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Judge Orders MP3.com to Pay $118M Damages

jbridleman writes "Fox News is reporting that MP3 must pay $118M to Universal Music Group for copyright violation. Much less than the $450M UMG wanted." They're calling it willful copyright violation. Says that if MP3.com is forced to pay this much for every album they made available with their beam box software, it could cost them over 3 billion dollars.

385 comments

  1. nothing more than COMPRESSION by lytles · · Score: 3

    first off, most of the (>=+2) comments so far seem to agree with the judge, think that the ruling is fair (perhaps the fine is high). these people and the moderators, need to spend less time sucking on the mass media pipe, and more time thinking for themselves - better yet, given the results so far, they might be better off not thinking for themselves and just spend a bit more time listening to rms, because they have become victims of the riaa/bsa/... propaganda he has cautioned about. you are thinking way inside the box.

    beam it allowed:
    a user to listen to his/her collection of music

    that is all. the judge, and the fools that agree with the decision, have been caught up in the concept that mechanism matters. it does not. so long as the owner is the listener, any number of miles of wire, copper or aluminum or fiber, any transport format, any means of display (speaker or eg braile), is fair use.

    the complaint is that beamit was a performance because it played music from cds mp3.com owned. this is bull. totb.

    beamit's use of the cd serial number is nothing more than a means of compression.

    the copyrighted data was read from the cd, sent to the remote site where it was stored, and then sent to the owner in another location. the format and the compression scheme changed along the way, but the end result is that the owner is listening to his own music

    1. Re:nothing more than COMPRESSION by Another+MacHack · · Score: 1

      You seem to be arguing that the distinction shouldn't matter, and that the law shouldn't take the distinction into account. Fine. I agree with you. The issue is what the law says, not what it should say according to us.

      Furthermore, that's not even what this case was about. This case was about my.mp3.com's initial action of copying the CD's to their servers in the first place. This is perfectly allowable for personal use. They were doing it as a business. I don't think that what they did is morally wrong. I don't think that it should be against the law. I do think that it is fairly easy to see that it is against the (unfair) law as currently written.

      A CD serial number isn't compression, it is a key in a database. There is no computable method of extracting the contents given the serial number unless you already have access to the contents. my.mp3.com didn't use a serial number like CDDB, though, it calculated hashes from random sections of digital audio data, making it more secure than just calculating a deterministic CD serial number. It was not, however, proof of ownership, merely proof that you had physical access to the CD for a couple minutes.

    2. Re:nothing more than COMPRESSION by Chris+Johnson · · Score: 2
      Contract is about agreement and permission, not technical details.

      I think you make an admirable case, a sensible argument. However, I am not the one who needs to be convinced of it. The original record labels are the ones who would need to be convinced of that- BEFORE! mp3.com went around ripping all their CDs to provide a commercial service.

      If they'd made this case and the labels agreed that it was 'space-shifting' and didn't affect their core business (shyyeah right- but let's pretend) then we'd have an AGREEMENT and there would be no lawsuit because mp3.com was doing stuff with content that the labels AGREED to have done.

      Instead, mp3.com blew it- which I think is a great pity. They behaved as if all that stuff was public domain, just because a lot of people owned copies. They needed to ASK PERMISSION. I would even say that you could make a case that nothing more would be needed- that there would be no case for paying the labels for access to the content for the purpose of building this big database of mp3s for commercial purposes. But they did NOT ask.

      I hope when Warner's or Universal come after _my_ content to make some sort of 'centralised music e-collection! Includes all the music in the world, now you need never ever look at indie music websites and hear their pathetic pleas for you to buy your CDs, because we have all the mp3s they released, right here with a Warner's ad banner on top!' website...

      ...that this same issue returns to bite THEM in the ass.

  2. Re:You do not understand by interiot · · Score: 2
    MP3.com infringed on UMG's copyrights when it copied CDs to onto Mp3.com's disk drives.

    I'm allowed to copy CDs onto my disk drive. What's the difference?
    --

  3. Re:GOD DAMN I'M PISSED by Luminous · · Score: 3
    Actually the figure is based off of a maximum punitive damage of $15,000 per cd. The damage is punitive due to the piracy charge, not simply preventing sales of cd's.

    The judge reduced the amount drastically because mp3.com was acting with much more care and responsibility than other internet start ups. And I believe the fact that UMG was the only label not to settle out of court, the judge made a ruling comparable to those other settlements.

    The ruling, while sucking big time, is relatively fair.

    --
    This is not the way to build a lasting empire.
  4. Re:mp3.com still does not have broadcast rights by brokeninside · · Score: 3
    MP3.com absolutely did not broadcast the music.

    mp3.com did broadcast the music, albeit to a selected audience. However, according to current copyright law, it does not matter whether the person being distributed to has a valid license. It only matters whether the person doing the distributing has a valid license.

    I repeat: under current copyright law, there is no such thing as a 'right to listen.' The only right that copyright law effects is the 'right to distribute.' And without an explicit right to distribute (such as that purchased through ASCAP or a similiar group), the only distribution rights that anybody has are those that fall under the notion of 'fair use.'

    I don't buy for one second that my.mp3.com falls under any sort of fair use. And apparently, the courts did not either.

  5. Has nobody noticed? by Palin+Majere · · Score: 2

    It's a $250 million aware, not $118 million. I'm not sure where people got the 118 number from. It's not in the article anywhere....

  6. Re:Slow Down Cowboy... by AstroJetson · · Score: 1

    Prevents a bot from spamming or DoSing /. I think. If that's the real reason, they could say so rather than inventing some fiction about giving others a fair chance to post.

    --
    Admit nothing, deny everything and make counter-accusations.
  7. Re:Huh? by Mr+Z · · Score: 1

    Yeah, but if you borrowed the CD, you could also rip it and encode it yourself too. As others have pointed out, the only way to infringe via Beam-IT is to already be in a position where you could infringe without Beam-IT, plain and simple.

    --Joe
    --
  8. Re:Is this based on revenue earned? by JArneaud · · Score: 1

    Exactly, I was thinking the same thing. A reasonable fine would be a small multiple of the amount of money that MP3.com earned through advertising. $118 million (or whatever the figure was) is insane! Where is MP3.com going to get the money to pay for this anyway??

    On another note... I wonder if the artists whose CDs were allegedly "ripped off" will see a single cent of this money? Nope, didn't think so.

  9. Re:Huh? by MaxGrant · · Score: 1

    Well, maybe when people say "Viola" they intend you to hear the zing of a chord being played on the viola.

  10. Slight Correction by Luminous · · Score: 2

    When I say comparable, I am saying within the same realm as the other settlements, which were actually around $20 million. $118 million is considerably more than that, but drastically less than the $450 million UMG was originally asking for.

    --
    This is not the way to build a lasting empire.
  11. Re:Lesson learned: by Azog · · Score: 2
    That, in my book, is not "honest business".
    Technically, yes, it seems they broke the law. But many people think that what my.mp3.com did with their Beam-It app should not be illegal. The law is wrong. Distributing copyrighted material to people that have already paid for the copyrighed material should not be illegal.

    I think that MP3.com was trying to be an honest business, but the IP laws in this country are so screwed up that they made an honest mistake.

    Torrey Hoffman (Azog)
    --
    Torrey Hoffman (Azog)
    "HTML needs a rant tag" - Alan Cox
  12. Re:As much as I hate to say it... by interiot · · Score: 2
    As much as I hate to say it, MP3.com was engaging in distributing copyrighted material without permission and deserve to lose the case

    They distributed it to whom? People who had already paid for use of the copyrighted material. Does this require permission from the copyright holders?
    --

  13. Re:I still don't believe it by interiot · · Score: 2
    Well lets be honest now... Earthlink had the permission of the copyright holders to do that.

    Yes, in a way, by putting it up for all to see, CNN (for example) is giving permission for the data to be copied anywhere.

    That's not quite right though. What if I printed off the CNN.com website and started handing out the copies to people? And charging enough to make a small profit since I'm giving them a more portable copy? Would that be okay? I'm guessing "no". So how is this different from the ISP case? I don't think it is.
    --

  14. Who do you think they'll be suing next? by Greyfox · · Score: 2

    They're playing this game of whack-a-mole. Wonder if they'll manage to whack all the moles...

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

    1. Re:Who do you think they'll be suing next? by mOdQuArK! · · Score: 2

      But it really sucks to be a mole...

    2. Re:Who do you think they'll be suing next? by jafac · · Score: 2

      Maybe it sucks to be a mole, and it also probably is a bit frustrating to be a whacker. But at $500/hr, it probably ROCKS to be a hammer (lawyer).

      if it ain't broke, then fix it 'till it is!

      --

      These are my friends, See how they glisten. See this one shine, how he smiles in the light.
  15. Re:Damages by Shadarr · · Score: 1

    I was confused by that too. Signal11, care to clarify?

  16. Re:I still don't believe it by Trinition · · Score: 1
    As weston posted elsewhere in this thread, the compensatory damages are not fair even in the case you pointed out. Where did the $118M come from? is that lost sales? Couldn't be. Is it the revenue MP3.com made from advertising? If so, I need to copy their advertising model so I can retire tomorrow.

    To me, the $118M sounds like a punishment. A harsh punishment at that. Besides, I don't think MP3.com had any bad intent in doing the whole thing. I guess the judge did?

  17. Re:You do not understand by ethereal · · Score: 1

    Well, technically just copying it onto your hard drive falls within the bounds of fair use (not to hear the RIAA tell it, but really it does). Now actually distributing it over the Internet probably is a copyright violation, due to the current copyright laws.

    Unfortunately, the only people who could currently implement Beam-It legally would be the recording companies, who are of course the last people to take an interest in doing so. Oh well.

    --

    Your right to not believe: Americans United for Separation of Church and

  18. Re:You do not understand by Sloppy · · Score: 2

    MP3.com infringed on UMG's copyrights when it copied CDs to onto Mp3.com's disk drives

    Nonsense. Ass/u/ming that mp3.com owned the CDs, they can copy them all they want, put them on hard disks, etc. without owing a dime. Copying the data to other media wasn't infringement. Sharing/redistributing ("beaming") the data, on the other hand, was infringement.


    ---
    --
    As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  19. A blessing in disguise... by ravi_n · · Score: 1

    This ruling, while unfortunate, might well be the best possible result at this stage. The damages are large enough so that mp3.com has every incentive to appeal and (hopefully) get as much as possible reversed. I still think the judge's initial ruling was as wrongheaded as possible: my.mp3.com was a service that could only make the record companies money (I can do more with my CDs, therefore I will pay more for them and buy more of them). The only complaint the record companies could possibly have was that they were not making enough money off of my.mp3.com, and that complaint should have been laughed out of court.

    At the same time, the damages are small enough that mp3.com can survive its current legal troubles no matter what happens (they have about $150 million socked away for legal costs and Universal, with the largest music collection, would get the bulk of the damages in any case). And, in my opinion, the survival of mp3.com is important because they are one of the more interesting music-on-the-Internet companies. Right now, most of the artists I listen to are on mp3.com and I want mp3.com (and those artists) to grow and prosper.

    1. Re:A blessing in disguise... by h4x0r-3l337 · · Score: 1

      Unfortunately, the $118 million figure is wrong, it's $250 million, and judging from mp3.com's stock price in after hours trading, their market cap fell to about $400 today. UMG effectively owns more than 60 percent of mp3.com now. And this is just the damages for one party. As the article says, mp3.com could end up paying 3.6 BILLION dollars

  20. Re:unlucky domain name by arivanov · · Score: 2

    Too late buddy. The MP3 owner has actually bought this one. Check.

    --
    Baker's Law: Misery no longer loves company. Nowadays it insists on it
    http://www.sigsegv.cx/
  21. Re:A good verdict by interiot · · Score: 2
    I guess that proves that if you go against the grain and say "Good verdict" in the subject, you can get marked up no matter what you say.

    Anyway, with mp3.com, copyright holders see the money for every person that listens to the music. Big diff' 'tween napster and mp3.com.
    --

  22. Towels by rw2 · · Score: 2

    They should send them $118M in Holiday in towels. Think they'll get it?

    1. Re:Towels by ConceptJunkie · · Score: 1

      Pennies (and nickels) aren't technically legal tender, but dimes are, and that would work well too!

      --
      You are in a maze of twisty little passages, all alike.
    2. Re:Towels by jallen02 · · Score: 2

      In dimes, that is One billion one hundred eighty million dimes.

      Now do a quick calculation how much room a stack of dimes takes up. 10 Dollars in dimes is 100 dimes right. So that leaves us with 11 million dime rolls.

      From there it dont take rocket science to realize that even if that was just 1 cubic inch (seems about right) we are talking 11 million CUBIC inches okay that is about 916 thousand cubic feet. Heh my apartment has about 1200 Square feet and the ceiling is about 8 feet high soo what 9600 Cubic feet, which means it would take roughly 100 of my apartments.. or.. my entire apartment compelx full of dimes right?

      Yes that would be truly amusing to pull up 10 semis full of dimes.

      Jeremy 11,800,000

    3. Re:Towels by ichimunki · · Score: 2

      What a load. Pennies and nickels are legal tender according to popular myth debunking site, snopes.com. I worked at a cafe that carted our electric bill in pennies in wheelbarrows to the 'lectric company HQ and dumped it on the floor to protest a nuclear power issue locally.

      --
      I do not have a signature
    4. Re:Towels by jallen02 · · Score: 2

      doh. thank, i should have caught that :-P

    5. Re:Towels by mrzer0 · · Score: 1

      They should send them $118M in manure.

      [mrzer0]

    6. Re:Towels by Another+MacHack · · Score: 1

      I'm not saying I think you're wrong necesarily, but could you back up that claim with a reference?

    7. Re:Towels by Scott+Wood · · Score: 1
      Bzzt. First, 11.8 million cubic inches is around 6800 cubic feet. You need to divide by twelve *cubed*. Second, the typical roll of dimes is $5, not $10, so the total (assuming a roll of dimes is a cubic inch) is around 13600 cubic feet. Still a lot, but nowhere near 916000. Pennies, on the other hand, would require ten times as many rolls, and each roll would be larger.

      --

    8. Re:Towels by mrzer0 · · Score: 1

      even better idea!!!!!!!!!!!! or maybe drill a whole in the black part of the case, or cut a line through the siding too. [mrzer0]

    9. Re:Towels by rew · · Score: 1

      What a load. Pennies and nickels are legal tender according to popular myth debunking site, snopes.com.

      Hmmm. Here in the Neterhlands, I thought that you can pay up to about hfl 10,- in dimes. So for instance if you get a speeding ticket and want to pay that, you'll not be allowed to pay that in dimes and nickels (as the amout is going to be well above hfl 10,-)

      Roger.

    10. Re:Towels by fossa · · Score: 1

      The point being of course, that if your goal is to dump a large volume of
      coins, you'd be better off using quarters than dimes. Apparently that was
      too subtle for the moderators.

    11. Re:Towels by Anonymous Coward · · Score: 3

      No, $118M in CD's purchased from retail stores, opened and with the words "Used CD" written on them in black magic marker.

    12. Re:Towels by ^_^x · · Score: 2

      C'mon! They should send them $118M in PENNIES! The cost of shipping would be worth it.

  23. Missed chance at Solomonesque Justice by Bigtoad · · Score: 2

    I don't like this ruling, but I think it's probably "right" in the eyes of the DMCA. On the other hand, I think the judge missed a perfect opportunity to apply some real Solomonesque justice here. There is clearly an enormous desire on the part of the consuming public to be able to download music via the web. The RIAA and friends have been unable or unwilling to meet this demand, and thus companies like MP3.com and Napster have appeared to fill the vacuum. I think the ideal resolution for this court case would have been to find MP3.com guilty as charged, but set aside the damages until the RIAA supplied a viable, approved method of distributing digital music via the web.

    1. Re:Missed chance at Solomonesque Justice by jms · · Score: 2

      While there is indeed a big demand for better distribution of music via the internet, this is entirely up to the record companies to decide. You can't legally force the way they want to distribute their music.

      Sure you can; it's called compulsory licensing, and it's why radio stations pay a fixed fee when they broadcast a song instead of individually negotiating with each record label.

      However, that would be something Congress would have to add to the copyright code. Perhaps they should.

    2. Re:Missed chance at Solomonesque Justice by pausz · · Score: 1
      I think the ideal resolution for this court case would have been to find MP3.com guilty as charged, but set aside the damages until the RIAA supplied a viable, approved method of distributing digital music via the
      While there is indeed a big demand for better distribution of music via the internet, this is entirely up to the record companies to decide. You can't legally force the way they want to distribute their music.
  24. Re:I still don't believe it by Xenu · · Score: 2
    I should have been more specific. There are two copyrights, the copyright on the composition and the copyright on the phonogram (record/tape/CD). The phonogram copyright holder does not get royalties, only the composition copyright holder.

    If I record a cover of Purple Haze, and it hits the top 40 on radio, the Hendrix family gets royalties and I get nothing.

  25. Well, at least the amount was smaller by Ikari+Gendou · · Score: 1

    Thogugh, I'd rather have seen mp3.com win..

    --

    Call on God, but row AWAY from the rocks!

    1. Re:Well, at least the amount was smaller by Ikari+Gendou · · Score: 1

      Well, I hate you too. Thanks and drive though :)

      --

      Call on God, but row AWAY from the rocks!

  26. What is the difference between MP3.com and Myplay by Space+Cow · · Score: 1

    I use Myplay to store my MP3s online and although I haven't tried it, they even have a share music option. What is the difference between Myplay and MP3.com? Is Myplay next?

    I do know that with MyPlay you have to actually upload files you already have. From what I have read here Mp3.com would let you listen to the music without uploading if you prove you own the CD? I guess that could be the key difference.

    Anyone have an understanding of this?

  27. Re:I still don't believe it by Anonymous Coward · · Score: 1

    The counterargument for the labels would be that if you can make extra money streaming bits to someone who already owns them, why shouldn't that money go to the record companies rather than to the people who came up with the service?

    er, maybe because the people who came up with the service provided the service, not the record companies that have for years refused to provide this service.

  28. Re:steganography by SomeoneGotMyNick · · Score: 1

    No, I prefer Steg and Ale. Followed by a salad.....

  29. Re:I still don't believe it by Xenu · · Score: 2

    Radio stations pay royalties to the composers via ASCAP and BMI. The performers and copyright holders do not get royalties.

  30. Artists get shafted is why we use Napster?! by Speare · · Score: 3

    The artists don't see enough of the profits from a CD. And that's why we've flocked to Napster and Gnutella and the like.

    While I agree with the overall tone of the poster, that line is so full of baloney.

    People "flocked" to Napster because they could finally used their dormroom ethernet or cablemodem for something other than Porn or MMORPGs. People "flocked" to Napster because they could listen to music and decide if they liked the music without buying the CD [some did buy, some didn't buy].

    You don't find ways of spending zero, if you're worried that one of the two selling parties is already getting shafted when you spend non-zero.

    --
    [ .sig file not found ]
    1. Re:Artists get shafted is why we use Napster?! by seanmeister · · Score: 1
      The artists don't see enough of the profits from a CD. And that's why we've flocked to Napster and Gnutella and the like.

      People "flocked" to Napster because they could finally used their dormroom ethernet or cablemodem for something other than Porn or MMORPGs. People "flocked" to Napster because they could listen to music and decide if they liked the music without buying the CD [some did buy, some didn't buy].

      I'll call baloney on both of ya. People "flocked" to Napster because they could get the music they ALREADY KNEW THEY LIKED without paying for it. And I seriously doubt that many said "This one's for you, [artist name here]! Stick it to the man!" as they downloaded their flavor-of-the-month. Artists profits, my ass. More like "WOOO HOOOOOO! FREE TUNEZ!!"

      If you're going to generalize, make sure you've got all the bases covered!


      Sean

  31. Re:You do not understand by Signal+11 · · Score: 1
    MP3.com, AFAIK, legally aquired those CDs. Once they do that, they can make a collection on any medium, it is called fair use.

    I have a collection here at home, it is on CDs. Many radio stations digitize their CDs by loading them onto harddrives as part of their daily program. It is cheaper. Their catalog is even online, in a form, as most of them fax daily playlists out to record stores, as well as posting them online.

    MP3.com digitized those files and then offered to share them with anyone who had a legally purchased copy. MP3.com was providing a service - namely, rather than encode the MP3's yourself and waste your CPU power, they would do it for you. As the CD you have is a bit for bit duplicate of the one MP3.com has, whether you encode it or they do, it is the same file.

    MP3.com provided a translation service, specifically allowed under fair use guidelines, the only difference is, they were a business and not an individual.

  32. I still don't believe it by thrash_ · · Score: 2

    I still think the BeamIT software was not a copyright infringement. How can it be an infringement if I can listen to only things that I own? They are just adding value to my CDs, for no cost to me. How does that infringe on a copyright? They are like my own radio station. Radio stations don't infringe on copyright. but I digress....

    1. Re:I still don't believe it by Yardley · · Score: 2

      Not the same thing. Copyright holders of Internet content have - in general - permitted the publishing of their words for viewers to download and read. I think Universal (and the judge) are wrong in this case. However, Universal did not permit my.mp3.com to publish their (Universal's) content to the web.

      --

      --

      --
      He lives in a world where those who do not run the client software of the omnipresent meme are unacceptable.
    2. Re:I still don't believe it by stx23 · · Score: 1
      Is this ruling going to make dance clubs illegal?
      I would doubt it, considering the majority of the music in such clubs is either unsigned or not signed to a major label, but to a smaller one with a modicum of common sense.
    3. Re:I still don't believe it by TheReverand · · Score: 2

      Clubs/bars pay royalties to ASCAP BMI and the like.

    4. Re:I still don't believe it by Rader · · Score: 2
      .

      --- As I understand it, it's legal for the individual to copy their own CD in this manner, and it is legal for them to pay for a service that acts to fulfill this function. In other words, I can make a profit from copying others work.---

      Well you understand it wrong.
      I also thought this would be a good idea. I wanted to start a franchise called Mp3-to-go in malls, where people would walk in with their CD collection, drop them off at my counter, and much like a one-hour photomart, could come back after shopping and pick up their originals, and their newly made MP3 CD-R's.

      I could sell sound cards, nice computer speakers, maybe some portable mp3 players, etc. Have brochures, booklets, etc to help educate people with the world of MP3's. (for those who need it, like mom).

      The fun part of the research was looking into components needed to RIP and convert MP3's quick enough to do about 100 CD's an hour. (Average person's collection).

      The very UN-fun part of the research was looking into the copyright laws and seeing if I had a leg to stand on.

      Unfortunately, it looked good to start with, but digital backups of copyrighted media don't seem to fall under... well... common sense and logic.
      The only thing that temporarily looked promising was if I turned the business into a library, since they are allowed special scenarios of digital archiving of copyrighted media... but that went no where fast, also.

      The sad truth is, even if someone could come up with a solid plan, the RIAA is going to go after you if you make any kind of revenue based on their copyright material. They spend what... $50 million a year on legal fees alone? They've got the money, and the time.

      The only thing I regret, is that I would have made a secret copy of every CD that a customer would have brought in. I imagine it would have added up quite quickly.

      Rader

    5. Re:I still don't believe it by Quarters · · Score: 1

      Because MP3.COM was rebroadcasting copyrighted material without the consent of the copyright holders. They were profiting (in ad banner sales, if nothing else) from someone else's work without paying the owners of said work.

      Radio stations rebroadcast, but they pay fees to the music labels for the rights to do so. MP3.com wasn't doing anything like that.

    6. Re:I still don't believe it by maraist · · Score: 2

      I still think the BeamIT software was not a copyright infringement. How can it be an infringement if I can listen to only things that I own?


      I HAVE IT! What we need to do is work with BeamIT and patent the idea of identifying serial numbers of owned copyrighted material, and making that material available through the web only to the owner.. We could abstract the concept to just about anything, including DVDs, OS backups, etc.

      Now here's the genious.. NEVER implement it officially. Sure, give the go-ahead to rogue intranets, since we're not monsters. The trick is that MS, AOL or even better yet, some other major member of RIAA or MPAA is going to someday get a CLUE and figure this out. Charge them out the wazoo.. We're talking Billons to the patent holder, since MPAA and friends will learn that they either do it this way, or lose everything in time. :)

      Better yet, screw you all, I'll do it myself. :P

      -Michael
      Making a better world..
      For me!
      --
      -Michael
    7. Re:I still don't believe it by sluke · · Score: 1

      I'm pretty sure that radio stations pay their fees to things like ASCAP and BMI which redistribute the monies to the artists based on some horrendously complex formula. I don't think the record companies see this money at all.

    8. Re:I still don't believe it by Anonymous Coward · · Score: 1

      Ummmm, no, radio stations DO NOT pay labels to play their music. Infact, at times, it has been quite the opposite, although that was found to be illegal. What usually happens is that the labels mail the radio stations promo copies to play on air. Now, promo copies are usually considered to still be owned by the label, only loaned to the station to be played. However, this is mainly just applicable to commercial standards. University radio stations usually just fly in the face of all this while trying to keep a semi low profile. The only thing about somebody getting payed for the playing of a record the artist. And this is how that works in radio: there are two main publishing groups (and I can't remember what their names are), and artists can pay membership fees to join. And the end of the year, they pay artists something like 1 few pennies, like maybe a nickle, for each time a song of theirs played in the US on a commercial radio station. This money is taken from the membership fees, and never really amounts to much.

    9. Re:I still don't believe it by Rader · · Score: 1
      Heheheh, well I shot myself in the foot only because I'm not doing the business idea at all anyways.

      However, I don't see how your argument works for the lawyers? First of all, it would have been only for my benefit or usage. And plus.. you can't shut down a 1-hour photo mat just because they have the POTENTIAL to make extra copies of all the pictures that come through that place.

      Bad analogy.. how about... Kinko's can't get shut down just because there's a posibility that their copiers could be used by the evil manager to make secret copies of everything.

      Rader

    10. Re:I still don't believe it by kermit+the+fraud · · Score: 1

      "The only thing I regret, is that I would have made a secret copy of every CD that a customer would have brought in. I imagine it would have added up quite quickly."

      Do you suppose that this is the type of argument the lawyers would use? You kinda shot a hole in yer foot with that last statement!

      And that, I suppose, is why beam-it went down the shitter.

    11. Re:I still don't believe it by jallen02 · · Score: 1

      I dont either take these scenario's into mind.

      I Upload much Mp3's to a server. Many people use a server for storing their Mp3's

      Illegal? No perfectly fine everyones known about private FTP since the creation of time :-P

      So no laws are being broken yet right?

      Well the administrator of this system writes a kewl program that goes through and has one master copy of all the EXACT duplicates and writes a program to delete all the extra data in the data space and symlinks to this master that everyones listening to were still legal becuase this system will still allow each user to retrieve his or her file

      Said administrator realizes that when a new album is released many of the data is updated and this indexing program is massively loading down the server when the next britney spears album comes out. so he just decides to buy one copy of this cd and anyone who cna prove they own a copy can get a "symlink" to the copy of it and listen to it.. have we crossed the line yet?

      This is exactly what mp3 does (the later case) when does it cross the line, where is the in between in the later and second to last cases I present?

      Jeremy

    12. Re:I still don't believe it by aenomie · · Score: 1

      you're right, but this is even more sinister than if they had violated the law in the broadcast of the mp3 streams. the fact that they were caught for making the original rips of the CDs to their servers as mp3s opens up the can of worms of the legality of -anybody- ripping CDs that they own to their hard drive as mp3s

    13. Re:I still don't believe it by bad-badtz-maru · · Score: 1

      mp3.com committed serious infringement of reproduction (recording) rights, which is the right to reproduce the recording of the music in any form. The law is very clear and there is plenty of case history, mp3.com was insane for reproducing those CDs and thinking they would not get sued. Rememeber, the violation did not occur when the song was streamed to the end user (that's a different violation, broadcast rights), the violation occurred when mp3.com copied the songs onto their system in the mp3 format. This wss not a surprise ruling that invoked some obscure law. This ruling should have been expected, mp3.com thought they were above the law because the magical internet was involved.

      Maru

    14. Re:I still don't believe it by Rumble · · Score: 1

      BeamIt is nothing like a radio station. You can only listen to songs that you own on CD.

      This is similar to giving a copy of a cd you own to a friend so he can play it when you ride in his car.

    15. Re:I still don't believe it by Tom_N · · Score: 1
      The judge could have found that this was Fair Use. The presumption where unauthorized commercial use is involved is that it is an infringement (exactly the opposite of the test the Supreme Court enumerated for unauthorized non-commercial use), but the unique characteristics of the service certainly could have lent themselves to a commercial Fair Use argument.

      The counterargument for the labels would be that if you can make extra money streaming bits to someone who already owns them, why shouldn't that money go to the record companies rather than to the people who came up with the service? (The settlements with the other Big Five labels call for MP3.com to pay about $20 million to each label, plus a fee each time a user registers a CD that they own, plus a fee each time a user streams a song from a CD they own.)

      As I recall, MP3.com's posts on their own Web site went on to the effect of how they were standing up for the consumer's Fair Use rights, so they might not have been exploring the (admittedly harder to sell) commercial Fair Use angle. However, their "we're doing this to protect your rights" talk seemed a bit at odds with their eagerness to settle with as many of the Big Five as possible when they lost the initial case. Why pick an unnecessary legal fight over principles if you're not prepared and willing to carry the fight through to appeals?

    16. Re:I still don't believe it by interiot · · Score: 2

      So does mp3.com. (see here).
      --

    17. Re:I still don't believe it by Anonymous Coward · · Score: 2

      You're missing the point here.

      The copyright infringement was because MP3.com copied many CDs themselves. Sure, you can listen to the CDs you own, and the backups of those CDs that you own, but you cannot listen to backups other people made.

      I don't agree with it, but it's the law, and the judge has the follow the laws.

    18. Re:I still don't believe it by mindstrm · · Score: 3

      Because.
      mp3.com, internally, bought and copied tons of music to theri servers, to be served over beam-it.

      Yes, it makes sense technically that only you can listen to music you own.. however....
      The fact that you have the right to copy and listen to your own album does not mean that mp3.com has the right to profit off copying others work.
      It's twisted.. but it's fairly straightforward as well.
      They DID copy the artists music, and they DID distribute it, albeit selectively, to other people, and they did NOT have the express permission from the copyright holders.

    19. Re:I still don't believe it by freedom_surfer · · Score: 1

      The music industry makes me sick! I hope they lose their asses with the internet revolution. I already have to pay some fucking tax when I buy CD burning equipment, even if I'm storing my own data on the disks I make. When the people who make the music start to distribute it themselves, we can kiss the RIAA goodbye. I want to see the artist, the person who is actually entertaining me, get my money, not some fat corporate slime ball who has his gruby little fingers in the cookie jar. My resentment grows with my ability to sidestep your sorry institution. Ride Free-Freedom Surfer p.s. I really think they are trying to put MP3.com out of business because they have the marketshare on free music distribution. God forbid that someone put out a song FOR FREE and get famous without some record exec getting their cut.

    20. Re:I still don't believe it by robjob · · Score: 1

      Actually, according to copyright law, radio stations do not have to pay, and DO NOT pay, record labels a dime to broadcast music. What they pay is fee to the copyright holder of the music and lyrics (which may be the record label, but often is not). It is a strange quirk of the law but it came about because at one time radio stations were much more powerful then the record industry and were able to get the law passed that way.

      Rob "Dammit I am too a lawyer" Jones

    21. Re:I still don't believe it by Znork · · Score: 1

      Well, you know, in a lot of countries that is _EXACTLY_ what the RIAA or their counterparts do. Media taxes etc are just that, taxes on recordable media that goes straight to the pockets of those lobbies.

    22. Re:I still don't believe it by TheCarp · · Score: 2

      Thats a good point. However, it is the old "Common Carrier" argument. Phone companies can't be held responsible if the phone system is used to plan or commit a crime. They carry all traffic equally and can't possibly monitor all calls.

      The same could be said of ISPs and usenet. Mp3.com however is NOT the same at all. They were distributing content on purpose. The question is whether what they did was a violation of copyright.

      This argument would be more applicable to napster.

      -Steve

      --
      "I opened my eyes, and everything went dark again"
    23. Re:I still don't believe it by Rader · · Score: 2
      .
      --- So - back to your example. If you had a clear cut court case that said 'it is OK for the CD owner or their designated agent to make a digital copy for the purposes of providing it to the CD owner' - would you reconsider the business? ---

      Yes. I would have then proceeded to the next step of figuring out what to charge people, do some type of research to figure out if the service would be popular, do some hardware testing to figure out ripping times, and then write software that would automate most of the process.

      You make a good example of the RIO case. The lawsuit against that was pretty ridiculous. Charges against being able to copy mp3's to others? Hardly! Looks like their virgin case was a good warmup, though. It seems that the MPAA and RIAA are constantly fighting the "General Use" clause. It will be a sad sad day if that ever gets changed. Just having a computer would no longer be allowed. (Their goal was to have certified & proprietary CDROM's, harddrives, etc, to keep people from storing media.) What needs to happen is the RIAA be sued for their reckless suing. Suing just for the sake of saving a dying business is wrong.

      -- You didn't actually find a definitive statement that what you wanted to do was either legal or illegal. (Right?) --

      Actually, reading the "Fair Use Act" was quite positive. The RIAA & MPAA must have fainted back when that was first finalized. The user/owner truly does have a lot of rights once the media is purchased.

      However, one had to read the more recent (and more cryptic) Digital Act (passed I believe in 1995) to find out the rules were different for digital copies of media. The RIAA & MPAA must have had a party with this one. It was definately written up to combat the fear of mass digital bootlegging. However, the new rules in place to combat that, are now being used illogically to supress the owners of media now.

      To answer your question, I did find statements that said no one is allowed to make digital backups for others. I even found statements that said even the owners of the media are not allowed to make digital copies of their own media. And of course, on that point, I found conflicting statements. So back and forth, back and forth on a person allowed to make digital copies of their media. However, no helpful information on *me* profitting from make copies of *their* media, just the opposite.

      That's why I went down the library angle. They atleast had a whole new set of laws allowing digital archiving. But then it got pretty complex since it mostly covered printed material only.

      I often think about winning the "Survivor" $1 mill, or the "Big Brother" 1/2 mill, and I would definately start up a string of these businesses with that cash, and knowingly go to court, just to get the legislation written.

      Can you imagine the publicity the lawsuite would give the stores? The RIAA would unwittingly popularize the idea... and the similar services would spring up!

      Rader

    24. Re:I still don't believe it by interiot · · Score: 2
      Actually, this is exactly the problem that Judge Rakoff had with MP3.com.

      Here's a few lines from the comments he made on May 4th (full text here)

      • Defendant argues, however, that such copying is protected by the affirmative defense of "fair use." See
      • 17 U.S.C. 107. In analyzing such a defense, the Copyright Act specifies four factors that must be considered...

        Regarding the first factor -- "the purpose and character of the use" -- ... involves inquiring into whether the new use essentially repeats the old or whether, instead, it "transforms" it by infusing it with new meaning, new understandings, or the like.

        • See, e.g.,
        • Campbell v. Acuff-Rose Music, Inc., 510 U.S. 569, 579 (1994); Castle Rock, 150 F.3d at 142; see also Pierre N. Leval, "Toward a Fair Use Standard," 103 Harv. L. Rev. 1105, 1111 (1990). Here, although defendant recites that My.MP3.com provides a transformative "space shift" by which subscribers can enjoy the sound recordings contained on their CDs without lugging around the physical discs themselves, this is simply another way of saying that the unauthorized copies are being retransmitted in another medium -- an insufficient basis for any legitimate claim of transformation. See, e.g., Infinity Broadcast Corp. v. Kirkwood, 150 F.3d 104, 108 (2d Cir. 1998) (rejecting the fair use defense by operator of a service that retransmitted copyrighted radio broadcasts over telephone lines); Los Angeles News Serv. v. Reuters Television Int'l Ltd.. 149 F.3d 987 (9th Cir. 1998) (rejecting the fair use defense where television news agencies copied copyrighted news footage and retransmitted it to news organizations), cert. denied, 525 U.S. 1141 (1999); see also American Geophysical Union v. Texaco Inc., 60 F.3d 913, 923 (2d Cir.), cert. dismissed, 516 U.S. 1005 (1995); Basic Books, Inc. v. Kinko's Graphics Corp., 758 F. Supp. 1522, 1530-31 (S.D.N.Y. 1991); see generally Leval, supra, at 1111 (repetition of copyrighted material that "merely repackages or republishes the original" is unlikely to be deemed a fair use).

        Regarding the fourth factor -- "the effect of the use upon the potential market for or value of the copyrighted work" -- defendant's activities on their face invade plaintiffs' statutory right to license their copyrighted sound recordings to others for reproduction. See 17 U.S.C. 106. ... [The] defendant argues, its activities can only enhance plaintiffs' sales, since subscribers cannot gain access to particular recordings made available by MP3.com unless they have already "purchased" (actually or purportedly), or agreed to purchase, their own CD copies of those recordings.

        Such arguments ... are unpersuasive. Any allegedly positive impact of defendant's activities on plaintiffs' prior market in no way frees defendant to usurp a further market that directly derives from reproduction of the plaintiffs' copyrighted works. See Infinity Broadcast, 150 F.3d at 111. This would be so even if the copyrightholder had not yet entered the new market in issue, for a copyrightholder's "exclusive" rights, derived from the Constitution and the Copyright Act, include the right, within broad limits, to curb the development of such a derivative market by refusing to license a copyrighted work or by doing so only on terms the copyright owner finds acceptable.

      That last paragraph doesn't seem right to me. The Infinity Broadcast case is very interesting though.
      --
    25. Re:I still don't believe it by zodiak · · Score: 1
      OK, let's take a similar example:

      Take a look at Xdrive - www.xdrive.com.

      Functionally this works about the same way that mp3.com does, I let Xdrive "know" that I have the rights to use specific mp3's by uploading them. I have to look at ads on their site to download/use them from another location. So under the mp3.com argument Xdive is profiting from the use of copyrighted material by allowing me to store my mp3's there.

      The ONLY difference I see between mp3.com's BeamIt and Xdrive is in technical efficiency - mp3.com doesn't force me to waste time and bandwidth uploading something they already in their storage. BeamIt is really just a fancy fileserver, and I still don't see how the RIAA had a leg to stand on in this case. Hell, they should have been HAPPY mp3.com created BeamIt - it ENCOURAGES people to buy more music by making the experience more efficient, and BeamIt is the ONLY "enhanced file sharing service" I know of that takes any reasonable steps to ensure I have the rights to use what I store there.

      Of course we all know the case against mp3.com ultimately isn't actually about BeamIt at all - it's about a cartel using the legal system as a weapon try and prevent music from being perceived as the art that it is instead of the consumable commodity they've turned it into.

    26. Re:I still don't believe it by Rader · · Score: 2
      I just saw this site called Ace-MP3. They actually sell CD-R's of MP3's on it. They have 12,500 albums to choose from. Hard to believe their legal disclaimer... That they pay ASCAP fees, and are legit!!!!

      Rader

    27. Re:I still don't believe it by Another+MacHack · · Score: 1
      From an information-theory point of view, it is clear that they where not violating the copyright. They didn't duplicate/spread the data to anyone who hadn't paid the owner of the data for it.

      No. They didn't duplicate the data to anyone who did not have access to a Beam-It account which had at one point been enabled by someone who happened, for whatever reason, to have access to a physical copy of the media. If you're going to argue practicalities then fine, but if you're talking information theory, then make sure you're being precise about what's actually going on.

    28. Re:I still don't believe it by WildBeast · · Score: 1

      >Silly boy, stop carrying on. We don't care how >tuFF you can feel hiding behind that keyboard >and screen

      Now, it seems to me like you're the one hiding behind the keyboard and screen Anonymous Coward.

    29. Re:I still don't believe it by malfunct · · Score: 1

      What pisses me off about the whole thing is that the record industry stood to lose NOTHING. In fact in giving people another way to listen to the music they buy they increase the value of the product to the consumer without anyone having to spend any great deal of money. They benifit, the record companies should benifit and consumers benifit alot. Why do our laws stop what I can only see as good? WE NEED TO CHANGE THIS!

      --

      "You can now flame me, I am full of love,"

    30. Re:I still don't believe it by Another+MacHack · · Score: 1
      Well lets be honest now... Earthlink had the permission of the copyright holders to do that. They were acting as a publisher. Or maybe more as a distributor?

      If Earthlink has an nntp server, or is used by people to access an nntp server, then there is all SORTS of distribution of materials without the authorization of the copyright holder. (most of alt.binaries.*, for example)

    31. Re:I still don't believe it by jafac · · Score: 1

      Hell, talk about all the unauthorized copying, from the computer, to the computer's memory, across the network, to the server's memory, to the server's RAID cache, to the server's disk, then when the song is served, to the server's RAID cache, server memory, network, firewall's memory, network again, routers, ISP's firewall, ISP's internal networ, ISP's server's memory, modem bank, phone lines, repeaters, end user's machine's memory, maybe copied to disk in VM paging, etc. (thank goodness we're not going to Usenet, think of all the unauthorized copies stored all over the place!).

      if it ain't broke, then fix it 'till it is!

      --

      These are my friends, See how they glisten. See this one shine, how he smiles in the light.
    32. Re:I still don't believe it by bad-badtz-maru · · Score: 1

      =====
      servers as mp3s opens up the can of worms of the legality of -anybody- ripping CDs that they own to their hard drive as mp3s
      ======

      I am pretty certain that prior law suggests that copies made for your own private use would be covered under fair use. mp3.com made their copies for public and commercial use, eliminating any chance of it being perceived as fair use.

      Maru

    33. Re:I still don't believe it by MindStalker · · Score: 4

      While I agree with you that it shouldn't be copywrite infringment, let me explain to you why it is. While it was of no cost to you, and you paid MP3 no money, and you could only use your own cd's. From the MP3.com side, they were making a profit (from advertising) from other peoples music that they wern't given any rights to. Kinda for the same reason I can't hold a party in which is sponsors where I make money and play a bunch of music foreveryone, even if I check to see if they bought the cd's themselves. Anyways, I digress, btw the reason its different from radio is that radio stations pay cd labels money for the rights to play the records. Its not a huge sum (nowhere close to $118M) but still pretty large.

    34. Re:I still don't believe it by jafac · · Score: 2

      The thing I don't understand is, why the hell the RIAA didn't go after the phone companies who provide the phone lines that the pirates used to dial-in with. The phone company has a buttload of money for them to sponge off of. And just as much legitimate culpability as MP3.com. The RIAA could easily show how much profit the phone company attributes solely to internet access, and assign an arbitrary percentage for the amount of that traffic that was dedicated to illegal MP3 trading (hey, that's redundant, since all MP3 trading is illegal, right? let's just say MP3 trading), then siphon that percentage right off the phone companies - hey, some enterprising scumbag lobbyist for the RIAA might just have legislation drawn up and voted in that would impose a tax on phone lines, to pay the RIAA companies for the potential piracy useage. How would that hurt the phone companies anyway? They could just pass the costs on to consumers. Then the RIAA could sue itself for it's cable operators, and calculate the percentage of cable bandwidth that's going towards MP3 servers on Hotline, and charge every cable customer an extra fee for the potential piracy.

      Hell, the RIAA could just tax everybody who has ears and a brain, so we could pay a fee for the potential copyright infringement that goes on every time we overhear a song played on someone else's stereo!

      if it ain't broke, then fix it 'till it is!

      --

      These are my friends, See how they glisten. See this one shine, how he smiles in the light.
    35. Re:I still don't believe it by Quarters · · Score: 1

      Keeping one copy of a song on their servers, but serving it to >1 person at a time is closer to broadcasting than giving your friend a pirated tape.

    36. Re:I still don't believe it by redhog · · Score: 2

      From an information-theory point of view, it is clear that they where not violating the copyright. They didn't duplicate/spread the data to anyone who hadn't paid the owner of the data for it. But, from a laywer-point-of-view, they clearly copied data from CDs they bought, over the network to owners of other CDs (_copies_ of the same CD, but that doesn't matter)... So they'l burn, 'cause the music-industry is _music_ industry, not information-industry, and the laywers are laywers, not computer-scientists. We just have to face it: Today's worl'd is not ready for the information age. We have 99%++ of the population, who have absolutely no grasp about imnformation theory... Today's world is ready for Corporate Republic.

      --
      --The knowledge that you are an idiot, is what distinguishes you from one.
    37. Re:I still don't believe it by TJ6581 · · Score: 1

      They are like my own radio station
      That was exactly the problem, a radio station has to ask to play songs, they don't just go out and by a CD and play it on the air. The original ruling against them stated that they were in effect a pirate radio station. That was the source of the copyright infringement not the the people downloading the songs.
      "Freedom of speech has always been the abstract red-headed stepchild of the Constitution"

      --
      "Freedom of speech has always been the abstract red-headed stepchild of the Constitution"
      -Suck
    38. Re:I still don't believe it by Nezumi-chan · · Score: 1
      Sure, you can listen to the CDs you own, and the backups of those CDs that you own, but you cannot listen to backups other people made.

      Shouldn't that be that you cannot take possession of backups other people made? You could likely listen legally as much as you like, but of course IANAL. I just work for one.

    39. Re:I still don't believe it by Therin · · Score: 1

      "Radio stations don't infringe on copyright". True, radio stations pay do however significant amounts of royalties (don't know the amount myself, I was a techie and not on the financial side) through BMI and ASCAP every year. When I was in radio, we had to record every piece of music played for a week - including backgrounds for commercials, segments we looped for news intros, etc. These were then used to calculate our royalty payments for the year.

      --
      John 17:20
    40. Re:I still don't believe it by mattdm · · Score: 2
      It's different from that. It's like you have a music-listening room where people can come and listen to CDs. You charge $1 to get in. People can bring their own CDs with them, or they can bring positive proof that they own a given CD; in that case (and only then), you'll let them listen in on the same CD brought by someone else.

      --

    41. Re:I still don't believe it by FreezerJam · · Score: 2

      Try a slight tweak and see what happens. As I understand it, I could set up a 'backup shop' where I sell blank CDs and allow an individual to bring in a CD and I make one copy. I then return both the original and the backup to them. AND - I charge them for the service.

      As I understand it, it's legal for the individual to copy their own CD in this manner, and it is legal for them to pay for a service that acts to fulfill this function. In other words, I can make a profit from copying others work.

      Now - if MP3.com actually had the users rip, encode, and send the files to mymp3, then this would be exactly the same situation as above.

      This is the reason that MP3.com truly believed that they were not violating copyright. They simply took advantage of an industry-standard compression algorithm that 'compresses' a CD down to its identity. From the point of view of the end users, there is simply a performance difference between the 'perfect legal' way and the 'violates copyright' way of getting the CDs into MP3.com.

    42. Re:I still don't believe it by interiot · · Score: 2
      does not mean that mp3.com has the right to profit off copying others work

      *gasp*, believe it or not, Earthlink took in $450 million for the first half of 2000 by passing copyrighted data from the rightful copyright holders to you! They copied it over their networks and they profited from giving you access to someone else's works! I can't begin to imagine the amount of damage this has done in terms of scaring off future copyright holders.
      --

    43. Re:I still don't believe it by FreezerJam · · Score: 1

      Congratulations for giving this way more thought than most people.

      I did especially note two points from your post:

      • You didn't actually find a definitive statement that what you wanted to do was either legal or illegal. (Right?)
      • You are reasonably certain you will attract the attention of the RIAA if you 'make any kind of revenue' - you don't actually have to do anything illegal (see the Rio court case).

      This situation is tailor-made for the RIAA. Because there are no explicit statements covering your situation, you probably have to fall back on the de facto rules - who seems likely to sue you, essentially. You know you can't afford to challenge the RIAA, so you make a risk assessment; end result, you do nothing.

      Legalities aside (a big thing to consider, I know), as long as the RIAA can outfund potential competitors in the legal arena, they will stay away from the marketplace in exactly the same way that you did.

      The caution for the RIAA should be that they appear to be putting all their eggs in the legal basket. All it takes is one clear-cut case to lay down exactly what they rules really are (something we don't have at the moment), and competitors will know exactly where they can compete without worrying about legal concerns.

      So - back to your example. If you had a clear cut court case that said 'it is OK for the CD owner or their designated agent to make a digital copy for the purposes of providing it to the CD owner' - would you reconsider the business?

    44. Re:I still don't believe it by TheReverand · · Score: 2
      You are referring to ASCAP and BMI, although there are others.

      Radio stations do indeed pay them, as do bars and dance clubs. They pay licensing fees on a yearly basis. You have to report what you play to them monthly or bimonthly.

    45. Re:I still don't believe it by TheCarp · · Score: 2

      Well lets be honest now... Earthlink had the permission of the copyright holders to do that. They were acting as a publisher. Or maybe more as a distributor? The Internet blurrs the line between them.

      However, I agree that this is silly. This is yet another example of copyright being perverted from its original intent, into a weapon that large corperations can use to beat people about the head.

      This service was, very simply, a way for a person to "store" their CD collection in a cental location, so they could listen to it from anywehre. The fact that it was done by making copies of CDs centrally and having people "prove" that they have an exact copy to facillitate this, is a mere technical detail of the system.

      At no point did anyone have access to anything that they normally would not have had access too. They were not giving people copies of anything that they didn't already have copies of.

      The fact that they were accessing a copy made by MP3.com on an mp3.com server instead of their own copy, should be irrelevant. Its, truely, a minor technical detail. It is, in effect, no different from a person burning CD copies of their collection to listen to at work (or ripping MP3s for work).

      --Steve

      --
      "I opened my eyes, and everything went dark again"
    46. Re:I still don't believe it by VivianC · · Score: 1

      Is this ruling going to make dance clubs illegal? That is certainly public performance of music.

      And I know I don't already own the CDs because I still can't figure out what half of it is!


      Viv
      -----------

      --
      Viv

      Gmail invites for ip
  33. first, we'll take $150m, then we'll take some more by kubla2000 · · Score: 1
    Surely Universal must be planning to sue all those who have aided and abetted those heinous analogue pirates out there.

    By their own logic, they should be suing every maker of audio tape/cassette recording equipment, every maker of audio tapes/cassettes and every broadcaster.

    MP3.com was no more encouraging pirating than the radio DJ who advertises 'what's coming next' or an advertisement free hour.

  34. unlucky domain name by Anonymous Coward · · Score: 2

    Note to self: do not buy MP4 domain name. Wouldn't be able to cover court costs.

    1. Re:unlucky domain name by generic-man · · Score: 1

      Too late: mp4.com, mp5.com, mp6.com, all the way up to mp25.com have been taken already. Sorry.

      --
      For more information, click here.
  35. Re:Profiting from other's works by tswinzig · · Score: 1

    I bought a portable CD player the other day. I wouldn't have bought it if it weren't for the CD's that RIAA produces. The manufacturer profited from the RIAA's music by allowing me to listen to the RIAA's music in more places. The manufacturer didn't have an agreement with the RIAA to profit from their works. Yet they did it anyway.

    Your analogy is flawed for two reasons.

    1. Yes, the device manufacturers are in bed with the RIAA and their ilk. Witness the infamous tax on all digital recording devices paid out by the US Gov to organizations such as RIAA.

    2. The manufacturer did not load your personal music device with all of the music you already own. If they had, they'd be in just as much legal trouble as MP3.com.

    -thomas

    P.S. I can see both sides of this issue. I think MP3.com is the best attempt so far at bridging the gap...

    "Extraordinary claims require extraordinary evidence."

    --

    "And like that ... he's gone."
  36. No one understands by Platinum+Dragon · · Score: 4

    I have a collection here at home, it is on CDs. Many radio stations digitize their CDs by loading them onto harddrives as part of their daily program. It is cheaper.

    At this point, I guaran-damn-tee someone will bring up the "radio stations pay royalties" point.

    Why do they pay royalties? Because the listeners might not have purchased a copy of the music being broadcast, and the station is running advertisements to make money. That first is especially important here. With radio, the listener more often than not does not have a legally-acquired copy of the songs being played, therefore the station has to pay for public broadcast of that music to people who haven't paid for the music.

    Now, we come to my.mp3.com. I didn't use it, so I don't know if the client and any web pages involved in selecting songs had ads, or if the service itself cost anything - if so, mp3.com loses on that point for profiting from to copyrighted works without providing proper royalties to the copyright holders.. I'll come back to this point with regard to the punishment.

    my.mp3.com and each listener legally purchased the CDs. Each listener had to prove they had the CDs before they could stream the songs from mp3.com. Therefore, both streamer and listener have legal copies, unlike traditional radio. This is where the radio argument falls down; my.mp3.com is not like radio. I can do the same thing by ripping my own CDs, setting up a shoutcast/icecast streamer, but requiring a password to activate the streaming so that not just any joe schmoe can abuse my collection. It's not public broadcast, and as long as no advertising without copyright holder approval is inserted, it can't be subject to broadcast royalties; you're all listening to the same song, it's a private directcast unlike radio that no one else can tap into, and all parties involved have paid for their copies and associated fair use rights. The only potential extra copy being made is the bits being sent from my.mp3.com to the listener, and those fall right back into the ether as soon as the player is done with them; they are not being stored.

    Of course, the bigger reason the record cartel is going after MP3.com for this is so that they don't have any outside competition in the streaming arena; just watch as they all throw up their own Beam-it style services Real Soon Now. And you can bet they'll cost money to use.

    mp3.com should be forced to compensate companies for any ad revenue/subscription fees they made in relation to my.mp3.com. On this point, I don't think "copyright infringment" is the proper term here. Unfortunately, I'm not sure there's a proper legal term for "unlawful profit from use of a copyrighted work". Copyright infringment sounds too much like selling extra copies, while here everyone had a copy, paid for them, and the only extra "copy" was a stream of bits that disappeared after passing through the player software.

    Cyberspace is not meatspace, and should not be defined or limited by meatspace rules, because there are about 6 billion things you can do in cyberspace that are impractical or impossible in meatspace. Millions of copies of a chunk of data can be made and wiped out in a matter of seconds; this, I think, is the reality that nearly everyone - record execs, real-worlders, and geeks - still haven't come to fully realize. It works by different rules by default; therefore, it's absurd to force ethereal, ever-changing and infinitely malleable cyberspace to conform completely to meatspace rules. The implementation shouldn't be the problem here, only proper compensation. I don't think compensation here = $25k/CD, not by a long shot. A better solution would be to determine the ad revenue from my.mp3.com, double that, there's your punishment to be divided between all plaintiffs. Anything more is improper.

    my.mp3.com was a great idea. If there hadn't been an ad near any part of the service, the record companies wouldn't have a legal leg to stand on. Never mind that a lot of legal wisdom and commonly-used analogy collapses when applied to bits, bytes and data structures that can be created and destroyed at will; law and the human habit of making bad comparisons will have the hardest time adjusting to the new world. As it stands, the cartel (actually, the artists, but that's another hill of beans) has a right to be properly compensated for money made off their holdings, but not for any sort of "piracy"; all copies (with the possible exception of one) were meatspace-defined legal.

    What a mess. I guess in closing, I think lot of IP law will have to be rethought and retooled to ensure that what can be done in cyberspace isn't stifled by meatspace rules that make no sense in the ethereal. As long as the holders have been paid for copies and fair use rights, and are being compensated for any ad/subscription revenue, there shouldn't be a problem.

    --

    Someday, you're going to die. Get over it.
    1. Re:No one understands by interiot · · Score: 2
      And if the RIAA were to get wind of it, you'd have lawyers up your ass so fast you wouldn't have time to gasp. As long as it's digital transmission, the content providers want to squash it dead or demand that they get to "control the vertical and the horizontal".

      They can growl and flex their muscles all they want, but would they be legally allowed to squash it?
      --

    2. Re:No one understands by interiot · · Score: 2
      mp3.com should be forced to compensate companies for any ad revenue/subscription fees they made in relation to my.mp3.com.

      Used CD stores profit from songs without having to pay the copyright owners a single cent. Profiting without reimbursement is fine in some cases, I think it should okay in this one too.

      My.mp3.com is adding value to your CD... it tries to allow you to play it more conveniently. As such, it's adding value, and so it should be able to make money from that if people find it valuable.
      --

    3. Re:No one understands by dbullock · · Score: 1

      No, YOU don't understand. This is one of the most clueless things I've ever seen written and it shows a real failure to grasp and accept reality, or the issues at hand.

      Cyberspace is not meatspace, and should not be defined or limited by meatspace rules, because there are about 6 billion things you can do in cyberspace that are impractical or impossible in meatspace. Millions of copies of a chunk of data can be made and wiped out in a matter of seconds; this, I think, is the reality that nearly everyone - record execs, real-worlders, and geeks - still haven't come to fully realize. It works by different rules by default; therefore, it's absurd to force ethereal, ever-changing and infinitely malleable cyberspace to conform completely to meatspace rules.

      There is no cyberspace. Acts are committed by "meatspace" people using "meatspace" equipment via "meatspace" ISPs. These "meatspace" people are connecting to servers in "meatspace". These people and servers are located in "meatspace" locations under the jurisdiction of meatspace "laws".

      There is no cyberspace.

      --
      http://www.bullnet.com
    4. Re:No one understands by Platinum+Dragon · · Score: 2

      Used CD stores profit from songs without having to pay the copyright owners a single cent. Profiting without reimbursement is fine in some cases, I think it should okay in this one too.

      Good point, although the difference with used CD stores is that an actual physical copy is being transferred, along with whatever "rights" go along with that copy. Here, I think mp3.com was making money off advertising linked to the Beam-It service. Different animal.

      Interesting point another poster brought up; mp3.com isn't paying compensatory damages. There aren't any, to my surprise. No, these are punitive damages - a deterrent to anyone who would dare let two entities with legally purchased copies of the same CD stream that CD to one another. It seems the judge has rubber-stamped a cartel oligopoly on private streaming services. Thanks, judge. Now the cartel will let me pay yet again to listen to the same songs I already purchased on CD.

      *sigh*

      --

      Someday, you're going to die. Get over it.
    5. Re:No one understands by Platinum+Dragon · · Score: 2

      What I mean is that things can be done with hard drives, CPUs, network cards, modems, and the whole kit and kaboodle that are impossible outside of those devices. Applying old concepts of copyright and IP law to an environment where devices can create and destroy millions of copies in a matter of seconds, an user-programmable environment where the user has ultimate dominion over the data, is thoughtless, disingenious, and just plain hopeless. It won't work, because the users won't let it work. About the only way the RIAA, MPAA, BSA, IDSA and the like can "win" (regain total control over content) is to prevent 99% of the population from programming or even just tinkering with their computers, and employing the remaining 1%.

      Even though all of the devices are real and physical, software is sufficiently different enough from anything that has come before that different rules immediately apply to it. Copies are only tangible in terms of magnetic domains and energy states; they can be recreated, destroyed and recreated again on the same piece of media with no damage to the matter and no loss in quality - or resources. This only happens with devices that use digital storage and information transfer; this does not happen anywhere else on earth. The rules are different, see?

      Of course, it's not really an "alternate dimension"; I'm not a moron. However, the capabilities that computers, the Web, your databases, my copy of Nethack and everything else digital represent are so far removed from anything else in human experience outside of imagination that it is perhaps best to see "cyberspace" - any form of data stored on computers, processed and manipulated in a digital form, transferred to other devices, and existing only as magnetic domains, energy states and pits representing 1s and 0s - as an alternate environment for the sake of argument, and perhaps law. Not fact, though; I just covered what "cyberspace" really is, but can you think of a better way to handle the capabilities and possibilities presented by the digital? Because if you try to discuss things related to software based on hard facts, things get way too complicated, confusing, and ambiguous for feeble human brains and law to handle.

      Think of it this way; by definition, any part of Windows 9x/NT/2000 stored in RAM is an extra copy, and might be infringment.

      I quoth a poster in a later thread, the DMCA comments thread:

      From page 9 of the submission from the American Film Marketing Association, Association of American Publishers, Business Software Alliance, Interactive Digital Software Association, Motion Picture Association of America, National Music Publishers' Association, and Recording Industry Association of America:

      ...it has long been clear under U.S. law that the placement of copyrighted material into computer memory (ie RAM) is a reproduction of that material.

      So if you have a legal copy on your hard drive, the action of putting it into RAM, in order to run it, or otherwise access it, falls under copyright law.


      See what I mean? At some point, going strictly by legalities and hard facts gets really, really stupid. Thus, different thinking is a good idea in those circumstances.

      eh, i've said my piece for now.

      --

      Someday, you're going to die. Get over it.
    6. Re:No one understands by Fesh · · Score: 1
      I can do the same thing by ripping my own CDs, setting up a shoutcast/icecast streamer, but requiring a password to activate the streaming so that not just any joe schmoe can abuse my collection.

      And if the RIAA were to get wind of it, you'd have lawyers up your ass so fast you wouldn't have time to gasp. As long as it's digital transmission, the content providers want to squash it dead or demand that they get to "control the vertical and the horizontal".

      Why do they consider digital versions to have such magical properties? Yeah, yeah, you can go on about how a digital copy doesn't degrade. But answer me this... I haven't had a single floppy survive with its data totally intact for over a year. My CD's have pinholes burned through the media, and a head crash == game over for a hard drive. Digital storage is not forever. Even the tape archives from just decades ago are disintegrating as we speak. I don't see the distinction.

      *sigh* I just realized I was comparing apples to oranges there. You may slap me now...


      --Fesh
      "Citizens have rights. Consumers only have wallets." - gilroy

      --
      --Fesh
      Kill -9 'em all, let root@localhost sort 'em out.
    7. Re:No one understands by Fesh · · Score: 1
      Doesn't matter if they're legally allowed or not. If you couldn't pay your legal bills to defend against the suit (or the award when the default judgement goes through), they win.


      --Fesh
      "Citizens have rights. Consumers only have wallets." - gilroy

      --
      --Fesh
      Kill -9 'em all, let root@localhost sort 'em out.
    8. Re:No one understands by synsear · · Score: 1

      I'd just like to point out that 'cyberspace' and 'meatspace' are not seperated.

      The web is a part of the _real_ world, not an 'alternate dimension'.

      It should, therefore, be legislated the same, equally, as 'meatspace',

  37. Re:this sucks by NaughtyEddie · · Score: 1

    Yes it did. That's what this whole case is about.

    --

    --
    It's a .88 magnum -- it goes through schools.
    -- Danny Vermin
  38. Judge rules Xerox to pay $118e9 to book publishers by Anonymous Coward · · Score: 2
    PALO ALTO, CA 2:33pm - A 9th circuit judge has ruled that Xerox's photocopy machine is responsible for the last 40 years of piracy of literary works and has ordered Xeros to pay $118 billion in damages to BPAA (Book Publishers Association of America). The judge has further ordered all photocopy machines destroyed as well as the destruction of all information on their construction.

    The case on the RIAA/MPAA vs. God for creating organisms with ears, eyes, and memory, is still pending.

  39. Re:Sheesh by Yardley · · Score: 1

    You really shouldn't be punished for your beliefs.

    --

    --

    --
    He lives in a world where those who do not run the client software of the omnipresent meme are unacceptable.
  40. Re:Damages by Signal+11 · · Score: 1

    Yes, that is what I meant. When I tried to correct it, slashdot locked me out and I couldn't post for several minutes. I gave up posting the correction and instead wrote a feature on the FBI's violence report, available here and submitted the analysis to slashdot for rejection. :/

  41. Lesser of evils by Trinition · · Score: 1
    The sad part about the whole suit is that MP3.com was the closest thing to legal digital music distribution yet. The labels could've bought MP3.com, swallowed their technoology, chew it up a little, and spit it back out in a way that would ensure their profits for decades to come.

    Instead, they keep squashing the good ideas leaving room for a mixture of good and bad ideas to to come. Face it, nature abhors a vaccum, and without MP3.com filling the vaccuum with a controlled way of digitizing music for the masses, Napster clones are all-the-more-likely to increase in numbers and proliferation.

    The record labels should've just picked the lesser of the evils and taken control of it. Instead, they are attacking everything and offering nothing themselves.

  42. Re:Yes by interiot · · Score: 2
    Where'd $118M come from anyway? When I read it, the article's title says:
    • Judge: MP3.com Violated Music Copyrights, Owes Universal $250M Wednesday

    --
  43. I don't care about my.mp3.com by szyzyg · · Score: 2

    Any lawyer could have told them that what they were up to was illegal before they did the R&D - betting your company's existance on beating a legal challenge is not good business practice.

    mp3.com knew the risks...

    Of course they did get all the free PR - something that legal systems like myplay.com seem to be3 missing out on. So much so that I keep seeing posts on /. about how innovative my.mp3.com was despite all their technology having been depolyed months before my.mp3.com by myplay.com.

    give credit where credit is due....

    1. Re:I don't care about my.mp3.com by Rader · · Score: 2
      Well, don't forget that MP3.com also gained their main objective: Permission to use the music in this way. I don't know if all their lawsuits ended up this way, but one of the first lawsuits ended with a large cash settlement AND permission to use all CD's from that Big Label. (sony, i think).

      Rader

  44. Re:whats you going to do about it. by British · · Score: 2

    Fine, is there a cddb.com like database we can check to see if the CD we're about to buy is represented by UMG?

  45. This is exactly the core of the .mp3 issue by brokeninside · · Score: 1

    What so many people miss in all the squablling over mp3.com and Napster (the corporation) fail to realize is that the whole controversy would have been squelched if the people doing the broadcasting had paid dues to an association like ASCAP for the permission to broadcast.

    For example, if Napster had notified each installation of Napster (the software) as a server that people serving up files were liable for securing permission for broadcast of the music (and if Napster servers had secured permission) then there would be no basis for any lawsuit.

    The problem, IMHO, is not that people want free tunes (just turn on the radio or fire up Real player and point it at your favorite online radio station). The problem is that these organizations like mp3.com and Napster think that they can get out of the costs of doing business.

    Under present law, broadcasters need to secure the right to broadcast copywrited media and that is all there is to the story.

  46. used CD protest by British · · Score: 2

    Would it be viable if we only went to Cheapo Records from now on and only bought USED CDs? I mean, money's changed hands already, and I don't see how they'd profit off a sale of a used CD for less.

    1. Re:used CD protest by GuNgA-DiN · · Score: 1

      Even better, check out www.half.com. During the month of August I didn't buy a *single* CD that gave money to an RIAA member. But, I still bought 5 CDs that month. 3 of them on half.com and 2 at my local CD-Whorehouse. I saved a ton of cash, got the bands I wanted, and still didn't give the RIAA fuckers a cent! I plan on continuing the boycott forever. They are going to have to pay me to buy their music from them. Muhahahahahahhahaha!!

  47. Guilty? Yes. Damanges? No! by weston · · Score: 3

    Mp3.com may very well be guilty under the law of copyright infringement. They do indeed seem to have distributed copyrighted works they didn't secure a license for.

    However, compensatory damages could arguably be a sum total of.... $0. Why? If you're looking at lost revenues, then EVERYONE they distributed to ALREADY had the CD in hand. Everyone distributed to either already had purchased, or had the power to create unauthorized copies without the help of mp3.com. There is no such thing as the sale of a recording lost to mp3.com's service. So why any judge should award compensatory damages is beyond me. Absolute worst case scenario should be that mp3.com might have to give up the some large portion of an estimate of the amount of revenue they received from the BeamIt service.

    Now, punitive damages might be different story....

    1. Re:Guilty? Yes. Damanges? No! by _Lint_ · · Score: 1

      Right, but then You were the one that infringed on the copyright, not mp3.com.

    2. Re:Guilty? Yes. Damanges? No! by interiot · · Score: 2
      Zactly.

      If a record store (in cozy with RIAA) sells CDs, and you pick the locks at night, borrow a CD, copy it, and bring it back without them knowing, who's fault is that?

      Maybe slightly their fault for not locking things up well enough, but mostly yours for breaking in against their will.
      --

  48. I think you're wrong by Ender+Ryan · · Score: 1

    Doesn't it have to be proven that damage has been done? Obviously, no damage has been done, as Mp3.com has ADDED value to CDs. RIAA member companies should sell more CDs because of this.

    IANAL, so I'm not sure that that is right.

    --
    Sticking feathers up your butt does not make you a chicken - Tyler Durden
    1. Re:I think you're wrong by Rader · · Score: 1
      I agree with the LOGIC of what you're saying.

      But a company does not HAVE to abide by another company "adding" value to their product. Plus, what if the Big-5 have a similar distribution model being built... and voila, MP3.com came up with this illegal distribution, directly cutting into the money that could have been made by the Big-5.

      So maybe that's MP3.com's point... is that if a person owns a CD, they SHOULD be able to listen to it anywhere. But then again... why should the Big-5 be FORCED to do anything?

      Face it, the Big-5 own copyrighted material. Lots of it. Not only that, but THEY own it, not even the artists. And if they don't want anyone else profitting from it, they don't have to let anyone else profit from it.

      As I see it, there's only 2 solutions. Either have the customers revolt and buy only good music (non-Brittany Spears crap, well you get the point) or the artists themselves quit signing with the Big-5.

      Rader

  49. Well, that's it... by StarFace · · Score: 1
    I'm not usually one to whine and scream boycott at the first sign of bad behavior by a corporation. I think this is probably one of the worst things I've seen so far in this string of events. You all can do whatever you want. That is your right. For me, I'm done. I'm not purchasing any packaged music from any of the big three music companies. I don't care how much I like the band.

    I know that this does squat. My 150 dollars a year is hardly going to make a dent. That really isn't my point. Personally, I can not with a good conscience endorse their behavior with my dollars any longer.

    I'm out

    --
    V
    1. Re:Well, that's it... by jeillah · · Score: 1

      > Well count me in, now we're up to $300...

  50. Heh, and just in time :) by Chris+Johnson · · Score: 4
    mp3.com paid me :) I got a check which I _ran_ to deposit, for a bit over $250. (Supposed to be over $400 but that was before taxes... I'm not even going to ask, lucky to have anything.)

    I never did agree to their new artist agreement- slashdotter mp3.com artists, don't agree to it, it gives mp3.com perpetual rights to your stuff and is unilaterally changeable by mp3.com on five days notice and _you_ have to keep hunting for notices, they won't actually _inform_ you of a change. Anyhow _I_ didn't agree to this and I'm now busily taking over for what they used to do for me, with a twist.

    I'll be getting rid of the mp3.com site ASAP- go ahead and download anything if you want but I don't expect to get a cent from this or from any current CD sales. The other local bands ought to be happy 'cos I tend to monopolise the top 20 charts in my town *g* sometimes my stuff has _been_ the top 20. Now they can feel like rockstars- paying a damned high price for it with that dangerous artist agreement. Again, mp3.com is no longer safe to host your music at- they're not as bad as farmclub but they could be just as bad in five days flat with no direct notice to you.

    I've ordered a CD burner- and I'm making an order for 100 Mitsui gold/gold _printed_ CD-Rs. We're talking over three dollar media here- $3.29 _per_ _blank_. I'm setting up a situation where I have a 'house label' with _extremely_ posh impressive media and packaging- which has a lighter area, to silkscreen or simply _write_ in specific information about the CD. The place I'm getting the CDs from is synthemedia.com, let me get my orders in first now ;) there are some lovely details about this arrangement, for instance the full-bleed printed-white-surface CDs not only look terrific but Mitsui gold/gold is supposed to have better archival status than even commercial aluminum CDs, lasting for over 100 simulated years in destructive climate testing.

    The neatest part is- instant super small pressing runs with flashy packaging. I'm going to start fishing for recording studio business at my usual $75 an hour- and each hour gets a free fancy CD of the final project. (haven't worked out the details on stuff like 'burn time' for large numbers of CDs- should talk to my bank about financing a duplicator if it becomes a serious constraint). For advertisement I can have a bunch of the CDs around town, with an audio demo recorded on it.

    The overall idea is to assault the major label industry machine on a basis of quality- hit them with the appearance of indie CDs coming out, that are not only higher quality audio, but are flashier CD prints (a lot of major label CD prints seem to be one or two color prints! Cheap bastards...) and a range of music availability that (due to extremely low production runs) can afford to be absurdly eclectic and specialised- and the media is rated to last much longer under normal conditions- AND you're allowed to copy it and make mp3s of it and put it on your computer for noncommercial use- 'fair use'. (*g* I'm tempted to start talking in terms of warranty replacement of media. What kind of warranty do you get on major label releases? ;) )

    Looks like airwindows will finally start to come into its own with all this- I have to be grateful to mp3.com for going down in flames at this time, because it gave me the massive kick in the butt to stop thinking like a musician (wanting to buy a Yamaha DX7 and rebuild my fretless electric guitar) and start thinking like a studio owner/indie label (buying the MEANS OF PRODUCTION). Looks like it's about time to revise airwindows.com to focus on the stuff I'll be doing along these lines, too. It's more fun sweeping the floor when it's your own store ;) and I hope to be doing stuff that slashdotters will find insanely cool.

    Thanks mp3.com- it's been real- hope your bigwigs have good golden parachutes. Thanks for the $260, keep the change, and who _did_ you get to write up that new artists' agreement? Universal lawyers?

    1. Re:Heh, and just in time :) by beej · · Score: 1
      I've ordered a CD burner- and I'm making an order for 100 Mitsui gold/gold _printed_ CD-Rs.

      Beware--I've heard that some DVD players don't play CD-Rs. Yet another feature by your friendly RIAA.

  51. WRONG! by Sloppy · · Score: 3

    MP3.com did have an honest business distributing music in the MP3 format, and the RIAA was unable to touch them. That business involved distributing MP3s by musicians with the musicians' permission. It was great, too, and it openly defied the "music industry" while the industry could only look on in total frustration and impotence, not having a single legal argument against them.

    And then mp3.com did something incredibly stupid: they started their my.mp3.com service, and "beamed" MP3s by musicians who were not signed with mp3.com. That was begging for trouble. I wish they had spun this ridiculous idea off to another company, since now the totally legitimate parts of mp3.com are now endangered by huge settlements.


    ---
    --
    As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  52. Re:Content producers by Chris+Johnson · · Score: 2
    Well... Musicians usually _don't_ get paid: instead they are given services in exchange for their work. These services include going and recording the work in the first place- the best analogy would be if you, as a computer programmer, were paid by being allowed to use the computer which you were programming on. To make this a better argument let's imagine it's a Cray supercomputer. Then you would be paid by being allowed to program on the Cray supercomputer, and if you do a really good job you lose ownership of your program but don't necessarily end up owing the owner of the Cray a lot of money :)

    There's a reason why programmers buy houses in Silicon Valley and major label musicians file for bankruptcy- programmers are paid for what they do, and major label musicians are not (if they have attack dog lawyers, like Metallica, and a really hard-nosed business sense, they have a better chance, though they still won't be in the same income bracket as the comparable tech professional)

    Oh, and musicians don't necessarily get money from their works after they die, either. Though the power-grab assigning copyright to the labels forever seems to have been disabled AFAIK (due to much lobbying by high profile artists like Don Henley), artists still don't own their mechanicals- the 'masters'- just (hopefully) ownership of the song itself- and even then, only after 20 years when the label can't hang onto it any longer.

    Frankly I think we'd be better off paid _your_ way: a flat salary, something nice and cushy but nothing like winning the lottery. We already have the 'my work belongs to the company' part ;) (no, I'm not actually a major label artist _really_ ;) )

  53. Re:I agree by Rader · · Score: 1
    Yea, being awarded that much money seems kind of rediculous. But the law says that EACH infringement of copyright violation can be up to $150,000 !!!

    (I thought it was only 100,000 but the article mentioned 150,000)

    Seems pretty steep, but I think the law was made long before distribution of the internet was even concieved of. Probably wanted to make it extremely steep for just 1 violation. But Imagine, getting 200,000 consecutive life-time sentences for dropping the A-bomb on Hiroshima or something.

    Rader

  54. Re:You do not understand by interiot · · Score: 2
    I have to disagree. Straight from the horse's mouth::
    • The lawsuit is not about any particular format. MP3.com copied 45,000 copyrighted CDs onto computer servers. Whether the copies on the servers are in MP3 or any other format is irrelevant -- the suit is about the unauthorized copying and has little to do with technology at all.

      ...

      However, MP3.com does not own the rights to most, if any, of those 45,000 albums, and it had no right to copy them into a digital music library without getting authority from the people who own the copyrights.

    (emphasis mine)
    --
  55. Re:You do not understand by interiot · · Score: 2

    Argh, I can't find the text of Rakoff's ruling anymore, but yes, he agreed with the RIAA on that point.
    --

  56. Re:I beg to differ by interiot · · Score: 2

    Don't distribute music (you don't have rights to) to people who already paid for the music?
    --

  57. Re:Lesson learned: by NaughtyEddie · · Score: 2

    Oh, rubbish. When you form a company you get a lawyer. They knew they were breaking the law, they just went ahead and did it anyway. The fact that you and countless others think this law is wrong is irrelevant. You don't break the law as a business unless you're a damned idiot or a plain crook. Either way, MP3.com is hardly coming out of this smelling of roses.

    --

    --
    It's a .88 magnum -- it goes through schools.
    -- Danny Vermin
  58. UMG shafts small acts by Angst+Badger · · Score: 3
    Where this really sucks has squat to do with the boring crap produced by the big record companies. I dunno how many of you have looked at what MP3.com does for small acts with their DAM CD program, but it's a pretty cool (and largely cost-free) way for everyone with an unsigned band, be they a big local act or just some kids in the garage, to market and sell CDs of their stuff. I've probably spent more on DAM CDs this year than on anything I've seen in stores.

    Yes, Sturgeon's Law still applies, and most unsigned acts are unsigned because they suck. But with thousands and thousands of acts to choose from, and the option of pre-listening via MP3 (with the artists' explicit consent), it's not hard to find the good stuff, either.

    What the record companies are afraid of isn't piracy. It's the loss of mindshare and their inability, as large bureaucracies, to manage a future music business full of tens of thousands of performers with relatively small audiences instead of a hundred or so industry acts. What we're seeing is the battle between the music industry and the emergence of net-empowered musicians. The future belongs not to a few acts with millions of fans, but to many acts with thousands of fans.

    It will be a shame if this is delayed -- it can hardly be stopped at this point -- by the music "industry".

    --

    --
    Proud member of the Weirdo-American community.
  59. Re:Huh? by Duke+of+Org · · Score: 1

    Just go to Best Buy
    Get the CD, Use the Beam-it software,
    take it back to Best Buy and explain to them you suddenly realized you didn;t actually have a cd-player, and that you thought they would play in you vcr or something. Atleast they let me do this(and yes I do have a cd-player ;0)

  60. Re:Profiting from other's works by interiot · · Score: 2
    Another situation where people profit from other's copyrighted works without permission:

    Used CD's. The store gets paid for their effort in bringing buyers and sellers together, and they get a bit more on top of that. This is completely legitimate. Yet they're still profiting from other's copyrighted works without permission.
    --

  61. Re:Right on all counts but one... by Cheerio+Boy · · Score: 1


    Here are the dots...

    Courtney Love does a good job of connecting them.


    The Tick - "Spoon!"

    NEO - "There is no spoon."

    --

    "Bah!" - Dogbert
  62. Right on all counts but one... by tswinzig · · Score: 1

    The artists don't see enough of the profits from a CD. And that's why we've flocked to Napster and Gnutella and the like.

    Can you please connect the dots for me?

    -thomas

    "Extraordinary claims require extraordinary evidence."

    --

    "And like that ... he's gone."
  63. Re:And MS gets a $1 million fine for monopoly abus by tswinzig · · Score: 1

    Given that MS gets fined $1M dollars for attempting to put a company out of business by pulling a bait-and-switch, doesn't look like the world is flat on a legal basis does it?

    That's OK, the world is not flat on a reality basis either.

    Or did you mean the playing field? =)

    -thomas


    "Extraordinary claims require extraordinary evidence."

    --

    "And like that ... he's gone."
  64. It was per CD because by zipwow · · Score: 1

    ... the streaming of the CD wasn't illegal (or at least it wasn't challenged). It was the creation of the database of CDs that was declared illegal, and so its the number of CDs in that database that defines the fine.

    Of course, if you take the number of CDs in that database (10,000) and multiply it by the apparent damage to the label (0) you'll reach the number that I think is reasonable...

    Zipwow

    --
    I don't know which is more depressing, that 2/3 didn't care enough to vote, or that 1/2 of those that did are crazy.
    1. Re:It was per CD because by cei · · Score: 1

      But if MP3.com paid for all the CDs (which they did, how else could they get them besides stealing?) aren't they allowed under current copyright laws to make one archival backup of what they bought? Of course, that's what the whole case hinges on, except they're squabling over the consumer's rights to copy what they bought.
      ------
      WWhhaatt ddooeess dduupplleexx mmeeaann??

      --
      This sig intentionally left justified.
  65. Re:Huh? by Kimble · · Score: 1
    Actually, it could be argued that they did not copy the music - they merely provided tools to enable the end user to do so.

    How could this possibly be argued?

    MP3.com took all their CDs and ripped them. They provided me a tool that took some checksums from random parts of my major-label CD. Since enough of them passed, MP3.com gave me the ability to listen to their MP3s of that CD. I never encoded my CD into a listenable format. (Well, actually I did, but not with their tools.)

    MP3.com copied and distributed the music. They can't legally do that. Now they're paying the price. End of story.
    --

    --
    ..!!in an intastella burst i am back to save the universe!!
  66. Re:What is the difference between MP3.com and Mypl by stx23 · · Score: 1

    The difference between mp3.com & myplay is that myplay is potentially in the pocket of TimeWarner through the AOL/WinAmp ties.

  67. Re:Huh? by EricWright · · Score: 2
    They did not have permission to copy and distribute the music in the first place

    There is something called FAIR USE

    That's right... there IS something called fair use, but it doesn't allow redistribution, which is exactly what mp3.com was doing.

    MP3.com may not have had the right to copy this music...

    That's not the point. They have that right under fair use. What they don't have the right to do is redistribute the music, UNDER ANY CIRCUMSTANCES. That is why they were sued and lost.

    Radio stations pay good money to broadcast music, regardless of how many people listen to them, and how many of those own, or don't own, their own copy of that music. It's nice that my.mp3.com was trying to cover their butts by insisting that you have the CD in your CD-ROM drive (once... which brings up the whole borrowing a CD for a couple minutes issue), but they were still redistributing the music without consent.

    I don't like the implications, but they really blew the pooch by not consulting with a knowledgable copyright/IP lawyer first.

    Eric

  68. Re:Profiting from other's works by interiot · · Score: 2
    1) isn't the tax on recording media?

    2) My intention was to point out a case where it's legal to profit from someone else's copyrighted songs.

    Yes, the laws say that mp3.com was wrong. I think the laws should be changed.
    --

  69. You betcha by Chris+Johnson · · Score: 2
    See www.mp3licensing.com if you don't believe that. If you're distributing YOUR OWN stuff commercially, these clowns will come demanding a penny per download- minimum of $15,000. This is a very real threat, and I personally cannot wait for Mac ports of Ogg Vorbis and hosting services that appreciate ogg files.

    Until then, I will continue scouting for mp3 hosting sites to let _them_ deal with the risk of this kind of squeeze- if there are any out there which don't have insane clickthrough contracts. I'm a dangerous client- I can read. *g* I swear, too many of these damned contracts and agreements seem to assume the artist doesn't have a functioning brain...

    1. Re:You betcha by RickHunter · · Score: 1

      I've heard a lot of artists saying that MP3.com has a decent contract, at least compared to the ones used by the record companies. Is this true?

      Oh, and what's EMusic's like?


      -RickHunter
    2. Re:You betcha by Chris+Johnson · · Score: 2
      I used to say that. Loudly. Publically. That's because it used to be true. It's not true any longer, because they changed it. I can't in good conscience recommend that anyone agree to the new one, primarily because it's unilaterally negotiable on only five days notice and they're not required to _contact_ or alert you, only to make notice available somewhere. That's a very 'record company' clause. Formerly the mp3.com contract required you the artist to sign off on any changes with essentially a confirmation email, or the changes wouldn't apply.

      emusic appears to be iuma, for an indie artist. You have to go through iuma. This permits only 10 songs (a major drawback for someone like me with (a) a huge catalog and (b) wanting to make it ALL downloadable). I wasn't able to get to anything resembling a contract from iuma because 'Artist Uplink' was down ;P :)

      Don't know what to tell you. I'm going off to delete the rest of my mp3.com site right now (got interrupted mid-site-shutdown) and still don't know where I'll end up, except that I'm going to be producing and selling CDs that are _way_ better than what I was offering through mp3.com DAM CDs (I will be selling Red Book Audio full quality CD rather than stuff ripped off mp3s- all DAM CDs are actually burned from the mp3s you send mp3.com, though they can still sound nice)

      Anyhow, the important thing for _you_ is that mp3.com no longer has a decent contract. I'll be looking at iuma's when I can- you can't host on EMusic directly, you have to do it through iuma with the reservations and limitations inherent in that. (for instance, I could just barely host _one_ album if that album was 'Dragons' (10 tracks), and wouldn't be allowed to put anything else up. This is not the way to host a substantial discography ;) )

  70. Re:Lesson learned: by Otterley · · Score: 1

    Beware, folks. This opinion is from someone who apparently is employed by a company under the Universal umbrella. Do a 'whois' on naughtydog.com to see for yourself (they made the Crash Bandicoot series of games for Sony PlayStation).

    Besides, whether or not MP3.com really broke the law still seems like a gray area to me. It seems odd to me that the judge didn't even bother to examine the scheme closely and ponder the unintended legal consequences that would result from such a hasty decision like that.

    I hope MP3.com appeals. I really want to see a better clarification of what the law allows and what it doesn't, because the District Court is a rather low place on the totem pole.

  71. Re:Believe it ... it's same as radio. by SlashGeek · · Score: 1
    "Note that nowhere on that link, or at any other similar organization, does it say "None of this applies if you broadcast to people who already own the CD of the song you're playing."

    Um, if it was only able to be heard by a select group of people, it wouldn't be a broadcast. It would be similar to something like HBO, where only permitted users (should) be able to recieve the material. HBO and similar stations pay royalties per subscriber. That's the arguement against MP3.com, it doesn't pay royalties on songs, nor does it regulate who can recieve data from them. It was, in a sense, broadcasting. And radio stations, through market studies, know approximately how many listeners they have on average. This information is compiled to help advertisers know when to post their commercial, as well as so they know how much to charge for commercial airtime. I wouldn't doubt for a second that the RIAA also uses this information to deterimine how much to charge the radio stations, but I cannot say this for sure.

    Also, the radio station/mp3.com anology doesn't quite hold up well for this reason: when was the last time you purchased a CD or searched MP3.com by artist or song title BEFORE hearing it? If you never heard the song, how would you know it existed? Radio stations give bands HUGE exposure, something that listen on demand services such as MP3.com cannot do, because they can't control what music gets used. There are 3 main ways that music gets exposed, MTV, radio, or through a friend. That friend probably heard it first on MTV, the radio, or got it from a friend who heard it on MT.....

    Still, the RIAA is dumb for not harnessing the potential of this technoligy. Could you imagine the "New Artist" section of Napster if the RIAA submitted mp3's? This is where they could fill the pitfalls of radio, people like me who rarely listen to it. I find popping in a CD to be much more convienent as I don't have to listen to commercials, songs I do not want to hear, or worse yet, annoying DJ's. I have not all day to listen to the radio for some amazing new song that I probably won't hear them name anyway. But if I could go to RIAA.com, pick a style, and see what's new on my own time, hell yeah! RIAA, wake up and smell the cable modem cooking... you can't stop it, so figure out how to use it to your advantage!

    --

    --I assume full responsibility for my actions, except the ones that are someone else's fault.

  72. Haiku by quintessent · · Score: 1

    Buy the CD, they said
    We'll help you use it better--
    What a nasty plan!

  73. mp3.com still does not have broadcast rights by brokeninside · · Score: 2
    My understanding was that Beam-It software only provided MP3's for CD's users already had. It confirmed the users' ownership by having them place the CD's in and verify the serial number.

    It doesn't matter whether or not the users of Beam-It had the 'right to listen' to the music, what matters is whether or not mp3.com had the right to distribute the music. Your 'right to listen' is non-existent as a legal concept. The only right the court is concerning itself with is the right to broadcast, which mp3.com (rather stupidly) neglected to acquire.

    Think about it, when radio stations broadcast, they don't care whether or not the listeners already have a license to listen to the tunes, but you can bet your sweet hind end that they care about whether or not they have a right to broadcast those same tunes over the air

    1. Re:mp3.com still does not have broadcast rights by interiot · · Score: 2
      1) MP3 does have a right to distribute from the ASCAP (see here)

      2) Do I have to be licensed from the ASCAP to sell a used CD on ebay? I'm distributing someone's copyright without their permission, and profiting from it.
      --

    2. Re:mp3.com still does not have broadcast rights by interiot · · Score: 2

      MP3.com absolutely did not broadcast the music. They gave copies of music to people who had already paid the copyright holders for the right to listen to it whenever and wherever they wanted.
      --

    3. Re:mp3.com still does not have broadcast rights by atreus42 · · Score: 1
      Do I have to be licensed from the ASCAP to sell a used CD on ebay? I'm distributing someone's copyright without their permission, and profiting from it.

      Actually, in most cases you wouldn't be profiting from it. Somewhere along the way that CD was already paid for in full (or stolen). It works along the same lines as not having to pay sales tax at garage sales...

    4. Re:mp3.com still does not have broadcast rights by jms · · Score: 1

      I repeat: under current copyright law, there is no such thing as a 'right to listen.

      I know what you mean, but you're saying something else.

      Title 17, Section 109 (c) Notwithstanding the provisions of section 106(5), the owner of a particular copy lawfully made under this title, or any person authorized by such owner, is entitled, without the authority of the copyright owner, to display that copy publicly, either directly or by the projection of no more than one image at a time, to viewers present at the place where the copy is located.

      This doesn't address the my.mp3 issue, but if you own a physical copy of a book, CD, or DVD, you have the right to read that book, play that CD, or show that DVD without the permission of the copyright owner. This is fundamental to the entire purpose of copyright -- to promote learning.

    5. Re:mp3.com still does not have broadcast rights by interiot · · Score: 2
      Doh. Got hung up in section 106(5). The exception just says that only a copyright holder can do all those things in public. But you're allowed to do them in private.

      Just wanted to clarify so other people don't get hung up in that.
      --

  74. Re:And MS gets a $1 million fine for monopoly abus by TheReverand · · Score: 3
    I've got an idea,

    Why don't we go for 15 minutes without thinking about Microsoft? Is that ok with you? Think you can handle it? Different case, different situation, different judge, different crime. Got it?

  75. Re:What if? by eddy+the+lip · · Score: 3

    If I only had access to first-tier music distribution, I'd:

    • buy less music ('cause more of what I'd be exposed to would be pure crap)
    • have much more predictable buying habits ('cause I'd be exposed to fewer choices)

    In the end, that's probably a win for the big music distributors. What little they'd lose in revenue from the non-mainstream music loving public they'd more than make up for in being able to more accurately predict music buying trends.

    I'm pretty sure this is what they've figured out too, and they're working on that future.

    Gotta go have some doubleplus goodthoughts.

    --

    This is the voice of World Control. I bring you Peace.

  76. Re:Ohhkayyyy by Rader · · Score: 1
    .

    --- Of course there's a difference. We recognize the motive in many crimes that are prosecuted -- if you kill someone by accident you'll probably get less time than if you do it on purpose.---

    If you kill someone by accident, it's called Manslaughter. This can happen a lot in car accidents. There are lesser forms also, such as Reckless Endangerments, etc, etc.

    But that's criminal law. I don't think mp3.com was in criminal courts, just civil courts. And then again, I don't know a damn thing about the law, I'm not a lawyer (that is why I still have a soul)

    The first thing you'll get, when running a rogue mp3 web site, etc, is a letter in the mail from their lawyers. A cease-and-desist letter. After that time, if you don't cease, then they can take you to court and will show the letter they sent, proving that you did indeed know what you were doing wrong, because they told you what you did wrong.

    But remember, the RIAA hands out these letters by the hundreds, and it doesn't necessarily mean they're right. But they're on a mission, and that's to scare everyone straight, and if that doesn't work, sue them if they have enough money.

    Waiting for my letter....

    Rader

  77. Profiting from other's works by interiot · · Score: 3

    I bought a portable CD player the other day. I wouldn't have bought it if it weren't for the CD's that RIAA produces. The manufacturer profited from the RIAA's music by allowing me to listen to the RIAA's music in more places. The manufacturer didn't have an agreement with the RIAA to profit from their works. Yet they did it anyway.
    --

    1. Re:Profiting from other's works by interiot · · Score: 2

      I wasn't arguing what the reality is, I was arguing what the law is. AFAIK, It's perfectly legal for me to manufacture a CD player and not give any money to the record companies.
      --

    2. Re:Profiting from other's works by RickHunter · · Score: 1

      Yeah, and didn't the RIAA try and get a couple of used CD stores shut down a while back? Or tried to do something nasty to them, I don't remember what... It was before I started reading online news stuff and, as one can guess, it didn't show up in much offline media...


      -RickHunter
    3. Re:Profiting from other's works by chrislike · · Score: 1

      Was your CD-player made by sony? Or someone else who is also a member of the RIAA? Face it ... its all one mega-corp except for the internet startups that are being squashed.

    4. Re:Profiting from other's works by tswinzig · · Score: 1

      1) isn't the tax on recording media?

      I don't know if there's tax on media, but there is definitely tax on DEVICES that record digital audio/video, with the notable exception of CD-ROM devices...

      -thomas


      "Extraordinary claims require extraordinary evidence."

      --

      "And like that ... he's gone."
    5. Re:Profiting from other's works by jafac · · Score: 1

      Yes, the CD player's manufacturer probably DOES have an agreement with the RIAA. There are a set of standards that the manufacturer has to follow, at a minimum.

      Granted, the agreement with DVD manufacturers is much more stringent, regarding region encoding, CSS, etc.

      if it ain't broke, then fix it 'till it is!

      --

      These are my friends, See how they glisten. See this one shine, how he smiles in the light.
  78. Re:You do not understand by Jeffrey+Baker · · Score: 2
    C'mon siggy use your brain. If a person copies a CD to a hard disk, that is fair use under copyright law. If a business does the same thing in the course of making a bunch of money, that is definitely not fair use.

    The only way the my.mp3.com service could be legal would be if it was operated by a not-for-profit entity, and even then, it would be heavily challenged in court.

  79. We call them 'bars' or 'dance clubs' by bee · · Score: 2

    Kinda for the same reason I can't hold a party in which is sponsors where I make money and play a bunch of music foreveryone, even if I check to see if they bought the cd's themselves.

    I don't know what world you live in, but my people call them bars or dance clubs.

    ---

    --
    At least mafia-owned pizzarias make excellent pizza. Compare to Bill Gates.
    1. Re:We call them 'bars' or 'dance clubs' by Phibian · · Score: 1

      'Bars' and 'Dance Clubs' have to pay money for the right to play music.

      Restaurants etc do too. If they don't, they are technically violating copyright law. There was a big stink in Ottawa (Canada) about 6 months ago about this very issue where the rates were about to be raised to a point where many small restaurants wouldn't be able to afford it. I don't remember the details off hand, but I believe that many switched to radio instead (?)

      Anyway, public performance of musical works is incredibly regulated. Ever wonder why all those restaurant chains (Buffalo Charlie's, Perkins, Dennys etc) come up with annoying and campy birthday chants instead of singing the traditional "Happy Birthday"? It's not just because most of the chanters can't sing (okay, cheap shot). It's because it's actually illegal to sing "Happy Birthday" in a for-profit situation, or in a gathering of more than 25 people, without paying the appropriate (and not cheap) royalties to the Warner Bros.

    2. Re:We call them 'bars' or 'dance clubs' by robjob · · Score: 1

      I think the copyright to Happy Birthday is held by an organization called the American Linguist Society or something like that. But I could be wrong.

      Rob Jones

    3. Re:We call them 'bars' or 'dance clubs' by interiot · · Score: 2
  80. Re:Content producers by Sloppy · · Score: 2

    I produce IP on a fixed salary, but both me and the company are opposed to copy protection. Why? Mainly because it's a pain in the ass.

    Also, if someone is unable to backup their software because of copy protection, then when their hard disk goes bad, or the monthly Windoze reinstall reformats it, and they lose their stuff, it would be our fault instead of theirs.

    You can't have copy protection and still allow for Fair Use. There just isn't any way to do it, whether it's software, music, movies, or whatever.

    Note: if someone took advantage of the lack of copy protection in our products, and actually went ahead and infringed, and we found out about it, we'd be all over them like make up on Tammy Faye Baker.


    ---
    --
    As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  81. MP3.com charged per-CD or per-download? by dmccarty · · Score: 2

    Does anyone know if MP3.com was charged per-CD in their MyMP3 database or was it per download of songs? IMO it seems that an infringement would have occurred only when the song was downloaded but it seems from reading the news stories that they were charged for every title in their database, regardless of whether the CD or song was actually used or not. Doesn't distribution have to occur to commit infringement?
    --

    --
    Have fun: Join D.N.A. (National Dyslexics Association)
  82. Re:What is the difference between MP3.com and Mypl by Luminous · · Score: 2
    You have it essentially correct. I can upload my mp3's into personal lockers to be able to listen wherever I want. But when the company takes it upon themselves to copy all the music without license to make available to whomever proves they have the cd (whether it was bought, borrowed, or stolen) is quite another.

    Of course the next step is to shut down those personal storage sites, which will occur right about when someone realizes they can transfer files between the lockers and suddenly you don't have to worry about download times on Napster anymore.

    --
    This is not the way to build a lasting empire.
  83. what about the artists? by Galois · · Score: 3
    . . . and the artists will see $0 of it.

    free money for the labels, but since this isn't from the sale of records, it won't go to the artists, and they will get fucked yet again.


    - daniel

    --
    - daniel
    Turn off your computer and go outside
  84. Classical solution by Dollyknot · · Score: 1

    The best answer is listen to classical music, most of the composers are dead and don't worry about royalties any more. Chopin really blows your mind.

    --
    It's called an elephant's trunk whereas it is in fact, an elephant's nose, a nose by any other name would smell as sweet
    1. Re:Classical solution by Chris+Johnson · · Score: 2
      "The present day composer refuses to die!"
      -Edgar Varese, July 1921
  85. Re:Sheesh by interiot · · Score: 2
    If the 18yo could PROVE beyond a shadow of a doubt that they're buying the beer for a 21yo, and they could PROVE that they're going to immediately give the beer to the 21yo without doing anything else, shouldn't it be legal for the 18yo to buy the beer for you?

    Of course, it's nearly impossible for the 18yo to prove they won't drink it themselves, thus the law. But if they could, I don't see any problem with it.
    --

  86. Re:Content producers by jafac · · Score: 1

    Well, your equivalent in the music industry is the "studio musician", who does stuff like soundtracks for beer commercials. Quite often, these guys are really talented musicians, but also, usually not very good or prolific writers, so they play music written, arranged, and produced by others. They often get salaries, work from 9 to 5, never tour, usually never play outside of a recording studio. If they suck, their manager hears their music and says: you suck, you're fired.

    Then there's the free-lance consultant programmer, who may write shareware for Kagi, or do database or web programming for fees. If they're smart, they'll include royalties in their contract, in case some other contracter comes in later, maybe to fix a bug, or update features, looks at your source code, decides he likes it, copies it, uses it in other projects later. That is where your copyright infringement and royalties would come into play.

    Now, just like any shmo with Netscape can view your source, any shmo with minimal talent can listen very carefully to a song played, and transcribe it, and learn to play it himself. If he plays it professionally, he's infringing, though there are these "cover bands" that play at your local nightclubs and stuff, who do this all the time, and AFAIK, don't pay royalties on the songs they cover. (Free Bird!)

    if it ain't broke, then fix it 'till it is!

    --

    These are my friends, See how they glisten. See this one shine, how he smiles in the light.
  87. Ohhkayyyy by dagoalieman · · Score: 1

    I've always wondered, is there a difference in penalty for WILLFUL and UNWILLFUL violations?

    Really, I imagine there isn't.. Why can't the courts just come out and issue a Jon Katz like article/post/story/whatever to the general public and finally lay down the legal opinion on this? We all know it's screwed up, let's just get the flaming over with now.

    Somehow, I also guess that there will be references to Shadowrunner in there too...

    --
    We don't need no Net Explorer We don't need no Thought control
    1. Re:Ohhkayyyy by radja · · Score: 2

      stop copyright infringement, turn off caching in your browser. Good luck telling me to stop it. Geez.. they're stupid enough to try.. actually.. they'll just sue netscape and MS, for allowing caching of copyrighted documents in the first place.

      //rdj

      --

      No one can understand the truth until he drinks of coffee's frothy goodness.
      --Sheikh Abd-Al-Kadir, 1587
    2. Re:Ohhkayyyy by NMerriam · · Score: 4

      I've always wondered, is there a difference in penalty for WILLFUL and UNWILLFUL violations? Really, I imagine there isn't..

      Of course there's a difference. We recognize the motive in many crimes that are prosecuted -- if you kill someone by accident you'll probably get less time than if you do it on purpose.

      Similarly, if you accidentally copy something (say you don't realize that what you're doing is a copyright violation), you'll likely be told to stop doing it.

      If you do it over and over after being told to stop (and being informed it's a violation of copyright), it's pretty clear you're doing it IN SPITE of the law, and you'll get a harsher penalty...

      I'm an investigator. I followed a trail there.
      Q.Tell me what the trail was.

      --
      Recursive: Adj. See Recursive.
  88. this really had nothing to do with trading mp3s. by Wakko+Warner · · Score: 2
    MP3.com was charging for copyrighted materials which they did not own. No trading ever took place, and mechanisms were in place to ensure, at least ostensibly, that no unauthorised trading ever took place.

    That having been said, I personally think the $118M is awfully high (and should be knocked down on appeals). A copyright violation should only be considered when a my.mp3.com user downloaded an mp3. I imagine the damages in that case would be much lower. But what do I know. Turning lead into gold (turning "copyright violations" into cash) isn't my area of expertise.

    - A.P.
    --


    "One World, one Web, one Program" - Microsoft promotional ad

    --
    "Remember when the U.S. had a drug problem, and then we declared a War On Drugs, and now you can't buy drugs anymore?"
  89. Re:Sending us a message?! by Tackhead · · Score: 2
    > Does he not realize that the "Internet Community" is millions strong, and includes his neighbors,
    > friends, co-workers, kids, and what not? These are the people using services like BeamIT.

    Well-said.

    In a spirit of vicious irony, I present the following sample from NWA's "100 Miles and Runnin'":

    But we got ten thousand niggaz strong,
    we got everybody singin' ma "Fuck da Police" song,
    and while you treatin' my group like dirt
    yo' whole fuckin' family is wearin' ma T-shirt
    For you young 'uns who don't remember, NWA is where Dr. Dre's got his start in 1989-1990. What goes around comes around.
  90. I'd be pissed if I was an investor in Mp3.com by Rombuu · · Score: 2

    I mean, there goes a ton of their investment capital into the pocket of Universal.

    Then again, they couldn't have been too bright in the first place if they thought they were going to get away with this.

    --

    DrLunch.com The site that tells you what's for lunch!
    1. Re:I'd be pissed if I was an investor in Mp3.com by kreyg · · Score: 1

      They might have planned for it, but losing $150M that they otherwise would have had HAS to hurt some.

      Buying life insurance doesn't mean you're doing fine when you're dead.

      --
      sig fault
    2. Re:I'd be pissed if I was an investor in Mp3.com by Rombuu · · Score: 2

      No, Universal can not do that. Court proceedings are taxed like any other income.

      --

      DrLunch.com The site that tells you what's for lunch!
    3. Re:I'd be pissed if I was an investor in Mp3.com by robjob · · Score: 1

      Actually, a lot of investors had already calculated the risk into their investment. (kind of like investing in Union Carbide - you know that sometime, someplace there is going to be a leak that kills thousands of people.) MP3.com had already set aside $150 mill for this contingency so it really isn't going to make that big a damper into their finances.

      Rob Jones

    4. Re:I'd be pissed if I was an investor in Mp3.com by krisitna · · Score: 1

      Hey,

      I have money in MP3.com and I'm keeping it there (of course, I'd be loosing big time if I were to sell right now). I still think that their business model makes sense (more than Napster's).

      Unfortunately, they haven't been doing so good legally (so I might just be full of crap by keeping faith in MPPP) but the fact that they got agreements with other labels means that they may yet survive in the long run and become one of the pioneering audio broadcasting companies once the RIAA calms down with their legal sillyness.

      Only the future will tell, wish me luck :-)

    5. Re:I'd be pissed if I was an investor in Mp3.com by Johnny+Starrock · · Score: 1

      Maybe we could all short MPPP tomorrow morning and then invest the gains from the trades into that "Tip the artist" website (who's url escapes me).

      Of course, my market knowledge is lacking, MPPP could very well shoot through the roof tomorrow. Who can tell anymore?

      --

      end communication
  91. Rights? by KaeloDest · · Score: 1

    Dang, I guess you only hve the *rights* that you do not intend to use

    --
    --Shaddup and support your local PBS station Plan for it
  92. Maybe... by cot · · Score: 1

    the artists should sue the record companies for a share once MP3.com has been bled dry.

    --

  93. Re:You do not understand by quasipunk+guy · · Score: 1

    Well, I should hope that law doesn't really exist.

    Reeks of the fucking Stamp Act. It would only prove further that this compa^H^H^Huntry is totally screwed up (I actually did start typing company, it was an accident, but makes a good point). There will be some sort of political revolution within the next 20 years, hopefully it will be for the right side (ie, not the big business' side). I'm all for free enterprise. It just makes no sense that a bunch of money grubbing fuckheads (the RIAA, duh) could tax media I wish to buy because someone else might do something they don't like with it! It would be one thing if they owned the patents on the medium, or if they were the sole supplier/distributor. But they want to bake a cake and eat it too. For most audio media, they're getting you coming and going (CDs cost an obscene amount, and audio CD-rs cost a similarly absurd amount).

    So anyways, although I'm fairly sure such a law does not exist, I feel it would be our civil duty to break such a law if it existed. The effort against piracy is almost halfway legitimate, but the real reasons are so obvious (to us, the educated consumers) that their moves reek of Orwellianism. I certainly don't want to live in a country where I can't record a CD without being accused of being a pirate...

    Okay, I'm a little upset today, and this whole issue is such utter bullshit that I may have gone a little ballistic. But fuck the RIAA.

    -tsunake

  94. Independent artists (was Re:Stupid MP3.com) by Dr.+Smoe · · Score: 2

    Exactly. While people may like to look at the poor shareholders (who admittedly got screwed by mp3.com's poor decision), I'm feeling more sorry for those independent artists who were using mp3.com to distribute (or just give people a place to hear) their music. I personally have found plenty of very good stuff there (like Basque...mmmm) If this ends up being the end of mp3.com they're the ones who are really getting hurt.

    Gee... you'd almost think the RIAA had some sort of interest in seeing mp3.com fail and just happened to get lucky thanks to my.mp3.com....

  95. what? by crazy_speeder · · Score: 1

    do they really think that this will deter people from trading mp3s? i guess it'll make some companies cover their ass better.

    1. Re:what? by lunatik17 · · Score: 1
      Of course not. They're pissed that someone else was clever enough to make a business out of what they have stolidly refused to ackknowledge. Even if Napster is shot down and Gnutella is too slow to use, mp3s will continue to be traded on the net regardless. Mp3s have been traded on the net for as long as they've been in popular use.

      It's funny to see them getting all hot and bothered over other people figuring out ways to make money from music. How can they claim mp3 companies are stealing business when for years they refused to even consider offering something similar? They've certainly had the opportunity.

      --

      Here's my DeCSS mirror, where's yours?

  96. Re:Huh? by Duke+of+Org · · Score: 1

    I'm just saying, they did take mine back because I played really stupid. Maybe the guy who did shouldn't have.

    Perhaps you could take them home, upload them, then Scratch them or something, and see if you could talk them into taking them back

  97. Re:Content producers by Stonehand · · Score: 1

    Copyright provides a fairly big hammer if somebody chooses to be a bozo and, say, start a competing business by first duplicating as much of your web work as he can get.

    By itself, laws cannot prevent acts, but they permit enforcement (people generally being happier with their police and other authorities if these officers appear to be acting in accordance with laws produced through some due process, rather than imperial edict or personal whim), and thus can provide some deterrent value. Combine this with a fairly large number of institutions -- like, I'd suspect, pretty much any business, government agency or university -- that have policies against either violating laws in general or copyright in particular, and there's a fair bit of (post facto) teeth.

    Could a schmuck rip off all your work? Yes. But that clearly risks sanctions that wouldn't happen w/o both copyright law and an enforcement system, so any schmuck who's considering ripping off your work and making a business out of it has to consider the consequences.

    And somehow I don't see many beserk "distributions of passion" occuring where pure emotional surges cause unthinking violations of copyright...

    --
    Only the dead have seen the end of war.
  98. mp3.com did not broadcast copyrighted material by zipwow · · Score: 1

    "broadcast", according to the Merriam-Webster collegiate dictionary (not a legal dictionary I realize) is "to make public by means of radio or television". Assuming we'll extend it to the internet, the point is clear: broadcasting is making something public. mp3.com did NOT make the streams and music public, clearly something else other than broadcasting. Lets call it narrowcasting.

    Next, you're assuming that narrowcasting = distribution. All our distribution laws and legal precidents are written with the assumption that the distribution is of new material.

    'Distributing' to people who already own the material is a legally grey area, though I personally believe it to be a very clear moral one.

    And finally, mp3.com was not sued for rebroadcasting or narrowcasting or distributing music in any fashion. They were sued and now fined for creating a database (or catalog) of music and profiting from it.

    Zipwow

    --
    I don't know which is more depressing, that 2/3 didn't care enough to vote, or that 1/2 of those that did are crazy.
    1. Re:mp3.com did not broadcast copyrighted material by interiot · · Score: 2
      Why should they be sued for copying the songs to their hard drives? I'm allowed to.

      Why should they be sued for profiting from other's copyrights without permission? These people do it legally:


      --
  99. Re:Huh? by mOdQuArK! · · Score: 2

    They don't need permission from anyone to copy the music for their own internal use, according to non-RIAA fair-use interpretation (and contrary to YOUR opinion, fully in line with society & court decisions).

    They DID violate distribution rights (from what I've read, they were trying the "quantum" version of information theory - if you can't tell the difference between US doing the copy, or the USER doing the copy, then there is no difference) - which the judge laughed at, just before he threw the book at them...

  100. Re:What is the difference between MP3.com and Mypl by szyzyg · · Score: 2

    The difference is that myplay only provided the space for people to store mp3's which they extracted on their own. The copyright violation takes place during the distribution and unauthorisded ripping.

    The share feature is like a radio station, your playlist sequencing has to comply with the radio rules i.e. you can't legally put up the whole of dark side of the moon or some similar album.

    Oh.... and myplay is usable over netscape on linux - my.mp3.com kept crashing on me.....

    Hey... they even use icecast - so I'm happy ;-)

  101. Re:You do not understand by Yardley · · Score: 1

    You do forget to address the outrageous amount being charged ("awarded") for each CD copied from optical media (on which it was bought) to magnetic media (a backup copy). Where in the world does the Judge get $25,000 per backup'd up CD from? Also, why is a business not allowed to make backup copies of music it has licensed (which mp3.com did when it bought the CD's) when an individual is? I say MP3.com was well within its rights when it backuped up those CD's to its hard drives, just as I am when I do. Streaming the music to other licensed owners seems to be the only grey area, though the judge exonerated them on that... Maybe because if you and I are both licensed to have the same IP then we can obviously share our copies of that IP. Duh!

    --

    --

    --
    He lives in a world where those who do not run the client software of the omnipresent meme are unacceptable.
  102. Damages by Signal+11 · · Score: 3
    Somebody mail this judge a clue!

    The reason for the large damages? The judge wants to deter other people from "infringing on copyrighted materials". Anyone notice a drop in music sharing? Anyone? Bueller?

    This is really stupid and I hope MP3.com approves it. There was already an analysis of the My MP3 protocol put up. There was no way to infringe. Period. MP3 is shelling out twenty five thousand dollars per CD - payment for what? If this is the modern definition of compensatory damages, I'm shocked.

    1. Re:Damages by Technician · · Score: 1

      I think I have already purchaced my last CD. How many people think the same? How much damage has the judge caused. Can it be as much as the MP3 award or more? If the companies don't want the CD format supported, don't support it. Remember the minidisk, GIF's, DVIX movies and other entangled formats? Let them die! CD's and DVD's are next.

      --
      The truth shall set you free!
    2. Re:Damages by rizzo · · Score: 1

      I assume you mean that you hope MP3.com appeals it.

      --

      "More organs means more human." - Zim

    3. Re:Damages by interiot · · Score: 2
      Anyone notice a drop in music sharing?

      Anyone know of artists who are scared to release their music because of my.mp3.com? Now that their music is easier to use, who knows, people might start buying more music!
      --

  103. The Judge is trendy. by Lumpy · · Score: 5

    It is currently very trendy in the legal circles to slam a technology company. These judges want to get a name. (I defended copyrights, can I be a Supreme court judge?) to get higher in their career as poloticians. Is it very obvious as to what is happening, and the mp3.com case was very weak at best. Napster is going to get slammed hard, and then they will try to go after hotline, and all the other "sharing" and "warez" systems that have been here a long time. NOW, if gnutella is able to Hash the searches and transfers or make it impossible to pin down who is offering what (disallow any identity in the system and set up "reflectors" for requests) things will go smoothly.

    I dont care what judge you are and what army you have, you will never stop the sharing of music. We will always have tapes, cd-burners, etc... and the poor teenagers and college students, that when they get older will buy more audio, will probably think twice about actually buying that CD, based on the actions of the industry.

    I know that I will never give money to a Country Club again, after the crap pulled on me in college. (Golfers are snooty buttheads anyways) and my son will think twice about giving a RIAA company money, after the shaft they give to the fans and artists.

    It's a choice of the lesser of two evils.. and they are more evil than copying.

    --
    Do not look at laser with remaining good eye.
  104. Pay in Stock Options by MindStalker · · Score: 4

    Maybe they should see if they could pay in stock options! that way Universal would atleast to be forced to take a look at MP3.com's buisness model, something they have obviously not done yet :)

    1. Re:Pay in Stock Options by Anonymous Coward · · Score: 1

      Pay with processed chesse. That stuff it great. Only the real men eat cheses everyone else can stick to tofu. Tufo suxXxOrs.

  105. Re:You do not understand by interiot · · Score: 2
    1) Yes, MP3.com, as a business, copied the MP3's. However, I think this should only be illegal if they subsequently give copies of the songs to employees or non-employees who don't already own a copy. I think the "business use" is put there because distributing music internally could cause large financial damages.

    2) Businesses ARE allowed to make money from the RIAA's music without permission. For instance:


    --
  106. RIAA sucks, etc, etc. by Clint+Levijoki · · Score: 1

    I think that eventually trading music will cease to become economically viable. It's only vaible now because they control distribution. You cannot control distribution over the internet.

    Musicians are not special people. If they cannot make money making music then they're going to have to find something else to do. There are plenty of good independant artists on mp3.com if you search for them.
    This is kind of like the free barcode scanner thing. If it's a flawed business model it will fail over time.

    Music and software are kind of similar. They are both very easy to distribute and can be created only by a small portion of the population, and people want both. Music and software both have their inherent problems (RIAA, IP, M$FT), both of which will need a solution. Opensource solves software's problems. What's the solution for music?

    The sony manager said a while ago about how "they will not lose their revenue streams" when speaking about music piracy over the internet. That's kind of like "refusing to lose the revenue stream from recalled firestone tires". Natural selection will take place.

  107. As much as I hate to say it, you're a moron... by Anonymous Coward · · Score: 1
    Let's look at this a different way... suppose I started a company that offered to provide the contents of a Microsoft software CD online, but only to anyone who could prove they already owned a license for that software... should Microsoft sue me to put me out of business, or am I providing a valuable service for Microsoft customers who may have lost or damaged their CDs?

    I say the Record companies shouldn't be allowed to have it both ways. Either I own the CD outright, and should be allowed to do whatever I want with it (e.g. make as many copies as desired for my own use) or I own a license to the material on the CD, in which case it doesn't matter where the bits are being played back from, as long as the bits are identical to the bits I licensed. Which is, RIAA? I guess it must be "Whichever we think will maximize our profits in any given situation or lawsuit." Yeah, that's what I thought...

    1. Re:As much as I hate to say it, you're a moron... by Drakula · · Score: 1

      Let's make another example: Suppose I buy a book. I read the book, enjoy it thoroughly. I decide its the best book I have ever read and make it a point to read it once a year. Now let's say it gets lost in a freak spring cleaning of my house. According to you I have the right to walk into a book store and take another copy of the book at no charge. Why don't you try that some time? I believe the rights you have when you purchase a book (or a CD) are only applicable to that copy of the book (or CD) that is purchased buy you. Meaning that you don't have the right to do anything you to any other copy of the book (or CD). So just be I owned (or do own) the book (or CD) doesn;t give me the right to have access to every other copy of the book (CD).

      --
      "It's comin' back around again..." -RATM
    2. Re:As much as I hate to say it, you're a moron... by Drakula · · Score: 1

      Sorry, had more to say. What you buy when you purchase the CD is the rights to that CD, not to the music. In your example you are handing out a copy of software that is licensed to you, not everyone else, which is in violation of the MS licensing agreement (which everyone who installs MS !@#$@ clicks OK to).

      --
      "It's comin' back around again..." -RATM
  108. So which is it? by anon7864 · · Score: 1

    CNN is reporting up to $250 Million.

  109. Re:Lesson learned: by Azog · · Score: 2
    They knew they were breaking the law, they just went ahead and did it anyway
    I don't think you are correct. If they knew they were breaking the law, I'm sure they knew that the RIAA would be coming after them. And they certainly knew that the RIAA had more money for lawyers, and would sue them until they were a smoking crater in the ground.

    The investors behind the company would have considered these things too, and nixed the project if they thought it was illegal and therefore a financial risk. I'm sure they had lawyers look at it. Maybe they should sue their own lawyers for giving them bad advice.

    And if they really didn't think about it until they got sued, well, even then they could have bailed out, shut the service down, and settled out of court with the RIAA. If they knew they were breaking the law and had no chance of winning the lawsuit, that's the only thing that would have made sense.

    Therefore, even after they were sued, they must have believed they would win in court. Nothing else makes sense!

    If you believe they knew they were breaking the law and would lose the lawsuit, maybe you can explain: Why would they do anything that suicidal? Why didn't they settle out of court? What did they possibly hope to gain?

    Torrey Hoffman (Azog)
    --
    Torrey Hoffman (Azog)
    "HTML needs a rant tag" - Alan Cox
  110. As much as I hate to say it... by Drakula · · Score: 2

    As much as I hate to say it, MP3.com was engaging in distributing copyrighted material without permission and deserve to lose the case. I think it can be easily argued however that the penalty was too large. I also believe that the fault lies with the government and its inability to establish laws dealing with these issues before they erupt like they have. At the same time however it doesn't give someone the right to violate other's rights because it's over the internet.

    --
    "It's comin' back around again..." -RATM
    1. Re:As much as I hate to say it... by Eccles · · Score: 1

      Why are you people defending MP3.com?

      Because I'd like to have my music collection hosted for free rather than having to use gigabytes of hard drive space. Because I'd rather save the time I otherwise have to spend ripping and converting my CDs to MP3.

      As for CDs of publicly available stuff, that at times used to save me hours of (often unsuccessful) download time, keep my hard drive neater, etc. It always annoyed me that id wouldn't allow people to distribute Quake, et al, that way, because they ended up making my life more difficult because they couldn't stand the thought of someone making a few pennies distributing their freebie.

      --
      Ooh, a sarcasm detector. Oh, that's a real useful invention.
    2. Re:As much as I hate to say it... by Eccles · · Score: 2

      As much as I hate to say it, MP3.com was engaging in distributing copyrighted material without permission and deserve to lose the case.

      Maybe, just maybe, people should get damage awards if they have actually been damaged.

      I mean, is that really such an outrageous thought?

      --
      Ooh, a sarcasm detector. Oh, that's a real useful invention.
  111. Re:You do not understand by interiot · · Score: 2
    Yeah, the law does exist. See here for commentary.

    For the actual law, see the Audio Home Recording Act of 1992, Chapter 10, Section 1004(b).
    --

  112. More by Tardigrade · · Score: 1

    From the same site:

    In particular, the 1995 addition created the exclusive right to perform sound recordings "by means of a digital audio transmission."

  113. It's called justification after the fact. by sheldon · · Score: 2

    Oh, that's simple. People were downloading music.

    Someone said "Hey, this is wrong"

    People suddenly came up with a lame excuse, "Uhh, yeah.... well we're doing it because you ain't giving enough profits to the artists!"

    Some other dude said "Yeah! Yeah! What he said."

  114. Re:Huh? by interiot · · Score: 1

    Can you reference those court decisions? I've been looking, but it takes a lot of time.
    --

  115. Huh? by Fervent · · Score: 2
    My understanding was that Beam-It software only provided MP3's for CD's users already had. It confirmed the users' ownership by having them place the CD's in and verify the serial number.

    Granted, this could be hacked pretty easily. But I'm sure the majority of users wouldn't know how, so I'm at a bit of a loss to see where the willful loss is here.

    --

    - I don't care if they globalize against free speech. All my best free thoughts are done in my head.

    1. Re:Huh? by mindstrm · · Score: 2

      Yeah.

    2. Re:Huh? by EricWright · · Score: 2

      Wow! I take the unpopular stance, and someone agrees with me... wonders will never cease!

      Anyway, I find your suggestion hard to believe. It just doesn't add up. If I read the article correctly, they have to pay ONE of the big-5 the sum of $118M. That (theoretically) adds up to nearly $600M if they had to make that deal with each of the studios individually.

      I doubt they had over half a billion dollars to throw around when there was no certainty that their business model would make any money. VCs ain't THAT stupid. They take risks. That's the nature of VC, but this one just seems too big to have the blessing of their financial backers.

      Just my 00000010 cents worth...

      Eric

    3. Re:Huh? by Rader · · Score: 1
      Eric is right. And I also don't like the implications either.

      They didn't blow the pooch though by not consulting a knowledgable copyright/IP lawyer first though... They knew exactly what they were doing! After all, there is not such thing as bad publicity.

      If I remember from last year, MP3.com originally wanted to set up something with the Big-5, RIAA, but they wouldn't listen to them. So... instead they go ahead and do it... the Big-5 settle out/in of court, and now MP3.com has some sort of solution and permission. Kind of cool tactics really.

      So... first you don't get permission from the big guys because they won't listen to you. So then go ahead and do it, cause a lot of public Hoo-hah, and end up getting sued, and allowed to do it in the end anyways.

      However, they must have some deeep pockets to go through with this...

      Rader

    4. Re:Huh? by Znork · · Score: 1

      Hmm, but if they had a really really big CD-jukebox would it be ok then?

    5. Re:Huh? by mOdQuArK! · · Score: 2

      You're not kidding - and digging through legal records isn't my favorite way of spending time.

      You might take a look at http://fairuse.stanford.edu/ - they seem to have compiled a list of statues, judicial opinions & regulations which are relevant.

    6. Re:Huh? by WayneGayle · · Score: 2

      My understanding was that Beam-It software only provided MP3's for CD's users already had. It confirmed the users' ownership by having them place the CD's in and verify the serial number.

      It's much more secure than that. It would check different sections of the cd and compare it to what they had in their database. Heck of a lot better than just checking a serial number. If it checked random sections, which i think it did, you would have no way of hacking it as far as i can tell. You would have to have the cd for it to work, for at least a few minutes.
      -WG

      --

      "America, I smoke marijuana every chance I get."
    7. Re:Huh? by mindstrm · · Score: 2

      Simple. They did not have permission to copy and distribute the music in the first place.
      It doesn't matter that the end users already had the music, mp3.com still did not have, under the law, the right to make copies of the music and distribute it to people, *regardless of the terms they invented*

    8. Re:Huh? by Rader · · Score: 2
      I knew I shouldn't have been so lazy, and should have posted a reference. Sometimes I just figure everyone reads about mp3's as much as I do...

      Anyway, now that I'm at home, (not that surfing at work doesn't happen) I did find this article while doing a quick search on "MP3.com Loses".

      Briefly, it says that back on June 9th, MP3.Com will pay about $100 million to settle claims with Warner & BMG. The resolution permits MP3.Com to include songs from their labels in its Beam-It database.

      I also saw someone else post in slashdot today that this type of arrangement happened with 4 of the Big-5, with Universal not going along with it yet (obviously... we're in this message board right now because of the Universal lawsuit today). The person also mentioned that MP3.com should ignore Universal, and only go with the other 4 of the Big-5... And as they enjoy profits from MP3.Com's service... Universal might come crawling back, PAYING to have MP3.Com do the service...

      Well, I don't think they'll ever beg, but I sure hope something like that would happen! :)

      I will agree though... MP3.Com has some deep pockets to shell out around 400 million. The only thing I figure is that they've crunched the numbers on the advertising and hits. Just think, almost every song people play on their lists equals a hit. I'm also thinking that they've got some ideas to add to the service soon. Hell, they're probably going to get in bed with AT&T so people can listen to their collection over their cell phone --- or something else that inane. Probably they see themselves as the future standard.

      If you read the article I linked to, you'll see that MP3.Com had only (only?) 45,000 albums ripped & converted back in June. It was 25,000 back when I first heard about it. And now it's 80,000. Obviously, even while sued, they spent the time and money to keep on ripping.

      Rader

    9. Re:Huh? by Erasmus+Darwin · · Score: 2
      Granted, this could be hacked pretty easily.

      Actually, from the analysis mentioned in this Slashdot article, the BeamIt protocol was *not* easily hackable. It asked for a hash of a random part of the CD. Pretty much the only attacks against the system were external to the actual BeamIt authentication (such as beaming a borrowed CD or swapping BeamIt accounts).

    10. Re:Huh? by jerdenn · · Score: 2
      They did not have permission to copy and distribute the music in the first place.

      Actually, it could be argued that they did not copy the music - they merely provided tools to enable the end user to do so.

      jerdenn

    11. Re:Huh? by Griffone · · Score: 1

      They did not have permission to copy and distribute the music in the first place

      There is something called FAIR USE... MP3.com may not have had the right to copy this music, but the people who bought the CD's in the first place sure do... and so what if MP3.com contracts out storage space on their servers in return for a little ad revenue when their clients come to get their files?

      Unless we're now saying that making and storing MP3's is illegal...

      Does it really matter WHERE I store my MP3s? or for that matter whether I was the one to do the original ripping? I own the CD. Based on the legal crap on my CD's I can make as many copies for personal use that I want. Period. It doesn't matter WHERE I store them, or in what FORM I store them.

      Seems to me that since only people who owned the CD's could listen to them through MP3.com, MP3.com isn't doing anything but renting storage space and a little bandwidth... since when is that an infringement on copyright?

      Neil.........

      --
      I used to have a cool sig.
    12. Re:Huh? by Kanigit · · Score: 1

      Don't you think you could borrow a CD from a friend, put it in your cdrom drive, then give it back, and still be able to listen to the "beamed" cd? Just a thought.

    13. Re:Huh? by Twon · · Score: 2

      Ok, I'm going to be an asshole for just a second. "Voila" is the word used for that "poof!" effect. A "viola" is a stringed musical instrument. I've seen this in too many posts now not to comment.

  116. Re:Lesson learned: by NaughtyEddie · · Score: 2
    Jesus, so now I have to put "the opinions expressed don't reflect those of my employer" just to stave off dickheads like you? If you want to know Naughty Dog's relationship with Universal why don't you email me and ask, instead of showing your ignorance off to the world? Universal published Crash, they don't own this company, and they certainly don't own my opinions.

    Get a fucking life, Mr Whois. We all have to make a living somehow.

    --

    --
    It's a .88 magnum -- it goes through schools.
    -- Danny Vermin
  117. Feels wrong by ibot · · Score: 2
    So they used technology to save space but isn't it like they leased (without cost) space on their server to store music you already own. Guess they (mp3.com) might as well have removed the restriction and stolen some thunder from Napster.

    Founder's Camp

    --

    Founder's Camp
    News for non-Nerds. Stuff that matters.

  118. What about the artists? by macdaddy · · Score: 1
    I'm willing to bet Janet Reno's left nut that if this is upheld and the full amount was paid in damages (yeah right) that the artist would never see a dime of the $$. Go Courtney Love!

  119. How is this payment handled? by TBHiX · · Score: 1

    Title says it all. Is this to be payed in a lump sum by such-and-such a date, or is it amortized over a period? And in what form does said payment take?

    Additionally, if they appeal, is this payment frozen until the new decision?

    -TBHiX-
    Not particularly well-versed in the outrageous settlements granted under U.S. law.

  120. Re:Believe it ... it's same as radio. by Snocone · · Score: 2

    It wasn't public performance.

    Yes it is. 'Public' is not necessarily plural. Go follow the link and learn what words mean in this context.

  121. A Victory for Copyright Holders by Anonymous Coward · · Score: 2

    Thank God this Judge had some common sense. The advent of MP3 has been nothing more than a world wide conspiracy of THEFT of artistic rights from copyright holders. How dare MP3.com feel that they could wrench away control of an artist's work. The arrogance of it all makes me sick. Artists deserve the right to control their intellectual property, i.e., their art. Napster & MP3.com have been the #1 enemy of those that create by stealing those creations and giving it to those that feel everything in life should be free -- and making a buck to boot off that theft!!!

    1. Re:A Victory for Copyright Holders by Anonymous Coward · · Score: 1

      Dude, the artists don't have any rights!!

      The record companys of cds buy up all the copyrights to the artists works. The artists never owns the music and they only get back what the record company feel like giving them. The artists "intellectual property" isn't thiers!!

      Napster & MP3.com have been the #1 enemy of those that sell music, not the people that produce music. The only people bitching and whining about MP3's have been record company and people that own record companys.

      Get a clue, buddy.

    2. Re:A Victory for Copyright Holders by maraist · · Score: 4

      Thank God this Judge had some common sense. The advent of MP3 has been nothing more than a world wide conspiracy of THEFT of artistic rights from copyright holders.

      Come on moderators.. Mark this guy up as funny. You can entertain the general public, and you get better moderator-karma points because it's an obvious non-flaming opinion. :)

      -Michael
      --
      -Michael
  122. Re:You do not understand by Sloppy · · Score: 2

    Well, the horse you're quoting is the RIAA, not the judge, and it's quite contrary to the law as written. If the judge's opinion turns out to be based on the above statements, then Mp3.com's appeal should be pretty easy.

    Again, this assumes that mp3.com owns the CDs that they used to build their library. If they built their library by other means, then I am wrong.


    ---
    --
    As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  123. this sucks by ruebarb · · Score: 1
    As a musician who keeps his own mp3's out on mp3.com, it saddens me to know that they're probably going out of business, and I'm going to be forced to stash those friggen things on tripod.com homepages or something.

    Fair Use takes another blow to the skull. Kind of feeling screwed here. Thank you Universal, (whip snap!) for merging, (snap!) and wrecking A&M (snap!), and for not compromising and screwing over the consumer in general. (snap!) Thank you very much! - May I have another, please?(snap! snap!)

    --

    ----------
    ah honey, we're all resplendent - Bill Mallonee
    1. Re:this sucks by NaughtyEddie · · Score: 2

      Fair use my arse. We're talking about a company distributing copyright material without permission. You should be thanking MP3.com for knowingly violating copyright law and putting themselves, and you, into this position.

      --

      --
      It's a .88 magnum -- it goes through schools.
      -- Danny Vermin
  124. Re:You do not understand by Homburg · · Score: 1

    Hmm... But what about those companies that sprung up a while ago who would copy your vynl records onto CD for you? Of course, you had to send them your record for them to copy from - but I don't really see why that would make a difference. Say they had already copied the same record for someone else, but still had the CD. Would it be illegal for them to duplicate that CD rather than make a new CD from your own vynl?

    MP3.com provided the service of translating CD's to mp3s for you. The fact that they use one particular physical CD rather than another (i.e. the one they bought rather than the one you bought) is surely irrelavent.

  125. Sheesh by wbav · · Score: 1

    Does anyone else feel that this amount is completely unjustified, when one takes into account that because of the mp3s being out there, CD sales have increased? Okay it was a violation of copyright laws, but because you steal a CD at a store, the government doesn't bankrupt you. MP3.com did not ask people to pay to use their site and only made money by advertisements; as such doesn't this seem a little extreme?

    --

    =================
    Unix is very user friendly, it's just picky about who its friends are.
    1. Re:Sheesh by Stonehand · · Score: 1

      If you stole a single CD, that's theft -- a criminal offense.

      If you chose to DUPLICATE AND DISTRIBUTE its contents, and make money doing so, without permission, that's copyright infringement, a completely different civil offense. It doesn't matter whether it's to legal holders, because it's YOUR (the distributor's) action that matters here. Illegally providing a service to somebody who legally (arguably) could do the same (rip MP3s of a CD he owns, barring terms that say he can't) is still illegal.

      Or, to put it other terms -- I could, say, give an 18-yr-old some money to buy me a 6-pack, but in a state w/ a drinking age of 21 and pretty strict laws on possession, that 18-yr-old would be vulnerable to an arrest for possession. It doesn't matter that the end-user would be me, and that it'd be perfectly legal for me to have gotten the 6-pack myself; it's illegal for the 18-yr-old to do so. To make it closer to MPPP, worsen the 18-yr-old's case by having him or her make frequent beer runs, earning money when doing so.

      Also, keep in mind that MPPP as a company currently has a market cap greater than than half a billion, with a fairly substantial amount of cash. It seems appropriate to punish a company harshly for apparently believing that it had the right to violate IP laws just because it suits their business model...

      --
      Only the dead have seen the end of war.
  126. Get to the end game by presearch · · Score: 1

    I think there are two possible outcomes that the industry-fed lawyers and industry-fed politicians are heading towards: 1) A substantial Federal income tax will be levied on all citizen/consumer/pirates/scum (that means you) which will be deposited directly to RIAA/MPAA members (minus the gov't payoff) 'cuz you're gonna break the law eventually (or break the laws that haven't been written yet). or 2) For the common good of the nation, music and all other forms of media will be made illegal because citizens/consumers/pirates/scum (that means you) are just going to do naughty things eventually. Besides, if you are sitting around listening to that subversive noise, you are not being a productive citizen and maximizing profits for the mega-corps that, by judicial decree, now own you, your time, and your thoughts. Plus, item 1) will be implemented anyway to compensate for loss in income to the mega-corp. This would be a whole lot cheaper than wating resources on the media protection arms race and by implemeting 2), the corporations can be profitable without producing anything, which obviously, is the end game they are working towards. --

  127. And who exactly is responsible for paying $118M ?? by candiid · · Score: 1

    What happens when this doesn't get paid? Sounds like a pretty pathetic scare tactic by the judicial system and RIAA. Will this get resolved with $118M worth of banner adds? Even if they bankrupt the ohh so threatening business, all they accomplish is slowing down development.

  128. Re:A good verdict by Sly+Mongoose · · Score: 1
    The artists don't see enough of the profits from a CD. And that's why we've flocked to Napster and Gnutella and the like.

    The rest of your post made sense, but I have to comment on this bit:

    It is true the artists don't see enough of the profits. It is true that I (and probably most other people) would prefer if the lion's share of the money went to the artist instead of to the fat-cat middle-men.

    But by and large, people have not flocked to Napster and Gnutella because of the profits (or lack thereof) seen by the artist. People have flocked to N and G because of two reasons:
    1. It's convenient
    2. It's cheap

    And to hell with the artists profits, because using Gnutella/Napster doesn't alter the profit-picture for the artist one little bit.

    If they want to improve their financial position, the artists had better start bypassing the middle-men. When I do buy music, I'd much prefer to pay the money to the artist, direct. But in return I want them to send me a CD direct, and most artists are not set up to market their own disks. And ten years ago it would have been impractical for them to do so, but now...
  129. Reparations by MWoody · · Score: 1

    They should send the money with PayPal...

    ^_^
    ---

  130. Re:What suit is this for? by Sly+Mongoose · · Score: 2

    The RIAA went ape-shit over them sending electronic version of CD's they owned in streaming form to consumers.

    Streaming audio to those consumers who have paid for it is obviously where the industry is going. The simple solution to the RIAA's problem of people ripping/sharing CD's is not to sell CD's any more! Instead, the consumer will buy a license to stream the audio off some server whenever they like.

    Now whoever offers this service will make a mint of money as people pay various monthly fees for various "packages" as per cable TV, etc. And the RIAA obviously wants to be the only game in town when that day comes, so you can count on them jumping hard, onto the spine of anyone who tries to set up any service similar to this.

  131. Know thyself. by presearch · · Score: 1
    It surprises me that so many posts here think that MP3.com was breaking the law.
    Many of you are supposed to be the tech wizards of today but are as clueless as the Judge is when it comes to bits vs. atoms and the fundamental change that is happening around you.

    Persons that come down against mp3.com in this thread (some quite brutally) show that for all that web site building they're doing, they still don't get the point, the essence, of what's going on here as society digitizes itself.

    The laws need changing. Your point of view needs changing as well. --

    1. Re:Know thyself. by Chris+Johnson · · Score: 2
      Look, mp3.com _was_ breaking the law. It's not a question of formats, it's a question of permission.

      Would you feel the same way if Universal got to copy my 'indie' albums which I own, and broadcast them out to people, making it seem as if they are 'Universal' albums?

      I concede that the my.mp3.com service is relatively innocuous- I would have a 'wait and see' attitude if even Universal tried to do something like that with my stuff (a 'timeshifting', 'spaceshifting' sort of thing). However, enough of that stuff, or the wrong sort of 'fair use' (FOR profit, IMPLYING an association that doesn't exist, WITHOUT consent of any sort) and Universal starts to look like the GATEKEEPER, and people looking for 'Rain Dragon' (currently legally available only on Napster! :) ) are led to believe they must go through Universal to get it.

      That, I would object to, because I hate the major labels thoroughly. So I can't be _too_ protective of my.mp3.com: so much of what mp3.com was doing was good and legitimate. The ripping of all those major label CDs was not, and they're suffering the consequences of their choice to not attempt to communicate. They have also made the terms for any FUTURE spaceshifting site much, much worse by their actions. If they hadn't changed their artist contract I would _still_ be with them even so- but I have never felt my.mp3.com was a sensible move. The idea is good but so mishandled! You can't run around doing stuff like that without talking to the content producers. Even if it's just a bunch of corporate droids, it's _still_ wrong not to ping them about what you're doing with 'their' content.

  132. Re:This is simmilar to... by Sly+Mongoose · · Score: 1

    If you were to meet someone on the street, and they asked the way to the nearest bank. They then
    left you, and robbed that bank. It's not YOUR responsibility.


    But if they came and asked you for plans to the bank and dynamite for the vault and lockpicks for the door and an electronic combination-cracker and you gave them all this stuff..... Wanna bet you'd be liable?

  133. Re:Could this affect Napster case? by studerby · · Score: 1
    IANAL, but it seems to me that this case might be referred to as precedent in the Napster case.

    IANAL either, but I know a little about copyright. The data format has absolutely zero to do with the cases (either of them). Damages come in two flavors: actual and statutory (potentially plus attorneys fess, for either). Actual damages are what the copyright holder lost plus what the copyright infringer gained, while statutory damages are set by the court within a sort of fixed range per work infringed. The range moves up when a court finds that an infringement is "willful" and moves down when the court finds the infringement is "innocent". The range for statutory damages is set in 17 USC 504, paragraph c, with the "normal" range at $750 to $30,000, with the ceiling for "willful" set at $150,000 and the floor for "innocent" at $200, all per work infringed.

    In the MP3.com case, Universal did not request actual damages, but elected statutory (it's either/or and the copyright owner must choose). The judge had already found "willful" infringement but apparently didn't see the need to set the punishment outside the normal range, setting it at $25,000 per CD.

    For Napster, the total dollar amount of the MP3.com award isn't relevant, the benchmark is the "per work" part of the award. In other words, the precendent for Napster is $25,000 per CD. However, Napster didn't do anything to attempt to limit usage of the service and the little evidence of intent I've seen suggests that Napster intended to create an unregulated sharing service. If the appeals courts agree that they're liable, I'd expect a higher per CD damage award, on more CDs. However, I think Napster has a chance to win an "ISP" defense based on on appeal and there's also a fairly good chance of winning an appeal on the issue of "contributory infringement" - I think Judge Patel is stretching the theory of contributory infringement to get a particular result and I'm not sure appeals courts will agree that it stretches that far. There are also other legal "outs" for Napster, this brief (PDF) lists several potential good ones.

    For MP3.com, the design of their service creates a very different case and any chance of winning on appeal will depend on getting court to look at the end result of the service (which is itself lawful), and not the implementation details.

    --

    .sig generation error:468(3)

  134. Lesson learned: by Enahs · · Score: 2

    Do NOT try to go into an honest business distributing music in the MP3 format. It will only get you sued into oblivion. Instead, trade MP3s illegally.

    Or so this case would make it seem.

    --
    Stating on Slashdot that I like cheese since 1997.
    1. Re:Lesson learned: by NaughtyEddie · · Score: 2
      What did they hope to gain?

      Well, let's see. I wonder how rich the guys who started MP3.com are now. If MP3.com has paid out $1 million in fees to their signed artists every month since June, I wonder how much the president has in the bank right now.

      They knew, they just knew they could get away with it for long enough to rake in the $$$$s. Do you think they care now whether or not MP3.com lasts another year?

      --

      --
      It's a .88 magnum -- it goes through schools.
      -- Danny Vermin
    2. Re:Lesson learned: by NaughtyEddie · · Score: 2
      This isn't about an interpretation of the law, it's about the law exactly as written. Copyright law forbids the distribution of other people's copyright work without permission. MP3.com distributed other people's work without permission. It's as black and white as it gets. The law isn't about right and wrong, it's about whether or not laws are broken. In this case, they were.

      Even Napster has more of a case than MP3.com. At least Napster didn't put those MP3s up their themselves. With Napster, the plaintiffs actually had to use some imagination to find something to sue them for.

      Anyway, I'm not writing them off as idiots and crooks, I'm writing them off as idiots or crooks. Either way, they're looking pretty fucking stupid now, aren't they?

      --

      --
      It's a .88 magnum -- it goes through schools.
      -- Danny Vermin
    3. Re:Lesson learned: by Starselbrg · · Score: 2
      I think what you are saying sets a bad precedence. You're saying that anytime a company thinks of an idea that might be breaking a law as based on an interpretation of the law from an army of lawyers from a very large comany that it competes with, that company should through the idea in the bit bucket. If all business followed this rule, we'd never ever have anything new.

      Starting a new business is about thinking of new ideas, implementing those ideas, and taking risks. MP3.com's actions were in a huge gray zone. This was most assurdly not a black and white case. They took a risk, and tried to create something that they thought would be useful , fun, and perhaps make them money.

      I think they were successful, and I think you're being a bit short-sighted to automatically write them off as idiots and crooks.

      --
      Got HTML? Want LaTeX? Try html2latex
    4. Re:Lesson learned: by NMerriam · · Score: 2

      Trade? What trading took place?

      They took advertiser's money and delivered unlicensed music to anyone who could "prove" they owned (or borrowed) the CD.

      I'm an investigator. I followed a trail there.
      Q.Tell me what the trail was.

      --
      Recursive: Adj. See Recursive.
    5. Re:Lesson learned: by La0tsu · · Score: 1

      Martin Luther King Jr. broke the law. Rosa Parks, too. Ghandi. George Washington. What a bunch of dishonest people.

      I know you're going to say you can't say MP3.com is the same. I agree that the law in question is not as gross a violation of human rights as the laws these folks willfully disobeyed, but that doesn't mean it isn't an unjust law, and it doesn't mean there isn't a parallel.

      I fear nothing so much as living in a country where the citizens blindly obey every law because it's the law. If that's not a recipe for oppression, I don't know what is.

    6. Re:Lesson learned: by NaughtyEddie · · Score: 1
      There's always an ignorant fuck on Slashdot when you want one. Well done! Please make more posts on topics about which you know nothing. Slashdot will love you for it. After all, you don't really need to understand what "owning" music means, or even what "distribution" means. You can just sit in your little ivory geek tower and talk bullshit about the way you think the world should work, while the rest of us get on with our lives.

      Fuck you, too.

      --

      --
      It's a .88 magnum -- it goes through schools.
      -- Danny Vermin
    7. Re:Lesson learned: by NMerriam · · Score: 1

      They WERE trading MP3s illegally. That's why they have to pay the damages...

      I'm an investigator. I followed a trail there.
      Q.Tell me what the trail was.

      --
      Recursive: Adj. See Recursive.
    8. Re:Lesson learned: by NaughtyEddie · · Score: 2

      Honest business? They broke the law. That, in my book, is not "honest business".

      --

      --
      It's a .88 magnum -- it goes through schools.
      -- Danny Vermin
  135. Re:Judge rules Xerox to pay $118e9 to book publish by holon67 · · Score: 1

    heh. ditto. right on. etc. its raining in the desert.

  136. Darn! by Daveamadid · · Score: 1

    Too bad that Microsoft didn't aquire mp3.com sooner. Then that possible $3 billion would be coming out of Bill's pocket.

    I know it's not that much to him, but it'd still hurt at least a little.

    --

    --Dave
  137. Re:No kidding by Rader · · Score: 1
    Well, don't worry, this BEAM-IT thing was just a side project. Sure... a pretty big one, but they still have the 100,000 unsigned artist thing going for them.

    Rader

  138. Re:And MS gets a $1 million fine for monopoly abus by radja · · Score: 2

    ah.. but whereas MS only fucked some consumers up the ass without lubricant, MP3.com actually had the NERVE to have tried to bend the revenue-stream of a company. Can't have that.. how else are politicians going to survive if they can't get their money from industry?

    //rdj

    --

    No one can understand the truth until he drinks of coffee's frothy goodness.
    --Sheikh Abd-Al-Kadir, 1587
  139. Re:WOW...new term: WWMD! by Thr34d · · Score: 1

    They'd probably kick an ass or two! That's what Microsoft would do!

    --
    -- This space intentionally left blank.
  140. Re:Sending us a message?! by Another+MacHack · · Score: 1
    And I agree with previous messages that there really isn't any indication that any copyright infringement ever took place.

    Sure there is--that's what this trial was about. Maybe you mean that you don't think what they did should be illegal, or that you think it wasn't morally wrong? They were distributing music without the permission of the copyright owner. It may have been logically equivilant to the CD owners exercising time and space shifting rights, but the physical act was different, and unfortunately the law makes a distinction in this case.

  141. Re:Sending us a message?! by RickHunter · · Score: 1

    This whole situation is just wrong, and MP3.com is getting the shit end of the stick.

    Well, yeah, what do you expect? Either the recording industry was mad that MP3.com thought of it first, or their lawyers smelled money and jumped.


    -RickHunter
  142. The total verdict is TBD. by eclarkso · · Score: 1

    According the NPR news, the judge just ordered MP3.com to pay $25,000/CD. UMG claims MP3.com copied about 10,000 CDs while MP3 says it's less than 5,000. So the total amount to be paid will vary according the number of CDs determined (by the judge?) to have been copied.

  143. Content producers by Alomex · · Score: 1
    I pressume most of /. readers are producers of intelectual property in one way or another. Some do it for a fixed salary (aka employees) and others sell the product of their work on the market.

    Surprisingly, the majority of the opinion here seems to be against copyright protection for music and patent protection for new inventions.

    In real life, most peoples wages depend on copyright. Even RMS uses copyright protection to enforce its GPL terms.

    That doesn't excuse stupid patents from the USPTO or judges that issue brain dead judgements covering all benefits from copyright, which is not what the law says....

    1. Re:Content producers by eclectro · · Score: 1

      You (unitentionally) bring up some very interesting questions.

      First, even though software carries a copyright notice, that's not really what manufacturers want to use to enforce protection to their product, is it??? They want to be able to use that EULA, or license thrown in with the shrinkwrap (or both) and force a revised contract (the copyright on the package being the first contract already given to them automatically by congress) between themselves and the enduser. Even though technically the software (by the license) just 'rents' the software to somebody, who even reads those EULA's anyway??? They don't have a choice on the software. There's not a store in the world that gives a refund for an open box of software. And look at windows refund day, did Microsoft ever hand out refunds (they probably didn't want to set a precedent anyway)??? The average person doesn't think twice about selling a used software, and even I pick up stuff at the thrift store. My point is this - you have a good business - and haven't been relying on the strength of copyright to do so, or restricting the end user in how they use your end product. So why do software companies feel the need to?? Are they looking for more revenue by making a contract (EULA) more restrictive than what ordinary copyright protection provides?? Look at the protection Universal Music Group has gotten with ordinary copyright (no EULA). I think the new EULA with windows 2000 requiring people to by an additional license if they "ghost" their hardrives is an example of this.

      Second, as programmers, many of us in reality are "content producers" and artists in our own right. Why don't we get a royalty. Is it because we are nice guys, pushovers, or nobody has given it thought? I'm not saying whether it's right or wrong to get royalties, or even economically possible to even ask/get one. Just that I think it hasn't been thought about too much.

      Third, many of us have seen the heat that large scale content producers can put on a few to protect their "IP" rights. If we are so 31337, why don't we find a way to charge them a royalty for using our networks and our technology to distribute their content for them. Right now they don't give a rat's ass and don't want to have any of their content on the web, but someday they will. And the will want it bad. So let's incorporate some "embrace and extend" technology that wraps around their content, and charge them for it. Let's give the money to the Electronic Frontier Foundation to help defend somebody when they get pissy.

      --
      Take the cheese to sickbay, the doctor should see it as soon as possible - B'Elanna Torres, "Learning Curve"
    2. Re:Content producers by raygundan · · Score: 5

      There is some truth in what you say, but you miss some important points. First-- developers like myself are paid by salary, not through some enormously complex royalty scheme like the record industry. I am paid the same as long as I do my job. There is no need for me to produce a "hit", and hence no need for a gigantic internet-programmer-record-label system to promote my work to the masses. Why don't musicians get paid salary? Why are they allowed to collect money from their works a zillion years after they die while my work as a programmer is of no use to me after I write it in most cases? I do not depend on copyright for income. Nor does my company. We depend on the ability to sell our custom software services to other people.

      Second, most of my work is web programming that is quite easily available for download and study against the wishes of my company already. That's how the web design works-- my DHTML, javascript, etc... are all right there in your browser whether my company likes it or not.

      Should we sue browser makers for including a "view source" button? All of our pages are copyrighted! What about the "save image to file" button? Or the ability to save the web page source to your hard drive? We are a profitable and quickly growing web company with hundreds of employees and 5 or 6 offices (I can never remember), yet our copyrighted works sit freely downloadable for the entire world.

      Your argument that wages depend on copyright does hold some merit, but our copyrighted works are totally unprotected and my mom could "pirate" them with a mouse click, yet we have a very successful business model.

  144. All this... by SomeOtherGuy · · Score: 1

    Because the poor record companies are sure that I was borrowing my friends CD's and beaming them to mp3.com and listening for free....I mean I can at least see where they are going after Napster because of BLATENT pirating going on...But my.mp3.com was as legit as possible....I mean you had to own the CD to be able to listen (unless you wanted to break the law...and at that point their is no stopping anybody...I mean you could just rip the CD the old fashioned way...)

    And further more, the best feature was the fact that you could actually purchase REAL CD's from the partner vendors and then be able to listen to them while you were waiting for the Snail Mail to drop off the shrinkwrap....(How is that not a win-win situation for the record labels, vendors, mp3.com, and the consumer!!!)

    Basically all this says to me is that the RIAA says fuck the consumer....

    Note to RIAA: None of my friends even own any of the CD's that I prefer...So buzz off...

    The record companies still claim they will give ME the (ex)consumer a legal way to partake of technology -- but by smashing one of the only companies that came up with a feasable solution where everyone in the food chain could possibly flourish -- I know that it is just a blatent lie...I think that my.mp3.com was only a few months away from revolutionizing how CD's were purchased online, (hell, I bought 10 or 11 CD's from their partner sites, in the same timeframe that I usually would have made it to the brick and mortar's only 1 or 2 times -- only to find that their poorly stocked shelves did not contain anything worth listening to.....)

    Sad day...

    --
    (+1 Funny) only if I laugh out loud.
  145. Mp3.com, Napster and the RIAA by Mystickrs · · Score: 1

    You know I have yet to see a difference betweer napster, Mp3.com and the radio? The radio plays songs all the time that we can download yet they are not being sued. What the RIAA doesn't understand is that all they are going to do is piss off most of the folks out there. These services are great they allow me to listen to things before I buy the cd. There were statistics done that a large percentage of users that used these services only kept the songs for about a month I believe it was before they deleted them and either bought the CD or didn't listen. Yes you will always have the ones that want it for free. But you know what? You can't stop them. Even if these sights become illegal people will always find a way.

    --
    It is better for everyone to think you are a fool then to open your mouth and remove all doubt. ~Shakespear
    1. Re:Mp3.com, Napster and the RIAA by GuNgA-DiN · · Score: 1

      Yeah, but read Courtney Love's rant again... you forgot about that magical thing known as "payola". All the record companies deny it but, they use third parties to pay the radio stations for airplay. So the radio is not really free - they get paid by the record labels and advertisers. That's why you hear Britney Spears 10,000,000 times a day.

  146. 'Bars' & 'dance clubs' pay royalties by ProfDumb · · Score: 1


    I don't know what world you live in, but my people call them bars or dance clubs.


    Yes, they are called bars and they are also legally called on to pay royalties on music they play -- there is a standard contracting arrangment.

  147. Re:You do not understand by Another+MacHack · · Score: 1

    my.mp3.com wasn't making copies for personal use. They were making copies to distribute to others as a business providing a service. I'm on mp3.com's side on this, but it's not quite the same thing as making a copy for personal use.

  148. Katz! by dmuth · · Score: 2
    Katz had urged Rakoff to award it up to $450 million because MP3.com had copied between 5,000 and 10,000 of the company's CDs.
    I can't help but wonder if this Katz is related to Jon Katz or not? :-)
  149. Right, My.MP3.com was lawsuit bait. by sulli · · Score: 2
    And then mp3.com did something incredibly stupid: they started their my.mp3.com service.

    Exactly. If you think about it, really, this is much more willful infringement than Napster: they ripped the CDs, put them on a jukebox, and offered them to the public without permission as part of a commercial service with ads.

    I would really like to know why they played into the RIAA's hands so foolishly. The only thing I can think of is that they may have wanted to use this to kill SDMI dead, and they may have figured that they'd get all the labels to settle. But it was a pretty dangerous thing to do, when they really didn't have to.

    sulli

    --

    sulli
    RTFJ.
  150. Is this based on revenue earned? by maraist · · Score: 2

    IANAL. IF MP3 has done anything wrong, it is from their profiting off of the illegal distribution of copyrighted material. In that case, I can see their having to pay out any earned [advertisement] revenue's based on the market they've created.

    Somehow I'm doubting that they really earn $400 million or even $100 million purely based on these advertisements. I could be wrong, I don't know how much advertising pulls in these days.

    --
    -Michael
  151. A good verdict by Cannonball · · Score: 2
    Places flame suit on
    This verdict is a good thing. It will make people realize that if a company or individual (ie Napster) does something, they can be held responsible for it, however if society at large does something (ie Gnutella, Freenet) then it will become a trend.

    There's no question to me that the original intent behind Napster was to pirate music over the internet. I make no value judgment here, that's the truth. The supplemental benefit of getting some unheard artists a quick listen is beside the point. So now people use Napster as a "resource" to download music before they buy it...but this is something that's already available via real audio or other such media files on various online resale merchants. sarcasmEither that, or god forbid, you might actually have to go to a record store! My lord no. Please. Stop this now! /sarcasm

    My problem with Napster is actually my problem with the RIAA (who by the way are worthy of a fate far worse than death). The artists don't see enough of the profits from a CD. And that's why we've flocked to Napster and Gnutella and the like.

    This verdict is a good one. It will force the masses to the free versions of Gnutella and such. It will still force the RIAA to reconsider micropayment schemes and other such problems of intellectual property, but if it makes us think, then it is a good and fair verdict.

    --
    So there I was. Naked. In a refrigerator. With a potroast on my knees. Smokin a cigar. That's when it got REALLY weird.
    1. Re:A good verdict by Cannonball · · Score: 1

      Oh God... I responded WAY offtopic...I saw MP3 and immediately assumed Napster. Shit. Oh well. I tried.

      --
      So there I was. Naked. In a refrigerator. With a potroast on my knees. Smokin a cigar. That's when it got REALLY weird.
    2. Re:A good verdict by jafac · · Score: 2

      The RIAA's idea of micropayments is $5 a track to download singles. MP3s, not raw audio files from the CD, so the quality isn't even the same.

      if it ain't broke, then fix it 'till it is!

      --

      These are my friends, See how they glisten. See this one shine, how he smiles in the light.
    3. Re:A good verdict by Cannonball · · Score: 2
      That's the RIAA's idea. I don't suggest we listen to them, in general. However, I'd pay a buck for most singles out there. 50 cents for others. I'd pay for the music. It's simple. If the RIAA is gonna make me buy a CD or pirate it, then I'm afraid I'll still buy CDs, because I don't like pirating. Maybe it's because I'm a musician. Maybe it's because I have ethics...I dunno.

      --
      So there I was. Naked. In a refrigerator. With a potroast on my knees. Smokin a cigar. That's when it got REALLY weird.
    4. Re:A good verdict by Cannonball · · Score: 2

      test

      --
      So there I was. Naked. In a refrigerator. With a potroast on my knees. Smokin a cigar. That's when it got REALLY weird.
    5. Re:A good verdict by Nept · · Score: 1

      whatthehell...the sig is good.

      --
      "Teachers leave us kids alone ..." - Roger Waters, Pink Floyd
  152. Re:Cheese by Anonymous Coward · · Score: 1

    pfft, if you only knew.

    Behold, the power of Grits!

  153. Re:I agree by Ender+Ryan · · Score: 1

    I didn't think about it that way. The Big-5 could create their own service that did the same thing as MP3.com, and then that MP3.com's service would be damaging to their own service.

    However, damage isn't done UNTIL the "Big-5" create their own service.

    In any case, this sure is a whole lot of bullshit them being AWARDED so much money for this. They should have received compensation for legal fees and for having to waste their time, and that is all. No damage was done.

    But what can we do? I already don't buy ANY music by artists that are signed with any RIAA labels. And on the occasion that I do... nevermind, I haven't for a long time.

    --
    Sticking feathers up your butt does not make you a chicken - Tyler Durden
  154. Sigh. by Auckerman · · Score: 2
    Precedents are a funny thing. Even when a company can, in the long term, earn more capital via licencing agreements they will still sue so that they set a precedent. Now everyone will fear the wrath of UMI.

    This is the same logic for going after 2600 in the MPAA lawsuit. Yeah DeCSS is EVERYWHERE, but when they release the successor to DVD, they will have a precedent to stop any reverse engineering of it. Keeping in mind, of course, they had a better chance of winning against 2600 (those EVIL hackers who do such things as posting security problems in a public forum, just like Microsoft does over at Bugtraq) than say the NYTimes. Even wonder why news organizations weren't in the lawsuit? They have better lawyers.

    --

    Burn Hollywood Burn
  155. Re:You do not understand by lithis · · Score: 1

    I'm allowed to copy CDs onto my disk drive. What's the difference?

    from what i've heard, no, you're not allowed to copy cds onto your hard drive. you're not allowed to make a copy of a cd in your cdr drive. you are, however, allowed to make copies on cassettes and in component cd writers designed specifically for audio cds.

    unfortunately, i don't know the law that grants/denies these rights (perhaps the home recording act) and i don't want to look it up right now.

  156. You do not understand either by A+nonymous+Coward · · Score: 2

    Mp3.com did NOT rent out what they had "copied". You had to have proved you had the CD in your own little ocmputer, or had bought the CD from one of their partners, before you could listen to mp3.com's CD.

    Let me repeat that: You had to have your own copy of teh CD before you could listen to mp3.com's copy.

    So where's the rental? Where's the theft?

    --

  157. 118 million or 250 million? by jim.robinson · · Score: 1

    WSJ and the FoxNews article are listing the award as 250 million.

  158. Wrong about royalties... by rotor · · Score: 1

    There's a fundamental differance between what radio does and what mp3.com was doing. That being that radio broadcasts to anyone within listening difference, regardless of whether they have the CD or not. Mp3.com required the listener to have the CD. Therefore, a better similarity would be comparing it to using the actual CD rather than the radio. If you're listening to the CD, no royalties are paid (after the initial payment to buy the disc - which has already been paid in this case).
    The only problems with the mp3.com technology that should have landed them in legal trouble would be if they put no effort into security. Having never tried to crack it myself, I can't say one way or the other. Another potential hotspot would be that people could borrow a CD from a friend once, throw it in the computer and make mp3.com believe that they owned it. These two problems could (notice I don't say "would") lead to lost sales, but not to lost royalties.

    --
    Addlepated - punk & metal
  159. Stories Not Matching? by nick_davison · · Score: 1
    The argument the record companies keep giving, to sound honourable is that it's "To protect the artists."

    The payment is for percieved (the MP3.com lawyer has pointed out that they didn't have any actual evidence whatsoever) lost earnings. I'd be curious to see if ANY of the money makes it to the artists on the label and how the label plans to make that split?

  160. Given Seagram's origin, this is REALLY FUNNY! by crovira · · Score: 1

    Seagram's was a small distillery in Ville LaSalle, Quebec, Canada until they hooked up with rhum runners for the duration of the prohibition.

    My father worked for the Ol' man Seagrams back then, for the princely sum or $37 even weeks and $42 odd weeks and my mother still has the original architectural plans for the expansion required by the orders of booze coming from Capone, Lanski et alia.

    This is his grand son's shame and a sham. So much for his motivation. He doesn't care about this as anything but a white-wash on gran-pa's past.

    Now the only recourse all the artists who were on MP3.com will have is to start a class action suit against Seagrams & Universal for record deals (with record releases,) because a lot of them can't get their music out to the public any more.

    The law is stupid enough to do it too. Its a double-edged sword and all these idiotic retrograde groups are falling on it.

    The MPAA and RIAA have managed to make linking illegal, peer-to-peer file sharing illegal and don't get me started on the Millenium Copyright Act... Well if they can get it enforced anyway. (Will MP3.com relocate to SeaLand?)

    Eventually, the industries will realize that their "representative groups" and industry associations, those intellectually-challenged neo-Luddites that have been against every innovation since the player piano roll, the reel-to-reel tape, cassette, VCR, DAT ad nausium, have cost them millions at every turn.

    You don't fight technology, you figure out how to make a buck from it. You know it won't last for ever. But instead they're trying to command the tide, to put the genie back in the bottle, to un-invent teh atom bomb, the hand-gun or the pointed stick.

    It doesn't work that way. Its never worked that way and its not about to start because somebody's ashamed of what his gran-pa did for a living. Bigger and better have tried it and failed.

    Real criminals will keep ripping them off, easily in the case of the MPAA since the MPAA seems to be too stupid to improve their encryption but instead wants to bury all our heads in the sand instead, knowing that you can write a virus, bring down half the mail servers on the planet cause billions in damages and not even come to trial.

    The only people they are hurting are their legitimate clientelle. And I now ABSOLUTELY REFUSE to buy or see, read or hear anything by produced Universal or drink any of Seagram's booze EVER AGAIN.

    I don't need to be regarded as a criminal simply because I'm alive.

    --
    MSBPodcast.com The opinions expressed here are my own. If you don't like 'em... Think up your own stuff.
  161. Re:read more carefully by AstroJetson · · Score: 1

    Ahhhh, I see.....yes that *is* silly. Apologies for being dense.

    --
    Admit nothing, deny everything and make counter-accusations.
  162. Facing the Music by TM22721 · · Score: 1

    If MP3.com is to be martyred to teach the rest of us a lesson, the attorneys had better be prepared to shut down the other web souces as well. Most software providers are not intimidated by this action and will continue to distribute their client software which makes server based mp3 files unnecessary.

  163. Just goes to show you by AbbyNormal · · Score: 2

    why a legal webcasting system will never be made unless you sleep with the RIAA. The RIAA is really silly, since all of the publicity about getting free MP3's via these websites have been made, more and more Joe Sixpack people are finding out where to download these programs.

    Message to RIAA: Lawyers and these silly court decisions are sucking you dry!

    --
    Sig it.
  164. Woah, check this ASCAP thing out!!!!!! by Rader · · Score: 2
    You won't believe what I just found!? ? !!

    I just saw this site called Ace-MP3. They actually sell CD-R's of MP3's on it. They have 12,500 albums to choose from (and we're talking about good ones, and 'copyrighted' ones too)

    You can mix and match albums. It costs $25 for 1 CDR, (about 10 albums on that CDR they say). However it comes down to about $5 a CDR if you buy enough of them.

    Check out the stats: 12,500 albums, 550 GB!

    AND they claim that they're paying ASCAP licensing fees, so it's all legit! I can't believe it. If this is true... why haven't we heard of this place?!!! I can't believe it, personally. Coming from Russia, makes it less believable too, but they sure are acting like it's the real deal. I'm interested in any info anyone has!

    Rader

    1. Re:Woah, check this ASCAP thing out!!!!!! by sdo1 · · Score: 1

      Right... from their FAQ. Legit, huh?

      Q: Where is your company located?

      A: Our main office is located in Praha, Cheh Republic. There're also offices and production facilities in Kiev, Ukraine and Saint-Petersbourg, Russian Federation.

      --
      --- What parts of "shall make no law", "shall not be infringed", and "shall not be violated" don't you understand?
    2. Re:Woah, check this ASCAP thing out!!!!!! by rsborg · · Score: 1

      This is too good to be true... can anyone actually say that they bought and received from these guys?

      --
      Make sure everyone's vote counts: Verified Voting
  165. They should refuse. by chrislike · · Score: 1

    At this point, it is time for the internet community, or at least those who are being persecuted, to refuse to play the game anymore.

    The courts have largely depended upon citizens and companies willing cooperation. Granted, with a court order, the assets of a corporation can be seized, but what if said company has no assets within the United States? Then the government would be reduced to seizing the property of a "person" that does not exist within its boundries. While this can certanly be done, even these United States would not sit for it for very long.

    That which exists in only a cyber media does not and cannot fall within the jurisdiction of a land-based government.

    surely, you would say that it is these courts that own the bat and ball and make up the rules ... but it is our backyard, and we are the players. Without our willing cooperation, they are powerless. They rule with the consent of the governed, or in the very least without the governed being actively agianst them.

    They may stop MP3.com, though the judge has issued a ruling which violates both the principles of copyright, and the meaning of fair use.

    From here, we know what is coming. And we have two options. We can either sit idly by and watch events unravel to determine the course of our very lives, or we can refuse to play the game. By refusing, we need merely not admit to the existence of laws which we feel immoral, perhaps even ignore the existence of the US government itself.

    Too bad I am posting this after several hours discussion, i doubt that anyone, even the moderators, will read this post.

    Chris Nichols

  166. Could this affect Napster case? by daBum · · Score: 1

    This can only mean bad things for Napster...

    "Well you see, Your Honor, in a previous MP3 related case the defendant was found guilty of damages greater than $100 million..."

    IANAL, but it seems to me that this case might be referred to as precedent in the Napster case. (I know, MP3.com was hosting files, Napster wasn't, but just because the educated majority of slashdot readers know the difference doesn't mean the US Judicial system does.)

    --
    I am dyslexia of borg - your ass will be laminated.
  167. What suit is this for? by peterdaly · · Score: 1

    It is not clear which suit this is for. I know they have at least a couple suits going against thm right now, one of which I belive is completely bogus, but they will lose.

    There is/was(?) one case again them for the myMP3.com "service", where cunsumers had to prove they owned the CD before they were given access to the music. The RIAA went ape-shit over them sending electronic version of CD's they owned in streaming form to consumers. The consumer had already proved they had possesion of the physical media!

    Hope this article is not about that case.

    Looks like it may be time to start some organized site to politically fight these media giants (RIAA/MPAA,etc.) I have already written my representitives. There has to be a way we can be heard as a group. I know many of you, like myself, are deeply concerned about these issues.

    -Pete

  168. Perfect payment plan. by Orclover · · Score: 2

    With how sick i am of hearing about mp3 distribution sites losing to music megaindustry in general i think they should gather about $118 million in pennys and air drop them all from half a mile up over the recording studios. Dont think the music industry will ever ask for another cent after that.

    Yet despite all the controversy i still to this day have no trouble finding a MP3 or a copy of DeCSS on the internet, glad to see the legal system is as effective as always.

    -its not a rule, until somebody breaks it too many times

    --
    I am Jack's complete lack of surprise. -Fight Club
  169. Just another pissed off judge by krazyglu · · Score: 1

    Reading the article, I think that everyone should have found the following lines disturbing: In making his ruling Wednesday, the judge said it was necessary to send a message of deterrence to the Internet community to prevent future copyright infringements. "They need to understand that the law's domain knows no such limits," said Rakoff. What does that say about the current state of affairs in our legal system, not to mention DeCSS, (well, maybe it's not legal for me to do that anymore). In my opinion this is just another judge who is ticked off at the younger generations cause they have the balls to change things, not to mention they don't need the manual to figure out point and click. Just keep supporting EFF

  170. Re:Believe it ... it's same as radio. by malfunct · · Score: 1
    But is it a public broadcast? Since the internet works by sending the data from 1 storage source to 1 user. I think someone needs to press for clarification of points like these. I think the consumers are losing alot by being so limited in where and how they can listen to the music the bought the rights to listen to. I can honestly see this whole case spinning off into a future "one cd one device" type of law where you have to buy a new copy of the cd for each device you want to listen to the music on.

    I also fail to buy the argument that the RIAA deserves money from a service that they do not, and do not want to provide. LET ME LISTEN TO MY MUSIC HOW I WANT, WHEN I WANT, WHERE I WANT so long as I have payed for the rights to listen to it. If I don't want to spend the time to copy the music myself, or upload the music to my own private server myself, so long as I am able to show ownership of the right to listen to the music let me listen to it!

    I will delve a bit into deep opinion here, but I think the big reason that the record industry is after MP3.com is NOT because of the copyright issue of beam-it and my.mp3.com. The big problem they have is that they know they are no longer necessary. MP3.com is able to provide a huge promotion coverage for a band. They provide cd distribution for a band. They provide this for anyone, and at NO CHARGE. Talk about the end of the nasty record industry tradition of pouring your blood sweat and tears into a demo, running it around to a million agents to get it listened to, and hoping for a deal where you get even 1% of sales from the music you record. Beat the record industry, buy only music distributed by companies that believe in new distribution methods that give increased value to the artist and to the consumer.

    --

    "You can now flame me, I am full of love,"

  171. Re:this really had nothing to do with trading mp3s by La0tsu · · Score: 1

    The copyright violation was in ripping the cds, not in making them available.

  172. Re:Believe it ... it's same as radio. by interiot · · Score: 2
    LET ME LISTEN TO MY MUSIC HOW I WANT, WHEN I WANT, WHERE I WANT so long as I have payed for the rights to listen to it.

    Judge Rakoff referenced the lawsuit Castle Rock vs. Carol Publishing where a company produced a book of trivia from the Seinfeld show. The book had a lot of direct quotes from the show. Carol Publishing Group lost the case and had to stop publishing the trivia book.

    But if you look at it, the public had already payed (through advertisements) for the right to view Seinfeld. Yet the public wasn't legally allowed to view the copyrighted works in another form (the trivia book) without Seinfeld being further compensated.


    In this case, the judge decided that it's even worse that the copyrighted works weren't even slightly modified.

    Copyright law gives the copyright holder the exclusive right to benefit from the copyrighted works. Since MP3.com was making money from the songs being in MP3 form even though the consumers had already bought the CD's, it was obvious that the MP3's have further financial value, and that the RIAA were the only ones who should have benefited from that additional demand since they still held the copyright.
    --

  173. We aren't anarchists! by canam · · Score: 1
    Reading the postings about this yesterday really upset me. It seems that anyone that is supportive of the plaintif in this case is flamed and is not given a chance to express their opinion. This forum is not presenting or allowing a healthy discussion of the topic.

    Personally I believe that the courts have gone way overboard in supporting anyone who can spell intellectual property". In this particular case, however, I can see the plaintif's point and generally agree with the outcome. Either we have copyright laws or we don't. I can't see how the outcome could have been any different.

    My understanding of the current MP3 case is that mp3.com is storing copies of CDs (in mp3 format) in central repository for listening anywhere on the internet after the customer has proven that he/she owns the same CD. So mp3.com had to copy copyrighted material in order to do this. End of story. They violated copyright laws by doing this.

    Contrast this with the DECSS situation or the :Cue:Cat situation. In both cases, someone has simply reverse engineered the transmission medium/format and developed code to use the devices in ways other than what their developers originally expected. In and of itself this does not violate copyright law, nor does it necessarily encourage people to do so. (The :Cue:Cat situation seems like a real fishing expedition).

    In my opinion, the organizations trying to put a stop to healthy re-adaption of their technologies, as in the DECSS or :Cue:Cat cases, are true villains. Their harassment and bullying tactics need to nipped in the bud ... and quickly.

    But knee-jerk flaming of anyone who doesn't support the total elimination of copyright protection doesn't help things. The general public won't be able to distinguish between the mp3.com case and the DECSS/:Cue:Cat situation. All they see is that the open-source community can't have (won't allow) an open discourse about the new legal situations that are arising. We're being pigeon-holed and dismissed as a bunch of anarchists because of this.

  174. Re:$25,000 per violation by acomj · · Score: 1

    the radio piece I heard said that the judge could have ordered more but gave them the 25,000 $ because mp3.com was behaving well. MP3.com has settled with others for abour 2 million.

  175. Re:And MS gets a $1 million fine for monopoly abus by destiney · · Score: 1

    Amen... I agree 100%

  176. Re:Believe it ... it's same as radio. by interiot · · Score: 2
    In fact, each member of the public is legally allowed to copy the television shows to VHS tape, watch it many times, and transcribe the information they get there into a trivia book of their own.

    AFAIK, the problem comes in when a company does it for the public and profits from it without compensating the copyright holders of the Seinfeld show.

    So, you are allowed to listen to the music in any form you want to, but an outside company can't profit from helping you listen to the music, unless they have a deal with the RIAA.
    --

  177. Re:You do not understand by dillon_rinker · · Score: 2

    You don't allow OTHER people to make copies of your copies. mp3.com did. It's not cut and dried - it's a gray area. mp3.com knew they were on shaky legal ground when they started, and they lost. Sort of...

  178. We Broke the Law by WildBeast · · Score: 1

    Geez with the amount of laws in place it's becoming very easy to break a few ones.

  179. Re:You do not understand by La0tsu · · Score: 1

    Used CDs are covered by the first sale doctrine, a specially granted right. ISPs are given special rights under DMCA. Napster tried to argue they were an ISP in their case, and the argument was firmly rejected. CD players do not depend on the RIAA, but even if they did, they are not transferring the data user to user, so this is specious.

    This being said, There are cases in which commercial use of IP without permission is considered Fair Use. The most obvious example is for reviewing purposes.

    I am not anti-MP3.com or Napster. I unfortunately think we will have to change laws so copyright holders must demonstrate damage being caused by the current offenders. By this test, MP3.com is certainly okay. Napster would be shaky, but less so than currently. It would be a fair resolution.

  180. You gotta love the American legal system! by Ho+hum · · Score: 2

    Everwhere else you pay damages if damage has been done, and only as much as the damage was (that's why it's called that way). Not so in the USA...

  181. DOH by AbbyNormal · · Score: 1

    its all about closing the HREF block.

    Also[oT]:Isn't this a little silly?

    "Slow down cowboy! Slashdot requires you to wait 1 minute between each submission of /comments.pl in order to allow everyone to have a fair chance to post. It's been 1 minute since your last submission!

    --
    Sig it.
  182. That's $118 _Million_ , not $118 by mikael_j · · Score: 1

    That kinda confused me at first...

    Mikael Jacobson

    --
    Greylisting is to SMTP as NAT is to IPv4
  183. Big windfall for artists, right? by clayski · · Score: 1

    And out of this $118M, that would be, lets see, carry the 2, umm, NOT ONE THIN DIME for the supposed "victims" of this heinous piracy, the poor starving artists. You're entitled to all the justice you can afford. - Clayski

  184. One thing wrong... by gnookie · · Score: 1

    One thing that bothers me is the claim that my.mp3.com "allows people to listen to songs but not download them their computers." (sic)

    That's untrue. My.mp3.com streams its files via http. How hard is that to capture? trivial. I used wget to grab whole albums that I had on my.mp3.com. In a twisted logic, it's the fastest way to rip the stuff you own.

    This is just another example of a phrase I've been using when talking about this age: "to experience is to own". It's very, very, very hard, if not impossible, to present someone with the experience of a medium without their being able to capture it in some (useful) way. At some point, the signal will hit an interface not controlled by the media player : sound driver, video drivers, etc. Two simple examples are doing a screen capture to grab an image being displayed and (can't find the CNET article right now) that software that replaces your sound drivers on windows with a custom driver that can also record whatever is being played.

    So, my.mp3.com might have stopped the clueless (wget impared) from getting the files, but let's be real (no pun intended), the songs were technically downloadable.

    --
    -- adam a 62 69 74 65 20 6D 65
  185. Re:+1 - wish my moderator status didn't run out to by bad-badtz-maru · · Score: 1

    The parent message is a piece of crap, instead moderate that first reply way up there. We are not talking about thinking inside or outside the box or RMS or blah blah blah. We are talking about willfully violating a law. Do you choose to ignore every law that you do not agree with? That is not the way our country operates, for better or for worse.

    Maru

  186. Re:Believe it ... it's same as radio. by interiot · · Score: 2
    My above comments are wrong, I believe.

    US Code Title 17, Section 106 lays out the sorts of things that a copyright holder is allowed to do, and no one else is. They're along the lines of exclusive right to reproduction, exhibition, and the like.

    Nowhere in copyright law does it mention the exclusive right to profit from one's copyright.

    For instance, copyright holders don't benefit from the lending or sale of used works.
    --

  187. Re:this really had nothing to do with trading mp3s by Wakko+Warner · · Score: 1
    How's ripping a CD a copyright violation? That's fair use as far as I know. Making a copy "for archival purposes" and whatnot.
    --


    "One World, one Web, one Program" - Microsoft promotional ad

    --
    "Remember when the U.S. had a drug problem, and then we declared a War On Drugs, and now you can't buy drugs anymore?"
  188. The problems with My.MP3.com by Quazi · · Score: 1

    MP3.com was keeping copies of the songs on their servers, but they supposedly put up a firewall of sorts to keep everybody from getting those songs -- The BeamIt Software. Once BeamIt saw that a user had a specific CD in their drive (with certain track lengths in a specific order), it would allow that user access to those songs (with those track lengths in that order).

    THE PROBLEMS: The BeamIt software can't tell that a CDR is in the drive instead of the real CD. Therefore it will allow someone access to MP3 copies of songs they didn't own. The BeamIt software can't tell that the person beaming CDs into his account isn't the actual owner of the CD in his drive. The My.MP3.com site can't tell that the person logging into the account isn't the owner of the account.

    I also wonder if MP3.com payed for the CDs they ripped from to make those MP3s? I'll probably never know, BUT they obviously didn't read the part about "unauthorized reproduction is prohibited by federal law".. ALSO! The fact that they are allowing more than one person to listen to the same MP3, could they be tried under the laws against rebroadcasting copyrighted material?

    Sure, you could say that the people doing all this are breaking MP3.com's terms of use, but MP3.com is at fault for allowing people to break the law and not doing anything about it.

    I hate to sound grouchy, but I'm just playing Devil's Advocate! :) I want to test the waters here on Slashdot..

  189. I Guess MP3.Com... by mochaone · · Score: 1

    should have read the RIAA's document on what they consider to be IP, http://riaa.com/MP3lawsuit.cfm. I myself think MP3.Com did no wrong but the RIAA is too powerful.

    Hi big boy. How's the commute treating you? And your girl, is she ok? You know who you are...and so do I. :)

    --
    Hates people who have stupid little sigs
  190. Re:I agree by GigsVT · · Score: 1

    But Imagine, getting 200,000 consecutive life-time sentences for dropping the A-bomb on Hiroshima or something.

    Haha, you think laws apply to wars? I guess we should just lock up all the verterans, they are murdurers.
    -----------------------------

    --
    I've had enough abrasive sigs. Kittens are cute and fuzzy.
  191. Hey, nice ironical note here: by Chris+Johnson · · Score: 2
    Right now I am busily deleting all my stuff off mp3.com due to my refusal to accept their new (evil) contract.

    Unless or until I find another good place to host that stuff (I'm batting 0 for 3 now, still with no luck at all)...

    Napster is the only legal way to get my music online. And that state of affairs might persist for a while... I certainly cannot afford to do it on my own airwindows.com site, and I'm not seeing whole bunches of indie mp3 sites, much less ones that make some pretense of paying me like mp3.com did. So it's Napster or... silence...

    *g* I just get a huge kick out of this for some reason. I guess it's my sick humor or something. "Oh please Judge Marilyn, don't hurt my only remaining way to legally distribute my music over the net! I beg of you!" Think that'd work? *hah!*

  192. And MS gets a $1 million fine for monopoly abuse? by tjwhaynes · · Score: 5

    $118M in fines sounds like a lot of damages - in fact it sound like a lot more money that can conceivably have been incurred by UMG. So are these punitive damages then? Given that market sales continue to rocket up despite all the RIAA media spin that seems to give the impression that the arrival of MP3s is the end of the world as they know it and that they are already having to beg on street corners in order to pay for the Ferrari, I'm not sure where this figure has come from.

    Given that MS gets fined $1M dollars for attempting to put a company out of business by pulling a bait-and-switch, doesn't look like the world is flat on a legal basis does it? The software industry easily pulls into the $100Billion dollar category so I can't believe the stakes are 100 times higher for UMG...

    Cheers,

    Toby Haynes

    --
    Anything I post is strictly my own thoughts and doesn't necessarily have anything to do with the opinions of IBM.
  193. Yes by Frac · · Score: 2
    Fox News is reporting that MP3 must pay $118 to Universal Music Group for copyright violation.

    $118 certainly sounds a little too less. I wonder if that's even enough to pay for one meal of a UMG executive?

    Or do you mean $118 MILLION? ;)

  194. Re:You do not understand by Tardigrade · · Score: 1

    From this site:

    Specifically, section 109(a) of the 1976 Act confirmed former section 27 of the same; "the physical act of renting, leasing or lending phonorecords . . . for direct or indirect commercial advantage [is] a copyright infringement."66 The actual infringement occurs at the instant the unauthorized copy is created.67 However, "the elimination of the . . . right to rent, lease or lend is the legislative instrument employed to [prevent violations]."68 Less than half a decade later, the recording industry and Congress were again faced with the same problem, albeit from a new and more powerful recording medium called "digital." (Bold emphasis mine)

    There's probably more, I just haven't read it yet.

  195. This is simmilar to... by B00yah · · Score: 1

    If you were to meet someone on the street, and they asked the way to the nearest bank. They then left you, and robbed that bank. It's not YOUR responsibility.

  196. Strange coincidence by Kevin+DeGraaf · · Score: 1

    Anyone else notice that the name of Universal's lofty, verbose windbag is Katz? Strange coincidence, I suppose...

    --
    We have more to fear from the bungling of the incompetent than from the machinations of the wicked.
  197. Shouldn't have happened by interiot · · Score: 2
    IMHO, MP3.com shouldn't have lost this case. I know there were legal reasons, but if you take a step back and look at the situation, I don't think that MP3.com actually harmed anyone or even caused loss of potential profits.

    MP3.com was distributing mp3's to users who already owned the CD's, so the copyright holders were getting their money.

    MP3.com was making money for providing access to someone else's intellectual property, yes. But ISP's also make money for providing more convenient access to other's IP. That's value added, so I personally think it's okay to make money then.

    MP3.com shouldn't have to pay, it hasn't been shown that anyone was harmed.
    --

  198. the fox store sucks! by MarNuke · · Score: 1

    http://www.cnn.com/2000/LAW/09/06/mp3.lawsuit/inde x.html

    Is much better!

    --
    MarNuke
  199. It's funny... by DragonMagic · · Score: 1

    It's funny that many of these companies trying to persuade the big corps to MOVE AHEAD on technology and provide what the customers want get hit hard with lawsuits and C&D's and whatnot... These big corps have the money because they're quashing alternatives. I'm not saying mp3.com was right, but why the hell can't I walk into a Sam Goody or Best Buy and buy myself an MP3 CD?

    Also, why is it that the DoJ isn't going after these companies for price fixing and antitrust violations for quashing technological bypasses? And why the hell are we passing laws to benefit these big corps who are keeping technology from moving forward?

    It's all just hilarious when we look at it. In 225 years we've gone from A Nation of the People, for the People, and by the People, to a Nation of Money, Corporatism and Lawyers. It took the Roman empire, what, 800 years to collapse?

    Dragon Magic

    --

    Human nature is the same everywhere; the modes only are different. -- Earl of Chesterfield
  200. OT: Irish Music Rights Organisation gets Legal by bfree · · Score: 2

    I saw an envelope in my parents house today with "KEEP (re jargon!)" handwritten on addressed to the Company Secretary, My Father's Name, His Address...No company mentioned. I had to peek inside (they often leave computer related junk mail around for me to see/dump) and saw it was from the Irish Music Rights Orgainsation. Now my father's main business (based at home) is software development and has family members as occassional employees beyond himself. I just had to include the full text/html (all emphasis theirs) of the two pages because they are such incredible reading but in brief summary they are requesting that as public music in work requires a licence, they want a declaration on music use in the place of business and the equipment (including private)......Read on...

    --

    Never underestimate the dark side of the Source

  201. crack-smoking bastards! by oxygen8 · · Score: 1

    WTF??? This is the kind of thing which pisses me the *hell* off!

    I can understand that the artists created something which has been made commercial and that everyone wants to get a piece of the pie, but someplace like mp3.com is *not* where you are going to lose millions of dollars from! If anything you are going to get people to buy even more music since it is more like a try before you buy scenario!

  202. Re:this really had nothing to do with trading mp3s by interiot · · Score: 2
    Yeah, you can make one (and only one) archival copy, see 17 USC 112 (a)(1)(B).

    But, you can't give it to anyone else. "the copy or phonorecord is retained and used solely by the transmitting organization that made it, and no further copies or phonorecords are reproduced from it"
    --

  203. open source mp3.com by Galois · · Score: 1
    there is a project on sourceforge that is trying to implement all the functions of mp3.com

    http://sourceforge.net/projects/mywebj/

    If you don't like the new mp3.com contracts, or if you think mp3.com won't be able to recover, then help out on the project and start your own server.


    - daniel

    --
    - daniel
    Turn off your computer and go outside
    1. Re:open source mp3.com by Chris+Johnson · · Score: 2
      OK- good motivations, _very_ early announcement (hell, I could announce my recording studio/record label project on the same basis- at least I've laid out some money for burning equipment, and the media! ;) )

      I would question, however, how much this is a _technical_ problem. I can tell you what mp3.com looked like from the viewpoint of an artist earning a few hundreds of dollars on downloads and streaming- I saw a lot more straight downloads than streaming. Of course, this is colored by the fact that I _allowed_ downloads rather than just streaming: but the result is that I still got to observe thousands of song 'hits' of all different types.

      Getting slashdotted was always a delight ;) normal volume was much less. Either way, it tended to work out to an emphasis on downloads rather than streaming. This might be affected by the fact that my music was and is the un-easy-listening AOR 'radio station' dribble- if it was more 'lite' I might have seen more use by streaming mp3.com customers. However, I still think what I saw is reasonably representative.

      The upshot is this: it'd be a big help if anyone was doing a just plain SERVER for hosting mp3 files- legit ones for the artists. Could a nonprofit organization (such as a 501c3) get past the mp3licensing.com threat of hitting up the hapless site for $15,000 and 1 cent per download minimum? I'm not confident a successful mp3 hosting site offering free downloads and earning money through ad revenue (in other words, your usual site) would be safe from this sort of attack.

      I think it's probably time to bite the bullet and scrap any hope of getting musicians paid per download- my thought is, surely legal nonexclusive rights to this sort of content have a value that justifies offering the hosting space free? mp3 files add up: I was at several hundred megs of material when I left mp3.com (all now deleted off their system). iuma limits you to ten songs for presumably this reason, which is a major problem. Many sites (mp3.com, farmclub.com) have ugly contracts, or barely-hidden landmines in the contract just waiting to turn even uglier.

      The situation doesn't require computer engineering, it requires social engineering. You either side with the RIAA folks (let's all exploit some artists to line our pockets! How much can we con them out of?) or you start to ask for something like what mp3.com seemed to be- a huge warehouse that hosts music files, charging no rent. It's not expected to promote the artist. It needn't even pay the artist, itself. It simply needs to have the following characteristics:

      • no limit on sizes- at all. I have an entire composition that needed to be split to be hosted on mp3.com- 'Extended Play'. Never again.
      • contract seeks only nonexclusive rights to only the materials being shared, for the purpose of doing the sharing. The site must _not_ be trying to collect IP.
      • If the artist terminates agreement with the site, and deletes the songs/art (if art is even required!) then that material is gone- the site does not hang onto rights to distribute that material for longer than necessary to clear the databases.
      • high availability, high bandwidth. The site needs to _be_ there.
      That would just about do it. Seemingly appealing options might include stuff like art and fancy pages (which could be a headache, depending on how unified the site is supposed to be. Couldn't it just be a file repository, more efficiently?), or top 40 charts, or message boards. However, these might not be the best thing- on mp3.com these things simply led to griping, extensive cheating of the system and attempts to guess the workings of the system, and a burial of musician communication under 10,000 posts begging "Please download my song" or (I am not making this up) "I will download all the songs on your page if you'll just download this particular one of mine, which I'm trying to get into the charts!".

      The reason mp3.com changed from what (once) was a very similar system to what I describe, is hubris- Michael Robertson has always had plenty of chutzpah but it turns to over-reaching. It made mp3.com by FAR the biggest site of its kind- no other is even close- but has also destroyed it.

      When mp3.com goes down there are going to be an awful lot of musicians looking for mp3 hosting. It's potentially a great positioning for someone who wanted to simply take Really Big Bandwidth And Storage and turn it into the _next_ 'biggest site of its kind'. It's just a question of whether anyone else can execute this strategy without blowing it by overreaching- by trying to out-promise the RIAA labels (HA! Not!) and ending up hopelessly broke, moneylosing and in court.

  204. Radio stations don't pay royalties for recordings by jbs · · Score: 1
    At this point, I guaran-damn-tee someone will bring up the "radio stations pay royalties" point.

    Why do they pay royalties?

    Radio stations do not pay royalties for musical recordings. They pay royalties (via BMI/ASCAP) to songwriters and composers, not recording owners. And guess what? So does MP3.COM!

    Why don't radio stations pay royalties to recording owners? Because Congress decided not to grant an exclusive right of performance for these particular works. Why? Just because.

    Copyright is about an arbitrary compromise between creators, users, and society, and in particular, radio stations have lobbyists such as those which work for the NAB.

    Copyright is not about what is morally right and wrong. Anyone who claims it is is trying to sell you something.

    Bottom line: Radio stations have juice in Congress, and Internet companies like MP3.COM don't, at least not yet.

  205. RIAA and PR departments by Psychogizmonator · · Score: 1

    I know this whole thing is sort of old hat, but don't these big corporate music types have any sort of PR looking out for their image? Do I just hang out with too many 'liberal' computer users, or what? Just about everybody who I have even begun to bring this up with thinks that the RIAA are all stupid, and all news items pretty much just make them want to use Napster & co. even more.

    --
    So sayeth the none, this day of justice. - The Psychotronic Gizmonator was here -
  206. I think I'll add here too. by Kid+Zero · · Score: 1

    Ever since I first read about this service,I was wondering how in the heck they'd justify the copyright violations? Radio Stations pay fees to do it.

    Right. It's a neat idea, one who's time might be coming, but they should have known that Big Media wouldn't give up their cash cow without a fight. Get your head out of the sand.
    -----------------------------
    1,2,3,4 Moderation has to Go!

  207. Come full circle by GuNgA-DiN · · Score: 1
    I think this is interesting because the whole thing is coming round full circle again. Original MP3.com started off as the renegade "bad boys". They were talking shit, and putting down the RIAA, and the whole recording industry. Then, they got taken to the cleaners and Michael Roberston is publically kissing their asses now and trashing on Napster so that they will forget about him for awhile. I personally hope they go out of business - would serve them right. You can put down the man and at the same time work for him and kiss his ass.

    A couple of years ago, before an easy to use client for MS Windows came out, MP3 trading took place in the "underground" beneath the radar screens of news media and corporations. This happened every day on FTP servers, IRC, Web servers, and word-of-mouth. There was no "easy way to get MP3's" for the common idiot.

    Well, all of this lawsuit action going on is only making it worse for them. They are shooting themselves in the foot and don't even realize it. MP3.com is the whipping boy being made a public example of. You think that's bad? Wait until the Napster trial! Mark my words -- they will get shut down and go out of business. If the judge is this harsh on a "semi-legal" form of music sharing - Napster is going to bend over and get it up the ass repeatedly in something that resembles a massive prison gang-rape.

    So, the file trading will go back underground to FTP sites, IRC and Gnutella where they can't stop it. It only seems fitting. But, they are so stupid they'll never figure it out.

  208. Damages? by Megahurts · · Score: 1

    Wouldn't that imply that MP3.com has caused that much of a decrease in UMG's sales? I find that highly unlikely. Decisions like this simply make my blood boil. I mean, I have a hard time accepting the validity of the case to begin with, but putting that aside, how can they justify that much? Did anyone even attempt to figure a reasonable amount? Or does everyone involved realize that the it would be hard to prove any difference in sales, since all cd sales have been increasing for several years now?


    ---

  209. What if? by Luminous · · Score: 2
    This is rampant speculation on my part, but what if all secondary and tertiary distribution of music was completely cut off. I'm even going to the extreme that you cannot even make a tape of a cd to play in you walkman. Would the popularity of Industry Music decline?

    The other question basically is, do independent labels stand a chance in the current environment but will they become much more popular in one in which the music of an independent label is freely distributed, copied, and used by the consumer where the Industry Music is locked down?

    I fully admit I am more attracted to underground bands, even when their 'underground' status is actually part of marketing. Who would care about a song if it couldn't be completely enjoyed in all its potential forms?

    --
    This is not the way to build a lasting empire.
  210. what about audiogalaxy, lycos, or the VQF format? by mrzer0 · · Score: 2

    Did the major record labels forget these things too?

    i can still get mp3s of albums that I don't own, by uploading other mp3s of albums I don't own all thanks to audiogalaxy, and mp3.lycos.com

    and what about the vqf audio format, sure it's not as widely supported, but it seems to be okay to use. It's not part of the whole MP3 CONTROVERSY.

    I think the owner of http://www.vqf.com/ should make a similar service, and wait and see what happens.

    [mrzer0]
    When you pirate MP3's, you're downloading Communism! Well I guess that makes me a Commie.

    uNF!

  211. GOD DAMN I'M PISSED by Acy+James+Stapp · · Score: 1

    WTF? There is no freakin' way that my.mp3.com kept people from buying 10 million CDs.

    According to the article, they copied 5-10K CDs from Universal. That's $12K per CD, and at $15 per CD, that's 787 people per CD who would have bought 2 CDs (because they already have 1) if not for my.mp3.com. Yeah right. Like I'm going to buy another copy of each of my favorite CDs.

    Bastard idiot f*ckhead moron stubdick pencilneck piece of sh*t judges should break out a fscking calculator every once in a while.

    --
    -- Too lazy to get a lower UID.
  212. Mod Parent Up by jareds · · Score: 2

    Does anybody even read the articles?

  213. Stupid MP3.com by WayneGayle · · Score: 3

    Why didn't MP3.com start a SEPERATE business for my.mp3.com? Wouldn't it have made alot more sense, considering that what they were doing was very questionable legally, and they KNEW that there would be some legal battle over what they were doing. All the damages accrued on behalf of my.mp3.com is going to pull down mp3.com, which is a great service. Could they have legally formed a seperate company that would have done the same thing but not effect the financial status of mp3.com should it all go down like it has? Is this going to bankrupt mp3.com? bah.

    -WG

    --

    "America, I smoke marijuana every chance I get."
    1. Re:Stupid MP3.com by rossjudson · · Score: 1
      Absolutely! I think that MP3.com has some incredibly bad management. The down side to the Beam-It program was total nuclear meltdown. As far as I can tell, there was little or no upside to it! Advertising revenues? Please!

      I feel pretty bad for the shareholders. What this judge has done is just take all that cash and give it to the record companies.

      Hey, I wonder how much of this Universal is going to give to the artists? I wonder how they're going to calculate the royalties they owe? Artists probably won't see a dime of it.

      Why didn't MP3.COM just pay the radio-style licensing fees on the music they were broadcasting? They'd probably end up ahead, by far!

  214. Re:And MS gets a $1 million fine for monopoly abus by iCraveAttn · · Score: 1

    I'm sorry, but isn't it $1 million PER DAY? That adds one hell of a difference.

  215. RIAA has found a new revenue stream! by peterdaly · · Score: 2

    Looks to me that the RIAA has figure out these lawsuits can be just as profitable as selling music!

    The Music industry has found another "money for nothin" (and your chicks for free!) revenue stream! (Hmm, now 'll probably get sued for using that line... :-)

    -Pete

  216. Believe it ... it's same as radio. by Snocone · · Score: 2

    Radio stations don't infringe on copyright.

    They do if they don't follow the licensing rules.

    Note that nowhere on that link, or at any other similar organization, does it say "None of this applies if you broadcast to people who already own the CD of the song you're playing."

    For mp3.com to claim that proving the listener's ownership made them magically exempt from all laws governing public performance always did strike me as pretty questionable legally. I'm totally unsurprised at the decision.

  217. Other articles by White+Shadow · · Score: 2
  218. No kidding by Greyfox · · Score: 2
    They could have stuck to indie artist MP3s, stayed totally legal and had a good solid business model. The whole my.mp3.com idea was a stupid one and they should have taken the guy who had it out back and had him shot.

    If I owned any stock in them, I'd be demanding that they take everyone who went along with it out back and have them shot. Lucky for them, I don't. Lucky for me too; at this point you're probably more likely to get your investment back if you'd been burning it in the fireplace.

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

  219. All piracy damages are ridiculously high by allanj · · Score: 1

    At $25.000 per CD, this is really getting out of hand. Even if the judge said he could have been much harsher, this is ridiculous. At $15 per CD, that's like saying the industry lost the sale of 1667 copies for each of the CDs. Part of the amount is punitive, I know, but still...

    Software piracy cases are judged equally stupid. A couple of local software pirates were convicted of massive piracy (they readily confessed to it), and the software companies simply multiplied the CD count by the suggested retail price to come up with an enormous $400.000.000 claim against two teenagers. Do they really think that each and every pirated CD equals one sale less? Of course it doesn't! From my experience, a good guess would be that maybe 1 in 50 pirates would seriously consider buying the expensive stuff they pirated.

    This is not a defense for piracy - not at all. It's merely a call for a "reality check" on the part of the music and software industries to take a realistic approach on these things. It's OK to defend your copyright, but do so in a reasonable fashion, and come up with damage claims that reflect how the actual world works. And I don't need to make comments about clueless judges - their actions speaks volumes on their own.

    --
    Black holes are where God divided by zero
  220. Domain Stealing by johnpearce · · Score: 1

    Doesn't this sound just like the companys are trying to get the mp3.com domain?

  221. Easy Solution... by corarc · · Score: 1
    There is a very easy solution to this. Consumers have the power but don't take it. This should be heavily advertised and the a BOYCOTT of buying CD's should take place. One month of not buying CD's. That should hit them hard.

    Proof: Look at the French fishermen and Lorry drivers. 2 weeks ago the fishermen blocked up the French ports protesting at fuel prices (compared to US they are EXTREME, just over a dollar per LITRE, UK even worse). 3-4 days people were blocked in their cars, 10 cars every 15minutes were allowed through.

    When that was finished it was the time of the lorry drivers, they blocked petrol refineries and distribution points. Petrol distribution in France became non-existant. Now the French have asked the European Union to do something about petrol prices.

    See what boycotts can do? Come on someone, arrange a boycott, that's the way to go.

    c0rarc

  222. You do not understand by burris · · Score: 3
    This is really stupid and I hope MP3.com approves it. There was already an analysis of the My MP3 protocol put up. There was no way to infringe. Period. MP3 is shelling out twenty five thousand dollars per CD - payment for what?
    You do not understand. Whether or not the protocol was secure or not had nothing to do with it. MP3.com infringed on UMG's copyrights when it copied CDs to onto Mp3.com's disk drives. That's it. You're not allowed to create an online catalog of music without the copyright holders permission. They wilfully violated copyright in order to directly profit from UMG's music. It doesn't matter that they were only going to beam it to people who already bought the CD. They weren't allowed to make the online catalog in the first place.

    Burris

  223. Now the big question is... by Anonymous Coward · · Score: 3

    how much do Artists see from that penalty fee? Somehow I think I already know it: 0.00$ Thank you. Well at least the fat boss of can now buy another luxury Yacht in Monaco... Another reason not to buy any music anymore as long as artists and consumers are ripped off by mega-corps with lawyers...

  224. Wrong Bucko by Lumpy · · Score: 2

    Umm big radio stations get PAID to play the music.
    I know this first hand, and I know what crap goes on to try and cripple smaller stations.

    If you think a radio station (large one) pays for the music it plays then you are gladly eating the FUD that the riaa feeds you.

    --
    Do not look at laser with remaining good eye.
  225. Sending us a message?! by Unreal+One · · Score: 4

    It says that the judge is trying to send a message to the "Internet Community" that copyright infringement can not continue.

    Who exactly does he think the "Internet Community" is? A limited bunch of hacker punks who are going to see this, get scared, and stop trading MP3?!

    Does he not realize that the "Internet Community" is millions strong, and includes his neighbors, friends, co-workers, kids, and what not? These are the people using services like BeamIT.

    As long as it's available, everyone will trade music and other media as long as it's practical to do so.

    And I agree with previous messages that there really isn't any indication that any copyright infringement ever took place.

    This whole situation is just wrong, and MP3.com is getting the shit end of the stick.

  226. Might be compensatory? by Sloppy · · Score: 3

    So are these punitive damages then? Given that market sales continue to rocket up despite all the RIAA media spin that seems to give the impression that the arrival of MP3s is the end of the world as they know it

    My first reaction was that it had to be punitive, since the RIAA's total loss in sales amounted to about $0.00. After all, despite the fact that my.mp3.com was technically distributing copyrighted content without permission, they were sending it to people who already had it. The challenge/response protocol really looked pretty good. I don't think hardly anyone got sent an MP3 from my.mp3.com who didn't already have the CD, unless it involved people sharing accounts, the way some pirates use iDrives, for example.

    The problem is that we're fooling ourselves by just looking at album sales. RIAA didn't lose album sales, but they did lose royalties. For example, when the radio plays a song, they don't get off the hook for paying royalties just because you, the listener, happen to already own the album.

    Could the lost royalties possibly add up to $118M? That's mind-bogglingly hard to believe, and still suggests that most of the damages are punitive. But I dunno... Consider that they are doing point-to-point transmissions instead of, say, MBONE broadcasts. What if each transmission is required to have the same amount of royalty paid that a radio station would pay (even though there's only one listener)? If so, then it is actually conceivable that they could accrue royalty liabilities at a rate several orders of magnitude faster than a radio station would.

    Just something to think about. I don't know if the $118M figure was just pulled out of someone's ass or what, but it seems possible to me that it might be more compensatory that it first appears.


    ---
    --
    As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  227. Re:I beg to differ by seanmeister · · Score: 1
    They could have stuck to working with indie artists and distributing their music. I still think that business model has potential.

    They did. It does.


    Sean
  228. RTFA: NOT damages by startled · · Score: 2

    Well, it has to be said with just about every /. story, so I guess it's my turn. RTFA. A lot of people are saying, "boy I'm pissed, how did they lose any money?". The fine is NOT damages. This is not compensatory payment. Right in the article, it says: "Universal had not alleged damages". These are punitive damages, meant "to send a message of deterrence".

    On another note, to clarify how this is different from you uploading your music to i-Drive and listening to it from there. First of all, there is the difference that i-Drive doesn't know what you're uploading-- they just provide space. Second, you actually have to upload the file to i-Drive, which is time consuming. MP3.com is saying, "here, since we already know what you're going to upload, let's save you the time". But that's where they get into trouble, because they're using Universal's property (the music) to provide a service to you.

  229. MP3.com can't really use that defense... by Cool+Hand+Luke · · Score: 1

    Just because it is possible to take advantage of the system does not mean the system is at fault.

    ...because that's talking out of both sides of their mouths. MP3.com's defense is that their system allows only owners of CDs to listen to them online. They can't turn around and then say "Well, it's not the system's fault if the system doesn't work. People are taking advantage of it."

    With that logic, why don't they put digital copies of every CD ever made online, and require people to click on a dialog agreeing that they will only listen to CDs they own?

    George Lee

  230. I beg to differ by Greyfox · · Score: 2
    The lesson here is don't distribute music you don't have rights to.

    They could have stuck to working with indie artists and distributing their music. I still think that business model has potential. I've bought several great CDs from them, at well under what they would have cost at a music store.

    Of course, that business model would probably work even better with Ogg Vorbis files -- no patent royalties to Frauhauf.

    Oh well. Someone will come along and fill that niche.

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?