MP3.com Pays Damages to Sony
Spudley writes "According to this story on the BBC MP3.com have agreed an out-of-court settlement to pay Sony music $20 million in damages for their past copyright infrigements. The deal also covers the future - MP3.com will from now on pay royalties to Sony. However, the judge has ruled that the trial must still take place, in order to make a ruling on other copyright cases against them."
i like to call it being a bully
Adler
Everybody denies I am a genius--but nobody ever called me one!
Now... If only myplay will support vorbis alongside mp3 and windows media....
(Oh - and go and listen to my Downtemp/L eftfield Selection on myplay....)
Looking beyond the specific case to the general question...
It's surely news to nobody that traditional approaches to copyright don't mix well with the net. What possible solutions to this are there?
We can abandon the notion of copyright. That raises the question of how creators are to be compensated. Personally I give some of the software and fiction I've created away - but not everyone is happy with this, and I wouldn't be happy if some of my favourite authors (say) had to gave up writing because they couldn't make a living from it.
The Street Performer Protocol will doubtless be familiar. That's one approach that might be useful. Another approaches might be for the state to support artists - this already happens to an extent anyway in some countries, but has the difficulty that you end up with a bias towards whatever the state (or its agents) prefer. (But would that be worse than a bias towards what the record companies prefer?) You have to collect the money, too, and new taxes are rarely popular.
We could do it through voluntary donations - charity, essentially - but that could be a bit hit-and-miss.
If we want to keep the notion of copyright, we could enforce it very strictly. But that would be expensive and intrusive even to do badly, and is surely impossible to do well.
We could all fit hardware-supported digital rights management subsystems to our computers, but that would again be intrusive and may be hard or impossible to do well; it'd only take one "chipped" PCs for the copyrighted cats to get out of the bag.
One can imagine a system where the content provider distributes (via the net, radio, etc) encrypted content to a tamper-proof player (hifi, TV, walkman, toaster, etc) in your home that they've sold, rented or just given you, and charges micropayments for each performance. The infrastructure costs would be hideous, though, as would be the impact on individual choice of playback equipment, and again once unencrypted versions of the content becomes available the whole systems falls apart.
We could just ignore the problem, and trust that unauthorized copying isn't such a huge problem after all. This might even be true; I still buy music CDs despite knowing that digital copies are often (illegally) available for nothing, for example.
Any other suggestions?
Every piece of music has two copyright holders - the big record labels have settled out of court... but the publishers still haven't made any legal moves yet..
My guess is mp3.com will have to move away from mp3s.
Had they set it up so that you actually had to transfer the MP3 files to them yourself, there would not have been a lawsuit. Other companies are utilizing that sort of thing now - including Nullsoft, a division of AOL/Time Warner. The problem is that they brought this one on themselves by using a system which sounds good in theory but is a lawsuit magnet in reality.
Lest anyone forget, the RIAA's ultimate goal is to eliminate the MP3 format entirely. Remember, they sued Diamond to keep the Rio off the market - a device which simply plays MP3 files. They will ultimately be unsuccessful...but IMHO the MyMP3 service was set up with the full expectation that they would be sued over it.
"Property is theft, therefore theft must be property, right?"
This is not what this means. The reason that mp3.com got in trouble was that they were giving you their copy of the music without paying royalties to the record companies.
Here is the rational. Any two rips of a track on a CD will produce different mp3's due to changes in variables beyond our control (unless somehow you find a way to control everything). In this way, the court is able to see an mp3 much like a copy of an old LP onto tape, each copy is a bit different.
Thus, when mp3.com makes a rip, they have in effect converted the music into another format (this is legal). However, they then give this legal copy away to people who have "proof" that they own the CD already (this is illegal as it is not in fair use to give away a fair use copy to someone else).
The best analogy I can give to this is that of a radio station. They convert the music they have purchased and convert it to another form, then pass it out over the radio waves. However, they can't do this for free, they must pay a fee to the record companies for the music they play, because they have given their "fair use" copies out for free (even to some people who own copies of the music).
This is why other places which offer to store mp3's which you rip aren't getting in trouble, because they are offering you a way to store and play your own fair use copies. So mp3.com was not letting you play music within your fair use guidelines and that is why they got in trouble. This is a case that I personally think was decided correctly, in a legal sense. I think its kinda screwed up that this doesn't work, but hey, the law hasn't had time to catch up with the new ideas yet.
They really have no say over what you can do with your CD. You can rip it to MP3, put those MP3s elsewhere and play them. You can upload them to your web site, download them at work and play them there. You can do anything you want with your CD except for distribute the music on it. It's the same concept that says I can't buy a book and make photocopies and give them to people. You own what you have bought, which is the CD, you don't own the content, so you aren't free to do anything with the content other than use it for the purpose it was sold for, which is to listen to. Other than in the area of redistribution, the record companies can't tell you what to do with your CD.
"Information wants to be expensive" - Stewart Brand, the same guy who said "Information wants to be free"
Hardly. SDMI is crap. MP3 is not crap but is a very useful format. MP3.com used Sony's recordings without permission, so they're being forced to pay royalties for these recordings in the future. The format is unaffected.
sulli
RTFJ.
"This settlement affirms and upholds the right of copyright owners to be paid for the use of their works on the internet,"
Let us not forget, that means Sony, not Bruce Springsteen.
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One thing this shows is that it would have probably been cheaper to come to an agreement BEFORE starting to take in dough using questionable IP policies, but from the amount of money mp3.com is expecting to be able to cough up, there is obviously money to be made in this.
As for the free beer crowd, I don't see how this handles the numerous decentralized free file sharing utilities out there, or makes Freenet any less viable.
But if mp3.com expects to rake in huge sums of cash I frankly am not going to weep for them if they forced by a court to cough up the profits, even to scumbags like Sony, RIAA, etc.
Unlike mp3.com you store material you can store anything you want - rather than what mp3.com has licensed.....
I wonder how much disk storage myplay could buy with the huinderds of millions that mp3.com is spending on licensing?
Hasn't myplay.com trademarked the term 'digital music locker'?
Minor differences in mp3s of the same song because they were ripped from two diffent copys of the CD, or because of different compression schemes, or whatever, is really quite ridiculous.
I know what the law says, but in this case it's merely a technicality. I believe the Supreme Court would find this hair splitting as ridiculous as I do. After all, we're not talking about different versions, or remixes, or anything else, and unless quality control at the pressing plant is horrible, their should be no discernable difference in encodings.
So, again, I'm not saying you're wrong, I'm saying that this is the point of contention, and it ultimately takes copyright, which grants fair use, and splits some fine hairs and creates a technicality. It's not in the spirit or intent of copyright law.
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Stupid sexy Flanders.
Not all cassettes and CDs are identical. There are some that have different songs or intros. For some you have to buy both the CD and the cassette to get everything.
If you've got a cable modem or dsl you can download an MP3 in 30 seconds, why spend 5 minutes or more to rip and encode the song when you can download it?
LK
"Hi. This is my friend, Jack Shit, and you don't know him." - Lord Kano
Actually, Slashdot did a story on this way back when MyMP3.com started up, and some people reverse-engineered part of the beam-it process.
Apparently, it was actually quite well designed. The server would request a random assortment of sectors from the CD, and the client had to send them back. This doesn't take long, but if you don't have the CD theres no way to supply the correct information.
So it was actually quite difficult to dupe the server.
On the other hand, it would be pretty easy for you and a friend to swap CD collections one afternoon and each add eachother's CD's.
Torrey Hoffman (Azog)
Torrey Hoffman (Azog)
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The RIAA is not just Sony. Other labels are plaintiffs in this suit, and they still want their share.
<O
( \
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Good advice for us all! ;)
I have a bunch of CD's "beamed" to my.mp3.com. Ever since the lawsuit they've been greyed out, and unplayable.
So, the settlement with Sony should mean that soon, I can play any Sony artist CD's once more from my.mp3.com.
But since they are licenced to play all of Sony's music library, does that then mean I can essentially play any Sony CD for free from my.mp3.com, or will I still have to "beam" up my own CD's?
In a side note, I wonder if it would be legal for myplay.com to combine multiple mp3 versions of the same song into one copy (or a few for different bit rates)?
"There is more worth loving than we have strength to love." - Brian Jay Stanley
How much "damages" in dollars did Sony pay to movie companies or to the MPAA (before Sony became a move company and bought Columbia Pictures) for its movie piracy device known as the VCR back in the late 70s? Answer Zilch. As usual justice is only for those with deep pockets.
For Sony to sue MP3.com is a little like the guy who kills his parents then asks the judge for mercy because he's an orphan.
I agree on the general issue, however if you look at it they are not really saying you can't do anything with *your* mp3 files, they are saying that mp3.com can not do a nifty market-share grab by using other people's IP.
If they planned this as a money-making venture they were not smart to avoid even good faith efforts at cutting a deal with someone. It would probably have been cheaper to go *just* to RIAA or one of the associations they could claim they reasonably believed had the rights to cut a deal about it, and agree to a royalties scheme. Then if they still got sued (probable), they'd have that to fall back on and RIAA (or whoever else got a cut) on their side instead of against them.
It's all still mafia-style tactics in the music industry, especially when you start threatening turf.
As for how this affects me, well, hell, I'll still do whatever the hell I please, and under whatever name I choose, and with whatever level of accountability I choose.
Personally, I think we should write to various fair use crusaders from both parties (Orin Hatch of Utah is emerging as one potential champion...), and say the following:
Information wants to be anthropomorphized.
And if you buy the CD and then later you hear the song on the radio, the radio station still has to pay for the priviledge of broadcasting the song. My.mp3.com is being treated no differently than a radio station.
And maybe that's the problem. The RIAA (and the law also, I guess) is treating transmission of a copyrighted work as "redistribution" even if the receiver already has the copyrighted work.
Probably the whole solution to this is to wait a few years until broadband is more available. If you wanna keep your music at home and listen to it at work, just run your own personal server instead of using my.mp3.com. Not feasible for everyone right now, but pretty soon.
On the plus side, though. If my.mp3.com pays Sony for rights to redistribute music, then does that mean they can transmit music even if the receiver doesn't have it? Can you (legally and rightfully) listen to the Springsteen MP3 from my.mp3.com even if you didn't buy the CD and do the challenge-response check? After all, Sony has been paid for it.
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As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
No messy encryption, tracking, IDs, whatever. Just be honest and fair. Sheesh.
sorry, but that won't ever work. You have to have the power of enforcement or rights will be abused. Personally I think it's very simple. Only people with the copyright may profit from protected materials (or licence to the copyrgiht). Others may traffic in those materials, but only at a net loss.
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+&x
Let me get this straight: 19-year-old CEO of MP3.com has to pay multinational billion-dollar corporation Sony $20 million because of copyright infringement? (Heh heh, sounds like the opposite of the 80's lawsuit with the woman who burned her crotch on a hot cup of McD's coffee and won multimill$$$)
Doesn't this seem a bit like swatting a fly with a sledgehammer? MP3.com is wrong, they violated copyrights, but what the fuck... Another attempt by the courts to deter by example a-la Mitnick, perhaps?
I guess this is reassuring because whenever an enemy strikes with such excessive force, and in such a state of panic, it means they are unsure of themselves and their future.
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Unto the land of the dead shalt thou be sent at last.
Surely thou shalt repent of thy cunning.
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I see a lot of bemoaning about the "revolution is over" and "goodbye MP3". This has no effect on MP3 the file format and only affects MP3.com the website. If their name was "Music.com" would we be crying out "now I can't listen to music anymore"? No.
I have never once downloaded anything from MP3.com or used any of their services but I have many MP3 files (mostly ripped from my own CDs but some obtained from Napster and the like).
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Actually, the founder of mp3.com bought the domain for about $1,000 from a man who had bought it because it contained his initials. However, they have been around for a few years, and they're no more a "domain squatter" than news.com, tv.com, computers.com, etc.
For more information, click here.
I have been considering the issues of copyright infringement and what it could mean to the current election. Currently, infringement of copyright is against the law of the United States. But consider what would happen if a political party decided otherwise.
If any of the third parties come out strongly against the DMCA and for limited copyrights (say 5 years as opposed to life + year-1929), then suddenly there are 20 million people who may just vote for them. It would be interesting to see whether or not Nader or Browne will come out against copyrights. It would be pleasant if one of the major candidates would do likewise, but with all that money from the movie and record industries out there, I kind of doubt that would occur.
MP3.com did not provide a digital locker where you could upload your own MP3's. It would take many hours for Joe AOLuser to upload his collection of Britney Spears music that way. Instead, they provided a service called "Beam It" where you would insert a CD into your drive, and the disc info would be "beamed" to My.MP3.com. This certified that you did indeed own the CD. Once there, MP3.com would then let you listen to digital recordings (from its collection, not yours) of that CD that you say you own.
Think now about how easy it would be to send bogus packets to dupe My.MP3.com into thinking that you own every CD ever created. You would be able to listen to music you don't own, which as we all know is a Crime Against Humanity.
For more information, click here.
It's your fair use to use MP3.com's system. The problem is, MP3.com had to copy and reencode a whole lot'a music to create their system, and that is the official copyright violation here.
"If one is really a superior person, the fact is likely to leak out without too much assistance" -- John Andrew Holmes
yup.
the guy just bought a good domain, he is not in it for the revolution, just the pay-off.
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+&x
Nice quote from the latest issue of Scientific American that just showed up, article about will MP4 do for movies what MP3 does for music???
try { do() || do_not(); } catch (JediException err) { yoda(err); }
Considering that Sony was the defendant in a major lawsuit that Napster, MP3.com, and 2600.com have used for citing precedent. And now they've taken the part of the plaintiff. Isn't that just discouragingly political? Yesterday's revolutionary is today's establishment.
That's why if I were to ever run for elected office, it would be on the promise that my first official act would be to resign.
Any sufficiently advanced civilization is indistinguishable from Gods.
I know you're just trolling, but I can't resist a coherent response.
(you can forget all the second rate ramblin' noise that 'independent artists' make in daddy's basement)
I'm sorry if your quest for independent music has not yielded the results you hoped for. Here are some of the mp3.com artists and songs that I enjoy. You might find them tolerable.
So much for MP3.com being free... how much do you think they'll charge now? Of course, there's already plenty of reasons to boycott Sony anyway...