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<title>Techdirt. Stories filed under &quot;licensing&quot;</title>
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<pubDate>Fri, 17 May 2013 17:27:00 PDT</pubDate>
<title>AP's Attempt At DRM'ing The News Shuts Down</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130516/14465423109/aps-attempt-drming-news-shuts-down.shtml</link>
<guid>http://www.techdirt.com/articles/20130516/14465423109/aps-attempt-drming-news-shuts-down.shtml</guid>
<description><![CDATA[ Plenty of people rightly <a href="http://www.techdirt.com/articles/20090723/1858235640.shtml">mocked</a> the news a few years ago that the Associated Press was working on a plan to "DRM the news."  The idea was to put some sort of licensing mechanism together to get news aggregators to pay to promote their news.  This seemed incredibly dumb for a whole host of reasons.  It added no value.  Its only purpose was to limit the value for everyone in the system by putting a tollbooth where none needed to exist.  When it finally <a href="http://www.techdirt.com/articles/20120110/04124117363/ap-finally-launches-newsright-its-righthaven-lite.shtml">launched</a> last year to great fanfare in the newspaper world, under the name "NewsRight," we pointed out that, once again, it made no sense.  Basically, the whole focus appeared to be on getting bloggers and aggregators to pay for a license they legally did not need.
<br /><br />
Since the launch... we heard absolutely nothing about NewsRight.  There was a launch, with its newspaper backers claiming it was some huge moment for newspapers, and then nothing.
<br /><br />
Well, until now, when we find out that <a href="http://www.poynter.org/latest-news/mediawire/213614/newsright-ambitious-attempt-at-licensing-newspaper-content-quietly-folds/" target="_blank">NewsRight quietly shut down</a>.  Apparently, among its many problems, many of the big name news organization <i>that owned NewsRight</i> wouldn't even include their own works as part of the "license" because they <a href="http://www.niemanlab.org/2013/05/the-newsonomics-of-where-newsright-went-wrong/" target"_blank">feared cannibalizing revenue</a> from other sources.  So, take legacy companies that are backwards looking, combine it with a licensing scheme based on no legal right, a lack of any actual added value and (finally) mix in players who are scared of cannibalizing some cash cow... and it adds up to an easy failure.<br /><br /><a href="http://www.techdirt.com/articles/20130516/14465423109/aps-attempt-drming-news-shuts-down.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130516/14465423109/aps-attempt-drming-news-shuts-down.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130516/14465423109/aps-attempt-drming-news-shuts-down.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>total-failure</slash:department>
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<pubDate>Fri, 10 May 2013 04:11:46 PDT</pubDate>
<title>EA Says It's Going To Keep Using Manufacturers' Guns In Its Games -- It's Just Done Asking Permission</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20130507/21473422998/ea-says-its-going-to-keep-using-manufacturers-guns-its-games-its-just-done-asking-permission.shtml</link>
<guid>http://www.techdirt.com/articles/20130507/21473422998/ea-says-its-going-to-keep-using-manufacturers-guns-its-games-its-just-done-asking-permission.shtml</guid>
<description><![CDATA[ <p>
Given the current climate surrounding guns, violent video games and all points where the two intersect, it's not surprising that a large developer like EA would attempt to distance itself from gun manufacturers.
<br /><br />
No, EA isn't going to stop making video games with real-life weapons in them. It's going to continue business as usual in that respect. <a href="http://www.reuters.com/article/2013/05/07/us-videogames-guns-idUSBRE9460U720130507?irpc=932" target="_blank">What it <i>is</i> going to do is stop licensing the weapons</a>.
<blockquote>
<i>[A]t least one game maker, the second largest by revenue in the United States, is publicly distancing itself from the gun industry, even as it finds ways to keep the branded guns in the games. Electronic Arts says it is severing its licensing ties to gun manufacturers - and simultaneously asserting that it has the right, and the intention, to continue to feature branded guns without a license.</i></blockquote>
A rep for EA says this decision has nothing to do with the NRA's immediate willingness to <a href="http://www.techdirt.com/articles/20121219/09124821437/nras-plan-if-we-blame-video-games-movies-sandy-hook-massacre-perhaps-people-will-stop-blaming-guns.shtml" target="_blank">lay the blame</a> for the Newtown shooting at the feet of violent video games. But that's a rather tough sell, especially considering the hard line EA is pursuing.
<br /><br />
Gun licensing for games has never been particularly lucrative for gun manufacturers, at least not in terms of licensing fees. Most agreements were felt to be mutually beneficial: game developers were able to craft authentic weapons and gun manufacturers received free advertising and the best kind of product placement -- right in the virtual hands of potential customers.
<br /><br />
Now, it seems the relationship has become mutually toxic.
<blockquote>
<i>"It gives publicity to the particular brand of gun being used in the video game," said Brad J. Bushman, a professor at Ohio State University who has studied video game violence. "On the other hand, it's linking that gun with violent and aggressive behavior."</i></blockquote>
Bushman's studies on video games and violent media have frequently resulted in <a href="http://www.techdirt.com/articles/20090318/0212264165.shtml" target="_blank">dubious conclusions</a> (to put it kindly), but if anyone's going to take him seriously, it's the NRA and gun manufacturers. What once looked like an ideal match now puts gun manufacturers' implicit endorsement of violent video games in a very unfavorable light.
<br /><br />
EA may be able to help them out with this. It's not going to give up using real world weapons in its games -- it's just going to stop asking permission.
<blockquote>
<i>"We're telling a story and we have a point of view," EA's President of Labels Frank Gibeau, who leads product development of EA's biggest franchises, said in an interview. "A book doesn't pay for saying the word 'Colt,' for example."</i>
<br /><br />
<i>Put another way, EA is asserting a constitutional free speech right to use trademarks without permission in its ever-more-realistic games.</i></blockquote>
EA is going to rely on fair use and it should have a fairly strong case. More promising is the fact that gun makers haven't been very litigious in the past. According to Reuters, a gun manufacturer has yet to sue a game developer over lack of proper licensing. However, the recently introduced friction between these two industries makes EA's new "license-free" stance a bit more combative that it would be otherwise.
<br /><br />
This approach almost appears to be EA throwing down the gauntlet and daring embattled gun manufacturers to wander back out into the public eye. There's no way gunmakers will look any better pursuing licensing fees or suing for breach of contract, and EA knows this. Once again, I'm not buying EA's "no harm, no foul" statement in reference to the NRA's recent attempt to toss video games under the bus.
<br /><br />
EA may have the upper hand at the moment, but Reuters mentions a pending lawsuit that could spell trouble in the future.
<blockquote>
<i>Aircraft maker Bell Helicopter, a unit of Textron Inc, has argued that Electronic Arts' depiction of its helicopters in "Battlefield" was beyond fair use and amounted to a trademark infringement. EA preemptively went to court, suing Bell Helicopter to settle the issue.</i></blockquote>
Should Bell prevail, EA may find gun makers willing to test the legal waters and attempt to pry EA's unlicensed guns from its cold, injunctioned fingers.
</p><br /><br /><a href="http://www.techdirt.com/articles/20130507/21473422998/ea-says-its-going-to-keep-using-manufacturers-guns-its-games-its-just-done-asking-permission.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130507/21473422998/ea-says-its-going-to-keep-using-manufacturers-guns-its-games-its-just-done-asking-permission.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130507/21473422998/ea-says-its-going-to-keep-using-manufacturers-guns-its-games-its-just-done-asking-permission.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>somehow-I-think-the-NFL-won't-push-over-as-easily...</slash:department>
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<pubDate>Mon, 29 Apr 2013 07:09:00 PDT</pubDate>
<title>Google's Attempt To Bully Microsoft Back With Patents Not Going Too Well</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20130428/15442222865/googles-attempt-to-bully-microsoft-back-with-patents-not-going-too-well.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20130428/15442222865/googles-attempt-to-bully-microsoft-back-with-patents-not-going-too-well.shtml</guid>
<description><![CDATA[ Ever since Google decided to stick with Motorola Mobility's existing patent fights with various companies, I've been wondering why they did so.  Here was a chance for Google to take the high road and actually live up to what it had been claiming concerning the problems of patents.  But, instead, it's basically continued to try to use patents as a weapon.  The fight against Microsoft has been particularly silly.  While Microsoft did <a href="http://www.techdirt.com/blog/wireless/articles/20101001/13562611251/microsoft-sues-motorola-for-patent-infringement-over-android.shtml">initiate</a> things, Motorola's decision to <a href="http://www.techdirt.com/articles/20101111/08052911817/microsoft-and-motorola-go-all-in-with-patent-nuclear-war.shtml">fight back</a> had seemed dubious from the start.  Being a patent bully is no way to run a long-term business, and that's doubly true when you're a company telling people how broken the patent system really is.
<br /><br />
And yet, Motorola Mobility pushed on against Microsoft... and it's not going well.  On Friday, a judge <a href="http://allthingsd.com/20130425/court-denies-motorola-the-billions-it-wanted-from-microsoft-for-standard-essential-patents/?refcat=news" target="_blank">knocked the damages down to next to nothing</a>, basically siding with Microsoft.  Microsoft had argued that if there were any infringement, the amount owed should be about $1.2 million.  Motorola Mobility had argued for... <i>$4 billion</i>.  The judge came down at just $1.8 million.
<br /><br />
I recognize, of course, that the whole reason that Google bought Motorola Mobility was to get access to these patents.  And, on top of that, Microsoft did strike first here.  However, Motorola Mobility had hit back quite strongly, and even once Google was in control, it seemed to have little interest in pulling back.  The whole thing makes Google look a bit hypocritical, and it certainly hasn't helped the company win any of these legal battles.<br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20130428/15442222865/googles-attempt-to-bully-microsoft-back-with-patents-not-going-too-well.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20130428/15442222865/googles-attempt-to-bully-microsoft-back-with-patents-not-going-too-well.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20130428/15442222865/googles-attempt-to-bully-microsoft-back-with-patents-not-going-too-well.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>live-by-the-sword...</slash:department>
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<pubDate>Tue, 23 Apr 2013 05:20:00 PDT</pubDate>
<title>Performance Rights Organizations Accused Of 'Retitling' Songs To Collect Royalties Without Paying Artists</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130318/00072222358/performance-rights-organizations-accused-retitling-songs-to-collect-royalties-without-paying-artists.shtml</link>
<guid>http://www.techdirt.com/articles/20130318/00072222358/performance-rights-organizations-accused-retitling-songs-to-collect-royalties-without-paying-artists.shtml</guid>
<description><![CDATA[ In various discussions about the music industry, we're often told that the so-called Performance Rights Organizations (PROs) are "looking out for artists' interests."  In practice, that's not always the case.  In the US, for example, we've talked about how PROs have <a href="http://www.techdirt.com/articles/20090109/1823043352.shtml">harmed</a> up and coming musicians by jacking up prices so high that many venues that used to be the starting place for new musicians no longer allow any music.  Similarly, there are plenty of stories showing how they often collect money that should go to smaller artists, but <a href="http://www.techdirt.com/articles/20120323/18055718229/how-ascap-takes-money-successful-indie-artists-gives-it-to-giant-rock-stars.shtml">deliver it</a> to big name artists instead, because it's too difficult to track how much they should be paying smaller artists.
<br /><br />
A press release from an organization called Music Licensing Directory -- which may be biased, so take this with a grain of salt -- is highlighting that 40% of the PROs it tracks <a href="http://www.musiclicensingdirectory.com/blogs/mld-blog/press-releas-music-industry-plagued-by-retitling-of-songs/" target="_blank">engage in "retitling" tracks for the purpose of licensing</a>.  Basically, the accusation is that the PROs change the title, so that they still collect the royalties, but since the songs can't be easily connected back to the original artist, that artist doesn't get paid.
<blockquote><i>
&#8220;We have analyzed over 1500 music licensing companies globally, allowing for an accurate assessment of the market place and providing valued insight for artists and the industry.&#8221; said Winston Giles, CEO &#038; Founder of The Music Licensing Directory.
<br /><br />
The new report highlights that whilst the Music Licensing Industry continues to grow as a multi-billion dollar segment of the global music industry, there remains some unhealthy practices, most notably the prolific practice of retitling. Retitling is where a music licensing company re-registers a song under a different title with a performing rights organization (PRO), allowing for the royalties to be separately tracked when that song is licensed for a specific third party use. This allows the music licensing company to control and earn a significant share of the royalties collected.
</i></blockquote><br /><br /><a href="http://www.techdirt.com/articles/20130318/00072222358/performance-rights-organizations-accused-retitling-songs-to-collect-royalties-without-paying-artists.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130318/00072222358/performance-rights-organizations-accused-retitling-songs-to-collect-royalties-without-paying-artists.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130318/00072222358/performance-rights-organizations-accused-retitling-songs-to-collect-royalties-without-paying-artists.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>sad-state-of-affairs</slash:department>
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<pubDate>Fri, 5 Apr 2013 08:51:56 PDT</pubDate>
<title>Recording Industry Lobbyists Accuse Pandora Of Deliberately Not Selling Ads To Plead Poverty To Congress</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130404/02362022572/recording-industry-lobbyists-accuse-pandora-deliberately-not-selling-ads-to-plead-poverty-to-congress.shtml</link>
<guid>http://www.techdirt.com/articles/20130404/02362022572/recording-industry-lobbyists-accuse-pandora-deliberately-not-selling-ads-to-plead-poverty-to-congress.shtml</guid>
<description><![CDATA[ I'm always amazed at how copyright maximalists from the entertainment industry insist that no one can comment on their own businesses unless they're "in it" while freely commenting on other businesses they clearly know nothing about.  Here's the latest example.  The musicFIRST coalition, which is basically a lobbying operation set up by a few of the big legacy players in the recording industry (including the RIAA, A2IM and SoundExchange) in order to push for ever higher royalties for music, has been fighting hard against any effort to create royalties for internet companies that would allow those companies to survive.  Like the Golden Goose, the labels have decided that if anyone online is making money, it's best to squeeze as much of it out of them as possible until they're dead, rather than allowing them to grow and to provide sustainable revenue back to the industry.
<br /><br />
But their latest blog post really takes public cluelessness to new and impressive levels.  It's a response to the news that <a href="http://www.theverge.com/2013/4/3/4178960/spotify-doesnt-appear-to-be-slowing-pandoras-growth" target="_blank">Pandora's listener base has been growing</a>.  That should be celebrated, but, as Pandora has been pointing out for ages, thanks to the crazy high royalty rates that it has to pay SoundExchange (which are many times the rates of satellite radio and infinitely larger than terrestrial radio, since terrestrial radio has an exemption from performance royalties) it is close to impossible for Pandora to ever be profitable.  Even worse (for musicians, the industry and the public) these crazy high rates means a lot less competition, fewer new <i>authorized</i> services and a smaller market overall.  Pandora has been seeking more reasonable rates that would actually allow it to provide more services and to grow the overall pie even more by adding more value.  However, so far, that's been cost-prohibitive given how much goes out the door to SoundExchange.
<br /><br />
So, along comes MusicFIRST with the "solution" to all of Pandora's profitability problems: <a href="http://www.musicfirstcoalition.org/node/845" target="_blank">sell more ads</a>.  No, that's not a joke.  They seriously seem to think that Pandora's problem is that it has <i>chosen</i> to take on less revenue and that all it has to do is turn the knob up and sell more ads:
<blockquote><i>
As economist Jeff Eisenach <a href="http://judiciary.house.gov/hearings/Hearings%202012/Eisenach%2011282012.pdf" target="_blank">testified</a> last year regarding Pandora royalties, "the ratio of Pandora's content costs to its revenues is within Pandora's control: To raise its revenues, it need only choose to sell additional advertising" or find other ways to cash in on its popular and successful product.
<br /><br />
Pandora <b>is choosing to limit revenues for now by keeping advertising low</b> and attracting customers to its free service tier.... It's <b>no reason to plead poverty</b> in the face of massive audience growth and "better than expected" earnings reports.
</i></blockquote>
As someone who relies on advertising for a portion of my income, I wish musicFIRST had just told me all along that the fact that ad rates are so low and that fill rates are so dismal on advertising all across the internet is because I just wasn't trying enough and that I'd purposely been "limiting revenues."  Why don't we just flip that one around?  Perhaps the reason that the major labels and SoundExchange have been making so little money is that they're not selling enough.  All they need to do is sell more and all their problems are solved.  No need to go plead poverty to Congress and demand a jacking up of rates, since -- by their own logic -- they just need to sell more, and clearly, that's easy.  If they're not selling more, it's because they've decided to limit revenue.
<br /><br />
Stories like this make you wonder if anyone actually takes musicFIRST seriously.
<br /><br />
Separately, musicFIRST trots out the lamest trope in the book in the attacks on Pandora: focusing on the value of the company and the equity its founders hold.  Only someone who is deliberately misleading or completely clueless on basic financial issues would equate a company's valuation with revenue.  The two are wholly different beasts.  And yet, these lobbyists pretend that the equity that Pandora execs hold somehow is taken unfairly from artists.  That, of course, makes no sense if you actually understand the difference between equity and revenue.  Any artist could have had the same equity if <i>they had built Pandora</i>.  They didn't, so they don't.<br /><br /><a href="http://www.techdirt.com/articles/20130404/02362022572/recording-industry-lobbyists-accuse-pandora-deliberately-not-selling-ads-to-plead-poverty-to-congress.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130404/02362022572/recording-industry-lobbyists-accuse-pandora-deliberately-not-selling-ads-to-plead-poverty-to-congress.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130404/02362022572/recording-industry-lobbyists-accuse-pandora-deliberately-not-selling-ads-to-plead-poverty-to-congress.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>right,-and-the-labels-just-need-to-sell-more-albums</slash:department>
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<pubDate>Mon, 18 Mar 2013 13:01:40 PDT</pubDate>
<title>More Details On Copyright Register Maria Pallante's Call For Comprehensive, 'Forward-Thinking, But Flexible' Copyright Reform</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130318/11114922368/more-details-copyright-register-maria-pallantes-call-comprehensive-forward-thinking-flexible-copyright-reform.shtml</link>
<guid>http://www.techdirt.com/articles/20130318/11114922368/more-details-copyright-register-maria-pallantes-call-comprehensive-forward-thinking-flexible-copyright-reform.shtml</guid>
<description><![CDATA[ On Friday, we had two stories breaking the news that the Register of Copyright is expected this week to call for comprehensive copyright reform, including both a <a href="http://www.techdirt.com/articles/20130315/09225322338/surprise-register-copyrights-expected-to-call-reduction-copyright-term.shtml">slight reduction in term</a> as well as <a href="http://www.techdirt.com/articles/20130315/14043322341/more-details-copyright-offices-suggestions-copyright-reform-some-good-some-bad.shtml">some of other changes</a>.  It's somewhat surprising that (as far as I can tell), no other publications are reporting on this, considering the magnitude of this bit of news.  There was a <a href="http://www.billboard.com/biz/articles/1552384/business-matters-congressional-hearing-hints-of-upcoming-copyright-changes" target="_blank">brief bit</a> of speculation in Billboard, but most other publications have stayed silent so far.
<br /><br />
Today we have even more details.  First, we have <a href="https://www.documentcloud.org/documents/623874-pallante-032013.html" target="_blank">Pallante's expected testimony on Wednesday</a> before the IP subcommittee of the House Judiciary Committee.  It's a pretty short and simple piece that basically says "let's get this process started, because Copyright Reform is going to be a long and arduous process, but it needs to be done."  And, as we noted last week, it sounds like a lot of stuff is on the table.
<blockquote><i>
It has been fifteen years since Congress acted expansively in the copyright space. During 
that period, Congress was able to leave a very visible and far-reaching imprint on the 
development of both law and commerce. It enacted the Digital Millennium Copyright Act 
(&#8220;DMCA&#8221;), which created rules of the road for online intermediaries (e.g., Internet service 
providers) and a general prohibition on the circumvention of technological protection measures 
(so-called &#8220;TPMs&#8221;) employed by copyright owners to protect their content. The DMCA also 
created a rulemaking mechanism by which proponents could make the case for temporary 
exemptions to the TPM provisions in order to facilitate fair use or other noninfringing uses (the 
&#8220;section 1201 rulemaking&#8221;).
<br /><br />
Nonetheless, a major portion of the current copyright statute was enacted in 1976. It took 
over two decades to negotiate, and was drafted to address analog issues and to bring the United 
States into better harmony with international standards, namely the Berne Convention. 
Moreover, although the Act is rightly hailed by many as an accomplishment in balance and 
compromise, its long trajectory defeated any hope that it could be effective into the 21st century
In fact, former Register of Copyrights Barbara Ringer, who had worked closely with Congress 
for much of the 1976 revision process, later called it a &#8220;good 1950 copyright law.&#8221;
<br /><br />
I think it is time for Congress to think about the next great copyright act, which will need 
to be more forward thinking and flexible than before. Because the dissemination of content is so 
pervasive to life in the 21st century, the law also should be less technical and more helpful to 
those who need to navigate it. Certainly some guidance could be given through regulations and 
education. <b>But my point is, if one needs an army of lawyers to understand the basic precepts of 
the law, then it is time for a new law.</b>
</i></blockquote>
For the most part, I absolutely agree -- especially that last line.  I will note that, Pallante, who has been stung repeatedly in the past for displaying a very strong bias towards copyright maximalism, is clearly being much more careful in these remarks -- something that we should all appreciate.  In her talk to Congress, a number of the things she suggests should be reviewed are things that many of us here would agree are in dire need of study and updating.
<blockquote><i>
A central equation for Congress to consider is what does and does not belong under a 
copyright owner&#8217;s control in the digital age. I do not believe that the control of copyright owners 
should be absolute, but it needs to be meaningful. People around the world increasingly are 
accessing content on mobile devices and fewer and fewer of them will need or desire the 
physical copies that were so central to the 19th and 20th century copyright laws.
<br /><br />
Moreover, while philosophical discussions have a place in policy debates, amending the 
law eventually comes down to the negotiation of complex and sometimes arcane provisions of 
the statute, requiring leadership from Congress and assistance from expert agencies like mine. 
The list of issues is long: clarifying the scope of exclusive rights, revising exceptions and 
limitations for libraries and archives, addressing orphan works, accommodating persons who 
have print disabilities, providing guidance to educational institutions, exempting incidental 
copies in appropriate instances, updating enforcement provisions, providing guidance on 
statutory damages, reviewing the efficacy of the DMCA, assisting with small copyright claims, 
reforming the music marketplace, updating the framework for cable and satellite transmissions, 
encouraging new licensing regimes, and improving the systems of copyright registration and 
recordation. 
</i></blockquote>
In her speech, she also highlights that the public interest is the most important thing, but also notes that the interests of creators are intertwined with those of the public.  Again, we agree, though I think that we agree in different ways.  Her focus appears to be mainly on the full-time, professional content creator, whereas we believe that any law must recognize that nearly everyone "creates" content these days, and must take that into account.
<blockquote><i>
If Congress considers copyright revision, a primary challenge will be keeping the public 
interest at the forefront, including how to define the public interest and who may speak for it. 
Any number of organizations may feel justified in this role, and on many issues there may in fact 
be many voices, but there is no singular party or proxy. In revising the law, Congress should 
look to the equities of the statute as a whole, and strive for balance in the overall framework. It 
is both possible and necessary to have a copyright law that combinessafeguards for free 
expression, guarantees of due process, mechanisms for access, and respect for intellectual 
property.
<br /><br />
To this end, I would like to state something that I hope is uncontroversial. The issues of 
authors are intertwined with the interests of the public. As the first beneficiaries of the copyright 
law, they are not a counterweight to the public interest but instead are at the very center of the 
equation. In the words of the Supreme Court, &#8220;[t]he immediate effect of our copyright law is to 
secure a fair return for an &#8216;author&#8217;s&#8217; creative labor. But the ultimate aim is, by this incentive, to 
stimulate artistic creativity for the general public good.&#8221; Congress has a duty to keep authors in 
its mind&#8217;s eye, including songwriters, book authors, filmmakers, photographers, and visual 
artists. A law that does not provide for authors would be illogical &#8212;hardly a copyright law at 
all.
</i></blockquote>
Separately, the Copyright Office has <a href="https://www.documentcloud.org/documents/623865-pallante-the-next-great-copyright-act-manges.html" target="_blank">released the full text of her speech</a> at Columbia University from two weeks ago, in which she lays out her ideas in much greater detail.  It's an interesting read, and I hope that most people here will take the time to read through the whole thing carefully before jumping into the discussion.  There is a lot in there to process -- some of it good, some of it troubling, some of it that requires more thought and study.  Assuming that Congress does move forward on this point, there is going to be an awful lot of back and forth over the next few years, and it wouldn't surprise me if it takes a decade or more before something is finally hammered out.
<br /><br />
In her speech, Pallante, (not surprisingly) says many of the same things as in her upcoming testimony.  She talks about making copyright law "forward thinking but flexible" which is a good way to think about it -- though, I imagine that just what that means will vary quite a bit based on where you sit in this debate.
<blockquote><i>
The next great copyright act must be forward thinking but flexible. It should not
attempt to answer the entire universe of possible questions, but, no matter what, it must
serve the public interest. Thus, it must confirm and rationalize certain fundamental
aspects of the law, including the ability of authors and their licensees to control and
exploit their creative works, whether content is distributed on the street or streamed from
the cloud.
<br <Br/>
This control cannot be absolute, but it needs to be meaningful. After all, people
around the world increasingly are accessing content on mobile devices and fewer and
fewer of them will need or desire the physical copies that were so central to the 19th and
20th century copyright laws. Thus, Congress has a central equation to consider today:
what does and does not belong under a copyright owner&#8217;s control. Congress also will
want to consider the exceptions and limitations, enforcement tools, licensing schemes,
and the registration system it wants for the 21st century.
</i></blockquote>
She then goes through the big list of "major issues."  First up is the <b>performance right</b>.  In the US, Congress decided long ago that since radio was a form of advertising for music, radio stations do not need to pay royalties to performers (they do need to pay songwriters/publishers).  Most of the rest of the world does have to obtain a performance right however, and for years there's been a push from the labels (and the Copyright Office) to "harmonize" this and basically force radio stations to pay an RIAA tax for playing music.  As I've argued in the past, this is somewhat silly, since the history of radio is littered with stories of payola, in which the labels funneled huge wads of cash to radio stations and their employees to get their music on the air.  In other words, if left to the free market, the market has said that labels value airplay so much they'll pay for it -- yet they're looking for legislation that requires <i>the reverse</i>: where radio stations should be expected to pay labels.  I still haven't seen how that makes much sense, but given the decreasing importance of radio (though, yes, it is still important today), and the importance of many of the other issues discussed, the performance right issue will almost certainly get rolled up into any big reform effort.
<br /><br />
She also suggests a clarification on <b>"the distribution"</b> right, to determine whether or not you actually have to distribute, or if merely "making available" violates that right.  The courts have more or less been split on the issue with a few rulings in either direction.  Not surprisingly, I strongly believe that there needs to be evidence of actual distribution to violate the distribution right, and merely making available does not violate that right (though, certainly should put you at risk of violating that right).  Pallante does not come down on any particular side, but notes it as an open issue.
<blockquote><i>
The scope of the distribution right also is a central theme today, as courts work
through whether and how it may be implicated and enforced in relation to use of works
over the Internet.58 One key issue in the courts is the degree to which a claimed violation
of the exclusive right to authorize distribution of a work requires a showing of actual
dissemination of a work or whether the act of making the work available online is
sufficient.
</i></blockquote>
Next up: <b>incidental copies</b>.  As Pallante rightly notes, "new technologies have made
it increasingly apparent that not all reproductions are equal in the digital age."  Specifically, the nature of the way computers work is that they are giant copying machines, and you could argue that much of what they do is infringement, but there is growing concern that "incidental" copies made in the process of computing should <i>not</i> be considered infringing.  Pallante points out that Congress has dealt with this in the past through duct-taping on bits and pieces to the Copyright Act to exempt certain types of copies, which (though she doesn't mention this) leads to convoluted rulings like the one in the <a href="http://www.techdirt.com/articles/20080804/1218551884.shtml">Cablevision remote DVR case</a>, in which the court knew it shouldn't be infringing, but had to twist itself into a series of complex knots to make that argument under existing law.
<br /><br />
From there we get into <b>enforcement</b>, which kicks off with some implied praise for "voluntary" actions like the six strikes plan, but also a hint of support for SOPA-like restrictions, specifically calling out payment process, advertising networks, search engines and internet service providers as "having a role" in enforcing copyrights.  That should be closely watched.  Similarly, she highlights another issue that was in SOPA: expanding copyright coverage to go against "streaming."
<blockquote><i>
One critical issue is the ability of law enforcement to prosecute the rising tide of
illegal streaming in the criminal context. Streaming implicates the copyright owner&#8217;s
exclusive right of public performance: it is a major means by which copyright owners
license their rights in sporting events, television programs, movies, and music to
customers, who in turn access the content on their televisions, smart phones, tablets, or
video consoles. Under current law there is a disparity that may have once been of little
consequence but is today a major problem: prosecutors may pursue felony charges in the
case of illegal reproductions or distributions, but are limited to misdemeanor charges
when the work is streamed, even where such conduct is large scale, willful and
undertaken for a profit motive. As a practical matter, prosecutors have little incentive
to file charges at all, or to pursue only those cases where the rights of reproduction and
distribution are also at issue. This lack of parity neither reflects nor serves the digital
marketplace.
</i></blockquote>
Again, this was a part of SOPA (and while not a part of PIPA, there was a separate Senate bill that covered this concept, which resulted in the famed <a href="http://www.techdirt.com/articles/20111019/11572816419/free-justin-bieber-do-we-really-want-congress-to-make-bieber-felon.shtml">Free Bieber</a> campaign.  While Pallante presents this in a matter of fact manner, it is not nearly as clear cut as she states.  After all, we've seen that the government is already going after "streaming" sites, like <a href="http://www.techdirt.com/articles/20110617/04014414727/why-is-justice-department-pretending-us-copyright-laws-apply-uk.shtml">TVShack</a>, <a href="http://www.techdirt.com/articles/20130227/03004022130/doj-lets-channelsurfing-operator-mostly-off-hook.shtml">ChannelSurfing</a> and <a href="http://www.techdirt.com/articles/20120106/11034317305/ninjavideo-admin-phara-gets-22-months-jail-500-hours-community-service-has-to-pay-mpaa-210k.shtml">NinjaVideo</a>.  In those cases, we often see that the government has a very dangerous (i.e., extremely confused) understanding of how internet streaming works, often being willing to blame site operators for third party actions, and quick to blame a platform site for content streamed from third parties, without ever directly touching the streaming site.  The war against streaming sites is incredibly misguided, and is the latest in a long series of attempts by the entertainment industry to lash out at enabling technology when it should be learning how to use it to their own advantage.  It's disappointing, though not surprising, that Pallante is offering up clear support for further criminalizing this area, in a manner that will almost certainly be abused to create chilling effects on innovation.
<br /><br />
Also among possible reforms: <b>small claims court</b> for copyright infringement.  Copyright is limited to federal court, and as someone who was just (ridiculously) <a href="http://www.techdirt.com/articles/20130207/10425321911/teri-buhl-threatens-to-sue-us-others-still-seems-confused-about-law.shtml">threatened</a> with a "small claims" court over a bogus copyright issue, we're certainly well aware of why it's a good thing to keep copyright out of small claims courts.  Last year, we had an even more detailed discussion about the issue in the form of a <a href="http://www.techdirt.com/articles/20121205/23325421252/proposed-copyright-small-claims-court-may-have-bigger-impact-than-dmca.shtml">guest post</a> from the folks at New Media Rights.
<br /><br />
Then we get to one of the big ones: <b>statutory damages</b>:
<blockquote><i>
This brings me to statutory damages. Some would eliminate the precondition in
section 412 of the Copyright Act that limits the availability of statutory damages to those
who register with the Copyright Office in a timely manner.74 They believe that it places
an undue burden on the people who need statutory damages the most but are least likely
to be aware of the condition, namely authors. Cost is also an issue, particularly for
prolific creators like photographers, who may be unable to register each and every work
under a separate application and have for years enjoyed a reduced rate through a group
registration option. This gives photographers the ability to claim statutory damages, but
often without providing effective public disclosure of what the group registration covers.
Section 412 also acts as a filter, reducing the number of claims from copyright owners
and the level of exposure for infringers. <b>Unfortunately, it does this for bad faith actors
and good faith actors alike.</b>
<br /><br />
Section 412 was designed as a precaution and an incentive in 1976 &#8212; a time
when the law was moving to automatic protection and many were worried about the
ramifications for authors, the public record and the Library of Congress&#8217; collection.
Section 412 thus creates a bargain: the copyright owner preserves his ability to elect
statutory damages in exchange for registering, thereby ensuring a more complete public
record of copyright information and a better collection for the Library of Congress.
<br /><br />
[....] More globally, arguments abound on the subject of statutory damages, suggesting
that they are either too high, too low, too easy, or too hard to pursue. Statutory damages
have long been an important part of copyright law to ensure that copyright owners are
compensated for infringement, at least where actual damages are unworkable. The
Copyright Act of 1790 included a provision awarding the copyright owner fifty cents for
every sheet of an unauthorized copy that was printed, published, or imported or exposed
to sale.77 Statutory damages should remain squarely in the next great copyright act
irrespective of section 412. However, there may be plenty to do on the edges, including
providing guidance to the courts (e.g., in considering whether exponential awards against
individuals for the infringement of large numbers of works should bear a relationship to
the actual harm or profit involved), and finding new ways to improve the public record of
copyright ownership.
</i></blockquote>
That, at least, is a tiny, tiny, tiny step towards a more reasonable look at statutory damages, but I'd argue it needs to go much, much further. As it stands today, statutory damage threats used against individuals, especially for use that is clearly for personal use, is a huge part of the problem.
<br /><br />
She then moves on to the <b>DMCA's safe harbors</b> and, as we feared, seems to be suggesting that they need to be revamped to take the burden off of copyright holders, and place it more on service providers.  This is dangerous for a number of reasons, which we'll explain shortly:
<blockquote><i>
The section 512 safe harbors in particular have generated more than their fair
share of litigation on issues such as eligibility for the safe harbor, inducement, and
monitoring. Some of these issues were imaginable at the time at the time of their enactment, and others were not. There are other concerns that go more generally to the
question of whether the burdens of notice and takedown are fairly shared between
copyright owners and intermediaries.
</i></blockquote>
This is the part that scares us most about any reform proposal -- and, we fear, the key point as to why this is being discussed.  Copyright holders have been trying to change the safe harbors for years, putting the burden for "enforcing" copyright onto intermediaries and service providers, turning them into copyright cops.  The idea, as Pallante suggests, that this burden should be "fairly shared," isn't just misleading, but rather it makes no sense.  The reason you don't put the burden on service providers is <i>they have no way of knowing</i> if something is absolutely infringing.  This was clearly demonstrated in the Viacom/YouTube case in which well over 100 files that Viacom sued YouTube over were <i>uploaded by Viacom employees</i> as part of their jobs in marketing.  It is impossible for the intermediary to know, for certain, if works are infringing or not.  This is about the "fairness" of the burden, but <i>simple reality</i>.
<br /><br />
Furthermore, putting the burden on service providers does two horrible things.  First, it locks in the large players like Google/YouTube who can invest in expensive filtering systems, but denies any new competition from entering the market.  That's just bad for innovation.  Second, it will massively inhibit all sorts of new types of services that involve any "user generated" component, just on the fear that they could face massive liability because of an action of the user.  None of this absolves liability on the actual person who is infringing, but placing such liability on the third party service provider is dangerous and counterproductive.   We don't blame Ford when someone speeds.  We don't blame AT&#038;T when someone calls in a bomb threat.  We don't blame Bic when someone forges a check.  Don't blame service providers for infringement done by users.
<br /><br />
While Pallante does also suggest some review of the <b>anti-circumvention provisions</b>, she appears to only focus on the triennial review process -- and not the anti-circumvention process themselves.  This is bad news.  If they're going to open up the safe harbors, at the very least, completely throwing out the anti-circumvention concept should be on the table.  It's a horrible part of the law that <i>simply is not needed</i>.  Anti-circumvention only serves to make illegal actions that do not infringe copyrights.  If you use an circumvention tool to infringe on copyright, we already have <i>basic copyright</i> to make that illegal.  Making the creation, distribution and use of circumvention tools illegal on top of that only makes it harder for people to do what they want to do in manners that don't infringe.  For those who are infringing with such tools, it is already illegal.  If we're going to reform copyright law and the DMCA in particular, near the top of the list we should include the possibility of dumping the anti-circumvention "digital locks" stuff entirely.
<br /><br />
Next up: <b>first sale</b>.  She doesn't take a stand here other than to say it needs to be looked at.  I tend to hate "on the one hand, on the other hand" arguments, because they feel so wishy-washy.  Take a stand.  First sale rights are important.  You should own what you've legally purchased without question.  There's no reason why the Copyright Office shouldn't be able to take a stand in favor of that.
<blockquote><i>
On the one
hand, Congress may believe that in a digital marketplace, the copyright owner should
control all copies of his work, particularly because digital copies are perfect copies (not
dog-eared copies of lesser value) or because in online commerce the migration from the
sale of copies to the proffering of licenses has negated the issue. On the other hand,
Congress may find that the general principle of first sale has ongoing merit in the digital
age and can be adequately policed through technology &#8212; for example, measures that
would prevent or destroy duplicative copies. Or, more simply, Congress may not want a
copyright law where everything is licensed and nothing is owned.
</i></blockquote>
Moving on, we have a section on "exceptions and limitations."  As I've argued in the past, this is the wrong framing entirely.  This should be known as <a href="http://www.techdirt.com/articles/20120719/01482519756/we-should-stop-calling-fair-use-limitation-exception-to-copyright-its-right-public.shtml">the rights of the public</a>, because that's what it accurately describes.  Labeling it as "exceptions and limitations" minimizes the importance of these items, despite the fact that they should be a central component of any copyright law.  The UN's "declaration on human rights" puts the rights of the public to share and participate in cultural life <a href="http://www.techdirt.com/articles/20121019/12333120767/no-copyright-is-not-human-right.shtml">first</a>, above the ability to "protect" content.
<br /><br />
Unfortunately, Pallante fails to suggest a comprehensive review of this area, but rather focuses narrowly on carve outs and patches -- such as for schools, libraries and archives.
<br /><br />
On the question of <b>licensing</b>, Pallante suggests that we might be better off with some sort of blanket licensing for digital uses, while noting that with the variety of business models out there, the licensing landscape has been a total mess.  It is true that current licensing regimes are a total mess, and have slowed the rise of important digital services.  Tragically, at times, it seems that copyright holders themselves have been their worst enemies here, demanding as much money as possible upfront, making it almost certain that no digital service can go through the necessary growth period to build a sustainable, popular service that pays artists well.  Instead, they strangle and cripple each new service to hit the market, demanding more and more upfront, such that we have a very limited marketplace, with few services that can succeed.  At best, we're left with one or two giant players, rather than a truly competitive market that helps to both support artists and to provide unique and valuable services to individuals.  Unfortunately, Pallante's talk does little to address this issue, other than to note that Congress may have a role in making licensing work better to reduce "gridlock."  We'll see, but my fear is that this turns into another mess like the Copyright Royalty Board, in which you have a few ancient judges, with no understanding of the digital marketplace, setting ridiculously high rates.
<br /><br />
Moving on to <b>copyright term</b>, as we reported, she calls for potentially rolling back the Sonny Bono Copyright Term Extension Act, such that copyright goes back to being life plus 50, rather than life plus 70, but leaves open the ability to get that last 20 years by proactively renewing for it.
<blockquote><i>
Perhaps the next great copyright act could take a new approach to term, not for
the purpose of amending it downward, but for the purpose of injecting some balance into
the equation. More specifically, perhaps the law could shift the burden of the last twenty
years from the user to the copyright owner, so that at least in some instances, copyright
owners would have to assert their continued interest in exploiting the work by registering
with the Copyright Office in a timely manner. And if they did not, the works would
enter the public domain.
</i></blockquote>
This both is and is not big news.  It <i>is</i> big news in that this would be the first time that the US ever <i>shortened</i> copyright terms.  From a symbolic standpoint, that is a big deal.  It is also important in that it, at least, opens the door to returning to a system in which some portion of the copyright term requires proactive renewal.  It's <i>not</i> big news in the fact that life+50 is already insanely long and any competent copyright system should require proactive renewals way, way, way earlier in the process.  As we've pointed out <a href="http://www.techdirt.com/articles/20110207/02222612989/if-artists-dont-value-copyright-their-works-why-do-we-force-it-them.shtml">in the past</a>, prior to the 1976 Act, most creators <b>did not</b> even bother to renew their copyrights after the first 28 years.
<center>
<img src="http://i.imgur.com/BwpBg.png" width=400/>
</center>
If the copyright holders themselves don't value the copyright past 28 years, why are we automatically giving it to them for much longer.  Now, obviously, Pallante is focusing on life+50 because that's what's in the Berne Convention, but we shouldn't let the Berne Convention stop us from doing what's right.  And, some have suggested that you could potentially tiptoe around the Berne Convention by allowing renewals up to life+50, but not automatically going all the way there.
<br /><br />
Next up, <b>opting out</b> of various collective licensing deals.  Tragically, I had hoped she would also talk about the ability to "opt out" of copyright altogether, which isn't really possible for the most part.
<br /><br />
She discusses <b>making copyright law more accessible</b>.  On this point, we agree entirely.
<blockquote><i>
Finally, as noted earlier, the copyright law has become progressively unreadable
during the very time it has become increasingly pervasive.
<br /><br />
When the Copyright Act was enacted, it contained seventy-three sections and the
entire statute was fifty-seven pages long. Today, it contains 137 sections and is 280
pages long, nearly five times the size of the original. As former Register Marybeth Peters
observed in 2007, the current &#8220;copyright law reads like the tax code, and there are
sections that are incomprehensible to most people and difficult to me.&#8221;
<br /><br />
This is not merely a paradox; it is damaging to the rule of law. The next great
copyright act should be as accessible as possible.
</i></blockquote>
From there, she discusses "the policy process" itself, with a few head scratchers.  In particular, I found it bizarre, and completely unsupportable, that she claimed that content from online business "can't compete with that from traditional media businesses."  Really now?  What is that possibly based on?  And, even if you can make that statement today, will it be true next year? Five years from now?  20 years from now?  Doubtful, at best.  And, really, is the distinction even relevant any more?  All businesses are online businesses today or they don't exist.
<br /><br />
Similarly, she jumps on the <a href="http://www.guardian.co.uk/technology/2010/may/18/information-wants-to-be-free" target="_blank">silly trope</a> that "information wants to be free."  This statement tends only to be used by those who wish to mock the role of free information in the wider ecosystem, not by the digital natives it is often ascribed to.  But, Pallante points to it, and then argues:
<blockquote><i>
But in order to have a robust knowledge economy, we need content that is
both professional and informal; we need content that consists of information,
commentary, and entertainment, or sometimes all of these combined into one; and we
need content that is licensed, content that is free, or in some cases, content that is licensed
for free.
</i></blockquote>
Whether or not all of that is actually <i>needed</i> may be an open question, but even if we assume it's true, I find the implication that "professional content" needs be covered by copyright, fee-based and "licensed" to be highly questionable.  I produce professional content for a living -- you're reading it right here, and yet we dedicate it to the public domain.   While later on she does admit that perhaps some artists prefer "receiving credit to receiving payment" or to use Creative Commons and that "the law must be flexible enough to accommodate these decisions," it still feels like she is suggesting that such uses are "amateur" and "informal" rather than professional.
<br /><br />
I would think that if we're doing a big rethink on copyright law, perhaps one key starting point would be to address the myth that copyright is the only way to make money from producing content.  If we're starting with that myth, then we're going to end up in the wrong spot.
<br /><br />
Finally, Pallante does, in fact, push for greater powers for the Copyright Office, effectively promoting it to full agency status, like the Patent and Trademark Office.  While you can understand the desire there, and it is true that it might help the Copyright Office make some basic changes in policy on the fly without Congress (increasing flexibility), I think there is quite a reasonable fear that this will also lead to much greater regulatory capture.  The revolving door between the entertainment industry and the Copyright Office has been well documented in the past, and we've seen how the Patent Office has tended to support gradual expansionism as well.  Raising the Copyright Office up only seems likely to lead it to support more maximalism, instead of more reasonable policies.
<br /><br />
In the end, she is thinking big, but there's a lot to worry about in here, along with a few good things.  Perhaps of even greater concern than Pallante's thoughts, is that, for the time being any process in Congress will be lead by Rep. Bob Goodlatte, who chairs the House Judiciary Committee.  While Goodlatte is slightly better than Lamar Smith -- and, as he constantly reminds people in Silicon Valley, his son works at Facebook, Goodlatte has a long history of siding with the maximalists, and having little grasp of the importance of the public benefit in copyright.
<br /><br />
Also telling is that nowhere in the entire speech did she mention anything about SOPA.  Pallante was an unabashed supporter of SOPA, testifying before the House Judiciary Committee in favor of the bill back in 2011.  The fact that the public rose up against it highlights how these issues have become a significant concern to the public, and one would hope that it would lead Pallante to make clear that any such discussion needs to take that into account.<br /><br /><a href="http://www.techdirt.com/articles/20130318/11114922368/more-details-copyright-register-maria-pallantes-call-comprehensive-forward-thinking-flexible-copyright-reform.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130318/11114922368/more-details-copyright-register-maria-pallantes-call-comprehensive-forward-thinking-flexible-copyright-reform.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130318/11114922368/more-details-copyright-register-maria-pallantes-call-comprehensive-forward-thinking-flexible-copyright-reform.shtml?op=sharethis">Email This Story</a><br />
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<pubDate>Tue, 5 Feb 2013 08:36:07 PST</pubDate>
<title>EU Commission Wants More Copyright Licensing, But Not Creative Commons Or Fair Use</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130204/12241621879/eu-commission-wants-more-copyright-licensing-not-creative-commons-fair-use.shtml</link>
<guid>http://www.techdirt.com/articles/20130204/12241621879/eu-commission-wants-more-copyright-licensing-not-creative-commons-fair-use.shtml</guid>
<description><![CDATA[ While there's no doubt that copyright licensing is a mess that is often holding back key innovations online, it's a bit worrisome to hear about how the EU Commission is exploring the issue.  It has set up a "Licenses for Europe" campaign, but designed in a way that <a href="http://www.laquadrature.net/en/the-eu-commissions-outrageous-attempt-to-avoid-copyright-reform" target="_blank">locks in a predetermined conclusion</a> that the only way to deal with locked up content in Europe is to get the big copyright holders to agree to more easily determined licenses.  Again, this is not necessarily a bad thing, but it ignores the larger picture: including the fact that <i>most content produced today</i> is coming from individuals and not as a part of a larger industry.
<br /><br />
La Quadrature du Net explains why the whole setup is a problem:
<blockquote><i>
Instead of planning for a broad reform that would break away with full-on repression of cultural practices based on sharing and remixing, the Commission is setting up a parody of a debate. 75% of the participants to the working-group concerning &#8220;users&#8221; are affiliated with the industry and the themes and objectives are defined so as to ensure that the industry has its way and that nothing will change. Through this initiative, the EU Commission shows its contempt of the many citizens who participated in defeating ACTA and are still mobilized against repressive policies.
<br /><br />
La Quadrature du Net is registered to participate in a working-group of the new &#8220;Licences for Europe&#8221; initiative called &#8220;User-Generated Content&#8221;. Everything in its name, theme and mission is biased to fit the views of the entertainment industry &#8211; which represents more than 3/4 of the participants! &#8211; The working group is meant to focus on &#8220;User-Generated Content&#8221;, as if works created by Internet users were a different category from &#8220;real&#8221; cultural works; as if today, everyone was not on an equal footing to participate in culture. The Commission's framing of discussion is subservient to major industrial actors who keep attacking their users' cultural practices and ignore the urgent need to reform copyright.
</i></blockquote>
Just starting out from the point of view, that "user generated content" is somehow a different category than "content," itself is problematic, but much more problematic is the fact that there is no interest from this effort in things that would actually help out on a large scale: such as recognizing that copyright doesn't make much sense for many of these works, and that sharing and building on others' works is a part of how culture works (and that "licenses" can often get in the way of such things).  In fact, the EU Commission made sure that no discussions of things like fair use were to be discussed, since the point of the discussion was just "licenses."
<blockquote><i>
The working group is supposed to work only on licensing &#8211; contracts by the industry in which it controls everything &#8211; <b>rather than discuss new exceptions to copyright</b>, which would represent the general interest by allowing not-for-profit sharing and remixing of digital works.
</i></blockquote>
This is really unfortunate.  Because when you start from the position of licensing everything, you ignore the fact that <i>not everything needs to be licensed</i>. And, as a result, you end up with over-licensing, which is a real problem.  Apparently, things got even worse once the sessions began.  Even though there were rules in place designed to keep the details of the proceedings mostly secret, some indications from inside were that things were not going well, thanks to some tweets from COADEC.
<br /><br />
Industry reps seemed to have absolutely no interest in discussing things like fair use or other "exceptions" to copyright.  Someone brought up fair use, and apparently the response was that <a href="https://twitter.com/Coadec/status/298435311036420098" target="_blank">"fair use is from the 20th century"</a> and then <a href="https://twitter.com/Coadec/status/298442814780485632" target="_blank">annoyance at the fact that "exceptions" were even being discussed</a> since "we should just talk about licenses."  Moderators obliged by <a href="https://twitter.com/Coadec/status/298450307657125888" target="_blank">shutting down</a> any talk of exceptions.
<br /><br />
Someone tried to point out that this seemed to be putting the cart before the horse, asking whether or not there has been any evaluation done as to whether or not licensing was really the best solution, and the moderator responded <a href="https://twitter.com/Coadec/status/298470642083323904" target="_blank">"well we want to deliver something."</a>  We've heard this before, many times.  Politicians have no interest in making sure the solution they're pushing for makes sense or works, so long as they're seen as "doing something."  We saw that nearly a decade ago when Senator Orrin Hatch tried to push his INDUCE Act, and when quizzed about it, he admitted that it might cause problems, but he <a href="http://www.techdirt.com/articles/20040722/1559247_F.shtml">had to "do something"</a> or else.
<br /><br />
Further making a mockery of the whole thing, someone brought up Creative Commons licensing... and <a href="https://twitter.com/Coadec/status/298456234510671872" target="_blank">that conversation was <i>also shut down</i></a> as a "certain industry" claimed it was "too early" to discuss such things.  Apparently, this "certain industry" doesn't realize that Creative Commons is a form of licensing too.  Like too many maximalists, they consider Creative Commons not to be a form of licensing, but another form of "copyright exceptions," (which it is not).
<br /><br />
All in all, the whole session appears to have made a mockery of any attempt at real, meaningful copyright reform.  One more comment from the session sort of highlighted the whole problem.  As the moderator and people from "certain industries" shut down all talk of exceptions, and focused solely on how to set up a system with more and more licenses, an attendee asked a <a href="https://twitter.com/Coadec/status/298468558336323584" target="_blank">simple, pointed question</a>:
<blockquote><i>
Attendee asks, who gives a licence for mining the Internet?
</i></blockquote>
And that, right there, encapsulates the entire problem.  If you think that we shouldn't be talking about exceptions, and that everything requires licensing, what you're really saying is that search engines are illegal.  Searching the internet without "permission" is illegal.  And that's the world that the EU Commissions seems to think we should be heading towards.
<br /><br />
Yes, locked up content is a problem, and fixing licensing is <i>one part</i> of the solution, but it <b>cannot</b> be done absent a more comprehensive look at the issues of the internet and copyright today.  Completely ignoring things like fair use or other "exceptions" to copyright (I prefer to think of them as <a href="http://www.techdirt.com/articles/20120719/01482519756/we-should-stop-calling-fair-use-limitation-exception-to-copyright-its-right-public.shtml">the rights of the public</a> rather than "exceptions") means you get bad plans with bad results that border on the ridiculous.<br /><br /><a href="http://www.techdirt.com/articles/20130204/12241621879/eu-commission-wants-more-copyright-licensing-not-creative-commons-fair-use.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130204/12241621879/eu-commission-wants-more-copyright-licensing-not-creative-commons-fair-use.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130204/12241621879/eu-commission-wants-more-copyright-licensing-not-creative-commons-fair-use.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>that'll-make-the-lawyers-happy</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130204/12241621879</wfw:commentRss>
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<pubDate>Wed, 16 Jan 2013 20:03:00 PST</pubDate>
<title>GEMA Vs. YouTube Hits The Three Year Mark As Rate Negotiations Fall Through Again</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20130113/21374021652/gema-vs-youtube-hits-three-year-mark-as-rate-negotiations-fall-through-again.shtml</link>
<guid>http://www.techdirt.com/articles/20130113/21374021652/gema-vs-youtube-hits-three-year-mark-as-rate-negotiations-fall-through-again.shtml</guid>
<description><![CDATA[ It looks like the long-running dispute between <a href="http://www.techdirt.com/blog/?company=gema" target="_blank">GEMA</a>, Germany's brutish performance rights organization, and YouTube isn't ending anytime soon. <a href="http://www.reuters.com/article/2009/04/23/us-germany-youtube-idUSTRE53M4WJ20090423" target="_blank">This licensing battle goes back to 2009</a>, when Google's contract with GEMA ended and the German PRO asked for $0.17 <i>per view</i>, a rate Google claimed was "without comparison in the history of online music." (By comparison. YouTube was paying PRS, the UK performance rights group, <a href="http://s3.amazonaws.com/zanran_storage/shop.informatm.com/ContentPages/10011915.pdf#page=14" target="_blank">$0.0034 per view in 2009</a>.) GEMA countered that it had offered to take $0.01 per stream, but wanted YouTube to cough up more usage data in exchange for the cut rate.
<br /><br />
<a href="http://techcrunch.com/2013/01/11/youtubes-three-year-copyright-battle-with-german-music-rights-agency-rumbles-on-as-gema-breaks-off-negotiations/" target="_blank">Once this initial negotiation broke down, things went from frosty to litigious</a>.
<blockquote>
<i>GEMA went on to sue YouTube in <a href="http://www.gigmag.co.uk/news.php?id=293" target="_blank">a 2010 test case</a> for distributing copyrighted material without permission &mdash; holding it responsible for copyrighted material uploaded by its users. Then in April last year <a href="http://www.huffingtonpost.com/2012/04/20/youtube-germany-copyright_n_1440767.html" target="_blank">a German court ruled</a> that YouTube must install software filters to prevent users uploading content whose rights GEMA holds.</i>
</blockquote>
After a couple of lawsuits, GEMA returned to the "negotiating" table, this time with an offer a bit more in line with reality.
<blockquote>
<i><a href="http://www.welt.de/wirtschaft/webwelt/article112687207/Gema-bricht-die-Verhandlungen-mit-YouTube-ab.html" target="_blank">Die Welt</a> reports that GEMA wants the German Patent and Trademark Office to arbitrate on whether its proposed rate of 0.375 cents per stream is appropriate &mdash; but YouTube is arguing for a lower rate.</i>
</blockquote>
This doesn't really resemble a negotiation at this point. GEMA offers, Google counteroffers and all of a sudden, the home team's PTO is going to decide whether GEMA's preferred rate is "appropriate." But that's not all: GEMA is also suing YouTube to the tune (pun really not intended) of <a href="http://www.thelocal.de/sci-tech/20130111-47273.html#.UPOGVuREGSp" target="_blank">&euro;1.6 million for the alleged unlicensed use of 1,000 songs from its catalog</a>.
<br /><br />
Not only that, but another German court is in the process of defining YouTube's role on the web, something that could potentially see YouTube remove itself entirely from Germany.
<blockquote>
<i>A Hamburg court is already arbitrating another row between GEMA and YouTube over how the platform should be defined. GEMA claims that YouTube is a content provider whose business model is built on content that is subject to royalties. YouTube, on the other hand, says it is a hosting service which simply makes space available to its users.</i>
</blockquote>
The push here is to remove any sort of "safe harbor" (such as it exists in German law) and hold YouTube entirely responsible for <i>anything</i> uploaded by its users. Framing YouTube as a content provider puts it right in the legal crosshairs, which is where GEMA wants it. Despite the efforts made by YouTube to curtail infringement, GEMA still wants to see it pay more.
<br /><br />
Of course, GEMA's doing this "for the artists." And those artists must be thrilled, what with the world's most popular video streaming site serving up this message, rather than actual videos, all too frequently.<br /><br />
<center><img alt="" src="http://i.imgur.com/W5OlB.png" style="width: 500px; height: 301px;" /></center>
<br />
And wouldn't you know it, GEMA also has a problem with the message posted by YouTube, which has become visual shorthand for the German YouTube Experience.
<br />
<blockquote>
<i>GEMA is demanding that YouTube take down the on-screen notice blocking music videos in Germany that blames GEMA for the impasse. In November last year, GEMA head Harald Heker accused YouTube of deliberately misleading German users with the notice.</i>
<br /><br />
<i>"The notice about GEMA is being posted wilfully, purely to stir opinion," he told WirtschaftsWoche magazine at the time. "YouTube is trying to awaken the false impression that the failure to license is GEMA's responsibility. That is simply wrong."</i>
</blockquote>
This sounds familiar. <a href="http://www.techdirt.com/articles/20120801/23202019914/more-anti-youtube-whining-youtube-complies-with-our-takedown-requests-just-to-make-us-look-bad.shtml" target="_blank">Those blocking or taking down videos</a> for various violations seem to think that YouTube should keep them free from criticism, too. Considering YouTube has already negotiated licenses with various other PROs, including ASCAP and the <a href="http://www.techdirt.com/blog/?company=prs" target="_blank">infamous PRS</a>, it certainly seems likely that GEMA's contentious relationship with, well, just about everyone, <i>might</i> have something to do with the "failure to license." GEMA can complain about the "impression" this message makes, but if it were <i>solely</i> up to Google, German citizens wouldn't be seeing this message <i>at all</i>. Here's Google's statement:
<blockquote>
<i>YouTube believes that rights holders and artists should benefit from their work. We have dozens of collection society deals in place across more than 45 countries because we provide an important source of income for musicians and a platform where new artists can be discovered and promoted. Music labels are generating hundreds of millions of dollars on YouTube every year. <b>Artists, composers, authors, publishers, and record labels in Germany are missing this opportunity as a result of GEMA&rsquo;s decisions</b>. We remain committed to finding a solution with GEMA compatible with YouTube&rsquo;s business model so that we can again provide a source of revenue for musicians and a vibrant platform for music lovers in Germany.</i>
</blockquote>
That's the crux of the situation. The artists, composers, etc. aren't just <i>missing</i> these opportunities -- they're not even <i>being allowed</i> to <i>have</i> these opportunities, thanks to GEMA's insistence on combative, hardline tactics. GEMA hasn't done much for the artists it "represents," but it's doing a great job turning Germany into a cultural island.<br /><br /><a href="http://www.techdirt.com/articles/20130113/21374021652/gema-vs-youtube-hits-three-year-mark-as-rate-negotiations-fall-through-again.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130113/21374021652/gema-vs-youtube-hits-three-year-mark-as-rate-negotiations-fall-through-again.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130113/21374021652/gema-vs-youtube-hits-three-year-mark-as-rate-negotiations-fall-through-again.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>quite-possibly,-GEMA-hates-musicians,-Germans-and-anything-Google-related</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130113/21374021652</wfw:commentRss>
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<pubDate>Fri, 21 Dec 2012 15:05:19 PST</pubDate>
<title>Apple's Blocks Popular Kickstarter Project [Updated]</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121221/13564421472/apples-blocks-popular-kickstarter-project.shtml</link>
<guid>http://www.techdirt.com/articles/20121221/13564421472/apples-blocks-popular-kickstarter-project.shtml</guid>
<description><![CDATA[ <i><b>Update</b>: And... after a bunch of negative publicity, Apple has <a href="http://arstechnica.com/apple/2012/12/apple-lifts-block-on-combo-30-pinlightning-charging-accessories/" target="_blank">reversed course and lifted the ban</a>.  Original article below...</i>
<br /><br />
A bunch of folks have been submitting this story about Apple <a href="http://venturebeat.com/2012/12/20/apple-kills-a-kickstarter-project-portable-power-project-pop-refunding-139170-to-backers/" target="_blank">refusing to allow a company, Edison Junior, to offer its Lightning connector</a> as part of its POP portable power station, which had run a <a href="http://www.kickstarter.com/projects/siminoff/pop-the-intersection-of-charging-and-design" target="_blank">very successful Kickstarter campaign earlier this year</a>.  
<center>
<a href="http://imgur.com/g1JKE"><img src="http://i.imgur.com/g1JKE.jpg" width=450 /></a>
</center>

Edison Junior is returning everyone's money -- even covering credit card fees and Kickstarter's fees (though it's asking Kickstarter to give that back as well), but is reasonably angry.  According to VentureBeat:
<blockquote><i>
&#8220;We are pissed,&#8221; Edison Junior CEO Jamie Siminoff told me on the phone today. &#8220;I think they are being a bunch of assholes, and I think they&#8217;re hurting their customers.&#8221;
</i></blockquote>
Understandable.  The company plans to still build versions of the device that focus on the Android market, and which might possibly work with Apple products if people use adapters, but it's certainly not ideal.
<br /><br />
The whole thing, of course, is silly, but representative of the unfortunate world we live in today where companies lock up their products.  In the past, building alternate versions or compatible accessories, and reverse engineering parts, was generally considered part of how an ecosystem was built up around your market.  But Apple's infatuation with over-controlling its market only serves to piss off Apple <i>customers</i> who <i>want</i> a solution like this.  Unfortunately, due to the nature of using security chips and claiming patents on everything, rather than just being a simple reverse engineering challenge, Apple is effectively able to use patent and copyright laws to block any such innovation.<br /><br /><a href="http://www.techdirt.com/articles/20121221/13564421472/apples-blocks-popular-kickstarter-project.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121221/13564421472/apples-blocks-popular-kickstarter-project.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121221/13564421472/apples-blocks-popular-kickstarter-project.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>unfortunate</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121221/13564421472</wfw:commentRss>
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<pubDate>Mon, 19 Nov 2012 05:41:45 PST</pubDate>
<title>Samsung Wants To See The Details Of Apple's HTC Settlement</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121117/01181921082/samsung-wants-to-see-details-apples-htc-settlement.shtml</link>
<guid>http://www.techdirt.com/articles/20121117/01181921082/samsung-wants-to-see-details-apples-htc-settlement.shtml</guid>
<description><![CDATA[ So, last week we wrote about Apple <a href="http://www.techdirt.com/blog/wireless/articles/20121112/00494121010/htc-apple-settle-patent-dispute-perhaps-tim-cook-realizes-patent-fights-are-waste.shtml">settling</a> its patent fight with HTC -- though the terms were secret.  It certainly sounded like it wasn't that much money, as HTC seemed to brush off the financial concerns.  That appears to have caught the attention of Samsung's lawyers, who have now <a href="http://au.ibtimes.com/articles/405897/20121117/samsung-goes-after-htc-deal-to-undercut-apple-filing.htm#.UKdTZ4fLQb0" target="_blank">filed a motion asking the court to make Apple reveal the terms of its HTC settlement</a>.  Perhaps more important than the amount, Samsung wants to see if the deal includes all of Apple's patents, since there are some that Apple has been insisting it would never license as part of its argument as to why there needs to be an injunction blocking the sale of Samsung devices, rather than just monetary damages.  It would undermine Apple's case if it then turned around and licensed those patents to HTC.  As the linked article above notes, it would be surprising if HTC agreed to a deal that <i>didn't</i> include those patents.  So the end result of the HTC deal may be that Apple just bargained away some of its ability to get injunctions against Samsung's devices.<br /><br /><a href="http://www.techdirt.com/articles/20121117/01181921082/samsung-wants-to-see-details-apples-htc-settlement.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121117/01181921082/samsung-wants-to-see-details-apples-htc-settlement.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121117/01181921082/samsung-wants-to-see-details-apples-htc-settlement.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>just-curious...</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121117/01181921082</wfw:commentRss>
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<item>
<pubDate>Mon, 12 Nov 2012 10:35:03 PST</pubDate>
<title>UK Newspaper Licencing Agency Says Musicians Need To Pay To Quote Reviews</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121109/13405920994/uk-newspaper-licencing-agency-says-musicians-need-to-pay-to-quote-reviews.shtml</link>
<guid>http://www.techdirt.com/articles/20121109/13405920994/uk-newspaper-licencing-agency-says-musicians-need-to-pay-to-quote-reviews.shtml</guid>
<description><![CDATA[ I wonder how copyright maximalist musicians feel about this particular story.  Techdirt reader <a href="http://www.techdirt.com/user/glassneedles">glassneedles</a> alerts us to an offline (!?!) news article in the publication Private Eye, about how the UK's Newspaper Licensing Agency (NLA) has declared that musicians who quote positive reviews from newspapers <i>need to pay &pound;1,250 per year</i> (which would allow them to quote up to 50 reviews).  Seriously.  Apparently, the NLA went around to various music agents and managers a while ago, and they (quite reasonably) ignored the threats.  That just made the NLA mad.
<blockquote><i>
... the phoney war has turned into a real one, with the NLA chasing agents, threatening legal action and demanding not just license payments for future quotes but also retrospective payments for past ones.
<br /><br />
The amounts are crazily excessive for the modest, shoestring operations that most classical music management and PR companies tend to be, with &pound;7,000-&pound;8,000 a typical demand.
</i></blockquote>
For folks who help market a number of musicians, the NLA claims are apparently adding up to being fairly serious.
<blockquote><i>
The most outrageous example... concerns a small PR company called ElevenTenths, which is effectively one woman, Claire Willis, working form a spare bedroom....  Poor Ms. Willis was collared by the NLA a few months ago, required to fill in forms about her clients and activities, and then received a bill for &pound;23,500.
</i></blockquote>
Willis complained and apparently the NLA "backed down" and offered a deal for "only" &pound;1,588.45.  In the past, we had written about the NLA <a href="http://www.techdirt.com/articles/20120214/11372917759/meltwater-partially-wins-one-lawsuit-gets-sued-ap-another-daring-to-aggregate-news.shtml">winning</a> a lawsuit against news aggregators, so perhaps it's now turned to those who quote its reviews as a new, highly questionable, revenue stream.
<br /><br />
I wonder if folks in the UK are regretting the decision, in the Hargreaves report, that the UK doesn't need an explicit fair use rule.<br /><br /><a href="http://www.techdirt.com/articles/20121109/13405920994/uk-newspaper-licencing-agency-says-musicians-need-to-pay-to-quote-reviews.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121109/13405920994/uk-newspaper-licencing-agency-says-musicians-need-to-pay-to-quote-reviews.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121109/13405920994/uk-newspaper-licencing-agency-says-musicians-need-to-pay-to-quote-reviews.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>live-by-copyright,-die-by-copyright</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121109/13405920994</wfw:commentRss>
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<pubDate>Tue, 6 Nov 2012 05:42:40 PST</pubDate>
<title>Another Key Motorola vs. Apple Patent Trial Tossed Out By A Judge Frustrated With Apple's Games</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121105/16375220940/another-key-motorola-vs-apple-patent-trial-tossed-out-judge-frustrated-with-apples-games.shtml</link>
<guid>http://www.techdirt.com/articles/20121105/16375220940/another-key-motorola-vs-apple-patent-trial-tossed-out-judge-frustrated-with-apples-games.shtml</guid>
<description><![CDATA[ Earlier this year, in a key patent fight between Apple and Motorola Mobility, Judge Richard Posner, who was "slumming" it down in the district courts for a bit, <a href="http://www.techdirt.com/articles/20120608/11584619251/judge-posner-dumps-ridiculous-patent-fight-between-apple-motorola-as-contrary-to-public-interest.shtml">dismissed</a> that case with prejudice while <a href="http://www.techdirt.com/blog/wireless/articles/20120623/00213319445/judge-posner-rips-apart-apples-patent-litigation-strategy-being-really-annoyed-is-no-reason-to-sue.shtml">slamming Apple</a> for its patent litigation strategy.  Now, it appears that we have something of a surprise repeat situation, as a different judge in a different patent fight between the same parties has also <a href="http://www.fosspatents.com/2012/11/judge-cancels-trials-tosses-apples.html" target="_blank">dismissed the case with prejudice</a> after angrily teeing off on Apple for its litigation strategy.  Most of the reasoning can be found in an opinion the judge released late last week.
<br /><br />
The key issue was that Apple was pushing the court to determine what the FRAND (Fair, Reasonable and Non-Discriminatory) rate was for the patents in question.  Motorola wanted 2.25% of every iPhone sold.  Apple was pushing for much lower.  However, as the judge explored whether or not the court should determine a rate, Apple was asked if it would abide by whatever rate the court set -- leading it to say that it would only do so if the rate were under $1 per phone.  This seriously ticked off the judge, who noted that it would take a ton of work for the court to come up with what it believed to be a FRAND rate -- and if it was only doing that so Apple could then use it as a bargaining chip in future litigation, that just didn't seem worth it.
<blockquote><i>
Despite its position, Apple maintains that it is entitled to specific performance in the form of the court determining what a FRAND rate is for
Motorola's patents. At the final pretrial conference, I asked Apple to explain why it believed the court should determine a FRAND rate even though the rate may not resolve the parties' licensing or infringement disputes. I questioned whether it was appropriate for a court to undertake the complex task of determining a FRAND rate if the end result would be simply a suggestion that could be used later as a bargaining chip between the parties. Apple responded that the rate would resolve the dispute in this particular case, namely, whether Motorola's license offer was FRAND and if not, what the rate should have been.
<br /><br />
Apple's response was not satisfactory and did not assuage my concerns about determining a FRAND rate that may be used solely as a negotiating tool between the parties. After further consideration, I believe it would be inappropriate to grant Apple's clarified request for specific performance.
</i></blockquote>
Apple made a last ditch to salvage the case -- and even to argue that if the case is dismissed, it should be dismissed without prejudice, so it can refile.  However, the judge dumped the case entirely, with prejudice, meaning that Apple is out of luck here.  It can, and almost certainly will, appeal the dismissal, but the judge is clearly not at all pleased with Apple's actions here.  The judge also had some choice words for Apple concerning its argument that Motorola's actions have "irreparably" harmed the company.
<blockquote><i>
Apple's allegations of "irreparable harm" have at least two problems. The first problem is that Apple's request for specific performance in the form of court declaration of a FRAND rate without any obligation by Apple to accept the rate would not prevent Motorola from suing
Apple for patent infringement and requesting injunctive relief. In other words, if Apple refuses to be bound by the rate determined by the court, Motorola could continue to sue Apple for patent infringement and request injunctive relief.
<br /><br />
The second problem is that Apple has provided no reason why its injuries would not be remedied by an award of money damages.
</i></blockquote>
Basically, Apple's playing games here, and the judge (the second one in a row in such a case) is not at all happy about it.  Apple may want to revisit its legal strategy.
<br /><br />
Of course, just as this case is getting thrown out, it's been leaking that the FTC's main focus in its planned <a href="http://www.techdirt.com/articles/20121012/13273420692/ftc-supposedly-getting-ready-to-go-after-google-antitrust-violations.shtml">antitrust</a> attack on Google will be... <a href="http://newsandinsight.thomsonreuters.com/Legal/News/2012/11_-_November/FTC_staff_recommends_Google_be_sued_over_patents_-_report/" target="_blank">Motorola Mobility and the licensing rates</a> for these patents.  I do admit that I think it's a silly move for Google to try to continue this path of forcing other companies to pay high fees on patents (and seems to go very much against Google's stated position on patents historically), but taking that to the level of antitrust seems like an odd stance.  We'll have to see when the actual complaint comes out, but seeing as one of the key cases related to this just got thrown out, it would seem to weaken the FTC's argument somewhat...<br /><br /><a href="http://www.techdirt.com/articles/20121105/16375220940/another-key-motorola-vs-apple-patent-trial-tossed-out-judge-frustrated-with-apples-games.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121105/16375220940/another-key-motorola-vs-apple-patent-trial-tossed-out-judge-frustrated-with-apples-games.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121105/16375220940/another-key-motorola-vs-apple-patent-trial-tossed-out-judge-frustrated-with-apples-games.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>bye-bye</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121105/16375220940</wfw:commentRss>
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<pubDate>Wed, 24 Oct 2012 05:09:24 PDT</pubDate>
<title>Stupid Copyright Licensing Tricks Strike Again: NBC Can't Show Viral SNL Pandora Intern Clip</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121023/17471920805/stupid-copyright-licensing-tricks-strike-again-nbc-cant-show-viral-snl-pandora-intern-clip.shtml</link>
<guid>http://www.techdirt.com/articles/20121023/17471920805/stupid-copyright-licensing-tricks-strike-again-nbc-cant-show-viral-snl-pandora-intern-clip.shtml</guid>
<description><![CDATA[ Ah, stupid copyright licensing rules block perfectly normal activities yet again.  This past weekend, Saturday Night Live ran a mildly amusing skit involving a power outage at internet streaming radio company, Pandora, in which an intern -- played by Bruno Mars -- has to step in and sing a variety of songs to keep the streams running.  It's a slightly hacky trick to show off Mars' singing mimicry, but done pretty well.  While NBC has had a somewhat ridiculous <a href="http://www.techdirt.com/articles/20070507/005259.shtml">love/hate affair</a> with putting SNL clips online. Over the past few years, it's finally realized that viral clips are an important promotional vehicle for the show.  Yet... this clip <a href="http://allthingsd.com/20121022/why-nbc-cant-make-money-from-its-latest-saturday-night-live-viral-video/" target="_blank">is not online on NBC.com or Hulu</a>, where SNL normally puts its clips... because (of course) music licensing online makes it an impossibility.  The TV shows have licenses for TV broadcast, but they don't apply to internet streams (which is why you see some shows change out their music on Hulu).  Yet, here, the clip doesn't work at all without the actual music.
<br /><br />
Of course, this is the internet, so the clip was quickly uploaded all over the place, and while some of those sources have already seen it <a href="http://allthingsd.com/20121021/live-from-pandoras-headquarters-its-saturday-night/" target="_blank">pulled down</a>, others still seem to have it up.  At the time of this posting, eBaum's World appears to have a <a href="http://www.ebaumsworld.com/video/watch/82865241/?lt=em" target="_blank">working copy</a>.
<center>
<iframe src="http://www.ebaumsworld.com/media/embed/82865241" width="567" height="345" frameborder="0"></iframe>
</center>
Of course, having now seen it, it would seem like there's a pretty strong parody defense claim if anyone argued they were infringing.  Mars parodies many of the songs, changing or garbling the lyrics, which is a big part of the joke.  But, of course, that would require NBC Universal to actually have the guts to fight in court for fair use -- and even just thinking that I think I heard some laughter coming from <a href="http://www.techdirt.com/articles/20070621/004352.shtml">Rick Cotton's</a> offices.
<br /><br />
The end result, though, is nothing but stupidity.  NBC doesn't get to show the clip more widely and get the promotional benefits.  It also doesn't get the ad revenue that would have gone alongside its own hosted clips.  Instead, other sites get the attention and the traffic.<br /><br /><a href="http://www.techdirt.com/articles/20121023/17471920805/stupid-copyright-licensing-tricks-strike-again-nbc-cant-show-viral-snl-pandora-intern-clip.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121023/17471920805/stupid-copyright-licensing-tricks-strike-again-nbc-cant-show-viral-snl-pandora-intern-clip.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121023/17471920805/stupid-copyright-licensing-tricks-strike-again-nbc-cant-show-viral-snl-pandora-intern-clip.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>but-the-rest-of-the-internet-can</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121023/17471920805</wfw:commentRss>
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<pubDate>Mon, 10 Sep 2012 10:33:00 PDT</pubDate>
<title>EU Commission VP Neelie Kroes Explains Why Copyright Is Broken: It Was Made In An Age Of Gatekeepers</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120910/08183620328/eu-commission-vp-neelie-kroes-explains-why-copyright-is-broken-it-was-made-age-gatekeepers.shtml</link>
<guid>http://www.techdirt.com/articles/20120910/08183620328/eu-commission-vp-neelie-kroes-explains-why-copyright-is-broken-it-was-made-age-gatekeepers.shtml</guid>
<description><![CDATA[ While the EU Commission has been much more copyright maximalist at times (it was the major driver behind ACTA in Europe), some on the Commission have been pushing back on such views for a while.   Neelie Kroes, who is VP of the EU Commission and in charge of "the digital agenda," has been speaking out on these issues for a while.  Last year, she pointed out that <a href="http://www.techdirt.com/articles/20111121/07305616860/eu-commissioner-kroes-copyright-is-tool-to-punish-withhold-new-business-models-not-more-enforcement-needed.shtml">new business models</a>, rather than greater enforcement was the right path forward.  She's also spoken out <a href="http://www.techdirt.com/articles/20120419/04184418556/eu-commissioner-kroes-speaks-out-internet-openness-says-we-cannot-allow-isp-disconnects.shtml">against</a> kicking people offline and in favor of open innovation and creation.
<br /><br />
She's now given another talk on copyright issues, in which she notes that <a href="http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/12/592&#038;format=HTML&#038;aged=0&#038;language=EN&#038;guiLanguage=en" target="_blank">the world has changed a great deal</a> in the last 14 years since Europe last reviewed proposals to update its Copyright Directive.  While many maximalists would say the same thing and focus on the struggles of particular subsector -- the record labels -- Kroes properly notes that the <i>real</i> change (which is, in part, why the labels have struggled) is that the world has shifted from one in which gatekeepers control the means of production and distribution, into one where everyone can create and distribute works:
<blockquote><i>
The last major EU copyright instrument, the Copyright Directive, was adopted in 2001. The Commission proposals it was based on date back to 1998.
<br /><br />
Let's remind ourselves what's happened since then.
<br /><br />
In 1998, Mark Zuckerberg was 14. Today, almost one billion people around the world actively use Facebook, to share photos, videos, and ideas.
<br /><br />
In 1998, YouTube didn't exist. Today, one hour of video is uploaded every second.
<br /><br />
In 1998, most people listened to music on the radio, CD or tape. Now digital downloads often overtake conventional sales. New technologies allow downloading or streaming; easily, instantly, wherever you are. Not just to passively listen, but to interact and give feedback, to creators and friends.
<br /><br />
But changes are not limited to the content business, they affect all sectors. Huge changes have taken place in the research area. Today, new scientific discoveries don't just come from new experiments, new drugs, new clinical trials: in fact, now, we can get new results by manipulating existing data. Data and text-mining techniques now lie behind a huge field of research, like human genome projects, potentially life-saving. They could hold the key to the next medical breakthrough, if only we freed them from their current legal tangle. Research activities are not clearly exempted from the copyright rules and there are many different rules in the 27 member states.
<br /><br />
And here's the most important change since 1998. Back then, creation and distribution were in the hands of the few. Now they are in the hands of everyone: democratising innovation, empowering people to generate and exchange ideas, supporting and stimulating huge creativity. 
</i></blockquote>
From there, she notes that copyright may be holding back the real policy issues that they should be focused on -- which isn't just about setting up a system for artists to earn money, but also to "stimulate creativity and innovation, improve consumer choice, promote our cultural heritage and help the sector drive economic growth."  But, with copyright designed for a gatekeeper society, and focused solely on a system for certain artists to get paid, you have a broken system.  As Kroes points out <b>"you have to look at how [copyright] fits into the real world"</b> and she notes that it's clearly lacking.  Everywhere you look, copyright seems to be <i>getting in the way</i> of the important policy issues she mentioned, rather than helping them along:
<blockquote><i>
Well for one thing, you often find that online licensing restrictions make it impossible to buy music legally. Sometimes, for example, you can't buy an MP3 across an EU border.
<br /><br />
We have already made a proposal on orphan works and recently one on collective rights management, to make multi-territorial licensing easier. The licensing proposal is a good step forward to make it easier to legally access the music you love, especially across borders. I hope legislators are able to agree it quickly. But this tackles only one aspect of the problem.
<br /><br />
Because there are other problems too beyond licensing or orphan works. That's why the June 'Compact for Growth and Jobs' makes clear we need to focus also on substantive copyright reform.
<br /><br />
And quite right too. For example, I ask myself, are current copyright rules favourable to potentially life-saving scientific research or do they stand in its way?
<br /><br />
<b>Do they make it easier or harder for people to upload and distribute their own, new creative content? And is that the best way to boost creativity and innovation? </b>
</i></blockquote>
It seems clear that Kroes -- like many of us -- recognizes the unfortunate answer today is "no, copyright does not help those things, it makes it harder for individuals to create content and it's not the best way to boost creativity and innovation."  This is why we're seeing countries finally start to look at true <a href="http://www.techdirt.com/articles/20120905/02125120278/is-tide-turning-bad-copyright-laws.shtml">copyright reform</a>, rather than just doubling down on a broken system.<br /><br /><a href="http://www.techdirt.com/articles/20120910/08183620328/eu-commission-vp-neelie-kroes-explains-why-copyright-is-broken-it-was-made-age-gatekeepers.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120910/08183620328/eu-commission-vp-neelie-kroes-explains-why-copyright-is-broken-it-was-made-age-gatekeepers.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120910/08183620328/eu-commission-vp-neelie-kroes-explains-why-copyright-is-broken-it-was-made-age-gatekeepers.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>times-have-changed</slash:department>
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<pubDate>Thu, 30 Aug 2012 08:31:21 PDT</pubDate>
<title>What Happens To All That Digital Goodness You Have Purchased After You Die?</title>
<dc:creator>Zachary Knight</dc:creator>
<link>http://www.techdirt.com/articles/20120828/16191120192/what-happens-to-all-that-digital-goodness-you-have-purchased-after-you-die.shtml</link>
<guid>http://www.techdirt.com/articles/20120828/16191120192/what-happens-to-all-that-digital-goodness-you-have-purchased-after-you-die.shtml</guid>
<description><![CDATA[ With the proliferation of digitally distributed content, the question of ownership is always looming overhead. Part of that question is what happens to it all after you die. In the physical realm, any books, movies, games and music you purchase throughout your life can be left to your children and other heirs. Things aren't so simple for ebooks and iTunes files that you may have bought.<br />
<br />
<b>Tex D'urt</b> (I see what you did there) sent in this analysis by the Wall Street Journal on the <a href="http://articles.marketwatch.com/2012-08-23/finance/33336852_1_digital-content-digital-files-apple-and-amazon" target="_blank">question of who, if anyone, can inherit your digital library</a>.
<blockquote>
<i>Someone who owned 10,000 hardcover books and the same number of vinyl records could bequeath them to descendants, but legal experts say passing on iTunes and Kindle libraries would be much more complicated.</i><br />
<br />
<i>And one's heirs stand to lose huge sums of money. &ldquo;I find it hard to imagine a situation where a family would be OK with losing a collection of 10,000 books and songs,&rdquo; says Evan Carroll, co-author of &ldquo;Your Digital Afterlife.&rdquo; &ldquo;Legally dividing one account among several heirs would also be extremely difficult.&rdquo;</i></blockquote>
As the report points out, some people can spend as much as $360 a year on digital content. As digital content becomes more wide spread and accepted, that amount could increase quite a bit over the years. But what happens to all that potential 10's of thousands of dollars worth of content when the account holder dies? That is where terms of use statements from Apple and Amazon, among others, makes things complicated.
<blockquote>
<i>Apple (US:AAPL) and Amazon.com (US:AMZN) grant &ldquo;nontransferable&rdquo; rights to use content, so if you buy the complete works of the Beatles on iTunes, you cannot give the &ldquo;White Album&rdquo; to your son and &ldquo;Abbey Road&rdquo; to your daughter.</i><br />
<br />
<i>According to Amazon&rsquo;s terms of use, &ldquo;You do not acquire any ownership rights in the software or music content.&rdquo; Apple limits the use of digital files to Apple devices used by the account holder.</i></blockquote>
It is this non-transferability of the content that is the stickler. If you cannot transfer your digital files to another person then you cannot technically bequeath them to an heir. However, you can still leave your entire account to someone else, but even that might hit some issues if the terms of service don't allow it. Steam is one example of a service that does not allow for the transfer of accounts, even in whole. Valve is willing to kill an account, swallowing up all money spent on it rather than letting someone other than the original owner getting a hold of it.<br />
<br />
Digital distribution is still young and there have not been any real challenges to this sort of situation. The closest ruling I am aware of that might possibly allow such a transfer is the <a href="http://www.techdirt.com/articles/20120703/11345519566/eu-court-says-yes-you-can-resell-your-software-even-if-software-company-says-you-cant.shtml">EU Court ruling</a> declaring that software, which includes a non-transferability clause in its license, can still be resold. So while such a ruling does not answer this specific legal question, it could work as a convincing precedent when it does come up. However, that ruling only holds bearing in the EU. Which means rulings such as the <a href="http://www.techdirt.com/articles/20100912/12212110968.shtml">Vernor vs Autodesk ruling</a>, which denies such first sale rights to US citizens, could prevent such transfers.<br />
<br />
Of course the question of transferability would be moot if people would not buy anything encumbered by DRM or which was tied directly to an account. With DRM-free files, there are fewer issues of who you can bequeath files to as there are no accounts that need to be dealt with. However, there might still be some copyright questions on whether such files can still be legally transferable even if they are technically and easily transferable. Yet, I don't see many creators who release their works in DRM-free form raising much of a stink about it, although their estates might.<br />
<br />
One question not raised in the WSJ piece is one we have talked about in the past when such services go <a href="http://www.techdirt.com/articles/20080929/0004132388.shtml">belly up</a>. Is it really going to matter that your files are not transferable when Apple or Amazon close up shop and banish all your purchased content to the nether world of digital services? That is a more pressing question. While you may live to a ripe old age, the services and technologies you use typically have a far shorter shelf life. What good would it be to leave obsolete files and devices to your children?<br />
<br />
I guess the final question that needs to be asked here is this, "Who wants to die first so that legal precedent can be established on this matter?"<br /><br /><a href="http://www.techdirt.com/articles/20120828/16191120192/what-happens-to-all-that-digital-goodness-you-have-purchased-after-you-die.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120828/16191120192/what-happens-to-all-that-digital-goodness-you-have-purchased-after-you-die.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120828/16191120192/what-happens-to-all-that-digital-goodness-you-have-purchased-after-you-die.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>the-joys-of-the-digital-transition</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120828/16191120192</wfw:commentRss>
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<pubDate>Thu, 23 Aug 2012 09:32:19 PDT</pubDate>
<title>Rep. Nadler Proposes The RIAA Bailout Act Of 2012</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120823/02571620133/rep-nadler-proposes-riaa-bailout-act-2012.shtml</link>
<guid>http://www.techdirt.com/articles/20120823/02571620133/rep-nadler-proposes-riaa-bailout-act-2012.shtml</guid>
<description><![CDATA[ Ah, the whole fight over licensing and royalty rates for internet radio had been quiet for a little while, but has sprung back up thanks to Rep. Jerry Nadler <a href="http://thehill.com/blogs/hillicon-valley/technology/244413-nadler-circulates-draft-legislation-on-music-royalties" target="_blank">proposing a music royalty bill</a> that would effectively bump up the rates that cable and satellite radio stations have to pay to make them more aligned with the insanely high rates that internet streamers are supposed to pay (rates so high, and set by a group of judges who don't appear to know what the internet is half the time, that no real business can be built off of them).  This is in contrast to a different, but similar, attempt by Rep. Jason Chaffetz to basically bring the internet rates <a href="http://thehill.com/business-a-lobbying/238845-bill-stirs-up-fight-over-online-music-royalties?tmpl=component&layout=default&page=" target="_blank">back down</a> to the same rates as those other providers.
<br /><br />
Of course, this is all somewhat related to the RIAA's ongoing push for a <a href="http://www.techdirt.com/articles/20091015/1907526556.shtml">Performance Rights Act</a>, which would force radio stations to pay extra royalties for when they play music.  Under existing law, radio stations only pay the composers/songwriters for songs played on the air, due to the recognition that radio airplay is basically a massive advertisement for the musicians and it's silly to have stations pay the copyright holders for advertising their works.  In fact, it's doubly crazy when you realize that the history of radio is filled with pretty indisputable evidence that the major music labels find tremendous value in radio play: payola.  Payola is all about the labels increasing the airplay, knowing that it leads to all sorts of revenue elsewhere.  But the RIAA is so insanely greedy these days that it's been begging for this form of a "bailout" for quite some time -- seeking to get radio stations to pay them for playing the same music that the labels are paying the stations (indirectly, of course, thanks to all the payola settlements) to play!
<br /><br />
These proposals don't directly address that issue, but are clearly based on this idea.  In fact, Nadler is incredibly upfront that he views taxing internet radio is his way of <i>making up</i> the money that isn't being collected from terrestrial radio:
<blockquote><i>
&#8220;The lack of a performance royalty for terrestrial radio airplay is a significant inequity and grossly unfair.  We can&#8217;t start a race to the bottom when it comes to royalty rates and compensation for artists," Nadler said in a statement. "The Interim FIRST Act would provide artists with fair compensation for the valuable creations they share with all of us."
</i></blockquote>
In other words, because we can't fund an RIAA bailout off the backs of terrestrial radios (thanks in part to the powerful lobbying of the NAB), we'll instead increase the existing (and already crippling) tax on the useful and innovative services that are trying to help drag the RIAA (kicking and screaming) into the future.
<br /><br />
Pandora is, quite reasonably, worried about this turn of events, noting that this new tax would be <a href="http://thehill.com/blogs/hillicon-valley/technology/244831-pandora-speaks-out-against-nadlers-music-royalties-draft-bill?utm_campaign=HilliconValley&utm_source=twitterfeed&utm_medium=twitter">"astonishingly unfair."</a>
<br /><br />
Nadler seems to think that Chaffetz's plan is unfair because it would mean lower royalties from the internet streamers, but that's a gross distortion for a few reasons.  First off, it assumes a perfectly static market, which is wrong.  Second, it seems to assume that the identical number of services and the identical number of listens will occur.  That's not true.  As it stands now, the rates are so damaging that Pandora -- the top player in the space -- has made it clear it may <i>never</i> be profitable.  Yes, never.  Nadler's bill would effectively make sure that no one else in that market would be profitable either.  The end result?  Many of these services don't exist or never get started.  That would actually mean <i>fewer</i> services, <i>fewer</i> listeners and <i>lower</i> royalties.
<br /><br />
It's almost as if he has no concept of price elasticity.  Lower prices can create higher total income.  Also, the idea that any particular Congressional Rep. should be (effectively) determining what the "fair" price is for anything is, well, horrifying.
<br /><br />
If these royalties are going to exist, is it really so crazy to think that perhaps (just perhaps) keeping the rates low, to encourage these useful new services to come along and grow, might be a good thing?  But, instead, the RIAA and its members are so greedy for the largest payout per music listen, that they're clearly willing to kill off useful legal streaming services like Pandora.  In the long run, that's not good (at all) for the record labels and the RIAA, but they've never been particularly good at seeing beyond the price per listen. 
<br /><br />
Either way, can anyone explain just why the government is bailing out the RIAA in the first place?<br /><br /><a href="http://www.techdirt.com/articles/20120823/02571620133/rep-nadler-proposes-riaa-bailout-act-2012.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120823/02571620133/rep-nadler-proposes-riaa-bailout-act-2012.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120823/02571620133/rep-nadler-proposes-riaa-bailout-act-2012.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>riaa-bailout</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120823/02571620133</wfw:commentRss>
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<pubDate>Wed, 8 Aug 2012 20:12:26 PDT</pubDate>
<title>Another Music Service Shuts Down, Blames Ridiculous Licensing Fees</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120806/02101019939/another-music-service-shuts-down-blames-ridiculous-licensing-fees.shtml</link>
<guid>http://www.techdirt.com/articles/20120806/02101019939/another-music-service-shuts-down-blames-ridiculous-licensing-fees.shtml</guid>
<description><![CDATA[ We've seen it for years: the legacy recording industry insists that it needs stronger and stronger "enforcement" and laws in order to stop infringement.  Yet, every time it gets its wish, it doesn't have any long term impact on infringement, and absolutely no impact on sales.  In other words, more enforcement doesn't seem to help the bottom line at all.  Instead, the one thing that <i>does</i> seem to get people to open their wallets and pay is <i>innovation</i> in the form of useful services that successfully compete against piracy by providing a better service.  And yet... the history of those innovative services is littered with corpses killed off by ridiculously high demands from the labels for licenses that have no basis in reality.  As we've noted time and time again, the legacy labels always seem to <a href="http://www.techdirt.com/articles/20080414/015112835.shtml">overvalue the content</a> and undervalue the services that people want.  We see silly claims like that Apple is doing nothing but <a href="http://www.techdirt.com/articles/20120220/00310917802/if-youre-going-to-compare-old-music-biz-model-with-new-music-biz-model-least-make-some-sense.shtml">hosting some songs</a> on its servers.
<br /><br />
But good services are the key to getting people to actually go to authorized means of acquiring and listening to music.  Unfortunately, there is a very small number of such services, in large part because of these crazy licensing demands.  David Meyer, over at GigaOm, highlights how <a href="http://gigaom.com/europe/learning-the-hard-way-music-service-wahwah-fm-killed-by-license-costs/" target="_blank">Wahwah.fm has shut down due to the licensing demands of labels</a>, saying that they just couldn't build a sustainable business at the rates demanded.  While Stuart Dredge correctly notes that there are a <a href="http://musically.com/2012/08/06/was-licensing-the-only-reason-for-wahwah-fms-shutdown/" target="_blank">number of issues at play</a>, including a perhaps less-than-stellar takeup from users, the licensing costs certainly couldn't have helped.  For a startup like Wahwah that is figuring out the right model, the fact is that they don't have much runway to experiment and find the model that works, because the licensing demands are almost impossible to afford unless you've raised a ton of money that you want to flush away.
<br /><br />
Plenty of startups would love to build a new business offering licensed, legitimate music services, but they're <a href="http://www.techdirt.com/articles/20120622/11431819436/hollywood-riaa-wont-let-tech-save-them.shtml">scared off</a> by the hostility of the old industry to anyone wishing to build a useful service.  The end result is that the legacy industry and the RIAA are responsible for <i>prolonging</i> the problem, by not enabling new innovators to build the kinds of services that successfully compete against piracy.<br /><br /><a href="http://www.techdirt.com/articles/20120806/02101019939/another-music-service-shuts-down-blames-ridiculous-licensing-fees.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120806/02101019939/another-music-service-shuts-down-blames-ridiculous-licensing-fees.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120806/02101019939/another-music-service-shuts-down-blames-ridiculous-licensing-fees.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>but-of-course</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120806/02101019939</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 30 Jul 2012 09:00:00 PDT</pubDate>
<title>Dear Permission Culture: This Is Why No One Wants To Ask For Your OK</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20120727/14251019859/dear-permission-culture-this-is-why-no-one-wants-to-ask-your-ok.shtml</link>
<guid>http://www.techdirt.com/articles/20120727/14251019859/dear-permission-culture-this-is-why-no-one-wants-to-ask-your-ok.shtml</guid>
<description><![CDATA[ "Just ask for permission."<br />
<br />
When it comes to dealing with the "<a href="http://www.techdirt.com/articles/20101227/09520712421/permission-culture-automated-diminishment-fair-use.shtml" target="_blank">permission culture</a>" that goes hand-in-hand with copyright these days, there&#39;s really no way to win. Certain rights holders claim they just want to be asked, but the actual process involved makes it seem like you&#39;d save a ton of time just assuming the answer is "no."<br />
<br />
Hugh Brown (a.k.a. Huge), an Australian recording artist and music business coach, <a href="http://www.huge.id.au/archives/000892.html" target="_blank">experienced this circuitous process firsthand</a> when he attempted to craft a parody of Adam Lambert&#39;s "If I Had You," entitled "If I Had Stew." Parodies are handled a bit differently in Australia, despite recent concessions in Australian fair dealing laws. <a href="http://www.apra-amcos.com.au/musicconsumers/makingrecordingsretailsale/makingaoneoffrecordingforretailsale.aspx" target="_blank">According to APRA</a> (Australasian Performing Rights Association), "lyric changes and parodies of works must [be] cleared directly with the copyright owner."<br />
<br />
"If I Had You" wasn&#39;t written by Lambert, but by Swedish songwriting team Maratone (Max Martin, Shellback and Kritian Lundin). But Huge couldn&#39;t approach Maratone directly as its website indicated that all the trio&#39;s songs were owned by the writer&#39;s respective labels. So he emailed Maratone and sent another form asking RCA/Jive Records for permission to make this recording.<br />
<br />
Huge heard nothing from Sony but did hear back from Maratone... <a href="http://www.huge.id.au/archives/000894.html" target="_blank">who told him to contact Kobalt Music Publishing and clear it with EMI as well</a>. Quick count of players involved: There&#39;s Maratone, the trio of songwriters behind Adam Lambert (who&#39;s likely off sleeping the undisturbed sleep of successful angels). Sony Music. RCA/Jive Records. Kobalt Music Publishing. And EMI. That&#39;s four labels and not a single person willing to discuss clearing Huge&#39;s parody.<br />
<br />
<a href="http://www.huge.id.au/archives/000896.html" target="_blank">A couple of weeks pass and Sony still hasn&#39;t responded</a>. Kobalt UK and EMI Australia have... sort of. The two labels directed Huge to yet another set of forms to fill out, despite him having given them all this information in his initial emails. The new forms aren&#39;t even for requesting permission to record a parody. All they do is assist the labels in compiling a price quote on the as-of-yet unrecorded song. And even if permission is granted, it likely still won&#39;t be enough. EMI only owns <i>one-third</i> of the track in question. Songwriter Savan Kovetchka, an EMI signee, contributed to Lambert&#39;s track, along with Max Martin and Shellback. This means Huge still needs permission from the other two songwriters and some sort of answer from Sony.<br />
<br />
It&#39;s now nearly a month since Huge first made contact and no progress has been made. Sony appears to be ignoring his requests. If anything, he&#39;s <i>further</i> <i>behind&nbsp;</i>than he was 27 days ago, when this whole thing kicked off. The "good" news is that Kobalt Media (representing Kotecha) said "yes," giving Huge one-third of a "permission" -- pending EMI&#39;s approval... and when it comes to getting written permission, one-third of a permission slip is worth approximately one-third of nothing. Huge did the right thing and asked (and asked... and asked) for permission, but despite the ever-growing list of interested parties, it looks as if "permission" might be something they <i>simply can&#39;t give</i>.&nbsp;And then... <a href="http://www.huge.id.au/archives/000897.html" target="_blank">things go completely off the rails</a>.&nbsp;<br />
<br />
Huge opens his last post on the debacle with, "Well, I&#39;m gobsmacked! No wonder the major labels are in so much trouble." Kobalt has given their blessing but EMI begins a long process of royalty-related correspondence so twisted it would make Joseph Heller proud.<br />
<br />
It starts out with a simple request for clarification by EMI.
<blockquote>
<i>What is your main goal for this use?</i><br />
<br />
<i>In your original enquiry you have noted that you intended to make a video for the song but have said "maybe" in your request form.&nbsp;Is this principally for release as an mp3 single?</i></blockquote>
Huge responds:
<blockquote>
<i>To be honest, my main intention is to make the song for my own amusement.</i><br />
<br />
<i>If I play it to few people who agree with me that it&#39;s fun and good, then I&#39;ll think seriously about making a video as cheaply as possible and releasing it on YouTube. I have a few people who are interested in helping with that, though they wanna hear it first.</i><br />
<br />
<i>If it gets any traction on YouTube, then I&#39;ll think about releasing it as an MP3 and via iTunes, etc ... I just wanted to clear everything properly first.</i></blockquote>
Gauging the market before putting the song up for sale is just common sense and YouTube&#39;s a pretty good place to get quick feedback. But as soon as YouTube is mentioned, EMI fires off a preliminary standard contract for sync rights, showing that its share of any money generated would be 33.34% and a guesstimated one-time fee of $1000.<br />
<br />
Huge forwards EMI his approval letter from Kobalt, which sends the label off on an entirely different tangent.
<blockquote>
<i>I just want to clarify with you that we are the licensing department of EMI Publishing, so we are quoting you on the synchronisation rights if you intend on using the work in a video clip.&nbsp;If you want to request approval to record and release this song you will need to get in contact with our copyright department.</i></blockquote>
So, Huge has been talking to the wrong people. He sends a letter back acknowledging the fact that he (obviously) can&#39;t sync the video until <i>after&nbsp;</i>he&#39;s recorded the song. He asks EMI for a contact name in the copyright department and receives this in response:
<blockquote>
<i>Will you be getting a mechanical license from AMCOS before putting this song on youtube or will you be putting it on youtube before you get a mechanical license?</i></blockquote>
This a question that can&#39;t be answered. According to APRA/AMCOS rules, Huge needs to secure permission before he can worry about uploading it to YouTube. He tries again to get EMI to follow his line of thinking: get permission, record, upload.
<blockquote>
<i>That depends on whether I am allowed to use Sony&#39;s backing music or whether I have to completely re-record it myself ... still no word from Sony.</i><br />
<br />
<i>My instinct is to clear everything before I do anything. If I know what it&#39;s all gonna cost me I can do up budgets and set targets and so on. I just figured that securing permission was the first step ...</i></blockquote>
EMI takes this clear statement of ducks-in-a-row and it decides that the mechanical license question needs to be clarified before anything else can proceed, except that other stuff (getting permission) also needs to happen first and perhaps simultaneously.
<blockquote>
<i>So does this mean that you do not intend to release the song with a mechanical license prior to putting a video on youtube?</i><br />
<br />
<i>If you intend on getting a mechanical license first you will need to get approval to record and release an adaption but if you do not intend on releasing the song first you will need a synchronisation license.</i></blockquote>
At this stage, Huge is still waiting for permission from two more writers. EMI, however, only seems to be concerned with properly licensing a song that a.) doesn&#39;t exist and b.) quite possibly won&#39;t exist if permission is denied. It&#39;s also given Huge the "opportunity" to pay an upfront fee of $1000 for a track he might not even make. Huge (once again) points out his thought process: permission, record, YouTube/mp3. This repeated clarification makes no difference. EMI is still hung up on the mechanical license for syncing when it&#39;s not trying to just punt the whole thing over to the copyright department. EMI also insists that its previously mentioned $1000 "contract" is valid for only four weeks, after which it will need to issue a new contract. Huge points out (<i>again</i>) that he still is waiting on permission to record.<br />
<br />
EMI responds with this amazing statement, which baldly states that the label doesn&#39;t particularly care whether or not Huge <i>ever</i> gets a chance to record this parody if he&#39;s not willing to throw some cash its way:
<blockquote>
<i>We can not give you permission to do anything with the song until you commit to a sync license (internet video) or a mechanical license (release) so please confirm if and when you are ready to proceed.</i></blockquote>
Huge attempts to wrap his mind around this:
<blockquote>
<i>OK, so let me get this straight: EMI will not contact the writer and ask for permission for me to make a parody unless I fork out $1000 upfront and possibly also a mechanical license ... for a song I might not be given permission to make and that might turn out to be unreleasable ...</i><br />
<br />
<i>Alternatively, they won&#39;t ask for permission for me to record the parody until ... I&#39;ve recorded it and know what I&#39;m gonna do with it. No wonder people are just breaking the rules and doing what they want with recorded music!</i></blockquote>
Precisely. If you want artists to play nice within the confines of your system, then you need to have a workable system, not just a set of loosely-related entities all acting independently and in their own best interests. Having multiple layers of corporate bureaucracy standing between two artists only hurts those who are actually trying to do the right thing. If Huge had gone the other way and decided that it was easier to ask forgiveness than permission, I can guarantee that any sort of takedown or cease-and-desist would come from a single source. When it comes to saying "no," you generally only need one person. But to get a "yes?" That&#39;s a "team" effort, apparently.<br /><br /><a href="http://www.techdirt.com/articles/20120727/14251019859/dear-permission-culture-this-is-why-no-one-wants-to-ask-your-ok.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120727/14251019859/dear-permission-culture-this-is-why-no-one-wants-to-ask-your-ok.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120727/14251019859/dear-permission-culture-this-is-why-no-one-wants-to-ask-your-ok.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>you-need-a-seriously-large-staff-to-get-nothing-done</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120727/14251019859</wfw:commentRss>
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<pubDate>Tue, 24 Jul 2012 12:28:00 PDT</pubDate>
<title>Movie Showing How Music Can Help Dementia Patients Held Up... By The Difficulty In Licensing The Music</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120724/04052119808/movie-helping-show-how-music-can-help-dementia-patients-held-up-difficulty-licensing-music.shtml</link>
<guid>http://www.techdirt.com/articles/20120724/04052119808/movie-helping-show-how-music-can-help-dementia-patients-held-up-difficulty-licensing-music.shtml</guid>
<description><![CDATA[ My grandfather passed away at 96-years-old just last year.  While he remained "with it" for quite some time, in the last few years of his life, he suffered from pretty serious dementia.  So, a few months ago, when I saw this somewhat viral video of a dementia patient in a nursing home suddenly being "revived" by <a href="http://www.youtube.com/watch?v=NKDXuCE7LeQ" target="_blank">listening to the music he grew up with</a>, it was really quite amazing.  I just wished I'd been able to test that out with my grandfather earlier.  If you haven't seen the video, it's worth checking out (especially if you've ever had to deal with a loved one suffering from dementia):
<center>
<iframe width="560" height="315" src="http://www.youtube.com/embed/NKDXuCE7LeQ" frameborder="0" allowfullscreen></iframe>
<br />
</center>
So I was definitely interested when <a href="http://www.basbasbas.com/blog/" target="_blank">Bas</a> told me that the folks who made that clip were trying to put the finishing touches on a much longer documentary about bringing personalized music to dementia patients... and were <a href="http://www.kickstarter.com/projects/1406732546/alive-inside-a-story-of-music-and-memory" target="_blank">doing so with a Kickstarter campaign</a>.  These days, that's completely understandable, but what struck me as most unfortunate and distressing is that the <i>main reason</i> why the filmmaker needs to raise $50,000 is <i>because of the expense of licensing the music</i> so that it can be shown in the film.  It's clear from the video just how powerful this film is, and just how useful it might be to get lots of people to see it.  And yet, copyright holders are often very, very stingy about licensing music for films -- especially documentaries.  As we've <a href="http://www.techdirt.com/articles/20100111/2220247711.shtml">discussed</a> in the past, the difficulties documentary filmmakers have in licensing music for their films -- even if the song is a key <i>factual</i> component of the story -- are incredibly disturbing.  Rather than helping to spread the music, copyright holders are locking it up.
<br /><br />
In this case, in particular, it appears that they're basically locking up this entire film, unless they can raise $50,000.  That's not how copyright is supposed to work.  The video explanation of what the filmmaker is trying to do is great, but the fact that it's copyright holding things up just seems really disturbing (he explains that's the issue about five minutes into the video):
<center>
<br />
<iframe width="480" height="360" src="http://www.kickstarter.com/projects/1406732546/alive-inside-a-story-of-music-and-memory/widget/video.html" frameborder="0"> </iframe>
<br />
</center>
It's too bad that (1) fair use is such a mess that this kind of thing isn't automatically seen by all involved as fair use, and (2) the copyright holders here, knowing the importance of such a project, can't offer up a free license for the filmmaker.<br /><br /><a href="http://www.techdirt.com/articles/20120724/04052119808/movie-helping-show-how-music-can-help-dementia-patients-held-up-difficulty-licensing-music.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120724/04052119808/movie-helping-show-how-music-can-help-dementia-patients-held-up-difficulty-licensing-music.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120724/04052119808/movie-helping-show-how-music-can-help-dementia-patients-held-up-difficulty-licensing-music.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>depressing</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120724/04052119808</wfw:commentRss>
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<item>
<pubDate>Fri, 13 Jul 2012 03:14:00 PDT</pubDate>
<title>Is The EU's Proposed Reform Of Music Licensing Doomed From The Start?</title>
<dc:creator>Glyn Moody</dc:creator>
<link>http://www.techdirt.com/articles/20120712/11333119676/is-eus-proposed-reform-music-licensing-doomed-start.shtml</link>
<guid>http://www.techdirt.com/articles/20120712/11333119676/is-eus-proposed-reform-music-licensing-doomed-start.shtml</guid>
<description><![CDATA[ <p>Music collection societies often figure in Techdirt thanks to their attempts to wring licensing payments from people on absurd grounds, like trying to make them pay for playing music to <a href="http://www.techdirt.com/articles/20090327/1113014276.shtml">horses</a>, or for singing old <a href="http://www.techdirt.com/articles/20120612/09035819289/slovak-collecting-society-sends-village-invoice-singing-folk-song-about-itself.shtml">folk songs</a>.  But in Europe, there's another issue.  Because each country has its own music collection society, digital music startups wishing to operate across Europe must negotiate not one, but dozens of separate licenses &#8211; a major obstacle to overcome.
</p><p>
Even the European Commission has noticed that this is a problem, and has proposed bringing in <a href="http://europa.eu/rapid/pressReleasesAction.do?reference=IP/12/772&#038;format=HTML&#038;aged=0&#038;language=en&#038;guiLanguage=EN">a new directive to tackle it</a>: 

<i><blockquote>New digital technologies are opening up great opportunities for creators, consumers and businesses alike. Increased demand for online access to cultural content (e.g. music, films, books) does not recognise borders or national restrictions. Neither do the online services used to access them. This is where collecting societies come into play, in particular in the music sector, where they collectively manage the licensing of copyright-protected music tracks for online use on behalf of composers and lyricists and collect and redistribute to them corresponding royalties.
<br /><br />
However, some collecting societies struggle to adapt to the requirements of the management of rights for online use of musical works, in particular in a cross-border context. As a result of today&#8217;s proposal, those collecting societies willing to engage in the multi-territorial licensing of their repertoire would therefore have to comply with European standards. This would make it easier for service providers to obtain the necessary licences for music to be distributed online across the EU and to ensure that revenue is correctly collected and fairly distributed to composers and lyricists.
</blockquote></i>

That reference to collecting societies that "struggle to adapt to the requirements of the management of rights for online use of musical works" is a pretty obvious dig at organizations like GEMA, which has been <a href="http://www.techdirt.com/articles/20120225/02270617882/sony-music-exec-internet-is-full-opportunities-not-problem-intransigent-collection-societies-however.shtml">extremely inflexible</a> when it comes to online licensing of music in Germany.  So we can probably expect vociferous resistance to any change from many of the collecting societies that have enjoyed milking their legal monopolies to the full.  Surprisingly, though, <a href="http://in.reuters.com/article/2012/07/11/eu-copyright-idINL6E8IB3QK20120711">some artists don't seem too enthusiastic either</a>:

<i><blockquote>A proposed EU law to give musicians more rights over their royalties has angered bands like Radiohead and Pink Floyd, who accused the European Commission of breaking promises to tackle the problem of musicians' missing pay.</blockquote></i>

The issue here seems to be that collection societies have a tendency to hold on to money that they should be distributing to artists, also referred to by the  European Commission.  The fact that musicians have already gone on the attack suggests that we are going to see some fierce lobbying coming from multiple directions.  However, it may be that this directive is doomed to fail for quite another reason.
</p><p>
Neelie Kroes, Vice-President of the European Commission, and certainly one of the most rational/radical members there, has written <a href="http://blogs.ec.europa.eu/neelie-kroes/copyright-licensing-reform/">an extremely interesting blog post about the new proposals</a>.  She begins:

<i><blockquote>Last week&#8217;s vote on ACTA -- although hardly a surprise for those who&#8217;ve been following &#8211; was a reminder about the big debate currently going on, about how to balance intellectual property rights with Internet freedoms
<br /><br />
For me it&#8217;s about making it <a href="http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/11/777">easier for artists to promote their work widely</a>, and make a living from it: without constraining the immense innovation of the online world. And, for me, the current copyright system achieves all of those objectives poorly.
<br /><br />
That&#8217;s why I&#8217;m convinced we need to <b>reform copyright for the digital age</b>. For me, merely making enforcement more and more heavy-handed is not the solution -- especially if it results in draconian measures like cutting off internet access.
<br /><br />
But a good start &#8211; and I hope a principle on which everybody could agree &#8211; is that we should <b>make it easier to <u>legally</u> access the content you love.</b></blockquote></i>

That's a very welcome statement, coming as it does from one of the most senior EU politicians.  Significantly, she also has some words for the European Parliament regarding the proposed directive on music licensing:

<i><blockquote>our proposal needs to be agreed by the European Parliament and Council. Some previous attempts by us to modernise copyright rules -- like our relatively modest proposal on orphan works -- were significantly watered down by the legislator. This time I hope the Parliament and Council are more aware of the views citizens have expressed: that <b>people love the openness of the Internet, and want easier access to more content</b>.</blockquote></i>

That "modest proposal on orphan works" was gutted by the relevant European Parliament committee, as a previous Techdirt post <a href="http://www.techdirt.com/articles/20120629/09204819536/eu-directive-orphan-works-so-bad-it-makes-things-worse.shtml">explained</a>.  One key reason why the final form of the directive turned out so badly is that its rapporteur (the EU parliamentarian with overall responsibility for the legislation) was the copyright maximalist Marielle Gallo, who was not only <a href="http://www.lobbynomics.com/2012/07/acta-vote-in-the-european-parliament-on-4-july/">one of the few to vote in favor of ACTA</a>, but went so far as to brand ACTA dissent as a "<a href="http://www.techdirt.com/articles/20120626/09565719492/eu-parlamentarian-gallo-acta-dissent-soft-form-terrorism.shtml">soft form of terrorism</a>".  
</p><p>
Unfortunately, it seems that <a href="http://www.keanelegal.com/2012/latest-news/collecting-societies/">Gallo will also be the rapporteur on this new music licensing proposal</a>.  Assuming she gets her way, that pretty much guarantees that any directive that emerges from the long process of political wrangling won't do much to address the deep underlying problems with music licensing.  It may even make them worse, judging by what happened with the hostage works directive under her guidance.
</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/20120712/11333119676/is-eus-proposed-reform-music-licensing-doomed-start.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120712/11333119676/is-eus-proposed-reform-music-licensing-doomed-start.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120712/11333119676/is-eus-proposed-reform-music-licensing-doomed-start.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>signs-aren't-good</slash:department>
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<item>
<pubDate>Thu, 12 Jul 2012 05:16:00 PDT</pubDate>
<title>Kim Jong Un's Mysterious Female Companion Hides The Real Issue: Piracy Of Disney Characters!</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120711/02531319660/kim-jong-uns-mysterious-female-companion-hides-real-issue-piracy-disney-characters.shtml</link>
<guid>http://www.techdirt.com/articles/20120711/02531319660/kim-jong-uns-mysterious-female-companion-hides-real-issue-piracy-disney-characters.shtml</guid>
<description><![CDATA[ There's an almost entirely silly article over at CNN speculating -- with absolutely no knowledge -- about the <a href="http://www.cnn.com/2012/07/10/world/asia/north-korea-kim-woman/index.html?hpt=hp_c1" target="_blank">identity of a woman seen frequently</a> with North Korean leader Kim Jong Un.  I'm not quite sure how that makes a news story, but what caught <a href="http://www.techdirt.com/user/ronalddumsfeld">Dark Helmet's</a> eye was that in this bizarre little story, there was a bit from Disney, in which it felt compelled to mention that a performance seen by Kim and the woman that included Disney characters was not authorized:
<blockquote><i>
The mystery woman accompanied the young leader to a Pyongyang theater on Friday night to watch a performance of North Korea's Moranbong band. The display included a cast of Disney characters, attracting the attention of The Walt Disney Company which issued a statement Tuesday saying it had not authorized their use.
</i></blockquote>
As if (1) anyone cared about that or (2) anyone actually thought that Disney had licensed its characters to the North Korean government for a special performance.
<br /><br />
This is what happens when, as a company, you seem to have infringement-on-the-brain, and think anything and everything must absolutely be framed within the context of whether or not something is infringing.<br /><br /><a href="http://www.techdirt.com/articles/20120711/02531319660/kim-jong-uns-mysterious-female-companion-hides-real-issue-piracy-disney-characters.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120711/02531319660/kim-jong-uns-mysterious-female-companion-hides-real-issue-piracy-disney-characters.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120711/02531319660/kim-jong-uns-mysterious-female-companion-hides-real-issue-piracy-disney-characters.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>really?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120711/02531319660</wfw:commentRss>
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<pubDate>Wed, 11 Jul 2012 14:55:00 PDT</pubDate>
<title>Multiple Hollywood Studios Making Movies About Julian Assange; How Many Will Pay Him For His Story?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120709/03520219622/multiple-hollywood-studios-making-movies-about-julian-assange-how-many-will-pay-him-his-story.shtml</link>
<guid>http://www.techdirt.com/articles/20120709/03520219622/multiple-hollywood-studios-making-movies-about-julian-assange-how-many-will-pay-him-his-story.shtml</guid>
<description><![CDATA[ We've all heard the refrain from the MPAA a million times: profiting off of someone else's work is "theft" and we need new laws to stop that kind of thing.  So, it struck me as interesting to see an article in the Wall Street Journal, claiming that multiple Hollywood studios are <a href="http://online.wsj.com/article/SB10001424052702303933404577503622345604712.html" target="_blank">planning movies about Julian Assange and Wikileaks</a>:
<blockquote><i>
Among the studios with WikiLeaks movies in development are Time Warner Inc.'s HBO Films, DreamWorks Studios, Comcast Corp.'s Universal Pictures and Annapurna Pictures, the company run by Megan Ellison, daughter of Oracle Chief Executive Larry Ellison.
</i></blockquote>
Most of the article talks about the difficulty of creating a movie based on a true story that's still very much in progress.  However, they just barely touch on the question of paying for the story.  After all, the story of Assange is based on "his work," right?  There had been one project that sought to buy an option on Assange's own memoirs, which were due to be published by Random House, but apparently Assange failed to deliver and the deal fell through.  Other projects did option different versions of the Assange story -- but not from Assange himself.  One optioned the book from former WikiLeaks spokesman, turned Wikileaks critic, Daniel Domscheit-Berg.  Another optioned a profile of Assange that was done in the New Yorker.
<br /><br />
However, all of the actual stories focus on Assange and his work in building up Wikileaks.  If Hollywood really believes so strongly in not "profiting off the works of others" without fairly compensating them, why aren't they lining up to pay Assange?<br /><br /><a href="http://www.techdirt.com/articles/20120709/03520219622/multiple-hollywood-studios-making-movies-about-julian-assange-how-many-will-pay-him-his-story.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120709/03520219622/multiple-hollywood-studios-making-movies-about-julian-assange-how-many-will-pay-him-his-story.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120709/03520219622/multiple-hollywood-studios-making-movies-about-julian-assange-how-many-will-pay-him-his-story.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>just-wondering...</slash:department>
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<pubDate>Tue, 10 Jul 2012 09:39:00 PDT</pubDate>
<title>Movie About Jimi Hendrix... Won't Use Any Jimi Hendrix Music Due To Licensing Issues</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120710/04184719640/movie-about-jimi-hendrix-wont-use-any-jimi-hendrix-music-due-to-licensing-issues.shtml</link>
<guid>http://www.techdirt.com/articles/20120710/04184719640/movie-about-jimi-hendrix-wont-use-any-jimi-hendrix-music-due-to-licensing-issues.shtml</guid>
<description><![CDATA[ Ah, the insanity of music licensing.  There's apparently a biopic of Jimi Hendrix being made, starring Andre Benjamin (better known as Andre 3000 from Outkast) in the leading role.  Of course, with a Hendrix biography, you'd think that the real star would be the music -- but in this case, there <a href="http://www.rollingstone.com/music/news/andre-3000-covers-beatles-muddy-waters-songs-for-jimi-hendrix-biopic-20120703" target="_blank"><i>won't be any original Jimi Hendrix music in the entire movie</i></a>, because Hendrix's estate has said that it won't license songs unless it has some sort of say in the production.  The producers don't want that, so they didn't even ask to license the music.  The film, instead, will make do with new versions of <i>cover songs</i> that Hendrix did along the way.
<br /><br />
This is, in many ways, ridiculous.  Part of the point of recording and retelling our cultural heritage is the use of the actual music that made it happen.  Even the Hendrix estate finds the moviemakers' position confusing (though, it doesn't indicate if it would license the songs without creative say in the flick). Part of the problem is the ridiculous setup of music licensing today.  You can do a cover song with compulsory licenses (i.e., without permission), but that's only for audio.  Doing video gets you into sync licenses and other issues that require permission.  And this is what you get in a society that locks up culture: a movie about Jimi Hendrix that features exactly none of his original music.<br /><br /><a href="http://www.techdirt.com/articles/20120710/04184719640/movie-about-jimi-hendrix-wont-use-any-jimi-hendrix-music-due-to-licensing-issues.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120710/04184719640/movie-about-jimi-hendrix-wont-use-any-jimi-hendrix-music-due-to-licensing-issues.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120710/04184719640/movie-about-jimi-hendrix-wont-use-any-jimi-hendrix-music-due-to-licensing-issues.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>purple-haze</slash:department>
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<pubDate>Thu, 28 Jun 2012 20:29:00 PDT</pubDate>
<title>Intellectual Ventures Loses Its Shine: Will Its Business Model Ever Work?</title>
<dc:creator>Glyn Moody</dc:creator>
<link>http://www.techdirt.com/articles/20120620/02043419395/intellectual-ventures-loses-its-shine-will-its-business-model-ever-work.shtml</link>
<guid>http://www.techdirt.com/articles/20120620/02043419395/intellectual-ventures-loses-its-shine-will-its-business-model-ever-work.shtml</guid>
<description><![CDATA[ <p>Techdirt has always been sceptical about Nathan Myhrvold's business plan for Intellectual Ventures (IV) -- build up a huge portfolio of patents, simply so that it can then license them to those that will, and sue those that won't.  Others, however, have been dazzled by Myhrvold's pedigree as an extremely wealthy ex-Microsoft manager, and by the fact that patents have undeniably become a central concern for the tech industries in recent years, which suggests that there is plenty of money to be made from them.
</p><p>
But there are signs that the IV magic is fading.  Here, for example, is a report of Myhrvold's appearance at D: All Things Digital this year, under the headline "<a href="http://allthingsd.com/20120530/nathan-myhrvold-on-being-the-most-unpopular-guy-at-d10/">Nathan Myhrvold on Being the Most Unpopular Guy at D10</a>":

<i><blockquote> Myhrvold made the case to the crowd, though probably unsuccessfully, that his company serves a purpose similar to that of venture capital or private equity in the process of aiding innovation.
<br /><br />
Myhrvold also quoted his own past statement at an earlier D conference, saying, "If people don&#8217;t find what you are doing threatening, then it is probably not very important."</blockquote></i>

More recently, the <a href="http://www.forbes.com/sites/nathanvardi/2012/06/19/nathan-myhrvolds-patent-investing-returns-are-still-lousy/">attacks have been less personal, but in some ways more damaging</a>:

<i><blockquote>Around 2008 Nathan Myhrvold, Microsoft&#8217;s former chief technology officer, raised $2.9 billion in two separate funds to invest in patents and inventions. More than four years later, those funds have returned very little cash back to their investors and the returns look lousier than ever.</blockquote></i>

The article in Forbes quoted above goes on to describe one of Intellectual Venture's more recent patent-buying funds as "a complete disaster."  It also notes IV's reply to these criticisms:

<i><blockquote>the firm points out the answer is that the life cycle of the firm&#8217;s funds is longer than the ten-year period usually associated with private equity-type investments. The funds are linked to the 20-year lives of the patents the funds acquire or develop.</blockquote></i>

But there's a larger issue than what the real internal rate of return is, and that's the underlying viability of Myhrvold's model.  There is no evidence that IV encourages innovation in any way, despite the company's claims that it "creates a market place" for patents.  
</p><p>
Instead, it really seems no different from your common-or-garden troll, hoping to hit the jackpot by picking up a patent that a successful company later finds it simply must license or risk going out of business.  Leaving aside the morality of such an approach, it's inherently risky: IV has to hope that enough other companies come up with the actual valuable innovations that its patents can then parasitize.
</p><p>
The comments above could be the first straws in the wind that business opinion is starting to turn against Myhrvold.  It will be interesting to see if IV starts suing companies more aggressively in an attempt to get the money rolling in -- and what it does if that fails to deliver the kind of returns investors are presumably hoping for.  That could well happen if those being sued sense that IV is under pressure, and decide as a result to opt for a long, hard -- and expensive -- fight in the courts to exploit that fact.
</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/20120620/02043419395/intellectual-ventures-loses-its-shine-will-its-business-model-ever-work.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120620/02043419395/intellectual-ventures-loses-its-shine-will-its-business-model-ever-work.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120620/02043419395/intellectual-ventures-loses-its-shine-will-its-business-model-ever-work.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>sad-troll</slash:department>
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<pubDate>Thu, 28 Jun 2012 14:57:00 PDT</pubDate>
<title>New Study Shows Patent Laws Spur Patents; Report's Authors Pretend This Means Innovation</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20120625/01552819458/new-study-shows-patent-laws-spur-patents-reports-authors-pretend-this-means-innovation.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20120625/01552819458/new-study-shows-patent-laws-spur-patents-reports-authors-pretend-this-means-innovation.shtml</guid>
<description><![CDATA[ <a href="http://science.slashdot.org/story/12/06/24/1435201/biotech-report-says-ip-spurs-innovation" target="_blank">Slashdot</a> points us to an article about a new research report, commissioned by a biotech trade group that <a href="http://blogs.nature.com/news/2012/06/intellectual-property-spurs-innovation.html" target="_blank">argues the evidence shows that patents spur innovation</a>, rather than hinder it.  However, as <a href="http://science.slashdot.org/comments.pl?sid=2935303&#038;cid=40429261" target="_blank">some</a> quickly noticed, the report has severe methodological flaws, starting with the fact that it seems to use <i>patent activity</i> as a proxy for <i>innovation</i>.  So, it argues that stronger patent law creates more patents (or more funding of patents or more sales/licensing of patents) -- and then claims that clearly there's more innovation.  But we already knew that patent laws spur patents.  The question -- not answered in the report -- is about the actual impact on <i>innovation</i>.  
<br /><br />
Just as an example, the report provides some case studies from different countries.  In one of them, it talks about how Taiwan basically took the US' Bayh-Dole Act, which encourages the locking up of university research... and shows there was much more patenting afterwards.  The report discusses how "impressive" this is:
<blockquote><i>
A 2010 study of the effects of this legislation on university patenting activity provides a concrete 
and detailed example of the positive effect the introduction of technology transfer mechanisms 
can have.
The study examines patents granted to 174 Taiwanese universities during the period 
of 2004 to 2009 and compares this to the period preceding it. Strikingly, the study finds a sharp 
and sustained increase in university&#8217;s patenting activity: patenting increased from 446 patents in 
2004 to 1,581 by 2009.
This is an impressive increase of 354%. As importantly, apart from a 
slight drop in 2007, this growth has been progressive and sustained year after year.
</i></blockquote>
Yup.  So patent laws that expand the coverage of what's patentable and provide incentives for more patents... increase the number patents.  What does that say about innovation?  Abso-freaking-lutely nothing.  And, in fact, if you look at the actual research on the impact of Bayh-Dole in the US, while it similarly increased patent activity, it <a href="http://www.techdirt.com/articles/20080115/013002.shtml">didn't increase</a> research, and actually <a href="http://www.techdirt.com/articles/20080911/0304512236.shtml">held</a> it <a href="http://www.techdirt.com/articles/20090125/1827273529.shtml">back</a>.  This is because university research is <i>meant to be shared</i> and meant to be discussed and to have others work on it.  That's how great research is done: with lots of sharing of information and ideas to spark new thinking.  But the Bayh-Dole Act basically told researchers to shut up, keep things secret, and patent the results.  Because of that there are a lot more patents, but a lot fewer real breakthroughs, because you no longer have the same information sharing, discussion and openness that created true innovation in the past.<br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20120625/01552819458/new-study-shows-patent-laws-spur-patents-reports-authors-pretend-this-means-innovation.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20120625/01552819458/new-study-shows-patent-laws-spur-patents-reports-authors-pretend-this-means-innovation.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20120625/01552819458/new-study-shows-patent-laws-spur-patents-reports-authors-pretend-this-means-innovation.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>they're-not-the-same</slash:department>
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