case you were wondering, Sony probably won't even have to pay out a chunk of this money because if any of the artists haven't recouped yet, this money will merely be "credited" towards their accounts.  And considering how the labels aren't exactly known for keeping <a href="http://www.techdirt.com/articles/20091201/1957497156.shtml">the best records</a> as to who's actually recouped, there's plenty of room for Sony to keep the money and just claim it's crediting an account that will never surpass the red line.<br /><br /><a href="http://www.techdirt.com/articles/20120320/03492318168/how-sony-got-off-easy-with-its-settlement-class-action-lawsuit-underpaid-artists.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120320/03492318168/how-sony-got-off-easy-with-its-settlement-class-action-lawsuit-underpaid-artists.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120320/03492318168/how-sony-got-off-easy-with-its-settlement-class-action-lawsuit-underpaid-artists.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>class-actions-in-action</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120320/03492318168</wfw:commentRss>
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<item>
<pubDate>Thu, 8 Mar 2012 06:19:23 PST</pubDate>
<title>UPDATE: Brazilian Performance Rights Agency Demands Blogger Pay $204 A Month To Embed Videos</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20120307/14202118028/brazilian-performance-rights-agency-demands-blogger-pay-204-month-to-embed-videos.shtml</link>
<guid>http://www.techdirt.com/articles/20120307/14202118028/brazilian-performance-rights-agency-demands-blogger-pay-204-month-to-embed-videos.shtml</guid>
<description><![CDATA[ <p>Well, you can never say that performance rights organizations are unwilling to explore every option when attempting to snag a bit more income, ostensibly for their roster artists. American PROs (ASCAP, BMI, etc.) have attempted to collect from <a href="http://www.techdirt.com/articles/20071210/010636.shtml" target="_blank">Girl Scouts</a>, every cell phone owner <a href="http://www.techdirt.com/articles/20090620/1836345299.shtml" target="_blank">with a ringtone</a> and argued that a single person listening to their own music <a href="http://www.techdirt.com/articles/20110506/18425714192/bmi-says-single-person-listening-to-his-own-music-via-cloud-is-public-performance.shtml" target="_blank">via the cloud</a> is a "public performance." British PROs (PRS, mainly) have levied fees against pretty much <a href="http://www.techdirt.com/articles/20090202/0128383597.shtml" target="_blank">any small business</a> that has the audacity to play radios at an audible volume, as well as succeeding in collecting fees for "public performances" from <a href="http://www.techdirt.com/articles/20100319/1105388633.shtml" target="_blank">hotels/motels</a> who provide in-room radios for their guests. SABAM, Belgium's PRO arm, has managed to out-thug the rest of the world's PROs, demanding fees from <a href="http://www.techdirt.com/articles/20110330/22142213704/truck-drivers-told-they-need-to-pay-licensing-fee-to-listen-to-music-while-driving.shtml" target="_blank">truck drivers</a> for listening to the radio in their cabs ("workplace") as well as collecting for bands that <a href="http://www.techdirt.com/articles/20110209/04101413022/belgian-collection-society-sabam-caught-taking-cash-made-up-bands-it-didnt-represent.shtml" target="_blank">don't even exist</a>. <br /><br /> There's a lot of competition out there in the dog-eat-dog world of performance rights double and triple-dipping, but it appears that Brazil's PRO, ECAD (Central Office of Collection and Distribution) is ready to play in the big leagues. Its strategy? <a href="http://moglobo.globo.com/integra.asp?txtUrl=/cultura/ecad-cobra-taxa-mensal-de-blogs-que-utilizam-videos-do-youtube-4233380" target="_blank">Collect royalties from bloggers who embed videos</a>. (As you may recall, ASCAP <a href="http://www.techdirt.com/articles/20090709/0109185492.shtml" target="_blank">tried this</a> a few years back to no avail, but Brazil's relationship with copyright could safely be described as "<a href="http://www.techdirt.com/blog/?tag=brazil" target="_blank">incomprehensibly inconsistent</a>.") <br /><br /> <strike>(The following quotes come from a translated page, so they have been copied verbatim.)</strike> <b>[UPDATE: <a href="http://www.techdirt.com/articles/20120307/14202118028/brazilian-performance-rights-agency-demands-blogger-pay-204-month-to-embed-videos.shtml#c340" target="_blank">Eduardo</a>, the author of the original post, has sent over a better translation of the quotations.) </b>
<blockquote>
<strike><i>The saga of unusual collections of the Central Office of Collection and Distribution (ECAD) has added another chapter last week. The boys from the <a href="http://www.caligraffiti.com.br/por-uma-internet-livre/" target="_blank">blog Caligraffiti</a> received last Tuesday in an email warning that the collecting society would have to pay royalties for videos from YouTube and Vimeo that appeared on the site.</i></strike></blockquote><blockquote><span style="color: #222222; font-family: arial,sans-serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; background-color: rgba(255, 255, 255, 0.918); display: inline ! important; float: none"><i>The saga of unusual collections from the Central Office of Collection and Distribution (ECAD) gained another chapter last week. The boys from the <a href="http://www.caligraffiti.com.br/por-uma-internet-livre/" target="_blank">blog Caligraffiti</a> received last Tuesday an email from the collecting society warning that they would have to pay royalties for videos from YouTube and Vimeo embedded on the site.</i><br /></span></blockquote> This <i>is</i> surprising. ECAD already collects performance royalties from Youtube Brasil for its artists. In fact, it <a href="http://adnews.uol.com.br/en/tecnology/youtube-to-pay-royalties-to-ecad.html" target="_blank">collects <i>quite a bit</i></a> from Youtube.
<blockquote>
<i>YouTube Brasil will have to pay 2.5% of its gross revenue per exhibition of songs protected by Ecad (Bureau of Revenue Distribution) in the country. If the amount of the stipulated percentage does not reach BRL 258,000 (US $146,250) in a year, the site must pay the value as "minimum annual fee".</i>
</blockquote>
 Not only does Youtube Brasil pay a minimum mandatory fee yearly but ECAD has also hit the site with a BRL 645,000 (US $366,000) "subscription fee." The PRO collected roughly BRL 510,000 (US $289,000) in 2011. With Youtube already on the hook for the performance royalties, how does ECAD arrive at the conclusion that embedded video (just a link back to Youtube for all intents and purposes) should subject bloggers to performance royalty payments? <br /><br /> Well, according to ECAD, Youtube is the "transmitter" and of course, has to pay. But blogs embedding videos are "relays" and are <i>also </i>subject to these fees. Basically, ECAD has found a loophole in the existing law and is looking to exploit it. ECAD's spokesman: 
<br /><br />
<b>[UPDATE: Translation via Eduardo, along with this splendid note -- "This second one has a very bad wording in portuguese as well, written by lawyers in their own language."]</b>: 
<blockquote>
<strike><i>The right of public performance in digital mode is through the concept of transmission exists in law and in this art. 5 of section II of Law 9.610/98, which issue is the transmission or dissemination of sounds or sounds and images through of radio waves, satellite signals, wire, cable or other conductor, optical or other electromagnetic process, so this includes the Internet.</i></strike></blockquote><blockquote><i>The rights of public performance in digital media happen through the concept of transmission found in the article 5, section II of the law 9.610/98, in wich transmission or emission are the diffusion of sounds or images through radio waves, satellite signals, wire, cable or other conductor, optical or other electromagnetic process, so this includes the Internet</i>.<br /></blockquote> ECAD also argues that the "transmitter" and the "relay" are completely different forms of use and as such, do not represent "double recovery." This is, roughly translated, complete horseshit. But it gets even worse. Bloggers are being charged a flat-rate based on a designation that ECAD itself decides. The cheapest option, most likely, is to be declared a "non-profit." But even that designation saddles the blog with crippling fees.
<blockquote>
<i>To blog [as] a nonprofit, the amount charged by Ecad is nothing lightweight: <b>R $ 352.59 (US $204) monthly</b>.</i>
</blockquote>
Caligraffiti is a niche blog dedicated to design and technology, with a hit count of 1,000-1,500 hits per day and is not profitable. Every contributor does something other than blogging for income. Despite this, ECAD has designated the blog as a "webcasting or broadcasting program originating from the internet," a category that is sure to increase the amount levied against it. <br /><br /> In response to this collection attempt, Caligraffiti was briefly taken offline. After some legal consultation, the bloggers <a href="http://www.caligraffiti.com.br/por-uma-internet-livre/" target="_blank">decided to re-open and fight ECAD head on</a>, stating that this is clearly an attack on the internet itself, which was built on open sharing and dissemination of information. <br /><br /> ECAD is also sticking to its guns, stating that although it has no collection arm "dedicated" to collecting from bloggers, anyone who "publicly performs music" (read: "embeds video") on their site is subject to these fees. Of course, ECAD isn't doubling up on royalties just to be greedy. Its focus is on "the awareness and enlightenment on the need for payment copyright," without which its covered artists would be "disrespected" by callous bloggers and their embedding code.</p><p>&nbsp;
<br /><br />
<b>Eduardo has also confirmed that ECAD has gone after weddings with DJs for performance royalties (as Ninja <a href="http://www.techdirt.com/articles/20120307/14202118028/brazilian-performance-rights-agency-demands-blogger-pay-204-month-to-embed-videos.shtml#c45">pointed out</a> in the comments) and pointed out that the BRL $359 amounts to roughly half a month's wages at minimum wage. </b></p><br /><br /><a href="http://www.techdirt.com/articles/20120307/14202118028/brazilian-performance-rights-agency-demands-blogger-pay-204-month-to-embed-videos.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120307/14202118028/brazilian-performance-rights-agency-demands-blogger-pay-204-month-to-embed-videos.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120307/14202118028/brazilian-performance-rights-agency-demands-blogger-pay-204-month-to-embed-videos.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>you-can-only-take-my-money-for-so-long-before-you-take-it-all</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120307/14202118028</wfw:commentRss>
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<pubDate>Fri, 24 Feb 2012 08:49:05 PST</pubDate>
<title>Did Universal Music Try To Expense The Costs Of Eminem's Producers Suing Over Unpaid Royalties... Back To Eminem's Producers?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120223/14091117852/did-universal-music-try-to-expense-costs-eminems-producers-suing-over-unpaid-royalties-back-to-eminems-producers.shtml</link>
<guid>http://www.techdirt.com/articles/20120223/14091117852/did-universal-music-try-to-expense-costs-eminems-producers-suing-over-unpaid-royalties-back-to-eminems-producers.shtml</guid>
<description><![CDATA[ We were just discussing some of the details from Kenny Rogers' lawsuit against EMI/Capitol Records which showed the many, many ways in which record labels <a href="http://www.techdirt.com/articles/20120220/04491417812/kenny-rogers-lawsuit-shows-many-ways-that-major-label-screws-artists-even-big-ones.shtml">avoided paying artists</a> what they were owed... and now some more details have leaked in the very similar (but further along) case concerning Eminem's royalties.  You may recall that, back in 2010, Eminem's producers, FBT Productions, <a href="http://www.techdirt.com/articles/20100903/15093610898.shtml">won</a> its case against Universal Music, for the first time establishing that iTunes sales should be counted as <i>licenses</i> rather than <i>sales</i>.  This was important, because sales get a royalty rate that's usually around 15%... but licenses get a royalty rate around 50%.
<br /><br />
While Universal Music insisted that its deal with Eminem was unique and such a ruling wouldn't apply to most other artists, plenty of other artists have been suing their labels (like Kenny Rogers above), and estimates of <a href="http://www.techdirt.com/articles/20110404/12211913771/record-labels-may-owe-artists-close-to-2-billion-lawsuits-ramp-up-with-rick-james-lead.shtml">upwards of $2 billion</a> in back royalties that the labels may have to pay out.
<br /><br />
The Eminem case is back at the district court as they try to sort out just how much FBT is owed, and Eriq Gardner, over at THResq, <a href="http://www.hollywoodreporter.com/thr-esq/eminem-royalty-lawsuit-aftermath-records-fbt-productions-293881" target="_blank">got his hands on one of the audit reports</a> put together by an expert for FBT.  It only shows a limited range of years (July 2005 to December 31, 2009), but also shows (similar to the Rogers lawsuit) how the report turns up all sorts of other areas where Universal likely underpaid FBT.
<center>
<a href="http://imgur.com/nB7AN"><img src="http://i.imgur.com/nB7AN.jpg" alt="" title="Hosted by imgur.com" /></a>
</center>
As you can see, the audit shows $3.8 million owed for the missing royalties from iTunes downloads.  But also of interest?  FBT claims that it never received a cut of the YouTube settlement money -- which many people had been wondering if it was <a href="http://www.techdirt.com/articles/20110519/10041714342/major-labels-shamed-into-promising-to-give-some-105-million-limewire-settlement-to-artists.shtml">ever</a> going to go to the artists.  Apparently not.  
<br /><br />
However, the most insane thing here may be the line at the bottom, in which it appears that Universal held back $2 million in a "legal hold."  Gardner notes that this is money held back <i>to pay for this very lawsuit</i>.  This is classic record label economics.  Everything that you do that costs money, they charge against the artists' royalties.  Order pizza at the recording studio?  They charge that against your (small) cut of the royalties.  Want to do extra promotions?  Charge it against the royalties.
<br /><br />
And... apparently, sue Universal music for withholding millions in royalties?  It looks like they'll charge <i>that</i> against your royalties too...<br /><br /><a href="http://www.techdirt.com/articles/20120223/14091117852/did-universal-music-try-to-expense-costs-eminems-producers-suing-over-unpaid-royalties-back-to-eminems-producers.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120223/14091117852/did-universal-music-try-to-expense-costs-eminems-producers-suing-over-unpaid-royalties-back-to-eminems-producers.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120223/14091117852/did-universal-music-try-to-expense-costs-eminems-producers-suing-over-unpaid-royalties-back-to-eminems-producers.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>and-again-and-again</slash:department>
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<pubDate>Fri, 10 Feb 2012 11:36:00 PST</pubDate>
<title>Schr&#246;dinger's Download: Whether Or Not An iTunes Music Sale Is A 'Sale' Depends On Who's Suing</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120210/03230217727/schrdingers-download-whether-not-itunes-music-sale-is-sale-depends-whos-suing.shtml</link>
<guid>http://www.techdirt.com/articles/20120210/03230217727/schrdingers-download-whether-not-itunes-music-sale-is-sale-depends-whos-suing.shtml</guid>
<description><![CDATA[ Steve Worona has a great post pointing out how the record labels have clear cognitive dissonance (the ability to hold two totally conflicting ideas in your head at the same time -- and argue for both of them) when it comes to <a href="http://slworona.wordpress.com/2012/02/09/cognitive-dissonance-in-the-music-business/" target="_blank">the question of whether or not an iTunes purchase represents a "sale."</a>  He puts forth three examples of such cognitive dissonance in the legal context, with the final one being taken from two recent legal cases involving major record labels:
<blockquote><i>
<p><strong>Example 1, the case of the kettle.</strong> As <a title="Kettle Case" href="http://www.manhattan-institute.org/html/research_memorandum_4.htm" target="_blank">summarized</a> by the <a title="Manhattan Institute" href="http://www.manhattan-institute.org/index.htm" target="_blank">Manhattan Institute for Policy Research</a>, &#8220;Readers who&#8217;ve been to law school may remember the chestnut known as the &#8216;Case of the Kettle&#8217;. A man is charged with borrowing a kettle and breaking it. His reply is that, first, he never borrowed it; second, it was already broken when he borrowed it; third, it was intact when he returned it.&#8221;</p>
<p><strong>Example 2, the case of the dog.</strong> Paraphrasing from a <a title="WSJ" href="http://www.excaliburautomobile.com/Image/Circle&amp;Sword/Vol3/page5.htm" target="_blank">1978 <em>Wall Street Journal</em> article</a> about well-known Texas defense attorney <a title="Wikipedia" href="http://en.wikipedia.org/wiki/Richard_Haynes" target="_blank">Richard &#8220;Racehorse&#8221; Haynes</a>: You say my dog bit you, but I don&#8217;t own a dog, and he doesn&#8217;t bite, and you kicked him first.</p>
<p><strong>Example 3, digital downloads.</strong> Two recent court cases hinge on how the sale of an MP3 download compares to the sale of a conventional physical recording, known as a &#8220;phonorecord&#8221; in Copyright-speak. In one case, the singer <a title="Billboard" href="http://www.billboard.biz/bbbiz/others/will-supreme-court-hear-eminem-royalties-1004134697.story" target="_blank">Eminem demanded</a> that Universal Music Group calculate his royalties for downloads based on the higher rate for licensed material instead of the lower rate for phonorecord sales. UMG refused, arguing that the sale of an MP3 download was the same as a phonorecord sale. In the second case, <a title="Greg Sandoval in CNet" href="http://news.cnet.com/8301-31001_3-57354089-261/emi-sues-mp3-reseller-redigi" target="_blank">EMI filed suit</a> against ReDigi, a company that allows purchasers of MP3 downloads to resell those files under Copyright law&#8217;s &#8220;first sale&#8221; doctrine. EMI argued that the MP3 files were not phonorecords and thus not subject to first sale.</p>
</i></blockquote>
What's being discussed here, of course, are two cases that we've covered.  The <a href="http://www.techdirt.com/articles/20100903/15093610898.shtml" target="_blank">Eminem case</a> involved whether or not an iTunes purchase counted as a "sale" like a CD, where there was a very low royalty rate (probably around 15%), or as a "license" like for a movie, where the royalty rate was more like 50%.  Universal argued stringently, and continues to argue in a series of follow-up cases, that an iTunes purchase is just like a CD purchase, and the much lower rates apply.  However, in the <a href="http://www.techdirt.com/articles/20120208/04324417700/judge-denies-injunction-against-mp3-reseller-due-to-lack-irreparable-harm-says-emis-arguments-compelling.shtml">ReDigi</a> case -- where the company is trying to argue that if an iTunes purchase is just like a sale, then clearly the "first sale doctrine" applies and those files can be resold -- EMI, which is in the process of being acquired by Universal, argues that an iTunes sale is a license, and thus there's no first sale.
<br /><br />
Worona sums it up beautifully:
<blockquote><i>
Putting these two arguments together, we see the music industry imagining transactions where what&#8217;s sold is a phonorecord but what&#8217;s purchased isn&#8217;t.
</i></blockquote>
To me this seems like the Schr&ouml;dinger's Cat of copyright law.  According to the record labels, if we're talking about it from the seller's perspective, it's a sale.  But the second you flip the equation and look at it from the buyer's perspective, it's a license.  The cat is simultaneously dead and alive.  Either the major labels are full of it... or they're breaking new ground in quantum physics.  I'll assume it's the former, rather than the latter.<br /><br /><a href="http://www.techdirt.com/articles/20120210/03230217727/schrdingers-download-whether-not-itunes-music-sale-is-sale-depends-whos-suing.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120210/03230217727/schrdingers-download-whether-not-itunes-music-sale-is-sale-depends-whos-suing.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120210/03230217727/schrdingers-download-whether-not-itunes-music-sale-is-sale-depends-whos-suing.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>that-cat-is-dead</slash:department>
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<pubDate>Tue, 15 Nov 2011 08:44:43 PST</pubDate>
<title>Warner Bros. Wants You To 'Buy' Movies Instead Of Rent... And By 'Buy' It Means Spend More To Still 'Rent'</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20111114/03182816760/warner-bros-wants-you-to-buy-movies-instead-rent-buy-it-means-spend-more-to-still-rent.shtml</link>
<guid>http://www.techdirt.com/articles/20111114/03182816760/warner-bros-wants-you-to-buy-movies-instead-rent-buy-it-means-spend-more-to-still-rent.shtml</guid>
<description><![CDATA[ We pointed out that the early reviews of Hollywood's new UltraViolet DRM <a href="http://www.techdirt.com/articles/20111021/12064316454/hollywoods-kinder-gentler-drm-ultraviolet-getting-slammed-reviews.shtml">aren't particularly good</a>, but the industry is still pushing forward with the idea.  Leading the way is Warner Bros., who is trying to turn the movie-based "social network" it bought a few months ago, Flixster, into the central hub for your movies.  The NY Times has an article about it, where it repeatedly claims that the strategy <a href="http://www.nytimes.com/2011/11/12/business/media/with-flixster-studios-bet-consumers-will-buy-movies-again.html?_r=1&pagewanted=all" target="_blank">is all about trying to get people to "buy" movies again</a>, rather than just rent them via Netflix of Redbox.  Of course, I find this pretty funny, because <i>nothing</i> about UltraViolet is about actually "buying" anything.  You're still renting -- and if things ever went to court over, say, your first sale rights to resell a movie you "purchased" using UltraViolet, you can bet that Warner Bros. would be first in line to claim that the license shows you're merely renting the movie, and not buying it.  It's just that you're renting it on an open-ended timeline, basically until the studios bail on UltraViolet and shut down the servers.
<br /><br />
Rob Pegoraro, in commenting on the article, notes that oddly, <a href="https://twitter.com/#!/robpegoraro/status/135788086910132224" target="_blank">the article doesn't even mention DRM</a> in talking about why people don't want to buy from the studios or the fact that it's still much more convenient to get the content by unauthorized means.  But that concept still hasn't reached the brain trust at Warner Bros., who seems to insist that as long as you can access the movies you "bought" from anywhere, people will prefer that to file sharing.  While it's great that they're at least <i>trying</i> to add benefits, to make it more valuable and worth paying for, the whole thing smacks of someone's father trying to "act cool" for his kids' friends.  Warner Bros. still doesn't seem to understand <i>why</i> people like things like Netflix: the convenience.  Everything about Ultraviolet sounds inconvenient, and that hardly makes anyone want to "buy."<br /><br /><a href="http://www.techdirt.com/articles/20111114/03182816760/warner-bros-wants-you-to-buy-movies-instead-rent-buy-it-means-spend-more-to-still-rent.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20111114/03182816760/warner-bros-wants-you-to-buy-movies-instead-rent-buy-it-means-spend-more-to-still-rent.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20111114/03182816760/warner-bros-wants-you-to-buy-movies-instead-rent-buy-it-means-spend-more-to-still-rent.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>that's-not-buying</slash:department>
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<pubDate>Wed, 20 Jul 2011 06:13:00 PDT</pubDate>
<title>Labels Finally Realize It's Better To License Music To Baidu Than To Fight It</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110719/03523815163/labels-finally-realize-its-better-to-license-music-to-baidu-than-to-fight-it.shtml</link>
<guid>http://www.techdirt.com/articles/20110719/03523815163/labels-finally-realize-its-better-to-license-music-to-baidu-than-to-fight-it.shtml</guid>
<description><![CDATA[ We've been following the record labels fight with Chinese search engine giant Baidu since it began <a href="http://www.techdirt.com/articles/20050803/0325211.shtml">in 2005</a>.  The labels kept claiming that Baidu was infringing on their copyrights by helping people find music.  And while there were some questions about just how deeply involved Baidu was (including accusations that it didn't just link to mp3s, but may have <a href="http://www.techdirt.com/articles/20080915/0150502269.shtml">hosted</a> them knowingly as well), the company kept <a href="http://www.techdirt.com/articles/20100126/0659047896.shtml">winning</a> in court.
<br /><br />
It appears that three of the big four record labels have finally realized, six years later, that rather than continuing to fight this fight, it's better to license the music and be done with it.  An organization representing Universal Music, Sony Music and Warner Music <a href="http://news.cnet.com/8301-1023_3-20080580-93/baidu-signs-distribution-deal-with-music-labels/?part=rss&#038;subj=news&#038;tag=2547-1_3-0-20&#038;dlvrit=142337" target="_blank">has agreed to license their music to Baidu</a>, who will make it available as a part of a licensed service.  It'll be interesting to see if there are any crazy restrictions on this, but kudos to those three record labels for finally (way too late) realizing that this was always a business model issue, not a legal problem.<br /><br /><a href="http://www.techdirt.com/articles/20110719/03523815163/labels-finally-realize-its-better-to-license-music-to-baidu-than-to-fight-it.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110719/03523815163/labels-finally-realize-its-better-to-license-music-to-baidu-than-to-fight-it.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110719/03523815163/labels-finally-realize-its-better-to-license-music-to-baidu-than-to-fight-it.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>took-'em-long-enough</slash:department>
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<pubDate>Mon, 11 Jul 2011 14:11:00 PDT</pubDate>
<title>It's The Experience That Makes Music Valuable; Not The Legal Rights</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110709/01001515031/its-experience-that-makes-music-valuable-not-legal-rights.shtml</link>
<guid>http://www.techdirt.com/articles/20110709/01001515031/its-experience-that-makes-music-valuable-not-legal-rights.shtml</guid>
<description><![CDATA[ Ethan Kaplan strikes again.  The always-thoughtful (and thought-provoking) former recording industry tech exec has put up a blog post that not only explains why Turntable.fm is so popular, but also <a href="http://www.blackrimglasses.com/2011/07/08/experiential-rights/" target="_blank">reframes why the record labels have failed to embrace almost every cool new internet service</a>.  You should read the whole thing, but the short version is that <i>users care about the experience, the big labels care about the legal rights</i>.  And it's really the <i>experience</i> that makes things valuable.  But, if you (like the labels) have bet on the licenses, rather than the experience, then any time someone else makes the experience more valuable, all it does is highlight just how little value there really is in the licenses.
<blockquote><i>
Value in the music business though is an odd thing: the more value added to the music by the fan directly, the less influence the rights holders have over it, and the more influence the creators of representational systems (i.e., turntable.fm) and rights creators have (i.e., artists going directly on turntable.fm with stuff that their labels don&rsquo;t own). And rights holders do not like being taken out of the value equation.
<br /><br />
Call it Kaplan&rsquo;s Law: the more value a non-music company adds to the fan/artist relationship, the bigger the threat to those who&rsquo;s business depends on being between the two.
</i></blockquote>
To some extent, this is a (better) rephrasing of a point I tried to make a few years ago, that those who focus on "copyright" as the key to success in any industry are <a href="http://www.techdirt.com/articles/20071219/182230.shtml">using copyright as a crutch</a>.  Rather than building real value and business models that users want, they're using this crutch which provides a <i>simple</i> business model.  It makes them lazy, uncreative, uninterested in <i>real</i> user value -- and violently against any sort of innovation that increases value while diminishing the importance of that crutch.
<br /><br />
The really interesting points are when you remove that crutch and realize that for a business model to work, it has to provide real value that <i>willingly</i> brings users in.  Until the music industry figures this out, they're going to continue to miss the boat on important innovation on both the product side and the business model side.
<br /><br />
But artists don't have to miss that boat.  As Kaplan suggests, now is the time to focus on the "experience rights," not the "legal rights":
<blockquote><i>
To artists: own your experiential rights. Participate in technology and hold your representatives (lawyers, labels and management companies) to the standards you want your content held to once you lose control of it.
</i></blockquote><br /><br /><a href="http://www.techdirt.com/articles/20110709/01001515031/its-experience-that-makes-music-valuable-not-legal-rights.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110709/01001515031/its-experience-that-makes-music-valuable-not-legal-rights.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110709/01001515031/its-experience-that-makes-music-valuable-not-legal-rights.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>proving-the-point</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110709/01001515031</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 11 Jul 2011 08:59:17 PDT</pubDate>
<title>Patents As Theft: How Oracle &#038; Microsoft Seek To Profit From Android Despite Having Nothing To Do With It</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/wireless/articles/20110708/16213815026/patents-as-theft-how-oracle-microsoft-seek-to-profit-android-despite-having-nothing-to-do-with-it.shtml</link>
<guid>http://www.techdirt.com/blog/wireless/articles/20110708/16213815026/patents-as-theft-how-oracle-microsoft-seek-to-profit-android-despite-having-nothing-to-do-with-it.shtml</guid>
<description><![CDATA[ People talk about patent laws as if they're about "protecting property."  If only that were true.  In most cases, they seem to be about the exact opposite.  They're about getting paid for things that don't belong to you and which you had absolutely nothing to do with.  Take, for example, Google's Android operating system.  Microsoft has been using its patents to <a href="http://seattletimes.nwsource.com/html/microsoftpri0/2015546538_is_android_microsofts_next_cash_cow.html">demand a cut</a> of every Android phone.  In fact, people have pointed out that Microsoft is likely going to make more money from Android than it makes from its own competing mobile operating system.  Now add to that Oracle's decision to <a href="http://www.networkworld.com/news/2011/070711-oracle-win-would-strain-android.html" target="_blank">demand $15 to $20 for every Android device</a>, and what you get seems like highway robbery.  You have two companies -- Oracle and Microsoft -- who have done absolutely nothing to contribute to Android in any way, but who are both using large questionable patent portfolios to demand a cut.  That's not protecting or encouraging innovation.  That seems like the exact opposite.  It seems to be shaking down people for cash that they have no right to.  I'd argue that's much more like "theft" than anyone who infringes on a patent by building something the market wants.<br /><br /><a href="http://www.techdirt.com/blog/wireless/articles/20110708/16213815026/patents-as-theft-how-oracle-microsoft-seek-to-profit-android-despite-having-nothing-to-do-with-it.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20110708/16213815026/patents-as-theft-how-oracle-microsoft-seek-to-profit-android-despite-having-nothing-to-do-with-it.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20110708/16213815026/patents-as-theft-how-oracle-microsoft-seek-to-profit-android-despite-having-nothing-to-do-with-it.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>shameful</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110708/16213815026</wfw:commentRss>
</item>
<item>
<pubDate>Tue, 31 May 2011 09:37:48 PDT</pubDate>
<title>With A Choice Between $100 Million In Cash &#038; Fantasyland, The Labels Choose Fantasyland</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110527/10275314458/with-choice-between-100-million-cash-fantasyland-labels-choose-fantasyland.shtml</link>
<guid>http://www.techdirt.com/articles/20110527/10275314458/with-choice-between-100-million-cash-fantasyland-labels-choose-fantasyland.shtml</guid>
<description><![CDATA[ I keep having the same conversation over and over again with people in the recording industry.  A few days ago, I met with the head of a record label that is doing all sorts of cool and innovative experiments (both on the business model and with technology) and he still kept saying "but we gotta stop people from stealing."  The problem, as always, is that they seem so focused on infringement that they miss the bigger picture:  What does it actually mean for revenue?  These are two separate questions, and the labels seem to prioritize the wrong one.  They want to stomp out infringement at any cost, even if the net benefit is minimal.  
<br /><br />
If record labels were given a choice whereby they could support a new revenue stream that would bring in, say, $100 million without them having to do anything... vs. getting no such revenue and playing whac-a-mole with a few more "pirate sites," just making them move elsewhere and not actually get anyone to buy anything, they'd have to be crazy to not go with the $100 million option.
<br /><br />
It appears they're crazy.
<br /><br />
Google was clear, when it launched its Google Music, that it wanted to do much, much more, but that the things it wanted to do required licenses from the labels.  However, the terms the labels offered were <a href="http://www.techdirt.com/articles/20110510/10442414228/google-major-labels-got-way-cool-features-google-music.shtml">completely unacceptable</a>.  Now it's being reported that <a href="http://news.cnet.com/8301-31001_3-20066799-261.html?part=rss&#038;subj=news&#038;tag=2547-1_3-0-20&#038;dlvrit=142337" target="_blank">Google offered $100 million to the labels</a>, and a key sticking point was that the labels wanted Google to wave a magic wand, figure out who was "pirating" music, and stop it.  In other words, $100 million vs. Fantasyland.  And the labels went with Fantasyland.<br /><br /><a href="http://www.techdirt.com/articles/20110527/10275314458/with-choice-between-100-million-cash-fantasyland-labels-choose-fantasyland.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110527/10275314458/with-choice-between-100-million-cash-fantasyland-labels-choose-fantasyland.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110527/10275314458/with-choice-between-100-million-cash-fantasyland-labels-choose-fantasyland.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>revenue-vs.-piracy</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110527/10275314458</wfw:commentRss>
</item>
<item>
<pubDate>Tue, 31 May 2011 07:20:48 PDT</pubDate>
<title>EMI Exec Thinks You Shouldn't Be Able To Listen To Your Own Music Without Paying Again</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110527/10555014459/emi-exec-thinks-you-shouldnt-be-able-to-listen-to-your-own-music-without-paying-again.shtml</link>
<guid>http://www.techdirt.com/articles/20110527/10555014459/emi-exec-thinks-you-shouldnt-be-able-to-listen-to-your-own-music-without-paying-again.shtml</guid>
<description><![CDATA[ Via <a href="https://twitter.com/#!/glynmoody/statuses/74146197849391104" target="_blank">Glyn Moody</a>, we get this bizarre story, which demonstrates how some "new media" execs at the major labels don't seem to understand "new media."  A few weeks back, Michael Robertson had revealed the ridiculous <a href="http://www.techdirt.com/articles/20110429/02370814079/ridiculous-demands-record-labels-want-music-lockers.shtml">demands</a> that the major labels were making on anyone who wanted to license content for a cloud music player.  Most of the demands made absolutely no sense and represented an ignorance of the technology involved.  Remember, these services are about people uploading music they already have so that they can listen to it elsewhere.  It's not about sharing music at all.  Yet the labels, in their ultimate paranoia, continue to insist it is.  Wayne Borean posted a link to Robertson's story on the astroturfing "Balanced Copyright" page, that is a front for the major record labels.  Jeff Thistle, who is the "Director of New Media" for EMI Canada <a href="https://www.facebook.com/balancedcopyright/posts/171751132879171" target="_blank">responded</a> (also <a href="http://madhatter.ca/2011/05/27/the-major-labels-think-that-they-own-the-independent-artists-do-they/" target="_blank">mirrored here</a>), saying that these demands were "all reasonable."  When Borean challenged him on this, Thistle replied:
<blockquote><i>
What measures do you propose be put in place to prevent the uploading of major label owned content? I can't speak to the mechanism to determine what an annual fee would be (presumably it would be by percentage of catalogue * number of lockers that the content resides in), but asking that controls be put in place to prevent the service from becoming another illegal sharing vehicle is *very* reasonable.
</i></blockquote>
How does that make any sense at all?  Why should anyone, who has a legal and authorized copy of major label content, be prevented from storing it online to listen to it remotely?  And most of these digital lockers don't allow downloads and are only for the one user who uploaded their own music.  The claim that these will become "another illegal sharing vehicle" is a total red herring.  So they make up a red herring and pretend they're doing this to "protect" that which doesn't need protecting... when the reality is that they're just trying to force people to pay over and over and over again for music they already paid for.<br /><br /><a href="http://www.techdirt.com/articles/20110527/10555014459/emi-exec-thinks-you-shouldnt-be-able-to-listen-to-your-own-music-without-paying-again.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110527/10555014459/emi-exec-thinks-you-shouldnt-be-able-to-listen-to-your-own-music-without-paying-again.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110527/10555014459/emi-exec-thinks-you-shouldnt-be-able-to-listen-to-your-own-music-without-paying-again.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>no-wonder-they're-confused</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110527/10555014459</wfw:commentRss>
</item>
<item>
<pubDate>Tue, 10 May 2011 12:07:00 PDT</pubDate>
<title>Google: Major Labels Got In The Way Of Cool Features In Google Music</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110510/10442414228/google-major-labels-got-way-cool-features-google-music.shtml</link>
<guid>http://www.techdirt.com/articles/20110510/10442414228/google-major-labels-got-way-cool-features-google-music.shtml</guid>
<description><![CDATA[ Earlier this morning, we wrote about the expectation that Google would be <a href="http://www.techdirt.com/articles/20110510/00592614223/google-follows-amazons-lead-launching-music-locker-ignoring-riaa-demands-licenses.shtml">launching a music locker</a> without first getting licenses from the labels.  That's now been confirmed and officially launched (though, still limited to US users by invitation only, but it sounds like that will be expanded rapidly).  I'm at the conference where Google announced this, and there's a fair bit of discussion about the legality of the service.  At the press briefing afterwards, Google was clear: it was the major labels who responded with "unreasonable and unsustainable terms."   They also noted that if they had abided by the terms offered by the labels, they would be offering a service that wasn't compelling.  Other reports note that Google really wanted to offer some <a href="http://evolver.fm/2011/05/10/google-says-record-labels-blocked-google-music-features/" target="_blank">more innovative features</a>, such as letting users "beam" music to their account by showing they had copies of it, without uploading it.  At the press briefing, Google effectively admitted this by saying that it <i>could</i> enable that feature "with proper agreements."  Separately, Google made it clear that, although the major labels were the issue, the indie labels and artists they spoke to directly were all excited about the offering.  Indeed, the offering itself does appear to be a lot slicker than Amazon's music locker service, which is a bit surprising.  I was expecting, in typical Google fashion, that it would appear pretty barebones, but instead it looks fairly advanced.
<br /><br />
Separately, in another question concerning how Google would deal with the fact that some people will certainly upload tracks that were obtained through unauthorized means, Google first pointed out that the terms require people to only upload lawfully acquired music... but then also claimed that it would "respond appropriately to rightsholders who believe their rights were violated."  That seems like a strange statement.  I imagine it means the company will follow through on takedown requests... but how would the rightsholder ever know?  If this is a private music locker, then the only person who should have access is the user.  I'm kind of wondering if that statement was made just to make a "we're legal!" statement, without recognizing that such a situation doesn't seem to make much sense.
<br /><br />
The whole major label situation is yet another example of fear driving the record labels, rather than opportunity and innovation.  Again, these music lockers are really just a way to make the consumers' music experience better.  It's an opportunity to make the music more valuable and to open up more opportunities for copyright holders to make money, but rather than embracing it, the labels make ridiculous demands to try to clamp down on the usefulness.  So, instead, the industry moves forward <i>in spite</i> of their complaints, rather than with the majors.<br /><br /><a href="http://www.techdirt.com/articles/20110510/10442414228/google-major-labels-got-way-cool-features-google-music.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110510/10442414228/google-major-labels-got-way-cool-features-google-music.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110510/10442414228/google-major-labels-got-way-cool-features-google-music.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>anti-innovation</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110510/10442414228</wfw:commentRss>
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<item>
<pubDate>Tue, 10 May 2011 07:06:36 PDT</pubDate>
<title>Google Follows Amazon's Lead: Launching Music Locker, But Ignoring RIAA Demands For Licenses</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110510/00592614223/google-follows-amazons-lead-launching-music-locker-ignoring-riaa-demands-licenses.shtml</link>
<guid>http://www.techdirt.com/articles/20110510/00592614223/google-follows-amazons-lead-launching-music-locker-ignoring-riaa-demands-licenses.shtml</guid>
<description><![CDATA[ After Amazon launched its music locker without first getting licenses from the record labels, there were rumors that <a href="http://www.techdirt.com/articles/20110412/12450913873/amazon-insists-no-licenses-needed-cloud-player-google-thinking-skipping-licenses-as-well.shtml">Google might do the same</a>.  Google had been negotiating with the labels, but (not at all surprisingly) found that the labels were making ridiculous demands (lots of money and <a href="http://www.techdirt.com/articles/20110429/02370814079/ridiculous-demands-record-labels-want-music-lockers.shtml">crazy restrictions</a> that would handicap the service).  It appears that the folks at Google are realizing what Amazon figured out a while ago: there doesn't appear to be any licensing needed to run a music locker service.  After all, you don't need a license to listen to your own music stored on your own hard drive.  Why should it be any different if that hard drive is connected to you via the internet?
<br /><br />
So it should come as little surprise that <a href="http://mediamemo.allthingsd.com/20110509/google-launching-its-cloud-service-tomorrow-without-big-musics-approval/" target="_blank">Google is, indeed, moving forward with its music locker launch</a>, and doing so without label approval.  It sounds like the offering will be similar to Amazon's, but with (significantly) more free storage.
<br /><br />
The real question is how the labels will react.  With Amazon, there was definitely some complaining and fretting and talk about how "something" had to be done, but none of the labels seemed willing to step up and sue.  But with Google entering the market as well, and Apple likely to follow soon as well, you have to think that some label is going to take a flier on a lawsuit just to register the protest.  Of course, in the meantime, I imagine everyone will be continuing to pay attention to the one current lawsuit in this space: EMI's suit against MP3Tunes, for which we should (finally?) be hearing some sort of decision before too long.<br /><br /><a href="http://www.techdirt.com/articles/20110510/00592614223/google-follows-amazons-lead-launching-music-locker-ignoring-riaa-demands-licenses.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110510/00592614223/google-follows-amazons-lead-launching-music-locker-ignoring-riaa-demands-licenses.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110510/00592614223/google-follows-amazons-lead-launching-music-locker-ignoring-riaa-demands-licenses.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>good-move</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110510/00592614223</wfw:commentRss>
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<pubDate>Fri, 29 Apr 2011 11:29:47 PDT</pubDate>
<title>The Ridiculous Demands The Record Labels Want For Music Lockers</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110429/02370814079/ridiculous-demands-record-labels-want-music-lockers.shtml</link>
<guid>http://www.techdirt.com/articles/20110429/02370814079/ridiculous-demands-record-labels-want-music-lockers.shtml</guid>
<description><![CDATA[ As there's been lots of talk lately about music lockers and whether or not they <a href="http://www.techdirt.com/articles/20110412/12450913873/amazon-insists-no-licenses-needed-cloud-player-google-thinking-skipping-licenses-as-well.shtml">need to get licenses</a>, it's great to see Michael Robertson, who runs the music locker MP3Tunes, provide a little background on <a href="http://techcrunch.com/2011/04/29/behind-the-scenes-record-labels-demands-from-amazon/" target="_blank">just a few of the ridiculous demands from the record labels</a> when it comes to music lockers.  Remember, again, that music lockers are all about people taking the music that they already have, placing it on a different hard drive (a remote hard drive) and being able to stream (or possibly download) it.  There's a very strong argument (and one that Robertson is <a href="http://www.techdirt.com/articles/20091019/1848596602.shtml">fighting for</a> in court) that the record labels really have no say in this matter whatsoever.  There are no specific additional rights that they need to license here.  The people already have the music, and it's just a question of where the hard drive is and how long the wire is between that hard drive and the listener.
<br><br>
Of course, the real issue is that (yet again) the record labels are more afraid of unauthorized copies than they are of trying to provide actual value to users.  And that has become clear in the demands from the labels, including the insane argument from Universal Music that only specially marked files with digital receipts should be allowed in music lockers.  That is, if you have legally purchased CDs and legally ripped the music from those CDs... too freaking bad.  As someone who still buys most of my music on CD, that's pretty ridiculous.  They're telling me that I can't store my legally purchased music on a server of my own choosing?
<blockquote><i>
To combat this they [Universal Music] want only songs with digital receipts to be able to added to lockers. For some time UMG has been demanding that online music retailers embed personal information in every song they sell. They call it UITS. iTunes has been inserting email addresses into every song while other retailers like Napster are using a unique receipt number....
<br><Br>
All songs without a proof of purchase would be assumed to be unauthorized and not accepted into the system. Songs ripped from CDs would not have unique identifiers and wouldn't be loaded. Any song purchased prior to retailers inserting personal identifiers or from retailers who have yet to personalize every song would also be excluded. (To date, Amazon's MP3 store does not put any unique identifiers in songs despite UMG's demand that they do so.) Promotional songs download online would also not work. 
</i></blockquote>
Of course, that's a complete nonstarter, and would make music lockers almost useless for most users, even those of us who do, in fact, legally purchase our music.  Sony Music apparently has a slightly different concern, but an equally dumb idea:
<blockquote><i>
Sony believes users will share lockers by visiting each others houses and syncing in each others music. To combat this Sony wants loading to happen from only one computer. Each locker owner would have to designate a single location from which they could upload songs. Users could load music from either their laptop or desktop or office computer but not all three. Their belief is that this will prevent friend to friend file sharing. 
</i></blockquote>
Can you imagine what a headache that would be?  It kind of defeats the whole purpose of the music locker.  It also would create a huge headache for any music locker service in terms of dealing with customer complaints and customer support when someone buys a new computer and dumps the "officially designated" uploader machine.  It's a concept from someone who doesn't understand how people use computers these days.
<br><br>
And then there's Warner Music Group, which is so afraid of file sharing that it wants to make sure it can track you down and sue you if you use your locker in a way it doesn't like apparently:
<blockquote><i>
Most worrisome to Warner Music Group is that users may setup multiple lockers and the distribute the extra lockers to friends. Imagine if a locker owner setup a locker at Apple and Amazon and then gave their less used locker away or maybe even sold it. What WMG would like to see happen is that a central locker authority would administer all locker assignments. For awhile they were pushing Catch Media  as the solution. More recently they may have relaxed their demands in this area and insisted that locker identities be uniquely tied to a valid credit card or some other such verified identity. 
</i></blockquote>
This is so typical of the big record labels.  Rather than looking at ways to provide more value and recognize <i>how the world works</i>, all they do is seek restrictions and annoyances.  To be honest, I've still been hopeful that they'd eventually come around and figure out how to adapt, but these days I'm finally realizing that maybe they really do need to die off.<br /><br /><a href="http://www.techdirt.com/articles/20110429/02370814079/ridiculous-demands-record-labels-want-music-lockers.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110429/02370814079/ridiculous-demands-record-labels-want-music-lockers.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110429/02370814079/ridiculous-demands-record-labels-want-music-lockers.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>you-have-to-be-kidding-me</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110429/02370814079</wfw:commentRss>
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<item>
<pubDate>Wed, 13 Apr 2011 09:51:31 PDT</pubDate>
<title>Amazon Insists No Licenses Needed For Cloud Player, Google Thinking Of Skipping Licenses As Well</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110412/12450913873/amazon-insists-no-licenses-needed-cloud-player-google-thinking-skipping-licenses-as-well.shtml</link>
<guid>http://www.techdirt.com/articles/20110412/12450913873/amazon-insists-no-licenses-needed-cloud-player-google-thinking-skipping-licenses-as-well.shtml</guid>
<description><![CDATA[ When Amazon launched its cloud music streaming service a few weeks ago, the big <a href="http://www.techdirt.com/articles/20110329/02085613669/amazon-launches-digital-music-locker-even-as-legality-is-still-question.shtml">question</a> concerned whether or not it needed licenses to do so.  It certainly did not have them.  And there's a strong argument that it doesn't need them.  After all, it was just letting people take music files <i>they already had</i>, and allowing them to store and stream them from the internet.  Why should it require an extra license to let people listen to music they already have?  However, we did worry that Amazon would simply <a href="http://www.techdirt.com/articles/20110404/00544013762/will-amazon-cave-get-licenses-its-streaming-player.shtml">cave in</a>, rather than fight, as it wanted to remain on good terms with the record labels.
<br /><br />
Perhaps that's not the case, however.  Amazon has <a href="http://www.hypebot.com/hypebot/2011/04/amazon-tells-labels-cloud-launch-boosted-mp3-sales-not-looking-for-licenses.html" target="_blank">sent a letter to the record labels</a>, once again reiterating that it does not believe it needs licenses.  On top of that, it points out that, so far, the Cloud Drive appears to be driving <i>more sales</i> of MP3s.
<blockquote><i>
Cloud Drive is a general online storage service for all digital files, not unlike Google Docs, Microsoft SkyDrive and any number of other internet file back-up services.  It&rsquo;s your external hard-drive in the cloud.  It requires a license from content owners no more than those other internet file back-up services do and no more than makers of external hard drives for PCs do.
 <br /><br />
Cloud Player is a media management and play-back application not unlike Windows Media Player and any number of other media management applications that let customers manage and play their music.  It requires a license from content owners no more than those applications do.
<br /><br />
It really is that simple.
</i></blockquote>
Nice to see Amazon taking a stand here.  Hopefully it keeps up.
<br /><br />
At the same time, it appears that Google may be inspired by Amazon's decision here to stand up against the idea that licenses are needed for digital lockers.  While it had been trying to negotiate licenses, rumors are coming out that it's <a href="http://www.themusicvoid.com/2011/04/rumor-google-%E2%80%9Cdisgusted%E2%80%9D-with-record-labels/" target="_blank">fed up with ridiculous demands from the labels</a> and ready to follow Amazon's lead in just offering up the service without any licenses.
<br /><br />
Not surprisingly, the report names Warner Music as being the party that has been the worst to deal with in these negotiations.  That fits with what we've heard from other negotiations, where Warner Music puts absolutely ridiculous deal terms on the table and refuses to budge.  It would be nice if Google follows Amazon's lead and calls the labels' bluff on the idea that licenses are needed for this kind of service.<br /><br /><a href="http://www.techdirt.com/articles/20110412/12450913873/amazon-insists-no-licenses-needed-cloud-player-google-thinking-skipping-licenses-as-well.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110412/12450913873/amazon-insists-no-licenses-needed-cloud-player-google-thinking-skipping-licenses-as-well.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110412/12450913873/amazon-insists-no-licenses-needed-cloud-player-google-thinking-skipping-licenses-as-well.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>floodgates,-openning</slash:department>
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<pubDate>Mon, 4 Apr 2011 16:22:35 PDT</pubDate>
<title>Will Amazon Cave In And Get Licenses For Its Streaming Player?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110404/00544013762/will-amazon-cave-get-licenses-its-streaming-player.shtml</link>
<guid>http://www.techdirt.com/articles/20110404/00544013762/will-amazon-cave-get-licenses-its-streaming-player.shtml</guid>
<description><![CDATA[ When Amazon recently launched its streaming cloud music player, which let people upload their own tracks and then stream them back, one of the big <a href="http://www.techdirt.com/articles/20110329/02085613669/amazon-launches-digital-music-locker-even-as-legality-is-still-question.shtml">questions</a> was how would the record labels react.  That's because Amazon didn't secure licenses for this, and it's somewhat in dispute whether or not it needs to.  Of course, many of us think the law is pretty clear that no such licenses are needed at all.  The music is already in the possession of the person who is streaming it.  There is no additional fee that needs to be paid to listen to music you already have.  Adding in a new license is just something the industry is making up because it wants more money.  So, now the real question is whether or not the labels will sue... or <a href="http://www.wired.com/epicenter/2011/04/music-industry-cloud-player/all/1" target="_blank">will Amazon just cave in and pay for some made up licenses it doesn't need</a>.
<br /><br />
It's beginning to sound like the latter option is the most likely.  Amazon doesn't want to piss off the labels who it already works with for music sales (both downloads and CDs), and so it may find that it's best just to pay up to avoid a lawsuit and other relationship problems.  It might also pay up to enable other kinds of features (such as limited music sharing for people who both have the same songs in their collections).
<br /><br />
While I can certainly understand the business reasons for avoiding a legal fight, it really would be too bad.  It would be nice to see someone with the bank account to take on a serious fight really take this issue through the courts and have it shown that the major labels are simply making up a license right that doesn't exist.  Of course, the flip side of that argument is that if Amazon really did win such a fight, how long would it be until the RIAA ramps up its lobbying efforts to get Congress to change copyright law to explicitly add such a bogus "right to listen to your own music if it's stored on a different computer."<br /><br /><a href="http://www.techdirt.com/articles/20110404/00544013762/will-amazon-cave-get-licenses-its-streaming-player.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110404/00544013762/will-amazon-cave-get-licenses-its-streaming-player.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110404/00544013762/will-amazon-cave-get-licenses-its-streaming-player.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>probably</slash:department>
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<pubDate>Fri, 18 Feb 2011 16:17:18 PST</pubDate>
<title>Microsoft Accidentally Bans Its Own License From App Store?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/wireless/articles/20110218/12280313166/microsoft-accidentally-bans-its-own-license-app-store.shtml</link>
<guid>http://www.techdirt.com/blog/wireless/articles/20110218/12280313166/microsoft-accidentally-bans-its-own-license-app-store.shtml</guid>
<description><![CDATA[ It's always amusing when companies make some sort of blanket statement or policy... only to realize they did it so broadly as to go against their own interests.  Then you watch them backtrack.  Microsoft got itself in some hot water lately, when some people realized that the rules for Microsoft's phone app store appeared to ban certain types of open source software.  The specific claim was that it said certain types of licenses were to be excluded.  Among the excluded:
<blockquote><i>
"Excluded License" means any license requiring, as a condition of use, modification and/or distribution of the software subject to the license, that the software or other software combined and/or distributed with it be (i) disclosed or distributed in source code form; (ii) licensed for the purpose of making derivative works; or (iii) redistributable at no charge.
</i></blockquote>
The only problem?  This appears to <a href="http://blogs.computerworlduk.com/simon-says/2011/02/microsoft-bans-its-own-licenses/index.htm" target="_blank">cover a few of <i>Microsoft's own licenses</i></a>.  As Simon Phipps points out, both Microsoft's <a href="http://www.opensource.org/licenses/ms-rl" target="_blank">Reciprocal License</a> and <a href="http://www.opensource.org/licenses/ms-pl" target="_blank">its Public License</a> appear to violate those terms.
<br /><br />
Upon realizing this, Microsoft is sorta trying to <a href="http://www.zdnet.com/blog/microsoft/microsoft-mulls-changing-windows-phone-marketplace-terms-to-add-more-open-source-licenses/8743" target="_blank">backtrack on this</a>, saying that it is reconsidering the policy, but it had, in fact, done this on purpose.  Still, it's apparently open to reviewing different open source licenses, meaning that it's likely trying to figure out a way to carve out rules that allow its own licenses, but still forbid GPL software.  Whether you're a GPL supporter or not (and let's avoid a "holy war" discussion), this does seem a little petty.
<br /><br />
Of course, in this rush to "app store-ify" everything, with various gatekeepers and restrictions, sooner or later people are going to remember that they can simply avoid all of this by building web apps instead.<br /><br /><a href="http://www.techdirt.com/blog/wireless/articles/20110218/12280313166/microsoft-accidentally-bans-its-own-license-app-store.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20110218/12280313166/microsoft-accidentally-bans-its-own-license-app-store.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20110218/12280313166/microsoft-accidentally-bans-its-own-license-app-store.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>nicely-done</slash:department>
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