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The Economics of File Sharing

Howzer writes "A great Salon article popped up today, and it appears Stan Liebowitz at the Cato Institute is having second thoughts about his paper that was published on May 15. It seems the facts simply don't support his earlier assertion (& the well-known position of all the major recording labels) that downloading hurts music sales. It's good to see this argued from another angle, especially by a guy like Liebowitz."

319 comments

  1. Hmm... by Free+Bird · · Score: 1

    While I'm glad that he's finally come to his senses, one wonders why he didn't realise this in the first place.

  2. Well, personally... by LordoftheFrings · · Score: 1

    I have always thought that downloading music helps music sales overall. I personally (even though I have a CD burner) always purchased new CDs after listening downloaded music, if I like it. Now, I can hear all the songs on a CD, before buying.

    1. Re:Well, personally... by Anonymous Coward · · Score: 0

      Riiight... and nobody EVER just downloads all the songs from an album and burns that instead of buying the actual album.

      While 'try before you buy' has some merit, it was available on sites like CDNOW.com before the advent of Napster... you just couldn't get the entire thing or save it (at least not easily).

    2. Re:Well, personally... by Anonymous Coward · · Score: 0


      I have always thought that downloading music helps music sales overall. I personally (even though I have a CD burner) always purchased new CDs after listening downloaded music, if I like it. Now, I can hear all the songs on a CD, before buying.


      What I meant to say, is "Now, I can hear all the songs on a CD, before buying more blank CDs to burn them too!"

    3. Re:Well, personally... by nurb432 · · Score: 1

      To be honest ive done both:

      I either bought groups id never have risked the $$ on with out hearing them first.

      Or the stuff i kept and DIDNT pay for, i never would have in the first place.. so no-one actualy lost any revenue...

      --
      ---- Booth was a patriot ----
    4. Re:Well, personally... by Weh · · Score: 1

      There may be people that do that but there's some additional downsides to doing so; the quality sucks if you would convert from 128kb or lower mp3's, it's alright if it's for some party mix but if it's meant to really listen to you're gonna want the higher quality, secondly I think that a lot of people actually want to support the artists they like.

    5. Re:Well, personally... by yatest5 · · Score: 4, Insightful

      Or the stuff i kept and DIDNT pay for, i never would have in the first place.. so no-one actualy lost any revenue...

      Just because they didn't lose any revenue doesn't make this not stealing.

      --
      • Mod parent up! [a] by Anonymous Coward (Score:5) Thurs, June 31, @13:37
    6. Re:Well, personally... by Zack · · Score: 2, Insightful

      right, the fact that it's not stealing is what makes it not stealing.

      Oh.. did you mean to say just because the didn't lose any revenue doesn't make this not copyright infringement? that actually makes sense.

    7. Re:Well, personally... by nurb432 · · Score: 1

      Wasnt quite the point i was trying to make, but i agree its theft according to the *LAW*.

      But i also dont care about the 'law' in this case, as my 'moral structure' allows this sort of action. As well as other 'actions' that arent 'legal' but dont effect others.

      --
      ---- Booth was a patriot ----
    8. Re:Well, personally... by Anonymous Coward · · Score: 0

      Right. Those people just borrow the cd and copy the entire thing.

    9. Re:Well, personally... by gimpboy · · Score: 2

      actually according to the *LAW* it's copyright infringement i believe and not theft. there is a distinction in the eyes of the law. the gnu folks talk about this and it makes sense to me.

      --
      -- john
    10. Re:Well, personally... by Anonymous Coward · · Score: 0

      I am definately not one to judge since I have about 10 GB of mp3s, but many people would consider copyright infringement against their 'moral structure'. To use a copyrighted piece of music or whatever, you must have the permission of the owner. If you do not, you are cheating them. That's dishonest and wrong. But I don't feel all that guilty since I still purchase CD's for $18 at the store and buy concert tickets. I feel cheated when I buy an $18 cd and there's only one song I like.

    11. Re:Well, personally... by Anonymous Coward · · Score: 0

      In New Zealand, it's only theft if you "permanently and intentionally deprived" someone of something. I argue that it is NOT stealing, as they were deprived of nothing.

    12. Re:Well, personally... by yatest5 · · Score: 2

      In New Zealand, it's only theft if you "permanently and intentionally deprived" someone of something. I argue that it is NOT stealing, as they were deprived of nothing.

      What about their right for you not to infringe their copyright?

      --
      • Mod parent up! [a] by Anonymous Coward (Score:5) Thurs, June 31, @13:37
  3. Unbelivable by I_am_God_Here · · Score: 1

    Someone the record industy actually looking at the facts then drawing the logical conclusion. Has hell frozen over?

    --

    Capitalism: unequal distribution of wealth
    Socialism: equal distribution of poverty
    1. Re:Unbelivable by GigsVT · · Score: 1

      Cato Institute=Mostly Libertarian "think tank".

      Music Industry!=Cato Institute.

      --
      I've had enough abrasive sigs. Kittens are cute and fuzzy.
    2. Re:Unbelivable by Turbyne · · Score: 0

      Have the Red Sox won the series?

      --
      ~A'Ëq'i4d)^'$ÊSÈòB
    3. Re:Unbelivable by Anonymous Coward · · Score: 0

      As a matter of fact, is has; all the demons are on strike down here so nobody's stoking the fires; something about low pay and poor working conditions. At the moment, the ringleaders are Baal, Mephisto, and Diablo.

      --
      Lucifer, Lord of Hell and Regent of Earth.

  4. FIRST POST by Anonymous Coward · · Score: 1, Interesting

    Downloading will be a serious threat until the industry figures out that people may not want a whole cd just a few particular songs. So the consumer cant have it legally so there is only one option left -> download it from a song swapping service. Now no one gets paid for anything. Why not cut the loss and sell the songs online for a couple bucks. I mean high quality WAV files that the user can do what they wish with NOT liquid audio

    1. Re:FIRST POST by Anonymous Coward · · Score: 0

      So all in all it's just an Offer and Demand problem. Now maybe if the media industry would release cheaper DVDs, earlier after movies are released in theaters, maybe more people would buy them.

    2. Re:FIRST POST by uncoveror · · Score: 1

      Downloading is no threat to the recording industry's revenues. Many consumers just have to have something tangible. Especially teenage girls who must have the new glossy photos of 'Nsync with the new CD. The threat is to their power base. They might lose their abilty to tell artists, "I made you a star, That's why I get the big money, and you get a pittence." Many artists are starting to "get it" that the fans made them stars, and without fans, they would be starving artists. The recording industry, on it's current course is just going to drive people who need something tangible to the pirate dealers at the flea market, then everyone but the pirates lose.
      http://www.dontbuycds.uncoveror.com/piracy. htm

      --
      The Uncoveror: It's the real news.
    3. Re:FIRST POST by macdaddy357 · · Score: 1

      I'd like to see Hilary Rosen go into a flea market looking for pirate dealers to bust. She'd get one look at the rednecks, and run away screaming!

      --
      How ya like dat?
    4. Re:FIRST POST by mookie-blaylock · · Score: 1
      She'd get one look at the rednecks, and run away screaming!
      And what does this teach us? Even though Hilary Rosen may *seem* evil, she's still human, deep down inside.
      --
      I am not Herbert.
    5. Re:FIRST POST by Anonymous Coward · · Score: 0

      It's really up to the consumer, where they choose to go to get music. If they want the music produced by the record labels, they will have to pay for the infrastructure. If instead consumers turn to independent artists/musicians that they pay directly, the record companies won't have as much power and price will undoubtedly go down.

      Advertising would be by word-of-mouth mostly, which is the best kind of advertising anyway.

  5. Coincidence? by AVee · · Score: 2

    This pops up on slashdot right after i submitted this cnet story about sony and universal lowering the prices of there online digital music, as well as alowing downloading to mp3 players and burning on cd. Wich a least suggests these companies aren't as afraid of piracy as they where before.

  6. Wow, common sense! by PhxBlue · · Score: 3, Funny

    ". . .That's the beauty of the market. That's why it can't get too far afield. If they get every consumer mad at them, they'll be in big trouble."

    Are you listening, RIAA? Either the mainstream is starting to realize just how full of it you really are, or this guy didn't get his payola check for the month.

    --
    !#@%*)anks for hanging up the phone, dear.
  7. Methods for gathering Pirated Music Data by mcwop · · Score: 4, Insightful
    I would like to see more in depth details on how the music industry gathers its pirated music data. Surveys are not very accurate. Other than measuring the actual sales by pirates, it seems as if the industry pulls numbers out of thin air. Measuring downloads of music from Kazaa and equating that to lost sales is bunk as well. One must match that users downloads to their purchases of music.

    Personally, I have purchased more music since buying a cd burner. My interest in music has increased as well. Now only if the iPod would drop in price.

    --

    "I don't think it's selfish, to eat defenseless shellfish." -NOFX

    1. Re:Methods for gathering Pirated Music Data by Anonymous Coward · · Score: 1, Interesting

      I know that I lot of people claim that being able to download music leads to them actually purchasing more CDs...but from my own experience, after getting ADSL installed, a CD burner and a portable MP3 player, I now only buy 2-3 CDs a year. I used to buy 30-50 a year. The same amount of money has to go somewhere...now I elect to put it into broadband, not CDs. As much as I love being able to freely download music, I think the guys at the MPAA are right: P2P is going to significantly hurt their sales.

    2. Re:Methods for gathering Pirated Music Data by Reziac · · Score: 5, Insightful

      My own experiences with free vs purchased music:

      Back around 1980, I was a DJ. I had access to a HUGE vinyl library and a high-end cassette recorder -- so I could tape whatever I wished.

      Until a year ago I had better online access, and could download whatever I wished. Since then I've moved and my connexion speed went to hell, so I've stopped downloading music.

      There have been two periods in my life when I *bought* a lot of music: when I was DJing, and when I had good download access. Conversely, I *didn't* buy any music when I had NO access to free music.

      On thinking about it, the reason is simple: when I have good access to free music, I also get to sample lots of stuff I've never heard before, that I can listen to when I'm in the mood to care about it (not just when some crap radio station sneaks a song in between commercials). And I want to own what I want listen to.

      Since I've not been able to reasonably download music (26k tops is not "reasonable"), I've not bought a single CD. Coincidence? You decide.

      --
      ~REZ~ #43301. Who'd fake being me anyway?
    3. Re:Methods for gathering Pirated Music Data by stephenbooth · · Score: 1
      Personally, I have purchased more music since buying a cd burner.

      Same here.


      At one point Liebowitz seems to be saying that the factor that's stopping mass duplication is people not wanting to be bothered in assembling the CDs from the MP3s. Personally that's the principle use I burn audio CDs for. I go out and buy a CD with, say, 12 tracks (probably dropping something like 14-20ukp ($19-$28) doing so). Of those 12 tracks I'll probably really like 2, like another 3 a bit and dislike 4. So the first thing I do when I get the CD home is to rip the songs I like on to my PC, put then into playlists with songs from other CDs I've bought then burn a CD of just songs I like. A mix 'tape' but digital.

      Stephen

      --
      "Don't write down to your readers, the only people less intelligent than you can't read" - Sign on Newspaper Office Wall
    4. Re:Methods for gathering Pirated Music Data by mcwop · · Score: 2

      Or maybe my buying more and your buying less is cancelling each other out. But that is my point. A lot of the data is bad and causality arguments are running rampant.

      --

      "I don't think it's selfish, to eat defenseless shellfish." -NOFX

    5. Re:Methods for gathering Pirated Music Data by rommi · · Score: 1

      I remember when I used gnapster for the first time. I found Apoptygma Berzerk's "Welcome to Earth". I bought the album the very next day.

      I think it was PRETTY GOOD ADVERTISEMENT.

    6. Re:Methods for gathering Pirated Music Data by Reziac · · Score: 2

      Free samples: the most powerful of all advertising media!!

      --
      ~REZ~ #43301. Who'd fake being me anyway?
    7. Re:Methods for gathering Pirated Music Data by JBv · · Score: 1

      Ditto.

      Last CDs I bought were curtesy of Morpheus. Glad they stopped in time before i spent too much money.

      I've got enough of good old cds, conveted to mp3, that play seemesly in my xmms.

    8. Re:Methods for gathering Pirated Music Data by Dionysus · · Score: 1

      That's my experience too. Bought the Dave Matthews Band CD after downloading some of their songs from Napster.

      The thing is, most of the songs on Napster are so poorly encoded, I rather just buy the CD and reencode it myself.

      But since I lost my highspeed connection (moved), I haven't been able to download any songs, so I haven't bought any CDs

      --
      Je ne parle pas francais.
    9. Re:Methods for gathering Pirated Music Data by jjoyce · · Score: 1

      Not that your story isn't valid, but we have hearing this anecdote since as long as the RIAA has been complaining.

    10. Re:Methods for gathering Pirated Music Data by RegularFry · · Score: 1

      Hearsay is only hearsay until everyone's saying it...

      --
      Reality is the ultimate Rorschach.
  8. Don't be so sure.... by Procrasturbator · · Score: 2, Funny

    Now that I've downloaded the entire soundtrack to Glitter, I won't buy the CD! Ha!

    1. Re:Don't be so sure.... by Anonymous Coward · · Score: 1, Funny

      Now that I've downloaded the entire soundtrack to Glitter, I won't buy the CD! Ha!

      I don't think anyone will buy that CD, but I doubt piracy is the real reason.

    2. Re:Don't be so sure.... by macdaddy357 · · Score: 1

      The soundtrack to Glitter? Better delete that crap before it crashes your computer. It's bad bad bad!

      --
      How ya like dat?
    3. Re:Don't be so sure.... by Procrasturbator · · Score: 1

      Make all the insensitive comments you want. I'm too in love with it to be torn away.

  9. Another flip-flop with asymmetric publicity? by redelm · · Score: 2
    Is this another one of those high-profile pronouncements with a small-type retraction later? Will the RIAA and fellow-travellers publicise both, or will they just grab the headline?

    I would hope that authors and organizations have more respect for their reputations than to play this game.

  10. His positions.. by ObviousGuy · · Score: 1

    He supports Microsoft and supports digital piracy. The man is a modern day Renaissance man!

    --
    I have been pwned because my /. password was too easy to guess.
  11. Okay let's get the facts straight... by keep_it_simple_stupi · · Score: 2, Insightful

    I'm sick and tired of people arguing that this doesn't hurt sales. But while I believe it hurts sales, I don't believe it hurts them as much as the Record companies have been saying.

    I haven't bought more than 2 or 3 CD's in the last 3 years. I have downloaded probably 1000 or more mp3 files in that same time period. But this does NOT mean that I would have bought those files had I not downloaded them. I may have bought 10 or 12, but not all of them.

    So should they stop mass file sharing? Yeah probably. Will I be happy about it? Not one bit, but I'll accept it.

    Also in other news I heard yesterday on the radio that a couple of the labels will be selling singles online for $.99 and albums for under 10 bucks. If that happens, I wouldn't mind forking over the cash every now and then when there's something actually worth buying.

    Just my $.02

    1. Re:Okay let's get the facts straight... by emoeric · · Score: 1
      hey i heard that on the radio too!!


      and just to weigh in on the downloading issue, i gotta say that because of the large # of albums i've downloaded off p2p networks, i have gone to more and more concerts of the bands that i have found by downloading. the bands that i listen to get show revenue, and i usually pick up a shirt or hoodie if they are really good. Maybe i should be paying for the album, but i figure i'm reimbursing them in other ways (word of mouth too)

      --

      |---------------|
      practically an AC
    2. Re:Okay let's get the facts straight... by SirSlud · · Score: 5, Insightful

      Of course file sharing hurts sales. Just like double tape decks hurt sales. Just like not having a law preventing people from owning two VCRs hurts video sales. Just like photocopiers hurt the sales of sheet music.

      Technology changes things. In some ways better, in some ways worse. It changes peoples behaviour, and it changes the machanics of society.

      The question everybody should have been asking all along is, "Does it hurt sales so badly that nobody will want to make music?" The answer seems to be an overwhelming NO, so if thats the case, history suggests that we are should tolerate it until it finds its natural 'fit' within social behaviour and the economy. Just because it facilitates illegal behaviour does not mean that this illegal behaviour is going to have a negative impact on the market - and if you think about it, many discoveries, social patterns and values we hold up as examples of our progressive society started up as being illegal behaviour until we came to terms with its perceived threat and realized that many things we perceive as threatening or damaging can be channeled in a positive socioeconomic direction.

      --
      "Old man yells at systemd"
    3. Re:Okay let's get the facts straight... by MartinG · · Score: 3, Insightful

      I'm sick and tired of people arguing that this doesn't hurt sales

      Well thats interesting, but are you going to tell us why? Just because _you_ have bought fewer CDs because of your access to downloaded music doesn't mean others have. Personally speaking I can say honestly that I have bought more music as a result of first sampling it from downloads. Many of my friends do the same.

      What I have said here proves nothing. It's just one single anecdotal example, just as your example is.

      I'm not saying you're wrong about downloads hurting sales, just that you haven't provided any convincing argument or evidence to back up what you say. "I buy less therefore everyone must buy less" is not enough and doesn't convince me.

      --
      -- MartinG To mail me: echo kewyjlcxyzvjfxbqwh | tr bcefhjklqvwxyz .@adgimnoprstu
    4. Re:Okay let's get the facts straight... by Peyna · · Score: 2

      Assuming that "selling online" means in mp3 format, and that they will probably be 128 kbps, then there is no way I am going to pay $10 for something that is of inferior quality.

      I too, haven't bought more than 2 or 3 CD's in recent years, but it has nothing to do with downloading music. I have a 4 gig mp3 collection; all of which are my music cds converted to mp3s. I only have 1 cd that was downloaded and ripped; however, that is because I lost the cd I originally purchased.

      So, why haven't I bought many cds recently? Because there isn't anything out there that appeals to me right now. None of my favorite bands have put out anything new and exciting, and the rest of it is basically crap that I don't care to listen to.

      I blame those producing the music for not making me like it enough to want to buy it for their "loss" of income.

      --
      What?
    5. Re:Okay let's get the facts straight... by MadAhab · · Score: 3, Insightful
      Read the article again. If every download was a lost sale, as they record industry claims (and as you appear to believe), then record sales for the last year should have been in NEGATIVE tens of billions. Obviously that hasn't happened. Wake the fuck up and smell the coffee.
      So should they stop mass file sharing? Yeah probably. Will I be happy about it? Not one bit, but I'll accept it.
      No, "they" fucking shouldn't. Anytime you say something like that, ask who "they" are. Because they become the watchers, and who is going to watch them? No one, and then "they" will be charging you to transfer tapes that you yourself made of your brother's wedding (via convenient micropayments, natch). If you don't see a problem with that, please do the world a favor and wear a helmet 24/7.

      This dude's argument on fair use is also total fucking horseshit, once you realize that it's not about text. Consider the Mona Lisa. To translate fair use as he understands it for text (read a paragraph, retype it) into images, audio, or video, you'd have to repaint the painting yourself or reshoot the movie yourself. Wow, that's great policy, legislate technology back into the dark ages! That's the hallmark of good policy! Bring back the buggy whips! Hey, let's make this whole thing really simple and just shoot those whining academics! Those dangerous intellectuals!

      I'm so sick of neanderthals like you requesting that we legislate away the future in order to preserve the questionable past. Go crawl back in your cave, caveman.

      --
      Expanding a vast wasteland since 1996.
    6. Re:Okay let's get the facts straight... by anthony_dipierro · · Score: 2, Insightful

      But the artists aren't the ones that make the money off the CDs, the record companies are. So unless you're only pirating live music, you are costing someone money. Someone who probably doesn't deserve the money, but someone nonetheless.

    7. Re:Okay let's get the facts straight... by Anonymous Coward · · Score: 0

      Yes, let's get the facts straight: you BELIEVE file sharing hurts record companies. And you HEARD that a company was selling singles. And YOU have bought less music now that you're downloading music.

      Did you even read the article? Did you read the actual paper? I did.

      Liebowitz is a professor in economics. He's a member of the Cato Institute. He says file sharing doesn't hurt the record companies bottom line. He has studies to support this. You have anecdotes to support your stance. These are all facts.

      The next time you purport to "get the facts straight", why not try using some actual facts next time?

    8. Re:Okay let's get the facts straight... by Shelled · · Score: 2

      I presume the irony was unintended. You rant how people are being selfishly obtuse arguing that downloads don't hurt the record companies, then end the post with ".....I heard on the radio....." Compensating artists for air play is a relatively recent development in the history of radio. For decades prior the industry did exactly what you say should have caused the music industry fatal damage, shared their product for free. I think we'd both agree it didn't. Your argument states a case and then provides one of the most effective counter examples as an aside.

    9. Re:Okay let's get the facts straight... by liquidsin · · Score: 3, Insightful

      Radio has given me 'free' access to thousands of songs, grouped by genre. It may not be entirely free, since there are adverts, but I change stations during commercials (I know, I'm a thief...). If I didn't have access to this 'free' music, I would never get to sample different artists / genres, and wouldn't purchase any of their music. File sharing works much the same. Say I hear about artist 'x', in a review, on the radio, whatever. If I can sample more of this artist's music without forking over $20, that's great. If I like it, I buy it. If not, I don't. This pisses off the RIAA since they've been using this business ploy for years. They hook you with one good song, and never tell you that the rest of the disc is utter trash. They want you to spend your money to find that out. This is how they make money. Downloading music is no different than me going and standing in a record store to preview a disc, except that I get to keep copies of what I download. Mind you, most of them are 128 kbit garbage, but I have them. They're not a substitute for a cd. If these idiots would realize that they're getting free advertising out of this, we could end the nonsense. But they don't want you to find out their product sucks until after you buy it, and that's why they'll fight tooth and nail over file sharing.

      --
      do not read this line twice.
    10. Re:Okay let's get the facts straight... by anthony_dipierro · · Score: 1, Troll

      Do you honestly believe what you are arguing? Do you honestly believe that it's possible that P2P networks cause people to buy more music?

      Granted, I don't think it can be proven one way or another, but it logically makes sense to me that great numbers of people would listen to mp3s rather than buy the CD. It doesn't make logical sense that many people would buy more CDs because of P2P networks.

      Let me ask you this: why have you bought more CDs when you could have just downloaded the mp3s? Is it a morality issue? I'm really curious, because to me it seems completely irrational to donate your money to the company who makes the plasticware when you don't want the plasticware to begin with.

    11. Re:Okay let's get the facts straight... by pubjames · · Score: 4, Insightful

      I'm sick and tired of people arguing that this doesn't hurt sales. [...]

      I don't own a lawnmower. I borrow my neighbours. This affects sales of lawnmowers.

      So should they stop sharing of lawnmowers? Yeah probably. Will I be happy about it? Not one bit, but I'll accept it.

      I sometimes hitch a lift with a friend rather than use my own car. This affects petrol sales.

      Should they stop people hitching lifts? Yeah probably. Will I be happy about it? Not one bit, but I'll accept it.

      I often drink water out of the tap, rather than buying it. This affects bottled water sales.

      Should they stop people drinking out of taps? Yeah probably. Will I be happy about it? Not one bit, but I'll accept it.

      I sometimes think about naughty things, rather than looking at porn. This affects porn sales.

      Should they stop people thinking naughty things? Yeah probably. Will I be happy about it? Not one bit, but I'll accept it.

      (I'm not sure what my point is. Draw your own conclusions...)

    12. Re:Okay let's get the facts straight... by Dephex+Twin · · Score: 2
      I'm sick and tired of people arguing that this doesn't hurt sales. But while I believe it hurts sales, I don't believe it hurts them as much as the Record companies have been saying.

      I haven't bought more than 2 or 3 CD's in the last 3 years. I have downloaded probably 1000 or more mp3 files in that same time period. But this does NOT mean that I would have bought those files had I not downloaded them. I may have bought 10 or 12, but not all of them.

      Well, then that proves it!

      What if I said that the time when I was buying the most CDs was during and right up until the end of Napster? I used to download songs from all sorts of different artists... songs I had heard at one time and liked, people I was always meaning to get into but never got around to it, etc. And I ended up having a constant flow of new CDs coming in from CDNow. When Napster died then I didn't feel like finding a new service, and then I went down to 56k. I didn't buy any CDs up until a couple weeks ago. And I just got broadband a month ago. Whaddya know?

      What the heck is going on? My story is totally different. We have some sort of paradox!

      Or...

      Maybe a single person's anecdote is worth absolutely nothing as far as proving or disproving the MP3 situation. Maybe you really don't know whether music sales are really hurting or not. Yes, there might be certain instances where you would have bought a CD, but downloaded an MP3. Then there is another instance where the MP3 leads to a download. Nobody knows if this evens out, or perhaps even causes more CD sales. You just don't know, ok?

      What we do know is that the music industry execs are currently still filthy rich, and if they remain filthy rich, then I'm not really interested in finding out if they could have possibly been 5% richer and filthier if only there weren't MP3s.

      mark
      --

      If you want to make an apple pie from scratch, you must first create the universe. -- Carl Sagan
    13. Re:Okay let's get the facts straight... by gartogg · · Score: 2

      There is no direct link between the number of CD's downloaded and the number bought, but there is a different type of evidence: in 1999, Music sales were up 10% in the us, and there wasn't WIDESPREAD piracy. In 2001, for the first time ever, CD sales were down, (by 5%) and the reduction in growth rate only dates to 2000, as pirating began to gain popularity.

      Are the prices fair? no.
      Is stealing wrong? yes.
      Is there some middle ground? probably.
      (Do I pirate Music? Not Anymore.)
      Of course, in reality, piracy increases music sales, industry is good for the environment, and smoking is good for your health, so this is all irrelevant.

      PS. Are you really dumb enough not to be able to figure this out yourself? or are you just being a jerk asking someone to produce documentation?

      --
      I'm a concientious .sig objector.
    14. Re:Okay let's get the facts straight... by Evro · · Score: 1

      I haven't bought more than 2 or 3 CD's in the last 3 years.

      Nor have I, but of those CDs that I have bought, I've been very satisfied with all of them. If I hadn't had the opportunity to listen to the tracks on MP3 beforehand, I'm pretty sure my satisfaction rate would be closer to 25-50%, as before the MP3 phenomenon started, most of the albums I bought had one or two decent songs and 10-12 tracks of garbage.

      If the record company's sales are down, maybe they should try increasing the quality of their product and lowering prices -- you know, how businesses are supposed to increase sales? If neither of these options is viable for them then perhaps it's time for them to fold up shop. While I do have some ethical problems with downloading MP3s, I think the fact that the MP/RIAAs have convinced everyone that "downloading==piracy" is scary. How did "copyright infringement" manage to become equivalent with "One who robs at sea or plunders the land from the sea without commission from a sovereign nation."? I don't even think associating downloading with theft is appropriate.

      The content industries seem to think that they should be immune to market forces and are trying to get the government to impose laws to ensure their profits. The problem is that profitability is not a right. If it were, every failed dot-com would still be around, sustained by tax dollars. There is no reason musicians should be millionaires. There's really no reason anybody should be a millionaire. Most people who are wealthy earn it. Then there are (pop) musicians, whose success is determined mostly by record companies' marketing dollars. Even baseball players are more deserving of their money than most musicians -- they do what they do much better than most other people.

      Like I said, I'm still not totally sure where I stand on the ethics of MP3 downloading, but I lean about 90/10 in favor of it, for all sorts of reasons.

      --
      rooooar
    15. Re:Okay let's get the facts straight... by Kintanon · · Score: 2

      Quality and Accessibility. I like Kid Rock, I wish to own his latest CD. I have downloaded many of the tracks from his latest CD in mp3 format. The quality is not up to my standards, even though it's encoded at 128. I also don't have a way of making my mp3s travel with me. Perhaps that will change in the future, but I will still purchase CDs so that I can rip them at a decent quality level for my own listening pleasure. I also like owning CDs. I own almost every REM CD ever released. I'm very happy about that. I also have most of those tracks in mp3 format. Many people hold these same views on quality of music.

      Kintanon

      --
      Check out JoshJitsu.info for Brazilian Ji
    16. Re:Okay let's get the facts straight... by Dephex+Twin · · Score: 3, Insightful
      I'm really curious, because to me it seems completely irrational to donate your money to the company who makes the plasticware when you don't want the plasticware to begin with.

      There's your flaw. Isn't it obvious? Some people want the CD. Why? You can hold the CD. It has cover art and liner notes. It has the whole album as the artist (theoretically) wants it. It is in full quality, and can be copied to MP3s if desired. A person can build their CD collection (people enjoy this). You can just go out and buy the CD and listen to it, you don't have to search for it and wait to download it and burn it.

      Nobody is donating anything. Many people find these reasons good enough to buy music from their favorite artists. I doubt that even 1% of people who buy CDs based on MP3s they downloaded are doing so for any sort of "moral" or guilt reasons.

      mark
      --

      If you want to make an apple pie from scratch, you must first create the universe. -- Carl Sagan
    17. Re:Okay let's get the facts straight... by Dephex+Twin · · Score: 4, Interesting
      but there is a different type of evidence: in 1999, Music sales were up 10% in the us, and there wasn't WIDESPREAD piracy. In 2001, for the first time ever, CD sales were down, (by 5%) and the reduction in growth rate only dates to 2000, as pirating began to gain popularity.
      ...
      Of course, in reality, piracy increases music sales, industry is good for the environment, and smoking is good for your health, so this is all irrelevant.

      Of course, everything is black and white and nothing is complicated. So when the music sales went down in 2001, of course the first recession in years after a long economic boom and a drop in the quality of music, as well as people getting increasingly pissed at the music industry couldn't have had anything to do with any of this. It's obvious what was the real cause. No reason to even consider the possibility of anything else.

      mark
      --

      If you want to make an apple pie from scratch, you must first create the universe. -- Carl Sagan
    18. Re:Okay let's get the facts straight... by MartinG · · Score: 2

      makes sense to me

      What the hell has making sense go to do with it?
      It "makes sense" that the earth is flat, but that doesn't make it true.

      It doesn't make logical sense

      What the hell is "logical sense"? You keep mentioning logic, but so far have made very little use of it.

      it seems completely irrational

      Again, what it _seems_ is unimportant. How about facts and proper argument? We can theorise all we like about what people _would_ do, but it doesn't prove anything.

      Consider this quote:
      "It is a capital mistake to theorise before one has data. Insensibly one begins to twist facts to suit theories instead of theories to suit facts."- Sherlock Holmes

      ..and in this case, NONE of us have much data.

      --
      -- MartinG To mail me: echo kewyjlcxyzvjfxbqwh | tr bcefhjklqvwxyz .@adgimnoprstu
    19. Re:Okay let's get the facts straight... by gartogg · · Score: 2

      Oh, I get it, you like not having to pay for things!
      OK, that AND cursing.

      TANSTAAFB (There Ain't No Such Thing As A Free Beer!)
      Basically, what you are advocating (aside from your request that the previous poster move out of his house or apartment and into a cave that I assume is conveniently nearby) is that you should get free music because the music industry is overprotective.

      However, your logic is as bad as your command of Invective:

      You refuted an arguement different than the one presented (because HE did not say that each download = a lost sale, "The Industry" did, supposedly.)
      You then Argued by exageration that preventing theft is a slippery slope, a position I don't understand, as no-one has discussed methods of preventing theft at this point in the discussion.
      You once again Argued by exaggeration that fair use is... something, which I don't quite follow, as it does not proceed from the post before yours.

      So, to synopsoize your comment, basically you:
      A) Enjoy insulting others
      B) Have nothing original to say

      (Ob.Re-digression.back.to.the.subject.at.hand)

      Why do people not understand that most people are not really interested in finding "new and exciting" music, and just want to listen to bands and songs they hear all day on the radio. (Has anyone noticed the proliferation of Boy bands and Eminem on Kazaa or whatever sharing software you use?) Oce the 5 CD's someone wants are burned for them, they do not need to buy the CD, and therefore don't. Lost Sale.

      Obviously this is not the only paradigm out there, and many people are legitimately looking for new music, but for everyone else (a vast majority, I should add) downloading is simply theft of music you want anyways, but would prefer not to pay for.

      --
      I'm a concientious .sig objector.
    20. Re:Okay let's get the facts straight... by anthony_dipierro · · Score: 1

      CD-Rs are much cheaper than CDs, and if you use an audio-CD-R then it's legal for you to burn the copy. As for the time and difficulty, sure, that's true, but it's only difficult and time-consuming because the RIAA has made it difficult and time-consuming by winning their lawsuits.

    21. Re:Okay let's get the facts straight... by Rogerborg · · Score: 2
      • I'm sick and tired of people arguing that this doesn't hurt sales

      Prove that it does. Find any evidence - any evidence - that it has reduced sales. Anecdotes don't count. Common sense doesn't count. Your opinion doesn't count.

      Show us the evidence.

      • Also in other news I heard yesterday on the radio that a couple of the labels will be selling singles online for $.99

      No, they will be renting you access to SDMI secured data stored on your hard drive. Download the Liquid Audio player and read the license. Access to the tracks is conditional on a renewable license tied to your credit card. It's a rental locker system, and they can take away the keys at any time. Wake us up when they actually offer mp3's, will you?

      --
      If you were blocking sigs, you wouldn't have to read this.
    22. Re:Okay let's get the facts straight... by gartogg · · Score: 2

      If you want evidence, you have it. during the many other recessions that have occured, CD sales didn't even slowdown (the growth rate in sales continued to increase, in fact.) Historically economic Slowdowns only reflect themselves in certain types of luxury sales, esp. High ticket items. Entertainment usually does well. And of course, people are only pissed at the industry now, since they realized they didn't have to pay money...

      As for a drop in the quality of music, I'm not saure what yuo are referring to, because music could not get any worse then it has been in the last 20 years, throught the 80's and most of the 90's. In any case, the evidence is NOT straightforward, but it IS evidence, and that's all I ever said it was. If you want proofs, try math instead of the humanities.

      --
      I'm a concientious .sig objector.
    23. Re:Okay let's get the facts straight... by anthony_dipierro · · Score: 1, Troll

      We can theorise all we like about what people _would_ do, but it doesn't prove anything.

      Nothing can be proven. The only thing that matters is what makes sense, given the observations.

      It is a capital mistake to theorise before one has data.

      Worked for Einstein.

    24. Re:Okay let's get the facts straight... by MartinG · · Score: 2

      something for you to think about.

      10% is much higher than the increase rate of the population.
      If it did stay at 10% can you work out what would eventually happen? Not so long in the future that would mean everyone buying every cd that comes out. shortly after, it would mean some people buying two copies, and so on.

      In any case, there is a classic logical fallacy in what you said.

      "If a happened it would cause B. B happened, therefore A caused it"

      "If an increase in piracy happened it would cause sales to increase less. Sales increased less, therefore an increase in piracy caused it"

      A classic logical mistake.

      --
      -- MartinG To mail me: echo kewyjlcxyzvjfxbqwh | tr bcefhjklqvwxyz .@adgimnoprstu
    25. Re:Okay let's get the facts straight... by LogicBroker · · Score: 1
      So unless you're only pirating live music, you are costing someone money.

      I know I'm slightly/very off-topic here, but 'pirating' live music is nearly impossible. As far as I'm concerned, in order to pirate something, you have to be able to purchase it. Out of all the live shows I've recorded and traded for, maybe one or two have eventually been released on as a commercial CD. And you know what? I rushed out a bought a copy of the live CD to show support for live releases.

      Before the RIAA decided that this whole 'Internet' thing was going to make them hire some more lawyers, they were busy sending out cease and desist letters to people trading analog tapes of live shows. Silly industry.

      broken hearts want broken necks ~ modest mouse

    26. Re:Okay let's get the facts straight... by MartinG · · Score: 1

      Worked for Einstein.

      Speaking as someone with a degree in Physics (not that that makes me any more right of course) I would say not. I assume you are talking about relativity, in which case he had a phenomenal amount of data which he used before producing any theory. It is true however that his theories were not heavily tested until later.

      --
      -- MartinG To mail me: echo kewyjlcxyzvjfxbqwh | tr bcefhjklqvwxyz .@adgimnoprstu
    27. Re:Okay let's get the facts straight... by MarkusH · · Score: 2

      Let's say I budget $50 for buying CD's. I go and download music, checking out different bands, different music that I may not have listened to before. Now what?

      I still have my $50, budgeted to purchasing CD's.

      So I go out and purchase bands that I really liked, or buy similar music styles that I haven't heard before the download. Perhaps I couldn't get a good quality download. Perhaps actually owning the physical medium that I can do with what I want is more important than having it as a bunch of bits on my computer.

      Here is a secret: The more music you listen to, the more you listen to music. You enjoy having music play in the background. You listen to music in the car. If you don't have music playing, something is missing. If you make music easy to listen to, then you make a music fan. And what do music fans do? Why, they use their disposable income to buy music.

      (Okay, they use it to purchase better sound systems, use it to purchase tickets to shows, etc. I don't think Sony minds too much that you use your money to purchase its stereo system instead.)

    28. Re:Okay let's get the facts straight... by anthony_dipierro · · Score: 1

      As far as I'm concerned, in order to pirate something, you have to be able to purchase it.

      Contact ASCAP (or is it HFA?) to arrange for a statutory license for the digital audio transmission of the artist's song.

      Before the RIAA decided that this whole 'Internet' thing was going to make them hire some more lawyers, they were busy sending out cease and desist letters to people trading analog tapes of live shows.

      I highly doubt it since the RIAA almost never owns the rights to the live version of the song.

    29. Re:Okay let's get the facts straight... by Dephex+Twin · · Score: 2
      CD-Rs are much cheaper than CDs, and if you use an audio-CD-R then it's legal for you to burn the copy.

      And building your own computer is much cheaper than just buying a standard model from Gateway... yet most people don't bother. You may say that creating a CD from downloaded MP3s from start to finish is much easier, but remember that you are posting to Slashdot.

      mark
      --

      If you want to make an apple pie from scratch, you must first create the universe. -- Carl Sagan
    30. Re:Okay let's get the facts straight... by srvivn21 · · Score: 1

      Well said.

    31. Re:Okay let's get the facts straight... by anthony_dipierro · · Score: 1

      I just think that if napster had won its case against the RIAA, downloading albums would be as simple as typing in the name of the album, and burning them would be as simple as clicking a button.

      MP3s are hard to find because decentralized systems are harder to make. CD-Rs are hard to burn because software which downloads MP3s from a P2P network and burns them for you is illegal.

    32. Re:Okay let's get the facts straight... by Dephex+Twin · · Score: 2

      My examples were not meant as direct counter-arguments, they were only ideas that show how there are a lot of factors involved.

      Yes, normally the entertainment industry doesn't get hurt in a recession like other industries. But don't forget that there had not been this kind of attack on American soil since the civil war in the mid 1800s. Don't forget that CD prices are actually continuing to rise.

      My point was there are a bunch of factors, and there are a bunch more that I didn't mention.

      So saying that there was a 5% drop in music sales, or however much, doesn't mean anything. It is not even an argument in favor of the idea that MP3s are hurting the industry. Perhaps, with everything else going on, the fact that there is only a 5% drop is an argument that this isn't the case (like what was stated in the article).

      I'm not saying my ideas prove things, I'm saying that the record sales data really aren't that simple, whether they are intended to prove anything or not.

      mark

      --

      If you want to make an apple pie from scratch, you must first create the universe. -- Carl Sagan
    33. Re:Okay let's get the facts straight... by Dephex+Twin · · Score: 2

      Yes, but if all the RIAA wanted was that, then they should be happy now, right? I mean, we agree it currently is an inconvenience. So... why are they still raving just as much or more? It's because they want to go beyond that, beyond what I think is fair.

      mark

      --

      If you want to make an apple pie from scratch, you must first create the universe. -- Carl Sagan
    34. Re:Okay let's get the facts straight... by anthony_dipierro · · Score: 2

      Speaking as someone with a degree in Physics (not that that makes me any more right of course)

      to someone who just got his certificate to teach High School Physics.

      I assume you are talking about relativity, in which case he had a phenomenal amount of data which he used before producing any theory.

      He had data, mainly that the speed of light was measured to be the same in all inertial frames of reference. But he didn't have any data regarding gravitational lensing, time dilation, or nuclear fission.

      I have a whole lot of data about the way humans act. They tend to not pay for something when they can get it for free unless they have a reasonable chance of getting caught and getting "in trouble". Yes, I will adapt my reasoning if I am presented with evidence that it is faulty, but I haven't been presented with any such evidence.

      In any case, you haven't answered my question. Do you honestly believe that P2P networks cause people to buy more music? Or are you merely arguing that it's possible?

    35. Re:Okay let's get the facts straight... by MsGeek · · Score: 2
      And building your own computer is much cheaper than just buying a standard model from Gateway... yet most people don't bother.

      Not true...not true at all.

      "Beige Box" no-name PCs are still cheaper than the name-brands. And even when they aren't, you have the advantage of usually being able to "spec out" your PC before they build it for you. The big names like Gateway and Dell and HPaq usually look for the cheapest fsckn stuff you can buy as part of their specs for their machines. Who still uses NVidia TNT2 or ATI Rage Pro video chipsets in their machines? THEY do.

      It's way better to have control over what you put into a computer. It's even better to build it yourself. But that's just me. Some people have time constraints which mean that they can't even think of taking time out to build. Some people don't have the confidence to do it. That's why the good Goddess made the Friendly Neighborhood Screwdriver Shop.

      --
      Knowledge is power. Knowledge shared is power multiplied.
    36. Re:Okay let's get the facts straight... by Dephex+Twin · · Score: 1

      I was also saying that most people don't bother building their own machines. Don't we agree here?

      mark

      --

      If you want to make an apple pie from scratch, you must first create the universe. -- Carl Sagan
    37. Re:Okay let's get the facts straight... by anthony_dipierro · · Score: 2

      Yes, but if all the RIAA wanted was that, then they should be happy now, right?

      Just because you have a straight flush doesn't mean you should start jumping up and down screaming.

      It's because they want to go beyond that, beyond what I think is fair.

      Maybe. Or maybe it's just like NYC traffic. You have to try to cut off the car in front of the car you actually want to get behind.

    38. Re:Okay let's get the facts straight... by OxOx · · Score: 1
      OK. I'll answer your question.

      Do you honestly believe that P2P networks cause people to buy more music? Or are you merely arguing that it's possible?

      Yes, I believe that most p2p users buy more music after using the network than they would have in the absence of the network. Some don't, of course, but many do. Anecdotal evidence seems to support this - CD sales increased when Napster was alive and kicking, and only started to decrease after Napster was killed. Some of this is due to changes in the economy, but not all. My (unsupported) theory? The p2p=CD sales connection is strongest in the casual user, who downloads occasionally. Napster was easier to use, so it had more causal users. Me, for instance. My Napsterized MP3 collection numbers in the dozens, not thousands, but 90% led to the purchase of a CD. Kazaa et al are a pain in the ass. I don't use them, and I rarely buy CDs.

      I have a whole lot of data about the way humans act. They tend to not pay for something when they can get it for free unless they have a reasonable chance of getting caught and getting "in trouble".

      No, you are wrong. Humans pay for something when the value of an item exceeds its cost. All items have costs, even "free" ones. Take a downloaded MP3 burned to a CD. It has opportunity costs, since it takes me time to (a) find (b) download and (c) burn. It also has "will I get busted?" costs. It has loss of quality costs. How you value these things is a personal matter. In my case, the costs of making my own CDs from "free" p2p networks>regular RIAA-supplied CDs. The costs would still be higher if I had a letter signed in blood by Hillary Rosen that the RIAA would leave me alone. YMMV. It is way too simplistic to say people won't pay for "free" stuff if they don't think they'll get busted.

    39. Re:Okay let's get the facts straight... by MartinG · · Score: 1

      Do you honestly believe that P2P networks cause people to buy more music?

      I'm honestly undecided. I do know however that it's made me buy more, and that's true for several others I know. I also know others that only ever download music and never buy it, but many of them never bought it before anyway.

      But I'm less inclined to believe what I think happens based on reasoning and intuition and more inclined to believe the statistical facts. It's just that in this case, although the facts may be clear, what they mean is far from it. They can be interpreted to suit almost any view.

      Our comparison with the exact science of physics is not useful though, I think. In physical sciences, experiments tend to be repeatable when done properly. For example, Einstein found the same relativistic effects wherever and whenever he looked, but we look around in this situation and we have all different people saying and doing all different things. Some may be lying ,we just don't know.

      In other words we just do not have reliable data with which to work. All I am certain of is that when I hear someone say "file sharing reduces sales" or someone say "file sharing increases sales" then that belief is more faith based than reason based unless they have been closely monitoring millions of individuals.

      To sum up by point in a few words:
      If anyone says that are anywhere sure one this issue, one way or the other, then they are either lying, biased, or have arrived at their opinion by some illogical means.

      Fact: some people buy more music because of file sharing.
      Fact: some people buy less music because of file sharing.
      Unknown: does the population as a whole buy more or less because of file sharing? I expect a cynic would say less and an optimist would say more. Both views are worthless without sufficient _data_

      --
      -- MartinG To mail me: echo kewyjlcxyzvjfxbqwh | tr bcefhjklqvwxyz .@adgimnoprstu
    40. Re:Okay let's get the facts straight... by LogicBroker · · Score: 1
      Copy of 10/99 LA Times Article discussing the RIAA going after tapers and bootleggers.

      Quote: "We've sent out thousands of cease-and-desist letters," Creighton said. "If we find they keep doing it again, we'll take appropriate action."

      Never doubt the RIAA.

    41. Re:Okay let's get the facts straight... by Dephex+Twin · · Score: 2
      Maybe. Or maybe it's just like NYC traffic. You have to try to cut off the car in front of the car you actually want to get behind.

      That's an interesting point. But I think some of the other things that they do indicate they really are trying to cut off both cars, if that makes sense. Hard to ever really know for sure, though.

      mark
      --

      If you want to make an apple pie from scratch, you must first create the universe. -- Carl Sagan
    42. Re:Okay let's get the facts straight... by anthony_dipierro · · Score: 1

      Take a downloaded MP3 burned to a CD. It has opportunity costs, since it takes me time to (a) find (b) download and (c) burn. It also has "will I get busted?" costs. It has loss of quality costs.

      Don't you think that if napster had won the case against the RIAA that they would have addressed these issues? You admit yourself that napster was easier to use, so eliminating napster must have caused the costs of piracy to go up. This clearly would cause demand to go down, and the question is whether or not the increased publicity would cause demand to go up enough to exceed it.

      Here your guess is as good as mine, and I don't think it makes sense arguing the point. If you say that you honestly believe that napster caused CD sales to go up, then I guess I have to take you for your word.

    43. Re:Okay let's get the facts straight... by rlwhite · · Score: 1

      during the many other recessions that have occured, CD sales didn't even slowdown (the growth rate in sales continued to increase, in fact.) But you have to consider that this is the first recession in the US since CDs became the primary media for the mainstream market. The last time we had a real recession was about 1991-92. I don't have the market data, but I can say that no one in my family had a CD player until 1994, and I think that was about the time many people adopted it. Saying CDs haven't been hurt by recessions in the past is a moot point. If you can say the same thing for music record sales dating back to the 1920s or something like that, you'd have a point.

    44. Re:Okay let's get the facts straight... by wizstan · · Score: 1

      What i think is neglected in the article and arguement is that downloading does not so much decrease CD sales though there is a small element of that, as it changes the way people shop for CD's. People who download CD's tend to be the people who also buy the most CD's, and they buy based on what they have heard through downloads as opposed to advertising and hype.

      Try before you buy is the motto and it scares the record companies to death because artists are extremely unpredictable. Just ask how much it cost to eat Cline Dion's recording contract that was signed after titanic.

      The consolidation of Radio ownership and formats and the new Satelite radio are the tools the record companies hope to use to force their chosen hits down our throat, and peer to peer, try before you buy is what allows people to counteract that.

    45. Re:Okay let's get the facts straight... by macdaddy357 · · Score: 1

      Secretly recording a concert is called bootlegging, and it's a big underground business, recordings you can't get any other way. The record companies probably hate it as much as piracy though, they just don't call it that.

      --
      How ya like dat?
    46. Re:Okay let's get the facts straight... by anthony_dipierro · · Score: 1

      All I am certain of is that when I hear someone say "file sharing reduces sales" or someone say "file sharing increases sales" then that belief is more faith based than reason based unless they have been closely monitoring millions of individuals.

      I agree with you there, and really with all of what you just said. Really that's what I thought keep_it_simple_stupi was getting at when he said that he was "sick and tired of people arguing that this doesn't hurt sales." That's how I interpreted it, anyway.

    47. Re:Okay let's get the facts straight... by Anonymous Coward · · Score: 0

      huge, yeah. Its a major industry. Not on the order of say, reflective license plate covers to foil the traffic cameras, but still pretty big.

    48. Re:Okay let's get the facts straight... by anthony_dipierro · · Score: 1

      Never doubt the RIAA.

      Actually my first doubt would be that the quote was not in proper context in the news article you showed me. But perhaps it was. Bootlegging is a different crime from copyright infringement, so maybe the RIAA can somehow get involved in enforcing that law.

    49. Re:Okay let's get the facts straight... by keep_it_simple_stupi · · Score: 2

      Okay... I get everybody's argument that there is no _proof_ that file sharing is affecting sales. Fine.

      Maybe _my_ opinion is skewed because I happen to know how to use a PC with a CD burner attached to it, and I am not fanatical about the after quality of the audio.

      The way I see it, as another poster pointed out, is that sharing MP3's will spur sales by the casual user. Someone that downloads the music on a slow connection every now and then to see what's out there (remember, broadband is still far from the norm), or even someone with a fat pipe that doesn't know how to use a CD burner or views it as too much of a hassle will download to listen/preview and then buy a CD to listen to in the car or on his home stereo.

      Well... Technology naturally get's easier to use. Broadband is spreading. It is getting easier and easier to download and move straight to a CD - look at the MP3 playing car decks and DVD players!

      I view this as a very very slippery slope, and I think that it will only lead to more and more depressed sales... Not that I'm simpathetic to the RI Ass. Of America, but this is the way I see it.

      All I'm saying is that for someone who reads slashdot, unless they have a REALLY overactive conscience or can't get broadband or are a serious audiophile, it makes no sense that you would actually buy music when you can get it for free!

      Again, Just my $.02

    50. Re:Okay let's get the facts straight... by anthony_dipierro · · Score: 1

      It seems to me like neither side is being completely honest and fair. Yes, the RIAA is arguing that P2P costs them trillions of dollars, but the defense is arguing that P2P doesn't even have the potential to cost them anything. I think both arguments are silly, but I don't blame either side for making such arguments because that's just the way it works in the U.S.

    51. Re:Okay let's get the facts straight... by Sloppy · · Score: 1

      Do you honestly believe that it's possible that P2P networks cause people to buy more music?

      The stuff that people generally refer to when they talk about "P2P networks" -- Napster, Gnutella, etc -- suck for a variety of reasons, and it is harder to them to result in increased sales. But file sharing in general, is an entirely different thing, and Yes, it can definately increase sales. I'd even go beyond saying that it merely "can" to say that is does, when it's "keyed" correctly.

      Non-anonymous filesharing, such as what you get with web sites and ftp sites, fucking rocks! The reason is that the "search key" is the person who is doing the sharing, rather than the content itself. It becomes a recommendation by a stable entity (who begins to build a reputation with you, good or bad), for content you may not already be familiar with. (In theory, a reputation/review-based P2P program could work this well too, but I haven't heard of any yet.)

      When I download the "hymnals" at Metal Gospel, I am hearing an individual's (well, actually I think it's a pair of individuals) recommendations, who I have come to know.

      The problem with P2P stuff like Napster and Gnutella is that it's keyed wrong. It's not very useful for sampling music, because you have to already know who you're looking for. (It's sort of like having to look a word up in the dictionary to learn how it's spelled. By the time you've done it, it's too late. ;-) But that kind of crap is only one lousy aspect of file sharing. If you're using that to judge the bigger concept of filesharing, you're going to get a warped view.

      Let me ask you this: why have you bought more CDs when you could have just downloaded the mp3s?

      Because

      1. The mp3s are just a song or two from the CD, and I listen to a type of music where "filler" normally doesn't exist.
      2. The mp3s are lower quality than the "-q 7" oggs I'm going to make from the source CDs.
      3. I want the guys who made the music to make some more, or at least have a sales figure they can point at a later negotiation so that maybe they can make some money. Maybe you can call that morality, but I consider making metal more viable, to be something that is in my purely selfish interest.
      --
      As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
    52. Re:Okay let's get the facts straight... by Dephex+Twin · · Score: 2
      the defense is arguing that P2P doesn't even have the potential to cost them anything

      Well, maybe some foolish folks are, but certainly I never said that. Sure P2P has the potential to cost them. It also may very well not.

      There are a lot of things that could potentially happen, or not.

      So all I'm saying is, let's see what the heck happens before we react to it!

      What the music industry is really doing IMO, is trying to have control over the situation, it has little to do with keeping their "fair" revenues. By getting a stranglehold on the whole process, then if MP3s have a big effect that is bad, they can squeeze a little tighter and try to choke it. But if MP3s have a beneficial effect on the market, they can get the maximum benefits from this new aspect to the industry.

      I don't want them to have control over this, because I don't feel they play fair when they have the upper hand.

      mark
      --

      If you want to make an apple pie from scratch, you must first create the universe. -- Carl Sagan
    53. Re:Okay let's get the facts straight... by Prior+Restraint · · Score: 2

      [Einstein] had data, mainly that the speed of light was measured to be the same in all inertial frames of reference. But he didn't have any data regarding gravitational lensing, time dilation, or nuclear fission.

      If I understand it correctly, though, time dilation was an inevitable side-effect of Relativity. I mean, if you make c fixed regardless of the inertial frame of reference, then something weird has to happen to time.

      I guess what I'm trying to say is that Einstein didn't have a "Theory of Temporal Dilation", he had a "Theory of Invariant Light Speed". Observing whether or not time dilates becomes another means of testing that theory.

      (I have nothing to say about gravitational lensing, because I don't recognize the term, nor fission, because I don't know what it has to do with Relativity.)

    54. Re:Okay let's get the facts straight... by MrResistor · · Score: 2

      Perhaps you should try reading the article.

      The guy is an economist who released a paper detailing how download should be hurting record sales. All logic supports that conclusion, but apparantly there is more at play here than logic, because after spending more time with the numbers, this same economist says that there is effectively no damage done.

      Specifically, he says world-wide music downloads are 1.5 times world-wide music sales, or 5 times US music sales, and yet the reduction in CD sales has only been about 5%. If downloads actually hurt sales, the damage should be undeniable given the scale, but this is so small as to be indistinguishable from the effects of an economic recession. Being, as we are, in an actual economic recession, that's as close as an economist who values his integrity can come to saying music downloads don't hurt music sales.

      Let me reiterate that these are the conclusions of an actual economist after reviewing the actual, real world data.

      --
      Under capitalism man exploits man. Under communism it's the other way around.
    55. Re:Okay let's get the facts straight... by Anonymous Coward · · Score: 0

      way to miss the point!

    56. Re:Okay let's get the facts straight... by mattm76 · · Score: 0

      The question everybody should have been asking all along is, "Does it hurt sales so badly that nobody will want to make music?" The answer seems to be an overwhelming NO, so if thats the case...

      That's one BIG if. Record companies spend a lot of money to find new artists. If revenues fall to the point where it's ecomically infeasible for a particular record company to keep scouting for new artists, or it's too risky to sign them, then it will be much harder for artists to get discovered and eventually the supply will decrease. Now you might argue that people love to make music and it's not just to make money, but they still need food and shelter, and if it's not paying the bills, they'll put more into something that does.

      That's why we have copyrights. It takes part of the risk out of creating and releasing something that could otherwise be stolen. That's why they should be protected. It would be nice if more than just 2 of the 18 dollars we pay for CDs ended up in the artist's pocket and not some filthy rich record exec's, but hey, that's capitalism.

    57. Re:Okay let's get the facts straight... by Grunschev · · Score: 1

      during the many other recessions that have occured, CD sales didn't even slowdown (the growth rate in sales continued to increase, in fact.)

      I don't quite know how to respond to this. Can you tell me how the recession of the early 1970's impacted CD sales?

      All this time I've been thinking this is the *first* recession since the CD has gained market penetration exceeding other forms of music distribution. Silly me.

      Igor

    58. Re:Okay let's get the facts straight... by SirSlud · · Score: 2

      I'm sorry to do this, but let me destruct your two points:

      1) Sure, it might happen. Maybe, in a galaxy far away. Again, you can look, time and time again at new technologies destroying old ways of doing things. But for the sake of argument, lets say it happens. Sony, EMI, etc go bankrupt. Who cares? My indie label in my neighbourhood now has the advertising inventory and space (cause now the voices of Sony, EMI, etc are silent) to promote local talent and market it locally. I sure wouldn't disagree that the era of the superstar might end (until those grassroots labels become tommorows Sonys, EMIs). The industry right now is terribly expensive to maintain, but this isn't because you have to feed the artists! It's because marketing budgets have exploded. Production values are huge, but this is only a function of the giants running the show. Even if they go bankrupt, suddenly its alot more economical to represent, promote artists again, and there is alot more market to go around to smaller but definately 'livable' salaries. Think of how disproportionately well the mega stars get paid. There is alot of market that could be shared far more effectively, and youd get a more diverse selection of music to boot. But the idea of file sharing destroying the ability to make a living off being a musician is simply laughable. Whats truely unforutnate is that musicians will have a tough time reshaping the minds of the mass consumer to focus again on the music instead of the light shows. Finally, most of the money musicians make are from performances, etc. The money made from CD royalties does not constitute a big part of a musicians' paycheque (although it is a big part of the hollywood shadow writers' paycheques who pen the hits for the stars, but I've never been a fan of that setup anyhow.)

      2. Copyrights were put in place because governments were giving the Sony's and EMIs of the 1700s (the publishing houses) monopolies on cultural works. Copyrights were put in place to spurn distribution of cultural works and ensure that culture went back into the public domain. A copyright was designed to permit the author some return for their work, but make absolutely no mistake that they were put in place to _break_ the monopoly content creators had on that content, not the reverse as it is usually thought. The joke is that humans, by nature, wish to pay back, so artists, creators, etc, rarely needs laws to ensure they get paid if they make good shit. :) Think about it. The 'protection' is simply a story always cheerleaded by the current market champions to continuously increase the 'expriration date' on artistic works and thus propogate monopolies well past the death of the original creator. (Would you say we should be protecting the 2nd generation family of the artist because of, say, Mickey Mouse? Do they all deserve to live wikedly because an ansestor only had to have one good marketable artistic work?) Check out some of the history of copyright to get the full story.

      --
      "Old man yells at systemd"
    59. Re:Okay let's get the facts straight... by greydmiyu · · Score: 1

      Never mind that I've downloaded qutie a few MP3s and as a result my purchases of music went from maybe 10 a year to over 40-50 in the past several months. Why? Far easier to buy a CD and rip it for my portable MP3 player than to try to find all the tracks at a decent bit rate. I download samples and buy the ablums of those I like to rip at my leasure.

      Do I buy all? No. Do I buy far more than I did before? Yes. Are these things that one would hear on the radio? Doubtful.

      --
      -- Grey d'Miyu, not just another pretty color.
    60. Re:Okay let's get the facts straight... by apchar · · Score: 1
      during the many other recessions that have occured, CD sales didn't even slowdown

      Er.. How many other recessions have there been since CD's appeared in the late 80's ? Answer: one. That was in 91. But it was so mild that people are still arguing over whether it was actually a recession. One data point doesn't make for much of a trend.

      --
      ---Democracy is two wolves and a lamb voting on what to have for lunch.Liberty is a well armed lamb contesting the vote.
    61. Re:Okay let's get the facts straight... by Grunschev · · Score: 1

      Maybe _my_ opinion is skewed because I happen to know how to use a PC with a CD burner attached to it, and I am not fanatical about the after quality of the audio.

      And you're not interested in the art work, the lyrics, or any other information that might be on the CD or the inserts. One of my CDs even has an entire concert video on it. Not just a song, but an entire concert.

      All I'm saying is that for someone who reads slashdot, unless they have a REALLY overactive conscience or can't get broadband or are a serious audiophile, it makes no sense that you would actually buy music when you can get it for free!

      Your sample is too small. First, what percentage of the American population buys CDs? What percentage of the CD buying population uses a file sharing service? What percentage of file sharing users have CD burners and know how to use them? What percentage of that group are not bothered by the audio quality or lack of additional content in the package? Is the number of people represented by the last figure a tiny, tiny portion of the number of people represented by the first? This is how file sharing has had little to no negative impact on CD sales.

      What the RIAA is concerned with is all those numbers going up. But they've decided that instead of using these trends to leverage their business it's easier to fight the trend through legislation. Just the same way the movie industry tried to fight VCRs.

      Igor

    62. Re:Okay let's get the facts straight... by mattm76 · · Score: 0

      But the idea of file sharing destroying the ability to make a living off being a musician is simply laughable.

      1. Sorry for implying such a laughable idea, but I wanted to make the point that with reduced revenues caused by illegal file sharing, record companies will be forced to not sign and/or screw over more artists. If there are fewer record contracts floating around, fewer artists will be able to quit their dayjobs, and the music output, quality, and diversity will all decrease. The ability to make a living will definately still exist. It just won't be as rewarding for many artists.

      2. It doesn't matter why/how copyrights came about. Not paying for music that people released with the expectation of recieving something in return is just not right. Not paying for music reduces the incentive for people to make music, and the people who promote it. Intellectual property is still property, no matter if it's something your great grandfather created. If you create or own something of value, you should be able to sell it or be compensated for value people are deriving from it.

    63. Re:Okay let's get the facts straight... by garyrich · · Score: 2

      Well, that's you. I've bought maybe 10 CDs in the last year. I've downloaded hundreds. Would I have bought hundreds more if I couldn't have d/led them? No.

      I'm not going to buy some K-Tel "80's Hits" CD just so that my son can play "Safety Dance" in the car. He would have just done without. In either case Men Without Hats wouldn't have gotten any $$.I doubt they make anything from those K-Tel Cds anyway.

      I have certainly bought things only because I could get them from GNUtella first to sample. I'm still evil according to the RIAA. I'm fragmenting the market by enjoying j-pop that they don't own and importing CDs from Japan (DAMN... those are expensive) where their monopoly doesn't extend (yes, they have their own, yes they're just as bad). Next time I'm at the store I'll buy an Apohex Twin CD for the same reason - I sampled it first. Sad for the RIAA, I doubt they make mega $$ off him either. Too bad....

      Who is more typical, you or me?

      --
      -- your Web browser is Ronald Reagan
    64. Re:Okay let's get the facts straight... by rodionpunk · · Score: 1

      Wow, people are jumping all over this; perhaps I should stay out...nah, it's just karma.

      > Maybe _my_ opinion is skewed because I happen to
      > know how to use a PC with a CD burner attached to it,
      > and I am not fanatical about the after quality of the
      > audio.
      ...
      > All I'm saying is that for someone who reads slashdot,
      > unless they have a REALLY overactive conscience or
      > can't get broadband or are a serious audiophile, it
      > makes no sense that you would actually buy music
      > when you can get it for free!

      I know how to use a PC with a CD burner. I have burned CDs of MP3's before. (Gasp! Call the police!) I'm not fanatical about the quality of audio (I'm generally happy with 128K, though I often encode at 192, because I'm a geek and heard that was around the human threshold for notice), I have broadband, and I've often commented about (and had commented on) how I need more conscience. (I guess it goes without saying that I'm a Slashdot reader too.) Yet, I still buy CDs.

      Paradoxically, I bought more CDs when I used P2P services. When Napster was in full force, I was buying a CD every week. When I stopped using Napster, I stopped. When I started playing with Limewire and Gnutella, I started buying CDs again.

      Weird, isn't it?

      Let's dig for a point to all this! Um, I don't think I have one. Oh, let's make one up...people are weird. Even logical, rational, otherwise sensible people. They do weird things. The argument about whether or not record sales have been impacted, positive or negative, lacks sufficient evidence either way. Why did I buy more music when P2P was around? Who knows. Either way, we need more data.

      P.S. Here's another anecdote for you: I watched Lock, Stock, and Two Smoking Barrels, and liked the soundtrack so much, I went to a P2P service and downloaded it. Two hours later, I was on Amazon, ordering the CD. Anecdotes are a dime a dozen. Unless someone collects an awful lot of them, compiles them into a something statistically valid as a good sampling of people at large, and presents it in a report, they stand on their own, and can go both ways.

      That's my .02 American dollars!

    65. Re:Okay let's get the facts straight... by SirSlud · · Score: 2

      > Sorry for implying such a laughable idea, but I wanted to make the point that with reduced revenues caused by illegal file sharing, record companies will be forced to not sign and/or screw over more artists

      How can you possibly qualify this statement? Please find out about these reduced revenues .. 5% down last year, easily attributable to the recession. I think the problem is that people expect these media giants to just grow and grow and grow, and any time they dont grow, its simply just the cheaters. There are cheaters in every system dude. Everyone does something thats not exactly along the lines of the letter of the law. But you know what. The Eagles lived good. Very good. Much better than I will ever live, and I highly doubt they need my help, unless they pissed their money away, which is entirely their fault. So, even tho its covered by a copyright, I'm going to download it for free. Tough shit. I refuse to prop entire people's superstar lives up so I have hear a measly song a few times in my life. Same goes for most artists who've already lived lives for some reason we wish we could have. Well, we could stop propping them up so high, for starters. Think of it as equalization. IP is not a bike, it is not physical. It is an idea, and the author is never going to run out of copies like a factory would were all its inventory stolen.

      Plus, I think most struggling musicians (such as myself, and friends of mine, and people I know) want these media giants taken down a notch or two.

      And the mid-tier musicians who aint living the superstar life? Well, I buy their CD, of course, because I like to pay those who need it, not those that have it. You simply believe that suddenly, everyone will stop buying all CDs, or suddenly some artist's fanbase is going to entirely switch to downloading songs from filesharing apps. Have you ever seen any kind of social flock all of a sudden do the _exact_ same thing? There will always be people like me who ensure the system is balanced, that this monopoly gets no more powerful. If you only follow the creed of the successful, you will never enact change .. something which people tend to associate with progress. And if people dont like it? Fuck em, I'm a musician. Lots of musians have expressed support for filesharing. But enough, I'm a criminal, lock me up!

      --
      "Old man yells at systemd"
    66. Re:Okay let's get the facts straight... by SirSlud · · Score: 2

      Imagine it. No music. Nobody makes any music, cause its not profitable to make it. Humans retire music from their list of things they do because you will starve if you try being a musician. Hehe, you honestly think that could happen, do you? If no company existed to 'make' music, people in my town would make it, and people would pay to see it. Filesharing killing music cannot happen, because it would involve humans absolutely abolishing something they cant live without! Its as simple as that!

      --
      "Old man yells at systemd"
    67. Re:Okay let's get the facts straight... by mattm76 · · Score: 0

      Of course music would be around if record companies went by the wayside. There just wouldn't be as much. Your original point was based on the hypothesis that files sharing does not discourage music creation. When the the vast majority has cd-burners and cable modems, the record _corporations_ will be forced to take measures to keep their profits up. Either the honest people will have to pay more or the cheaters will have to be stopped. If record sales fall, the entire industry will suffer. You said it yourself in your first post:

      > Of course file sharing hurts sales.

      Your twisted sense of morality allows you to believe that stealing from a big faceless corporation is okay because paying to hear a measly song a few times in your life isn't worth it to you. It that's the case, don't listen to the music. Why should you pay a buck forty for a cup of coffee at startbucks if you might only benefit from it for a couple of hours? Only if there was a way you could get it for free. Hey, if it feels good do it. It's not hurting anybody. If more people thought like you, we all would be screwed.

    68. Re:Okay let's get the facts straight... by SirSlud · · Score: 2

      >It's not hurting anybody.

      Back in my world, we have a little thing called 'judgement'. Yes, humans, thank god, still use it from time to time. I use this judgement to decide who it will hurt. I suspect people *like* me have been doing this for decades. I also suspect that we're still okay here. You and I (and the musicians) live better than 98% of the people on this planet.

      > If more people thought like you, we all would be screwed.

      Which is to say that you have never, ever cheated anything, or bent the rules any time. You've never done anything that if everybody else did, would be detremental to what ever system you were participating in? Ever? What you fail to understand is that its flat out impossible that everybody thinks like me. Simply by virtue of me thinking like me, somebody will think like you. People are different. According to your logic, humans are capable of complete Borg-like behevious, all of a sudden ditching thousands of years of diversity in thought and action, and all become music thiefs. You simply cannot comprehend that it would be a knee-jerk to implement massive legislation and banning filesharing tools ... analogous to putting fences up beside roads, because, dont you know, tommorow EVERYBODY will become a jay-walker and then urban transportation routes would become useless. The reason they dont build those fences is that we can be sure that everybody *wont* do this .. since we are a social animal, we will display diversity in thought and action. I steal some music, but pay for movies. My neighbour steals some movies, but pays for music. My other neighbour sneaks into theare, but pays for music and movies.Attempting to categorize 'cheats' as one section of the population is useless, because we all pick and chose our spots in which to cheat, but overall we are incapable of decimating any given social or economic system by all of a sudden moving, as a species, one step to the left.

      So putting in draconian technological barriers is expensive and fruitless, because for any given application, you're only going to catch a small percent of the population at the expense of everybody else who is using the technology in a way that does not damage the system (such as those who download *then* buy the CD, or those who download songs they already bought years ago, etc).

      Please, for the love of god, argue that. Your IP argument is typical fearmongering that simply doesn't hold up against historical and psycological analysis, no matter how nicely it plugs into your Excel spreadsheet. Human behaviour is a moving target, so you can never change one thing (okay, lets see how this system is if *everybody* cheats) without seeing that change ripple through macroscopic social behaviour. Excel won't point out that when you move 80% of the non-cheaters to the cheaters category, X% of the cheaters become non-cheaters! We are self regulating in our behaviour, no 1984 needed!

      --
      "Old man yells at systemd"
    69. Re:Okay let's get the facts straight... by mattm76 · · Score: 0

      1984!? This has nothing to do with big brother. It has to do with respecting the right to own IP and protecting free enterprise. So, are you saying that since we live better than 98% of the people on this planet, it's alright to cheat each other? I used to think that way. Of course I still cheat and have 10 gigs of mp3's. So I'm a hypocrite. At least I don't go off on copyright law being outdated and "macroscopic social behaviour" to rationalize it and go around telling people to do it because life is unfair. I still buy CDs and pay way more than I should. But, I know a lot of people who haven't bought a single CD since college when they were first introduced to mp3's. The free rider problem isn't a small one.

      I would use a system where I can keep using kazaa and pay $5/month. Of course, if I had to pay, I'd want others to pay too. I don't think the barriers would be too draconian. There are ways ISP's can limit what people do with their bandwidth just like the cable company controls what you get over _their_ wires. I was actually surprised when we ordered basic and they came all the way out to our house and screwed in a filter on our drop line that blocked out channels 24-73. They obviously don't like free riders. As for file sharing, all they would have to do is set up authorized download servers on specific ports an ip's, and allow unlimited bandwidth usage on those channels.

      Getting back to my original argument, I just wanted one solid convincing reason why mass file-swapping and its inevitable harm to the industry wouldn't discourage music creation. If it hurts the guys on top, it also hurts on the bottom.

    70. Re:Okay let's get the facts straight... by SirSlud · · Score: 2

      > I just wanted one solid convincing reason why mass file-swapping and its inevitable harm to the industry wouldn't discourage music creation.

      Well, I dont know about convincing .. the only person who can convince you is yourself. I can only provide examples of why I dont think this is true.
      And I cant be bothered to sound grammerically correct anymore :), this is going to be real stream of conciousness ...

      Example 1: Sony and EMI etc become less rich, thus reducing the barrier to entry of advertising (since they can basically 'buy out' any inventory less rich companies wish to advertise in.) More musicians who you dont know about (tons of people create music, what you're really talking about is making a living off of it.) Recuding the powers of the giants by way of filesharing would make it easier for more musicians to compete in the market, thus encouraging more musicians to make more music.

      Example 2: file-sharing has proven to be the *only* community-driven method of distributing and exposing artists to other people, in other geographies. you might say that the big guys can do this, but you're missing that they dont *want* to do this. they want 10 brittany spears, not 40 mid tier musicians. file-sharing is the absolute perfection of word-of-mouth, the kind of advertising marketing execs (I work with them) know even money cant buy. although, they do try .. they hire 'urban salespeople' to go to bars and talk up artists they want to push. file-sharing returns the control of who gets sold to the people, and since the people are much more diverse than any big media company business plan wants it to be, this would encourage me to think more seriously about attempting to make a living off my music. as it stands, its utterly hopeless. I know enough people who could support me, but since I will never sell to millions of people, I'm of no interest to the companies that currently saturate the market and cater to those who havn't time to 'pull' their tastes.

      example 3: since file-sharing has the tendancy to spread new music, influences, and ideas far more effectively than any previous method (ie, its much easier to get heard by many people with filesharing), more musicians would be subject to more creative ideas. any artist, of *any* kind will tell you that more ideas flying around will *always* encourage more and better music. money, or no money. artists dont have to have money to write music (as evidenced by the thousands of musicians on besonic.com, mp3.com, etc that are writing music *regardless* of whether they can make a living off of it) .. but if the point is to provide them with livings, than its simply a matter of distributing the wealth in the music industry better than it currently is being distributed.

      I guess you feel that if Sony and EMI dont put the millions in, we'll have less music. We'll certainly have less cds sold *per artist* (because the big companies can push one artist to the world), and the top level artists will (i hope) make less, but more artists could sell cds without Sony and EMI etc saturating the market. its as simple as that ... yes, the big guys would hurt the guys under them, but the SHITLOADS of musicians who are disillusioned, sitting on the sidelines, waiting for a gap in the moise would be overjoyed. thats where the music would come from, and mid-tier labels would finally have a much easier time reaching wider audiences.

      This is where I have much criticism of western culture (I'm western, but that doesn't mean I agree with its values) ... the econeomics of it drive a 'less but bigger' type of mentality and approach, because the more you need to manage, the more simple your product offering had better be .. otherwise the logistics get impossible to manage. I'm arguing in favour of 'more but smaller' .. there is plenty of money going into the huge stars' pockets that could be distributed among the small guys. It is only the mammoth companies that dont want this - it is easier to hawk one thing to many people than many things to many people. You end up making more money on the savings in admisitering your product offering. If you really feel there is lots of music out there, you must mean that you get to hear that music a zillion times over. It's no secret that record labels are much more 'one album contract' than they were 20 years ago, making it even harder for musicians, even big label musicians, to know if they will have a whole life of making music. I'd rather provide more musicians with livings (isn't this what it should all be about, not turning one hit bands prepackedged for entire populations through the record-mill?) than have richer or more one hit wonders that are saturated in the market for a few months leaving people with little motivation to seek out more diverse music. It might *seem* like more music the way the record companies are doing it now, but it really simply damages the musicians' ability to make a modest but sustainable living off of music.

      I know thats not a very well organized argument, but please trust me - I have spent the last 8 years doing music, and the value of the jobs being created in the mass markets for musicians, actors, etc are only so valuable because so few people get to be them. :) Let more people play, give distribution and promotion back to the streets, and you'd instantly have way more musicians happy they were making 3a modest living and touring and even finding a population that was more open to diverse tastes.

      as for your friend, sure they exist, but like I said, as a musician and internet programmer and filesharer, I'd way more rather sleep with them than the Big Scary Top 40 machine. At least, at the end of the day, they happily pass my music on to the next crowd of potential 'people like you' (ie, the ones that pay for their music) than some capitalist old boy who doesn't understand the differences between physical product and intellectual property and thus why 'stealing' IP is TONs of a less big deal than some guy in a skimask stealing the 20 oak desks I need in order to sell so I can eat.

      That doesn't even address the issue of IP of works created years ago, where distribution, sales, etc of said product ceased years ago, where the company refuses to re-issue it. I am not going to support Walt Disney's son because his pop had a good idea. He can create his own original stuff, which I will be more than happy to pay for.

      one last question: when photocopiers were invented (available just about anywhere, any time, office, school, etc), why didn't magazines, authors, music sheet publishers, etc halt the motivation to write, make magazines, publish sheet music? please dont tell me because filesharing is 'perfect' and 'easy' in a way that the photocopier was not. thats what they said then, and the magainze/publishing industry is alive and well. same with the VCR. same with the casette recorder. etc, etc, etc

      the end of all this is that as a musician who wants to make a living off of music, and knows the industry fairly well, I support filesharing to the max. and if you really are behind the musicians, dont you think you might consider they can appreciate the implications of technological influence to their business a little better than the consumer can?

      --
      "Old man yells at systemd"
    71. Re:Okay let's get the facts straight... by SirSlud · · Score: 2

      Hey, plus, you know filesharing to rip off albums from artists is pretty popular because the stars of the day make so much that people dont perceive that as an individual, you do affect the bottom line of somebody. ironically, if the visible top40 artists were less rich (which could only be attained through making Sony, EMI, etc less rich), people would likely think a little more about ripping off musicians, because suddenly they'd be more like your neighbour than a superstar with more money than they can spend. this would help the struggling musicians, because it would convert some of the 'your filesharing monster friends' to a 'you'. Remember, people change their behaviour primarily because of the optics of the situation (their context). This is backed up by mainstream social behvarioural science. Look into the book The Tipping Point for a good place to start on that.

      --
      "Old man yells at systemd"
  12. Liebowitz is a convenient by grinwell · · Score: 1

    tool.

    This is the same tool who Microsoft uses to argue against a possible breakup, saying it will cost US citizens $50 billion.

    I'm not saying a breakup is a good thing, but $50 billion? Give me a break--that's $250 per adult. I don't spend $250 now :-)

    That said, here's one of the most salient points from the article:

    In order for downloading to really have an impact on CD sales, it needs to be a substitute for CDs. If file sharing is not a good substitute, then you can download all you want and it may be a new form of listening but it may not hurt CD sales.

    The rest of the article is filled with a lot of duh moments (DMCA bad? really? Record companies should try to figure out new revenue streams instead of trying to supress piracy? get out of town!).

  13. I'm confused too by Mr_Silver · · Score: 2
    I firmly believe that (based on what I've seen) that mp3 sharing does hurt the industy.

    Yet, at the same time, they post record profits and album sales.

    I'm sorry, but I don't buy into the idea that the majority of people use mp3's as a taster and then go and buy the product. It just doesn't, well, sit right with me.

    But at the same time, they are boasting these profits. Sure, there are people who use mp3's as a sampler before purchasing the products but I seriously can't believe they are in the majority.

    It's a case of what would appear to be the logical reason sounding ... well ... wrong. Am I the only one confused by it all?

    --
    Avantslash - View Slashdot cleanly on your mobile phone.
    1. Re:I'm confused too by ObviousGuy · · Score: 2

      In the past few years since digital piracy has been made accessible to the masses, the record industry has debuted several VERY popular bands.

      The popularity of Britney Spears, N'Sync, The Backstreet Boys, Eminem, and others has brought them many CD buying-fans. Not to mention that the economy during this time was booming and disposable income was trickling down to the preteen and teen age groups.

      No numbers have ever been released that show that groups other than those most popular (and hence crappy, by some definitions) have increased their record sales one iota.

      --
      I have been pwned because my /. password was too easy to guess.
    2. Re:I'm confused too by grinwell · · Score: 1

      I firmly believe that (based on what I've seen) that mp3 sharing does hurt the industy.

      Silver, check out the article. The argument isn't that downloading doesn't affect sales. The argument is that it's not a substitute for sales. The argument is that if it were really a substitute, then sales would be drastically lower and not just an economy-affected 10%.

      The article says the likelihood is that downloading is a new type of distribution which does not replace the old methods (yet). Leib makes the oft-used idea that the music industry should be looking for ways of profiting from this new method instead of trying to suppress it. Leib admits that he thought "a priori" (ie, before examining the evidence) that sharing hurts--but the sales data doesn't back it up.

    3. Re:I'm confused too by o'reor · · Score: 2, Insightful
      Well, same for me. However, I'm wondering if there is a clear correspondance between the kinds of music that sell less than expected and the kinds of music that are actually downloaded and burnt on CDs. What I mean is that the RIAA probably expects some types of artists to produce hits, yet they fail to do so, and nobody even cares to download their junk ; and others are expected to sell just fairly well, but they may really produce big hits on P2P networks.

      So, is there a correlation between the kinds of music that fail to sell as expected and the kinds of music that are massively downloaded ?
      We seriously lack solid figures on these points, both due to the fact that expected sales figures are confidential marketing data, and P2P traffic is everything but public and official.

      And your average congressperson will (probably) just listen to the RIAA drivel and vote the Hollings Bills as they are told, which won't help.

      --
      In Soviet Russia, our new overlords are belong to all your base.
    4. Re:I'm confused too by Anonymous Coward · · Score: 0

      Downloading MP3's creates an informed and happy consumer.

      For example I've just watched Spiderman on my laptop after downloading an divx hack. I'm off to see it this weekend, paying a full price cinema ticket. Now I know it's worth seeing on the big screen.

      I've just ordered a CD online after hearing 5 tracks that I downloaded - Badly Drawn Boy FYI.

      I downloaded a track by Slick Rick a friend suggested - I hated it, so I won't waste my money on the album.

      When someone knows they're getting what they want for their money, they'll be happy to part with it. I used to buy 2-3 albums a year, making sure every track on them was one I liked. Now I buy 10-20 - I can do my own quality control.

    5. Re:I'm confused too by Anonymous Coward · · Score: 0

      well if all youre into is Britney Spears & Lynard Skynard its easy to get all you need from the napsters.

      However if your tastes are at all ecclectic then you will have trouble finding more than 1 or 2 songs by hard-to-find artists & you end up using the napsters just for taste testing because if you really want the music, youll have to go out & buy it.

      when i see people using the napsters only to download the same tired crap they hear on the radio i cant help but think what a terrific waste it is.

    6. Re:I'm confused too by Rupert · · Score: 2

      I doubt Mariah Carey is more downloaded than Britney Spears. Mariah Careys album didn't sell because people who would otherwise have bought it thought it sucked.

      --

      --
      E_NOSIG
    7. Re:I'm confused too by kindbud · · Score: 2

      I'm sorry, but I don't buy into the idea that the majority of people use mp3's as a taster and then go and buy the product. It just doesn't, well, sit right with me.

      So what? Your feelings do not define the facts. Get over it, unless you want to continue to live in fantasy-land. But don't expect rational people to take you seriously.

      --
      Edith Keeler Must Die
    8. Re:I'm confused too by Mr_Silver · · Score: 2
      So what? Your feelings do not define the facts. Get over it, unless you want to continue to live in fantasy-land. But don't expect rational people to take you seriously.

      Actually rather than getting over it, I prefer the comment made by someone else that the bulk of the money made by the industries is of the bland tasteless sort.

      Which would mean that other artists are suffering with people downloading their music. It's just that the industry makes it's money from 14 year olds with dubious tastes in mainstream music.

      Of course, unless we get some decent stats from the music industry about profit and how it relates to which artists/cd's then we'll never know. But it wouldn't surprise me to see that the money came from a small number of big names which outweighs the losses of the others.

      By the way, what you read in the comments section of Slashdot isn't always the "facts". Thinking that puts your address firmly in fantasy-land.

      --
      Avantslash - View Slashdot cleanly on your mobile phone.
  14. of course not by YanceyAI · · Score: 5, Insightful
    File sharing doesn't hurt record labels any more than radio play. I can hear new music anytime I turn on the radio, but I still want to go buy the CD for the art, the tactile experience, and the addition to my collection.

    I can tape the song off the radio just like I can download it off the Internet, but I still want to buy, buy, buy.

    Why does this not register with label execs, economists, etc.?

    --
    Can I bum a sig?
    1. Re:of course not by Anne_Nonymous · · Score: 1

      That's a poor analogy because,

      1. Radio is not play-on-demand.
      2. Radio only provides access to the most popular track(s) on an album.

    2. Re:of course not by FatAlb3rt · · Score: 1

      1. Radio is not play-on-demand.
      2. Radio only provides access to the most popular track(s) on an album.


      I agree with #1, but not #2. While there are some late night radio shows that play (or at least used to play) entire CDs (in particular, I'm thinking of a local classic rock station that would play a whole CD straight thru w/o interruption at 3 am), that's not my main disagreement.

      You need to look at the reason why people buy CDs in the first place. Yes, there are many who buy them for all the songs or simply because their favorite artist has released another CD. But I would wager that the VAST majority of CD sales are soley due to the 1 or 2 songs that are played on the radio. The rest of the songs are just part of the package, but not a selling point.

    3. Re:of course not by BESTouff · · Score: 1

      File sharing doesn't hurt record labels any more than radio play. I can hear new music anytime I turn on the radio, but I still want to go buy the CD for the art, the tactile experience, and the addition to my collection.

      The big difference is that the RIAA owns your radio and make you listen to what they want you to listen. This is not yet the case with P2P.

    4. Re:of course not by anthony_dipierro · · Score: 3, Informative

      I can tape the song off the radio just like I can download it off the Internet

      And part of the cost of blank cassette tapes goes to the artists to offset that loss of revenue.

    5. Re:of course not by Anonymous Coward · · Score: 0

      2. Radio only provides access to the most popular track(s) on an album.

      Since singles are often released in advance of the album, and heard by most people on the radio before anywhere else, one has to wonder how they became "popular" before the populace knew about them.

    6. Re:of course not by Xerxes · · Score: 1

      I can tape the song off the radio just like I can download it off the Internet



      And part of the cost of blank cassette tapes goes to the artists to offset that loss of revenue.



      No, part of the cost of blank tapes goes to the copyright holder. Not the same thing, as many an artist will tell you.

  15. albumosity by Anonymous Coward · · Score: 0

    So far, why do you think people are both purchasing music and downloading it? The clincher for me on this aspect of the issue is the "album factor." I often download mp3s, and ocassionally burn them to cds, but doing so is just not as satisfying as buying cds. true, i'm more selective with buying cds than i am with downloading/burning, because it costs me something, but i generally get more enjoyment out of albums that i buy. having a cd with nice cover and sleeve art, that's put together in the way the artist/band intended me to experience it just seems special (moreso than having the same cd burned on a generic cd-r would be), and that's why i continue to buy cds even with easy mp3 access (of course, this might not apply to the majority of Britney-Spears-mass-market music that's meant to sell zillions of copies to crazed 14-year-olds). nevertheless, i think i would be dissapointed if cds ever dissapeared.

  16. But I WANT to destroy them by sam_handelman · · Score: 2

    This is a serious challenge, folks. We need a new strategy.

    At first, it seemed that filesharing really would destroy the RIAA. Then, just as it became clear that this was never going to happen, they started throwing fits sufficient to make me think it didn't need to - they were going to destroy themselves. Now, it looks like they may wise up.

    So, we have to ask ourselves - since the RIAA has developed some means of distinguishing it's collective ass from the hole they've dug themselves into, what can we do to ensure their destruction? I think filesharing can still be an important part of that plan, but really, we need to look into alternative methods of eroding their strangehold on popular music discourse and promotion. Even if CD sales stay up, if we can really bring people into a genuinely alternative culture of music - free from the RIAA - that can accomplish the same goals. While we're at it, if we can continue to fool the major labels into thinking that Kazaa will somehow eradicate them from the face of the earth, that would be wonderful.

    I think we need to start a letter writing campaign! Everyone, assume some l33t speak teenage hacker monicker, and inundate random e-mail addresses at the RIAA/major lables with threatening e-mails about how you've developed a new file sharing app that will somehow cause people to pirate more music. Sensical explanations are not required, or even desirable, but we need a lot of DIVERSITY in the messages so that the RIAA becomes convinved that there's a huge conspiracy out to get them. Brag about the number of your friends that you've convinced never to buy another CD.

    If we work together, we can keep them frothing at the mouth until they've lost what little remains of their credibility, and deflect their attention from genuine threats to their hegemony.

    A certain element of humor was intentional.

    --
    The good and new comes from no quarter where it is looked for, and is always something different from what is expected.
    1. Re:But I WANT to destroy them by Anonymous Coward · · Score: 0

      Why don't we just boycott the fucking RIAA? Buy music only from European labels like SPV, Steamhammer, Spinefarm, Napalm Records, Nuclear Blast, etc.

      Death to corporate music!! Long live HEAVY METAL!!

    2. Re:But I WANT to destroy them by Anonymous Coward · · Score: 0

      Buy music only from European labels

      Uh, because that music sucks even more?

  17. Ratios... by Astin · · Score: 2

    Interesting idea in there - that perhaps the music companies should have negotiated with Napster, found some way to change the "rules". The example he gives is that in order to download, you have to upload. Would this have worked? Obviously what you upload in a P2P system is partially dependent on people actually taking stuff FROM you. But could they have said "If you want to download, you need to have at least 1/5 of your d/l amount available for others." Might have kept the leeches away. Reminds me of the BBS days, and the U/D ratios many had.

    --
    - In hell, treason is the work of angels.
  18. DRM Negates Productivity Improvements by aldheorte · · Score: 2, Insightful

    DRM can't keep you from reading the material, as long as you pay the price. Some say, Well, how can you take a paragraph and copy it anymore? That's what we normally consider to be fair use. But the fact is, you can still do that. You might not be able to cut and paste but as long as you can read it, you can type it... It's just not as easy as it could be but it's not any harder than it was 30 years ago.

    True, there is no way to plug the "analog hole." However, to revert back to it as the only mechanism for copying is to effectively undo 30 or more years of productivity enhancement through technology and features such as copy/paste. The point of technological advancement is to automate manual processes such as transcription.

    Estimating the lack of productivity seems popularly acceptable for damages alleged by computer viruses. If we did a calculation for the lost productivity costs of DRM difficulties imposed on legitimate copying in business and academic work, it would likely be a large number, perhaps dwarfing the revenues protected by DRM. Therefore, Mr. Liebowitz's argument founders on a zero, or perhaps even negative, sum.

  19. cd burning vs tape recording by ZipR · · Score: 1

    One big difference between taping and burning or downloading mp3s is cost. I used to pay between $5 and $8 per blank tape to get one that sounded decent. With MP3s and CD burning, the quality is excellent, the cost is minimal. Time spent doing it is greatly reduced too. Hell, I don't even have to turn over the tape anymore to record the second side!

  20. I'm not surprised by Anonymous Coward · · Score: 0

    Interested in why the DVORAK keyboard layout (which I am fluent in as well as QWERTY) was not standard, I read Liebowitz's and Margolis's paper (linked in the article). It was a classic case of economists bending facts and commonsense to fit their theories (or, more accurately, their beliefs). To see a reply to this paper go here . I'm not suprised that this pseudo-scientist is supporting a system (DRM) which will make 1984 look like a picnic. I just hope he doesn't read the earlier slashdot article about "blocking the analog hole" - it could give him ideas.

  21. Waiting for the new numbers from the RIAA. by da3dAlus · · Score: 2

    I'm just waiting for the usual /. story at the end of the year where the RIAA comes up with their mysterious numbers and bitch about piracy reducing sales, blah, blah, blah. But I wonder if the RIAA will actually bring 9-11 into the equation, factoring that most of the nation was too shaken up to worry about buying the latest CD's for the last few months of 2001. I'm curious because almost everyone has been using 9-11 as an excuse for everything lately (bad sales, security, etc) but I think most of the /. population understands that issue already, so I'll leave it at that.

    --

    Sometimes I doubt your commitment to Sparkle Motion.
    1. Re:Waiting for the new numbers from the RIAA. by Anonymous Coward · · Score: 0

      What is "9-11"?

    2. Re:Waiting for the new numbers from the RIAA. by Anonymous Coward · · Score: 0
      What is "9-11"?

      -2. =P

  22. people want to listen to their stereos by Olinator · · Score: 2, Insightful

    Salon: So far, why do you think people are both purchasing music and downloading it?

    Liebowitz: It may be the cost of putting these collections of songs together. Even though it seems low, it's more effort than the typical person is willing to go through. That may be what the salvation of the record industry is -- that it's simply too hard to do on your own what they do for you.

    Something I haven't seen anyone (in the press) really correlate directly:

    • Outside of geekdom, there are not that many people (when compared with the CD-listening population) who can take their MP3 collections and successfully and reliably burn CDs that play in CD players;
    • again, outside of geekdom, not many folks have their good stereo systems hooked up to their computers;
    • while people listen to mp3s on their computers, they want to listen to the music that they *like* on their stereos, in their cars, etcetera, and they also want to be able to lend it to friends and be reasonably sure that said friends will be able to listen to it also.

    Put those together, and I think you have a more powerful impetus for buying CDs than the "people are honest" and "sample before you buy" theories represent. It's much easier to buy the music than it is to figure out how to get good sound from your MP3 collection.

    Now, if the studios partnered with, say, Adaptec or Nero to create an application that could burn traditional CDs from uncompressed (or extremely high-quality MP3) sources bought and downloaded at burn-time from the labels, that provided a way for the average computer owner to burn mixed CDs that would play in her stereo, I think you'd see huge uptake. (You'd also see the death of the much-decried "album" with one decent tune and nine crap filler tracks, which is the pigfeed trough^W^Wbusiness model the RIAA member companies are fighting so hard to maintain...)

    Ole
    1. Re:people want to listen to their stereos by Tassleman · · Score: 1

      Outside of geekdom, there are not that many people (when compared with the CD-listening population) who can take their MP3 collections and successfully and reliably burn CDs that play in CD players Huh? I don't think I've ever met anyone who couldn't figure out how to burn CDs from MP3's using one of the MANY popular applications available to do it. Between WMP, Roxio/Adaptec, Nero, MP3CDMaker and others, I don't think there's any one computer task EASIER than creating a CD from MP3s!

    2. Re:people want to listen to their stereos by Olinator · · Score: 2

      Blockpoth the quoster:

      Between WMP, Roxio/Adaptec, Nero, MP3CDMaker and others, I don't think there's any one computer task EASIER than creating a CD from MP3s!

      Well, I know plenty of people (some of them grad students in computer science -- I work for the CS dept. of a state university) who can produce coasters just as often as CDs.

      There's also the point (which I admit I forgot to make explicitly -- mea culpa) that your average 128kbps downloaded MP3 don't sound so good when you pump it through even a low-end component system, even if it's coming from a burned CD in the component CD player rather than a 3.5mm jack plugged into an unshielded OEM soundcard.. (Yes, I did view this story with great interest, being both a geek and an audiophile. :-)

      Ole
    3. Re:people want to listen to their stereos by anthony_dipierro · · Score: 2

      Put those together, and I think you have a more powerful impetus for buying CDs than the "people are honest" and "sample before you buy" theories represent.

      And that's why the fight we have right now isn't going to be solved. The fact of the matter is that P2P networks have the potential to destroy the industry. If left unchecked, that's exactly what they'd do. But, because the RIAA et. al. sue out of existence anyone who tries to profit from these P2P networks, there is no incentive to build products which make filesharing simple and convenient for the masses.

      So, yes, P2P filesharing likely does not have a significant negative impact on CD sales. But that's only because napster was sued out of existence, and others are afraid of following in napster's footsteps.

      The RIAA realises this, and that's why they haven't sued small-time individual traders. They don't want to stop piracy, they just want to keep it controlled.

  23. Balance... by Astin · · Score: 2

    Noticed something he said in there:

    "While it's true that there's always been a balance, we don't know if it's been a particularly good or even balance."

    So how is an uneven balance a balance?

    --
    - In hell, treason is the work of angels.
    1. Re:Balance... by Anonymous Coward · · Score: 0

      It's imbalance - which is a kind of balance.

    2. Re:Balance... by Dephex+Twin · · Score: 1

      I guess he meant stability rather than balance?

      --

      If you want to make an apple pie from scratch, you must first create the universe. -- Carl Sagan
    3. Re:Balance... by Anonymous Coward · · Score: 0

      In this sentence 'balance' is used in the accountancy sense.[/pedantic]

  24. Artist revenues by Dark+Nexus · · Score: 1

    If a couple years go by and the massive copying still continues while the artists see that it doesn't have a negative impact on sales -- if that turns out to be the case -- then I suspect that the level of concern will go down. They'll still talk, the record industry, but they won't be manic about it. They were concerned about audiotaping but after a while, they seemed to realize that it wasn't that bad. But it took them a long time.

    Forget just sales, the artists I enjoy are getting MORE money out of me now. I never bought music to begin with (radio is cutting into sales!), but after hearing a wider range of music thanks to P2P networks, I'm going to (exponentially) more live shows than I ever did before.

    I wouldn't be suprised that, if they looked and concert sales, they'd find them up. Not sure how much of that goes to the big companies, but the artists would deffinitely see an increase from that.

    --
    Dark Nexus
    "Sanity is calming, but madness is more interesting."
  25. Cut Out The Middle Men by RAMMS+EIN · · Score: 1

    I still think the whole machinery required to get CDs recorded and shipped to customers is becoming something of the past. If artists offered their songs for download off the web at a price, that would have all the advantages. Artists could get more while customers pay less, customers pay for only the songs they want, which also gives artists feedback on what people like. Also, artists can sell to whomever likes their music, rather than only to those lucky enough to be covered by a distribution network.
    With broadband Internet access becoming more and more common, compression formats that give a quality nearly indistinguisable from CD audio at a much lower bandwidth, and secure payment methods maturing bit by bit, this option sounds more and more realistic.
    Of course there would still be a place for the CD business. People want CDs for various reasons, for example because they want full CD quality rather than near-CD quality, or they want to play their music in their car's CD-player but don't have a CD-burner, or they don't have high-speed Internet access to download songs.
    As for file sharing, I don't know what the Right Thing to do is. Studies are contradicting each other (some have said the outcomes depend on who sponsored the research). I think that file sharing is here to stay, and companies had better find a way to use it to their advantage, perhaps by making demos of their products available on P2P networks -- the old try-before-you-buy principle. That would also make P2P less attractive to those seeking to obtain retail versions through file sharing networks, though looking at file sizes would usually do the trick I imagine.
    My take on file sharing as a form of piracy is that people have pirated music and software before P2P-times, and will continue to do so even if P2P were to vanish one day. World-wide P2P networks differ from the old ways were people would acquire stuff from friends in that they make a wider selection of warez available to more people, which could raise people's interest in things outside their circle of friends and acquaintances, which could, but I say _could_, increase sales. Once again, whether or not it actually does depends on a variety of factors, and whether or not it does in general is a question currently open to debate. Sorry for the long read, I hope I said something valuable amid the crap.

    ---
    Violence is a sword that has no handle -- you hold it by the blade.

    --
    Please correct me if I got my facts wrong.
  26. Not enough data by Anonymous Coward · · Score: 2, Insightful

    This is one of those issues that defies easy analysis, simply because we're all so prone to assuming that the whole world does what we do. Are there people who use file sharing just to sample before they buy, thereby increasing sales? Yes. Are there people who only take from file sharing and never buy a CD, thereby lowering sales? Yes. What's the net effect of those two groups on overall sales? No one knows for sure, and we're all just guessing. I'm not even sure how you could get reliable data on the net effect, given that the people who download music would not answer a survey, or would blatantly lie.

  27. everything going to be all right... by rlthomps-1 · · Score: 1

    If it turns off consumers, they'll have to remove it or lower the price. The people selling these things want to make money, which means they want to give people whatever it is that they want to pay the most for. They want to maximize profits and if they change their product and no one wants to buy it, they'll change it back in a heartbeat. That's the beauty of the market. That's why it can't get too far afield. If they get every consumer mad at them, they'll be in big trouble.

    This is the most compelling part of the article. People tend to get over hyped about what the record companies are going to do, but the economics of the matter prevent them from pissing off everyone. Don't worry everything is going to be ok, you just won't have your free music anymore!

    1. Re:everything going to be all right... by SirSlud · · Score: 3, Insightful

      >you just won't have your free music anymore!

      But, I've had it since birth ... audio tapes, MIDI, mp3s .. there will always be free music (and free movies, and free this and that.), dont kid yourself. You'll just need a little program (like the tape on audiocasettes, natch!) to copy your music. Anyhow, I think you implying 'wont have ALL your music free anymore!', where the point of the article is that a little free music never hurt nobody to any degree that it dissuaded them from running a company, turning a profit, etc, nor purchasing CDs for themselves.

      The joke is, if youre Darwinian, you'd recognize that all this technology COULDNT kill the music industry. Why? If we all stopped buying CDs, and EVERYONE copied, the record companies would crumble, musicians would stop publishing music, and there'd be nothing left to download. Social patterns always ensure there's a balance (like, if everyone littered, we couldnt move, if everyone was a conservative, we wouldnt have important liberal influence, if everyone was a liberal, we wouldnt have important conservative influence) ... since it would be self-defeating for everybody to cheat out the industry, it wont happen. Furthur more, as more people join one side of the equation, the people on the other side tend to mobilize or compesate for the shift in numbers in some manner. For instance, as file sharing became more common, I contend that some people purchased more of their music than they would have before, fearing that if they didnt support music, there'd be nothing left to fileshare.

      And if one insists that we do put the record companies out of business - really - so what? The whole cycle of small labels getting grassroots support (where people are much less likely to rip off local artists than megapopstars) starts again, and we're out a few hundred thousand guys in suits. boohoo. Music is 5% of the USA's GDP to be sure, but to think all that would come off the GDP instantly assumes that absolutely nobody comes in to take the place of the fallen dinosaurs, and that this collapse happens overnight. Highly unlikely.

      --
      "Old man yells at systemd"
  28. Simple Theory by Anonymous Coward · · Score: 0

    The music you buy is crap, the prices are too high. This means that downloading of music for free, while interesting and time consuming takes the place of paying money for crap. I have many songs that I listen to on MP3, but I would go out and pay good money for them.

    Yes, I realize that it is probably not right listening to downloaded music. But in retrospect, it is not quite right having to pay 15 (give or take, don't complain about the accuracy) bucks for a CD. Hell, I can buy a movie for 20 bucks, and I know production costs for a Movie are a hell of a lot more than a music CD.

    If music was priced more inline with what it costs to produce, then the whole downloaded music thing would be mute. If can buy a 100CDRs for 15 bucks, imagine what it costs to produce 1+ million CD's.

  29. Stan Liebowitz, or doctor NO. by oliverthered · · Score: 1

    Loolking at the article and doing a few searches, he seems to be a capatilist, commenting in a socialist manner.
    He says, a monoply can't exist even though the product has reached critical mass. maybe he's got a case if there are Big product drivers (e.g. DVD's cost a mint and tapes ain't all that bad, and cost far more to produce!)
    But that just critical mass at play, the critical mass that YOU have next-to-no chance of getting a film published.

    Here he's making kinda the same argument, but going for the socialist win (odd that!)

    --
    thank God the internet isn't a human right.
    1. Re:Stan Liebowitz, or doctor NO. by Anonymous Coward · · Score: 0

      Strange, I thought the socialist (or rather Keynesian) approach was to have the Government regulate the market, much like the RIAA wants the government of the USA to pass bills to stop P2P networks and the like.

  30. File Sharing definitely effects the sales by BrokenM2001 · · Score: 1

    The recording industry is finally being forced to face their own music. The revenue that is lost with "free samples" of the albums by file sharing requires a better value of songs for the consumer. I know that in the past I have been suckered into purchasing a CD because I liked one or two songs, and then find that the rest is crap! Never again. The albums that are done well will continue to be purchased after the free previews. I believe that the RIAA are the real thieves. They have made money from the artists by claiming that they take the greatest risks by promoting them as a newly signed band, and make all of the profits by fircing compliance by requiring certain style songs and certain beats per minutes for the more saleable album. They can no longer continue to claim that the risk is that high, when they can promote and distribute the albums virtually for free. The artists deserve the money, and most of their income is from live concerts as the RIAA takes all of their proceeds for the first few albums. I believe that file-sharing will require the RIAA to make a better product, or "Lord Help Them", a better quality storage system!!! 0.02

  31. Large volume of downloads, but few people? by hyacinthus · · Score: 2

    I took note of Liebowitz's estimate that music downloads approximate five times the volume of CD's sold in the US. That's an impressive figure, and he correctly asks--if the volume is so huge, where's the dent in music sales?

    My tentative hypothesis to explain the disparity is that relatively few people are downloading all that music. Most of my friends are not heavy computer users and either do not download music at all, or maybe look for the occasional song now and again. But the two people I know who download music regularly go ridiculously overboard with it--they've got stacks of burned CDs and huge hard drives full of downloaded music.
    (Before you respond and say, "Hey, all of my friends download music and I do too," think--how many of your friends _aren't_ computer geeks?)

    I'd be really interested to see what the distribution is of the frequency and volume of music downloading. I suspect that maybe a tenth or twentieth part of the users are downloading most of the music--they're the ones who are stealing more than they're buying, but it doesn't matter much because everyone else is still buying CD's.

    hyacinthus.

    1. Re:Large volume of downloads, but few people? by grazzy · · Score: 1

      I've got stacks of cds and disks full with mp3. Of crap.

      I mean. I've got Britney spears latest. Do I listen to it? No. Would I have bought it? No.

      Do I pay for all the music I actually do like? No. Would I have bought it? No.

    2. Re:Large volume of downloads, but few people? by Anonymous Coward · · Score: 0
      I mean. I've got Britney spears latest. Do I listen to it? No. Would I have bought it? No.

      Did you know that's pretty sad?

      I hope you get the help you need.
    3. Re:Large volume of downloads, but few people? by Anonymous Coward · · Score: 0

      Thanks to your comment I did a quick search on my net users.

      Turns out they ALL, without exception, use P2P networks to download music.

  32. Simple Economics by airship · · Score: 1

    This is so easy. You just have to refer to the basic equation of economics:
    TIME = MONEY
    If you're a poor student with lots of time, you'll spend lots of time downloading MP3s and burning them on CDs. But since you don't have much money, you wouldn't have spent much money on CDs anyway. Result? The music industry doesn't lose much.
    If you're gainfully employed you have more money, but you spend a lot of time at work, so time is more valuable to you than money. You don't sweat spending $14.95 on a CD because the hour or two you'd spend finding and downloading songs and burning your own CD is more valuable to you than the few dollars you spend on the CD. The music industry makes a few bucks, and you save some time.
    Will a few people sometimes download and burn songs that they might have otherwise paid for? Of course. Could that explain the 10% drop in CD sales? Perhaps, though I'm more inclined to think it's the crap-poor quality of music these days. But bottom line is that downloading and burning music won't hurt sales much unless it gets to the point that the TIME=MONEY equation balances out the other way.
    For example, to me $.99 for downloading a song is still too much to compensate for the hassle of making my own CDs. Make it $.25 a song and I'll probably take the time, though I'll bet I still buy as many CDs as I do now (about a dozen a year).
    This is so basic that I can't believe that 'economists' like this guy can't figure it out.

    --
    Serving your airship needs since 1995.
  33. 2 Observations by Anonymous Coward · · Score: 0

    I just got done burning a bunch of tunes at a friend's house - some from CD, some from MP3 and some from old mixtapes. It was a complete pain in the ass. My track markers are screwy, someone bumped the power button on the CDR deck, and one tape didn't fit on a CDR. I have CD's with music on them, but they're not professional quality.

    I would happily pay the big bad recording industry $5 each for pre-burnt, pre-labeled CDs. I will not, however, pay the big bad recording industry $15.99 each.

  34. A crucial point: MP3s aren't replacing CDs. by mesozoic · · Score: 3, Interesting

    I'm glad to see an academic who is confident enough to be able to say, "I may have been wrong; I don't know." These days such professors are becoming a scarcity.

    He makes a very good point, too; you would expect CD sales to noticeably decline if people were using MP3s as a replacement for CDs. But they're not. The average computer illiterate still finds it difficult to turn an MP3 collection (which, more often than not, is a jumbled mess of files spanning a several directories) into CDs, because they just don't know how to sort them or how to keep track of them. So they keep the MP3s on their computer and buy the CDs for their Discman.

    Many (including myself) have bought a CD because they found a few tracks online, but couldn't get good copies of all of them, and they wanted all the songs in the original order. Other people are still buying CDs, but they're buying the ones they can't find online. I know many people who buy into the whole ultra-pop-star fad, but don't buy those albums because they're so easily available online. Instead, they buy music they like that they couldn't find online--and in the end, it's those artists who need to be bought the most.

    But the truth is that nobody can tell how much downloaded music is affecting record sales. It's hard to get the recording industry to ever release detailed statistics on what they sell, and when they do release information there are always doubts as to its validity. (They do have to make the shareholders happy, after all.)

    Normally I'd rant and rave about how file-sharing is going to be the death (or the rebirth) of the music industry, but I think at this point people have started to realize that on their own. Now it's just a matter of buying popcorn, sitting back, and enjoying the show, because over the next decade or two we'll get to see some of the biggest and richest corporations in the world die a fiery death.

    1. Re:A crucial point: MP3s aren't replacing CDs. by MrResistor · · Score: 2

      Personally, I buy CDs because of the quality difference. This really only applies to certain types of music. VNV Nation, for example, sounds just fine on mp3. The Pixies, on the other hand, sound like shit on mp3. To be fair, though, I would probably buy a VNV Nation CD if I could actually find one for sale. Who knows, maybe there is a significant difference in quality there as well, and I've only noticed it with The Pixies because I had listened to their CDs for years before ripping them to mp3. I doubt that's the case, but you never know.

      In my experience, mp3s sound crappy if the source isn't electronic in nature. By that I mean the various genres of "electronic music"; techno, industrial, synthpop, etc. Music that derives its "feel" from texture and harmonic interaction don't transfer well. This includes most classical, as well as more modern music like that from The Pixies, Bauhaus, or Jimi Hendrix. Those types of music depend greatly on the "unhearable" parts of the music that mp3 strips out.

      I don't consider myself an audiophile. I find the hiss and pop "warmth" of vinyl annoying, and I think tubes should only be used when one intends to have distortion (and even then they can often be replaced by other voltage-driven devices, like certain FETs, without a noticable difference). I can definately hear the difference with mp3s, though. For that reason alone mp3s will never be a replacement for CDs.

      --
      Under capitalism man exploits man. Under communism it's the other way around.
  35. Who cares by Gordon_Cabaniss · · Score: 2, Insightful

    As a recording artist who has actually been suspect to a record deal in the retarded ass music industry. I can say that filesharing is nothing but a good thing.

    Labels and publishing companies will continue to hide under the umbrella that file swapping is hurting the artist.

    No.....what realy hurts the artist are slimy record execs who sign artists to crap deals and only give them a 10th of the profits. Which they then get the luxury of spliting amoung their bandmates and leaches like managers, business advisors, attorneys, and oh yeah and uncle sam. Not to mention they have to recoup every penny that were alotted for a recording budget before they see a dime.

    So who really loses? The industry has been screwing the artist for years. The only ones who benefits are the fortunate few who sell millions of albums and those are far and few between.

    Don't belive these cry baby record companies whose only real intent is protecting their old dusty business model.

    I say out with the old and in with the new! Believe me they got it coming!

  36. It hasn't hurt them yet... by utexaspunk · · Score: 0

    because while there is a large volume of MP3's being downloaded, they are being downloaded by a relatively small number of users. I download songs all the time from audiogalaxy -I often will just look up an artist I don't know and then download 20-30 or more of their songs- and haven't bought a CD in months. Most of the people I know who do MP3's have MASSIVE collections. Hence the fact in the article about the number of MP3's downloaded being like, 5x the number of CD's sold. I simply couldn't afford, in time or money, to listen to the amout of music I do today with CD's. However, the majority of Americans do not have broadband and have no idea how to go about getting music, or it at least seems complicated enough to prevent them from wanting to do it all the time. I'm a big fan of sharing my music, and I burn mix CD's for my friends all the time. Many of these friends like the music so much that they go out and buy the full albums of the artist. The record industry must realize that MP3's are a great tool for hardcore music enthusiasts, and that hardcore music enthusiasts share their enthusiasm and get casual music listeners excited about their product.

  37. Oy Vey, micropayments again by BranMan · · Score: 2

    While I am glad to see the man change his mind - it's nice to see an economist using the scientific method - 'cause the facts don't fit his original hypothesis, it's a shame that he's still clinging to his belief that micropayments make sense.

    Flat rate is the way to go - no matter what. People don't like to pay for what they use - causes way too much anxiety over what the next bill is going to be. Almost everyone has a budget, and budgets need fixed costs.

    The idea behind micropayments is to hide away paying for things - to make it small, unobtrusive, and in the background. No one I know of likes to be nickled and dimed to death, and we sure don't like not knowing **at the time** what we are being charged for (i.e. happening in the background). Even AOL went to flat rates and it wasn't to simplify their bookkeeping.

    Maybe he'll let go of micropayments in a few more months. The sooner that myth dies, the better

    1. Re:Oy Vey, micropayments again by josh+crawley · · Score: 2

      Personally, I like the idea of micro-payments. However, the system needs to be set up with this to begin with. I suggest using Xanadu as the server type.

      In that idea, content creators set a price on a works. It may be free or for cost. All media would be streamable (meaning you can pull 3 seconds out of a movie or mp3 or whatever) and the cost would be porportional to overall works cost.

      Whenever you download a "cost" media, you're charged. The key in this system is if you're a content creator, you can charge. The idea is that freeloaders pay and the contributors dont. You can always opt to be free. Still, no matter what, I want access to my bill at that exact second. Perferrably, I'd have an applet in my taskbar updating costs per minute.

      In a case sceneario, picture DMOZ, a big internet search archive done by people. They could survive if they charged .2 cent per search, but you got .1 cent back by doing grunt work over their links. If all you do is search, you pay. I'd accept a fair system like that.

      And in the case of flat versus gradiated, I look at IP packets. We're now kicking off the heavy users on cable ISP's. Well, if they pay per packet outbound, wouldn't it make up for it? 5$ for physical line cost and X cost per 1 Kbyte output. If someone just 'surfs the web" they pay less than modem cost (because that's all they use). If someone 'leaches', they pay also (more for utilizing bandwidth). Still, I want to know how much my cost is (perferrably by applet)

  38. MOD THIS UP! by Anonymous Coward · · Score: 0

    i really need to defeat the "intelligent" filters on /.

    they make it take about 400 goes to get something submitted.

    asd banana toothpaste lipstick hooligan cars honey barister.

  39. DRM and perpetual copyright by EricEldred · · Score: 3, Insightful

    I view the DMCA as draconian. I'm really quite unhappy about it. But I'm not unhappy with digital rights management, narrowly defined to software that keeps you from making copies; that doesn't extend the length of copyright; and certainly doesn't get rid of fair use.

    I wonder whether he understands DRM technology. If a DRM locks up a work, you certainly won't be able to go to a library and copy a page to cite in a paper, so goodbye fair use. (He seems to think the analog hole does away with DRM.) And whenever the copyright term is reached (if it ever is), the work will still be locked up--so the DRM effectively makes the copyright perpetual.

    1. Re:DRM and perpetual copyright by stubear · · Score: 2

      I think you need to reread teh article. Leibowitz explicitely states that fair use isn't gone, after all you can still copy the passage by hand, it's just not as easy as copy and paste. Nothing in copyright law states that copyright holders MUST make it as easy as possible to copy passages, images or parts of music.

    2. Re:DRM and perpetual copyright by cpt+kangarooski · · Score: 2

      The policy is pretty strongly in favor of making it easy, however. Copyright is concerned ONLY with promoting the public use (inclusive of copying etc.) of works in the long term.

      If, even in the long term, it is extremely difficult to accomplish this, then the constitutional requirements and policies of copyright are being left unfulfilled.

      Frankly, if an unecessary obstacle is placed in the way of a use, I don't believe that the copyright is deserved. Let there be self-help OR statutory help, but they should never act in combination.

      --
      -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
    3. Re:DRM and perpetual copyright by KjetilK · · Score: 2
      No, he is correct in what he is saying: As long as it is legal to hire monks to copy things using handwriting, fair use is okay. That's his argument, and that has been the argument in the DVD suits too.

      Copyright doesn't exist to promote technology, you know. We have patents for that. ;-) What he is saying is that it is perfectly legitimate to halt advances in technology if it is needed to protect the business models of distributors of artistic works. Legislators think that too.

      Besides, legislators may require that DRM opens the work at the expiry of copyright. They're probably going to do that to throw us a bone. It is then important to keep arguning that this is wrong.

      --
      Employee of Inrupt, Project Release Manager and Community Manager for Solid
    4. Re:DRM and perpetual copyright by akb · · Score: 2

      I don't agree with Leibowitz's willingness to put fair use in the pre-digital ghetto and the (not mentioned) potential roll back of the public domain. Manually copied text, no pictures, no video, no audio, wonderful. I think this spectacularly undervalues the fair use and the public domain.

      Fair use and the public domain are part of our information commons and cultural heritage. Lessig and Co have written very eloquently about this, I suggest everyone read what they have to say.

      Its not surprising that Leibowitz takes this position as Cato is made up of (to use George Soros' term) market fundamentalists. If you can't put a price tag on it it might as well not exist right? Does the market capture the value of Shakespeare, Hollywood films from the beginning of the last century that are rotting in storage, or Bill Gates' picture retouched to look like a Borg?

      There are "free market" lunatics (like Sonny Bono, the "music legend" and legislator most responsible for the latest round of copyright extensions) that will seriously propose that copyright should last forever or that there should be no fair use at all. Strong DRM backed up by laws like the DMCA bring us closer to such a world.

      I would love to see Cato and their ilk seriously engage on this issue, I think it gets to the heart of what's at stake and is the most principled opposition to their position. Its disappointing to see that they won't engage on this. I tend to see them as fairly hollow idealouges though, so I'm not actually surprised.

  40. While I think it's wrong to steal the music... by Gorbie · · Score: 2

    ...and have been quite vocal about it here (and been modded down into hades ;), I don't think the problem is the sales getting hurt. More to the point it is people ignoring the laws surrounding the distribution of the product.

    I have and will continue to feel that it isn't right to do this. That aside, it seems to me that the best way to step forward both for the industry and the consumer is for the record companies to provide this music for download at a reduced price. This could save people significant dollars. When considering the retail market, most of the cost is not in making the product, but in bringing the product to you.

    Once the CDs no longer have to be made and trucks no longer need to run around the country in order to get music in our hands we will be able to see savings. No more inflated retail rents, electricity bills, payroll and health benefits to pay. Sounds good to me. This doesn't even start to cover the amount spent in advertising dollars.

    I think the way to accomplish this is to vote with our dollars. Don't buy any more music. Write a letter here and there to the record companies stating that you would buy music if it weren't so expensive and that you will be looking forward to signing up for their download service.

    Anyways...it's just a thought.

    1. Re:While I think it's wrong to steal the music... by ObviousGuy · · Score: 1

      Once they allow downloads off the web, even at lower cost, the music distributors have simply turned over the keys to the kingdom to the pirates.

      The solution would be to distribute the online music with some sort of system that prevented piracy. That would entail DRM, something which the Slashdot zeitgeist doesn't support.

      --
      I have been pwned because my /. password was too easy to guess.
  41. Regarding His Stance on Digital Rights Management by Anonymous Coward · · Score: 0

    He seems to be in favor of this and feel that it's a viable solution. But I think he's forgetting one really simple thing - if the music can be played, it can be copied.

    1. Place CD with DRM in CD player.
    2. Attempt to burn copy.
    3. DRM demands microplayment.
    4. Plug 1/8" audio jack into stereo.
    5. Plug other end into sound card input jack
    6. Push "RECORD" on computer.
    7. Push "PLAY" on stereo.
    8. Enjoy "hacker" status as l33t music baron.

    Until the hardware does sketchville stuff (like how VCR's will mangle signals that leave the unit) to prevent this, it's gonna happen. Even if the hardware does prevent it, you can still get a copy. Even a modest home recording center would be able to create a decent copy.

    Is all this trouble worth it? Maybe not. Is the "falling" CD sales worth the ruckus the RIAA is making? Probably not.

  42. Also by ins0m · · Score: 0

    3. Radio generates revenue via commercial advertisements. Singles are put on the air because their usage is somehow paid for; Internet distribution can't rely on pay-per-click ads because downloaders can't/won't be arsed.

    --
    Never attribute to Hanlon that which can be adequately attributed to Heinlein.
  43. Semi-OT: piracy image by jcsehak · · Score: 1, Offtopic

    I made an image of Bartholomew Roberts' pirate flag modded to have RIAA/MPAA on it. Thought you guys might get a kick out of it. You can grab wallpaper versions here: www.rootrecords.org/joshua_csehak.html.

    --

    c-hack.com |
  44. Pirates not hurting Eminem... by bahtama · · Score: 1
    According to Billboard, Eminem's album is number one with about 2.4 million sold in the last two weeks.

    Then, according to this article, his album was the second most played CD according to Gracenote before it even came out, since people got their hands on pirated copies. This goes a teeny tiny bit against what the music industry is saying, it doesn't seem to be hurting Eminem's bank account.

    --

    =-=-=-=-=-=-=-=-=
    Oh bother.

    1. Re:Pirates not hurting Eminem... by Anonymous Coward · · Score: 0

      Spiderman is one of the most pirated movie of the moment, and it was the fastest movie to reach 100 million dollars of all Cinema History to date.

  45. The Network Effect by Titusdot+Groan · · Score: 2, Insightful

    I think this guy has a real blind spot when it comes to networking effects.

    He's famous for "disputing" the network effect for computers and now he can't explain why file sharing isn't hurting sales.

    Easy, it's a variation of the network effect. If there is more music, if people are hearing more artists and being exposed to music styles they've never heard before, naturally they'll spend more money on music. Some of that goes to hard drives, CD-R's, etc. but some (most?) goes to legal CD's and concert tickets.

    I think this guy needs to read Asimov's The Foundation series and take some pshycology courses before he becomes completely irrelevant!

  46. That sound.. by Anonymous Coward · · Score: 0

    Do not be alarmed by the repeated "WHACK!" and "OUCH!" noise you hear, it's just today's clue stick for the RIAA.

  47. this piece is hardly worth attention.... by cyberon22 · · Score: 2, Interesting

    I'm not sure what is more alarming, that it took this guy 6 months to crank out his piece for the Cato Institute or that someone at Salon actually imagined that anything coming out of there constitutes serious research.

    This guy is not worth this attention. His essay on QWERTY hardly constitutes the rebuttal of path dependence he thinks it does. All it convinced me is that QWERTY isn't as inefficient as everyone claims. The logical gap between stating that and claiming that "lock-in" effects are trivial is enormous.

    But he gets press for ideological reasons. Once you admit to certain kinds of inefficiencies you invite the kind of public debates the Cato Institute hates: the merits of price-caps, or quality controls, or "open access" requirements on things like source code or cable lines.

    It all leads to a ridiculous faith in the efficiency of markets. Getting screwed by your local telephone company? It's not a monopoly! ANYONE could compete with them, so let 'em charge what they will.... i386 a standard? Microsoft?

    I'm personally waiting for this crowd to produce a piece of "serious research" teling us all that Enron really was perfectly efficient after all.... What were we thinking?

    1. Re:this piece is hardly worth attention.... by SlipJig · · Score: 1

      See this page for a good debunking of the Fable of the Keys article. Basically their whole analysis was biased from the start and logically flawed (circular logic, etc.).

      --
      Read my keyboard review.
    2. Re:this piece is hardly worth attention.... by cyberon22 · · Score: 1

      Really interesting link! Thanks for posting.

  48. Fable of the Keys Author by phsolide · · Score: 1

    I think this Liebowitz is one of the co-authors of the famous Fable of the Keys paper. I read the "Fable of the Keys" and I was unimpressed - no new research, just criticism of other's research, all to support a very doctrinaire laissez faire free market position about QWERTY keyboards.

    I'm really surprised that he's letting facts get in it the way.

    --
    Quit playing Monopoly with Bill. Switch to one of many non-Microsoft products today.
  49. From the Salon article... by sweatyboatman · · Score: 5, Insightful
    The Salon article starts out okay; Liebowitz seems pretty level-headed and thoughtful on the subject of file-sharing and its effects on the recording industry. And then they ask him about DRM and he says (among other things):

    DRM, as I see it, is merely the protection in the software, on a CD or whatever, that would allow micro-payments. It doesn't do this yet, but in principle it could. That's what I view as closer to ideal. They can let you do a lot and you pay a higher price, or let you do only a little in which case you'd be paying a lower price.

    I read this with a sinking feeling in my stomach. What do you think he means by "higher" and "lower". In this case, I doubt that the price will be lower than the current cost of music. The record industry doesn't lower prices.

    If DRM with micro-payments is succesfully introduced (read legislated) it wont mean that I pay less for music. The record companies will charge me for my copies. They'll charge me for each time I play it. And though initially I paid 99 cents for that song, after a year, I've payed $5 for that one song and I will keep paying for that song in perpetuity.

    The record industry has a very bad record (no pun intended) at passing along savings to the consumer. The CD was supposed to make the whole process cheaper, lowering prices for the consumer. But that never happened. Instead, the prices went up (which they justified by saying that new technology costs money) and they stayed up.

    So, if they can release music digitally in a way that prevents copying and tracks your use of that music, the price wont drop. It will increase, despite their cost savings on distribution.

    sweat

    --
    It breaks my pluginses, my precious!
    1. Re:From the Salon article... by invenustus · · Score: 1
      If DRM with micro-payments is succesfully introduced (read legislated)
      Slow down. Those are two entirely different things. If the recording industry wants to make CD's harder to copy, and suffer the possible consequences of lost sales and flaws in the system, that's one thing. If Congress makes it illegal to exploit those flaws, or mandates that every CD has to have DRM, that's something entirely different. The first situation is based on free enterprise, the second on coercion.
      --
      grep -ri 'should work' /usr/src/linux | wc -l
    2. Re:From the Salon article... by SirSlud · · Score: 2

      Some wise observations, but I have a small issue with:

      > If DRM with micro-payments is succesfully introduced (read legislated) it wont mean that I pay less for music

      If the thrust of Liebowitz' contention in this article is correct, then we can say that filesharing doesn't significanly damage the market enough to warrent legislation. This is exactly, EXACTLY what happened with the VCRs; the courts said that the VCR didn't do enough damage to the companies' ability to turn a profit to warrent legislation (it also helps that there are legal uses for VCRs as there is for filesharing.)

      So, given optional DRM, if it lets the big guns at least do some accounting and implement micro payments, more power to them. Yeah, probably they'll try and use it as an opportunity to push their margins up higher, but as so long as I can still use my computer to download and buy the second tier indie artists, I'm going to leave that battle up to the folks who like the big label artists.

      I dont think there is anything wrong with DRM (indeed, web sites supported by advertising have tracking/counting software much in the same vain, and its really whats keeping alot of sites out there up online.) .. just legislated DRM. If Leibowitz' hunch is correct and stands up while the SSSCA is being lobbied, thats a huge, HUGE chink in the pro-SSSCA debate's armour.

      --
      "Old man yells at systemd"
  50. Best Quote: by hammarlund · · Score: 1

    "But essentially, you're being forced to pay a company for a right that's protected in the Constitution...

    A: That's right. "

    I'm sorry, but in this country you don't have to pay companies in order to exercise your (fair use) rights.

  51. heres a question by paradesign · · Score: 2
    if piracy really hurts the recording industry, why did i just read an article in last weekend's New York Times Mag. talking about a financial advisor for newly signed bands. his job is to help newly signed bands not spend their milions away.

    or why do i keep seeing all those 'Benzes on dubs' on cribs. if the industry is hurting they sure are not showing it. my stealing is going towards the benefit of curbing the outrageous spending habbits of the recording industry.

    this is fucking rediculous! in my mind, if a band is making an outrageous ammount of money like this, i will steal all of their music with no reget. its the sellout tax! as soon as you sell out its free game for me.

    --
    I want 2D games back.
  52. Sample and Buy by Anonymous Coward · · Score: 2, Insightful

    C'mon. I know we like to trumpet this around as a pro-sharing platform and many of us (including me) have gone out to buy CD's only because we liked what we heard.

    But for almost all of the songs I've downloaded I never had any intention of buying the CD. This is because the CD is $15 for one friggin song. And frankly if the song was $1 I still wouldn't pay for it. The songs I download (as opposed to buy) are songs that I wanted to hear once or twice for some reason and never listen to again. Or, somebody told me about a cool song on a CD they bought, so they mail me a copy.

    I'd say about 90% of what I listen to/download in MP3 form is stuff that doesn't last on my machine for more than 24 hours. The other 10% generally becomes a CD purchase eventually. In fact, the main reason I haven't bought many CD's lately is as a quiet boycott of the industry.

    I like mindless trance. I listen to Digitally Imported, and if I could get those songs on a CD, I'd be willing to pay $10. Sadly I don't know the artists or songs, nor do I think that any of it could be had for $10. So it's Internet radio for me. No commercials, well-mixed.

    I dunno. I think the industry is stupid and paranoid and Hilary Rosen is a friggin idiot mouthpiece. On the other hand, the file-swapping community is defensive, hostile, self-righteous, and unwilling to obey the law. But then, CD's are monstrously overpriced and the quality stinks. In the end, people who want free copies of the music bad enough will get it and the industry can't stop them. Also in the end, the industry will find a way to protect their business model since it's easier to lobby politicians than try to ease their way into an ungodly lucrative market waiting to be tapped: a good on-line subscription service.

    If the RIAA had all its labels agree to a subscription service where you paid a flat fee of, say, $9/mo to use the service, and then a bandwidth fee (something minimal - like .05c/MB), I think we'd have people signing up. But it would have to include most/all of the labels. Nobody's paying $9 for Elektra, and then $9 for Colombia, and then $8 for .. you get the picture.

    Release some songs on the site only. Release some on the CD only. Cross-market. If you buy this CD for $10 you get, as a side benefit, $5 worth of free downloads on the subscription service. A month of no subscription fees. There's an endless marketing potential here, to speak nothing of the possible advertising revenue.

  53. He's wrong in some points... by Tomcat666 · · Score: 1

    Fair use is still there. DRM can't keep you from reading the material, as long as you pay the price. Some say, Well, how can you take a paragraph and copy it anymore? That's what we normally consider to be fair use. But the fact is, you can still do that. You might not be able to cut and paste but as long as you can read it, you can type it.

    They talk about media in general, not only about books.
    Still he thinks that DRM won't kill creations derived from DRM'd material.

    For a book, it might be true that you can just read and then type it.
    But what about music or movies? I can't just watch a movie or listen to some music and then transfer it from my brain to my own work again. :)

    Maybe I misunderstood what he wanted to say?

    What makes you so sure that DRM won't turn off consumers and make them focus on the rogue file-sharing services?

    If it turns off consumers, they'll have to remove it or lower the price. The people selling these things want to make money, which means they want to give people whatever it is that they want to pay the most for. They want to maximize profits and if they change their product and no one wants to buy it, they'll change it back in a heartbeat. That's the beauty of the market. That's why it can't get too far afield. If they get every consumer mad at them, they'll be in big trouble.


    The fact that the big companies holding the rights to creative works are monopolies renders this way useless.
    Of course people will be turned off by DRM'd media. But what would you do in a media company boss's wet dream of a world without unlicensed copies?

    Stop buying movies and music altogether? That would be a boring world.

    Stop buying movies/music until the prices drop? Sure, have fun waiting some years until the media companies run out of money.

    Legislation (DMCA) and monopolies make it hard for a "consumer" to use their money politically...

    --
    Two Worlds - One Sun [Spirit]
  54. Yes by Gorbie · · Score: 2

    Sorry...I meant to put that in the post. Agreeable or not, it does make the music more accessible and cheaper for all.

  55. Economics != Copyright Morality by Anonymous Coward · · Score: 0

    The justification for snagging stuff - weather it be music or software:

    "There's no way I'm ever buying the entire Puffy CD, or there's no way I'm ever spending $50 of yet another Halflife mod, etc., so downloading it doesn't matter. Either way they're not seeing my money."

    Whatever impact filesharing has on the music industry, the economics of it still boil down to product quality. Argue all you want that it's morally wrong to listen/use copyrighted stuff without paying, but I bet 90% of the music or software you download you wouldn't pay for regardless...

  56. Of course on the flip side by Anonymous Coward · · Score: 0

    I've downloaded music specifically so I don't have to buy the album. I know this makes me a pirate, but the convenience of downloading rather than going to fye just can't be beat. I could go out right now and buy Dark Side Of The Moon, but why bother, when I have a decent quality version of it for free?

    1. Re:Of course on the flip side by Anonymous Coward · · Score: 0

      yeah I hate to leave my room too, especially when I haven't showered or shaved in a week

  57. Recession by anonymousman77 · · Score: 1, Insightful

    Wow, a 5% drop in CD sales. Must be because people are stealing songs. Couldn't have ANYTHING to do with the fact that we're in the worst economic times since 1991, could it? Nah. Must be those m@d h@xorz.

  58. Drop the price by Halmos · · Score: 1

    I'd buy CDs again if the price were dropped. Forget encryption and P2P. $8 CDs will get them moving off the shelves again. Oh ya, and better music would help too.

  59. *sigh* by Anonymous Coward · · Score: 0

    Yep, it's the AC here.

    Why does this need to be said?

    If A correlates with B then either

    A causes B
    B causes A OR (and pay close attention, cos this is a biggy)
    there is a third factor C, which influences A and B

    Hmmmm; let's see, in 1999 the economy was good and in 2001 it was less good.

    Sales up in '99
    Sales down in '01

    Whoa; correlation!

    Aint that freaky?

  60. TANSTAAFL by toupsie · · Score: 3, Troll
    Anyone that thinks that appropriating another person's property without compensation or permission has no impact upon the victim is delusional even if that property is virtual/digital. Even if the lost is 1 penny, its still a loss, its still theft. Its not your place to tell the industry that "theft of your product is actually beneficial to you, so we are going to steal from you until the banks can't hold all your money". Its intellectual malpractice to justify these actions and we have read it all on this forum.

    My favorite specious argument is that the artists don't get money from their recordings. Too bad. Let me cry them a river while they are passed out on the Green Room floor with a needle in their arm. They should have signed a better contract with the record companies or been entrepreneurial enough to distribute the music themselves. However, P. Diddy seems to be up to his eardrums in Christal. Eminem still has enough cash on hand to bust off caps like its the 4th of July outside his recording studio.

    All in all, these arguments supporting theft of music are smoke screens to justify boorish behavior by people that are irresponsible and do not want to respect other's property. File sharing has just brought these people out from under the rock they hid before P2P became king -- I exclude the 5 of you that use P2P networks to gain digital copies of your Frampton "Comes Alive!" LP which you bought in middle school.

    Its very simple. If you didn't buy it and you were not given the right to use by the copyright holder, its not yours to use and enjoy on your hard drive. Grow up, get a job and purchase your music so I don't have to deal with poorly planned copy protection schemes that cause my Mac to choke on Celine Dion CDs my fiancee forces me to listen too. If you don't like the method of distribution, contact the business and explain yourself. A smart business that receives feedback from enough customers will modify its business plan to compensate for the demand. If they don't, start up a Geocities web page and bitch -- just don't STEAL!

    Maybe Microsoft should just start appropriating GPL-ed code and justify it by saying that they wouldn't have purchased the code in the first place or the price of compliance with the GPL is just too high. That's about the same mentality. Property is to be respected and I surprised that someone from the Cato Institute saying otherwise. They aren't supposed to be communists with their whole property is theft concept.

    --
    Strange women lying in ponds distributing swords is no basis for a system of government.
    1. Re:TANSTAAFL by PigleT · · Score: 2

      "My favorite specious argument is that the artists don't get money from their recordings. Too bad. Let me cry them a river while they are passed out on the Green Room floor with a needle in their arm. They should have signed a better contract with the record companies or been entrepreneurial enough to distribute the music themselves."

      What work or addition of extra value does a "label" actually do to the resultant CD at the end of the day?
      Given that I believe the answer is "stuff-all", that music labels do nothing but own studios and know "contacts" who can push the "make millions of CDs" button, why is it folks at this point in the chain who are making *all* the money, sorry, noise?

      Maybe I *am* all in favour of a direct-to-listener 'Net-based approach after all...

      --
      ~Tim
      --
      .|` Clouds cross the black moonlight,
      Rushing on down to the circle of the turn
    2. Re:TANSTAAFL by toupsie · · Score: 2
      What work or addition of extra value does a "label" actually do to the resultant CD at the end of the day? Given that I believe the answer is "stuff-all", that music labels do nothing but own studios and know "contacts" who can push the "make millions of CDs" button, why is it folks at this point in the chain who are making *all* the money, sorry, noise?

      Doesn't matter. The artist signs a contract. They should know better. Their lawyers should know better. If the labels were not valuable to the artists, they wouldn't associate with them in mass. No one is pointing a gun at the head of the muscian (outside of Shug Knight) and telling them to sign a contract. If a label is able to make millions off an artist that is stupid enough to sign a bad contract, more power to them.

      Maybe I *am* all in favour of a direct-to-listener 'Net-based approach after all...

      I am too. That is why I urge the artist to go it alone. If their music is good enough and generates a large enough fan base, they can make a killing getting rid of the label.

      --
      Strange women lying in ponds distributing swords is no basis for a system of government.
    3. Re:TANSTAAFL by Rogerborg · · Score: 3, Informative
      • Anyone that thinks that appropriating another person's property without compensation or permission has no impact upon the victim is delusional even if that property is virtual/digital. Even if the lost is 1 penny, its still a loss, its still theft.

      You're quite right. Now, explain how much Bertelsmann's bank balance drops if I download a bunch of data that a given application on a given OS might interpret as a "song" by Britney Spears. I want to know how much less money they have after I download that data, not how much more they might have gained if I had bought a license to obtain a copy of.

      Is it a penny? Is their bank balance one penny less if I download that data? No, it isn't. But, hey, that might be a rounding error, so what if I download it ten times, a hundred times, ten million times? Does their bank balance drop every time that I do that? Gosh, you know, it doesn't. How about that.

      The first part of your argument is flawed, but that's a common mistake. You are really arguing only that it's "right" that people should respect copyright law. Fine, let's argue that. Why? What "science or useful art" is being promotd by copyright law as applied to music?

      Don't just assert it, argue it. Convince us that protecting Bertelsmann's profits (and indirectly that of their meat puppet, Britney Spears) is what the Constitution intends, or what copyright law is supposed to achieve. Because I am having a hard time understanding how a law explicitely and clearly intended to improve the quality of content produced by talented individuals has any relevance to the law as it stands now, which largely protects the profits of huge publishers who buy and sell those individuals as commodities, while confidently asserting that the purpose of copyright law is to protect quantity of sales.

      Perhaps you believe that using DRM to leverage another few thousand sales of Britney Spears albums is "promoting the progress of a useful art", but I would argue (using your style of flat assertion) that it self evidently isn't. Convince me.

      --
      If you were blocking sigs, you wouldn't have to read this.
    4. Re:TANSTAAFL by toupsie · · Score: 2
      You're quite right. Now, explain how much Bertelsmann's bank balance drops if I download a bunch of data that a given application on a given OS might interpret as a "song" by Britney Spears. I want to know how much less money they have after I download that data, not how much more they might have gained if I had bought a license to obtain a copy of.

      Theft is theft, no matter how much perfume you spray around it. You are taking property from Bertelsmann without engaging in an economic transaction that Bertelsmann has set up to distribute their product. Its theirs, not yours. You do not have the right to dictate their distribution while their property is still under copyright protection. That is arrogance.

      Is it a penny? Is their bank balance one penny less if I download that data? No, it isn't. But, hey, that might be a rounding error, so what if I download it ten times, a hundred times, ten million times? Does their bank balance drop every time that I do that? Gosh, you know, it doesn't. How about that.

      Their bank balance does grow from your theft. That is the point. You are taking their product without compensation. That is the financial loss, that is the theft. Britney Spears and Bertelsmann are not in the music business to give away the product for free.

      To promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries; Don't just assert it, argue it. Convince us that protecting Bertelsmann's profits (and indirectly that of their meat puppet, Britney Spears) is what the Constitution intends, or what copyright law is supposed to achieve.

      What part of "exclusive right to their respective writings" don't you understand? By your interpretation of this, no one would want to engage in "writings and discoveries" as their would be no financial benefit to the activity. This nation was set up as a Capitalistic society not an altruistic hippy land as much as some want it to be. The founding fathers realized that to promote the arts and sciences, there must be an incentive for the producer thus protections were afforded to the creator. Britney and Bertelsmann have exclusive right to their music and the method of distribution, not you, while its under copyright protection.

      Its amazing the lengths that people will go to justify intellectual property theft when it comes to music but jump up and down when the GPL is violated by Microsoft and other companies.

      --
      Strange women lying in ponds distributing swords is no basis for a system of government.
    5. Re:TANSTAAFL by Erasmus+Darwin · · Score: 2
      "What work or addition of extra value does a "label" actually do to the resultant CD at the end of the day? Given that I believe the answer is "stuff-all","

      Sounds like you're living in an idealistic, fairy tale world where you don't have to worry about financing, marketing, promotion, distribution, and all those other things that're unfortunate necessities in the real world. You don't just magically jump from "I have a good song." to "Profit." -- there's that mysterious step 2 in-between.

      Hell, even in the case of the recently mentioned fightcloud.com (a service selling CDs from unsigned artists for just "shipping and handling"; artists received a modest cut of the sale), the artists' main interest still seemed to be in getting signed by a real label.

    6. Re:TANSTAAFL by mwa · · Score: 3, Insightful
      You are taking property from...

      Subtle difference, but no you are not. You are infringing on their copyright. The whole justification behind the constitutional protection of intellectual works is that the founding fathers could not reasonably ascribe to them the attributes necessary to be considered "property". Hence copyright law and property law are two distinctly different animals. "Theft" is a property law term and is not applicable when discussing copyrights.

      What part of "exclusive right... don't you understand?

      I don't think that's what the poster was challenging. I think they were arguing that a Britney Spears album does not qualify as a science or a useful art and therefor is unworthy of copyright protection. It's a good point, but do we want to turn judges into music critics (or, more frightening, vice versa)?

      Its amazing the lengths that people will go to justify intellectual property theft

      It's amazing that people don't understand that the term "intellectual property" is a phrase cooked up by interests vested with copyright to try to extend property protection to cover things that the consitution specifically forbids it to cover.

    7. Re:TANSTAAFL by nfk · · Score: 1

      I agree piracy of software and music is stealing, I'm not so sure about the ideological aspects. On the surface it may seem to be an altruistic community because of the sharing but at the end of the day that is probably just an ill argument to try to justify the morality of it, people just want to get something for nothing. It could even be seen as capitalistic in the sense of trying to get the most you can for the least possible pay, especially since there's no risk involved.

    8. Re:TANSTAAFL by bnenning · · Score: 2
      Property is to be respected and I surprised that someone from the Cato Institute saying otherwise.


      He didn't say otherwise, nor did he say that unauthorized distribution of copyrighted material should be legal. All he said was that such activities are having little or no effect on the publisher's profits, contrary to their claims. This is an important point to make because it negates the primary argument of the MPAA and RIAA when they call for user-hostile and unconstitutional laws (DMCA, SSSCA, et al) that they are losing billions of dollars due to piracy. They're not, and their real goal is to use government power to eliminate the general purpose computer by turning it into a device that views only approved multimedia content (for a fee each time, of course). I consider their actions far more immoral than some teenager downloading MP3s.

      --
      How to solve most of our problems: 1.Lots of nuclear plants. 2.Cure aging.
    9. Re:TANSTAAFL by bnenning · · Score: 3, Insightful
      Theft is theft, no matter how much perfume you spray around it. You are taking property from Bertelsmann


      And copyright infringement isn't theft, just like trespassing isn't armed robbery, even though both are wrong.


      >The founding fathers realized that to promote the arts and sciences, there must be an incentive for the producer thus protections were afforded to the creator.


      They also recognized that copyrights are a limitation on freedom of speech and a government-granted monopoly, and therefore should be restricted (note "limited times", which has been routinely ignored by Congress and will hopefully be restored by Eldred vs. Reno). By placing limits on copyright, the Constitution clearly emphasizes that intellectual property is not equivalent to physical property. (I just had this debate with Bush2000 on FR, scary. Obviously you're much more reasonable.)


      I agree that copyrights should be protected (although not in perpetuity), but overstating the impact of piracy plays right into the hands of those who would remove our rights for their benefit.

      --
      How to solve most of our problems: 1.Lots of nuclear plants. 2.Cure aging.
    10. Re:TANSTAAFL by revery · · Score: 2, Interesting

      If you believe that an (talented?) individual has the exclusive right to their work, do you then believe that the individual cannot sell that right or use it in anyway that benefits them?

      If you believe that the exclusive right to an individuals work is a tangible right and able to be transferred by contract and agreement then the fact that Britney Spears chose to sell her work and it's copyright protection to a company is irrelevant.

      Why do you want it so bad? Why do you have a right to it because it exists? If she sings it in front of you, you heard it and you have a right to the memory of it. If she sells it to you, you can do anything with the data from that copy to enjoy and listen to it all you want. But posession of it must remain with you.

      If I write something it belongs to me. If someone breaks into my house and steals what I wrote along with my chainsaw does that mean you can take what I wrote with no feelings of guilt, but the chainsaw you would be wrong to take? Why? Explain that to me. If I give something to a friend, I did not give it to you. If I broadcast something over airwaves then you have physical access rights to the data on those airwaves, but you can't ditribute them to everyone (i.e. if I give you a copy of my book you have the copy not the right to make and distribute copies).

      Copyright is simply this: an implicit contract which must be opted out of by the author. If you buy something that is coyrighted you agree to that contract as a citizen of the United States or as a citizen of any country that recognizes copyright law.

      This part has nothing to do with your comment:

      Most of what is distributed today is done so with the understanding that it falls under the protection of copyright. You can't assert that without copyright everything (or even most) of what is on the market would still be on the market.

    11. Re:TANSTAAFL by AntiNorm · · Score: 2

      Now, explain how much Bertelsmann's bank balance drops if I download a bunch of data that a given application on a given OS might interpret as a "song" by Britney Spears.

      Their account balance will drop when they pay your psychiatrist bills after having to listen to Britney.

      --

      I pledge allegiance to the flag...
      of the Corporate States of America...
    12. Re:TANSTAAFL by Anonymous Coward · · Score: 0

      Anyone that thinks that appropriating another person's property without compensation or permission has no impact upon the victim is delusional even if that property is virtual/digital.



      If there is an outdoor concert playing and you go stand outside the gates on the street, listening to the music and watching the bandstand, are you stealing? Most people would say no, because the concert act hasn't really lost anything. The same goes when you download music. In both cases you are taking advantage of some leakage in the system.

    13. Re:TANSTAAFL by Starcub · · Score: 1
      All he said was that such activities are having little or no effect on the publisher's profits, contrary to their claims. This is an important point to make because it negates the primary argument of the MPAA and RIAA when they call for user-hostile and unconstitutional laws (DMCA, SSSCA, et al) that they are losing billions of dollars due to piracy.

      In the article Loebowitz states:
      ...is that it's very hard to get hard data on CD and record sales.
      Hard for who? The government? Liebowitz?Certainly this data is being collected by retail outlets. Certainly these retail outlets are collecting this information for a reason. I suspect this information is far more valuable to the RIAA and MPAA than it is to the sales outlets. Therefore, I believe the RIAA and MPAA are getting this information. Also, I suspect that the RIAA and MPAA are far more knowledgeable about what factors affect their sales then anyone else. Therefore they are most qualified to interpret this data. That said, I find it very difficult to believe that "for profit" organizations would act in such a way as to restrict their lifeblood (profits).

      ...their real goal is to use government power to eliminate the general purpose computer by turning it into a device that views only approved multimedia content (for a fee each time, of course).

      I believe what you meant to say was:
      "...their real goal is to use government power to restrict the capability of the general purpose computer to viewing only approved multimedia content (for a fee each time, of course)."

      What do you mean by "approved media content"? What evidence do you have to support this? This may or may not be immoral. Jumping into the realm of morality requires consideration of many factors. The morality of the RIAA and MPAA's business practices is irrelevant to the consumer however; their actions do not justify theft. If you don't like it, vote with your money.
    14. Re:TANSTAAFL by nfk · · Score: 1

      I don't know about laws regarding concerts but there is a significant difference. When you download you are copying the music and that infringes copyright laws. Whatever the legal situation is in a concert, you are not copying the music.

  61. Pseudo-Libertarian by freeBill · · Score: 4, Interesting

    I'm glad you said "mostly" Libertarian because the Cato Institute is the classic example of what I call pseudo-Libertarian.

    True Libertarians are opposed to all threats to our liberty, whether they come from other people, from corporations, or from government. Pseudo-Libertarians are willing to accept any amount of threat to their liberties just so long as they don't come from government. In fact, they are willing to support threats to our liberty from corporations and from wealthy individuals if they can imagine that the government action which would protect us from a real threat to our liberties from business could somehow be construed as a government threat.

    --
    Eternal vigilance only works if you look in every direction.
    1. Re:Pseudo-Libertarian by Anonymous Coward · · Score: 0

      Government has a monopoly on use of force in most societies. Only government (legally or otherwise) can hold a gun to your head and leave you with no legal recourse.

      Bill Gates has NO power over you. Neither do most corporations or wealthy individuals.

      Indeed, the bulk of the power that corps and wealthy individuals wield, is that which they gain by BUYING politicians.

      Eliminate the power of politicians to control every aspect of your life and these other issues would be greatly reduced.

    2. Re:Pseudo-Libertarian by Reductionist · · Score: 1

      Unfortunately most of the so called libertarian organizations out there are what you call the pseudo-libertarian type. They advocate big business and privitization while pretending that goverments are the only organizations that become less efficient and more corrupt the bigger they get.

      A good example in this is the 1996 Telecommunications Act which paved the way for corporations like Clear Channel Communications to homogenize radio programming. Prior to the '96 Telecommunications Act companies were prohibited from owning more than two stations in any given market and no more than 26 nationwide. Once that cap was removed the market rapidly consolidated with the end result being a lower quality product for the consumer - centralized programming, homogenized playlists, and more commercials per hour to pay for Clear Channel's acquisitions debt. Clear Channel now controls something like 1200 stations nationwide and around 60% of the FM Rock format.

      Of course RIAA has a role in this as well, as the five corporations that control 85% of the recording industry are the only one's who can afford to pay to have their songs 'promoted' on Clear Channel stations. There's a lot of great new music out there, but for some strange reason the 'free market' in this case is doing a very poor job of getting to consumers.

      I suspect this is one of the reasons why P2P is not hurting music sales as much as Mr. Liebowitz expects. He doesn't see the flaws in the current distribution system because his unfailing faith in the 'free market' won't allow him to. It's never crossed his mind that P2P turns people onto music that RIAA and radio largely ignore.

    3. Re:Pseudo-Libertarian by alizard · · Score: 4, Insightful
      Pseudo-Libertarians are willing to accept any amount of threat to their liberties just so long as they don't come from government

      Anyone who reads Declan's politech mailing list or any other list where the Cato Institute frequently releases its propaganda has had his face rubbed in that.

      However, what struck me about the Salon interview is... the poor quality of the thought that underlies the Cato Institute pronouncements. on various issues... the detachment from reality.

      I read the article and kept wondering what rock this guy had been living under for the last few years.

      "and then he tried to transfer the sound to the digital audiotape that he had, and it wouldn't do it. He blamed DRM for that.

      I wrote him back and said, look, be mad at the Digital Home Recording Act. That's what said you can't record from a digital source onto a digital audiotape. It has nothing to do with DRM."

      Being locked out of the use of one's own software and hardware AND intellectual property to protect corporate copyright holders is irrelevant to DRM? What's this guy smoking? I think we all need to know so we can avoid it.

      His comments about fair usage in an academic context... perhaps he hasn't used computers long enough to have gone through changes in digital format, perhaps he thinks that floppies were always 3.5" and CD-Rs were the first portable mass storage.

      Perhaps he really has no clue that a DRM imposed by a company that no longer exists in a legacy media format might make it impossible to access information necessary to legitimate academic research... anything from a masters' thesis to a kid trying to find out what music in the early 21st century sounded like.

      I guess "no clue" is the best way to characterize this guy. Is he typical? I strongly suspect so.

      Why are we taking the pathetic assholes at the Cato Institute seriously?

      Not that they're totally useless, if they happen to support your position on censorship (government ONLY, they don't seem to understand that free-enterprise censorship exists) by all means use them to bolster your position's credibility, when dealing with government officials, if they aren't familiar with the Cato Institute, it might help.

      Just don't take them seriously even if they happen to be on your side.

    4. Re:Pseudo-Libertarian by Anonymous Coward · · Score: 0

      let's privatize the police/army!

    5. Re:Pseudo-Libertarian by tharanger · · Score: 2, Insightful

      First, this article reeked of the usual slashdot socialist nonsense. Then, reading about "psuedo libertarian" malarchy compelled me to respond.

      Here's a brief lesson in AVOIDING having liberties threatened by commercial entities. Stop giving money to that entity.

      Very simple, eh?

      Libertarians stand for free markets, government that operates on the rules outlined in the U.S. Constitution, and personal responsability.

      A government that punishes success (anti-monopoly laws, welfare programs, tariffs and protectionism) is no different than the government that invades the home, confiscates weapons, and violates other civil liberties.

      You cannot have it one way and not the other. The only way to achieve true market integrity and prevent "uber-corporations" from taking over (a nonsensical conspiracy as it is) is to leave the power of choice to the consumer. This is NOT a role of government, and mandates that government NOT be involved.

      The free market only fails when government regulations prevent it from being truly free (see health insurance, et al).

      Now, to the issue of the article.

      Nowhere is it stated that "downloading is hurting record sales, we need to help the poor wounded record companies".

      Rather it states, quite plainly, if people shift thier desired form of media -in this case from CD to strictly MP3- then in the long run CD sales will suffer. This is the EXACT same thing that occured when people shifted from record to 8-track, from 8-track to cassette, and cassette to CD.

      Regarding copyright, it merely examines the flaws in current copyright legislation and possible ways to preserve a market where the artist is able to receive adequate compensation for their work.

      If ignorance is bliss, then more and more I've determined the mass of slashdot readers must be the happiest people on earth.

      quoth tha Ranger

    6. Re:Pseudo-Libertarian by look · · Score: 1
      Anyone who reads Declan's politech mailing list or any other list where the Cato Institute frequently releases its propaganda has had his face rubbed in that.

      Don't I know it. I've got my share of libertarian tendencies, but these days I'm increasingly a civil libertarian first and foremost. I don't care who is taking away my freedom. I want to stop them. Sometimes government creates these problems; sometimes it doesn't.

      Declan's list is so pathetic when he launches onto one of his "the market can do no evil" rants in favor of DRM or EULAs. I call it "Declan's Cato Institute Dick Sucking List" because of his willingness to forward all the latest Cato propaganda to the list.

    7. Re:Pseudo-Libertarian by jeff32 · · Score: 1

      Pseudo-Libertarians are willing to accept any amount of threat to their liberties just so long as they don't come from government.

      I really enjoy how you perverted the English language to support your point of view.

      Libertarian: One who advocates maximizing individual rights and minimizing the role of the state.

      What you call true libertarianism isn't libertarianism at all. Libertarians believe that the only role of government is to protect individual rights, and that individual rights can only be violated through the use of force. Corporations and other people are not free to forcibly compell others to deal with them in any way in a libertarian society. Therefore, they couldn't possibly be a threat to personal liberty. If they were a threat in the sense that I just mentioned, a libertarian would view it as proper for the government to stop them.

    8. Re:Pseudo-Libertarian by alizard · · Score: 2
      The list is also extremely useful when he isn't doing that. That's why I've been a subscriber for years and I assume that's why you are as well. I regard politech as an important public service. I can deal with Libertarian cult propaganda in order to get it.

      While my position on quite a few things, such as ending the "War on Some Drugs" almost exactly corresponds with the Libertarian Party platform, it's important to recognize that corporations can be as great a threat to civil liberties as government is.

      We aren't required to agree with Declan's personal political philosophy in order to make constructive use of the information he presents. Though I've wondered if the information he gets and doesn't choose to post is more interesting than what he posts. However, I have that problem with slashdot as well.

      In either case, I'll keep using both as long as what I get here or on politech is useful.

    9. Re:Pseudo-Libertarian by VinceK · · Score: 1

      Perhaps he really has no clue that a DRM imposed by a company that no longer exists in a legacy media format might make it impossible to access information necessary to legitimate academic research... anything from a masters' thesis to a kid trying to find out what music in the early 21st century sounded like.

      I think what you're missing is that without the legislation to back them up, DRMs are little more than an annoyance. A company may "impose" a DRM on us, but if there is nothing preventing a person from circumventing it or telling others how to circumvent it, who cares?
  62. A synopsis by Rogerborg · · Score: 5, Insightful

    Here, effectively, is what Stan Liebowitz has just said.

    • I was talking complete horseshit in my last Cato institute paper. My theory was wrong, and didn't agree with figures that were available then that any idiot could have pointed me at. Incidentally, I still don't have any suggestion as to why sales haven't dropped as much as I shrieked that they would; my only real point is that I was totally wrong, and I don't know why.
    • But wait, I have a shiny new bunch of theories based on my latest insights and suppositions! And because I screwed up last time, I'm bound to be right this time! Law of averages, right?
    • And my theory is... wait for it... that rights holders should be able to charge whatever they want, and use any DRM that they want, and the market will take care of everything.
    • I'm done now. When do I get my check?

    And I'm done with listening to egomaniacs like Liebowitz. I'll stick to my Magic 8 Ball for my predictions on how DRM and P2P will turn out. It might not be more accurate than chumps like Liebowitz, but at least it doesn't collect a fat fee every time it spouts a random prediction.

    --
    If you were blocking sigs, you wouldn't have to read this.
    1. Re:A synopsis by bnenning · · Score: 2
      Come on. He admitted he was wrong, is investigating the reasons for his incorrect conclusions, and all you can do is insult him? He's shown much more honesty than I've come to expect from policy analysts.


      And my theory is... wait for it... that rights holders should be able to charge whatever they want, and use any DRM that they want, and the market will take care of everything.


      And in the absence of one-sided laws like DMCA (which he opposes), this is true. The MPAA should be able to put whatever DRM they like on their products, but they should not be able to have you arrested for breaking it (unless you then proceed to illegally distribute copies). In this scenario, products with strong (i.e. annoying) DRM will either be cracked or will be defeated in the marketplace by competitors with more reasonable or no DRM. The **AAs know this, which is why they need the DMCA and SSSCA to make both of those alternatives illegal.

      --
      How to solve most of our problems: 1.Lots of nuclear plants. 2.Cure aging.
    2. Re:A synopsis by shario · · Score: 1

      Stop complaining, it's a standard Cato Institute way of doing research!

  63. some economics of the issue by dcgaber · · Score: 2

    I was just talking to a friend of mine who is the manage of a local big name record chain. He wants to get out NOW because his profit margins are so low these days. He blames it on p2p and says that record sales have gone down in the last few years (he has been managing franchises in different locations over the last 7 years or so). Granted, his location is smack dab in the middle of a big city university campus and his biggest customers are students (who have the time and resources to burn music, but $15+ is too much to buy music).

    I told him, these companies need to adapt or die (taking a page from that article countering the deToqueville Institute FUD on OSS). I suggested either they need to offer a premium on the discs that you can't get through burning, lower the prices, or change their model to a kiosk stand where you pick and chose your music, and within a few minutes out comes a customized CD with nice linear notes, of what you want to hear, at a reasonable price.

    His responses were, they have tried offering better premiums, that has not worked; the price margin for the retailers is about $1 per new CD so he can't budge lower; and the companies don't want to offer a la carte music. They tried cd singles before and could not make a good margin on that, they tried kiosks before and took them away. Really it comes down to promotion, and they want to promote a whole unit where they can release singles at a time. He couldn't really argue against me when I said that before record companies had a monopoly on distribution, now with broadband, that monopoly on promotion and distribution is being altered.

    His choice on whether to adapt or die is he wants to get out of the music reatail biz and open other franchises.

    I still think kiosks in a mall would be a viable solution. It eliminates the retailers biggest cost and that is CDs go stale. If you can't sell them, you have physical property that cost money but is worthless, wheras electronic bits that cost per burn never go stale and don't take up shelf space.

  64. Whatever happened to patronage? by delphi125 · · Score: 1
    In the third page of the article, he states he still believes in DRM & micropayments as a solution. Now for my rant:

    There seems to be this idea that we have to pay for everything. Now that's fine to a degree, but sometimes it goes too far. Most of us in Europe (and the USA) have it pretty good; particularly those of us fortunate enough to be able to go online (not that I could live without, but it is a luxury). So the theory goes: Music is a luxury too, so everyone who wants it has to pay (whether they are able to afford it or not). Pay by listening to ads, pay by buying CDs. Same for films (on cable or video), same for software.

    Now back to my title word: patronage. The current main patrons are advertisers, and to a much lesser degree governments. They both want something back: in the case of advertisers, up to 30% of the time you listen/watch; governments have a range of reasons from propoganda to the virtuous (e.g. Canadian Film Board). Why aren't there any other generous patrons? I mean, I've seen the Mona Lisa, and yes I had to pay to enter the Louvre, but that painting wasn't (first) sold with the idea of 'Hmm, nice smile, better get a million copies made up'. A patron paid to have a painting of his wife or whatever made (excuse any incorrectness, I may have the wrong example but this certainly happened in the past). To the best of my knowledge, there are times when the Louvre (and all Paris museums) can be entered for free; the normal charge is fair and goes to maintaining the existing collection and purchasing new. Why can't this happen with less scholarly entertainment?

    So the big music companies see some challenge to their monopoly? Their business model is at risk (that of the artist isn't, there will always be demand for new art). Why not - instead of looking for new ways to fleece people - set themselves up as the new patrons of the arts? I'm not saying they should do this for nothing. I'm sure there would be plenty of people willing to be 'micro-patrons', but I'm equally certain they would want their money spread among the artists rather than going to shareholders. I can't see any of the current pack doing this (except perhaps Bertelsmann), for one simple reason: Greed. Not just by the companies, but also by the artists. (They say they want to be rich and famous, but when they start being hassled by the tabloids, they just want to be rich).

    I've just realised there is a company which works somewhat like this, they make windows games run under linux and have a voting system to prioritize development (someone will have the details I'm sure, sorry but I'm in rant mode).

    What really pisses me off is not the having to pay, it's the having to pay twice (or more). So micropayments every time I play a song (even if technically feasible) is not on. Hell, they'd probably want a song recognition system in your windpipe which would play ads if you sung unlicensed songs.

    So we have the following situation: there are people who want to listen to music and/or watch tv, there are companies that want to get their message across, and their are artists who want to have their music heard while they can also feed their families (or snort coke). Could perhaps the companies sponsor the singers? Perhaps not one-to-one (e.g. whatever cola and that kid from the Jackson 5 who grew up to be white), but in a 'this artist brought to you by ' way. This is how 'soaps' got their name; big long soap commercials with a storyline. Most music videos are pretty crap (except for 'Girls on film', never liked a Duran Duran song till that video came out, still don't know any of the lyrics or much of the tune :), they could have giant product placements in the visuals or whatever.

    Current commercials are awful, here at least they bump up the volume and then they are surprised that people skip/pee etc? If broadcasts of shows were interrupted by a good new song for a few minutes, people might actually be interested, even if the screen just showed some brandname.

    BTW, I was kidding about Michael J., but I really don't know which coke brand. I know they had a red logo, but that doesn't really cut the field down much, does it? Just goes to show how well advertising works!

    So in summary, lets have companies sponsor music (beer companies in nl do this quite a lot), and if the music companies want to survive, let them do it by offering a good product (e.g. well produced lyrics book), or by becoming the middlemen allowing the general public to become micro-patrons.

  65. My Prediction... by lynx_user_abroad · · Score: 1
    Two years from now, when more people have broadband, but nobody actually uses it because it costs too much, the MPAA and the RIAA will lament the opportunity missed (and the profits lost) by not offering their wares for sale on-line while the infrastructure supported it.

    --

    The thing about things we don't know is we often don't know we don't know them.

  66. oh? by Anonymous Coward · · Score: 0

    "Anyone that thinks that appropriating another person's property without compensation or permission has no impact upon the victim is delusional even if that property is virtual/digital. Even if the lost is 1 penny, its still a loss, its still theft."

    Sounds like taxes to me.

  67. Entertainers != Good Income by vonkraken · · Score: 1

    Why is it that entertainers today feel that they have a right to make all this money?

    Throughout history entertainers have relied upon patrons and handouts to pursue their crafts. It is only in recent history that various technologies have allowed them to make money charging for recordings of various sorts.

    Now that they only mechanism which has enabled them for the first (only?) time in history to make vast amounts money is in danger they are upset. In the David Bowie article mentioned on Slash this week stated (paraphrase) 'Get ready to tour your butts off.' Because that is called earning your money. Show up somewhere at a specific time, ply your trade and do a good job, like all the rest of us out here in the world. Not sit up in your mansion and let the money roll in while crying that people are stealing from you as you sip your margarita.

    Copyright may be a thing of the past, but more fundamentally I think entertainers are going to have to earn their money like the rest of us and I for one am not crying for them at all, but I will buy concert tickets to see a good live show, or pay cover charge for a cool band playing at a bar.

    --VonKraken

    1. Re:Entertainers != Good Income by mattm76 · · Score: 0

      Simple economics. Because of technology and the free market, an artist, if he's good enough, has the ability to reach millions of people through various forms of media. The market will decide how good it is. If it's good, he's a SUPERSTAR. Everyone is better off when that happens because we get to hear good music and it encourages others to create something just as good or better. Evidence: look at how many kids who want to 'be like Mike.'

      Besides the satisfaction that derives from entertaining people, touring is used to promote music. And without the mass media giving us the opportunity to hear that artist, no one would know about the performer and his next concert. We need the record companies and the radio stations they control, as 'evil' as they may be, or else we wouldn't have any superstars.

  68. not quite by beleg777 · · Score: 1

    The people selling these things want to make money, which means they want to give people whatever it is that they want to pay the most for.

    That is certainly not supported by the facts. More and more, the people selling these things want to make it so that people HAVE to buy thier thing, so that they don't have to worry about if the customer wants to buy it.

    Overall, he's not too far off, but I dislike his view on DRM. It's like Robin Hood, except backwards. He wants to take something away from everyone so that money goes up the ladder. I don't see why those handfull of people at the top of the recording industry deserve another 10% sales more than users deserve the freedom to use technology to move data that they own.

    --

    Science may someday discover what faith has always known.
  69. His "belief"????? by Anonymous Coward · · Score: 0

    "Do you honestly believe what you are arguing? Do you honestly believe that it's possible that P2P networks cause people to buy more music?"

    Whether he's honest or not, what does your or his "beliefs" have to do with a proper statistical analysis?

    Answer: Nothing.

    You're arguing on the basis of limited experience and intuition. Surely even you can appreciate this means nothing.

    My actions or yours are irrelevant. What is more interesting and important is hard, cold data that we can interpret.

    Please try to understand the difference. Its not like saying you're wrong; its just that your experience is just that: your experience.

  70. Accounting for some difference in numbers... by Wolfier · · Score: 2

    1. A lot of people who download music are not going to buy the CD anyway even if downloading is impossible. They simply don't have the habit of buying CDs.

    2. A lot of swapped songs are old, while you don't see the recording companies re-releasing 4-year-old songs all the time.

    3. Not all who download music have CD writers, and they need to play on their CD players too, so they buy the CD.

    4. (Related to #3) Not all who download music have PC speakers that rival their stereos.

    5. There are still people who buy CDs for the packaging, and for the tangibility.

    6. Despite the existence of Spears, Dion and the like, There are still good music people feel guilty not to buy.

  71. No mention of increased exposure... by telbij · · Score: 1

    I would never argue that file sharing doesn't hurt sales, I'm sure that it does. On the other hand, I know from personal experience, that downloading music can inspire you to go out and buy an album. I'm not going to buy something if I'm not sure I want it, and quite frankly the traditional music industry model of radio over-play does a lot less to inspire me to buy a CD than downloading something fresh and relatively obscure.

    If the record companies have anything to fear it's the destruction of the mass-marketing business model. I'd like to see 10 times the number of artists on the radio so I don't just get sick of all of them.

  72. Hypocrisy by Anonymous Coward · · Score: 0
    I wonder how many people in this thread complaining about the RIAA and saying that copying copyrighted music is OK for whatever reason they choose to latch onto would also be the first ones to scream like wounded animals if some proprietary software company violated the GPL.

    You can't have it both ways. Either you believe in obeying the letter of the law and letting copyright protect the "good" as well as the "bad" guys, or you don't and you have no right to demand people respect the GPL.

  73. IP is a DILUTION of real property by Julian+Morrison · · Score: 1

    "All in all, these arguments supporting theft of music are smoke screens to justify boorish behavior by people that are irresponsible and do not want to respect other's property."

    I own my computer. Period, end of discussion and any chance of compromise.

    I can make it do what I damn well please. I can record patterns onto the hard disk that when read back via ext3 and xmms sound like music. My hard disk, my magnetized-iron-oxide, my cpu, my speakers, MY DAMN COMPUTER THROUGH AND THROUGH, therefore MY music output.

    Copyright and patents are an attempt to dilute genuine physical property by making pseudo property out of patterns. But the truth is that you cannot create property by legislative fiat. Physical property is a natural right and inherent in the fact that matter has identity - you can't have your cake and eat it too. Trying to cram patterns into the definition of property just fucks up property and results in snooping, external audits and such like denials of ownership rights.

    1. Re:IP is a DILUTION of real property by toupsie · · Score: 2
      Copyright and patents are an attempt to dilute genuine physical property by making pseudo property out of patterns. But the truth is that you cannot create property by legislative fiat. Physical property is a natural right and inherent in the fact that matter has identity - you can't have your cake and eat it too. Trying to cram patterns into the definition of property just fucks up property and results in snooping, external audits and such like denials of ownership rights.

      Then why would the founding fathers establish copyrights and patents from the onset of the founding of America? That would be not legislative fiat but constitutional establishment for the promotion of intellectual activity.

      Music is tangible not virtual though it can be represeted in a virtual state. It can be written on paper and generally is before being changed into "patterns" as you describe it. With your mindset, the GPL-ed software is nothing more than patterns on a hard drive representing "pseudo property" that anyone can manipulate without regard for the content of the license. Thus making the license null and void.

      --
      Strange women lying in ponds distributing swords is no basis for a system of government.
    2. Re:IP is a DILUTION of real property by Starcub · · Score: 1

      Somebody made your computer. They put time money and effort into it's creation. You put time and effort into your work; as a result, you earned the money to buy it. It's your money and you can do whatever you want with it. However, the music that serves as the source for the patterns on you hard drive does not belong to you. It was created through somebody else's time, effort, and money. The music isn't transformed into something different that you can call your own just because it goes from a CD to your hard drive.

      You can spend your money to buy the music according to the terms of the seller, or you can save it or spend it on something else. That's the way the system works. If you violate the system, how are the artists and content producers/distributors going to recover their costs? The net effect of your lawlessness is to incur penalties for those who abide by the system. These penalties will likely include higher retail prices and lower quality. For all of our sakes, please make the effort to step outside of yourself. Would you be taking the same position if you were trying to make your living in the music industry?

  74. Out of hearing range, out of mind. by 3seas · · Score: 1

    along the lines of out of sight, out of mind.

    file sharing simple increases the hearing range,
    not to mention the inherent sight/site range of
    artist and song names.

    Come to think of it, so does free web radio....
    thinking of the battle against this too. Though not
    so much on the sight range of seeing artist and title
    names.

    generally speaking it seems that consumers in general
    are being accused of being dishonest. And with such
    negative noise regarding the consumer, perhaps the slight
    decline (account to the reccession) wouldn't have existed
    if the music industry would get off it's calling consumers
    dishonest.

    Personally I have no interest in the proposed overhead and stress
    generating crap that only makes it confusing as to where or not
    I can actually hear what I paid money for.

    Music is used to help reduce stress, but if the music industry
    is going to counter this, then I can do without paying for it.

    1. Re:Out of hearing range, out of mind. by Anonymous Coward · · Score: 0

      Oh my god! 3Seas, Anyone ever give you this bit of advice... "Don't speak unless you can improve the silence?"

      Listening to your drivel day aftwe day is just so boring! Moderators, don't believe me? check out his other posts... booooring!

    2. Re:Out of hearing range, out of mind. by 3seas · · Score: 1

      Mindspring, years before earthlink obtained them, determined that there are those who don't like my presence anywhere on the internet and follow me around to give me a hard time by what amounts to in legal terms, Libel.

      Guess that is why you are Anon...

  75. Taxes are theft by Julian+Morrison · · Score: 1

    Yeah, taxes are indeed literally theft. There is no way you can split apart the definition except by pretending there are no natural rights and law defines rights, which is utter BS.

  76. Not as good a view as we might like to think by dpilot · · Score: 3, Insightful

    In support of the Pseudo-Libertarian label...

    This article gets a positive spin on Slashdot simply because he believes that file sharing isn't really hurting CD sales.

    But reading the article further, he merely looks at the numbers, with apparently no attempt to find out what's behind them. Aside from blaming the 5% drop on the recession, he doesn't really dig deeper, looking into the possiblity that maybe filesharing is acting as a try-before-buy, as is often advocated here.

    The real corker though, is that this guy comes down squarely, firmly, and uncompromisingly on the side of DRM. Fair use on text? You can always retype a paragraph. Music or video? you can always get fair use by paying some money. Can't privately produce digital content? Blame some other supposedly non-DRM law, without realizing the obvious - that these laws are all part of a Web of Paranoia on the part of the entertainment media industries.

    --
    The living have better things to do than to continue hating the dead.
    1. Re:Not as good a view as we might like to think by aaarrrgggh · · Score: 2, Insightful
      ...he doesn't really dig deeper

      Actually, he does say that the download market is significantly larger than the sales market, and unless a 15-20% drop were seen in sales (when the economy picks up), the evidence would not support his "sky is falling" accusations published by Cato.

      Implicitly, he states that people want to own the music, and that the downloading is peripheral to the purchasing. Nothing wrong here.

      As for DRM... from an economics standpoint, I imagine he is right: People will not pay as much for fewer rights, and from a purely theoretical standpoint, nothing is wrong. He does state in his conditions:

      DRM, as I see it, is merely the protection in the software, on a CD or whatever, that would allow micro-payments. It doesn't do this yet, but in principle it could. That's what I view as closer to ideal.

      And, he goes on to describe what he considers DRM to be:

      ...software that keeps you from making copies; that doesn't extend the length of copyright; and certainly doesn't get rid of fair use.


      As much as I hate the idea of paying for EVERYTHING, rather than just a lump sum unlimited usage fee, the evils of DRM are mostly in the implementations: there has to be a way for "independants" to create and duplicate content (and to be afforded the same protections that DRM offers the majors). Since the implementation is far beyond his area of expertise, give him a little room to squirm!

  77. Reasons Why? by Anonymous Coward · · Score: 0

    Why doesn't the huge amount of downloading affect sales? Here are some of my thoughts:

    1. I know plenty of people who have enormous dowloaded directories. These people have MP3s they haven't even listened to. They not only would not have bought the equivelent CDs, they don't buy CDs at all. They're not interested in _music_ they're interested in the _collection_. They don't buy CD's now, and they never did.

    2. Popular singles != Entire albums. It's easy to get a particular song off the internet. But if you like the song and the artist you'll start to want to check out the entire album. While you can get a whole album it's more of a pain in the ass.

    3. I went through a period of high music download, and now it's down to a trickle. I downloaded every cool single by a crappy band that I wasn't willing to buy a CD of. The "Oh Yeah" song in Ferris Bueler. "Low Rider" by War. That "Da da da" song from that VW commercial. The music that I download isn't of the same TYPE that I buy. One does not have effect on the other. Passing vs sustained interest.

    I'd be interested in y'all's opinions.

    -Adam

  78. I like the skimmed over micro payment part. by ahfoo · · Score: 2

    If someone can come along who is able to accept small micro-payments -- one of the credit-card type companies -- then it could be viable. Right now, that's probably the biggest impediment: There's a fixed cost for using a credit card that's bigger than what a lot of these payments would be.

    Yeah SOMEONE needs to come along. He suggests "a credit-card type" company. Well gee, it's the year 2002 right about now. I wonder how long we're going to wait for this fucking genius solution to come tripping by. WTF?


    Not to be pedantic, but here's section 8 of the US Constitution:


    Section 8. The Congress shall have power to . . . coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;

    It seriously pisses me off when asshole motherfuckers like this dumb Liebowitch bitch go throwing these off-the-cuff solutions about some mega corporation is going to come and save all our asses with a fair and reasonable micro payment system when he knows he's full of shit and that the US Government is responsible for the currency of the nation. What a cock sucker.
  79. Trolling is even more childish. by Nindalf · · Score: 2

    Copying information is not and cannot be stealing. It can be illegal, it can be copyright violation, but it is simply not theft and doesn't necessary mean a loss to the "victim." This ridiculous assertion, that there is no essential difference between making an unauthorized copy of music that could be bought for $10,000 and stealing a $10,000 car, has been repeated here many times, and every time people waste effort pointing out how it's obviously wrong.

    That is why you are being moderated down into oblivion. If you have no new arguments, what you're doing is the moral equivalent of stomping your feet and screaming at the people you disagree with.

    The moderation category "troll" at least gives you the credit of intentionally being obnoxious and trying to start an argument, rather than being so stupid you can't recognize the obvious illogic of your position.

    If you want to argue that copyright violation is wrong, go right ahead. However, don't expect any more respect for asserting that copyright violation is stealing than if you claimed it was vandalism, treason, murder, or rape.

  80. Studios and labels don't understand economics by michael_cain · · Score: 1

    Near the end of the piece, he says:

    The people selling these things want to make money, which means they want to give people whatever it is that they want to pay the most for.
    The studios and labels do not view their business this way, they want to dictate where and when a person can watch/listen, and to dictate the price as well. So they fight against various kinds of software technology, and try to make reverse engineering illegal, and ignore the fact that the real answer is in economics.

    Given two products (a crappy VCD version of a movie and a good DVD) with the same price, the consumer will almost always choose the higher quality one. The cost of the VCD is the time, effort, cost of blanks, cost of network access (not just the bandwidth itself, but what you might have done with that bandwidth if you weren't downloading the movie). The cost of the DVD is whatever your local store charges. If the studios would price their product properly, casual piracy would be reduced to a minor inconvenience.

  81. Another set of facts... by Ashurbanipal · · Score: 1

    You've based your outlook on your own experience. That's good, and very scientific. However, my experience is quite different.

    When the major labels went to CDs rather than vinyl, I noticed that their profits per album skyrocketed, yet they did not pass those profits to the artists (in the form of increased royalties) or to consumers (in the form of lower prices).

    Now, I'm a fan of capitalism (though I concede true laissez-faire capitalism leads to monopolies if not atrocities) so I like to vote with my pocketbook.

    So, I only buy CDs directly from the artists. I've got over 200 CDs I bought at concerts and music festivals; most are not on the major labels. I've got another few dozen from minor labels like Green Linnet, Barking Pumpkin, etc.

    But I don't download music without permission from the artist. Because I don't need to, and it seems like stealing to me. I don't kill or steal unless I absolutely have to (yes I would kill, cook and eat you if I was starving and had no other options, but that's unlikely, so don't wait up).

    So, I see no reason to stop mass file sharing. I suspect the only people who use it wouldn't buy records anyway (because they are either broke or thieves) or else they are simply sampling a product before buying it. Either way it's not harmful to anyone, so it's not worth regulating.

  82. Stealing is even more childish. by toupsie · · Score: 2
    Copying information is not and cannot be stealing. It can be illegal, it can be copyright violation, but it is simply not theft and doesn't necessary mean a loss to the "victim." This ridiculous assertion, that there is no essential difference between making an unauthorized copy of music that could be bought for $10,000 and stealing a $10,000 car, has been repeated here many times, and every time people waste effort pointing out how it's obviously wrong.

    Stealing is stealing and morally wrong. While there maybe degrees of harm, the act still grows from the same evil, taking from others what is not yours. You may require this sort of moral rationalization to make yourself feel better for your actions but you are still doing wrong. Its called respect for other human beings. What else can you rationalize?

    The moderation category "troll" at least gives you the credit of intentionally being obnoxious and trying to start an argument, rather than being so stupid you can't recognize the obvious illogic of your position. If you want to argue that copyright violation is wrong, go right ahead. However, don't expect any more respect for asserting that copyright violation is stealing than if you claimed it was vandalism, treason, murder, or rape.

    If saying "please don't steal" has become "intentionally being obnoxious" then our society has really started to crumble. The illogic of my position appears to be trying to tell a group of people that seem to feel they have the right to take from others what was not theirs is not a Good Thing. I never alluded to stealing other people's intellectual property to vandalism, treason, murder or rape. I am saying your appropriating someone else's property without just compensation is wrong and causes damage to consumers that engage in legal transactions with the property owners through higher prices and products that have copy protection schemes.

    As for me being stupid for this position, the US Court system tends to agree with me, not you. If you think I am wrong, please challenge the music labels in court and we will see whose point prevails.

    --
    Strange women lying in ponds distributing swords is no basis for a system of government.
  83. This hurts... by sckeener · · Score: 2

    it's going to be while -- maybe a decade -- before we get to reasonable pricing on downloaded music

    Ouch...I'm going to be 40 yrs old when sanity returns....

    --
    "Only one thing, is impossible for god: to find any sense in any copyright law on the planet." Mark Twain
  84. Liebowitz.... a shill ? by grubert · · Score: 1

    Check out Liebowitz's papers on lock-in. This kind of cheap debunking is what corporate shills are using to bolster their weak arguments. ( Junkscience.com being a prime example ) His web-site has testimonials that make me strongly suspicious that what we have here is some MS "astroturf."

    Much of Microsoft's "technical superiority" vis a vis other products like Lotus are due to withholding of API info from competitors and may even be due to intentional code alterations to screw up competitors products. Comparisons to the QWERTY keyboard or the Beta/VHS battle are specious and irrelevant.

    It's highly usual for a real academic to have so many product endorsements on their school website.

    A theory: for Micro$oft he made a big public argument that lock-in is a myth, and then did a bit of shilling for the RIAA that peer-to-peer hurts record sales, and then noticed the logical contradiction and is now backpedaling.

    Remember, even Phil Gramm got a PHD in economics, and he boasted about flunking the 4th grade.

  85. Anyone who wants to understand... by freeBill · · Score: 5, Informative

    ...why this guy is so confused should read Paul Ormerod's book, Butterfly Economics. The book (subtitled "A New General Theory of Social and Economic Behavior") outlines the mathematics which University of Chicago economists broke through the barrier which had prevented others from mathematizing economics.

    All they had to do was assume that all agents (that's you and me) in an economic system had an infinite ability to predict the future prices of goods (and they would all have to agree). Now, these economists didn't actually believe this was true, but they hoped further work with the math would allow them to make simpler, more believable assumptions.

    And further work did just that. Sort of.

    In 1968, it was proven that we could relax those assumptions so that different people could have different opinions about the future state of the world. The only assumption remaining which still flew in the face of common sense: All agents had to have access to an infinite amount of computing power. And it was proven that the math broke down if this requirement was relaxed.

    One might expect that this would mean the theory would be thrown out. But one would be wrong. Because orthodox economic theory requires that markets "clear" in this way.

    And from this orthodox economists have shown that the distribution of wealth and income which emerges from equilibrium markets cannot be altered without making someone else worse off. Which had implications for economic policy which greatly pleased those who were opposed to certain government tax policies and regulatory policies.

    And those people were rich. They funded organizations like The Hoover Institution, The Cato Institute, and Wendy Gramm's Let Enron Rip Off California Institute.

    Unfortunately for the theory, in 1982 David Newbery of Cambridge and Joseph Stiglitz of Princeton proved that in an uncertain world in which the future is allowed to exist, the conclusion that the distribution of income and wealth cannot be altered without harming someone is, in general, not true. Despite this finding, the old result continues to be taught to students the world over.
    --Paul Ormerod

    It is taught because before it was disproved it acquired a strong political following, which included politically motivated private individuals who were willing to fund research which produced the results they wanted produced. So organizations like the Cato Institute have to continue to act as if a theory which rests on absurd assumptions is true, even though we know it is not. If they do not continue to so act, they will stop getting money from wealthy conservatives. That is why the absurd theory was never thrown out.

    All of this would not make much difference except that an alternative set of theories have arisen, which take advantage of more recent developments in the mathematics of non-linear systems. They make no absurd assumptions, and (though incomplete) they do work. See Ormerod's book for more information.

    They new theories do not skew either to conservative or liberal biases. (Ormerod is even more critical of European attempts to micromanage their economies than he is of laissez-faire Reaganism.) One of the results of including non-linear systems into the mix has been the discovery of what is known as the "network effect." Although most of us have experienced the network effect personally, Stan Liebowitz has developed a little mini-career opposing it.

    It turns out there is money in this opposition. Microsoft is willing to pay good money for this obvious nonsense. And it fits right in with Cato's nervousness about a competing theory which does not rest on the absurd assumptions theirs requires.

    Which explains why Liebowitz has no clue as to why CD sales were up while Napster was booming and are down since it was shuttered. The Napster community was a classic network with people sharing their favorite music with others. Sure some used it to avoid purchasing CDs. But far more were able to hear music they might never have found otherwise. Liebowitz cannot afford to see this since it would cut off a lucrative source of income for him to admit the network effect has such power. But the rest of us are under no such limitation.

    When radio came along, record companies said the new technology was so different it would destroy the copyright economy they thrived on; 30 years later they were bribing DJs to play their records. Cassette tapes were similarly attacked. VCRs were supposed to be the end of the movie business; today they are an important part of their bottom line.

    Someday we'll probably see congressional investigations of record companies paying on-line music-sharing services to promote their products. And Stan Liebowitz will still be confused about why his absurd assumptions still don't predict real-world results.

    --
    Eternal vigilance only works if you look in every direction.
    1. Re:Anyone who wants to understand... by RegularFry · · Score: 1
      Someday we'll probably see congressional investigations of record companies paying on-line music-sharing services to promote their products.
      I'm guessing that's why they're running scared now. There's no single entity to bribe or blackmail in a true P2P network.
      --
      Reality is the ultimate Rorschach.
  86. The future of music by Erore · · Score: 1

    Music artists will work with freelance sound engineers and production people who have studio space and equipment, or who can rent such space. They will sell the content on the web, and in kiosks. Their cash outlay will be minimal, and they will be able to reach any size audience. These kiosks will burn CDs for the consumer, or the web based consumers will recieve files (and freesoftware) to burn the CD's themselves, or keep them in digital form.

    This change in music will occur for many reasons. Two of which are:

    1) Reduce costs, increase profits. With no brick and mortars, or large company overhead, sales people, marketing (you could freelance this too), costs are lower.

    2) Reach even the smallest audience. I might be a musician of really uncommon music. My world-wde audience might be 20,000. A record company/label woudln't sign me because my economies of scale don't scale. But, in the freelance system I might sell my content for 5.00 each. That is 100,000 per year if I produce each year. Take out the fees for the sound engineers time and whomever else helped me, I might make between 40-70k. Hardly starving artist.

  87. The music industry may need file-sharing by Animats · · Score: 3, Insightful
    Why? Because broadcast radio in the US is becoming so centralized. Clear Channel Radio daily reaches 54% of all people ages 18-49 in the U.S. They're bigger and more powerful than the recording industry. They demand payment to put a song on the radio. They may also insist that the artist do live performances in one of the hundreds of venues they control. On their terms.

    File sharing and Internet radio may start to look like an attractive promotional channel to the music industry, as Clear Channel slowly tightens the screws.

  88. complexity by Anonymous Coward · · Score: 0

    Because the economy is not a linear system.

    Downloaders might not be an important part of the profitable segments of the recording industry. They might really buy more CDs. They might buy CDs as status symbols, and MP3s aren't visible enough to make that happen. They might delete most of what they download.

    Personally I download a lot and I rip a lot, and I mainly listen to the ripped stuff because it gives me complete collections, quality rips, and sequenced playlists. In the end the downloaded stuff that gets listened to is mainly obscurities that I couldn't find otherwise.

  89. Thank God DRM still allows for Fair Use by Sloppy · · Score: 3, Insightful

    The idea has caused a fair amount of hysteria in the academic community, because they think fair use is going to disappear. I think that's totally not true. Fair use is still there. DRM can't keep you from reading the material, as long as you pay the price. Some say, Well, how can you take a paragraph and copy it anymore? That's what we normally consider to be fair use. But the fact is, you can still do that. You might not be able to cut and paste but as long as you can read it, you can type it.

    In this presentation, I will show how my new compression method's artifacts are more subtle than the ones made by the excellent Sorenson codec. [Type type type] This ASCII-art representation of a scene from The Matrix is the source that I have started with. Notice how the curly-brace I typed on the right side of the image, is very well-defined and clear.

    Now I will show how it looks when encoded/decoded with Sorensen. [type type type] In the ASCII-art representation on the left, look at the loss of detail. The original curly brace is replaced with a square bracket...

    --
    As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  90. CDs are the reason sales haven't slowed by lawscactus · · Score: 3, Interesting

    I believe the reason that we haven't seen a decrease in sales of audio CDs is because of convenience. I have many audio CDs purchased from retailers, many MP3 files downloaded from the internet, and a CD burner. I have copied only a small subset of my MP3 files onto CDs. Why is this?
    CD creation is a time consuming process that requires me to purchase consumables (blank CDs). Then I have to keep track of where my CDs are and what is on them. Also, a CD holds a relatively small amount of data(700MB). In short, I couldn't be bothered.
    I believe that you will see significant degradation in CD sales when hardware manufacturers standardize on a portable and inexpensive data storage media. This would allow consumers the ability to carry a "data storage widget" (compact flash perhaps..). It would store thousands of songs and plug into home audio systems or car stereos. It could store entire collections on something the size of a matchbook.
    The only thing supporting CD sales is the "network effect" of the CD format. Once we achieve an "inflection point" of the presence of standardized portable memory modules and devices that use them, I believe the bottom will fall out of the CD sales market. I also believe that the record companies have foreseen this.
    The CD market today survives on the "high viscosity" of data transfer from the internet to audio playback devices. New devices and technologies will lower that viscosity and change the media market forever.

  91. I like to do that by rocket97 · · Score: 0

    can you install Linux on it?

    --
    "The two most abundant elements in the universe are hydrogen and stupidity." -Harlan Ellison
  92. Would I have bought all those CDs? by SirAnodos · · Score: 2, Insightful

    People are scratching their heads trying to figure out why downloading doesn't hurt CD sales so much. I can't speak for most people, because I may be very different in this way, but I can speak for myself. The recording industry says that if I download, say, 10 CDs worth of music that they have lost 10 CDs worth of income (and these are the conservative ones). Now wait a minute... who said I would have ever bought those 10 CDs in the first place? I know myself, and before P2P, I just didn't listen to this much different music. Every couple of weeks, I would walk out, find a CD I liked, buy it and listen to it (along with my existing collection) for the next couple of weeks. I do the same thing now... every couple of weeks, I walk out, find a CD I like, buy it, and add it to my collection. So I downloaded 10 OTHER CDs during those two weeks. Well, I would never have bought those CDs anyway! I just happen to have a richer experience now, but my buying habits haven't changed at all. Again, I am only speaking for myself. I do know, however, that my 18 year old sister is the exact same way. She still buys CDs like crazy, and also downloads way more music than she ever would have bought.

  93. Not alone in my suspicions by grubert · · Score: 3, Insightful

    My suspicions were pretty surface, thanks for the detail.

    My college exposure to economics left me deeply unimpressed. They make major unwarrented assumptions about human behaviour. My professor waved away my objections by appealing to the law of large numbers.
    The theories might be worth something if humans were linear elements, but we are not. Economics seems to be useless for predictions, so it's not really science, but they appropriate the language of science to gain credibility.

    -which take advantage of more recent developments in the mathematics of non-linear systems.

    Given that economics seems to have a shallow grasp of linear system dynamics, how much of this new book's useage of non-linear systems is really tough scientific thinking, and how much is appropriation of new buzz to get attention?

  94. Like Radio .. but not by shawnmelliott · · Score: 2

    Although I agree with your points ( being a person who buys things based off of samples, mp3 or radio ) I must point out one thing

    "File sharing doesn't hurt record labels any more than radio play"

    with Radio you have to WAIT for that song to come on and hope it doesn't have a DJ interrupt for some lame joke or small tidbit of info. File sharing is immediate upon request.

    Not that File sharing doesn't have it's problems either e.g. incomplete/misnamed songs etc but it's still easier to get the music via File sharing and thus (IF it hurt record labels ) would have the capacity to be more damaging than Radio.

  95. Can you really be that naive? by AKAJack · · Score: 2

    Seriously.

    How is listening to a radio station all day, waiting for that "new hit single" to be played (so that you can record it) anything like going on gnutella and downloading that same song in two minutes?

    Instant access to everything you specifically want does not equal instant access to a random assortment of songs broadcast over the airwaves.

  96. What we want to be vs what is by totierne · · Score: 1

    RANT ON

    If questioned we will give the answer that gives us most benefit that is: We will buy more music if we have free access, we may even have a few self selecting anecdotal 'proofs' and rationalisations.
    It is a game between the users, creators, distributers and marketing departments, everybody wants to shove the equilibrium 'their' way.

    RANT OFF

    What does it all mean? Maybe we should all switch off, tune out and, well, enjoy good two way, even if drug obscured, conversation.

  97. No Network Effect? Handwaving? by namespan · · Score: 3, Insightful

    OK, our friend Leibowitits presents a reasonably convincing argument about file sharing.... file sharing is huge, and we don't see any appreciable change in sales, so something else must be going on. I buy that.

    I have to question his credibility just a little bit. No network effect? The term "path dependence" is fairly well distributed through the economic literature, and I can't recall the name, but I once tried to work through a paper on it from someone at the Santa Fe Institute... not exactly a bunch of intellectual lightweights (at the very least as credible as anyone from the Cato Institute). The paper supported the network effect.

    The Salon article almost presents Leibowitz as having debunked the concept rather than challenged it. Lots of handwaving if you ask me.

    But then again, that's been my experience with econ in general. : )

    --
    Libertarianism is rich wolves and poor sheep playing gambler's ruin for dinner.
  98. huh. by NickRob · · Score: 1

    Look what happens when the RIAA's "funding" of his research dries up. The results change.

    Unfortunately, this will not have the same effect as his first paper.

  99. Liebowitz? by Anonymous Coward · · Score: 0

    Hey man,

    Isn't Liebowitz the guy that always dies after beaming to the planet surface?

    Don't you all remember? Kirk, Bones, Spock, Mr. Sulu and some guy (with no spoken lines in the episode) named Liebowitz all beam down to the planet surface. Guess who's not coming back?

  100. The problem with theories on the impact ... by Vincman · · Score: 1

    ...of new technologies is that they are still evolving and data gathered 6 months ago, or whenever, is not valid today. For example Liebowitz said that it takes ages to download a movie. With a broadband-connection, you can download several movies in one night. You can get the new Spiderman VCD from China, 2 months before it comes out in the cinema in the Netherlands! As a consequence people may decide that they do not like the movie enough to see it again in the cinema or watch it on a better quality DVD. The point is that the theories about the impact of the internet on brick & mortar businesses, can not be quantified!

  101. Yes, even the GPL violates physical property by Julian+Morrison · · Score: 1

    Then why would the founding fathers establish copyrights and patents from the onset of the founding of America? That would be not legislative fiat but constitutional establishment for the promotion of intellectual activity.

    That IS legislative fiat. they pulled it out of their asses, it doesn't matter what variety of law, constitution, edict, encyclical, or verdict it's written on, it is still an invented pseudo right that muddies the principle of honest rights.

    Music is tangible not virtual though it can be represeted in a virtual state.

    Music is a pattern, in fact a collection of similar patterns, with the "sameness" at the level of interpretation and cognition. You don't think that every time an artist plays the same song, it's precisely the same sound wave?

    It can be written on paper and generally is before being changed into "patterns" as you describe it. With your mindset, the GPL-ed software is nothing more than patterns on a hard drive representing "pseudo property" that anyone can manipulate without regard for the content of the license. Thus making the license null and void.

    Yup. Principle is principle - the GPL is as much a violation of physical private property as any other copyright license. However working within the broken and destructive system, it's a comparatively less broken outcome.

  102. the assumption is... by sweatyboatman · · Score: 2

    I'm assuming that DRM wont really work in this context without some seriously heavy-handed legislation. If any publisher pushes a DRM solution onto the public while still competing with MP3's then the situation is very different.

    It doesn't seem likely that any DRM will beat out MP3 in a fair fight. MP3 is open(-ish) and free for use. It's also well established with many different platforms supporting it. Any DRM solution, especially one with fees, will come with rules, hassles and problems.

    And it still wont solve the problem of Red-book CDs which people can still burn and rip to their hearts content. So even if every publisher that ever produces a digital version of the song uses a DRM, their songs will still be just as available as ever thanks to the prevalence of regular CD-Rom players.

    Sweat

    --
    It breaks my pluginses, my precious!
  103. In other articles by iramkumar · · Score: 1

    Stan on Microsoft
    http://www.independent.org/tii/news/lie bowitz_pric es.html
    Abstract : In 5 software categories where Microsoft did not have a product, prices fell by an average of 15 percent over the eight year period, with several periods of price increases. In the 10 categories where Microsoft had a product, prices fell by 65 percent.

    Stan on Bill
    http://www.independent.org/tii/news/liebowit z_wsj1 . tml
    Abstract : Instead, Microsoft achieved its success the old-fashioned way--with better products.

    Stan on Law
    http://www.actonline.org/getIT/Balkanization% 20stu d.asp
    Abstract : If the nine litigating states get their wish, independent software vendors and consumers will be stuck with 80 Billion dollars in new costs over the next three years.

    My Conclusion:

    Stan had a change of heart ?

  104. here is an analogy by kz45 · · Score: 1

    Downloading music hurts sales as much as overseas (cheap) programmers hurt american programmer jobs.

    1. Re:here is an analogy by Anonymous Coward · · Score: 0

      Ow! Ow! Ow! Would you please stop making those idiotic comments? You give me a headache.

      There's a finite supply of programming jobs. Every American programming job transferred to India reduces by one the number of programming jobs available in the US. Downloading music does not reduce the supply of music available, as much as idiots like you and the RIAA want to pretend it does. Please stop spouting your lying bullshit around here, OK?

      In short, your analogy is crap. The two have nothing whatsoever to do with each other, and anyone with the slightest claim to human-level intelligence should be able to see that.

    2. Re:here is an analogy by kz45 · · Score: 1

      There's a finite supply of programming jobs

      and there is also a finite number of customers. If everyone got their music for free, the company releasing the music would never make money.

      Downloading music does not reduce the supply of music available, as much as idiots like you and the RIAA want to pretend it does

      I think I just hit a sore spot with you, personally. The truth cannot be bent every which way to suit your needs.

  105. Interestingly enough, Cato's grant-whoring... by freeBill · · Score: 2

    ...actually played a role in the initial funding of the Santa Fe Institute.

    In the early '80s, Cato and Hoover and the University of Chicago told the Reagan administration (where they were very welcome) that foreign aid was unnecessary because all the poor countries of the Third World had to do was adopt market economics and their economies would automagically right themselves and be tremendously productive. They even convinced the big banks to loan money based on this prediction. After all, they'd have plenty of money to pay back the banks.

    Ten years later the money was gone, Bangla Desh was just as poor with a market economy as they had been without, and the banking system was threatened by the defaults these Cato prognostications had said couldn't happen. The banks went back to the Cato economists to ask what happened. All they got were shrugs and excuses (not unlike this article).

    About this time the Santa Fe Institute was trying to raise funds for their new idea for an interdisciplinary institute. Many of their people were refugees from Economics programs at schools controlled by the same people who made the bad predictions. They had objected to the bad assumptions behind the predictions and found their careers stymied. Opted for the interdisciplinary approach at Santa Fe, where the ideologues in their own disciplines had less sway.

    They walked in the door at Chase Manhattan just about the time Cato was telling them they had to just eat those billions in losses. Chase asked them if they had any research which could help. They said they weren't sure about help, but their economists had predicted the failure in Bangla Desh (where one had been a Peace Corps volunteer).

    Walked out with a $100 million check.

    Read Complexity: The Emerging Science at the Edge of Order and Chaos for a more accurate explanation of the events (condensed for this post).

    --
    Eternal vigilance only works if you look in every direction.
  106. Pissed at the music industry is right on. by brad.hill · · Score: 2
    Pissed at the music industry is right on.

    I used to buy 10-20 cd's a year. At the height of Napster, I was buying more like 30-40 because I could discover so much more great music that I liked, and was apolitical with regard to music purchases.

    Since Napster was shut down, I've come to see what a bunch of greedy f**kheads the RIAA are, and how, collaborating with the monolithic radio industry, they don't want me to hear and discover diverse music. They just want me to shut up and shell out for whomever they've decided is the next star.


    Now, instead of feeling excited about all the great music out there, I just feel disgusted, ripped off and insulted when I see the price tag on a CD.

    As a result, I've only purchased 2 CDs in the last year, both from independent labels-- a 90% drop from my normal buying habits over the last decade.

  107. Re:As if you needed to ask... by plastik55 · · Score: 2
    Apparently you think economics began and ended with Adam Smith.

    In fact, the past 100 years of theoretical, experimental, and applied economics shows that there are many situations in which regulation is necessary in order to preserve market efficiency.

    Being ignorant of a subject does not entitle you to go spouting off pseudo-libertarian aphorisms. Please go to your nearest university library and look up "market failures."

    That is all.

    --

    I have a positive modifier on Troll. When I mod someone Troll their karma should go UP!

  108. Whoa..... hold up.... by Danse · · Score: 2

    If revenues fall to the point where it's ecomically infeasible for a particular record company to keep scouting for new artists, or it's too risky to sign them, then it will be much harder for artists to get discovered and eventually the supply will decrease.

    There's another alternative here. What if, instead of the monolithic recording industry that we had a much leaner, more efficient recording industry? If they can't continue to do things the way they do today (which is very much to the detriment of both artists and consumers by most accounts), then maybe they will just have to adapt and do things differently. If they don't do it, then someone else most likely will.

    --
    It's not enough to bash in heads, you've got to bash in minds. - Captain Hammer
  109. In the USA, DRM != perpetual copyright by yerricde · · Score: 2

    Besides, legislators may require that DRM opens the work at the expiry of copyright.

    They already have. In the United States, the DMCA's circumvention ban (17 USC 1201) applies only to "a work protected under this title". A work that has fallen out of copyright is no longer "a work protected under this title". Therefore, now that Mickey Mouse is public domain due to faulty copyright notice, and some 1900s and 1910s silent films (PD due to copyright term expiration) have hit DVD, DeCSS software is now legal when marketed to be used only with such titles.

    --
    Will I retire or break 10K?
  110. What planet do you live on? by Danse · · Score: 1

    How is listening to a radio station all day, waiting for that "new hit single" to be played

    Here on earth, you never have to wait more than about 20 minutes for that new hit single to be played.

    --
    It's not enough to bash in heads, you've got to bash in minds. - Captain Hammer
    1. Re:What planet do you live on? by nfk · · Score: 1

      For that new hit single to be played? The one you want to hear? 20 minutes surely isn't enough for that and even less for any song you might want to hear at any given time.

    2. Re:What planet do you live on? by Danse · · Score: 2

      There are only so many hit singles at any given time in any given genre. 20 minutes might be a bit of an exaggeration, but not a very big one. Literally, the big new hits get played about once an hour. As for any song you might want to hear, then no, you wouldn't want to try to record it off the radio.

      --
      It's not enough to bash in heads, you've got to bash in minds. - Captain Hammer
    3. Re:What planet do you live on? by nfk · · Score: 1

      Fair enough, but my point (and I'm sure the point of the person you replied to) was just that listening to the radio is nowhere near downloading mp3s as a method to get the music you want.

  111. You are right, Bill Gates has little power... by freeBill · · Score: 3, Insightful

    ...over me. Because I choose not to buy his products, I have a competitive advantage over those who do.

    But that doesn't tell the whole story. There are many threats that individuals (especially wealthy individuals) and corporations (especially powerful corporations) pose which do threaten my freedoms. Perhaps it is easier for government with its coercive powers, but it is quite common with corporations as well. Those who ignore this by insisting that all threats to liberty come from government do no service to liberty.

    If the threat to my liberty is my daughter's asthma, it doesn't matter to me whether she dies because some factory nearby is pumping toxins into the air or because the government forced me to accept socialized medicine which was inferior.

    If the threat to my liberty is my inability to market my next-big-thing computer program, it doesn't matter whether it is because the government taxes new businesses too highly or because investors think the idea is so good MS will steal it from me.

    If the threat to my liberty is an economic collapse caused by insufficient resources, it doesn't matter to me whether those resources are lacking because of a command economy like Communism or because some corporation has figured out a way to overcharge all the rest for a second-rate product. It doesn't matter whether it's because the government taxed us too much or because the government borrowed too much. If the money is removed from the economy, it doesn't matter if it goes to the Microsoft tax, to the income tax or to buy Treasury bonds. (Actually it does matter somewhat, since these are coming from different parts of the economy. But any of them can harm the economy by starving it of resources.)

    Yes, the corporations and the wealthy do exert power through the government as well, but that is not the primary way they threaten my liberty.

    Eternal vigilance only works if you look in every direction.

    --
    Eternal vigilance only works if you look in every direction.
    1. Re:You are right, Bill Gates has little power... by tharanger · · Score: 1

      "If the threat to my liberty is my daughter's asthma, it doesn't matter to me whether she dies because some factory nearby is pumping toxins into the air or because the government forced me to accept socialized medicine which was inferior."

      The key erroroneus statement is the notion about the "factory nearby". If you have a child with asthma, and there is a factory that introduces toxins that aggravate that condition, you have the power to move away. You CHOSE to live there, you knew the risks. (this is assuming the factory existed prior to your arrival).

      If the factory did not exist prior to arrival, personal property laws (which are guaranteed by the Constitution) when exercised by a community would do much to prevent the buidling of the factory, or in the least, create a "buy-out" situation to cover relocating.

      It is often the sloth of the masses that allows the government and business to encroach on liberties. This, of course, is the fault of the individual, not the coporations or government. You lose the right to complain if you do nothing to protect your property or your own rights.

      In regards to what I have to assume is an "eron" statement, minus the media buzzword: the overcharge by a corporation, if controlled by consumerism (and free market) are often self-correcting. As in the case of Enron, even with previous bad government policy (see: botched deregulation 101 by prof. Gray Davis) the eventual NON involvement of government allowed for the poor business practice to lead the company into extinction.

      The strongest proof to the benefit of a free-market is the rise/fall of the "new economy". Bad ideas with shaky business models have been purged (by and large). Business' with solid models based on REAL economics, and unchecked by massive amounts of (socialist)government regulation are able to thrive.

      (for the record - I still hold to my conspiracy theory that the Fed burst the "internet bubble" prematurely on purpose.)

      Again, leave the power of choice (the dollar is mightier than the vote, ask a lobbyist)to the consumer and leave the government to it's Constitutional duties.

      Regulation need not be by elected officials, it requires only an education on the part of the people. (meaning, you have to get out of the college town coffee house and stop asking the government to do what you won't)...

      funny how the more socialist rants I come across the more I laugh.....why is it assumed that a government can be created that will only regulate that which they think is "kewl" ??

  112. CD prices remain constant in the face of inflation by yerricde · · Score: 2

    The CD was supposed to make the whole process cheaper, lowering prices for the consumer. But that never happened. Instead, the prices went up (which they justified by saying that new technology costs money) and they stayed up.

    It costs money to produce and promote music, and the dollar cost of "people time" has gone up, not down, in the last two decades. This is called "inflation".

    On the other hand, the price of a CD has remained constant in the face of inflation. if you measure costs not in dollars but in multiples of the Consumer Price Index, in (say) 1983 U.S. dollars, you find that the price of a CD has fallen from $17 in 1983 to $9 in 2002. If a CD costs the same number of dollars as before, but CD buyers earn more dollars per week than before, then each CD represents a smaller portion of the average weekly paycheck.

    --
    Will I retire or break 10K?
  113. Paying for police is not theft by yerricde · · Score: 1

    There is no way you can split apart the definition except by pretending there are no natural rights and law defines rights, which is utter BS.

    There is no natural right to police protection of your person or of your property either. Taxes pay for that.

    --
    Will I retire or break 10K?
  114. Let's see.... by Wntrmute · · Score: 2

    A 5% drop in music sales.... Hmm, well, we've had a recession at the end of a huge economic boom, large companies that used to employ a ton of people go bankrupt and get caught comitting fraud, (Enron, Global Crossing) terrorist attacks on US soil, CD prices have increased, (little economic tip, when you increase prices, sales will decrease) mass consolidation in the radio market and a general homogenization of music, leading to less consumer choice, and, yes, people are pirating music on file-sharing services.

    And there's *only* been a 5% drop in sales? Sounds like RIAA's doing pretty well to me. There's quite a few businesses that would be jumping for joy if they only suffered a 5% sales drop.

  115. It's all about quality by Cyric · · Score: 1

    If I were into music and had a system worth more than, say, $500, would I really download horrible-quality music, burn it to CD, and play it? If I were playing the music on my alarm clock ($40) or some 1980's junker I bought from a yard sale - maybe.

    If I were into playing really low-quality music, I'd use a cheap microphone, a radio, and my computer to copy what I wanted (which brings up a really funny point about CDs that don't play on computers).

    --
    Winners tell stories while losers yell deal.
    1. Re:It's all about quality by Anonymous Coward · · Score: 0

      Uhm, buddy I got news for ya, if you learn how to use patch cords correctly you can get amazing sounds out of MP3s even on a cheap sound card as long as you use two or three good high powered amps and some nice speakers. If you're using the speakers that came with your PC, then you have a point, otherwise, you're a retard who doesn't know how to wire audio or an elitest audiophile wrapped in self delusion.

  116. Stan Liebowitz is bought and paid for by MS by Brett+Glass · · Score: 1
    Stan's "astonishing" new revelations, just like his other writings, are bought and paid for by Microsoft. Liebowitz, in his position at UT Austin, was responsible for setting up business school courses whose curricula taught students only how to use Microsoft tools and no others. I pointed out, in an online forum, that his prototype course Web site -- which was offered to other schools -- left out vital information about non-Microsoft options and about industry standards, he blocked access to it from my IP address. (Fortunately, this move was laughably ineffective because I had multiple Internet accounts.)

    Liebowitz continued, after that, to produce supposedly "scholarly" papers that just happened to echo the Microsoft party line -- whatever that happened to be at the moment.

    Now comes Liebowitz' paper on file sharing, once again "inspired" purely by Microsoft's interests. Microsoft doesn't want users to stop buying its software, or to be forced by legislation to design its software in a particular way. And, in the long term, it wants any DRM solution that is used to be its own technology and no other. How convenient, then, that Liebowitz' paper argues against the pending Hollings legislation, which would force Microsoft to dance to the record companies' tune.

    In short, don't mistake Liebowitz for an advocate of file sharing or of Libertarianism. Stan Liebowitz is, and has been for many years, solely an advocate of whatever Microsoft pays him or his organization to promote.

  117. Smartass by yatest5 · · Score: 1

    Ever heard of a metaphor?

    If you copy someones work in school, you're STEALING their work aren't you?

    But if it makes you feel all clever to nitpick, go right ahead... :)

    --
    • Mod parent up! [a] by Anonymous Coward (Score:5) Thurs, June 31, @13:37
    1. Re:Smartass by Zack · · Score: 1

      There is a very distinct difference between "copyright infringement" and "theft". And it's important to make that distinction.

      If you copy someones work in school, you're STEALING their work aren't you?

      I'm a smart ass. We always called that "cheating". They still had their work too. :-P

  118. So buy your own by Julian+Morrison · · Score: 1

    There is no natural right to police protection of your person or of your property either. Taxes pay for that.

    Truth. Taxes shouldn't, though.

    In a free society, I'd protect myself, with my own gun, and I'd protect my neighbors and they'd protect me, because that's the neighborly thing to do. Enlightened mutual self interest. And if I wanted police, I'd hire some. We already have those, they're called "security guards", "bouncers", "private detectives", "bounty hunters", "mercs".

    "services" paid for by stealing are morally wrong and "but the majority want it" is no excuse for stealing from anyone - eg: me - who doesn't.

    1. Re:So buy your own by nfk · · Score: 1

      If you don't agree with the laws you can try to change them. If you fail you're free to leave, good luck finding a country with no taxes.

      What you advocate is an extreme form of capitalism, which can be defended of course, but was never embraced by enough people for it to happen. That is good in my opinion, it could easily lead to anarchy and misery.

  119. DRM and independents by dpilot · · Score: 1

    But when he mentioned DRM and the guy who couldn't put his own digital audio onto a digital tape, he claimed it wasn't DRM, rather some other law. But taken as a whole, DRM, the other law, and so forth are all part of the RIAA/MPAA attempt to legally channel technology to protect their business model.

    He goes on to say that certain functions like home digital recording will be lost, and other exercises of fair use will either become very inconvenient or expensive. But apparently InHisOpinion this is a fair price to pay to protect RIAA/MPAA business models. (The latter part is my paraphrase.) IMHO, it isn't, because it prevents new business models from emerging. It uses copyright law to grant RIAA/MPAA monopoly on artists works, and the spectrum of DRM and related laws to grant them a monopoly on recording technology suitable for widescale quality and distribution. No competition will be able to emerge.

    That's the real loss.

    --
    The living have better things to do than to continue hating the dead.
  120. Anarcho-Capitalism by Max+the+Merciless · · Score: 1

    The Psuedo-Libertarianism described is better labelled as "Anarcho-Capitalism". They wish to keep the institution of private property while dispensing with the state. Of course this is a wildly unstable proposition as the State is needed to protect the private ownership of property (unless you consider the corporate armies of dystopian sci fi realistic).

    True Libertarianism or Anarchism dispenses with both Private Property and the State.

    In the words of Mikhail Bakunin:

    "... freedom without Socialism is privilege and injustice... Socialism without freedom is slavery and brutality"

    Thus both Capitalist and Communist/Fascist systems fail in the eyes of a true Libertarians.

    More realistic Libertarians/Anarchists such as Chomsky prefer the thesis that that hierarchical authority must be justified and that when institutions of authority cammpt nejustified, they should be dismantled.

    This is not a blanket rejection of all institutions and authority, but certainly demands more than George W's bullshit: "you are either with us or against us!"

    --
    * * Always question "the National Interest" - 9 times out of 10 it is a cover for evil
  121. From the Copyright Law in the US by nfk · · Score: 1

    Ownership of a copyright, or of any of the exclusive rights under a copyright, is distinct from ownership of any material object in which the work is embodied. Transfer of ownership of any material object, including the copy or phonorecord in which the work is first fixed, does not of itself convey any rights in the copyrighted work embodied in the object; nor, in the absence of an agreement, does transfer of ownership of a copyright or of any exclusive rights under a copyright convey property rights in any material object.

  122. All economics... by pompomtom · · Score: 1

    ...is based on bullshit assumptions, and has been since Smith.

    --

    Buckets,

    pompomtom

    "There's an exception to every rule. Except for some rules"
  123. Copyright violation by HKTiger · · Score: 1
    Okay, here's a parallel, real-world example. A few (maybe billions, who knows, my memory sucks) years ago a kindergarten in Queensland (state of Australia) was *successfully* sued by Disney because they'd painted pictures of Disney characters on the walls. The charge was copyright violation: they said that the parents and teachers had no right to reproduce the copyrighted Disney rodentia and friends.

    Please tell me how that group of people *stole* anything from Disney. Don't offer me the simplistic "Copyright violation IS theft!!!" bollocks, tell me how they stole from Disney, given that they did what they did precisely because the school had bugger-all funding and had to get the parents etc to do the work (as I recall), so the argument that they would otherwise have bought the (C) pictures won't hold. So in order to prove theft, you've got to argue that Disney somehow lost money as a result: maybe Disney stock dropped in value? Maybe the reputation of the famous rat was tarnished by being used in such a tawdry way?

    Or maybe copyright violation is *just* copyright violation. It ain't always legal, but it ain't theft either.

  124. Thank you for so brilliantly demonstrating... by freeBill · · Score: 2

    ...the foolishness of pseudo-Libertarianism.

    You quoted me:

    "If the threat to my liberty is my daughter's asthma, it doesn't matter to me whether she dies because some factory nearby is pumping toxins into the air or because the government forced me to accept socialized medicine which was inferior."

    Replying:

    "The key erroroneus statement is the notion about the 'factory nearby.' If you have a child with asthma, and there is a factory that introduces toxins that aggravate that condition, you have the power to move away. You CHOSE to live there, you knew the risks. (this is assuming the factory existed prior to your arrival). If the factory did not exist prior to arrival, personal property laws (which are guaranteed by the Constitution) when exercised by a community would do much to prevent the buidling of the factory, or in the least, create a 'buy-out' situation to cover relocating."

    Your stated assumption is not the only one your argument depends upon. You are also assuming the company didn't hide the toxic releases. You are assuming there are other places where there are no such health risks. And there probably were people who were there before the factory existed.

    But even these assumptions (ridiculous though they are in the real world) do not change the fact that my liberties are being restricted. I do not have the right to live where I please. Property rights are an important value for all true Libertarians. Pseudo-Libertarians construct absurd arguments to justify their taking if the taker is not a government.

    When you start talking about "personal property laws" and the Constitution, you only demonstrate your ignorance. The laws which allow for communities to restrict the location of factories are hardly guaranteed by the Constitution. The first such laws were passed in the 1930s. They are governmental restrictions on our liberties which are opposed by most pseudo-Libertarians and many Libertarians. On top of that, they do nothing if the plant is upwind.

    Then you go on to say:

    "It is often the sloth of the masses that allows the government and business to encroach on liberties. This, of course, is the fault of the individual, not the coporations or government. You lose the right to complain if you do nothing to protect your property or your own rights."

    Yes, sloth of the masses results in many injustices against them. This, of course, does not absolve governments and businesses from their responsibility for their immoral acts, except in the biased eyes of pseudo-Libertarians. I do not "do nothing" to protect my property. It is the pseudo-Libertarians who urge the masses to sloth, particularly when regulation is the obvious path to protection.

    Obvious paths not being your forte, you offered:

    "In regards to what I have to assume is an 'eron' statement, minus the media buzzword: the overcharge by a corporation, if controlled by consumerism (and free market) are often self-correcting. As in the case of Enron, even with previous bad government policy (see: botched deregulation 101 by prof. Gray Davis) the eventual NON involvement of government allowed for the poor business practice to lead the company into extinction."

    I made no reference to Enron (or "eron" for that matter). I was refering the taxes charged by Microsoft, including the upgrade tax and the tax they force on manufacturers who are forced to pay for lousy operating systems on every machine they sell, even if they want to put a better OS on a particular machine.

    Of course, your analysis of the Enron debacle is as flawed as the rest of your reasoning. Gray Davis had little to do with deregulation. And deregulation had little to do with the California energy crisis (except that it was the panacea advocated by the pseudo-Libertarians at Enron who took advantage of it to infringe the liberties of Californians). To suggest that the results of the Enron affair prove the success of the free market is further evidence of your ability to look at things with an unbiased view.

    As far as your claim that consumerism and free markets are "self-correcting," I am glad you included the word "often." Yes, they often are. Usually when they are regulated. Some of that regulation can be private (as in the rules of the NYSE) and some of it usually comes from government (usually over the objections of pseudo-Libertarians). In 1982 Joseph Stiglitz used the assumptions of the free-market theorists to prove that markets are NOT self-correcting without regulation. He won the Nobel Prize in Economics last year for this research. You might want to check it out.

    Then you told us:

    "The strongest proof to the benefit of a free-market is the rise/fall of the 'new economy.' Bad ideas with shaky business models have been purged (by and large). Business' with solid models based on REAL economics, and unchecked by massive amounts of (socialist)government regulation are able to thrive."

    Unless, of course, some megacorp decided they were a threat and checked them by incorporating their ideas into their OS. Or stealing their code.

    I never said free markets weren't useful. But to assume they preclude all need for government regulation has been proven wrong again and again. In fact, we have considerable evidence well-regulated markets are best solution. But pseudo-Libertarians (like communists) have ideological needs which require them to ignore the evidence.

    Then you treat us to the following gem:

    "(for the record - I still hold to my conspiracy theory that the Fed burst the 'internet bubble' prematurely on purpose.)"

    Nice that you share this little hint about your schizophrenia with us, but I suggest it might be more important that you tell your therapist.

    Then you return to your strange constitutional theories:

    "Again, leave the power of choice (the dollar is mightier than the vote, ask a lobbyist)to the consumer and leave the government to it's Constitutional duties."

    Our Constitution was written by a strange alliance between conservatives who believed in the importance of government and liberals who feared government. They did such a good job they enabled us to become a nation of liberals who believe in government and conservatives who fear governmental power. And pseudo-Libertarians whose grip on reality has become so weak they believe their fantasies are what the Constitution says.

    Then you close with some good, old-fashioned stereotyping:

    "Regulation need not be by elected officials, it requires only an education on the part of the people. (meaning, you have to get out of the college town coffee house and stop asking the government to do what you won't)...funny how the more socialist rants I come across the more I laugh.....why is it assumed that a government can be created that will only regulate that which they think is 'kewl' ??"

    First, the stereotypes: "college town" and "coffee house" and "socialist rants." I do not live in a college town. I don't much like coffee, and seldom visit coffee houses. I am not a socialist, as would have been apparent to anyone who saw that I used "socialized medicine" (perhaps unfairly) as one of the threats to my daughter's health.

    Secondly, the substantive points: regulation need not be government; education is all that's needed; and the assumption that a government can be created which will only do what I agree with.

    Yes, regulation is possible outside of government. Of course, this involves risks to our liberties much like those posed by governments, often with less chance of respresentation. In fact, the stronger the regulation, the more the regulator becomes like a government. (Indeed, the distinction may become meaningless.)

    Yes, education is good. But it cannot do everything we need to protect our liberties.

    I don't assume that governments will only regulate that which I think is "kewl." But that doesn't stop me from trying to get it to stop regulating that which is not "kewl" or from trying to get it to regulate that which I think needs to be regulated. As it will always be a compromise with others, I expect it will always be less than what I want it to be (or more).

    But I know that those who assume they have a blanket answer all questions of regulation will be wrong about half the time, whether they are socialists or pseudo-Libertarians. The socialists will assume that all threats to our liberties come from individuals and corporations. The pseudo-Libertarians will assume that all threats come from government. Each will find the real threats to THEIR liberties comes from the direction they are ignoring.

    --
    Eternal vigilance only works if you look in every direction.
  125. the socialist approach by oliverthered · · Score: 1

    the socialist approach was to have the Government regulate the market (in favour of soviety, not the corporation), e.g Anti-Trust, monopaly breaking (RIAA)

    The capatilist approach is to regulate the market in favour of the corporation over society, eg Current laws/thinking about IP, advertising, radio band licensing.

    --
    thank God the internet isn't a human right.
  126. "Libertarian": the history of a word... by freeBill · · Score: 2

    Yes, there are many who use the term this way. But I think a review the historical record would show that it originally included all threats to liberty. I have certainly heard older Libertarians complain that the movement has moved away from the original meaning, which included big business as well as big government as threats to liberty.

    So, I leave it to others to decide which is the perversion of the meaning. I certainly do not dispute the dictionary.com definition because maximizing individual rights has to include fighting all threats to individual liberties.

    There may be Libertarians who believe that individual rights can only be violated through the use of force, but they are clearly wrong. Corporations and other people do impact others in ways that infringe on their liberties (especially property rights, which are dear to all true Libertarians).

    When you conclude with "If they were a threat in the sense that I just mentioned, a libertarian would view it as proper for the government to stop them," you make precisely the distinction I made between true Libertarians and pseudo-Libertarians. True Libertarians would view it as proper for the government to stop them; pseudo-Libertarians assume that threats to personal liberty can only come from governments (or that they can only be violated through the use of force).

    --
    Eternal vigilance only works if you look in every direction.