Collective Licensing for p2p in France

Editor, France, Spain Step Up Anti-Piracy Initiatives, Digital Music News, 20 December 2005

As France considers anti-circumvention laws, one proposal gaining support is the adoption of a collective P2P licensing scheme.


Red Herring "France Toys With Legal P2P"
Bloomberg "French Parliament Votes to Allow Web File Sharing"
CNet "France may sanction unfettered P2P downloads"
P2Pnet "P2p file sharing is legal, says France"
audionautes.net "France is the First Country to Propose the Legalization of P2P Downloading"

File Sharing UP

So suing 17,000 of your customers is clearly not helping the situation:

"According to data supplied by tracking firm BigChampagne, the average number of simultaneous P2P users reached 6.86 million in the US, and 9.47 million globally. In the US, that represents a 4.78 percent increase over October figures, and a 20.6 percent jump over comparable figures in 2004. Meanwhile, the numbers represent a 3.14 percent increase month-over-month globally, and a 21.3 percent increase year-over-year."

As reported by Digital Music News, 19 December 2005

iTunes Terms of Sale

iTunes Terms of Sale

These are the parts of the contract that worry me:

"You shall be authorized to use the Product on five Apple authorized computers... Apple reserves the right to change the terms and conditions of sale at the iTunes Music Store at any time."

Here's what was said when the iTunes DRM was cracked in January 2004:

"The RIAA can at any time change the DRM rules... and considering their history, it's likely that they will when the majority of consumers have embraced DRM and non-DRM products have been phased out..."

Fred Von Lohmann said:
"The restrictions are very frustrating for consumers, and frankly, are unnecessary... Every song on iTunes Music Store has been available on the Peer to Peer networks within four hours. All the DRM does is frustrate legitimate consumers; it doesn't stop file sharing..."

Read the full story here.

iTunes

Can anyone tell me what this means?

"iTunes is licensed for reproduction of non-copyrighted materials or materials the user is legally permitted to reproduce."

Sounds a whole lot like they're selling public domain materials to me - and if so, and if the RIAA succeed in destroying p2p, does this mean the future lies in an artificially infinite copyright term?

Christmas Shopping

Christmas shopping as a substantial non infringing, DRM hating, democratist can be a little confusing.

Never let it be said that I don't support the music industry - I just bought 8 CDs- none of them copy protected - made sure of that. I would really have rather purchased iTunes credits but couldn't bring myself to do it, even though I know the people I were buying for don't care about DRM. The thing about DRM on iTunes is that it is wide enough at the moment (debateable) but I for one bet that it doesn't stay that way. There is absolutely nothing stopping the recording industry from insisting that it be narrowed with massive ramifications for fair use. It will happen, along with creeping prices.

The minute iTunes start selling DRM free music I will be the first one there.

The minute they start individual prosecutions in this country it will be the last cent they see from me.

The CD I bought for myself is even available as an authorised download (see EFF's site for a list) but I chose to pay. In fact I have never downloaded unauthorised music only stuff on that list and classical music. What I have actually been doing with p2p software in fact, is just searching - for terms like 'cover' and 'live' and 'remix' - I have been trying to nut out a way to demonstrate the way file sharing allows for the participation in culture... I plan to do a comprehensive study next year but averages is the most sophisticated methodology I have come up with so far. Its really hard to structure because the content of the networks is so dynamic.

RIAA sues ANOTHER 751 file-swappers

Another 751 Americans have just won the lottery - I read somewhere recently... (forgive me for not referencing - I read a lot!)... that in the USA you have about the same chance of winning the lottery as you do of being sued by the RIAA.

Another 751 cases that will never make it to trial; with one report suggesting only 2% of paid music consumers say they do so out of fear of litigation.

It seems however that there might be a file sharing (film) case going to trial in Pennsylvania where summary judgement was denied.

J. Borland, RIAA sues 751 file-swappers, CNET News, 15 December 2005

R. Menta, Ipsos-Reid: Only 2% of Consumers Care About Legal Issues With Downloading Music, mp3newswire, 8 December 2005

http://www.paed.uscourts.gov/documents/opinions/05D1458P.pdf

Kazaa survives until after Christmas

Kazaa lives to fight another battle - 30th January 2006 is the date set for the contempt hearing.

Anonymous, Kazaa survives. For now, p2p.net, 15 December 2005

S. Deare, Kazaa owners risk jail, ZDNet Australia, 15 December 2005

Benefits of Sharing Music

Editor, Research Group Highlights Benefits of Sharing Music, Digital Music News, 15 December 2005

Digital Music News are reporting on a new study undertaken by Harvards Berkman Centre and Gartner suggesting that sharing of music is becoming an increasingly important part of the success of the music industry. The viral nature of file sharing contributes to the sampling and selection of songs.

The Report: Consumer Taste Sharing Is Driving the Online Music Business and Democratizing Culture

The Distribution of Digital Property

Southern Cross University held a Community Forum on the Distribution of Digital Property today (11/12/05) in Byron Bay. Speakers were Tony Morris QC and Quentin Cregan, senior and junior Counsel for the defendant in the Universal Music Australia Pty Ltd v Cooper [2005] FCA 972; John Hennessey, junior Counsel for the applicants in the case of Universal Music Australia Pty Ltd v Sharman License Holdings [2005] FCA 1242; and Peter Coroneos, Chief Executive of the (Australian) Internet Industry Association. Here are some of the highlights from what they had to say:

John Hennessey outlined the basis of the Kazaa litigation (authorisation) and made reference to the "minuscule" quantity of legitimate works relied on by Sharman to justify their business operations. He stated that the Kazaa has repeatedly "demanded" licenses from the recording industry which they were not given but in correspondence concerning the potential to license works, Kazaa indicated that they were in a position to filter out offending content. He commented that the failure to implement key word filters by the 5th December 2005 has resulted in further legal action with the parties going back to court this Thursday for a contempt of court hearing.

Tony Morris and Quentin Cregan offered an alternative perspective on the issue of authorisation, suggesting that while they do not condone the misuse of Intellectual Property, they considered the Cooper case to have important legal ramifications both within Australia and overseas. Tony gave a background to the litigation indicating that Cooper was very much a low level and amateurish operator. Cooper was by and large honest with his website, MP3s4Free, registered under his own name and address and hosted within Australia despite the alternative option of perhaps operating from countries such as China. The way the website was set up allowed visitors to post links on the site, the problem being that some of the links led to pirated recordings. The critical issue in the case was whether merely providing links was enough to establish authorisation rather than merely facilitating a connection. The court held that Cooper had the ability to review and remove offending links and as such he was found guilty of authorisation. At no time was the offending material on his website. The disclaimers on his website were also held to be ineffective. Cooper's ISP was also held accountable as he had an arrangement with them by which he posted an advertising banner in exchange for free hosting. The court held the ISP to have a financial benefit from the operation of the website.

Tony suggested there to be potential for the matter to be appealed and suggested that it may be joined with the Kazaa matter for High Court determination of the scope of 'authorisation'. He also suggested that the Record Industry was playing catch up and although they have won the Cooper case and will most likely win the Kazaa case it will change nothing in terms of sharing illegal content.

Peter Coroneos gave a bigger perspective on the battle between old and new methods of content distribution. He questioned the ongoing relevance of copyright law and particularly noted how out of step it was with what was happening on a day-to-day basis. He noted the progress of file sharing technology, the fact that the Internet is a truly revolutionary architecture and ultimately suggested that what we are witnessing in the content industry today is MARKET FAILURE. He suggested that content itself is not under threat by peer-to-peer networks but it is the intermediaries - the recording companies - that are under threat.

A general question and answer time was then held. I asked John Hennessey to elaborate on the potential for Audible Magic filtering of the Kazaa network and he merely indicated that only key word filtering and gold file flood filtering were considered immediate options and that the failure to implement these within the time specified by the court meant that Kazaa would be shut down. When questioned as to the motivation behind the Kazaa case John Hennessey indicated that the recording industry needed to do something while it implemented a legal download model. Tony Morris commented that the Kazaa litigation was based on sheer stupidity. Most speakers seemed to think there was no immediate threat of individual prosecutions within Australia, however Peter Coroneos indicated that the American ISP Verizon, was receiving in the vicinity of 300,000 requests for personal information a year and that in Europe the Cybercrime Treaty means that end user data may now be available to prosecute copyright infringement.

The speakers and some of the participants then met for drinks and for over an hour discussed cyberlaw further. At no stage did I mention that I was a blogger (isn't everyone?) so ethically I can't divulge the exact responses to my questions.

I asked about whether Wilcox's comments in the Kazaa case, where he indicated that individual prosecutions were not a viable option, would prevent ARIA from taking that step in Australia. Generally it was thought to be unlikely that that would prevent individual prosecutions from occurring.

We talked about the privacy implications of companies like Media Sentry and the monitoring of networks by private companies, and about individual prosecutions in the USA. I said to John Hennessey: "come on - you would have to agree that that is extortion!"

I also asked about the hope for collective licensing but generally it was suggested that it was unlikely to happen. I stated that the warnings on the Kazaa website had stopped me from using that software and had shifted me to another network.

At some stage I showed John Hennessy a book I was carrying in my bag - The Future of Music - I told him it was a good book. When all the others were talking among themselves, I said quietly to him: "I know you can't see this - but it would be a real shame for Kazaa to be shut down."

We all talked about other countries that it would be more legally viable to start a peer-to-peer network in. I suggested that the Kazaa litigation merely meant that the digital music revolution would not be owned by an Australian company.

As we were parting company I said - "thanks for your time - I hope you lose" - John Hennessey said: "we wont". He really thinks he is doing the right thing...

KOREA seeks to supervise P2P Networks

This is enough to make you weep !

Cho Jin-seo, KOREA: New Internet copyright bill under fire, The Korea Times, 7 December 2005

Kazaa Filtering

The media coverage concerning the decision of Kazaa to filter out Australian users rather than employ key word filtering suggests the parties will be heading back to court in the near future with ARIA pushing for the whole network to be shut down pending the appeal on 20th February. This follows the failure of the parties to agree on the implementation of the Audible Magic software - here's some links:

Editor, Big Music drops Audible Magic, P2P Net, 2005

I. Leshem, The 'idea that may save Kazaa', P2P Net, 7 December 2005

I. Ferguson, Sharman cuts off Kazaa downloads in Australia, CNET News, 5 December 2005

I. Ferguson, Kazaa blocks, warns Aussie users, ZDNet, 6 December 2005

A. Colley, MIPI to seek shutdown order, The Australian, 6 December 2005

K. Needham, Kazaa music ends on a sour note, Sydney Morning Herald, 7 December 2005

Motion to Dismiss Denied

P2P Net report that a mother who attempted to have an RIAA claim dismissed against her on the basis that it was her daughter that had downloaded music illegally has had her motion to dismiss denied. This means that any accussed individual has to go through pre trial and most likely a trial to challenge a claim brought by the big music companies - very expensive compared to the $7,500 settlement they have offered her.

Editor, Santangelo appeal dismissed, P2P Net, 28 November 2005

Editor, Patricia Santangelo ruling, P2P Net, 29 November 2005 (Full Transcript from this link)

Legal/Illegal Download Reports

J. Evans, Apple Drives Big Music Download Increases in Japan, Digital Music News, 30 November 2005

Digital Music News are reporting iTunes uptake in Japan to be on the increase: "Apple’s August 4th debut drove overall sales of 2.3 million downloads from internet-based music stores during the quarter, against 1.1 million in the preceding quarter and one million in the quarter before that... Meanwhile, cell phone download services continue to dwarf sales of PC-based downloads in the territory. According to data supplied by RIAJ, 97 percent of digital music sales belonged to the mobile industry."



But in stark contrast Jupiter Research indicates that file sharing is still at least three times more popular than legal downloads:

J. Best, Illegal file-sharing three times as popular as iTunes, Silicon.com/ZDNet, 30 November 2005

15 percent of consumers use P2P sites and five percent use the legitimate online shops.

Of those consumers aged between 15 and 24, 34 percent are illegal file-sharers and have little concept of music as a paid commodity. JupiterResearch found that 43 percent of younger consumers prefer copying CDs to buying them and 40 percent believe that CDs aren't value for money.

...illegal file-sharing is here to stay... "It's a firmly entrenched behaviour and the fact it's free makes it more difficult. Instead of [the industry] paying lip service to legal services... there needs to be a whole new layer of free legal services," such as ad-supported downloads..."

Search terms on Kazaa to be blocked

S. Deare, Search terms on Kazaa to be blocked, ZDNet Australia, 25 November 2005

Kazaa users have until 5 December 2005 to share popular works within the range of 3,000 key words provided by the recording industry before an updated version of Kazaa is to be released and adopted by the use of pop up windows. The recording industry had wanted 10,000 key words blocked. Sharman sought to have the deadline extended until March 2006 and had sought to adopt finger printing technology Audible Magic. The recording industry claimed that the technology was unreliable and the Judge agreed.

P2P, Online File-Sharing, and the Music Industry

R. Pollock, P2P, Online File-Sharing, and the Music Industry, TheFactz, 10 November 2005

Analysising five empirical studies relating to the loss of CD sales at the hands of P2P Pollock finds: "online illegal file-sharing does have a negative impact on traditional sales. The size of this effect is debated, and ranges from 0 to 100% of the sales decline in recent years, but a figure of between 20 and 40% would be a reasonable consensus value (i.e. that file-sharing accounted for 20-40% of the decline in sales not a 20-40% decline in sales).

Beyond this basic result several other very interesting facts have emerged. First is the differential impact of file-sharing on an artist depending on their existing popularity. According to Blackburn who investigates this issue the 'bottom' 3/4 of artists sell more as a consequence of file-sharing while the top 1/4 sell less. Second is the first tentative estimates (by Waldfogel and Rob) of the welfare consequences of file-sharing. Waldfogel and Rob's dramatic result is that file-sharing on average yields a gain to society three times the loss to the music industry in lost sales."

Sony's DRM Disaster

These are just in the order that I read them:

M. Russinovich,Sony, Rootkits and Digital Rights Management Gone Too Far, Mark's Sysinternals Blog, 31 October 2005

J. Borland, Sony CD protection sparks security concerns, CNET News, 1 November 2005

Editor, The Cover-Up Is the Crime, Wired News, 2 November 2005

J. Borland, Sony to patch copy-protected CD, CNET News, 2 November 2005

M. Loney, Sony's antipiracy may end up on antivirus hit lists, CNET News, 4 November 2005

I. Marson, EMI: We don't use rootkits, CNET News, 7 November 2005

R. McMillan, Italian Police Asked to Investigate Sony DRM Code IDG News Service/ PC World, 7 November 2005

J. Borland, Antivirus firms target Sony 'rootkit', CNET News, 9 November 2005

Editor, Viruses exploit Sony CD copy-protection scheme, Silicon Valley, 10 November 2005

Editor, Suit targets Sony BMG anti-piracy technology, Reuters, CNet News, 10 November 2005

Editor, Sony to Suspend Antipiracy CDs, Associated Press/Wired News, 11 November 2005

J. A. Halderman, Sony Shipping Spyware from SunnComm, Too, Freedom to Tinker, 12 November 2005

J. Graham, Sony to pull controversial CDs, offer swap, USA Today, 14 November 2005

Q. Norton, Sony Numbers Add Up to Trouble, Wired News, 15 November 2005

E. Felten, Immunize Yourself Against Sony?s Dangerous Uninstaller, Freedom to Tinker, 16 November 2005

M. Geist, The Lasting Impact of Sony's Rootkit, Michael Geist Blog, 20 November 2005

Editor, Texas sues Sony BMG over alleged spyware, CNET News/Reuters, 21 November 2005

EFF Files Class Action Lawsuit Against Sony BMG, EFF Website, 21 November 2005.

RIAA v The People: Two Years Later

EFF release a report on the first two years of individual p2p prosecutions:

http://www.eff.org/IP/P2P/RIAAatTWO_FINAL.pdf


The legal attacks on P2P technologies were initially successful in the courts. But as it was winning the legal battles, the recording industry was losing the war. After Napster was shut down, new networks quickly appeared. Napster was replaced by Aimster and AudioGalaxy, which were then in turn supplanted by Morpheus and Kazaa, which were in turn eclipsed by eDonkey and Bit Torrent.7 The number of file sharers, as well as the number of P2P software applications, just kept growing, despite the recording industry’s early courtroom victories. More recently, music fans have been turning to new so-called “darknet” solutions, such as swapping iPods, burning CD-Rs, and modifying Apple’s iTunes software to permit direct downloading.

The RIAA: Managing Jell-O

J. Lyman, The RIAA: Managing Jell-O, P2PNet/TechNewsWorld, October 2005

Here's a great story about the file sharing environment post Grokster - it seems file sharing is growing despite the efforts of the RIAA to shut it down.

"the RIAA court win has had 'zero-effect' on the growth of P2P users, which grew from 3.8 million average users per month when the RIAA suits began in 2003, to 9.5 million in August 2005.

History of p2p

CNet have put together a history of the four generations of file sharing networks - well worth the look !

File Swap Fall Out, CNet News, 2005

CachLogic Report

Freedom to Tinker highlights the new CacheLogic's report on peer to peer networks which includes global statistics on the popularity of networks.

E. W. Felten, P2P Still Growing; Traffic Shifts to eDonkey, Freedom to Tinker, 16 September 2005

P2P statistics

P2P net has some new statistics for usage over the past few years - 9 million average users at one time !

p2p download statistics, P2P Net, 10 October 2005

Welcome !

... to the new page for this site - it is still under construction as you can see...

This weblog is literally a log of the web in so much as I plan to link to other news reported on the net with a view to consolidating secondary source material in relation to topics. To start with I will be focussing on peer to peer as thats my current area of research. I hope you enjoy it !

S