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Judge Rakoff Explains MP3.com Ruling

Saint Aardvark writes "Wired News reports here that Judge Rakoff explained his ruling on MP3.com. According to him, MP3.com was "simply repackaging" the recordings, adding nothing, and therefore unable to claim fair use. "

25 of 252 comments (clear)

  1. Interpretations of IP by Stickerboy · · Score: 5

    Ouch. The way Rakoff explains it, when you purchase a CD or other recording, you purchase the rights to just that copy of the IP. It means that mp3 players and converting music to mp3s are pretty much illegal, unless the record labels and artists themselves give explicit permission otherwise, whether through a blanket authorization or case-by-case. I'd be interested if anybody who studys IP case law can cite other cases where this view of IP is contradicted.

    Either that, or hope the record companies are generous enough to loosen the rules of "what you can do with that $13 CD".

    telnet://bbs.ufies.org
    Trade Wars Lives

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    1. Re:Interpretations of IP by Mindwarp · · Score: 5

      OK, first off IANAL.

      Now that's out of the way...

      Fair use allows us to 'space shift' (i.e. duplicate for the sake of changing the playback format/medium) works purchased by us for our own personal use. I don't believe than anything in Judge Rakoff's summarization contradicts that on a personal use basis.

      I think what has caused the adverse ruling against MP3.com is that they had effectively duplicated and broadcast the artists IP without the artists or recording label's permission. We're not talking fair use, we're talking re-broadcasting. Ultimately this is all coming down to the fact that mp3.com were extracting value from the artists IP without being under license (how many extra CD sales did MP3.com process due to this / how many extra site-hits did they score?)

      Just my take...


      --

      --
      The gift of death metal does not smile on the good looking.
    2. Re:Interpretations of IP by StenD · · Score: 4

      The way Rakoff explains it, when you purchase a CD or other recording, you purchase the rights to just that copy of the IP. It means that mp3 players and converting music to mp3s are pretty much illegal, unless the record labels and artists themselves give explicit permission otherwise, whether through a blanket authorization or case-by-case. I'd be interested if anybody who studys IP case law can cite other cases where this view of IP is contradicted.

      Sony Corp. v. Universal City Studios, Inc., 464 U.S. 417 (1984) covers the use of VCRs for time shifting. However, as RealNetworks noted in their case versus Streambox, Sony covers personal copying, like what you are discussing, whereas the mp3.com case covers commercial copying. I'm not sure if the Diamond Rio case touched upon the DMCA or the personal use question.

  2. What's the difference? by (void*) · · Score: 3
    Rakoff disagreed with MP3.com's argument that its music service is the "functional equivalent" of storing CDs that had already been purchased.

    "In actuality defendant is replaying for the subscribers converted versions of the recordings it copied, without authorization, from plaintiffs' copyrighted CDs," Rakoff wrote.

    Judge Rakoff seems to ignore that fact that the digital copies are nearly indistinguishable. I say nearly becuase we all know that the ripping process is not perfect, that some amount of noise and loss must be endured. MP3 is a lossy format after all. So there is nothing wrong with MP3.com's argument. I don't see how he could disagree, since MP3.com could have gotten these copies from the legal distributors and done the same. Does that mean that the my.mp3.com service is noe legal?

    The fact of what the plaintiffs did should not matter, since the copies are virtually identical. I think Rakoff is just confused.

    Don't get me wrong, I think MP3.com does not have case. But this just does not seem like a relevanty argument at all.

    1. Re:What's the difference? by Kaa · · Score: 4

      Judge Rakoff seems to ignore that fact that the digital copies are nearly indistinguishable.

      Not at all. It's a difference of opinion: you say that digital copies are all the same and any copy is as good as any other copy. Rakoff disagrees: he distinguishes between copies on the basis of their ancestry. This is a perfectly valid viewpoint.

      In the MP3.com case, Rakoff in particular makes a legal distinction between a copy that MP3.com made itself (call it copy1) and a copy that a user owns (call it copy2). The way MP3.com used to work is that if you can prove to it you have copy2, it'll play copy1 for you. Now, from an information-theory point of view, copy1 and copy2 are very, very much alike. Legally, however, they are quite different, since different entities own them. Rakoff pointed out that difference, and was correct IMHO.

      Kaa

      --

      Kaa
      Kaa's Law: In any sufficiently large group of people most are idiots.
    2. Re:What's the difference? by (void*) · · Score: 3
      This makes very little sense. If I show you two identical balls, and then try to sue you for stealing one which I say is free, and the other, which I say is mine, what would you do?

      That is exactly what the argument is about. For listening purposes, one copy is as good as any other. To say that I use one but not the other is just looking for differences where there aren't any. If you took the principle to something else like source code, the copies are perfect and identical. You cannot GPL one and not the other!

      Or think of it another way. If MP3.com took the pains to pay royalties to RIAA (an amount to their satisfaction), I don't think there would be any complaints about the "lineage" of the copies.

      Not convinced? I can think of more hairy situations that could arise ... such as you downloading a song from a public ftp server. You did not know it is a copyrighted song, and that was placed there by some warez d00d. Now when you find out, you try to pay the author fairly. But the author refuses to accept the money and sues for more damages, claiming that you copied from a "tainted" source, and should have gotten "clean" copies from him, despite there being no difference.

      This is just opening a whole big can of worms.

    3. Re:What's the difference? by (void*) · · Score: 3
      Sorry, I was not very clear. I show you two balls, and say one is mine, the other is not, and is free for you if you want. I give no indication of being able to tell which is which. (Assume you have done some tests that this indeed is the case. But you let me continue to believe so.) One day, I wake up to find one ball in your possession. Can I raise hell?

      Your other example is flawed. I am not free to delete your file, becuase that would be depriving you of what you have. You must remember the key point here - copying digital music does not destroy the original. The more interesting siutuation where copyright laws may apply is if you lost one file, and ask me for copy. Whether I could give it to you or not depends on who own the copyright of the file.

      The UCITA for example was protested vehemently by many slashdotters because of the clause where software owners can remotely disable software. I don't think copyright owners can delete your files just like that, because of copyright violation. They must go through the long process of suing you before they can deprive you of their software.

  3. What is MP3.Com adding? Let's look... by JoeShmoe · · Score: 5

    1) If I only own an audio CD player, they save me the cost of having to buy a CD-ROM drive to play my music on my computer or portable system.

    2) MP3.Com saves me the time it would take me having to extract all the digital audio from my CDs. Also, they are saving me the cost of having to buy a CDDA program.

    3) MP3.COM is saving me the time and possibly bandwidth charges that I would incur by uploading my 200 CD collection. Nealy every high bandwidth connection is capped on the upload, which means it would be impossible for me to stream my audio to my computer at work from my computer at home. It would take me three months of solid uploading to get my entire collection online somewhere that I can download at the full 128/160/192 bitrate.

    4) MP3.Com is saving me the time it would take to encode all my music to MP3 files, which are most definitely more versitile. They are also saving me from having to buy an encoding program.

    5) This may not be a feature yet, but certainly MP3.Com could store multiple bitrates of my songs, so that I could custom tailor it for the device...64kbps mono for my Rio, 128kbps for my home DSL...192 for my fat connection at work.

    6) MP3.Com is saving me hundred of dollars in media costs. I would need 12 GB of space to store my collection...and since this is 12GB of data that is READ-ONLY, that is a real waste of hard drive space. WORM media is a better choice, but you can't store 12GB on anything currently available.

    It looks to me that an obviously technophobic judge has made a very, very narrow ruling that make very, very broad use of the word "repackaging". When you are talking about adding value, this "repackagin" is adding a lot of value. For him to dismiss all the above as just mere "repacking" is almost like say "I had a bunch of music I could only listen to at home on my stereo...yada yada yada...now I can listen to it any time, any where." That's a pretty big yada.

    Oh, one other thing...how many companies out there keep separate copies of files for each user when they are the same file? Of course not, that's what links are for. It seems like MP3 could get around this problem by giving users the tools...having them encode all their music...then uploading it back up to MP3 (essentially doing the fair use part themselves). The end result would be no different than what you have now.

    If I was MP3.com I would wave a magic wand and then tell the courts and RIAA "We didn't make that music. It was uploaded by hundreds of users who own the albums". Of course, they would have to "delete" any albums that no one had (yet) registered but assuming someone does, it wouldn't be too hard to suddenly "recover" it.

    - JoeShmoe

    -=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= -=-=-=-=-=-=-=-

    --
    -- I wonder which will go down in history as the bigger failure: the War on Drugs or the War on Filesharing
    1. Re:What is MP3.Com adding? Let's look... by Tackhead · · Score: 5
      > If I was MP3.com I would wave a magic wand and then tell the courts and RIAA
      > "We didn't make that music. It was uploaded by hundreds of users who own the albums".

      That's my problem with the ruling.

      • Premise1: The aim of copyright law is to protect the IP of the owner
      • Premise2: a secure technology which requires ownership of physical media is a good mechanism to ensure that the downloader has a license (in the form of physical media) to listen to the content embedded thereon.
      • Premise3: Space-shifting is legit because it's fair use.
      • Conclusion: Any technology which requires users to prove ownership of a piece of music before allowing them to space-shift ought to be, a priori, legit.

      It should make no fscking difference whether MP3.COM does the ripping and asks you to prove you own the CD, or if myplay.com requires the end user to do the ripping and upload the MP3.

      Since what's really happened is:

      • Services like mp3.com which do the ripping for you and require proof of ownership of physical media are Deemed Naughty.
      • Services like myplay.com which require the end user to do his or her own ripping and uploading as proof of ownership of physical media are Deemed Non-Naughty
      And since:
      • Nobody's seriously argued that owning the CD doesn't constitute proof that the owner has a right to listen to the content on it.
      • Nobody's overturned space-shifting as fair use lately
      I can only concluce that the first premise is false, and that RIAA really doesn't give a wet slap about consistent enforcement of intellectual property rights as anything other than a club to beat an old enemy, MP3.COM, into submission.

      Am I the only one on the face of this earth who doesn't see a glaring inconsistency here? If it were about protecting intellecutal property, RIAA would be arguing that both mp3.com and myplay.com ought to be burned to the ground

      You can't have it both ways.

      • If you care for consistency in the application of IP law, you must conclude that either mp3.com and myplay.com are legit, or both are violating (or facilitating the violation of) copyright. I don't care which side of that fence you fall on - the as long as you don't try to have it both ways. End users who own media should be able to space- and format-shift, or they should not. In terms of protection of intellectual property, the mechanism is utterly irrelevant.

      • Furthermore, if you reject this conclusion (that the method of shifting is irrelevant) on the basis of law - if you really believe that what mp3.com did is/ought-to-be illegal, but that what myplay.com is doing is/ought-to-be allowed - and you still pretend to give a damn about consistency in IP law, you must conclude that IP law as it exists on the books is fundamentally flawed and needs to be rewritten.
      A final note to Judge Rackoff - and it's a pity we can't bring him in for an interview - but if we could, I'd like to ask him the following:

      Is space- and time-shifting legal, regardless of mechanism, or not? To be sure, the law makes a distinction in terms of mechanism, and it's on those grounds that you've rendered your judgement. But you've utterly failed to explain why the mechanism matters in anything but the most narrow legalistic sense. In so doing, all you've accomplished is to bolster the argument that IP law as it exists on the books is hopelessly outdated and needs to be thrown out and replaced with something that accomplishes what it was intended to do.

      Trying to pretend that mp3.com and myplay.com are somehow fundamentally different bespeaks a grave lack of understanding of what IP law was designed to accomplish, and with all due respect, brings both the law and your court into disrepute.

  4. Important to understand Fair Use doctrine by dave_aiello · · Score: 5
    I think it's great that a story about the details of the judges ruling made the cut as a Slashdot story. I have gotten myself into discussions with lawyers about this issue, and they keep pointing me back to the "Fair Use" Doctrine.

    When I started to read about it, I realized how many factors have to be weighed in order to make a legal decision like this one. As much as many of us would like to believe it, the issue cannot be boiled down to "mp3 format good, media companies bad.".

    If you are interested, check out the Copyright and Fair Use Web Site at Stanford.


    --

    Dave Aiello

    --
    -- Dave Aiello
  5. Re:Hello Hemos! by Kintanon · · Score: 3

    You don't have anything to post? How about this? It's a description written by those responsible of how they cracked apache.org.

    What? apache.org was cracked?? Yep--yet another story Slashdot apparently declined to post. (those who submitted respond to this post so we know you're out there)


    On the main page if you will look to your right and then down the side of the page you will see under 'Science' for some odd reason, the story about the Apache.org crack. Please, be sure of your facts before you post.

    Kintanon

    --
    Check out JoshJitsu.info for Brazilian Ji
  6. Digital copies by Kaa · · Score: 5

    An interesting ruling. As far as I could figure it out, the main defence of MP3.com was: this is just space-shifting (which courts accepts as legal under fair use) of the recordings which users own. The judge said: no, digital copies are not the all the same. The crux of the matter seems to be that MP3.com ripped its own copy of the CD [call it copy1] and played it to a user who certified that he owns a copy [copy2] of that particular song. Because copy1 and copy2 are not the same thing, allowing the user to listen to copy1 is copyright infringement.

    Note that services like iDrive, to which you can upload all the mp3s you want, are quite safe since there is only one copy of the CD that's being shuffled between hard drives.

    Kaa

    --

    Kaa
    Kaa's Law: In any sufficiently large group of people most are idiots.
    1. Re:Digital copies by G27+Radio · · Score: 3

      The judge said: no, digital copies are not the all the same. The crux of the matter seems to be that MP3.com ripped its own copy of the CD [call it copy1] and played it to a user who certified that he owns a copy [copy2] of that particular song. Because copy1 and copy2 are not the same thing, allowing the user to listen to copy1 is copyright infringement.

      A couple months ago a friend of mine was staying with me that had a scratched Sublime CD (40oz--one of my favorites.) Using cdparanoia I attempted to create a "repaired" copy for him using my computer, my CD burner, and my recordable media. Is that illegal? Should that be illegal?

      However the disc was so badly damaged that I couldn't create a good copy for him. So I made a copy from my legal purchased copy of the CD. Is that illegal? Should that be illegal?

      I'm not trying to make a point by asking this. I'm looking for your and others' opinions.

      numb

  7. Re:How does this differ. . . by briancarnell · · Score: 5

    Radio stations pay *royalties* when they rebroadcast copyrighted music. The whole point of MP3.Com is that it claimed it didn't need to pay royalties for rebroadcasting copyrighted music.

  8. Re:How will this affect everyone? by Kaa · · Score: 3

    Worst case scenario, let's say that courts judge mp3 as being an illegal file format and it must cease to exist.

    Err... mp3 is a file format. All it does is describe a convention for attaching meaning to certain zeroes and ones arranged in a sequence. How that could be found illegal I don't know (but the US legal system surprised me before: I am not saying this is flat out impossible).

    Kaa

    --

    Kaa
    Kaa's Law: In any sufficiently large group of people most are idiots.
  9. Judge Rakoff, get a clue. by C+R+Johnson · · Score: 4

    1. I make a copy of a CD I own onto audio tape for my private use... Fair use.

    2. I make an exact duplicate of a CD I own for backup or convienence for my own use... Fair use.

    3. I make an MP3 from a CD I own and serve it over my home intranet for the purposes of conviencence and entirly for private use... Fair use.

    4. I put that MP3 on my private internet server so that I can listen to it wherever I am... Fair use?

    5. I use a public service for the same purpose...only they rip (most of) the CDs (even more convienence) and take reasonable steps to assure that I own them... Not fair use.

    I think that as long as reasonable steps are taken to confirm ownership, there should be no problem with this type of service.

    --
    The alternative to limited government is unlimited government.
  10. Re:Hello Hemos! by Pfhreakaz0id · · Score: 3

    And we all know M$ security blunders never make it on the front page right?
    ---

  11. Re:How will this affect everyone? by Sloppy · · Score: 3

    Worst case scenario, let's say that courts judge mp3 as being an illegal file format and it must cease to exist.

    That isn't going to happen. Nothing about this case has really been related to MP3s themselves. If mp3.com broadcasted WAVs or AIFFs, the outcome would have been the same. No file format is going to get outlawed (not even by DMCA) unless congress passes additional legislation. (Well, ok, some could be supressed by strict patent enforcement, and MP3 is vulnerable there, but that's not quite same as outlawing.) And if those assholes in Washington think we're not watching them now, boy are they in for a surprise.


    ---
    --
    As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  12. Chuckie explains Judge Rakoff's Ruling by ch-chuck · · Score: 4

    mp3.com defense budget - $ 35,192.63
    RIAA prosecution budget - $2,462,898.35

    Any questions?

    --
    try { do() || do_not(); } catch (JediException err) { yoda(err); }
  13. Re:Reasonable by boing+boing · · Score: 3

    I believe that the law is at fault here. Look at the following excerpt from the RIAA.

    -Start-
    What You Can Copy

    First, for your personal use, you can make analog copies of music. For instance, you can make analog cassette tape recordings of music from another analog cassette, or from a CD or from the radio, or basically from any source. Essentially, all copying onto analog media is generally allowed.

    Second, again for your personal use, you can make some digital copies of music, depending on the type of digital recorder used. For example, digitally copying music is generally allowed with mini-disc recorders, digital audio tape (DAT) recorders, digital cassette tape recorders and some (but not all) compact disc recorders (or CD-R recorders). As a general rule for CD-Rs, if the CD-R recorder is a stand-alone machine designed to copy primarily audio, rather than data or video, then the copying is allowed. If the CD-R recorder is a computer component, or a computer peripheral device designed to be a multi-purpose recorder (in other words, if it will record data and video as well as audio), then copying is not allowed.

    Admittedly, the rules for digital copying are a little more complicated, but they exist for a reason. Under the Audio Home Recording Act, the manufacturers of some types of digital recorders pay a modest royalty to partially compensate the artists, record companies and music publishers hurt through unauthorized copying. These devices also incorporate technology to prevent what is known as serial copying, that is, second and higher generation copies. Thus, while you are allowed to make a copy from an original, you are not permitted to make (and compliant recorders will not permit)copies from copies. The royalty provisions and the serial copying provisions are an important part of the compromise that allowed these digital recording technologies into the market.

    -Stop-

    The rules are unneccessarily complicated. If one instance of digital copying is allowed, they all should be allowed ***For Personal Use***. And mp3.com has no way to control whether copyrights are being violated. They should pursue the consumers of mp3.com who they believe are violating the copyright.

    This law seems to stink like it was paid for heavily by the recording industry with no real thought paid to the long term consequences.

  14. Cacheing takes a hit by Effugas · · Score: 3

    The core essence of adding something new is when a previously impossible activity becomes feasable.

    It was previously impossible to listen to the music you purchased wherever you could find a net connection.

    It should arguably remain impossible to listen to the music you never purchased--by your casual ad listening, by sponsorship, or by buying the CD. And that's what MP3.Com implemented.

    To be honest, MP3.Com really did nothing more than cache the songs its users proved they owned. Instead of storing 100,000 copies of Britney Spears's latest single, they stored one. Instead of requiring people to send 100,000 copies of that single, which would be the literal definition of a space shift, they only sent the minimum cryptographically equivalent data necessary to prove the ownership was valid. But the end result was the MP3.Com was able to add value to a customer's existing property in a way that was efficient on networks yet far more secure than anything the music industry has made themselves.

    Essentially, MP3.Com has been an extraordinarily cooperative corporate citizen to the music industry, and probably never would have gotten in trouble with this in the first place if they had paid some dues to RIAA, ASCAP, and BMI, all of which might fear losing influence of one form or another.

    We don't have bribes here. We've got charter members.

    Yours Truly,

    Dan Kaminsky
    DoxPara Research
    http://www.doxpara.com

  15. Re:Reasonable by Tackhead · · Score: 3
    > if I borrowed 100 CDs from a friend for an afternoon and registered them,
    > then returned the CDs, I would be able to listen to music I hadn't purchased.

    Agreed - but how does ripping and uploading your own MP3 prove that you purchased the CD either?

    All it means is that you had your mitts on the CD for 15-20 minutes to do the ripping to your hard drive, rather than 1-2 minutes to do the CD-registration at my.mp3.com.

    Either space- and format-shifting of CDDA media to MP3 files to be downloaded over a network is legal, or it's not.

    I know that you didn't make this distinction in your post - and that you (and I, and most others) would all agree that a user who brorrowed 100 CDs from a friend to rip them and upload them to a secure web space was just as much a copyright violator as one who pulled the same kind of stunt with mp3.com registrations on borrowed CDs.

    But the judge did make this distinction, and in so doing, IMNSHO, displayed a shocking lack of clue as to what IP law was intended to do.

    What should matter is whether or not the end user has a right to listen to (an MP3 representation of music transmitted over a network) to which he or she has purchased the right to hear (a CDDA representation of music stored on a compact disc).

    The mechanism by which the space- and format-shift occurs ought to be irrelevant.

    Arguing that it matters who/when/how the rip took place is like saying that it's legal to grow peas in your own garden and store them in your freezer for the winter, but illegal to purchase peas grown and frozen by someone else from the grocery store.

    (Visualize whirled peas! :)

  16. Fair use and "repackaging". by seebs · · Score: 3

    Everyone seems hung up on the "more convenient" format. Would you argue that printing a smaller-print copy of a book is "fair use"? Of course not.

    No *creative content* was added. I agree with the judge on that one.

    Also, people are missing another crucial point:

    That the judge made a decision based on a given factor does *not* mean that, if he's wrong on that factor, the decision is wrong. He might have ended up making the same ruling based on other factors, and in a case like this, probably would have.

    The absence of a sufficient condition for one conclusion is not a sufficient condition for another conclusion.

    --
    My blog: http://www.seebs.net/log/ --- My iPhone/iPad app: http://www.seebs.net/seebsfrac/
  17. This Ruling Against Precedent by Randym · · Score: 5
    1st: IANAL.

    IIRC, there was a case many years ago involving two phone companies. Company 1 invested a great deal of time in putting together a list of phone subscribers. Company 2 "borrowed" the same list and made it available under their imprint. Company 1 sued them for copyright violation. Who won?

    Company 2!! It was ruled fair use. They did not add any value to the list, merely reprinting it.

    The name of the case escapes me at the moment; however, it was a precedent-setting case and any capable lawyer out there could probably come up with it in a few minutes.

    I think the judge's ruling will be overturned on appeal because of the case that I have cited above.

    --
    DNA is a Turing machine. You, however, being dynamic and emergent, are not.
  18. Re:Reasonable by BeBoxer · · Score: 3

    I think the judge is thinking of this in the commercial domain. I believe that copyright law often distinguishes between things that are OK for private individual to do for personal use, but not OK for a corporation to do for profit. For example, can I turn up my stereo really loud so that I can hear my tunes in the front yard? Certainly. No judge in the world is going to have a problem with that (unless it's a noise violation in your town.) Now, suppose that I turn the stereo way up and begin charging people a dollar a piece to sit in my front yard and listen to my stereo. Think the judge would mind? Almost certainly.

    In the same vien, do you think a judge would mind if I rip my own CD's and put them on my personal web server on my DSL line or whatever so that I can access it (via password or whatever) from work or wherever? Almost certainly not. But this isn't what my.mp3.com was doing. Imagine a company that begins making tapes of CD's. Now imagine that it begins selling these tapes without getting permission from the copyright holder. But, the company says, we only sell the tapes to people who show us their copy of the CD! Do you think the judge is going to care? No. They are selling illegal copies of copyrighted material. Just because an individual is allowed to do something for personal use doesn't mean a company can do it for profit.