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Napster Finally Gets a Break

jark writes "Wired News is reporting that 9th District Court Judge Marilyn Hall Patel ruled that the five major record labels must prove they own thousands of music copyrights as well as prove those copyrights were not used to monopolize and stifle the distribution of digital music. " Definitely a twist in this ongoing saga.

35 of 240 comments (clear)

  1. Oh, I changed my mind!? by Starship+Trooper · · Score: 3, Interesting

    Patel, who called both sides "dirty," said that Napster's misguided attempts to build a business using illegally obtained music paled in comparison to what could be massive misuse and heavy-handed tactics by the recording industry.

    Please tell me that the future of digital music on the Internet is not being decided by someone who is arbitrating the decision based on which side is more morally repugnant.

    What about applying old standards? Interpreting existing law to a new medium?

    Patel has not impressed me with her keen wit and insight. Sorry.

    --
    Loneliness is a power that we possess to give or take away forever
    1. Re:Oh, I changed my mind!? by Cato+the+Elder · · Score: 5, Insightful

      Actually, the judge seems to be basing her decision on sound legal principles. The sentence you qoute suggests otherwise, but it was written by the reporter at Wired. The quote about both sides being "dirty" probably refers to the doctrine of "Unclean Hands" which basically states that you can't benefit in a civil suit from illegal actions. In other words, if the record industry has illegally claimed copyright of songs that actually belong to artists, then they can't claim damages.

    2. Re:Oh, I changed my mind!? by mbourgon · · Score: 3, Interesting

      I thought that it was bigger than that, that if they had used the copyrights to [create|maintain] a monopoly(?), that they could lose those copyrights.

      If that's true, what happens to those artists? Did they just totally screwed due to their labels? And if so, is that justice or justified?

      --
      "Sometimes a woman is a kind of religion, she can save your soul & set you free from all your sins" - Bad Examples
    3. Re:Oh, I changed my mind!? by danspalding · · Score: 5, Insightful

      When you read articles about court decisions, you have to remember that a reporter is quoting the two or three juicy sentences in dozens of pages of dry legal text.

      While Patel's logic, as quoted by Wired, might not impress you, you might want to check the full text of this decision.

      This is especially true of Supreme Court decisions, which usually have hundreds of pages of decisions from the majority and individual justices. The press makes them look like a single issue decides the case, but that's almost never true.

      Look past the flashy quotes, dude.

      --
      Teaching, coding, coffee, revolution.
    4. Re:Oh, I changed my mind!? by RazzleFrog · · Score: 5, Informative

      The argument that the Napster lawyers are making is that the labels don't actually hold the copyrights anyway since the artists were essentially working under contract as freelancers. If this is the case then the copyrights would revert back to the artists.

    5. Re:Oh, I changed my mind!? by sporktoast · · Score: 4, Interesting

      I thought that it was bigger than that, that if they had used the copyrights to [create|maintain] a monopoly(?), that they could lose those copyrights.
      That would be kind of silly, seeing as how copyright is a monopoly (as granted by the government). The "bigger" part would be whether or not they abused that monopoly.

      The issues here seems to hinge on two questions:

      1) Do the labels really hold the copyrights for the works, as they claim?

      If the works were NOT for hire, then the monopoly priviledges remain with the authors, and the labels' case suddenly has no ground.

      2) Have the labels engaged in anti-competitive practices by refusing to fairly license the works?

      This is an important issue and may help decide the outcome of the case. Unfortunately, I'm not clear as to whether this case can do anything about the labels' anti-competitive behavior. (Kinda like if a woman proves her husband is a child molester during a divorce suit, that only gets her the divorce and custody of the kids. Getting him arrested for pedophilia becomes a different legal matter.) I'm a little worried that if the details of the case head too far in this anti-competitive direction, that the labels will offer Napster a fat (and confidential) settlement to avoid setting any precedents or creating useful fodder for future cases.

      --
      In a related story, the IRS has recently ruled that the cost of Windows upgrades can NOT be deducted as a gambling loss.
  2. Re:Napster=News? by Anonymous Coward · · Score: 5, Insightful

    Napster is dead. Put a fork in it, it's done.

    But what of Gnutella/BearShare/LimeWire? What of KaZaa (sp?) or mp3.com?

    The pont is, if Patel finds that the 5 music companies have stifled legitimate competition, then other legitimate competition may return.

    Sure, Napster is dead, but once a precedent is set, nothing's to stop someone else from setting up a clone service. Clearly, the demand is still out there.

  3. Napster May Be Dead, but.. by ackthpt · · Score: 4, Insightful

    But this would go as well for any other music sharing service. So, it's not really a failure in that regard. Also, it's a loss for RIAA, which is enough to make me raise my voice in song. Let'em try to take that away.

    --

    A feeling of having made the same mistake before: Deja Foobar
  4. suprised. by www.sorehands.com · · Score: 3, Insightful

    I am suprised that the blank media 'tax' already paid for the music being copied on Napster argument has not been raised.

    1. Re:suprised. by dougmc · · Score: 3, Informative
      Are you referring to the DAT Tax that adds a tax to audio DATs and CDRs?

      If so, as much as I dislike this tax, then this isn't much of an argument. Very few mp3s end up on Audio CDRs, and even fewer on Audio DATs (unfortunately, as good as DATs are, they never really took off.) Why? Because, IF it's burned onto a CD at all, it's burned to Data CDs, which have no such tax. Audio CDRs cost several times as much as Data CDRs exactly because of this tax, therefore the only people who use them are typically those who must -- those who have audio burners (NOT computers!) that require them.

      I imagine that there's a few people who downloaded music with Napster and then played it via their sound card and then recorded that with an Audio CDR device, but this number is almost certainly dwarfed by those who burned it directly on their computer -- it's cheaper, uses more common hardware, and delivers better quality.

    2. Re:suprised. by base3 · · Score: 3, Funny
      therefore the only people who use them are typically those who must -- those who have audio burners (NOT computers!) that require them.

      So they're really more of an "I didn't do my research and bought a product that is intentionally crippled" tax.

      --
      One CPU cycle wasted on digital restrictions management is ONE TOO MANY.
  5. It's all about the Benjamins by aardwolf64 · · Score: 5, Interesting

    "prove those copyrights were not used to monopolize and stifle the distribution of digital music"

    I had problems understanding this phrase until I got to the second to last paragraph in the article:

    "Napster lawyers have alleged the record industry withheld their copyrights from digital music services until three of the major labels could launch MusicNet. Once that service was launched, just days after Napster was shut down, company could only obtain wildly restrictive licenses to sell music. "

    So THAT's what this is all about... The record industry isn't against digital music, they're against anyone besides themselves making use of it. If they had their way, I know of at least a few radio stations that would be shut down. Where does it end? Am I going to have to change to the Sony-owned radio channel to hear the latest music???

  6. Probably not good news by Fair+Use+Guy · · Score: 3, Interesting
    In one of my introductory law classes, the professor (a former trial lawyer) described a very tough judge he once had to deal with. In this case, he represented the plaintiff in a civil suit and the defendant's lawyer produced a steady stream of rather annoying objections to his lines of questioning. The judge sustained each and every one. The judge then proceeded to decide the case... in the plaintiff's favor.

    Why would the judge do this? Quite simply, the judge wanted the plaintiff to win, and wanted to keep the defendant from being able to appeal the decision. And if the judge sustained every single one of the defendant's objections, the defendant had no grounds for an appeal.

    That is what appears to be happening here. Judge Patel, a jurist who has most decidedly taken the side of the plaintiffs in the Napster case, wants to make her decision airtight. There's no way that Napster will be able to appeal the decision to the Supreme Court if she allows the defendants to explore every possible line of defense before they lose the case. It's about giving them a fair trial and letting them prove they are not liable - and when they are unable to prove they aren't liable (they really are liable under the DMCA, like it or not), she will return the verdict that puts them out of business forever.

    Not that Napster is an issue anymore, anyway. They have been supplanted by several services that are more resistant to legal and network attacks and do not attempt to extort a monthly fee out of their users for access to materials that they have a basic right to download anyway.

    Fair Use of the Day:

    WALLUP V 1.0 :1) Load the Game 2) quit to bring up the closing Soleau Software screen 3)Press the key 4) Enter name 5) Code: 6123$57
    MailCrypt Wizard 0.92 :name: Riz la+ s/n: MC-10-0-1421
    Cyberspace AddWeb v1.22 Standard :s/n: AW88-37D0W7A-72K8266
    FTP Voyager v3.0.1.6 :name/FX22 97 #/0000259a email/fx22@hotmail.com
    CDQuick cache v1.11 :name/Somebody key/C864


    /fug
    1. Re:Probably not good news by raresilk · · Score: 5, Interesting
      Although you may be right about Judge Patel's motives, I disagree that her decision has any possibility of being "airtight." Fair use and antitrust issues in the electronic music distribution arena are too novel for any judge to presume that her decision could avoid review by a higher court.

      --
      No, no, no. This is not a sig.
  7. interesting by soap.xml · · Score: 4, Interesting

    the article brings up some interesting points. although napster is currently pretty much dead in the water, it seems that the company may get some sort of compensation do to the anti-competative practices of the record lables.

    "MusicNet did not suddenly appear full blown from the head of a fictitious entity. The evidence suggests that plaintiffs formed a joint venture to distribute digital music and simultaneously refused to enter into individual licenses with competitors, effectively requiring competitors to use MusicNet as their source for digital licensing."

    granted, i am not a lawyer, but it would seem that napster would have some recourse if monopolistic/anit-competative practices could be proved, and napster may have a solid future (or others) in the pay-per-play area of online music...

    -ryan

    1. Re:interesting by sporktoast · · Score: 3, Insightful
      [...] although napster is currently pretty much dead in the water, [...] but it would seem that napster would have some recourse if monopolistic/anit-competative practices could be proved, [...]

      I'm worried that those two things may be mutually exclusive. I don't think this case will provide anything more that the proof to support potential future recourse against anti-competitive practices. I don't think this case can give the labels the smackdown over their actions. I see it as either dead-in-the-water Napster achieves their proof of anti-competitive practices, but can't pursue if because of bankruptcy, or they get a fat cash settlement and a sweet (and undisclosed) licensing deal on the label's content in exchange for kiboshing the anti-competitive approach just before any real juicy details come to light.
      --
      In a related story, the IRS has recently ruled that the cost of Windows upgrades can NOT be deducted as a gambling loss.
  8. too late for napster by I+Want+GNU! · · Score: 3, Insightful

    This is good news, but it is too late for Napster. The damage has been done to it, its effectiveness as a file sharing program has been taken away, and the users have moved on to other services such as Morhpeus, Kazaa, and Limewire. Fortunately, this next generation of file sharing programs is more decentralized, so even if the RIAA lobbies against them and sues them, there will be little they can do to stop them. Plus, Limewire and the Gnutella protocol are open source, so anyone could just take them and make changes in order to make them legal again if difficulties came up.

    Once information is out there, there is no going back, and no removing that information. The public is thirsty for these file sharing programs and knowledge of them will prevent the companies from stopping them forever, and when they do stop them new ones will come out. Eventually, even their corporate lobbying will be in vain, and buying politicians won't do anything to stop the flow of information.

    1. Re:too late for napster by Lemmy+Caution · · Score: 3, Informative

      I will note that since the heyday of Napster, the diversity of available files has gone down. More obscure/fringe acts aren't as available as they used to be, and this actually means a reduction in my CD buying patterns - previously, I had used Napster as a method of discovery for new and unusual music, often by browsing the collections of people who had music that I liked. I would say the RIAA had shot itself in the foot, except that they never represented those less mainstream acts to begin with: they just want to maximize the number of people who buy Brittney Spears and Garth Brooks CD's.

  9. At least someone sees what's going on here... by thesolo · · Score: 4, Interesting

    "In contrast, (the record labels') allegedly inequitable conduct is currently ongoing and the extent of the prospective harm is massive. If Napster is correct, plaintiffs are attempting the near monopolization of the digital distribution market. The resulting injury affects both Napster and the public interest."

    At least Judge Patel sees that the RIAA is not actually acting in the interests of their artists, but in the interest of their wallets.

  10. An Interesting Perspective by jwinter1 · · Score: 3, Interesting

    More interesting than proving that they own the songs (they may not own all of them, but they certainly owned some that were traded), was this quote:

    "[The] plaintiffs are attempting the near monopolization of the digital distribution market. The resulting injury affects both Napster and the public interest."

    I hadn't thought about it in terms of monopolizing means of digital distribution.

    --
    Anything you can do, I can do meta.
  11. Comment removed by account_deleted · · Score: 5, Insightful

    Comment removed based on user account deletion

  12. Appearing out of Nowhere. by Alien54 · · Score: 5, Insightful
    Patel said proving copyright misuse was difficult, but added the recording industry's licensing terms appeared suspect. "MusicNet did not suddenly appear full blown from the head of a fictitious entity. The evidence suggests that plaintiffs formed a joint venture to distribute digital music and simultaneously refused to enter into individual licenses with competitors, effectively requiring competitors to use MusicNet as their source for digital licensing."

    Possible criminal acts of the music industry are relevant as they are important to the continuation of the culture.

    I noted a comment above that this is unimportant, because napster is dead, etc. Sort of like saying that murder is unimportant because the victim is dead and you can't bring the victim back.

    Wrong. Unless you _like_ a world run by crooks, or are something of a crook or a criminal yourself.

    --
    "It is a greater offense to steal men's labor, than their clothes"
  13. Work for Hire is the key issue by travis7 · · Score: 5, Insightful

    "The crux of Napster's copyright ownership argument revolves around a strange clause in copyright law called "works-for-hire," which essentially determines who owns the songs and albums. Any work of art -- in this case, music -- commissioned or created by an employee of a company becomes the property of that business. For example, reporters who work for newspapers don't own their stories."

    Although not 100% legally accurate, the point is that the ownership of copyright for something you don't create is basically a function of contract law - i.e., the recording contract. Most companies who pay for the creation of IP (record companies, software companies, etc.) attempt to argue and contract themselves into a "work for hire" status - which means, essentially that they (the company) are the author in the eyes of the law.

    However, work for hire, as the article states, is a doctrine that is controlled by statutory tests - simply saying something is a work for hire (even if the artist agrees to that in a contract) doesn't make it so.

    So what if it isn't a work for hire? Traditionally contracts have a back up assignment of rights. The problem is when such an assignment does not cover rights that, for example, don't exist at the time the contract was written. Imagine a contract written in the 70's - it obviously isn't going to assign rights to digital distribution to the record company.

    This comes into play in other industries - the publishing industry has recently had this problem with old author contracts where the author assigned all rights to publish a work "in book form" (standard language in older publishing agreements). Courts have found that electronic book rights still belong to the authors (or their estates).

    Of course, the lawyers now use a simple addition to the assignment along the lines of "in all media whether now know or hereafter developed" to show that the assignment is everything now and in the future.

  14. When it reached this stage in the MP3.com case.. by thumbtack · · Score: 5, Interesting

    The Recording Industry setttled, to avoid having to do this very thing....that was brought up by the attorneys for MP3.com. This will mostly be the same scenario here as well. The case is somewhat moot anyway. BMG owns the majority equity stake in Napster as I understand it, so it would be in both parties interests to settle. Except for the fact that the DOJ is looking into anti-trust allegations of the RIAA and members. (collusion). Once the Recording Artists Coalition filed an amicus brief on behalf of Napster (and the RAC doesn't like Napster), I think that Judge Patel woke up. The artist who the RIAA claims to represent say the RIAA doesn't and can't because they don't own the copyrights.

  15. Re:I've been wondering about this issue.... by halfpastgone · · Score: 3, Informative

    my understanding of the matter is that the "artist" owns the rights to the song itself (i.e. the lyrics and notes and arrangement of them) but the record company owns the rights to the recording itself. that is, the copy that is on the cd. they are suing over the use of that particular recording because, in most cases, the files traded were ripped from CD recordings. if, however, it is a recorded live bootleg or something along those lines, the record company (to my knowledge) has no control over it.

    --
    "I can't understand why people are frightened by new ideas. I'm frightened of old ones."
  16. Napster actually WON this war by smagruder · · Score: 3, Insightful

    Napster may have lost the battle for its own life, but they won the war in how they forwarded a simple idea that has largely become accepted by the masses:

    Intellectual property that can be digitized can no longer be controlled/distributed under the inapplicable/unrealistic guise of economic scarcity.


    In other words, if it's digital, it's free and swappable, whether legal or not. And nothing can stop this phenomenon. Nothing.

    The pussy is outta the bag.

    --
    Steve Magruder, Metro Foodist
  17. Re:What kind of logic is this? by Jeremi · · Score: 3

    I think the point is that justice must be done, even if it's too late to compensate the victim. Otherwise, what is to stop the perpetrator from doing the same thing again to the next company that comes along?

    --


    I don't care if it's 90,000 hectares. That lake was not my doing.
  18. Who needs copyright and record labels? by Ogerman · · Score: 3, Insightful

    Lets get a few things straight:

    #1.) Most moderately talented and experienced 'hobby musicians' (like the guys who play at small local bars/clubs/restaurants), with some practice, can play any popular (cover) song live just as well as the original musician(s), occasionally better.

    #2.) It is not hard to write good original music.

    #3.) Professional quality home recording is a reality and is not cost prohibitive for the vast majority of the US population.

    #4.) There is no shortage whatsoever of good to excellent musicians and singers.

    #5.) The vast majority of musicians perform for little or no pay simply because they enjoy doing it.

    Let me summarize in one statement: Music should be a pasttime, not a career!.

    So.. why do we need record labels and celebrity performers, again?

    1. Re:Who needs copyright and record labels? by Spy+Hunter · · Score: 3, Interesting
      Here, let me turn that argument on its head for you. Much of it applies to programming too! Let's see if you like it from a different point of view:
      1. Most moderately talented and experienced 'hobby programmers' (like the guys who write open software for free), with some practice, can produce a piece of software just as good as commercial software, occasionally better.
      2. Professional quality compilers and development environments are available for free for all computer users.
      3. Many programmers give away their software for little or no money simply because they enjoy doing it.
      Let me summarize in one statement: Programming should be a pasttime, not a career!.

      So.. why do we need software companies and paid programmers, again?

      --
      main(c,r){for(r=32;r;) printf(++c>31?c=!r--,"\n":c<r?" ":~c&r?" `":" #");}
    2. Re:Who needs copyright and record labels? by elefantstn · · Score: 3, Funny

      Heh heh. Although the likelihood of my being able to sell tickets for people to watch me hack on the kernel is pretty low...

      --
      If it ain't broke, you need more software.
    3. Re:Who needs copyright and record labels? by Ogerman · · Score: 3, Insightful

      2) Are you crazy? I dare you to sit down and go write the next chart topper?

      I never said anything about topping charts. I was talking about writing good, entertaining music. A group of my friends have a local band which plays mostly 60's/70's covers but they've more recently started writing a lot of their own stuff. And no, I'm not talking about tasteless 3-chord screaming punk-rock, wannabe non-conformist bullcrap. I'm talking quality jazz, funk, reggae, and classic rock. These are engineers and music is their creative outlet. They practice a couple times a week in their basement, occasionally spending a Saturday writing a new song, which is gradually tweaked with each performance. Music just for fun.. as a social and cultural expression. That is what it has been for the vast majority of human history and that is what it *should* be.

      So what happens if all these un-heard of 'garage bands' start recording/writing down and distributing their work for free? For them? Not much. It's just a hobby anyways. But other people may take their work and improve on it and perform it elsewhere in the tradition of folk music. Songs that become popular will naturally spread quickly and become recognized the world over. (For protection, artists should use a "GPL" style license to keep record labels or others from claiming ownership / producing commercially)

      What about high-quality recordings? When a song becomes popular enough, many people will record it and some will be better than others. Those with a passion for music will go out of their way to create top-notch recordings.

  19. What I think the real reason for this is... by DavidBrown · · Score: 5, Interesting

    I'm reading between the lines here, but this development in the Napster case seems to parallel something that recently occurred with online internet rebroadcasts of radio programs. These rebroadcasts were temporarily suspended because, for the most part, the contracts between the on-air talent did not allow for rebroadcasting (these contracts were written prior to streaming audio was developed). Essentially, the work of radio on-air talent was being rebroadcast without them getting paid for it.

    This RIAA mess seems to be this: Not all artists have assigned their copyrights to the record labels. Some of these assignments may rather be in the form of licenses which do not extend to internet rebroadcasting rights. This, even if RIAA members may have the right to publish music, they may not necessarily have the right to rebroadcast that music on the internet. If they do not have that right, then Napster is not interfering with that right.

    Of course this does not get rid of the whole case. There is certainly much music out there of which the copyrights are owned entirely by RIAA members, and the RIAA lawsuit would still be valid with respect to this music.

    --
    144l. ph34r my 133t l3g4l 5k1lz!
  20. Who Owns the Copyright? by usurper_ii · · Score: 3, Interesting

    For those saying the artists own the copyright...it isn't that easy. The artists would like to, and should, own the copyright, but the record labels say they own the copyright (well, I'm sure there are some artists that manage to keep their rights).

    Here is how it basically works: The artist is loaned money to cut an album. Artist's song goes to number 4 on the charts. Before artist sees a dime of the money, all the money "borrowed" for recording and marketing costs must be paid back. The label that picked up the artist now claims copyright to that recording (in most cases). And get this, the reason they say it is their recording and not the artists', is because they say they put up the money. When in reality, the artists have to pay back the money that the recording company LOANED them!

    I work for someone that just wrote a somewhat popular country song. He said the record company owns the copyright for the recording of that song. The band that recorded it -- Perfect Stranger -- can perform the song live, record the concert and sell copies of that recording, go to another studio and re-record the song...but the copyright to the song that is being played on the radio does not belong to them.

    Jay

  21. Probably not good news by Wintersmute · · Score: 5, Funny

    Judge Patel, a jurist who has most decidedly taken the side of the plaintiffs in the Napster case, wants to make her decision airtight. There's no way that Napster will be able to appeal the decision to the Supreme Court if she allows the defendants to explore every possible line of defense before they lose the case.

    I will join the long line of scholars, lawyers, and laymen who rightfully criticized the Napster opinions, not for their politics, but for their inartful application of an incompetently-drafted law. Judge Patel's previous opinions have been nothing for her (or, more likely, her law clerks) to be proud of.

    That being said, hearing such conspiracy-theories that a life-appointed judge is somehow "in the pocket" as opposed to just plain incompetent advanced by some, including those who claim to be law students, is nothing short of irresponsible.

    Not to mention incorrect. As some, including Mr. Fair Use Guy, have wrongly suggested, Patel seeks to insulate her opinions from Supreme Court appeal.

    One who claims to be a law student should know that Patel's decisions are appealed first to the Ninth Circuit, and then to the Supreme Court. And while the three-ring-circus-like Ninth Circuit is wholly unpredictable, capable of disputing ruling such as whether the sky is blue, the Supreme Court would not touch the over-litigated quagmire that is Napster with a ten-foot whatever - it not federalism, there's no circuit split, and there's not a damn interesting issue to be found in ten billion pages of pleadings.

    It will be a cold day in hell before the Supreme Court agrees to hear any of the Napster decisions. Jerry Falwell will smoke crack before the Court hears Napster. John Katz will write a useful article before the Court hears Napster. Microsoft will release WinXP on a GPL, disco will return, and someone will actually mod up one of my postings before the Supreme Court hears Napster.

    The Ninth Circuit is the end of line - and Patel can't do a damn thing to stop the Ninth Circuit from reviewing her - as they've proven themselves willing to review damn near everything. So ditch the conspiracy-theory crap, and recognize bad law when you see it.

    I commend unto you Hanlon's Razor: "Never attribute to malice that which can be adequately explained by stupidity."

    --
    It may be cold, but at least it's clear.
  22. i think everyone missed the point... by taco1991 · · Score: 4, Interesting

    This is a HUGE blow to the music industry's case. The implication of Judge Patel asking them to produce copyright information is that, if they can't do it, the ENTIRE MUSIC INDUSTRY would be forever changed. Right now, music companies strap artists into super-restrictive contracts where anything the artist makes instantly becomes property of the label. This means that, perhaps, the power of ownership could fall back into the hands of the rightful owners - the artists. The RIAA knows this, and now they have to defend themselves. Ahh, sweet irony...

    The other serious side effect of this is that the judge realizes that, like the article said, the music industry is moving into a monopoly of online digital music. We all know that the Napster law suit was raised not because the music industry doesn't want online transmission of music, but because they were late to the game and Napster beat them to the punch (and to the money). Judge Patel is calling their bluff and is saying that you can't shut down Napster just to steal their business.

    This is a HUGE turning point to this case, and don't be surprised if the issue of copyright holding in music as a whole is revisited because of this line of inquiry.

    taco

    --
    "Corrupting our youth one mind at a time"