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Cringely Proposes a Music Sharing Alternative

WEFUNK writes "The I, Cringely 'Pulpit' column at PBS presents an interesting idea for a new business model to take on the RIAA. He suggests that a publicly traded company could legally and profitably buy a single copy of each record which could then be freely copied and listened to by its shareholders under fair use. His 'Snapster' (Son of Napster) proposal is essentially a digital music co-op that would let shareholders/consumers bring copyrighted material into a quasi-public domain. While fair use and the public domain continue to be lost in our courts and congresses, maybe the capital markets will offer an alternative." While a neat idea, it's doubtful that it'll ever be implemented. Still, it's a good read.

730 comments

  1. Wow this usage seems very fair by Yeah-or-something · · Score: 2, Insightful

    There is no such thing as fair use. Just ask the RIAA.

    1. Re:Wow this usage seems very fair by kaamos · · Score: 1

      you are allowed fair use of copyrights ... that you do not own ... so that can't be theft, right?
      The only thing you are allowed to freely use if your wallet ;-)

      --
      In Canada, we don't fancy things like socks
    2. Re:Wow this usage seems very fair by whiteranger99x · · Score: 4, Funny

      There is no such thing as fair use. Just ask the RIAA.

      You got that right, they definitely put the "F-U" in Fair Use! ;)

      --
      Join the TWIT army now!
    3. Re:Wow this usage seems very fair by archen · · Score: 2, Funny

      I donno about that. The musicians feel pretty used, and the RIAA thinks its fair.

    4. Re:Wow this usage seems very fair by jbottero · · Score: 3, Interesting

      I know this will earn me "flaimbait" or "troll" here at Slash, but honestly it's not meant that way. I really don't understand why people do not get that it is just dishonest to copy and distrubute copyrighted works without permission. I know this is the land of "Information Needs To Be Free", but look at it a different way. As a coder, you develope a unique little app. Well you might *like* to give it away, the rent is due. I don't know about you, but I require my employer pay me for my work. So, being in *High Tech* your company allows you to hold the patent (as many do). But then they sell your work to kingdom come and give you nothing... The rent is due, and guess what? You can't pay it because your employer has screwed you, after all, "Information Must Be Free" Bottom line. Music is *for sale* and if you want it, you must pay for it.

    5. Re:Wow this usage seems very fair by Anonymous Coward · · Score: 3, Insightful
      Music is *for sale* and if you want it, you must pay for it.
      No I don't. I can acquire music that is in the public domain, I can listen to free live performances, and I can create my own. The RIAA wants you to believe that you have no alternative but to pay for music.

      The reason everybody is so riled up about this is that it flips the burden of proof onto the accused. The RIAA can subpeona anyone they want, then file a lawsuit against that person. That person will probably be contacted by the RIAA prior to going to court and offered the following choice: settle for less than a lawyer would cost, or go to court and run the risk of having to pay enormous damages, plus a guaranteed huge lawyer bill. Whether this person has done anything wrong is irrelevant. The RIAA has become an Enforcement Agency.

      If we had no prisons, but instead all of our criminal punishments were monetary in nature, then there would be no difference between the RIAA and the police.
    6. Re:Wow this usage seems very fair by jbottero · · Score: 2, Informative

      Music "in the public domain" is not the question here. We are talking about *copyrighted* music. More power to the indies, the bands that want the people to hear their music, and it would be good for *them* if you bought a CD or 7 inch or whatever, so they can go on playing.

      RAII is talking about a different animal, the pro, commercial music maker. They have a "product". You want it? Pay for it. I don't expect to be able to walk into a 7-11 and snatch a bottle of Coke and tell them "Soda must be FREE! WooHoo!"

      Unless Coke puts a GNU/GPL on the bottle, I guess I'll just have to pony up the buck and a half...

    7. Re:Wow this usage seems very fair by john1659 · · Score: 3, Insightful

      While the "stealing" of music is illegal and violates copyright laws, why is the RIAA using so much time and resources to elimate this? Is the pirating of mp3's an immediate threat to national security? I would really like to see an UNBIASED source of information regarding exacly how much revenue the artists and record labels are losing as a result of music pirating. In my opinion, this is only giving more reason for people to come up with better/faster/more secure ways around the system...

    8. Re:Wow this usage seems very fair by crmartin · · Score: 3, Interesting

      You know, I've wondered about this. As I've understood it -- just listened to Jack Valenti talking about it on the news today -- they claim that there's been a drop of something like 30 percent in sales, which they ascribe to file sharing.

      But, I've also seen it said that book sales were down about 30 percent.

      It seems as if the least hypothesis is that file sharing, rather than costs the RIAA members zillions, is actually costing them statistically nothing.

    9. Re:Wow this usage seems very fair by Romeozulu · · Score: 1

      Really? Do they? How many RIAA musicans do you know? Or are you just spreading what you've read.

      I'd really be curious to hear from actual artists to see what they think. It has to be from ones that are sells a good chuck of CD's and don't feel like they are getting paid enough for what the publisher is doing. I'm sure that there are a large number of artist that aren't selling any CD's and are complaining, but that's not the charge leveled against the RIAA companies.

      Any recording artists on /.

    10. Re:Wow this usage seems very fair by Anonymous Coward · · Score: 0

      everyone should just use freenet. then we wouldn't EVER have to worry about RIAA.

    11. Re:Wow this usage seems very fair by Golias · · Score: 5, Insightful
      Well, Cringley asked what we thought, so here is the e-mail I sent him:

      Well, you asked, and after being slashdotted you probably are getting a lot of answers, but I do see a snag or two in your plan. Bear with me... I tried to be concise, but my response ended up being almost as long as your article.

      Under the current system, artists depend on a big, evil record company to not only get their albums made, but to get them marketed. Okay, most artists get screwed by this deal, but the most popular acts eventually start making money when the big, evil record company sells enough CD's.

      Under your proposal, any artist, with or without a label, would sell exactly one CD to, well, the entire world, because people would be crazy to not participate in "Snapster" if it exists.

      So how in the heck does any artist make direct money off an album? A small percentage of 2 Million sales is certainly a better deal than 100% of one sale.

      If such a company were to exist, recorded music would be released for the sole purpose of marketing the band, who hopes to make their cash via concerts. (Unless I'm mistaken, Phish pretty much already lives this way, cranking out lots of low-selling albums to drive ticket and t-shirt sales at their shows.)

      So long as a CD costs $15, it's folly to think that lots of good albums will continue to be released in such an environment. What will probably happen is albums by established bands, such as U2 or Jewel will suddenly cost $10,000,000 per CD (or more), and albums by bands who are not established will be worth what Snapster is willing to pay (nothing).

      Stay with me now, I don't think my conclusions are over-reaching just yet...

      The only way to raise the price that Snapster will pay for your albums is by "getting established." The only way most bands will be able to do that is... big shock here... sign a contract with a big, evil record label (now a "marketing service") who is entitled by the contract terms to something like 95% of the sale (not sales, sale) of each CD the band releases under the contract.

      Since these big, evil companies will be hungry (something like 40% of their business model is in back-catalog sales, which Snapster will have already erased.) They can then take the following steps to restore as much of their lost profits as they can:

      1. Jack up the price of the individual album, including back-catalog disks.

      2. Form their own Snapster.

      3. Stop selling albums. Completely. If you are not a member of the big, evil labels' version of Snapster, you can't hear the new Avril CD. Instead of being a record sales company, or a music marketing company, they will be in the business of owning content which is not for sale, but is streamed exclusively to their shareholders for a fee.

      4. Wait for your Snapster company to die on the vine.

      5. Jack up the shareholder download price to the point that it's just as expensive to download as it was to buy CD's.

      The only way to stop this would be to claim that Evil Snapster is in violation of anti-trust law. Apart from Standard Oil and Bell, how often does a company lose one of those!? Besides, what politician is going to want to bust up a company when it's partly owned by almost every single American who listens to music?

      --

      Information wants to be anthropomorphized.

    12. Re:Wow this usage seems very fair by EzInKy · · Score: 1

      But then they sell your work to kingdom come and give you nothing...

      A business method they learned from the Record Industry.

      --
      Time is what keeps everything from happening all at once.
    13. Re:Wow this usage seems very fair by Pofy · · Score: 3, Insightful

      >Bottom line. Music is *for sale* and if you want
      >it, you must pay for it.

      No, there are many ways to get or listen to music without paying (and yes, I am talking about music that still has a copyright on them). I can for example go to a friends home and listen to his music. I can turn on the radio and listen to the music. I can record music of the radio. I can (at least in Sweden), get a copy of music from a friend (since such music is allowed according to our copyright law, at least for now) and so on.

      There are many other ways as well where I don't have to pay for music I want that are all according to the law and does not infringe upon copyright. Of course, big content providers typically want you to believe otherwise and some press tend to jump onto that and write such things too, but that does not make it that way, fortunately.

    14. Re:Wow this usage seems very fair by real_b0fh · · Score: 1, Insightful

      2. Form their own Snapster.

      3. Stop selling albums. Completely. If you are not a member of the big, evil labels' version of Snapster, you can't hear the new Avril CD. Instead of being a record sales company, or a music marketing company, they will be in the business of owning content which is not for sale, but is streamed exclusively to their shareholders for a fee.


      BINGO! you got it dude. Cringely's motivation is not to destroy the record companies, but to destroy their current fucked-up business model. Everyone is free to start its own snapster, and every artist is also free to do so (note, if you are distributing your own stuff, you do not need $2M like he says, just a puny server and some kind of authenticated BitTorrent ;-)

      cheers

      --
      "Contrary to popular belief, UNIX is user friendly. It just happens to be selective on who it makes friendship with"
    15. Re:Wow this usage seems very fair by Golias · · Score: 1
      BINGO! you got it dude. Cringely's motivation is not to destroy the record companies, but to destroy their current fucked-up business model. Everyone is free to start its own snapster, and every artist is also free to do so (note, if you are distributing your own stuff, you do not need $2M like he says, just a puny server and some kind of authenticated BitTorrent ;-)

      So instead of owning CD's, which we have some "fair use" rights to, listeners interested in pop music will all be forced to become non-voting part-owners of music distributers, who might choose to allow us to copy music with far steeper restrictions. Meanwhile, indie artists will be putting their stuff on completely unnoticed servers and ignored by the masses, same as always. How exactly is that changing anything for the better?

      --

      Information wants to be anthropomorphized.

    16. Re:Wow this usage seems very fair by aserra · · Score: 1

      I think the ultimate goal is #2, get them to form their own "Snapster". I have to agree with the previous posters, the goal of CDs is to drive listeners to concerts. The CD ends up as a form of advertising. While the record companies make money off of the CDs, the majority of money artists make is off of concert proceeds (tix, t-shirts, etc.).

    17. Re:Wow this usage seems very fair by Anonymous Coward · · Score: 0

      Perhaps it would be a better idea to just start a recording company that doesn't suck.

      A great deal's been said about how recording companies need to get with the times and provide worthwhile music downloading services, but I don't recall if anyone's suggested they stop producing CDs altogether. That's a lot of overhead a new company could avoid, and if they can find a way to make themselves more appealing and friendly to artists and market themselves as a legitimate alternative to existing record companies I think the potential for success is there.

      There is, of course, the nigh-impossible-to-answer question of: given a pay-to-download service that is both well designed, accessable, and inexpensive, would current piracy rates drop/remain low enough for the music business to be profitable?

      In general there's a fundamental flaw in trying to mass market information. Once you've provided one person with a piece of information, from a theoretical standpoint, there's no way to prevent them from redistributing it (if they can access it, they can copy it, one way or another) short of convincing them it is in their best interest to do so. Basically, they have to have a compelling reason to keep that information a secret. That reason could be a law, a threat, an appeal to logic or ethics, or pretty much anything.

      It is generally possible to market information in this fashion to a relatively small number of people. Industrial control software is very lucrative. The market is very small, and has a pretty compelling reason to keep the information you sell them a secret: they've made an investment and would lose money if their competition got the same information for free.

      However, most information that is mass marketed comes with little impetus for its consumers to keep it secret; and the bigger a group of people you sell information to, the harder it will be to convince all or most of them to keep it to themselves.

      Of course, some information is much more difficult to "copy." A blueprint is, in an abstract since, one medium for containing the information that is, say, a mahogany desk. If we live to see nanotechnology really manifest then this concept will become a lot more relevent. Will the molecular structure of my breakfast come with a copyright? If this becomes the case, we may have to drastically alter our economic paradigm. Of course, given that kind of technology, money might no longer be particularly necessary except perhaps to purchase a base block of matter from which to create.

      Anyway, until that happens (if it ever does) we'll have to figure out someway to support our artists. In general, I'm very much a "capitalist," but I think this entire issue is one of the flaws in the system showing through.

    18. Re:Wow this usage seems very fair by The+Spoonman · · Score: 1

      but I don't recall if anyone's suggested they stop producing CDs altogether.

      I fall for this one all the time, too. You see the rest of your sentence needs to read: "because everyone has access to the Internet".

      There are a lot of people who don't have this luxury item. Although........if they're the kind of people who buy even just one CD a month... :)

      --
      Which is more painful? Going to work or gouging your eye out with a spoon? Find out!
      http://www.workorspoon.com
    19. Re:Wow this usage seems very fair by poot_rootbeer · · Score: 1

      While the "stealing" of music is illegal and violates copyright laws, why is the RIAA using so much time and resources to elimate this? Is the pirating of mp3's an immediate threat to national security?

      I wasn't aware that the RIAA was a government agency trusted with the national defense.

      But then again, I haven't read the DMCA that closely...

    20. Re:Wow this usage seems very fair by Anonymous Coward · · Score: 0

      Most artists make very little from CD sales. If their music is popular, they make the majority of thier income from touring. There are some artists that don't tour, but they live a very middle class lifestyle because of that decision.

      So, I don't see Cringely's suggestion as hurting them much at all. If anything, it might cause more people to be exposed to an artist and thus want to see them on tour.

    21. Re:Wow this usage seems very fair by Anonymous Coward · · Score: 0

      So can someone point me to the court case where the RIAA was suing someone for listening to someone else's CD, where listening is defined as "going to a friend's home and hearing music from a CD that the friend owns"? Or how about the court case where the RIAA sues someone for listening to the radio?

    22. Re:Wow this usage seems very fair by Gonarat · · Score: 3, Insightful

      Very, very good point, and something that Cringely misses in his article. On possible solution :

      Cringely states : "Each share also carries the right to download backup or media-shifting copies for $0.05 per song or $0.50 per CD, that download coming from a separate company we'll call Snapster Download that is 100 percent owned by Snapster."

      Why not double this to $0.10 per song, $1.00 per CD and split half with Snapster and half with the artist. Snapster would still have the revenue needed to run, and the artists would make more than they do now. Databases could be built to also make sure that song and lyric writers get a cut. Since each successful download would be logged, each artist would get what they actually earned instead of going by popularity ala ASCAP. Britney would only get what she earned while the independent band who cut a CD and got it on Snapster would actually get a check! This would keep the production of new music viable, and perhaps even more profitable for Musicians, while reducing the end price of music -- a win/win situation.


      --
      Beware of Sleestak
    23. Re:Wow this usage seems very fair by Aidtopia · · Score: 1

      Making backup copies and transferring to other media may not be a "fair use." As the DOJ IP lawyer pointed out in yesterday's Slashdot interview, fair use encompasses comment, criticism, scholarship, and news reporting. I don't see where backups fit into this.

    24. Re:Wow this usage seems very fair by Anonymous Coward · · Score: 0

      I wonder if we could have a class action suit on M$ for forcing users of Windows Media Player to copy the CD to the HD as *.WML or MP3's.

      Isn't that illegal according to the RIAA?

    25. Re:Wow this usage seems very fair by twofidyKidd · · Score: 1

      I do believe ALL but a small percentage of RIAA artists retain copyright. Even on a popular artist, the record company still makes more money in great orders of magnitude higher than the artist ever does, in fact, most of those artist are in the red for great lengths of time with their record companies before they even see a single solitary dime earned.

      What I'm getting at is how is this any different from what is being done to artists now, assuming you are treating them as the copyright holders? I see this business model as a new opportunity to work out better compensation to the artist, as well as giving them the opportunity to hold their own copyrights. As a fledgling artist, you could theoretically produce an album, sell a single copy to Snapster at anywhere from $500 to $20,000 plus some small percentage of income over the course of a few months and bam, you have yourself a job. You get to make music for a living. All recording costs are your own, and 90% of the marketing is your responsibility. Interesting perspective on the whole thing, eh?

      --


      Hades, PoD: Official Advocate
    26. Re:Wow this usage seems very fair by real_b0fh · · Score: 0

      Well, for a start, you don't pay $20 per album anymore. If I recall correctly. the model is $20 for a share (which will always cost $20) and $.50 per album downloaded. Pretty good pricing, IMHO, and you sure as hell can burn how many copies you want, just dont start reselling them to outsiders...

      But to be fair, there is a lot of fuck-ups in Cringely's model too. First, how the hell you make this company international? Laws are pretty different from country to country, ya know. CDs happen to exist everywhere, not only in the US. It is not easy for people like me (i live in brazil) to buy shares of american companies, so Im basically screwed in his model, unless there is a local snapster, with rights to things I like to listen.

      The thing is, we NEED to find another model of music distribution ASAP, the current one is crap. This dude is just speaking out his mind, and his idea is interesting, albeit far from perfect. Of course you, me and everyone are welcome to contribute with a better idea.

      cheers

      --
      "Contrary to popular belief, UNIX is user friendly. It just happens to be selective on who it makes friendship with"
    27. Re:Wow this usage seems very fair by Thing+1 · · Score: 1
      I don't expect to be able to walk into a 7-11 and snatch a bottle of Coke and tell them "Soda must be FREE! WooHoo!"

      We're currently in the first stages of a complete technological revolution, brought about by advanced technology and culminating in nanotechnology.

      Once we have full-blown nanotech, we will be able to "copy" any physical object. Just like Cringely's file-sharing business model, there will be an object-sharing business model: a company purchases one copy of all physical goods (a Corvette, a can of Coke, a desk, chair, table, lamp, TV, sofa, the best steak, etc.), and then "scans" them and makes the blueprints available to all shareholders.

      So you just download the blueprints and your nanofactory creates the item for you. Yes, this causes problems because nobody is being paid (not even the makers of the nanofactories, because they can be scanned and duplicated -- we only need one nanofactory) -- but at that point money won't matter, because the struggling artist/Coke executive/Corvette dealer could simply obtain a nanofactory and "have it all" themselves.

      The future system will be a lot like the open source society -- a gift society, where you are valued not by how much money you can earn, but by how much you can better the lives of your fellow wo/men.

      And products will continue to be improved, just not under the current model. Someone in a previous article had asked "Why will companies continue to innovate? Who would want more horsepower, or lower MPG, when you can just copy the car?" The answer is that individuals will collaborate and innovate, not necessarily under the wing of a corporation. Automotive engineers, newly unemployed and with a cornucopia of goods available to them, would likely get bored after a bit and want to continue doing what inspired them; a community will grow just like the open source community has, around fostering new ideas and further developing older ones.

      No, you can't walk into a store and say "Soda must be free!!!" and walk out with a bottle of Coke. But one day you'll be able to make a copy of that bottle in your own kitchen. Will you be breaking laws by doing so? Should those laws exist? In other words, given that technology can give us an unlimited supply of anything, should there be artificial legal boundaries simply to prop up older business models? If things go right, in the future there will be an abundant public domain; in fact, I would imagine us reverting to the way it was before copyrights, where ideas immediately enter the public domain upon conception.

      --
      I feel fantastic, and I'm still alive.
    28. Re:Wow this usage seems very fair by john1659 · · Score: 1

      If you could point out to me where I stated that the RIAA was a gov't agency, I would gladly appreciate it. I am simply asking a question. Since national security risks are at a all time high, wouldnt any company/organization be more concerned with there safety? I don't see the point in expending so much effort into stopping copyright infrigement when there are "bigger fish to fry". But then again..it's all about the money...

    29. Re:Wow this usage seems very fair by Klimaxor · · Score: 1

      listeners interested in pop music will all be forced to become non-voting part-owners of music distributers

      That would be a very very good thing. Think about it. Get all the people who despise these money hungry fucks, spill out a couple bucks and become a shareholder, boom. You technically and financially have them by the balls. Each and every person who owns even one share of a company is legally allowed to join and participate in the shareholder meetings. Groups of the people who hate the company could elect one or two people to sit in on these meetings, and if they try to come up with some half-assed scheme to further fuck over the artists/people, well, you have enough shareholders to keep that from happening. What'd be even funnier would be if some company overlooks the percentages, and the owner ends up having less then 50% of the total shares, thus allowing the other 51+% to fire his ass :D

      --
      your sins into me, oh my beautiful one.
    30. Re:Wow this usage seems very fair by Golias · · Score: 1
      Well, for a start, you don't pay $20 per album anymore.

      You obviously didn't read my post very closely. Once the record companies gain control of this model (and whoever produced the content will invariably have control), the price of $0.50 per download goes right out the window.

      --

      Information wants to be anthropomorphized.

    31. Re:Wow this usage seems very fair by Golias · · Score: 1
      Get all the people who despise these money hungry fucks, spill out a couple bucks and become a shareholder, boom. You technically and financially have them by the balls.

      You've never owned non-voting shares before, have you?

      --

      Information wants to be anthropomorphized.

    32. Re:Wow this usage seems very fair by Anonymous Coward · · Score: 0

      Actually most concert tours lose money, unless they attract sponsorships.

    33. Re:Wow this usage seems very fair by gessel · · Score: 1

      The reason some people don't "get" that it's "dishonest" to copy and distribute copyrighted works without permission is that it is not dishonest; nor is it theft, nor is it piracy. Music is not "for sale", nor can it ever be any more than the fire on my candle be owned by another even if I lit it from he. CD's are for sale, subgrants of temporary monopoly rights are offered for a fee, but information is not owned. That's not to say it's not "illegal" to make unauthorized copies of copyrighted works: it is.

      If you work for an employer you solve problems for them or do labor for them and they presumably pay you for your effort, but neither you nor they "own" your ideas, even if they claim a temporary monopoly on the application or dissemination of your ideas if you contractually grant them the right to make such claim and wave such right yourself. To do so they apply for or presume an implicitly granted monopoly under the auspices of the constitutional clause which permits temporary monopolies as a method to further the progress of science and the useful arts, but this is not ownership, not even temporary ownership, it is a granted temporary monopoly.

      The copyright holder's industry has so successfully perverted the language around this subject that people simply can't think about it rationally, but try: if you could own an idea... what would you own? If you tell me, where is your idea? In my head? Do you now "own" a part of my brain? A particular organization of chemicals and polarizations? A pattern of magnetic fields or electrical charges? You have a right to tell me what to do with my brain? How to vocalize my thoughts? What I can remember? Memory is a copy, and a copy is theft, therefore memory is theft. Forget every copyrighted song you've ever heard now, or pay $100,000 per instance...

      Instead of seeking parallels from the absurd oxymoron of "intellectual property," consider other monopolies, such as electric power. Does the monopoly they hold confer property rights on the intangible concept of the distribution of power in a geographic region?

      It's illegal for you to set up your own powergrid not because the power company "owns" the concept of the distribution of power, but because We The People have decided that it is in Our best interest that we not have 100 power poles in every yard and separate distribution networks feeding into different houses. But We may choose to end the monopoly if We The People feel that doing so better serves Our needs. That is it "may or may not be done, according to the will and convenience of the society, without claim or complaint from any body."

      It is unquestionably against the law to distribute without authorization copyrighted works (or even to sing "Happy Birthday" in public) under the constitutionally questionable DMCA, but such laws remain constitutional only in as much as they fulfill the mandate that by enforcing an "embarrassing monopoly" on the "fugitive fermentations of an individual brain" that We The People benefit more thus than We lose from the deprivation of the public domain.

      Personally, I think it has become obvious that copyright holders have unfairly seized control of the debate and turned the power of their granted monopolies to de facto property rights to the great and unconstitutional detriment of the progress of science and the arts. Fighting the wholesale piracy of the public domain by copyright holders is not "dishonest" but a critical battle between true patriots protecting this Nation from piracy and theft by profiteers and miscreants like the DMCA and RIAA that steal the culture of our children and children's children from the public domain by dishonesty and bribery.

      "If nature has made any one thing less susceptible than all others of exclusive property, it is the action of the thinking power called an idea, which an individual may exclusively possess as long as he keeps it to himself; but the moment it is divulged, it forces itself into the possession of every one, and the receiver

  2. Best Article Ever by SUB7IME · · Score: 2, Interesting

    In my opinion, his idea is brilliant. Create a corporation that is publicly traded, so that everyone has the chance to 'own' rights to every CD. I'd love to see some lawyers' opinions on this.

    1. Re:Best Article Ever by Darth+Fredd · · Score: 5, Insightful

      Yes, but remember that Windows server licenses are owned by a corperation, and you can only use it on one computer.

      You know those little "by opening this CD you have agreed to.." things? Think a slight modification, here..

      Wouldn't be that hard.

      --
      "The most looniest, zaniest, spontaneous, sporadic Impulsive thinker, compulsive drinker, addict"
    2. Re:Best Article Ever by the_quark · · Score: 5, Insightful

      The ignorance of both business and law displayed in his article is nothing short of breathtaking.

      First, he handwaves about going public at $20/share. Maybe in 1999, pal, but not now. You can't just decide to do it, there are significant capitalization requirements, to say nothing of the money the bankers will want for doing the work for you.

      But the real guffaw-worthiness of this article is the tremendous misunderstanding of fair use he displays. Number one, it's quite questionable what corporations' fair use rights are - but it's clear that they are less than an individual. Remember mp3.com? They bought 300,000 CDs and made one digital copy of each. That's perfectly legal, under fair use, for you and me. But when a corporation does it for profit (and by definition everything a corporation does is for profit), it's copyright infringement. MP3.com got pwn3ed by the major record labels for this.

      Second, and perhaps more importantly, the traditional test of fair use is, "would it replace a sale?" This clearly would. It's legal for you to make a copy of a CD so you can listen to one and home and one at work, since you won't be listening to both simultaneously. If they wanted to build this system so that only one shareholder could listen to a given piece at one time, they MIGHT be able to squeak through. But try this, and they Major Labels will just laugh all the way to the bank.

    3. Re:Best Article Ever by leviramsey · · Score: 5, Interesting

      It probably (almost certainly, but IANAL) wouldn't work.

      Remember, the corporation and its shareholders are legally separate entities. Thus the shareholders don't own the music (or any rights to it, more properly); they own a company which owns the rights to the music. And since it's doubtful that the RIAA grants a right to rent the music (first sale would not cover renting), the corporation doesn't have the ability to give its shareholders its rights.

      In theory, you could do something within the confines of first-sale; it could be implemented as follows:

      • User A has file containing song in their collection.
      • User B wants said file.
      • User B offers to pay User A $0.00 for the file.
      • User A accepts the offer.
      • File is transferred from User A to User B; upon transfer, User A deletes the file

      However, there are kinks in that plan; first, it's doubtful that files made by fair-use rights could be incorporated into this (fair-use as it's been understood by the courts only extends to personal copying; as soon as it's transferred, any legitimacy conferred by fair-use is lost). However, files downloaded without taking advantage of fair-use (iTMS for instance) would not have this issue. Then there's the final requirement; in order to qualify for a first-sale defense, the file would have to be deleted from the server after being transferred. This is somewhat difficult to accomplish, even if you could DRM stuff. However, perhaps copying the file which you obtained through this system to another location would be fair-use (and the system might even employ a hash database to prevent further transfers).

      Back to the topic. Even if the corporation could rent/sell it to its shareholders, some portion of the actual value of the data would likely be counted as a dividend, or at least income, for the shareholder, who may end up paying taxes on it.

    4. Re:Best Article Ever by pbox · · Score: 2, Insightful

      The ignorance of your reply is breathtaking.

      1. mp3.com was not owned by people who were downloding copies.

      2. $20/share inital outlay per person can be though of as joining the club. It does not even need to be publicly traded, and the price can be kept fixed.

      3. Maybe the intention of the law is "would it replace a sale", however that is not the actual wording, otherwise all those poor souls who got hit by RIAA would use that as an easy defense. "But your honor, I would not have bought that CD I downloaded, it is a buch of crap!"

      --
      Code poet, espresso fiend, starter upper.
    5. Re:Best Article Ever by Anonymous Coward · · Score: 0

      when a corporation does it [copy music] for profit (and by definition everything a corporation does is for profit), it's copyright infringement.

      My understanding is you are not paying for a copy but are paying to have your "property" as a shareholder transmitted or copied to another format. If you went to the corporate headquarters, they'd have to let you copy it for free.

    6. Re:Best Article Ever by Anonymous Coward · · Score: 1, Interesting

      > If they wanted to build this system so that only one shareholder could listen to a given piece at one time, they MIGHT be able to squeak through. But try this, and they Major Labels will just laugh all the way to the bank.

      You bring up an interesting point here. CD rentals are legal in some countries (not in the USA? maybe now!)... and the companies that rent videos and CDs are laughing all the way to the bank. If I recall correctly, in the past the RIAA has attempted to even stop the resale of music CDs (without success).

      All you need to really make the one share holder may listen thing work is a parent Corp. that holds thousands of samller penny market Corps. All you have to do is match the number of child Corps. to a number that will match peak listeners... that and sell a companion stream ripper like program.

      I think it could be done... legally... profitablly... and in a way that will bring about the demise of the RIAA.

    7. Re:Best Article Ever by ryanr · · Score: 3, Insightful

      Yeah, I'm sure it would work great. There does seem to be this little "leap" there in the middle... let's see:

      1) Buy 100,000 CDs
      2) Suddenly every shareholder somehow now has a right to have a copy of that CD which they will make full use of (way beyond fair use)
      3) Profit!

      Wow, I'm impressed. Cringley has uncovered the long-sought step 2.

      Really, I think he may run into a little trouble with the idea that a shareholder suddenly has rights to everything the corp has a single copy of. Heck, that wouldn't even fly if the corp held the original copyright. If it did, I'd be set! Buy a share of Microsoft, get a free copy of any MS software I want. Buy a share of SCO, I can run all the unix-like software in the world I want. Heck, I don't need Cringley, I'll just buy a share of each of the 6 or so music companies, and then I'm cool getting whatever I want from Kazaa.

      But who knows, maybe in some strange way, he's right. Just in case, I present the open-source version of his plan:

      I form a corporation for $100 dollars or so. I issue 10 billion non-public shares. I make each of you an officer in the corp, and issue you a share. You take a CD that you have a copy of, and transfer ownership of it to the corp. This is a distributed corporation, so you will be storing said CD in your home. You then rip the CD in MP3, OGG, etc.. and store on your harddrive. You then join the private corp p2p net. BTW, in order to actually sign up for the corporation and receive your share, you join the p2p network. To indicate that you wish to transfer ownership of your CD, you rip it and make the files available on the p2p network.

      I think I'll call it Kazaa.

    8. Re:Best Article Ever by the_quark · · Score: 5, Insightful
      1. Doesn't matter. MP3 wasn't sued for the downloads, MP3 was sued for making the copy to populate the database. Cringley proposes doing exactly the same thing to start his system. Doesn't matter what the intent was or is, a corporation simply copying a CD without a license is a violation of existing copyright law. As Judge Rakoff said in his opinion, "The complex marvels of cyberspatial communication may create difficult legal issues; but not in this case. Defendant's infringement of plaintiffs' copyrights is clear." Explain to me how you can implement Cringley's proposal without doing exactly what MP3.com did and got busted for - making copies.

      2. Not relevant, you're already out of business from 1.

      3. "Would it replace a sale" is a shorthand way of saying, "would you normally need to buy it to do what you're doing?" The relevant law is 17 U.S.C. 107, "Limitations on exclusive rights: Fair use":

      In determining whether the use made of a work in any particular case is a fair use the factors to be considered shall include -

      (1)

      the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes;

      (2)

      the nature of the copyrighted work;

      (3)

      the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and

      (4)

      the effect of the use upon the potential market for or value of the copyrighted work.

      I'd say his idea is a slam dunk not-fair-use under section four, as (he freely admits) it would "destroy the potential market for...the copyrighted work." Not fair use, not legal, not a good business idea.

      None of this, of course, is trying to make any argument about what the law should be. But these questions aren't hard under the law now, and they're very obviously not legal under the law now. Anyone who tries this is going to get eaten for breakfast by the major labels (and the minor ones, too - they sued mp3.com pretty hard as well).

    9. Re:Best Article Ever by shepd · · Score: 5, Informative

      >You can't just decide to do it, there are significant capitalization requirements, to say nothing of the money the bankers will want for doing the work for you.

      Your ignorance is equally breathtaking.

      Cost to incorporate (where I live): $403.30
      Cost to put your corporation on a penny stock market: Minimal (free? I'm not sure).
      Amount of bookeeping required: Almost none, short of dealing with taxes. ZERO SEC requires, that's for sure.

      You think such a corporation has to be Nasdaq listed or something? At best you might need to hire 1 accountant to get going. Big deal.

      By the way, I'm incorporated. Want to buy shares? Well, I'm not selling right now, but the effort required by me is none. The only thing I'd have to send you is a paper saying how much stock you've bought, and get the accountant to record your purchase in the books. I never have to speak with you again, if I didn't want to. Total cost to me? About $0.10 if you include the price of the toilet paper your stock would be printed on along with the accountant's fee (assuming he enters everything in all together when closing the books at the end of the year, like with my corporation).

      Here's a few examples that might be helpful to you. How many of them do you think are going to give out shareholder's packages every year? 2... maybe 3?

      --
      If you could be told what you can see or read, then it follows that you could be told what to say or think - BoC
    10. Re:Best Article Ever by Usagi_yo · · Score: 1
      While I agree with almost everything you say here reference this being a not so hot and not so fool proof way, I do disagree as to the reason mp3.com got owned. mp3.com got owned because of a lack of understanding of this new market and what they were trying to accomplish.

      My understanding of mp3.com was that they were only letting people who currently own the record or song download it and play it in mp3 format. That to me seemed fair.

      Prediction ... when the audio copying issue and accessibility via the internet is finaly settled, the lawsuites are going to fly for patent infringment, IP theft and the like. I hope first in line is the erstwhile napster, who after the RIAA sued them out of business, will likely have issues with the RIAA using methods similar in design and intent of Napster.

    11. Re:Best Article Ever by dietz · · Score: 1

      But when a corporation does it for profit (and by definition everything a corporation does is for profit),

      Lies. Ever heard of a non-profit corporation? By definition, everything a non-profit corporation does is not for profit.

    12. Re:Best Article Ever by mooredav · · Score: 3, Interesting

      The ignorance of both business and law displayed in his article is nothing short of breathtaking.

      Yeah, I had the same feeling when I read some of his articles about software development. He seemed pretty off-the-wall for a guy who has run development groups charged with very large projects including an entire from-scratch operating system for Apple and the first version of AOL.

      But I enjoy his columns anyway, because he has so many risky ideas. I like crazy ideas. Which would you rather read about: "lateral solutions" that fail in interesting ways, or more retreads of "industry = evil, so I'm just gonna grab what I can get"?

    13. Re:Best Article Ever by Anonymous Coward · · Score: 0

      Your inability to read the article is thoroughly mind blowing.

      From the article:

      "Snapster has to be a public company. It would have its IPO as soon as possible after all those CDs have been delivered. It must be a public company right from the start of operations. Say Snapster goes public on NASDAQ at $20 per share."

    14. Re:Best Article Ever by rhizome · · Score: 1

      You overstep your point in ignoring the idea that the shareholders would have a share in the assets of the company. It's not about fair-use, it's about property rights as an end-run around this copyright mess.

      If the RIAA wants to buckle the copyright courts, then why not add a bit more chaos to the mix? Don't worry, people won't forget how to make music.

      --
      When I was a kid, we only had one Darth.
    15. Re:Best Article Ever by Anonymous Coward · · Score: 0

      ugh...doh! gee, corp A buys a copy of say Crystal Reports 9. Corp A has 10,000 share holders. Do all 10,000 shareholders have the right to install and use this software? NOT!

      Doh!

      daDoig

    16. Re:Best Article Ever by Anonymous Coward · · Score: 4, Informative
      Apologies for the US-centric response (this is all about US law obviously...)

      "Snapster is built on the legal concept of Fair Use, which allows people who purchase records, tapes, and CDs to make copies for backup and for moving the content to other media", says Cringely.

      Baloney! That is not at all what Fair Use is. I am not sure what "lawyer friends" he spoke to, but if he bothered to read any of the Fair Use links on his own page, he might have thought twice about publishing this article. Fair use is what I did in the previous paragraph, quoting Cringely for purposes of criticism. It's always about partial copying of a work, and only for very specific enumerated purposes that are listed in the US copyright law (Title 17). Please see the actual law at http://www.copyright.gov/title17/92chap1.html#107 if you don't believe me. It's quite an easy read. It discusses what is an infringement, and then lists exceptions, one of which is Fair Use (which is not the process Cringely describes).

      Also, I believe media shifting is an entirely different topic. I am not sure where this exception to copyright infringement comes from (IANAL, but I don't see it in title 17. Can anybody post references to the legality of media shifting?). But the one thing I do know is that all the cases I have heard of it being legal have one thing in common: the use does not increase the number of copies being accessed simultaneously. When you make a backup of your media, you're not watching/listening to it at the same time as the original, or letting a friend do so.

    17. Re:Best Article Ever by El · · Score: 4, Funny
      Try this experiment:


      1) Buy one share of any RIAA member company.


      2) Taking your share certificate with you, walk into their corporate headquarters with a CD burner, and demand to be allowed to make a copy of the IP you "own".


      3) Be sure to bring ear plugs, as the laughter may exceed safe decibel levels!

      --

      "Freedom means freedom for everybody" -- Dick Cheney

    18. Re:Best Article Ever by Gorobei · · Score: 3, Insightful

      Property rights, communal rights, performance rights, and copyright do not map one to one. A corporation cannot buy one copy of a book and then send a photo-copy to all its stockholders. A corporation can't take a hit song, buy the CD, make it the corporate anthem, and play it at company events without charge.

      At best, it can behave like a library: offer the book up, and let one stockholder at a time read it. If the one-at-time method is implemented via electronic downloading of the data, the copyright holder probably has a good claim that the whole system is designed to facilitate infringment.

    19. Re:Best Article Ever by the_quark · · Score: 1, Insightful

      Actually, if you, say, read the article, he suggests going public on the NASDAQ at $20/share. I was merely pointing out this was nontrivial. I'm perfectly aware how easy it is to incorporate and issue stock. That wasn't what he suggested; he is clearly seeking a world where any idiot can buy your stock from his broker. That's harder.

      Even penny stocks have some listing requirements. They're just less than for the major exchanges. Unfortunately for the purposes of Mr. Cringley's idea, generally the less reputable the exchange and listing requirements, the harder it is to actually buy. Still, if the rest of it were legal, you might be able to set up a company you'd list on the OTC:BB and sell shares in for some small amount. But since there are no market makers on the OTC, your stock would be illiquid and ripe for manipulation.

      As for issuing shares in your still-private company to the massess: Selling unlicensed securities to unaccredited (read: not rich) investors will generally get you sent to jail for running a stock scam.

    20. Re:Best Article Ever by Anonymous Coward · · Score: 0

      Don't you mean a non-profit organization?

    21. Re:Best Article Ever by dietz · · Score: 1

      No, I mean a non-profit corporation.

      AKA a 501(c)(3).

      Search google, man.

    22. Re:Best Article Ever by the_quark · · Score: 1

      I'm not aware of any NASDAQ publically listed not-for-profit companies, which is what Cringley suggests. Perhaps you can enlighten me as to their stock symbols?

      Obviously I was discussing the for-profit publically traded type of company he was talking about in the article. Under law, anything a (for profit) corporation does is presumed to be based upon a profit motive. This prevents corporations from claiming, "we didn't make any money off of breaking the law," since the law can say, "presumably, as a for-profit corporation, you thought you'd get something out of it."

    23. Re:Best Article Ever by LiquidCoooled · · Score: 2, Funny

      make it a 48 speed cd and we will hear the laughter from England!

      --
      liqbase :: faster than paper
    24. Re:Best Article Ever by thebitboy · · Score: 2, Insightful

      I have an alternative to your plan. Say that a P2P system was set up such that each file trader needed to put up songs they legally owned for sale at $0.01 each. The trader's account starts at $0.00. Some of the trader's songs get put into a 'for-sale' status. Each time someone downloads one of the songs the file is deleted from the trader's hard drive and the account increases $0.01. When a song is downloaded the account gets reduced $0.01.

      One problem would be that the songs would need to be purchased separately, can't delete them from the original CD. Another problem would be how to prove the songs were legal to begin with. If the system were set up there would have to be some way to prevent abuse.

      I assume the RIAA would claim that copies could be made of the songs even if they were offered and sold with the system. What's the difference with selling any other copyright item like a book?

    25. Re:Best Article Ever by the_quark · · Score: 4, Informative

      I think mp3.com's idea was a good one. I was head of technology for EMusic, and I had the exact same idea before they announced theirs. Thankfully, our legal counsel was better than theirs (or more listened to by us) and he said, "What, are you insanse? As soon as you make the copies, you've broken the law!" It makes sense to the tech mind from an outcome perspective. Ironically the service itself seems to meet the fair use tests I describe above - it doesn't replace a sale, since we know you have it. Unfortunately, it's very clearly against the law. As soon as mp3.com announced their service I knew it was the end of their company as a seperate entity.

      As I understand the mp3.com situation - and EMusic got bought by Vivendi and our tech got merged with theirs, so I've been down there a number of times and talked to a lot of people involved, and read the court decisions, etc. - what they got in trouble for was making the initial copy needed to compress the CDs to mp3 format. That's it.

      The logic of the court is, basically, whatever mp3.com is doing is by definition for profit. If you're doing something for profit, it's by definition not fair use. The point of copyright law is to ensure that, if you make money off copying a copyrighted work, the copyright owner gets paid.

      So, while it would be perfectly legal for you as an individual to copy those CDs, compress them and stream them to yourself, because mp3.com did it for you for their own profit, it's clear copyright violation.

      It is exactly the same way that you can photocopy a book yourself in your home and it's fair use, but if you pay Kinko's to do it for you it's a copyright violation. On the surface it seems the same and it seems fair that you be able to pay Kinko's to save you the effort and investment of a photocopier, but the whole point of copyright law is that Kinko's can't copy works without paying the copyright owner.

      People can rail against this as being cretinous, but I don't see how the current idea of copyright can continue without the law being like this. If you think copyright should exist at all (leaving aside questions like the lunacy of the DMCA's anti-circumvention provisions), then I don't see how the law could be any other than this and still work.

      Obviously not everyone thinks there should be copyright, at all, but that's a different issue entirely.

    26. Re:Best Article Ever by the_quark · · Score: 1

      An insightful article by an AC which deserves to be modded up.

      You say you're not sure what law media shifting comes from - the problem is that so much of this stuff doesn't come from law, but from court decisions. The court has always tried to balance the Constitutional command to issue copyrights against the free-speech provisions of the First Amendment. Fair use is what resulted from that balancing act.

      The time-shifting basis, in particular, comes from the 1984 case SONY CORP. v. UNIVERSAL CITY STUDIOS, INC. It was also used as a defense in the Diamond Rio case (my company filed an amicus brief on Diamond's side in that one).

      An important point many have been missing, as well, is that, if a company makes a copy, it's pretty much by definition for profit and a violation of copyright law if not performed under a license. It is certainly within your rights to copy a CD. It is just as certainly not within a corporation's, with the possible exception of reasonable backup provisions.

      The flat bottom line is that the law is generally more resilient than this and just not that easy to hack. My favorite law hack is PGP, Inc.'s exportation of PGP 5.5i source code in books, but that was really an excercise in legal Judo, using the mass of the First Amendment against the ITAR arms control regime.

      But generally speaking, while tech people tend to try to come up with clever routes around the legal system, the law is more resilient than that. Intent - both yours and the law-writers - matters, and so something that might look to be alright often ends up losing in court if it turns on too technical an interpretation.

    27. Re:Best Article Ever by leviramsey · · Score: 1

      Thinking about this, it may be necessary to make it a more centralized system. However, since we're talking about something that may have more legality than Napster, that may be acceptable.

      Transaction management would be handled by this central server. Negotiation of a sale would go thorugh the server and would involve the exchange of a checksum (say MD5), but computed only from the portions of the file that are actually audio (ie without any ID3 included). The server would track which users had the right to transfer a file with that checksum and disallow listings of invalid files. While re-encoding is still an option, this would effectively require a re-encoding for each sale; the quality loss over time and/or the time required to re-encode to get a different checksum would make this somewhat less than common.

      If there's a file out there that hasn't been cleared by the rights-holder for any digital distribution (ie, it would have to have come through fair-use ripping and is thus not distributable), then it's a simple matter of entering the infringing file's checksum into the db and refusing any transfers of files matching that checksum.

    28. Re:Best Article Ever by the_quark · · Score: 1

      But, again, it's not fair use if it's for profit. Since everything a for-profit company does is considered for profit by the law, copying CDs is considered for profit, and the company would need a license. I refer again to Exhibit A, the twisted and burning wreckage of mp3.com after the RIAA got done with it simply for copying 300,000 CDs.

    29. Re:Best Article Ever by WolfWithoutAClause · · Score: 1
      Remember mp3.com? They bought 300,000 CDs and made one digital copy of each. That's perfectly legal, under fair use, for you and me. But when a corporation does it for profit (and by definition everything a corporation does is for profit), it's copyright infringement. MP3.com got pwn3ed by the major record labels for this.

      Yeah, but cacheing has been ruled legal, so having a whole bunch of CDs in a dukebox system that pulls the song off the CD into ram and then spools it down to the customer is probably fair use. If it's already in the cache and they want it again- that's fair use too. It's probably not illegal until you write it onto a harddisk or something. There's nothing illegal there- it's just a virtualised digital library; so they'd need to pay for a library copy (I think they are more expensive to buy).

      --

      -WolfWithoutAClause

      "Gravity is only a theory, not a fact!"
    30. Re:Best Article Ever by some+damn+guy · · Score: 1

      There is no way such a licence could be attached after the fact- so, at the very least, snapster could still own every CD that now exists without such 'shrink wrap' restrictions.

      Remember, if this is really something that can be done, used CD would work just as well as new ones (hows that for a slap in the RIAA's face?). If licenses went into effect tomorrow, used CD's would still be free of them.

      I really think that the RIAA would have already tried some kind of shrink-wrap license if such a thing were really possible. Haven't they tried everything else? More legal changes would seem like the prefered response anyway.

    31. Re:Best Article Ever by plierhead · · Score: 1
      In my opinion, his idea is brilliant. Create a corporation that is publicly traded, so that everyone has the chance to 'own' rights to every CD. I'd love to see some lawyers' opinions on this.

      Like everyone else responding to this thread IANAL but I see problems here with tax (I'm non-US resident but I'd be pretty sure the same deal applies in the US).

      If a corporate that I own happens to own, say, a vehicle, and I take it home every night and use it for my private use, then thats treated as a form of taxable income paid to me by the corporate. Where I come from its called fringe benefit tax.

      Surely the same would apply if the company lets me use its musical assets. If I'm allowed to download a $14 CD for 0.50c, thats a taxable benefit to me of $13.50.

      This effect doesn't necessarily make the business model unviable but certainly makes it a whole lot less attractive.

      Of course I know jackshit about the law !

      --

      [x] auto-moderate all posts by this user as insightful

    32. Re:Best Article Ever by Minna+Kirai · · Score: 1

      But, again, it's not fair use if it's for profit.

      Absolutely, 100% untrue. Many profitable actions can also be fair use.

    33. Re:Best Article Ever by God!+Awful+2 · · Score: 1


      It probably (almost certainly, but IANAL) wouldn't work.

      [Meaningless discussion of technical details omitted.]

      The law exists both on paper and in spirit. When someone does something that violates the spirit of the law but not the letter of the law, that's called a loophole. Two interesting points about loopholes:

      a) The courts don't entirely ignore the spirit of the law in their interpretations, especially when there is clear intent to exploit a loophole.

      b) Congress is always free to amend the law, thus closing the loophole.

      Therefore, the literal interpretation of your ridiculous tehnical scheme is meaningless.

      -a

    34. Re:Best Article Ever by Whorbbit · · Score: 1

      I like the guffaw, one of my favorite sorts of laffs actually (for all you non-nerdy folk who don't distinguish between different laughs, the guffaw is a short bursting kind of laugh, some what impulsive and ends suddenly, like the laugh you'd do when your grandma's corpse farts at her funeral) Anyways back to the matter at hand oh wise one. What if it was a non-profit orginization dedicated to archiving the works of modern artists in a secure manner which is near impossible to dispose of, like oh... I dunno, spreading various works over millions of "data archives" throughout a decentralized network. You think they'd bite that? I'm sure a congressmen could easily squeeze it in to a proposal for more money needed for interstate upkeep or somthing. Cheers!

    35. Re:Best Article Ever by 0111+1110 · · Score: 1

      [quote]The point of copyright law is to ensure that, if you make money off copying a copyrighted work, the copyright owner gets paid.[/quote]
      Well said. This seems fair to me. Which is why P2P seems fair as well. As long as no one is making a profit off of someone else's work and everything stays completely non-commercial all is well.

      The moment, however, some slimball tries to make a profit from someone else's creativity, that's where the law should get involved in the form of lawsuits.

      --
      Quite an experience to live in fear, isn't it? That's what it is to be a slave.
    36. Re:Best Article Ever by Anonymous Coward · · Score: 0

      The DHCP of IP

    37. Re:Best Article Ever by the_quark · · Score: 1

      I'll agree my original statement was overbroad. I'll refine it, a bit: If a for-profit company copies a work "for the purposes of direct or indirect commercial advantage," it isn't fair use. Corporations do have limited fair use rights for stuff like reasonable backups.

      It is impossible for me to conceive how a for-profit company could copy the CDs to compress them, or copy them over the wire to shareholder (especially for the nickle Cringley proposes) and have their copying be fair use, even if the copy of the data itself is fair use (which it isn't).

    38. Re:Best Article Ever by the_quark · · Score: 1

      Most P2P solutions have a company at the middle trying to make money off it, and they've tended to get nuked for that reason.

      However, I neglected to mention that it's also quite clear as a matter of law that putting songs up for download even if you make no profit is also illegal. The RIAA is cracking down on individuals now, as well, and they have the right to do so under current law. They've been doing it for years to people who put up BBSs and FTP sites, and P2P is not so fundamentally different that the precedents in those cases won't apply.

      If you feel current law should be different, I encourage you to contact your congresspeople.

    39. Re:Best Article Ever by kaltkalt · · Score: 1

      Shareholders own the corporation, but not the corporation's assets and liabilities. The CDs would be corporate assets. This is like saying since you own a few shares of Microsoft stock, you can freely walk into MS WHQ in Redmond, WA and go stomp on Bill Gate's desk, because it is YOUR property. Go try it and see how "your" security guards treat you.

      --

      Stupid people make stupid things profitable.
    40. Re:Best Article Ever by 0111+1110 · · Score: 1

      the copyright holder probably has a good claim that the whole system is designed to facilitate infringment.

      And the same claim can be made against libraries. The RIAA is still working on that one I think. I love the "designed to facilitate" part. Lots of assumptions there. Profit is always more important than political freedom.

      --
      Quite an experience to live in fear, isn't it? That's what it is to be a slave.
    41. Re:Best Article Ever by Anonymous Coward · · Score: 0

      I had formed a corporation for my business and it didn't cost anywhere near $403.30. I live in MN, btw, and it cost me some filing fees of about $40 or so if I remember right. My partner filled out the paper work.

    42. Re:Best Article Ever by the_quark · · Score: 1

      Not wise, just spent several years fighting these issues from different sides.

      I've answered this a couple of times, but I think you'll have a lot of trouble getting a nonprofit funded well enough to actually do this. Even if you can, I doubt that a nonprofit incorporated largely to facilitate piracy could get away with it for long at any scale.

      Of course, at the end, you imply you'd get congress to pay for it, and if you can manage to get them to change the law, of course, anything I say here about what the law is doesn't apply. :)

    43. Re:Best Article Ever by shepd · · Score: 1

      >Even penny stocks have some listing requirements. They're just less than for the major exchanges.

      I had a good laugh at the last Costco magazine -- A bunch of regular morons invested in penny stock they had no clue about and, guess what, the company went bye-bye in no time at all without a trace, or their stock split, etc, etc. Boo-hoo they write to the magazine's editors. The editor didn't exactly have a lot of sympathy, let's say... His advice was that anyone investing in a stock on a penny stock exchange be 100% willing to burn that money. Protection provided to investors against all but the most egregious breaches of the law is minimal.

      That pretty much tells me the requirements for listing on a penny stock exchange are being able to get excel to generate a few numbers for you, and being able to email them to a secretary at the exchange.

      >Actually, if you, say, read the article, he suggests going public on the NASDAQ at $20/share. I was merely pointing out this was nontrivial.

      Ahhh, I see. Well, that's silly... However, barring the idea of listing on a popular stock exchange, it doesn't seem to be a problem, to me, anyways.

      I generally avoid reading the entirity of articles posted on slashdot -- they so often rarely reflect the truth that oftentimes it isn't worth the time clicking on them.

      >As for issuing shares in your still-private company to the massess: Selling unlicensed securities to unaccredited (read: not rich) investors will generally get you sent to jail for running a stock scam.

      Well, I decided to check the Securities Exchange Act of 1934 for the US, but jeez, you guys write using some unreadable english! I can't even get through the first page!

      In contrast, here's what would "protect" you if you did purchse my stock:

      I'm in compliance with Part VII if I get my accountant to record the sale of stock to you. Also, I'm incompliance with Part XI being that Part XII specifically exempts me:

      21. A trade made by an issuer with a view to the sale of securities of its own issue if solicitations are made to not more than fifty prospective purchasers resulting in sales to not more than twenty-five purchasers and,

      (... removed text that requires you to be sane -- feel free to read it yourself ...)

      Also, if that isn't good enough:

      2. An isolated trade by or on behalf of an issuer in a specific security of its own issue, for the issuer's account, or by or on behalf of an owner in a specific security, for the owner's account, where the trade is not made in the course of continued and successive transactions of a like nature, and is not made by a person or company whose usual business is trading in securities.

      I'd love to sell you one of my billion shares, if that's what it takes! But only one!

      I'd quote more, but suffice it to say, I'm generally expemted from the majority of the act if I keep my trading to a minimum.

      What would law you be able to sue me under assuming that the only offering from my company to you was the piece of toilet paper showing the amount of your freshly purchased stock?

      Would this "CD Company" be able to spend a few bucks to comply with the act? Most definately. I'm mean we're talking, what, at most, maybe $100,000 to get the ball rolling on a publically traded corporation (actually, I'm really hoping I'm overestimating that... does it take two full time employees to deal with pulically traded stocks -- that seems like some pretty extreme work)? That should be chump change for anyone who wants to get into a serious international business.

      Of course, this isn't legal advice. There's going to be mistakes, and I can already see one typo!

      --
      If you could be told what you can see or read, then it follows that you could be told what to say or think - BoC
    44. Re:Best Article Ever by 0111+1110 · · Score: 1

      Many P2P apps are open source sourceforge style projects that *nobody* makes a cent off of. There are some unfortunate exceptions (yes, including Kazaa), but the best programs (IMHO) are the non spyware infested non-commercial ones.

      As far as making songs available for download being illegal, you'll get no argument from me. I would only argue that it is morally OK. From my POV, half the laws currently on the books are unjust. So one more doesn't surprise me.

      --
      Quite an experience to live in fear, isn't it? That's what it is to be a slave.
    45. Re:Best Article Ever by BJH · · Score: 1

      One problem would be that the songs would need to be purchased separately, can't delete them from the original CD.

      Destroy the CD after ripping it.

    46. Re:Best Article Ever by cgenman · · Score: 1

      The combination of dry wit and knowledge is refreshing at this late hour. Thank you for the laugh, and the insight.

    47. Re:Best Article Ever by the_quark · · Score: 3, Insightful

      In fact, that's why Justin designed Gnutella the way he did - no company in the middle. I am of the opinion, however, that decentralized P2P will, long term, only be used for things that are illegal. It's inefficient by definition compared to a backbone network. Recent attempts to make distributed P2P be more like a backbone network come dangerously close to making the network attackable, I think. True anonymity (freenet) under the current Internet must be more expensive than traceability. As long as this is true, anonymous P2P will only be used for things where anonymity is more important than efficiency - i.e., for illegal things like piracy.

      But, once you get into morality I think the tradition in US copyright is that piracy isn't immoral (whatever the RIAA would tell you aside). The Constitution's enshrinement of intellectual property was controversial at the time and is entirely pragmatic: It is "for the advancement of the useful arts and sciences," not because copyright owners have some moral right to control their works. Tonight I've merely been discussing what the law is. I've made no assertions about what it should be.

    48. Re:Best Article Ever by Anonymous Coward · · Score: 0

      1. SEC requires a lot of accounting standards to be met for any "publically traded" company. Which does not include partnership or a privately held corporation.

      2. For going public, you need investmant banking endoresement. You can't just talk your way though that. There's a lot of work.

      (From a business school student.)

    49. Re:Best Article Ever by the_quark · · Score: 2, Informative

      Spooling down to the customer is not caching, it's copying. Even if you could design a system that read the CDs and held them in RAM permanantly and that met the legal definition of transient (which I doubt), your first download would be a copy and you've run afoul of copyright law, again. If you're "just" streaming, see the relevant section of the law on streaming.

      The closest thing US law has to a "library copy" for music is that nonprofits are allowed to lend music. For-profit companies are not. The cost of the music is the same. If you wish to negotiate a custom license from the copyright owner to allow sending it to all your shareholders, you may, of course, do that, but you can do that now and it doesn't take any novel ideas, just a fat wallet.

    50. Re:Best Article Ever by the_quark · · Score: 1

      Unfortunately, Digitial Phonorecord Deliveries carry no right of resale. I don't think this makes sense, but it's the law. If you buy a download, you can't then sell it to me, even if you delete the original. There is no first sale right for DPDs.

    51. Re:Best Article Ever by the_quark · · Score: 1

      *Applause*

      This is what so many technical people don't understand. The law is very hard to hack, because it isn't a computer program. It appears to be an algorithm, but the machine which interprets it isn't completely predictable, and it will try to take into account both the intent of the actors in the case and the lawmakers who wrote the laws. It's very hard to find a real loophole and exploit it.

    52. Re:Best Article Ever by Minna+Kirai · · Score: 1

      If a for-profit company copies a work "for the purposes of direct or indirect commercial advantage," it isn't fair use.

      Still wrong. The quantity of the material copied (as compared to the work as a whole) is enormously more important than the company's profit motive.

      A newspaper excerpting in a book review has no motive other than profit- but it's such a small section that fair use protects them.

      A college student hosting MP3s on his webserver is not making profit (in fact he's expending his own funds with no compensation), but his copying the work is completely illegal, because it's the whole work.

      The commerical/non-profit character of use will be a factor in the evaluation of any court, but it's drastically less important than the quantity and market effect of the use.

      It is impossible for me to conceive how a for-profit company could copy the CDs to compress them, or copy them over the wire to

      Cringley's proposal is nonsensical, but it would "work" just as well with a non-profit company.

      There is plainly no way an organization, profit or non-, may make numerous copies of a single work for the use of its employees, customers, or shareholders. This is well established.

    53. Re:Best Article Ever by BiggerIsBetter · · Score: 1

      2 questions about the first copy then - what if it was not copied, but streamed from a CD jukebox? What about the "fair use" option to make a backup copy, and what if after making that backup copy (to disk) the original was damaged? Wouldn't these be within the law? Ignoring the whole profit motive, that is.

      --
      Forget thrust, drag, lift and weight. Airplanes fly because of money.
    54. Re:Best Article Ever by the_quark · · Score: 1

      You are correct on all these points and clearly know the fair-use law better than I.

      However, I will note that you're not disagreeing with me that Cringley's on crack. :)

    55. Re:Best Article Ever by the_quark · · Score: 1

      IANAL, but I believe that music streamed from a CD jukebox would depend on the exact situation. One person at one time is probably OK, but multiple people at the same time would not be. Also, depending on the exact situation of the streaming, you may run into the interactive streaming laws, which are quite specific (and expensive).

      My understanding is that reasonable backup copies are fine. But more than a few and you're going to get in trouble, assuming anyone notices.

    56. Re:Best Article Ever by leviramsey · · Score: 1
      Unfortunately, Digitial Phonorecord Deliveries carry no right of resale. I don't think this makes sense, but it's the law. If you buy a download, you can't then sell it to me, even if you delete the original. There is no first sale right for DPDs.

      Try reading your own link. That is a report from an executive branch body which has no legal standing. It is fundamentally advisory in nature. To say that the law puts forth that there is no digital first-sale doctrine is inaccurate.

      However, it must be noted that the report from the Copyright Office would carry some weight in a court.

    57. Re:Best Article Ever by Dr_Cornholio · · Score: 1

      I love point 2 in your post. Perhaps not even making it a company, maybe a non-profit organisation that pays a technical and aquisition staff to maintain the organisation. Charities and other NPOs are able to purchase goods and services under the organisations name for taxation purposes, why not CDs if that is part of their operations?

      This is one of the most intersting columns that Cringely has written in a long time. It may be flawed, but it is definitely interesting. He may not be right all of the time, but he doesn't profess to be. Very good food for thought though.

      --
      In Soviet Russia, the monkey spanks you!
    58. Re:Best Article Ever by Anonymous Coward · · Score: 0

      Not only this, but Cringely has totally failed to take into account what happens to every signed artist, assuming his scheme works. They are now bound by contract to record albums for record companies which have no hope of making any profit from them. The record companies will no way release these artists from their contracts. The artists will not profit from their work. The entire music recording business will collapse.

      Course you might argue that this new corporation could fund musicians to make music, but (tellingly) Cringley doesn't even consider this area. All he wants to do is be a freeloading smart arse.

    59. Re:Best Article Ever by Dr_Cornholio · · Score: 2, Interesting

      Good call. Another analogy would be owning a share of Wal-Mart and attempting to help yourself to anything off the shelves. In Australia, it was big news when our largest grocery retailer, Coles-Myer offered discounts to shareholders to grocery items. This lasted about a month or two before the company decided they had too many shareholders and their profits started taking a dive. The more comments I read, the more it seems this idea could not possibly work. But a big thumbs up to Cringely for at least having a go. It's got to be the most well thought model to a major problem since the iTunes music store!

      --
      In Soviet Russia, the monkey spanks you!
    60. Re:Best Article Ever by majorflaw · · Score: 1

      Here's a Lawyer's opinion: Seems to me that a "subscription library" of music would make a lot more sense. Why unduly complicate things.

    61. Re:Best Article Ever by Anonymous Coward · · Score: 0

      CDs have always been licenced rather than sold.
      Same with movies. Does the text "This motion picture is licenced for private, non-comercial use only" ring a bell?

    62. Re:Best Article Ever by rguerra6584 · · Score: 1

      Why does everyone insist on setting up this company in the US? I'm sure a country like Cuba would love to host this if only to stick it to the "capitalist pigs".

    63. Re:Best Article Ever by rokzy · · Score: 1

      AFAIK (IANAL), in UK at least, you cannot be held to terms and conditions based on a "by opening this box you accept the terms and conditions inside" sticker.

      of course they could stick all the terms and conditions on the outside, but who'd buy a CD that had a legal contract (with a list of what you're not allowed to do with it) instead of artwork and tracklists?

    64. Re:Best Article Ever by jjr1 · · Score: 1

      What about settting up a non-profit and a regular company? The regular company sells the non-profit the cds, and the non-profit lends it out sort of the way a library does with the users paying shipping + administration. I'd compare it to NetFlix and avoid the problem that for profit lending of cds is illegal. Meanwhile, the distributor has enough of a markup on the cds that they can make a substantial profit at the same time. Does anyone else think there is a way this could work?

      --
      Best Trivia answer ever... Name the largest aquatic man eater... Contestant: Tsunami
    65. Re:Best Article Ever by WolfWithoutAClause · · Score: 1
      Yes, but is viewing a web page violating the copyright on the web page? It is not. Neither is copying the information from RAM and displaying it on the screen. IF the data doesn't get held on harddisk then I think you have a fairly persuasive argument that you are merely cacheing the data at the user- but you would need to do reasonable efforts to ensure that the user can't keep the music- they are only renting it for a short while.

      The closest thing US law has to a "library copy" for music is that nonprofits are allowed to lend music.

      Ok, perhaps the term 'library' doesn't capture quite what I mean. Think video store- the video store buys a copy and gets first purchaser rights; and can then hire it out multiple times but only once per copy at a time.

      --

      -WolfWithoutAClause

      "Gravity is only a theory, not a fact!"
    66. Re:Best Article Ever by Anonymous Coward · · Score: 0

      Sounds like MP3.com would of needed 300,000 cd readers constantly streaming all the songs out to the internet...

      and some software willing to catch the streams to have been legal

    67. Re:Best Article Ever by benzapp · · Score: 1

      notice the word "co-op"

      I suggest you read up on cooperative apartments, as this system is more akin to that. Specifically, look at how common areas are owned by all the shareholders of the company.

      First, he handwaves about going public at $20/share. Maybe in 1999, pal, but not now. You can't just decide to do it, there are significant capitalization requirements, to say nothing of the money the bankers will want for doing the work for you.

      Pray tell, how can you possibly figure out the capitalization requirements from this article. The corporation DOESN'T have to be public. In fact, in this case having it be public is probably not a good idea...

      and by definition everything a corporation does is for profit)

      What about a non-profit corporation? Or better yet, what about co-operative housing???

      Second, and perhaps more importantly, the traditional test of fair use is, "would it replace a sale?" This clearly would

      Come the fuck on jack. Is this logic applied to a co-op apartment? No. Is selling a share in a co-op replacing the sale of the fee simple? Yes. Does that make it de facto fee simple property? No, absolutely not.

      The shareholders can decide to do with their collectively owned property whatever they wish.

      --
      I don't read or respond to AC posts
    68. Re:Best Article Ever by troyboy · · Score: 3, Informative

      I agree that Cringely's fair use analysis is incorrect. A corporation's ownership of a work does not give rise to the ability to make unlimited copies for use by the corporation. For example, in American Geophysical Union v. Texaco, Inc., 60 F.3d 913 (2d Cir. 1995), the Court of Appeals for the Second Circuit held that it was not fair use for a company to make copies of a journal article for reference by company scientists. The court held that Texaco would have to either get a special license or otherwise purchase a copy for each employee. Why would the shareholders of Snapster have any additional rights to make unlimited copies?

    69. Re:Best Article Ever by CleverFox · · Score: 1

      What would be interesting however, is if they charged 10 cents per song each shareholder generously decided to act as a backup factility for, and donated 5 of those cents to a trust fund for the artist.

      Artists would almost overnight have millions of dollars in their trust fund. Ten million people downloading the latest hot album * 50 cents per album would be $5 million dollars. And the record companies would not be able to use 'you are killing the artist' argument.

      Right now the artist is lucky to get fifty cents per album. If you lower the price of an album to $1 to $1.50, and distribute it online, you end up with the artist still getting .50 per album and selling many more copies at the cheaper price. People could burn their own cd's from the digital music.

      This IS the business model of the future. It may take us twenty years to get there, but it will happen.

    70. Re:Best Article Ever by Mr.Sharpy · · Score: 1

      The idea that this model would function on the basis of the doctrine of fair use is just plain wrong. If something like what Cringely proposes were to actually work, it would actually be working on the principles of corporate ownership. If you owned shares in such a corporation, publicly traded or not, you would own a share of all of the assets of that company. So, in theory, if the corporation purchases 10,000 albums, you own a share of those assets.

      Had the MP3.com members been buying shares in the company, they might have had a right to the music MP3.com owned. To be sure, it's questionable legal ground.

      Barring some sort of fundamental change in coroporate ownership law, I can't see that there would be any way around what Cringely proposed. License agreemnents on the music might help, but that would be shaky ground for the RIAA. I really hope someone tries to implement this idea, just to see what happens.

      Also, I'm glad that this concept has had a public airing so it doesn't get patented by Evil Corporation X. Not that prior art has ever stopped the Patent Office from doling out stupid patents.

    71. Re:Best Article Ever by Lt+Razak · · Score: 1
      The NET ACT, is specifically worded so that "for profit" is defined as "expecting other copyrighted items in return".

      Thus trading is considered "for profit" and is illegal. The DOJ interview yesterday even mentioned this, while defining what they look for, when deciding if an act is considered for Criminal Cases, or just Civil Suits.

    72. Re:Best Article Ever by Lt+Razak · · Score: 1

      If it was streamed, wouldn't it fall under Internet Radio laws? If so, then we're talking about a serious expense, considering you have ot pay $0.XX per listener... Plus you aren't allowed to let the user pick what they want to listen to.

    73. Re:Best Article Ever by Lt+Razak · · Score: 1
      Yes, but is viewing a web page violating the copyright on the web page? It is not.

      What are you talking about?? The people that own the copyright to their web pages (for example, a news website) OWN the copyright to the information on their web page, and allowed to do what they want with it. --in this case allow readers like you to read it.

      And *you* would not be allowed to make your own web page copying that info, to display to others.

    74. Re:Best Article Ever by geekoid · · Score: 1

      They could if they owned the rights to that book.

      that is what he is tlaking about. You buy an albums rights, then you can distribute it however you like.

      You could grant a lisenecs that ONLY permits shareholders to have a copy.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    75. Re:Best Article Ever by Anonymous Coward · · Score: 0

      You mean in the US it is illegal for me to listen to several copies of one CD at the same time?

    76. Re:Best Article Ever by Anonymous Coward · · Score: 0

      But how do you print on toilet paper? It jams up every printer I try it in.

    77. Re:Best Article Ever by the_quark · · Score: 1

      There are other laws governing "streaming" of music, setting down how much you have to pay, etc. I don't think you're going to get very far by trying to claim that you were just "caching" it there but it wasn't a stream. The law and the courts just aren't that stupid. It's not some broken algorithm you can hack like this, there are real people who will look at what you did, try to determine your intent, and judge you accordingly.

      What the video store does isn't illegal because it's a video. If you tried to do the same thing with a CD-rental store, it'd be illegal, because it is specifically made illegal to rent music in the US for profit. Period. There is a specific law that makes it that way. And anything you do that looks or smells like renting or loaning of music for profit is going to violate that law.

      What I think you don't understand is that there is not just some generalized copyright law which sets up incentives and penalties. This is a horrid patchwork of definitions and patterns of interest which specifically defines what you have to pay for and when and what you may and may not do with different types of content. And the rules are one thing for videos and another for music and a third for web pages. Analogizing between them when you haven't read the law isn't going to get anywhere. If you really want to sit down and read the requisite law, it's not totally inconceivable that you'll find a path through the rocks no one noticed, before, but there were a lot of really bright people who tried to keep there from being a path, and the courts will, to a certain extent, interpret the law according to their intent. Which was that you not be able to make money from copying music without paying the copyright owner. And that's not a modern, DMCA-invention, there have been cases on this very topic for a hundred years, and it is very clear that you May Not Copy Music For Money Without Paying The Copyright Owner.

    78. Re:Best Article Ever by the_quark · · Score: 1

      Pray tell, how can you possibly figure out the capitalization requirements from this article. The corporation DOESN'T have to be public. In fact, in this case having it be public is probably not a good idea...

      In the article, were you to actually read it, he describes going public on the NASDAQ for $20/share. Assuming he means the NASDAQ National Market, that requires the company to have, among other things, $1 million in profits last year or $75 million in assets. Regardless of what his business is, that's the NASD requirement. Going public these days is Hard, even if you have a profitable business. The business he describes is not profitable until after it is public.

      I was under the impression we were discussing the business Mr. Cringley described in his article. If you wish to describe a different business, we can talk.

      What about a non-profit corporation?

      Again, I thought we were speaking of Cringley's described company, which he clearly wishes to list on the NASDAQ. If you are aware of any nonprofit companies listed on the NASDAQ, I'd love to see their symbols. Public companies are for-profit entities, thus, the presumption in law is that they do what they do for profit. Yes, private, nonprofit companies don't do things for profit, but that's not what we were discussing, here. I'll head you off before you suggest a nonprofit to do this: 1) I'm not clear you can issue shares in a nonprofit. 2) If you put together a nonprofit clearly and only to engage in piracy, I'm pretty sure the courts would see through it and bust you anyway. 3) Even if they didn't, congress would change the law and the net effect would be that you'd eliminate CDs from libraries.

      Come the fuck on jack. Is this logic applied to a co-op apartment? No.

      Were we talking about co-op apartments? No, we were talking about US music copyright law, which has quite different rules governing it than the rules governing cooperative rental of apartments. One of the standard tests in US copyright law for if an action is fair use is "the effect of the use upon the potential market for or value of the copyrighted work." Which is usually translated into non-lawyerese as, "would it replace a sale?" or, in other words, "would you normally need to buy it to do this?" Another important factor to weigh is "whether such use is of a commercial nature," which this clearly is. Mr. Cringley's business, as described, is a clear violation of the law. If you wish to describe another business, I'll listen.

      The shareholders can decide to do with their collectively owned property whatever they wish.

      As long as they don't break the law with it. Copying it 60 million times and distributing it to the shareholders would be a clear violation of the law, because it is clearly not "fair use." Since the company he describes is a for-profit entity, the presumption would be that it engaged in such copying for profit, and it would therefor need a licensing agreement with the copyright holders. This is exactly what mp3.com got slapped with on its "Beam It" service.

    79. Re:Best Article Ever by the_quark · · Score: 1

      Had the MP3.com members been buying shares in the company, they might have had a right to the music MP3.com owned.

      This is a common misconception about the mp3.com case. Mp3.com did not get in trouble for streaming music to people. It never even got that far. The courts did not address the question of whether that was fair use.

      What the courts did look at was, "did mp3.com copy 300,000 CDs to compress them to set the service up?" Mp3.com said, "sure, we did, but that was fair use." The Judge said, "Nice try. You're a for-profit corporation, so whatevever you do is for profit. You copied those CDs because you thought it'd make you money, and to do that, you need a license." This is all very clear in copyright law - a for profit company may not copy a whole work for anything other than backup purposes without paying the copyright holder.

      Even if Cringley's novel theory of group ownership works (which I think it doesn't), it's irellevant. The company copies 100,000 CDs to start with and then charges $.05 for every copy after that. Copyright law is crystal clear that you need to have a license to do that, even if the copies you're making would otherwise be "fair use" (which, as I said, these aren't, anyway).

    80. Re:Best Article Ever by darien · · Score: 1

      Base it in France. Hell, they'd probably give you a government grant.

    81. Re:Best Article Ever by Anonymous Coward · · Score: 0

      >As long as this is true, anonymous P2P will only be used for things where anonymity is more important than efficiency - i.e., for illegal things like piracy.

      It's not good to assume people only want to be anonymous because they're doing bad things.

      What about political dissidents (I guess it's still illegal in that case, but many I think would say providing a channel for the oppressed to exchange info would go in the 'good thing' category)?

    82. Re:Best Article Ever by nanojath · · Score: 1
      Very well said. This seems to be Cringely's primary misunderstanding - the law is not some word game logic puzzle but a set of (often vague) guidelines that are interpreted by people - some smart, some not so smart, good or bad or ugly - but eventually the system will nix this kind of thing. This one, though, is such an egregious violation of copyright law so far outside the provisions of fair use it would never see the light of day. It would start getting sued to smithereens as soon as it went public and I doubt it would even merit an appeal.


      As you note, the personal copies and format-shifting things are defined by precedent, not codified in the actual law. The reason they are allowed is they fit on the balance within the fair use guidelines - they are not commercial, and not likely to affect the market of the items themselves (because you have already bought your copy). I'm sort of surprised anyone believes this could remotely work.

      --

      It Is the Nature of Information to Transgress Artificial Boundaries

    83. Re:Best Article Ever by DDX_2002 · · Score: 1
      You've got to be kidding. Okay, IANAL when it comes to US securities laws or IP, but I've gotta say, I don't think you need to be to see that this is nuts.

      Sure, you or I or anybody can incorporate a company dirt cheap... but what you can't do is offer the shares in that company to the public, not without complying with securities laws, and if the company isn't public and widely traded, the entire business model collapses. The transaction costs of a prospectus and other docs are non-trivial, and the usual exemptions for penny stocks contemplate sophisticated investors. Here, by definition you want to be selling to 14 year olds. Which brings up the problem of how you contract to sell securities to minors, but I digress. The cost of being a public company is anything but "minimal" or "free". Have a look at the average 10SB sometime and then figure out what it cost them to put that together, and then to file the regular updates. And the costs of tracking shareholders are far from minimal when you're selling probably one (and only one) share to every college student in america, and your whole legal plan is making sure they have that share and don't sell it. Oh yeah, and having DRM to auto-delete the music if they trade their stock. That'll be fun code to write.

      The handwaving he does about stock splitting is also appallingly clueless about real world economic issues. Here's a hint: splitting 100,000 shares at $20 into 200,000 at $10 doesn't magically create income for ANYONE, Bob. Unless there's some sort of buying frenzy going on driving up the price, this isn't going to make you any money. If there IS such a buying frenzy, why the F@#! wouldn't you issue more shares from treasury and capture some more of that cash for the company's purposes? The Cringely plan means that the company better not need more than $2M in capital EVER, as it involves a single offering and then endless dilution. That cashflow better be rock solid, Bob.

      We won't even get into the ludicrous fair-use interpretation. There's not a hope in hell any court would find that scheme legal. First off, it's transparently a copyright infringement scheme. You're making *multiple copies* of each of those million CDs, and FOR MONEY giving those copies to your shareholders. Ask bootleggers of M$ products how well incorporation of the company doing the copying helped them stay out of jail/the poorhouse.

      Making everybody a shareholder is laughable. So what? Shareholders DO NOT own the assets of the company - they own the residual rights to the assets of the company. You cannot buy a share of M$, walk into Bill G's office, check out his stuff and then say you're exchanging your share certificate for his stapler. All your share entitles you to are dividends and to a pro rata share of the assets if/when the company is wound up BUT NOT BEFORE then.

      The article was entertainingly stupid.

      --
      MHO. YMMV. Any resemblance between this post and real persons, or reality in general, was accidental.
  3. I can see it now... by trudyscousin · · Score: 5, Funny

    ...the retail price of a CD jumps from $18.99 to $1899.

    --
    Those who can, do. Those who can't, write technology blogs.
    1. Re:I can see it now... by descil · · Score: 1

      That's only 100 times as costly. If you have, say, ten million shareholders in your company, you could buy, say, 100,000 CDs for only $1.90 per person, assuming the RIAA didn't find a loophole and make your company very quickly go bankrupt.

      I think Cringely just wants this idea because he knows he could buy in and then sell out two days later.

    2. Re:I can see it now... by Alsee · · Score: 1

      the retail price of a CD jumps from $18.99 to $1899.

      Actually it that makes perfect sense for prices to go far higher assuming everything goes exactly as Cringly describes and Snapster completely displaced the RIAA.

      With the RIAA gone and Snapster being essentially the only music company they would then want to buy more music. They would pay little or nothing for a CD from some unknown garage band, but once a there is any proven intrest at all for the band Snapster would be willing to pay $1,899 for a single CD. If the band is has small following Snapster could pay $18,990. Minor stars can get $189,900 and a few superstars could get $1,899,000 for that one CD.

      It's a facinating idea, and it could sucessfully replace the existing music business model and get artists paid (if they are any good).

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
  4. Why not? by hedronist · · Score: 1

    Admittedly, I would want to see a Whole Bunch Of Lawyers(tm) try to rip the idea in to little tiny pieces. But, if they can't easily find a way to sink it, then why the hell not?

    I am eargerly waiting to send in my $20 check!

    1. Re:Why not? by schmink182 · · Score: 1
      I am eargerly waiting to send in my $20 check!

      I'm still waiting to recieve my $20 check (or however much it ended up at) from the RIAA because of their illegal price-fixing. This would be a nice thing to spend it on, don't you think?

  5. Sales by MetalHead666 · · Score: 2, Interesting

    Interesting, but probably too hard to implement seriously (especially considering the possibilities of legal battles moving to that arena if a share holder shares his/her copy with an unlicensed person). Another aspect is that it would probably hurt sales, if the large companies buy all albums their shareholders are interested in (and take some form of payment from the people, naturally, for the service), then when an artist makes a new album they will know exactly how many copies it will sell, because there are only 4350 companies with shareholders interested in their music...

    --

    "If you go to the next town, going across a desert is a shorter way." - Pu-Li-Ru-La (Taito)
  6. Uh no. by glrotate · · Score: 3, Insightful

    I think most dl'ers are just going to continue stealing it.

    1. Re:Uh no. by Trelane,+the+Squire · · Score: 1
      umm... the point is this could be a way to strike down the riaa legally, and get $.50 songs. The RIAA is going to scare most illegal sharers off the net if their strategy works, then where will you be?

      not to mention, of course, that your way is illegal.

    2. Re:Uh no. by skajake · · Score: 2, Interesting
      You mean"

      "I think most dl'ers are just going to continue 'copyright infringement'"

      --

      ~ Maintainer of the Skajake Projects

    3. Re:Uh no. by Anonymous Coward · · Score: 0

      .50 cent *CDs*

    4. Re:Uh no. by Anonymous Coward · · Score: 0

      I think *you* mean

      "Most people are going to continue to try to get something for free that wasn't free for the person who produced it to make and their reason for doing so is not some idiotic idea of "information freedom" but pure, simple, base greed."

    5. Re:Uh no. by Anonymous Coward · · Score: 0

      YOU FAIL AT TEH SIG!!! SO HARDCORE IS YOUR FAILURE OMG DIE NOW KTHANXBYE!!!!

      Lameness filter encountered. Post aborted!

      Reason: Don't use so many caps. It's like YELLING
      Lameness filter encountered. Post aborted!

      Reason: Don't use so many caps. It's like YELLING
      Lameness filter encountered. Post aborted!

      Reason: Don't use so many caps. It's like YELLING

  7. The only problem is..... by Anonymous Coward · · Score: 0

    According to the RIAA anything that's not illegal is you buying an overpriced CD, not reproducing it, and only you listening it. :p

    1. Re:The only problem is..... by Trelane,+the+Squire · · Score: 1
      sad but true. I wouldn't be surprised to eventually see the riaa do like game consoles and come out with their own 'CD' player: the RiaalPlayer. ;) just like gaming consoles, you'd have to be licensed, or something similar to create media for it.

      let's hope a media mogul doesn't read this and actually try it

  8. one word: my.mp3.com by interiot · · Score: 5, Informative

    Didn't my.mp3.com get in trouble even though they owned one CD of all the albums they were electronically distributing? And the judge still declared that illegal...

  9. public domain? by domovoi · · Score: 1

    And how long would Snapster hold copyright? Same as the RIAA/MPAA? The bigger issue, for me, is to see these things released to the public domain after a reasonable time (here, death+70 is not reasonable). Sure, it'd be great to have legal access to these under whatever conditions--no argument there. I'm thinking long term, though.

    Nothing about this proposal would change the SOP: the Disneys of the world snarfing up and then essentially blackholing characters, songs, lyrics and the like. That's the biggest problem that exists now, imo, and while this proposal is interesting, it does nothing to address the problem.

  10. Let me get this straght... by FosterKanig · · Score: 1

    If I own stock in a company that owns the rights to, or I don't know, KFC's chicken, I have the right to that recipe? If they want to give that info out?

    1. Re:Let me get this straght... by LostCluster · · Score: 2, Insightful

      If I own stock in a company that owns the rights to, or I don't know, KFC's chicken, I have the right to that recipe? If they want to give that info out?

      The thing is, you become a part of the "they". If 51% of the shares are voted to do something, then it is so. So, if you ever get 51% of the company, it's your call and yours alone. (And, at that point you get to stack the board of directors with people who agree with you...) If a bunch of people who agree with you combine to make 51%, that works too.

      Cringley's company of course would have that trap door. As a publicly traded company, they'd always be subject to a hostile takeover by the pro-RIAA interests...

    2. Re:Let me get this straght... by Minderbinder106 · · Score: 1

      Now I can find the secret addictive chemical that makes me crave it fortnightly, smartass! I hate the colonel with his wee beedy eyes and his smug grin, ooooh you're going to eat my chicken.

    3. Re:Let me get this straght... by TroZ · · Score: 1
      As a publicly traded company, they'd always be subject to a hostile takeover by the pro-RIAA interests...

      Except that he said that the IPO would only be 10% of the stock and further shares comming from splits, the RIAA could only ever get 10% of the company.

    4. Re:Let me get this straght... by Lord+Kholdan · · Score: 1

      As a publicly traded company, they'd always be subject to a hostile takeover by the pro-RIAA interests...

      Let's have a gentlemans treate, buy at 20, sell at 30. After takeover star new company. repeat. Instant profit.

  11. CleanFilms avoids MPAA this way already.. by doowy · · Score: 5, Interesting
    CleanFilms.com and others like it lost-out when MPAA said it was illegal for them to edit the copyrighted material and distribute it (by rental or sale) to 'customers'. They've since operated by not 'distributing to customers' but by 'sharing with co-owners'.

    Essentially they operate as a co-operative. On the surface, it is the same as paying a membership fee - but on paper it is a different story (i.e. Snapster would be just like Napster on the surface, but largely different on paper).

    Here's a snip from their about page:

    is it legal to edit movies?
    Yes. CleanFilms is a Co-operative rental club. All subscribers to our service become members of the Co-op. The Co-op collectively purchases original, unedited DVD movies then has them edited - always maintaining a 1 to 1 ratio of edited and non-edited originals.

    As owners of the original, unedited movies, the Co-op has the right to edit out content that is objectionable to its members - similar to how you might press mute to avoid hearing objectionable language today. Accordingly, you must subscribe as a member of the rental club before you can rent edited movies.
    --
    ..mork
    1. Re:CleanFilms avoids MPAA this way already.. by ejort79 · · Score: 1

      But to maintain a 1 to 1 ratio, you'd need to buy a copy of a cd for every song currently held by your members. So unless you were streaming, and locked everyone else out while you were listening, that model doesn't work here. And if you were streaming, you'd want a smaller ,rather than larger number of shareholders. Or hope you all have very diverse tastes in music.

      --
      The Internet couldn't tell a good bit from a bad bit if it bit it on its naughty bits.
    2. Re:CleanFilms avoids MPAA this way already.. by Anonymous Coward · · Score: 0

      You also notice that CleanFilms isn't distributing rental copies of the original DVD - they're distributing copies of their edited DVD - a customized version which could be argued is of lesser quality than the original due to the edits.

      In order for an CD-based scheme to be comparable to CleanEdit, you'd need to buy a CD, then edit it in some way to make it a custom version, then distribute the customized version. Now, how will you do that - edit the songs themselves, edit the number of tracks on the disk, ?...

    3. Re:CleanFilms avoids MPAA this way already.. by Minna+Kirai · · Score: 3, Insightful

      The critical difference between CleanFilms and Cringley's stupid idea is that CleanFilms has that 1 to 1 ratio thing going.

      For each movie they give to a customer/"co-owner", they've purchased one DVD from the publisher.

      Cringley's plan is to somehow achieve a 1:200000 ratio. Buy one copy of each CD, and somehow let multiple shareholders play several of them at the same time.

      That's just illegal. One entity (single person, or a corporation) is allowed to buy a CD and make backup copies. But if you play more than 1 of those at a time, you're breaking the law- because playing it isn't a "backup" use.

      Cringley's idea is as dumb as suggesting Merril Lynch can buy one copy of Microsoft(tm) Windows XP(r) and install it on 9000 PCs, because they're all property of 1 corporation.

    4. Re:CleanFilms avoids MPAA this way already.. by richieb · · Score: 1
      Cringley's idea is as dumb as suggesting Merril Lynch can buy one copy of Microsoft(tm) Windows XP(r) and install it on 9000 PCs, because they're all property of 1 corporation.

      It's not as dumb as you think. Merril Lynch can buy one copy of Red Hat and install it on 9000 PCs and that's quite legal.

      The problem is that to preserve old business models people are trying to introduce various measures (technical and legal) to make digital files act like physical goods.

      If someone can come up with a business model that takes advantage of the ease with which digital data are copied he/she will be the next Bill G.

      --
      ...richie - It is a good day to code.
    5. Re:CleanFilms avoids MPAA this way already.. by salesgeek · · Score: 1

      Actually this is different. If you dl from Cringly's service, a new copy is created. CleanFilms actually buys, edits then rents. It does not copy.

      --
      -- $G
  12. It's been done by El · · Score: 4, Insightful

    They already have a public corporation that allows many users to share ownership of a copyrighted work. It's called a "library".

    --

    "Freedom means freedom for everybody" -- Dick Cheney

    1. Re:It's been done by NeoSkandranon · · Score: 2, Insightful

      I never paid to get into a library. Nor do i have the illusion that I own anything inside of one. Being able to borrow books to read is different than everyone being entitled to a free copy. Namely, in that in a library there is STILL only X number of books, so *everyone* still can't have one

      --
      If you can't see the value in jet powered ants you should turn in your nerd card. - Dunbal (464142)
    2. Re:It's been done by tomstdenis · · Score: 1

      Um not really. A library cannot just print a dozen copies of a book just because it bought one copy.

      What this dude is proposing is a company buys the *rights* to the music, then lets the shareholders listen to it.

      The problem is, the rights to a single song may range from 1000$ for a small band to 100,000$ or more.

      So exactly how is this company going to afford to buy even say 40% of all music published each year?

      Tom

      --
      Someday, I'll have a real sig.
    3. Re:It's been done by KRL · · Score: 2, Interesting

      Yeah right... do a little digging in the past and find how many book publishers have tried to close librarys down. The only reason they haven't is because librarys are a fairly sacred institution.

      Try doing this with a publicly traded company and you'll be crucified by the copyright holders.

    4. Re:It's been done by pestilence4hr · · Score: 1, Informative

      It's called a "library".

      You can't legally copy entire works from the library, you can only use the original and return it. But nice try.

      If you are in need of confirmation of this, try going into a music library and, in front of the clerk, photocopy a symphony. I guarantee you will be stopped.

    5. Re:It's been done by El · · Score: 5, Interesting
      I never paid to get into a library.


      You've never paid taxes, part of which go to fund libraries? Or you've never gotten a library card, which usually has a nominal fee? Gee, if nobody pays for libraries, I wonder where they get the money to build them, staff them, and fill them with copyrighted material...

      --

      "Freedom means freedom for everybody" -- Dick Cheney

    6. Re:It's been done by Anonymous Coward · · Score: 0

      You never directly paid to borrow from a public library. However, you try borrowing from a private library (e.g. a university library) if you're not authorised/paid up.

    7. Re:It's been done by pestilence4hr · · Score: 0

      I never paid to get into a library.

      Forwarded to evasion@irs.gov.

    8. Re:It's been done by Nucleon500 · · Score: 1

      That's just because it's hard to copy books. Libraries (at least mine) have CDs too, so everyone can have one. (Not legal, but still...)

    9. Re:It's been done by doorbot.com · · Score: 1

      Gee, if nobody pays for libraries, I wonder where they get the money to build them, staff them, and fill them with copyrighted material...

      <sarcasm>
      That's easy... if I don't pay for it, the government pays for it!
      </sarcasm>

    10. Re:It's been done by usotsuki · · Score: 1

      Or you've never gotten a library card, which usually has a nominal fee?

      You must be shitting me.

      I have had cards for the local public library network for 8 years and only had to pay if I lost the card.

      -uso.

      --
      Dreams, dreams, don't doubt dreams, dreaming children's dreaming dreams. Sailor Moon SS
    11. Re:It's been done by muzzmac · · Score: 1

      Sad that the original silly comment gets +5 and you will likely get no mod points when you are actually correct. :-)

    12. Re:It's been done by evilWurst · · Score: 1

      Monetary donations into a trust fund, book donations, volunteer time, late fees. Traditionally, libraries were not funded by the government. They were put together by people who love books.

    13. Re:It's been done by Anonymous Coward · · Score: 0

      And a lot of us check CDs out of the library and copy them.

      "Hmmm, I'd better go buy another cakebox of CDR disks." Compression be damned, I'm just copying it bit by bit.

    14. Re:It's been done by kfg · · Score: 2, Informative

      There's another reason. Libraries taken in total buy a lot of books and magazines. In some genres library sales actually constitute the majority.

      Large publishing houses have a real love/hate relationship with libraries, on the one hand marketing to them heavily and on the other wishing they'd dry up and blow away.

      Small publishers love the shit out of them, some of them making a living doing nothing but marketing to libraries.

      KFG

    15. Re:It's been done by tintruder · · Score: 1
      Ever see the photocopiers in the libraries?


      Just like Cringely's download fee schedule, I think!!!

    16. Re:It's been done by Robotech_Master · · Score: 1

      My local county public library system has a membership fee for anyone who lives outside the county line (and thus doesn't contribute via taxes to its upkeep).

      --
      Editor Emeritus and Senior Writer, TeleRead.org
    17. Re:It's been done by utdpenguin · · Score: 1

      Not exactly.
      Most of those copier will have a warning ont hem saying something to the effect of "copy material at your own risk." It is legla to caopy small portions (e.g. excerpt) but not to copy compeltely many of hte things you will find in your library. You can, however leglay make copies of some of it. The copy machines allow you to do so. And if you use them illeglay that is not the library's fault.
      Wish it worked that way for ISPs! :)

      --
      In Soviet Russia you dant have to put up with these crappy jokes
    18. Re:It's been done by usotsuki · · Score: 1

      Makes sense. But I lived in the area. (I don't pay taxes tho as I rent)

      -uso.

      --
      Dreams, dreams, don't doubt dreams, dreaming children's dreaming dreams. Sailor Moon SS
    19. Re:It's been done by KoalaBear33 · · Score: 1

      (I don't pay taxes tho as I rent)

      Property taxes are "factored" into the price of rent. You may not pay for it directly but you are paying. It's similar to how you pay for the roads via a gasoline tax (at least in Canada; I think the gasoline tax does't cover all of the costs so people pay via income/sales taxes too I think). You don't pay directly for the roads but you pay indirectly.

      KoalaBear33

      --
      ......The worst thing in my life happened when the stock market started mattering more than the economy
    20. Re:It's been done by batura · · Score: 1

      A million people don't use the same library book at the same time though.

    21. Re:It's been done by Anonymous Coward · · Score: 0

      A million people don't use the same library book at the same time though.

      Yes they do. That's why there are photocopiers all over the place in public libraries. For copying and 'simultaenous' use of a resource.

    22. Re:It's been done by Anonymous Coward · · Score: 0

      The guy that you're renting from has to pay property taxes, and can you guess where that money comes from? That's right! You!

      Seriously, it just takes an extra step.

    23. Re:It's been done by radish · · Score: 1

      Do you not earn any income either? Or ever buy anything? I think you do pay taxes.

      --

      ---- Den ene knappen er powerknapp, den andre er Bender voice knapp "Bite My Shiny Metal Ass"

    24. Re:It's been done by ars · · Score: 1
      Of course you pay taxes. It just that you pay them to the landlord and he forwards them to the gov.

      The rental price includes the landlords expenses, and taxes is one of those.

      --
      -Ariel
    25. Re:It's been done by usotsuki · · Score: 1

      I mean directly paying property taxes...of course...

      -uso.

      --
      Dreams, dreams, don't doubt dreams, dreaming children's dreaming dreams. Sailor Moon SS
    26. Re:It's been done by NeoSkandranon · · Score: 1

      all the libraries i have experience with dont have a nominal fee.

      --
      If you can't see the value in jet powered ants you should turn in your nerd card. - Dunbal (464142)
    27. Re:It's been done by ShadowcatBlue · · Score: 1

      Actually, I think a check-in/check-out system for having members listen to music would work. MIT already has a beta version of this called LAMP (Library Access to Music Project) that's been pretty good. If only they'd get more CDs.

      I think the thing that would make something like this less legally sketchy is if the number of people playing a particulary song/album is equal to the number of copies owned by the organization. I.e. the "company" would have to buy more copies of the popular stuff, but only 1-2 of the obscure stuff. If they only have 10 copies of your favorie album and 10 people are currently listening to it, you're out of luck.

    28. Re:It's been done by jandrese · · Score: 1

      What difference does that make?

      --

      I read the internet for the articles.
  13. Even better solution by Sick+Boy · · Score: 1

    How about some enterprising cracker writes a virus that spreads out and shares the mp3 files of the victims. Keep the client to surf this network seperate.

    You don't get control of how much bandwidth and files you share, but you get plausable deniability. Hey, it's a virus - and your virus checker was just out of date. Shucks.

    --
    Does narcissism count as a hobby? --Shawn Latimer
  14. I think the problem is... by edog1203 · · Score: 2, Interesting

    Some services such as ConsoleClassix allow users to join a co-op for the purposes of playing classic video game ROMs... but only one copy can be played by a user at once for each copy of the game the co-op owns.

    Therein lies the problem with Cringely's proposal. If I split the cost of a $20 CD with a friend (or a million friends), we can both listen to it, just not at the same time (legally).

    Right?

    1. Re:I think the problem is... by ThatDamnMurphyGuy · · Score: 1

      we can both listen to it, just not at the same time (legally).


      Wha? That's like saying headphone jack splitters are illegal. I can't listen to my cd in my car with someone else there, regardless of if they are a co-owner or not? Of course not. That would never fly in court.

      So, fair use would be me being allowed to play a song in the company of others when they don't own the CD? Good.

      OK, now we're 10 feet apart with a long headphone cable.

      OK, now we're 5 miles apart using a CAT5 cable (and only THAT person can listen. Not everyone on the net)?

      What's the diff?

    2. Re:I think the problem is... by meta-monkey · · Score: 2, Insightful

      Scale. Your fallacy is called the Argument Of The Beard. You assume that two ends of a spectrum are the same, since you can travel along the spectrum in very small steps. For example, being clean shaven must be the same as having a big beard, because if you pluck one hair out of a big beard, you still have a big beard. Also, all piles of stones must be small, because if you add one stone to a small pile of stones, you still have a small pile of stones.

      Using headphone jack splitters with a friend sitting next to you is not the same as making a copy of a song with a complete stranger on another continent, even though the two are connected by small steps.

      --
      We don't have a state-run media we have a media-run state.
    3. Re:I think the problem is... by ThatDamnMurphyGuy · · Score: 1

      Using headphone jack splitters with a friend sitting next to you is not the same as making a copy of a song with a complete stranger on another continent, even though the two are connected by small steps.

      Good point, but I didn't say anything about about any copy being made. Sharing doesn't automatically mean someone is making a copy. Then there's streaming. Is streaming the same as webcasting if it only involves a single sender and a single receiver?

    4. Re:I think the problem is... by meta-monkey · · Score: 2, Insightful

      I suppose that might be all right, but that's not what this article is about. They're talking about copying, and multiple people being able to listen to the music at the same time.

      If we're splitting hairs, though, even with streaming there's still a copy being made. The song will be buffered by the receiver. It may be deleted once the song is played, but it's still a copy. I'm not sure what the lawyers would make of that argument.

      The original poster mentioned the console gaming system, where the sharedholders only get to play the game one at a time. I suppose a system could be worked out, much like Napster, whereby a central server keeps track of what songs a person is "sharing." The sharer will stream the song to one other person at a time, and only when the sharer is not listening to it himself. Assuming the user purchased the song, that might be covered under fair use. There may be 1 million copies of a song sold, but only 10,000 people want to listen to it at any given time. Still, if you actually tried that, you'd still get sued, and, if you won, Congress would just repeal your fair use rights, anyway, because that's really not what they're intended for.

      We're splitting hairs here, and trying to find loopholes in laws. What we really need is to decide what rights an artist, distributor, and customer have when it comes to a piece of music, and craft our laws around that idea. Good freakin' luck, though.

      --
      We don't have a state-run media we have a media-run state.
    5. Re:I think the problem is... by puppet10 · · Score: 1

      Then heres a better argument. If it isn't illegal to listen to music with multiple people when youre close, is it illegal to listen when youre separated by longer distances.

      Say for example a phone line -- what if you got a CD and wanted someone you know to hear it as well and called them up and let them listen to it, this is very similar to a very long headphone cord.

      --
      -------- This space intentionally left blank --------
    6. Re:I think the problem is... by Alsee · · Score: 1

      What we really need is to decide what rights an artist, distributor, and customer have when it comes to a piece of music, and craft our laws around that idea.

      The distributors have announced all your base are belong to us. Congress is currently crafting the laws around that idea.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
  15. So crazy it just might work by Trelane,+the+Squire · · Score: 2, Interesting
    Snapster has to be a public company. It would have its IPO as soon as possible after all those CDs have been delivered. It must be a public company right from the start of operations. Say Snapster goes public on NASDAQ at $20 per share. The IPO sells one million shares (10 percent of the company) netting $20 million minus underwriting fees. So almost from the beginning, Snapster has millions in the bank and a market capitalization of $200 million. What is critical here for the business success is not the price per share but the broadest possible ownership of shares. But the way those additional shares would be sold would be through stock splits, not supplemental offerings. This means that early investors would benefit greatly from being early investors and the Snapster founders would benefit most of all.
    wow. This is like a legal napster plus pyramid scheme all rolled into one. I hope whoever starts it has offshore accounts. (or creates it offshore)
    Each Snapster share carries ownership rights to those 100,000 CDs. You see, Snapster is a kind of mutual fund, so every investor is a beneficial owner of all 100,000 CDs. Each share also carries the right to download backup or media-shifting copies for $0.05 per song or $0.50 per CD, that download coming from a separate company we'll call Snapster Download that is 100 percent owned by Snapster. With one million co-owners each downloading one CD per month, gross revenue would be $6 million per year. If they download an average of 10 CDs per month revenue grows to $60 million per year. At these download volumes and with the very low cost of running the service, the $200 million market cap is justified even at the lower sales level. At the $60 million sales level, the share price ought to rise. Now grow the business to its logical size of 60 million users. At 10 CDs per user per year, Snapster download revenue would be $3.6 billion or about a quarter the size of the current recording industry, which it would effectively replace. With 90 percent profit margins, Snapster would be making $3.2 billion per year in profit. Based on a modest price-to-earnings ratio of 10-to-1 (I am choosing this low number because of the obvious legal issues involved in this business) Snapster's market capitalization is now up to $33 billion, which is more than any current record company. Investors who paid $20 at the IPO will now find each of those shares worth $33,000, which is comparable to Microsoft or Dell or Cisco in success except that Snapster would do this all in one year.

    Interestingly, $33 billion represents approximately the total market capitalization of all the major record companies, which we'd have to expect would be driven down by the success of Snapster. So Snapster would be a transfer of wealth from current owners of record company shares to owners of new Snapster shares.

    this could replace the riaa. let's just hope if someone actually follows through with this it doesn't become somehow as bad as the riaa...
  16. Re:one word: my.mp3.com by modecx · · Score: 5, Informative

    Right. But the people they distributed to were not shareholders of the company. That's the point here.

    It's a funny idea, but ultimately it's a silly one. It's the surest cause for the legislators to take away fair use, or change it so it's not so fair.

    --
    Constitutional rights may be respected, repealed, or modified; but they must never be ignored.
  17. Say WHAT? by binaryDigit · · Score: 2, Informative

    How can this even come close to working? If the corp purchases the cd, the corp, which is considered an entity in and of itself, is bound by the copyright. The shareholders of that corp have absolutely no rights to the cd's at all (except maybe at liquidation time). Just like having shares in IBM doesn't mean I can take advantage of ANY of their assets. This idea, while an interesting fancy, is just that.

    1. Re:Say WHAT? by meta-monkey · · Score: 2, Interesting

      While I agree that this idea is flawed on many levels, I think you're missing one point. No, I can't buy stock in IBM, and then have access to all of IBM's secrets by virtue of being a stockholder. However, IBM could most certainly choose to release all its secrets to the stockholders. Here, the music co-op would choose to share its rights to the music. The question, though, is what rights does the corporation have in this regard?

      --
      We don't have a state-run media we have a media-run state.
    2. Re:Say WHAT? by binaryDigit · · Score: 1

      The question, though, is what rights does the corporation have in this regard?

      That's the whole point. IBM OWNS it's secrets, they are free to do whatever they choose (assuming it doesn't run afoul of any contracts). IBM merely has a license to use the music. The key point is that the company IBM is a legal entity, just like you or I, so fair use would not extend to shareholders since shareholders and IBM are considered different parties. I think what he really wants is to have is a massive partnership, since the "company" is not treated as a seperate entity, instead each member actually does constitute a percentage of the company. Now that would be interesting, since in the simple example, if a two person partnership purchased a cd, the partners would each own half. I think this is what he was shooting for. Of course the problem here is that unlike the corp, each partner can be legally responsible if ANY other partner does something illegal.

    3. Re:Say WHAT? by meta-monkey · · Score: 1

      I don't think the "each owns half" bit works, either. I don't think that entitles you to make a copy. Otherwise, set up a system whereby everybody who wants the new SuperMegaPopBand enters a pool, and pays 1 cent. Say the CD costs $15. For every 1500 people who contribute 1 cent, buy a copy of the CD, then make 1500 copies, and everybody gets one, because they're part owners of the CD. That won't stand up either, as it isn't in the spirit of fair use laws.

      --
      We don't have a state-run media we have a media-run state.
  18. Assumptions by s20451 · · Score: 4, Insightful

    This can only work assuming:

    1. Most people who share music are willing to pay for music.

    2. Most people who share music are ethical, and won't give the music to non-shareholders.

    I think both assumptions are questionable. (Note: if you share music, I'm not saying you are a freeloader and immoral. But is everyone like you?)

    --
    Toronto-area transit rider? Rate your ride.
    1. Re:Assumptions by Anonymous Coward · · Score: 0

      .... but I am:

      You all are freeloaders and immoral, due to the simple fact that anybody reading this at the moment has a pulse.

    2. Re:Assumptions by Anonymous Coward · · Score: 0

      > [...] But is everyone like you?)

      Apparently.

      At least according to some of the file trading stats.

      I think the RIAA has opened a real can of worms. If you attempt to claim something widely practiced is wrong there is the tendancy to only inflame the practice by enforcing punishment.

      You might call this "The Paradox of the Tragety of the Commons".

      While the RIAA firmly believe they will be able to squelch file trading by breaking the backs of the 10% who supply. You only need look at prohabition to realize the inevitable outcome. (and no, I'm not using the same supply/demand argument that the pro-drugs folks use to bash the war on drugs with... although keep in mind that there are places on Earth that have realized the limited logic in this argument).

    3. Re:Assumptions by swb · · Score: 1

      I think there's another assumption burined in there that would require your payment-to-download ration to never dip below 1:10 or something to prevent the leech effect, since, presumably to get the music they'd have to buy at least one.

      I'd be more than willing to buy music at 10% of its existing cost, which, theoretically, could be another potential business model -- bulk purchasing/discounting.

      Which may get to the root of the the REAL problem, the outrageous cost of music. I think people would purchase if it wasn't so ridiculously priced. I think even "poor college kids" would buy CDs if they were $5.

    4. Re:Assumptions by KoalaBear33 · · Score: 1

      Which may get to the root of the the REAL problem, the outrageous cost of music. I think people would purchase if it wasn't so ridiculously priced. I think even "poor college kids" would buy CDs if they were $5.

      What's your criteria for saying that music is overpriced? How can one possibly say that under capitalism? In capitalism, the price is whatever the market sets it to (including prices set by monopolies). If you are a capitalist--I think you are--you cannot possibly claim that music is too expensive. This is especially true given that music is only like $20. What is affordable? $15? $10? $1? 50cents?

      KoalaBear33

      --
      ......The worst thing in my life happened when the stock market started mattering more than the economy
    5. Re:Assumptions by Minna+Kirai · · Score: 1

      In capitalism, the price is whatever the market sets it to

      The current price for music isn't set by the market alone. It is the result of government interference: copyright laws. The government (police and courts) spend a fair amount of money helping corporations stop people from duplicating music.

      If government-issued copyright went away, a possible (but unlikely!) result is that the free market will settle on a new, lower equilibrium price for music CDs.

    6. Re:Assumptions by KoalaBear33 · · Score: 1

      It is the result of government interference: copyright laws. The government (police and courts) spend a fair amount of money helping corporations stop people from duplicating music.

      I'm not a capitalist but doesn't capitalism and free markets call for strong property rights? Copyright laws are nothing more than an extension of property rights. I see little difference between a piece of land and a piece of music.

      If government-issued copyright went away, a possible (but unlikely!) result is that the free market will settle on a new, lower equilibrium price for music CDs.

      If you buy the music company arguments, that won't be true. According to the music companies, they act as banks. In essence, they are providing "loans" to artists in the hope that some of they will pay it off. Many artists fail; but from the few that succeed, the companies make money from them. This was basically Metallica's argument (against Napster)...

      KoalaBear33

      --
      ......The worst thing in my life happened when the stock market started mattering more than the economy
    7. Re:Assumptions by Minna+Kirai · · Score: 1

      I see little difference between a piece of land and a piece of music.

      Ha. Ha ha ha. Ha, ha ha ha, ha ha ha ha ha ha ha.

      You apparently suffer the mental aberration called synesthesia.

      Me, I can't see a piece of music at all. Or touch it, feel it, or especially hold it.

      Property, by definition, can only be used by a limited number of people at once. Once written, music is not like that.

      I'm not a capitalist but doesn't capitalism and free markets call for strong property rights?

      There are two conflicting definitions of capitalism. Both are valid, but one (the more "Liberal" interpretation) calls for external intervention to enable competition, even overriding property rights. (This is the justification for anti-monopoly laws, which violate the sancity of property)

    8. Re:Assumptions by Alsee · · Score: 1

      property rights?

      The rights of copy have almost nothing in common with the rights of property. Information is not property. It has an entirely different nature and it is covered by entirely different laws rules. Those laws and rules are SUPPOSED to be different.

      The copyright lobby is trying to change the law to apply various aspects of property rights to copyrights and it's just plain broken. I've seen quotes that the law discriminates against copyright holders because they dont have the same rights as property owners. LOL! They claim that means the law is broken, but that's absurd.

      But, on to a more interesting point...

      If you buy the music company arguments, that won't be true. According to the music companies, they act as banks. In essence, they are providing "loans" to artists in the hope that some of they will pay it off.

      There is absolutely no justification for such a "loan" system. There are thousands of people making music that want an opportunity to get distributed and make money. Bands already make "demo tapes" with their own money and give them to labels for free.

      Lets assume Cringly's plan works and this company completely wipes out the RIAA. The company now needs a new source of music. Unknown bands can continue to give "demo tapes" for free. But now here's the beautiful part - if the music proves popular then the company will be willing to pay hundreds, thousands, or even a million of dollars to get a single new CD from them.

      And check out this out: Assume a band gives a first CD to the company for free. Assume the company has automatic rules for buying any subsequent product from a band based on demand for previous works. Assume that first CD is a big hit. Even though the band gave first disk for free, they can "cash out" on it by selling the company a new blank CD. Cute, huh?

      There are various ways you can tweak the system for paying the artists, but the system works. The people who should get paid do get paid.

      The difference is that now bands don't have to get "picked" by a label. They make their music available at will and they make money based on how many people requested their stuff.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    9. Re:Assumptions by Alsee · · Score: 1

      1. Most people who share music are willing to pay for music.

      At a flat $20 plus a pennies per download, yeah, I think most people are willing to pay. I know I am.

      The current RIAA download services are getting a couple of thousand customers, and they are triple-handicaping themselves. #1 they only offer crippled files. #2 they are a buck a download. #3 they only offer a limited selection of available music.

      If those services can shoot themselves in the foot three different ways and still get thousands of customers then you can certainly get a lot more when you eliminate those problems.

      2. Most people who share music are ethical, and won't give the music to non-shareholders.

      At pennies per download there really isn't much point. Plus you can in fact beat "free" with a well run system that provides other valuable features and services.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    10. Re:Assumptions by Anonymous Coward · · Score: 0

      I share music, and I'm unethical and immoral.

      Posted AC for obvious reasons.

    11. Re:Assumptions by swb · · Score: 1

      As other followups have pointed out, the recorded music marketplace isn't what I would call a terribly free and open marketplace.

      Most of the production, distribution and publicity channels are held by a small number of influential corporations. Most artists, even dominant popular artists, rely heavily on the marketing, publicity and distribution channels the dominant players provide.

      Since there are no viable massmarket alternatives, the industry heavyweights effectively set the market terms.

      I picked $5 because it more closely aligns with the actual production and manufacturing costs associated with recording and producing a compact disc. Perhaps I'm low by a dollar or two, but not much more.

      You can do the math yourself and see -- a record that cost $500,000 to record, mix, and master with $1 million of marketing and a production run of 500,000 copies at $2 per copy (packaging, shipping and associated overhead costs) could sell for $7 per copy with a 40% profit margin.

      And I'm sure those costs are out of line; I'd imagine the recording/mix/master costs would be half or less than half of that. Cutting production costs to $250,000 leaves a $7 CD with a 67% profit margin, at 2-3 times what many other industries expect.

    12. Re:Assumptions by KoalaBear33 · · Score: 1

      Me, I can't see a piece of music at all. Or touch it, feel it, or especially hold it. Property, by definition, can only be used by a limited number of people at once. Once written, music is not like that.

      I don't think your definition is correct (at least according to what happens in the courts). Courts seem to consider anything to be property, including intangible things such as biologically engineered plants (and possibly animals in the future).

      There are two conflicting definitions of capitalism. Both are valid, but one (the more "Liberal" interpretation) calls for external intervention to enable competition, even overriding property rights. (This is the justification for anti-monopoly laws, which violate the sancity of property)

      Pure capitalists consider that sort of govt intervention as anti-capitalistic. Capitalism calls for no govt intervention, except to protect property rights.

      KoalaBear33

      --
      ......The worst thing in my life happened when the stock market started mattering more than the economy
    13. Re:Assumptions by KoalaBear33 · · Score: 1

      The copyright lobby is trying to change the law to apply various aspects of property rights to copyrights and it's just plain broken. I've seen quotes that the law discriminates against copyright holders because they dont have the same rights as property owners. LOL! They claim that means the law is broken, but that's absurd.

      These people DO consider intellectual property to be a form of property. For instance, companies can patent biologically engineered plants (eg. Monsato's weed-resistant crops). This has more to do with patents than copyrights but it is similar in some sense.

      The difference is that now bands don't have to get "picked" by a label. They make their music available at will and they make money based on how many people requested their stuff.

      I neither understand your position nor the example. Why would the companies buy a CD for thousands or millions of dollars? They will only do that if they can corner the market and make a lot of money. Otherwise, why would they even bother? If alternative systems pop up, I can't see the studios buying people's music for millions of dollars...

      I'm not really sure what you are saying.

      KoalaBear33

      --
      ......The worst thing in my life happened when the stock market started mattering more than the economy
    14. Re:Assumptions by Alsee · · Score: 1

      These people DO consider intellectual property to be a form of property.

      Patents and copyrights are good and usefull, but whenever people think in terms of then as "property" they almost inevitably either come to the false concusion that the law treats them the same, or they know the law and come to the conclusion that the law is broken because it doesn't treat them the same.

      Trying to apply property concepts and rules to "IP" distorts it from a good thing to a diseased thing. When I say "IP isn't property" too many people accuse me of saying that they don't exist or that they shouln't exist.

      Why would the companies buy a CD for thousands or millions of dollars?

      I see where I lost you. Understandable, the entire scheme is strange from the start. First I'll explain what I meant, then I'll give a far simpler alternative I figured out later.

      Follow me into the future assuming things go as Cringly described. Snapster buys up all available CD's. The RIAA dies. Cringly points out that Snapster wants to buy more CD's but now has no source. Cringly points out that Snapster now has money it wants to spend, and that it should probably be plowed back into the music industry. The two "problems" match up as a single solution.

      Snapster only needs one copy of each CD, but that one copy is extremely valuable to them. With "the recording industry" gone Snapster has to turn to the artists themselves to supply new music. If Snapster expects 20 million people to download a Britney CD (at $0.05 cents per track, 10 tracks per CD) then Snapster would gross ten million. Assuming 50% overhead that means snapster could offer Britney up to five million for a single copy of a new CD.

      Snapster would of course accept free CD's from no-name bands. If no-name gets 40,000 people downloading them that's $20,000 gross and Snapster would be willing to offer up to $10,000 for them to make another CD. And that is exactly $10,000 more than the RIAA would offer a band so bad they could only sell 40,000 CDs at $0.50 each.

      I later realized that once Snapster has bought all available CD's and the RIAA is dead it is simpler to drop the "buying CDs game". Snapster could simply offer a certain amount of money per download to anyone who submits music. Same effect, much less complicated.

      P.S.
      I grabbed the $0.05 price and 10 tracks/CD from Cringly's article. I made up all other numbers. A dime or even a quarter per track might work, but remember the point is that people will think nothing of downloading (and paying for) a hundred songs and throwing away 90% of them if they are dirt cheap, and that people won't bother getting free copies elsewhere if they are dirt cheap.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    15. Re:Assumptions by Anonymous Coward · · Score: 0

      Selling the rights to listen to music can only work assuming:

      1. Most people who listen to music are willing to pay for music.

      2. Most people who listen to music are ethical, and won't give the music to non-purchasers.

      Both assumptions are questionable. (Or maybe I'm just missing your point.)

    16. Re:Assumptions by muleboy · · Score: 1
      Patents and copyrights are good and usefull, but whenever people think in terms of then as "property" they almost inevitably either come to the false concusion that the law treats them the same, or they know the law and come to the conclusion that the law is broken because it doesn't treat them the same.

      I haven't gone into detail with my lawyer friend on this topic, but I got the impression from him that copyrights and patents are treated the same as physical property in the eyes of the law, at least of far as "ownership" of them is concerned. Of course, when it comes to punishment for violating these "properties", the rules are different... so it depends on the context. In corporate-speak, when they say they own certain intellectual property with a certain value, that is pretty accurate. When they talk about people "stealing" their intellectual property, it's not.

      P.S. I emailed by lawyer friend about your thought-crime proposal. Hopefully he's not sick of my stupid questions already...

  19. Re:one word: my.mp3.com by Anonymous Coward · · Score: 3, Interesting

    I think the difference would be that the new company would only distribute the music to shareholders. Taken as a whole shareholders are the owners of the company. If they own the company they also own the company's assets, i.e. the music. Thus, the people obtaining the music from the company to some extent share ownership of the music they download.

    No such relationship existed at my.mp3.com. The people downloading the software were customers of my.mp3.com, not owners.

  20. A shortfall by AntiOrganic · · Score: 2

    United States copyright law allows you to make one backup copy of the work, for private use. So if someone downloads it, they'd have to be the only person downloading it, and once it's downloaded, it would have to be deleted off of the servers. I don't seem to recall anything about group owners being able to make an unlimited number of backup copies.

    1. Re:A shortfall by Sanction · · Score: 1

      The backup right is also only specified in law for computer software. It is widely considered reasonable that you can make a backup copy of music under fair use, but that has not yet been established by the courts.

      --
      Well I'm the doctor and I say you're dead, so shut up and take it like a man!
  21. Hey, that's my idea! by i_am_nitrogen · · Score: 1

    I had the same idea a couple months ago, except it was about DVD's. I was talking to my dad about it! I have a witness! A DVD co-op where people buy DVD's and share them with each other. Kind of like a private library. You have to pay a fee to get access to DVD's, and you are rewarded by a fee reduction for sharing your own DVD's, plus maybe priority access to DVD's you've submitted.

  22. Owning is a better idea by bradintheusa · · Score: 5, Interesting

    This idea is very flawed. A much better idea would be a netflix type CD rental, except they keep the CD in escrow for you and you own it rather than rent it. CDs could be bought or sold on the open 'virtual' market. You only get remote access to it. If you want physical access you pay for shipping. That remote access can be in a number of fomats from ISO,WAV,MP3 etc.

    Once you have owned the CD for a day, sell it to someone else and erase your fair use copy. Next time you want to listen to it buy it again and sell it again.

    Just like Cringely send some of those IPO shares to http://www.pcast.com.

    Brad.

    1. Re:Owning is a better idea by YllabianBitPipe · · Score: 1

      Why not just copy the netflix model but have it be for CDs. Charge something like 10 bucks a month subscription. Of course it's a fair bet people, once they get their cd mailed to them, *might* be ripping 'em, but hey that's the customers deal not the company.

      I'd sign up for this.

    2. Re:Owning is a better idea by Anonymous Coward · · Score: 0

      That remote access can be in a number of fomats from ISO,WAV,MP3 etc.

      ISO can't handle multi-track CDs. You hafta use a different format, like cue/bin.

    3. Re:Owning is a better idea by Anonymous Coward · · Score: 0

      I totally agree. Either a virtual market place or a virtual library will do.

      You will need multiple copies of the same CD, but with a co-op scheme it is easy to achieve.
      Consider how many CD's you have and you can listen to only one at a time. The CD's (and their electronic versions) that you are not listening to at a given time can be sold or rented to other parties.

      Say, you will sell the CD, send an electronic version of it to the buyer, and keep his CD (acting as a back-up) under lock. If he wants to sell back your copy, he will send back the file (or delete it and you will generate another).

      Selling sth you own shouldn't be illegal (second sale provision), once you buy sth it shouldn't be illegal to keep the back-up copy in a remote site under someone elses supervision (keeping back-ups in the same building with the originals is a stupid idea anyhow).

      It's best to have the marketplace/library software as open-source or public domain. So, they cannot buy-off the software to limit use.

    4. Re:Owning is a better idea by pbox · · Score: 1

      Me like this even beter than Cringley's idea. Thanks Brad.

      Consider this, you buy the song when you hit play for $1.05. When the song stops, the company buys back the song for $1. Co-op made $0.05. You payed $0.05. You no longer own the songs, co-op can sell it to the next member.

      Let's assume some numbers:

      100K members.
      2M songs.
      Max songs played at the same time: ~100K (high usage).
      Avg songs played at the same time: ~10K (daily avg).
      Favorite song copies needed to be owned: ~1K
      Avg. number of copies per song needed to be owned: 5 (maybe lower).

      2M * 5 songs = 10M ~ 1M CDs ~ $20M inital layout.
      10K songs played constaly for $0.05 per song. A song is 5 min long. That is 10K * $0.05 = $500 every 5 mins = $6K per hour = $144K per day.

      Profitable in 139 days.

      You do not own any songs, but you can play any at any time for 5c per song.

      Consider it that a) you can lower the profit the comany makes to 1c per song, and still it is profitable in a year and a half.

      Bad stuff:

      - If you burn it to cd, you brake the law.
      - Streaming is the only way.
      - Only works with instant online connection.
      - Fad songs lose money, as you need to own more copies for inital interest, after which there will be no more interest.

      --
      Code poet, espresso fiend, starter upper.
    5. Re:Owning is a better idea by Anonymous Coward · · Score: 0

      I like this idea.
      Why don't we (as in slashdot) try organizing a co-op along these lines?
      CMD Taco... are you listening?

    6. Re:Owning is a better idea by grmoc · · Score: 1

      The natural refinement of this idea is to stream the music, with the stipulation that you may not store it on disk. This increases the 'effeciency' in that a person may not hold onto the ownership of that CD indefinately, but only so long as they are listening to it.

      Now, this 'streaming' would have to be of the demand-based, probably with FF/RW/Seek capabilities, and would probably manifest as a file-lock. Simple, really.

      All one would have to do to make this a reality is hack some net-based filesystem.

    7. Re:Owning is a better idea by Mr.Sharpy · · Score: 1

      Maybe you could make it 1.07 or so and 'donate' 2 (or more) cents to the song's artist for every play, cutting the record labels out all together. Since that would kill the labels eventually, the company could save its pennies and eventually bankroll artist development and promotion.

    8. Re:Owning is a better idea by pbox · · Score: 1

      I like this. 1c to the artist of the song played, 1c to support upcoming artists (something like a fund).

      We could make this happen with the slashdot crowd.

      Maybe we should start a business plan.

      --
      Code poet, espresso fiend, starter upper.
    9. Re:Owning is a better idea by pbox · · Score: 1

      One more calc I left out:

      If you play music 15 hours a day 30 days a month, then with 5c per 5min song you would end up paying $100/mo. However with 1c per 5 min song, you would be paying $20 (!!!) for truly unlimited music. Compare that to iTMS, emusic, listen, etc...

      AND you have instant access to 2M songs!

      --
      Code poet, espresso fiend, starter upper.
    10. Re:Owning is a better idea by Minna+Kirai · · Score: 1

      Consider this, you buy the song when you hit play for $1.05. When the song stops, the company buys back the song for $1.

      There's no reason for that silly "buy it from us, then sell it right back" rigamarole.

      A temporary transfer of permission to use is called "rental". It's perfectly legal. If you own a DVD or CD, you can rent it for others. Blockbuster needs no special relationship with the movie studios to run their business.

      If you were (for some reason) to claim in court that the CDs were being "sold", when it was plainly intended to act like rental, you'd be in trouble. It doesn't look much like a sale if you make no attempt to send the physical CD to the "buyer"'s home.

      PS. Blockbuster (and other rental places) do have semi-special relationships to studios, but they're not strictly necessary. Publishers have no right to prevent someone from renting out a DVD once she owns it- so they charge enormous prices for the first few months of release. Only a rental house will be willing to pay $130 for a DVD of Shrek. Later they'll cut the price to $29.95 to make it attractive for the general public.

    11. Re:Owning is a better idea by pbox · · Score: 2

      Only problem with this is that if you look carefully on your CDs/DVDs, there is a print that expressly forbids of rentals.

      You can sell it however.

      --
      Code poet, espresso fiend, starter upper.
    12. Re:Owning is a better idea by Minna+Kirai · · Score: 2
      No text printed on the side of a CD has any validity. I'm not obligated to read it or agree to it.

      If it grants me some abilities beyond those inherent in the relevant law (the US Uniform Commercial Code primarily), then I might decide to abide by it. But just because a stranger wrote some words doesn't mean I have to obey them. For example, there's text at the bottom of this post. Will you obey it?
      • Be right back...
      Having just checked a few DVDs, I have learned there is no text forbidding rental. Mine say "For private home use only", which doesn't preclude rental for home viewing. (That might explain why Sumner Redstone hasn't been arrested yet)

      Any text that did exist could only be considered as a reminder of perinent fractions of copyright law (such as the famous "FBI Warning"), and not a commandment from a publisher.

      "By closing this browser window, you agree to mail the author of this sentence $254."
    13. Re:Owning is a better idea by the_quark · · Score: 1

      The only problem with this is that renting CDs is illegal in the US.

    14. Re:Owning is a better idea by the_quark · · Score: 1

      "Interactive streaming" (streaming where you get to decide what comes next) is already well-regulated by the law and very expensive (bare minimum of $.035/song).

      Look, the technical problems to all of this is trivial. The licensing is hard. If you haven't rea d a lot of law (and BTW, Cringley hasn't) please accept that it's just not very easy to get away with this. A bunch of smart people have spent a lot of money writing laws to keep you from getting music for free, and you're not going to beat them at it if you don't at least read the laws and the cases.

    15. Re:Owning is a better idea by Arker · · Score: 1

      You're right, but you're wrong.

      Fact is, US law actually carves out an exception in this respect for music. You're not allowed to rent it.

      --
      =-=-=-=-=-=-=-=-=-=-=-=-=-=-
      Friends don't let friends enable ecmascript.
    16. Re:Owning is a better idea by radish · · Score: 1

      Every DVD I've ever watched has a big long message at the beginning which says, amongst other things, that rental, lending, public performance, copying and broadcast are not permitted. The copyright laws specifically prevent you doing those things with "media" like music and films.

      --

      ---- Den ene knappen er powerknapp, den andre er Bender voice knapp "Bite My Shiny Metal Ass"

    17. Re:Owning is a better idea by grmoc · · Score: 1

      What is the difference then between streaming and reading from a network drive, legally ?

      If there is no difference, then I'm sure that most of us have been streaming music within our homes and are thussly required to pay 3.5c/song.

      Unfortunately, I don't believe that reading the law itself will help anyone in their understanding of acceptable behaviour-- interpretation of these laws is so incredibly loose in areas and so incredibly tight in areas, that it only seems to make sense to look at the cases. :/

    18. Re:Owning is a better idea by KReilly · · Score: 1

      The better solution is to have a network setup between users. When someone(person B) wants to play a song, they querry the distributed database for the song they want. If the song is being currently listened too by another user(person A), person B is put in a queqe. When person A finishes the song the song is copied over to person B to play. This works out better than your theory, because it uses all the time most effiecently. Hypothetically you could even play the song almost simulatniously if you tracked what second it was playing on the other computer, your user could be playing it 2 seconds behind. This would only work best if you had very high speed connections, so the better way is to store the songs in a temp folder and allow a song to be "unlocked" and "locked" so that no 2 users can ever play the same song at the same time. This also has the problem that the latest mtv hits would create horribly long queqes so multiple copies must be bought by the orginization. Basically, this would make a very cheap, much quicker version of netflix for tunes.

    19. Re:Owning is a better idea by the_quark · · Score: 1

      What is the difference then between streaming and reading from a network drive, legally ?

      None. A stream is when you download it and don't keep it. A Digital Phonorecord Delivery (DPD) is when you download it and do keep it. Music is delivered online either as a non-interactive stream (think: web radio), an interactive stream (you decide what comes next) or a DPD (you purchase it and keep it). The reason you don't see any interactive streams is because the RIAA figured a long time ago that was where the money was, and got Congress to change the law to make it so you have to pay them a ton to do it. Consequently, no one does it and there's no money in it. :)

      If there is no difference, then I'm sure that most of us have been streaming music within our homes and are thussly required to pay 3.5c/song.

      Well, see, you don't stream music in your house for profit, so it's fair use. But if you were charging your buddies to do it, you'd be supposed to pay.

      Unfortunately, I don't believe that reading the law itself will help anyone in their understanding of acceptable behaviour-- interpretation of these laws is so incredibly loose in areas and so incredibly tight in areas, that it only seems to make sense to look at the cases.

      Not only that, there's all this jargon, I agree it's obtuse and a lot of it doesn't make any sense. But, the bottom line generally for companies is, if you're making complete copies, you need to pay someone. The bottom line for individuals is, if you don't give it to anyone not in your immediate household, you're probably fine.

  23. Quantum time splitting multiple access database by RichMan · · Score: 1

    The "corporation" really has only the need for 1 central copy with appropriate backups. Expect an argument about what constitutes an appropriate back up.
    Even if everyone in the corporation is allowed their own "backup" copy of the entire music archive the concept of copyright and backups will mean that 1 copy is viewed as the access copy. All other copies will be "inactive" backups.
    The "active" token can be passed around quickly, but does not solve the concept of multiple simultaneuos access to the same song.
    Simply drop the concept of access control altogether and call the whole thing a distributed multiple access data base and get the RIAA to define the concept of simultaneuos access down to the quantum time level.

  24. this is nonsense by Timesprout · · Score: 2, Insightful

    The immediate disclaimers prevent this under personal use under federal regualaltion yaday etc,

    --
    Do not try to read the dupe, thats impossible. Instead, only try to realize the truth
    What truth?
    There is no dupe
  25. Very Clever! by wuice · · Score: 1, Insightful

    Unethical businessfolk have always used the idea of incorporating as a way to shield themselves personally from the legal liabilities of their companies. How clever and ironic now that the same institution which shields these people from legal liability, the same institutions which have subverted our legal system through the judicious (pardon the pun) use of money and lawyers, now could stand to be used to shield file traders from this corporate-driven legal system gone mad.

    1. Re:Very Clever! by Anonymous Coward · · Score: 0

      Ummm...not all corporations are bad. My wife and I own a small business, we conduct our business ethically, and we incorporated for a) the tax benefits, and b) so that if somebody ever slipped and fell in our business place, some idiot jury couldn't give them our home and everything we own. Don't paint all corporations with the same brush.

    2. Re:Very Clever! by wuice · · Score: 1

      I didn't and wouldn't. I said that unethical businesspeople take advantage of corporations, not that corporations are composed of unethical businesspeople. Not wanting someone to sue you personally for slipping in your business has nothing to do with the kinds of abuses I am talking about.

  26. This is a strange idea.... by YllabianBitPipe · · Score: 3, Insightful

    While on the surface it seems amusing enough there's some things I don't totally get, maybe someone else can explain where I'm wrong...

    First off, owning company stock is not necesarially the same thing as wanting to own the company's product. I might want to own the product but not take on any of the risk of owningthe stock. Likewise, there are plenty of companies I'd own the stock for only for the point of making money, not because I want to personally want to use their products (stock in a pharmecutical company comes to mind)

    related to this is the idea that there will be tons of people who want to own tons of stock for the point of being rich, namely the insiders or the investment bankers that want to make money off the IPO. Typically a large amount of shares of any company is held by institutions, not individuals. This idea sounds like he wants stock to be held by all the customers which totally goes against the way investments are usually held. I don't think the institutions would like this idea one bit.

    Then, what happens to people who own shares of the stock via a mutual fund? People who own the stock that don't even know about the service? Or people who want to download the music but don't have any means of getting shares of stock because they can't open a brokerage for whatever reason (bad credit)?

    Lastly, what happens at the shareholder meeting?

    Maybe I just don't get this idea, but to sum up, the product / service a company provides is (and should be) totally separate from its stock.

    1. Re:This is a strange idea.... by KoalaBear33 · · Score: 1

      I think what he is talking about is more like a private corporation that is closely held. What you are saying doesn't apply to these. For instance, there are many small corporations (small still means millions of dollars in market cap) that are privately owned. Not all corporations are owned by institutional investors. A good example would be a lot of the small military or weapons manufacturers. Most of the small ones are closely held and owned mostly by a few individuals.

      Also, the goal of the corporation would NOT be to make money. In other words, it won't be a profit-maximizing corporation. Because of that, the people that you mention (investment bankers, investors seeking to profit, etc) won't be interested in it.

      As a matter of fact, I don't think his idea would work well unless it is a co-op. Or perhaps a non-profit corporation (like Red Cross).

      Maybe I just don't get this idea, but to sum up, the product / service a company provides is (and should be) totally separate from its stock.

      What he is proposing isn't a traditional corporation that acts in a traditional manner. Instead, it is something radical and new. The traditional behaviour is for investors to stay away from the corporations' assets (ie. products and services). Here, he is proposing a corporation whose whole purpose is for the investor to interact with the assets.

      KoalaBear33

      --
      ......The worst thing in my life happened when the stock market started mattering more than the economy
  27. Archives for CD Owners? by Kane+Skalter · · Score: 1

    The author of the article mentioned that you should be the owner of a CD in order to download. Didn't MP3.com try that with Beam-It and get forced to lock up 99% of their archives? It was a good idea, forcing you to prove your ownership by having the program read your CD and then allow you to stream the MP3's, but alas, the Rich Ignorant A$$h0l3s of Amerika didn't see it that way...

  28. Licenses by PiGuy · · Score: 3, Interesting

    There's a major (future) flaw in this:

    If I buy stock in a company (even the one I work for), that doesn't mean that I can freely use any software that they buy from another vendor. Most software comes with per-seat licenses, not per-company. What's to stop music companies from just packaging only a single-user license in a CD? Replace the word 'music' with 'software' in this scheme, and it all falls apart.

    1. Re:Licenses by Anonymous Coward · · Score: 0

      Because that would mean I couldn't be in the same room as someone when I am listening to my music.... or I'd always have to wear headphones, etc. It would ruin normal use... they couldn't do it.

  29. What about software? Or Licenses? by LamerX · · Score: 1

    Could the same thing be applied to software? Probably not because of the license you agree to. What if this provokes the RIAA to set up music in a license format?

    "By opening this package you agree to the terms of the Listener Licence Agreement on the back of the package"

    Thereby you would only be licensed to listen to this CD on a certain device and don't have a license to copy this CD. Oh well It was nice while we had our rights...

    1. Re:What about software? Or Licenses? by Electrum · · Score: 1

      "By opening this package you agree to the terms of the Listener Licence Agreement on the back of the package"

      There is nothing in law that makes that legal.

  30. Oh yeah, the fee pays for more DVD's. by Anonymous Coward · · Score: 0

    All the fee money goes to either buying new DVD's or extra copies of popular DVD's, and maintaining the library and tracking systems.

  31. Don't let the cat out of the bag by felonious · · Score: 1

    They should have done this instead of letting the cat out of the bag. No doubt people visit /. to get a feel for what's happening but they will read or hear about this idea and slip it into the drm. At least start this idea up and once the RIAA sues just let it go back and forth through the courts for years until this thing is settled.

    I cannot think of one company or individual excluding sadam or OBL that is more despised currently. The RIAA is obviously done caring about how people view them and I can finally see users are starting to turn on them in droves. They really think we need to buy music so badly that we won't stop no matter what they do. They have obviously underestimated the American public.

    Play your games, buy laws, sue people into financial ruin but understand your industry will not go unpunished. Your days are numbered as are the days of ripping off the artists who are on your labels. Your industry's death may be slow but the writings on the wall and there's not a law you can pass or enough users for you to sue to save it.

    Kiss it all goodbye for you are an archaeic industry who has over stayed it's welcome in the country where freedom of choice matters and consumers ultimately decide what stay and what goes.

    RIAA you're gone....

    --
    You aren't free to do anything, until you've lost everything.
    1. Re:Don't let the cat out of the bag by Anonymous Coward · · Score: 0

      I cannot think of one company or individual excluding sadam or OBL that is more despised currently.

      I do not know of one person in real life, except you kids, who is riled up and angry at the RIAA. And I am not a shut-in somewhere. Regular people aren't riled up about this. Maybe a dorm floor here, and a convention of nerds there... you're isolated little pockets, folks.

      You folks need to get out more, before you start making pronouncements.

      This is positively one of the stupidest ideas to come out of a Cringely (not his real name) column. And that's saying a LOT.

    2. Re:Don't let the cat out of the bag by felonious · · Score: 1

      Dearest close minded, stereotyping troll,

      So many ways to start this but just let me begin with the obvious. Just because you are so uninformed as to not see the further implaications of the laws the RIAA is passing doesn't make you any smarter than people here. What is does is show you for what you are...a fucking idiot who bases his world view on the very little he knows on subjects completely out of his realm. If you think this is strictly about downloading music then you're a fucking idiot but that's already been established.

      You go on to say we are little isolated pockets of folks, nerds, and college students. Well mr uninformed stereo typing llama let me give you a little background on myself since you seem to lump everyone together because the all fight for the same cause. I'm a man over 30, I have a beautiful girlfriend, more beautiful than you'll ever know. I get laid daily and I'm talking more than missionary:). I have a great job. I enjoy my free time outdoors camping and I also race sport quads. I donate time to the SPCA and help out other people as much as possible. I don't wear taped glasses. Women love me and I'm no where near a dork. This isn't egocentricity. I am saying these things to shed light on myself and point out that just because one is opinionated and loves technology then that does not make him or her a dork.

      The word geek I do like because IRL it means you're into cool shit that "Joe Average" knows shit about (see my description of you earlier).

      Another thing that shows you for the analy-birthed, troll you are is you add nothing to the conversation other than calling Cringely stupid. THANK YOU TROLL! You have given us the answers we have all been searching for. You have enlightened us beyond belief and we owe you more than gratitude...we owe you are our lives!

      I love you "except you kids" comment as if adults can't still believe in something so important and so unimportant as you deem it to be but that is strictly from your lack of understanding and comprehension of what's happening. Read some not on downloading music but on the laws being passed and how they could slowly revoke the freedoms that many American's died for to protect.

      If you have kids do you want there future to be based on what the goverment thinks is best for them? Do you want the goverment of a business to tell them who, what, when, why and how they should buy, consume, and live their lives? Do you want your kids to live a life as free as your's?

      If so read up on what's going on and maybe you'll have an idea of what everyone is so pissed off about. Until then SHUT THE FUCK up and keep trolling because your true colors shine through your bullshit arguments, stereotyping, and ignorant comments.

      Once again Shut your fucking piehole.

      --
      You aren't free to do anything, until you've lost everything.
    3. Re:Don't let the cat out of the bag by Anonymous Coward · · Score: 0

      Nice, troll, jackass.

  32. Cringley lacks basic understanding of economics by El · · Score: 4, Insightful

    Napster had 60 million users with a membership price of free (many of which were no doubt duplicates) therefore a service with a membership price of $20 should have an equal number of users? What part of "supply and demand" did you miss, Robert?

    --

    "Freedom means freedom for everybody" -- Dick Cheney

    1. Re:Cringley lacks basic understanding of economics by multimed · · Score: 1

      Except that that was how many years ago? Many more people are on line, a ton more have broadband and tons more are generally pissed at the RIAA not to mention that a lot more people are sick of the same packaged pop crap and would love to support a system that fosters new and different artists. All things condsidered, I think that the 60 million Napster users is a perfectly acceptable number to use when presenting what is as much a thought experiment as business plan. And he is very clear in the first two paragraphs that the biggest goal of the article was to get people to do some lateral thinking of problems.

      --
      Vote Quimby.
    2. Re:Cringley lacks basic understanding of economics by kaltkalt · · Score: 1

      the key word there is "had." That being said this idea is so wrong from so many aspects i don't know where to start, but let's just say it doesn't work.

      --

      Stupid people make stupid things profitable.
    3. Re:Cringley lacks basic understanding of economics by Nom+du+Keyboard · · Score: 1
      What part of "supply and demand" did you miss, Robert?

      I think you missed the part that free Napster is no longer in competition with proposed Snapster.

      --
      "It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
  33. Why do we need to make a bogus corp by Goalie_Ca · · Score: 4, Insightful

    Is there any reason why we can't go out and buy a Sony share or a Warner share???

    They own the rights to begin with!

    --

    ----
    Go canucks, habs, and sens!
    1. Re:Why do we need to make a bogus corp by beaverfever · · Score: 1

      They own what rights? To the recordings perhaps. How will you coerce the copyright holders into your scheme?

      (please don't respond with "the corporations own all the copyrights", because they don't - I don't want to explain how that works twice in a week)

    2. Re:Why do we need to make a bogus corp by wuice · · Score: 1

      Because a share of Sony or Time Warner will not give you access to their library of copyrighted materials. The bogus corp would allow its shareholders (limited owners) full access to the assets of the company (the library of music) whereas owning a share of Sony stock does not give you full access to the assests of their company.

      IANAL.

    3. Re:Why do we need to make a bogus corp by YoJ · · Score: 1
      This is a very interesting comment! I think the answer here is more clear-cut than Cringley's proposal. Owning part of a company does not give you the right to control the assets of the company. That's what the whole shareholder voting system is for, to decide what the company will do.

      As a variation on Cringley's idea, the "mutual fund" company could buy distribution rights for music (rather than one CD). Then anyone who is a shareholder gets all the music free from the internet. As more people join, the money gets used to buy more music. I'm not sure about the economics, but it might be possible to get a snowball effect where eventually everyone publishes on this label and everyone that likes music pays for a share.

    4. Re:Why do we need to make a bogus corp by ortholattice · · Score: 1
      Owning part of a company does not give you the right to control the assets of the company. That's what the whole shareholder voting system is for, to decide what the company will do.

      Convince the majority of shareholders to vote to allow shareholders access to the company's copyrights (which in effect the shareholders already partly own anyway). Perhaps on some prorated basis depending on the number of shares owned; haven't worked out the details.

      The reason the shareholders would want to do this is the following. Once this took effect, everyone would want a share, and the stock price would skyrocket. It would feed on itself: as the stock price went up, people would in effect feel they were being paid to download, causing even more greedy people to buy in. Existing shareholders (the ones who voted this in) could sell out at a huge profit.

      Long term the price might not sustain itself after the majority of the population buys in, causing the company's sales to diminish, but all people care about these days are short-term profits anyway.

  34. Yep that'll work... For about three seconds. by themaddone · · Score: 4, Interesting

    I can see it now, Snapster starts up, buys a few CDs, and all of a sudden every new CD that is bought comes with a draconian Microsoft-style license which explictly states that you may not play the CD on more than one audio system at a time, without the express written consent of the RIAA, which comes only comes with an unrealistic royalty fee. If you don't like it, you can return the CD to the record store. Or, not.

    Unfortunately, it's going to be a long struggle before the Record Industry is forced to submit to the fact that recorded music is becoming an economic public good -- because of pratically infinite distribution (at the cost of bandwidth and storage), the good has become non-rivalrous. This does not mean music will disappear, but it does mean that it will not be profitable for a music company to distribute CDs.

    Once the RIAA is forced to accept that, and takes the huge accompanying profit cut, their real business will be the promotion and distribution of the music itself -- it will lower its overhead by allowing P2P-style downloads (let the consumers give up their bandwidth), and will profit by sponsoring artists tours.

    The downside is that record stores will, for the most part, go out of business. Were that there was another way to save our slave-wage friends who are knowledgable, but in every war, there are casualties.

    But sorry, Cringely -- Snapster won't work for long. The fight for free music will be much longer than we hope.

  35. Stop Me If You've Heard This One... by tds67 · · Score: 0, Offtopic
    Hilary Rosen, former President of the Recording Industry Association of American, walks into a fast-food restaurant. A twenty-eight year old male employee of the restaurant recognizes her as she places her order.

    "Say, you're Hilary Rosen, aren't you?" he asks. "You used to work for the R.I.A.A."

    "That's right," Hilary says, more than a little surprised. "Ten years ago."

    The employee's face becomes sad. "Eight years ago, I was in college and getting pretty good grades," he moans. "But then the R.I.A.A. sued me for downloading a few songs off the Internet. I settled out of court, but had to quit college and get a job to pay the money agreed to in the settlement."

    Hilary is unmoved. "That is too bad," she says, "But the law is the law."

    Another employee, an old woman, hears the conversation and walks over to join in. "My grandson used my computer to download music," the old woman says with sadness in her eyes. "The R.I.A.A. sued me, too, even though I didn't know anything about the Internet. Now I have to work here to pay the settlement money."

    Hilary doesn't flinch. "That is unfortunate," she says, "but after all, the law is the law." The old woman shuffles away.

    At this point Hilary decides it would be better to get her food somewhere else and walks toward the door. A thin and attractive woman in her early thirties enters through the door as Hilary approaches it.

    Hilary is pleasantly surprised. The woman sold a million records eleven years ago while signed up with one of the record companies the R.I.A.A. represents, and was famous for a while. They had met at parties on more than one occasion.

    After exchanging greetings, the two talk about old times. After a while Hilary, pressed for time, excuses herself. "It was very nice talking with you, my dear," Hilary says, "but I'm in a hurry and I have to go now." Thinking of the two unhappy workers behind the counter, and their probable dislike of people connected to music, Hilary adds, "By the way, I don't recommend that you get anything to eat here."

    "Oh, you don't have to tell me about that," the former pop star says, "I work here."

    1. Re:Stop Me If You've Heard This One... by Anonymous Coward · · Score: 0
      I think a better ending would have been someone taking a paring knife and cutting Hilary Rosen stem to stern. Only in this fictional account, of course. It'd be illegal to actually advocate violence against corporate scum.

      ~~~

  36. This is absurd by Temporal · · Score: 4, Insightful

    Really, people, step back and look at what we're talking about here. Who cares if it is technically legal? Clearly it is a loophole if it is legal, and that hole will quickly be closed by lawmakers.

    The other point is, why would you want to do this? Does no one here understand the basic concepts of economics? If people don't pay for music, there won't be any music -- or, at least, there will be very little. It costs money to produce. The artists need to eat. Sure the RIAA is evil, but two wrongs don't make a right. How could anyone seriously consider a plan like this without realizing that it is wrong?

    Why do you people believe that you are entitled to free (or absurdly cheap) music? If you're unhappy with the RIAA, don't buy their music, but don't steal it either. You have no right to use something that someone else spent time and money to produce if you are not willing to use it under their terms.

    1. Re:This is absurd by BandwidthHog · · Score: 5, Insightful
      If people don't pay for music, there won't be any music

      Yeah, 'cause nobody writes or records music for any reason other than profit.

      Maybe if music weren't a multi-billion dollar business, true musicians would again gain prominence.
      --

      Quantum materiae materietur marmota monax si marmota monax materiam possit materiari?
    2. Re:This is absurd by El · · Score: 4, Insightful
      If people don't pay for music, there won't be any music

      Damn straight! If not for copyright, Bach, Beethoven, and Brahms would never have published any music, so none of their music would be around today, in the public domain!


      What? You say there was no such thing as copyright when they were composing? Er... never mind!

      --

      "Freedom means freedom for everybody" -- Dick Cheney

    3. Re:This is absurd by Nasarius · · Score: 2, Insightful

      Hyperbole. Just because someone wants to make a living by recording music doesn't mean that they're driven by profit.

      --
      LOAD "SIG",8,1
    4. Re:This is absurd by Anonymous Coward · · Score: 0

      Yeah, never mind that all three were patronized by wealthy European princes and were paid ungodly sums of money to do so.

    5. Re:This is absurd by TheKey · · Score: 1

      I am immoral. I do not have the right, but I do not care. OK? If I feel that an artist deserves my money, I'll show it by buying a t-shirt (and hey, then I'm a walking billboard, too) or going to a concert. And I just don't give a shit what the law has to say about that.

      --
      My Journal - 1,337 fans and countin
    6. Re:This is absurd by MisterMook · · Score: 1

      Just because someone wants to make a living by selling horse carriages doesn't mean that the government should protect them at the expense of the automobile.

    7. Re:This is absurd by KFury · · Score: 1

      Just because it's art doesn't mean that people can't expect to be compensated for it. Are you saying that only people who have day jobs should make music in their spare time, or that artists shouldn't be able to sell paintings?

      What about books? Do you believe authors should only be writing for love, and not to make money? Does that moral rationale only apply to fiction, or does it extend to how-to books as well?

      'Art' is a soft designation, and you run into big problems when you say certain kinds of creative expression shouldn't be allowed to be owned by their creators, but others should be sold in whatever manner they choose.

    8. Re:This is absurd by gilroy · · Score: 1
      Blockquoth the poster:

      Art' is a soft designation, and you run into big problems when you say certain kinds of creative expression shouldn't be allowed to be owned by their creators, but others should be sold in whatever manner they choose.

      You can sell it any way you choose. I just get edgy when you want to use the court system to enforce the way you choose. I don't really belong in the baby-with-the-bathwater crowd who say, jettison all IP law. But I think content creators had best get used to the idea that their "right" to restrict copying (and so create an artificial monopoly, thereby creating economic value for their work) is a construct of the polity. There's no physical reason I can't make a billion copies and distribute them for essentially zero cost, and there's no physical deprivation to the creator.


      All that said, I think that copyright has been a remarkably effective tool for creating economic incentive in achieving the actual goal, which is the progress of science and arts. But I'm with Lessig here: at all times remember that copyright is an artificial construct designed to help balance social goods, not an intrinsic right fundamental to the society.

    9. Re:This is absurd by Eminor · · Score: 1

      Maybe if music weren't a multi-billion dollar business, true musicians would again gain prominence.

      I doubt it. It is really hard to rase funds for equipment (Guitars, PAs, Drums, Proper mics, mixing boards etc.. despite the fact the the computer makes recording cheaper, you still need all of the above equipment plus a decent sound room) by working at a Grocery store.

    10. Re:This is absurd by Anonymous Coward · · Score: 0

      I think I can safely say:

      Whatever the outcome eventually is, people right now (nearly all of them, from customer to publisher to creator) won't like it.

    11. Re:This is absurd by buck_wild · · Score: 1

      "Maybe if music weren't a multi-billion dollar business, true musicians would again gain prominence."

      Yeah. Then we could finally say goodbye to pop music.

      --
      If all you have is a hammer, everything looks like a nail.
    12. Re:This is absurd by Temporal · · Score: 1

      I would LOVE to spend my life sitting on my ass producing open source software for free. Really, I would. I did it all through college, and I still do it whenever I can. However, in this world, people need MONEY to live. Sadly, this means I need a day job to "subsidize" my coding efforts. With 40 hours a week devoted to that, I hardly have any time at all to work on the open source software that I love to write. I could be producing so much more software, and so much better software, if only I could get paid for it.

      The same is true of musicians. Sure, they can do it in their spare time while working other jobs to pay the rent, but the stuff they produce won't be nearly as good, and their won't be much of it.

      Frankly, I think anyone who makes an argument like yours is incredibly naive. Hopefully when you get out of college you'll learn how the real world works.

    13. Re:This is absurd by Temporal · · Score: 1

      AAAA RAGRGRA.GIURSOADI DP.ACSRY D

      You people frustrate me so much.

      Why on Earth do you think you have the inherent right to use stuff I spent time and money producing without paying me for it? If I weren't here, you wouldn't have it, so why shouldn't I get something in return?

    14. Re:This is absurd by groomed · · Score: 1

      If you want to compare the RIAA to horse carriage manufacturers then you should put your money where your mouth is and stop using the product the RIAA is putting out.

    15. Re:This is absurd by leviramsey · · Score: 1

      But just because someone wants to make a living by selling horse carriages does mean (at least in a capitalist system) that the government should protect them from having their carriages taken without their consent.

    16. Re:This is absurd by leviramsey · · Score: 2, Insightful

      And Bach, Beethoven, and Brahms made their money because wealthy people paid them to write it.

      Do you necessarily want a world where most of the music is chosen by those who are wealthy enough to either make it themselves or to hire someone to make it for them?

    17. Re:This is absurd by Anonymous Coward · · Score: 0

      Hey, you know how politicians have always been patronized by rich folks, and now there's tons of people organizing on the Internet to finance Howard Dean? We can do that with musicians too.

    18. Re:This is absurd by $lame_nickname_here · · Score: 1

      I really do believe that Cringley's article is to make people think. So that people get past the crappy system of today. He showed profit margins far and above todays profit margins. Why would it be so hard for the record companies to do this. They don't even have to buy the 100,000 cds.

    19. Re:This is absurd by Anonymous Coward · · Score: 0

      You mean just like now?

    20. Re:This is absurd by Anonymous Coward · · Score: 0

      I wish there was a "+1 Fuckin' A!" mod :)

    21. Re:This is absurd by KFury · · Score: 1

      "You can sell it any way you choose. I just get edgy when you want to use the court system to enforce the way you choose. I don't really belong in the baby-with-the-bathwater crowd who say, jettison all IP law. But I think content creators had best get used to the idea that their "right" to restrict copying (and so create an artificial monopoly, thereby creating economic value for their work) is a construct of the polity. There's no physical reason I can't make a billion copies and distribute them for essentially zero cost, and there's no physical deprivation to the creator."

      That argument is full of shit. Deprivation of financial remuneration is a cost, whether represented by physical objects or numbers in a bank account. By your logic, a CEO pocketing a company's profits instead of dispersing them as dividends to stockholders isn't wrong, because it doesn't represent a 'physical deprivation to the shareholder.' This is bunk, but it's not even the most important point, which is this:

      By copying copyrighted works you're breaking a contract you made when you purchased the work.

      If I create an original work, and I offer to sell it to you on the condition that you don't make copies for other people, you have the choice to buy it and not make copies, or to not buy it at all. If you don't want to abide by such a restriction, then don't buy it in the first place. Buying it with that understanding (branded by the copyright symbol) and deciding the restriction is unfair is hardly a defensible position. It's just a child's argument to get what you want while pretending it's not only okay, but imperative.

    22. Re:This is absurd by 0111+1110 · · Score: 1

      Why on Earth do you think you have the inherent right to use stuff I spent time and money producing without paying me for it? If I weren't here, you wouldn't have it, so why shouldn't I get something in return?

      You should. But that doesn't mean you need to make absolutely sure that not one person can ever listen to a bit of it without paying huge sums of money. As with patents, if you *really* don't want other people to listen to your music for free then just don't release it to the public. Because as soon as you do, it becomes data or information, and as such is copyable. I suppose you could only play at live concerts and have metal detectors at the door to search for recording devices.

      In the end, people have to actually choose to pay you for your work and fining people hundreds of thousands of dollars or putting them in jail for 5 years for listening to it seems a bit counterproductive to me.

      --
      Quite an experience to live in fear, isn't it? That's what it is to be a slave.
    23. Re:This is absurd by MisterMook · · Score: 1

      If I didn't give you the right to make a living on it in the first place then the whole thing would be a non-issue. Copyright is a granted right, something understood by Thomas Jefferson and clearly not by yourself.

    24. Re:This is absurd by 0111+1110 · · Score: 1

      Just because it's art doesn't mean that people can't expect to be compensated for it.

      It also doesn't mean they can. When a painter creates a work on a canvas, he does not expect to instantly sell 500,000 copies of it. The advantage of creating something unique that can also be copied is that all that multiplication can add up to a lot of money. But this particular sword is sharp on both edges. Money is both an advantage and a limitation of this medium.

      --
      Quite an experience to live in fear, isn't it? That's what it is to be a slave.
    25. Re:This is absurd by elflord · · Score: 1
      Just because someone wants to make a living by selling horse carriages doesn't mean that the government should protect them at the expense of the automobile.

      The idea of putting value on intellectual and creative works is far from obsolete. In fact, the trend over the last 100 years or so has been to place more value on such works, and the more modern the economy, the greater the likelihood that such work is recognised as valuable.

    26. Re:This is absurd by elflord · · Score: 1
      If I didn't give you the right to make a living on it in the first place then the whole thing would be a non-issue. Copyright is a granted right, something understood by Thomas Jefferson and clearly not by yourself.

      Even without copyright, one could distribute music etc with a EULA that would explicitly forbid copying. The right to enter into a contractual agreement is hardly an artificial construct, and the expectation that a contract will be enforced in a court of law is something that exists in any civilised, free society.

    27. Re:This is absurd by elflord · · Score: 1
      As with patents, if you *really* don't want other people to listen to your music for free then just don't release it to the public.

      Why shouldn't he be able to release it to the public with conditions of use ?

      Because as soon as you do, it becomes data or information, and as such is copyable.

      Yes, someone can enter into a usage agreement in bad faith. But don't go crying when they get their pants sued off for doing so.

      In the end, people have to actually choose to pay you for your work and fining people hundreds of thousands of dollars or putting them in jail for 5 years for listening to it seems a bit counterproductive to me.

      I agree -- make the punishment fit the crime. I think freeloaders should be sued or fined. The best way to punish a cheapskate is to take his money.

    28. Re:This is absurd by MisterMook · · Score: 1
      The idea of putting value on intellectual and creative works is far from obsolete. In fact, the trend over the last 100 years or so has been to place more value on such works, and the more modern the economy, the greater the likelihood that such work is recognised as valuable.
      Horse carriages are far from valueless either, that doesn't change the fact that they aren't as intrinsically valuable now that technology has made them so. Your 'more modern' economy is simply changing faster than you seem to give it credit, and tomorrow's economy is one where the technological genie can't be put back in the bottle no matter what legislatures are bought and paid for.
    29. Re:This is absurd by Temporal · · Score: 1

      And your point is...?

    30. Re:This is absurd by daffmeister · · Score: 2, Insightful
      Damn straight! If not for copyright, Bach, Beethoven, and Brahms would never have published any music, so none of their music would be around today, in the public domain!

      And Mozart died a pauper and was buried in an unmarked mass grave. There's a big thank-you from society.

    31. Re:This is absurd by BandwidthHog · · Score: 1

      Jeez people, I wasn't suggesting we confiscate their tip jars, just that rock and roll should *not* be a multi-billion dollar cash cow for the suits. I'd rather see a music "industry" where 1,000 bands make 50,000 each, rather than 10 bands make 5 million each and the other 995 have to pack it in.

      --

      Quantum materiae materietur marmota monax si marmota monax materiam possit materiari?
    32. Re:This is absurd by richieb · · Score: 1
      If I create an original work, and I offer to sell it to you on the condition that you don't make copies for other people, you have the choice to buy it and not make copies, or to not buy it at all.

      That's correct. But currently the condition is that I don't make a copy of your work for 150 years. I think that's excessive.

      Not only that, you can control what kind of creative work I can do, because you can say that I derived mine from yours.

      If the copyright term was 14 years, I'd be much happier. I think 150 years is unfair, especially since your own work is derived from other creative works that came before hand.

      --
      ...richie - It is a good day to code.
    33. Re:This is absurd by Pofy · · Score: 1

      >Why on Earth do you think you have the inherent
      >right to use stuff I spent time and money
      >producing without paying me for it?

      Why on Earth do you think you have the right to expect people to pay you money for something just because you spent time and money on it?

      We aren't talking about a physical object here, we are talking about ideas, thoughs and non physical "creations" here. Things that can without any cost to anyone be mass produced (that is copied) without any need for physical material and so on, and on top of that, anyone can get it without removing it from someone else. That is, just because you use the idea, doesn't mean anyone else lose it. So why should anyone get money from such a thing to start with? Should thinking be taxed? If someone figure out a say to move the legs in such a way that anyone can run at 50 miles an hour, should it be illegal to run that way without paying him? (Well, the car industry probably would like that). What if I set up a sign telling that it is faster to follow another road than the one the signs mention, should people be forced to pay you if they get to know about it and travell the other way? Regardless of if the idea from your sign or a friend who saw your sign and so on? After all, you probably took time and effort and perhaps even money into figuring out it was shorter and faster, so why should you not be payed for it? Such things are just silly in my opinion.

      So no, there is no "right" for anyone to get payed just because they spend time or money on something even if others can take advantage of it as long as there is no "loss" (other than the no ability to gain money).

      > If I weren't
      >here, you wouldn't have it, so why shouldn't I
      >get something in return?

      If you hadn't told others, no one would have it and you would have no problems, if you don't want others to take "advatage" of your time and thinking and whatever non physical ideas and creations you make, then don't tell anyone about it.

    34. Re:This is absurd by Pofy · · Score: 1

      >Even without copyright, one could distribute
      >music etc with a EULA that would explicitly
      >forbid copying.

      Ehh, sure, but everyone else on the planet who did NOT buy it, would not be bound by the EULA and hence could copy it without a problem. THAT is what copyright is all about, copying it to create a new identical product.

    35. Re:This is absurd by Pofy · · Score: 1

      >By copying copyrighted works you're breaking a
      >contract you made when you purchased the work.

      No, you don't break a contract, you break the copyright law!!!! Huge difference. You don't make any contracts when you buy something (well usually not), since there is no need for it since the LAW allready contains the rules what you can and can not do. One can of course make additional contracts but that does not typically happens when you buy/sell music, books and so on.

      >If I create an original work, and I offer to
      >sell it to you on the condition that you don't
      >make copies for other people, you have the
      >choice to buy it and not make copies, or to not
      >buy it at all.

      Again, you never have such contracst that people are made to agree upon when you buy for example a book (and non agreed to "understandings" doesn't really matter much). There is no need for such a contract though, since the law ALWAYS apply and tells you that you can't make copies. The law do specify though that the the copyright holder can grant such rights to others (through for example a contract).

      Now, even if you had a situation where the slae included a contract to not copy (for example), you would not acomplish anything since everyone else could STILL copy it since they aren't bound by that "upon sale" contract. As it is, they STILL can't do it, since the copyright law applies to everyone, both the buyer and everyone else and they can't make copies EVEN if they have made no agreement or contract to not copy it.

    36. Re:This is absurd by Alsee · · Score: 1

      The other point is, why would you want to do this?

      The RIAA is that they could in fact have been highly successful and profitable selling non-crippled downloads of their entire catalog of music at reasonable prices under the perfectly good copyright law we had just a few years ago. They simply refused to do so. Instead they are hellbent on a campaign of rewriting the law as they see fit, or commit suicide in the attempt.

      Some highlights of the RIAA's "accomplishments" include legally EXTERMINATING the entire DAT market / technology with the Audio Home Recording Act and getting the DMCA passed which I can't even begin to get into, plus several other nasty laws. And now they are pushing for even worse laws. Their plans for the future include eliminating fair use and ensuring that all computers and devices will be crippled with TCPA.

      If the RIAA chooses to self destruct then fine, but in the mean time they are a menace to society. If the RIAA wants to fight technology rather than adapt to it then the faster the RIAA dies the better. Eventually technology always wins.

      Does no one here understand the basic concepts of economics? If people don't pay for music

      You didn't fully understand his intent. Unfortunately he didn't really expand on this aspect. Did you notice in the middle where he pointed out that when the RIAA was gone the company would need a new source of CD's? Did you notice at the end where he said the company should probably plow profits back into the music industry? Plowing profits into the music industry = giving artists money to make new CD's.

      So his intent was to get the RIAA killed off in order to replace it with a better system. He just left the details of that future system as details that would be worked out later. I think the obvious step at that point would be to allow any artist to submit their work to the corporation and get paid per download.

      Essentailly it's what the RIAA should have done at five or six years ago. Large volumes of cheap downloads, no encryption, their full catalog of music, and carry every independant artist who wants in.

      Selling downloads is almost pure profit. And on those terms people WILL pay for it. You can in fact beat P2P (free) if you provide a usefull and cheap service.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    37. Re:This is absurd by Temporal · · Score: 1

      Your examples all sound silly because they are contrived. No, it doesn't make sense to copyright (or patent -- you seem to be confusing the two) a single sentance. Let's take a real-world example, shall we?

      Say I spend four years developing a new programming language. Say this new language allows software to be developed in a mere fraction of the time it would take to write in C, while at the same time making the software more efficient and robust. Such a thing would be an incredible help to our society, obviously. Better software improves just about every industry in existence, which in turn leads to more money and better living standards for just about everyone. We want this, right?

      Now, say that, in order to produce the language, not only did I have to pay for my own livelihood (and, perhaps, that of my wife and children, if I had any), but I had to pay for computer equipment, as well as pay salaries for several full-time assistants. The total cost could easily be over a million dollars.

      You think that people should be entitled to use this language without giving me anything?

      Well, ok, let's just pretend for a minute that your position doesn't sound silly. Now, say I'm this guy, I have the idea for this programming language, but I'm living in a society without copyright. I know that it will take a million dollars to develop, and that I'm unlikely to be able to make any money off of it. Since it is completely impossible for me to fund development, it remains a mere idea. Society loses out on a wonderful invention.

      How can you think that things would be better that way?

      Information has value. If you create something of value, you should be able to make money off of it. As a matter of fact, in order for a capitalist economy to work, you must be able to make money when you create value. Otherwise, people won't create value. Copyright makes it possible to make money off of information -- when that information has value.

      Don't give me shit about "people will do it anyway if they enjoy their work". This may be true in a few cases, but most people don't have that kind of free time -- they have to make money in order to eat. If not for copyright, there would be far fewer programmers and artists, and they would produce far less software, music, movies, or whatever. If you think life would be better that way... well, you're dillusional.

      As for your comment on simply not releasing my work... I fail to see how that helps anything. So, then I have spent a million dollars producing a language and not only do I not get paid for it, but no one uses it either? Huh?

    38. Re:This is absurd by Sanction · · Score: 1

      How delightfully naive, you think there is a meaningful link between you paying the music conglomerates and the artist getting paid? Most of them would make more on a street corner.

      --
      Well I'm the doctor and I say you're dead, so shut up and take it like a man!
    39. Re:This is absurd by BigBadBri · · Score: 1
      What about someone with access to technology that allows them to duplicate carriages at will?

      Should a government automatically protect the monopoly of the horse carriage manufacturer?

      In a truly free market, the carriage duplicator would be free to make as many copies as he wanted, and the carriage maufacturer would be forced to innovate (making better or cheaper carriages) and keep his market that way.

      The purpose of copyright/patents is to allow the carriage manufacturer a reasonable time in which to profit from his innovation, not to grant him a perpetual right to such profits.

      Current US copyright law is verging on the obscene - the original term of 14 years was reasonable law made by reasonable men, not bad law made by payola politicians.

      --
      oh brave new world, that has such people in it!
    40. Re:This is absurd by Sanction · · Score: 1

      Then what about the contract the copyright holders made with the citizens of their country to place their work in the public domain after a limited time. If twisting of the law to help them is OK, then what is the problem if consumers twist back?

      --
      Well I'm the doctor and I say you're dead, so shut up and take it like a man!
    41. Re:This is absurd by KFury · · Score: 1

      Jeez people, I wasn't suggesting we confiscate their tip jars, just that rock and roll should *not* be a multi-billion dollar cash cow for the suits. I'd rather see a music "industry" where 1,000 bands make 50,000 each, rather than 10 bands make 5 million each and the other 995 have to pack it in.

      I fully agree with this, but the way to do it isn't to go copying music everywhere,it's by creating distribution methods that do a legal end-run around the whole label and manufacturing infrastructure.

    42. Re:This is absurd by Temporal · · Score: 1

      Selling downloads is almost pure profit. And on those terms people WILL pay for it. You can in fact beat P2P (free) if you provide a usefull and cheap service.

      I completely agree. I would love to be able to buy music directly from artists' web pages and skip the RIAA. And, yes, the RIAA may be a menace to society. But that doesn't make this plan reasonable. If you don't like the RIAA, don't listen to the music they sell. What's so hard about that? There's lots of great music out there that doesn't come from them. Why do you have to pirate their stuff? Just don't listen to it.

      If the music is good enough that someone is willing to pay the RIAA's inflated prices to get it, then they might as well do so. That's how capitalism works. If bands can make a whole lot more money by selling music directly over the net, then they will. It may take a bit of time to transition, but it will happen. There's no need to use vigilante methods to kill the RIAA prematurely.

    43. Re:This is absurd by elflord · · Score: 1
      Ehh, sure, but everyone else on the planet who did NOT buy it, would not be bound by the EULA and hence could copy it without a problem.

      No, they couldn't. They wouldn't have a way to legitimately acquire the product without agreeing to those terms and conditions. So for them to redistribute would be much like trafficking in stolen goods -- they are not direct infringers, but they are party to an infringement.

    44. Re:This is absurd by elflord · · Score: 1
      Horse carriages are far from valueless either, that doesn't change the fact that they aren't as intrinsically valuable now that technology has made them so.

      Technology makes creative and intellectual works more valuable, not less so, because the production of physical goods becomes increasingly automated, which means that more people spend more time doing "brain work".

      Your 'more modern' economy is simply changing faster than you seem to give it credit,

      Perhaps, buyt the changes have nothing to do with devaluaing intellectual/creative works.

      and tomorrow's economy is one where the technological genie can't be put back in the bottle

      This is an argument-by-slogan. It can't be refuted in this form, because you're not saying anything.

    45. Re:This is absurd by MisterMook · · Score: 1
      Technology makes creative and intellectual works more valuable, not less so, because the production of physical goods becomes increasingly automated, which means that more people spend more time doing "brain work".
      Do you comprehend what Supply & Demand is all about? If I suddenly possess a machine that conjures candy bars from the ether for free, do all the other candy bars retain their value? More intellectual/creative works devalue each other, since there is a finite amount of money to spend upon each.

      Technology is changing the dynamics of supply & demand more than anyone is "stealing music". Just because you can try to legislate artificial supply bottlenecks doesn't mean that you're right to do so.
    46. Re:This is absurd by elflord · · Score: 1
      More intellectual/creative works devalue each other, since there is a finite amount of money to spend upon each.

      A subtle but important distinction you have missed here is that between an intellectual/creative work (an intangible object) and a copy of that work. Obviously, if it becomes easy to copy a work, the value of a copy goes down a long way.

      Technology is changing the dynamics of supply & demand more than anyone is "stealing music".

      It is changing the supply and demand of copies of the artistic/intellectual works. This merely means that it's cheap to copy those works. It does not mean that the work itself is less valuable, and it does not mean that people will no longer be willing to pay for the right to enjoy the benefits of these works.

      Just because you can try to legislate artificial supply bottlenecks doesn't mean that you're right to do so.

      Well, of course. "because I can" is never a morally just reason. However, it is you and not I who makes that argument (That because intellectual works can easily be copied, they should be) THere are a lot of laws that are easy to break, but that doesn't mean that those laws do not serve a useful purpose.

    47. Re:This is absurd by Pofy · · Score: 1

      >Information has value.

      It has a value that people give it. If people don't think it has a value, there is no value in it. There isn't any inherant value in information in itself. Granted, copyright laws give information higher value than it would without it.

      >If you create something of value, you should be
      >able to make money off of it.

      Why? You may equal value with ability to make money, but that of course means that if no one is willing to pay you anything, it is of no value. So basically it only has value if someone is willing to give you money for it. Since ideas and information can easilly be copied (and created) without any need to imput money, why should someone pay money to do it? In my opinion, you should not have to pay for something that doesn't cost anyone else additional money. Copying does not do that. Sure, someone might still have spent moeny before, but that is their chose to do or not.

      >As a matter of fact, in order for a capitalist
      >economy to work, you must be able to make money
      >when you create value.

      BUt you assume information has some inherant value. Physical things do have some inherant value (although it may be next to none of course). Information in itself does not since it can be copied and basically created at no cost. there might be some cost to create the information initially but on the other hand, this might not be needed either. Even so, just because you initially had to use money to come up with some information, does not mean the information take over the value of that money.

      So I don't agree with the fact that information has value inherantly. It only has some value when someone want to pay for it. AT times someone might want to pay for it even if it would be possible to instead make ones own copy, sometimes one don't. But to prevent someone from creating some information by himself when it would not cost someone some additional money is in my opinion stupid.

      >Copyright makes it possible to make money off of
      >information -- when that information has value.

      Copyright, based on how one view it, is not fundamentally meant to allow people to make money on something. although it makes it possible. In my view, copyright has among other one function to prevent others from making money on what you came up with.

      In addition, I am of the opinion that information should NOT be something you should be able to make money on. (and I assume that when we talk about information here, we talk about things covered by copyright, not really "information" in the normal sense since that is not covered by copyright to start with).

      >Don't give me shit about "people will do it
      >anyway if they enjoy their work".

      I won't. On the other hand, to imagine that no one would do anything if we removed copyright is equally wrong. That wouyld be like saying that no one would write any music at all without copyright, which is an equally wrong statement.

      However, if something DO have value, people WOULD pay for it, or it would not have any value to start with. Value is what people are willing to pay for something. Copyright sets up artificial values on things that would not have value otherwise. One might think that is good or bad, personalyl I am mostly of the "bad" opinion.

      > This may be true in a few cases, but most
      >people don't have that kind of free time -- they
      >have to make money in order to eat. If not for
      >copyright, there would be far fewer programmers
      >and artists,

      Of course, but why create laws that create new type of work or more work of some specific type? Sure, it is noce when the goverment create work for the people, but it could be done in other better ways in my opinion. So no, claiming that there would be fewer programers if there is no copyright, although a proably correct statement, is not a reason to have copyright laws. If so, we might as well have a law that for example say that everyone talking a bath at the beach mu

    48. Re:This is absurd by Pofy · · Score: 1

      >No, they couldn't. They wouldn't have a way to
      >legitimately acquire the product without
      >agreeing to those terms and conditions.

      They are not aquiering it, they don't NEED to aquire it, they are making a copy of someone else. You don't need to aquire anything, you just create a copy. That IS the difference.

      Besides, remember that NOTHING in the EULA would apply to them (the ones copying it), so what else (if there is no copyright law) makes it a need to agree to the EULA when creating your copy? The only thing that "legitimately" gives such rights is copyright laws and the example was about a situation with no such laws.

    49. Re:This is absurd by MisterMook · · Score: 1
      A subtle but important distinction you have missed here is that between an intellectual/creative work (an intangible object) and a copy of that work. Obviously, if it becomes easy to copy a work, the value of a copy goes down a long way.
      If the distinction between a copy and the intangible concept of an idea were so succinct then copyright law would have never have worked. An idea and it's copy are always the same, even to the point where derivative inventions and made a nod of when the arguement can (and has been) made that all creative works are derivative. If the value of a copy has become essentially nil then what is the purpose of falsely propping up a higher value? And since there was obviously creative work done in prior times when there weren't such restrictive and draconion laws in place as protections as there are today, why should we tout our own system as better?
      It is changing the supply and demand of copies of the artistic/intellectual works. This merely means that it's cheap to copy those works. It does not mean that the work itself is less valuable, and it does not mean that people will no longer be willing to pay for the right to enjoy the benefits of these works.
      Thats right, and it follows that if people are obviously willing to pay for the right still but the corporate/legal entities are arguing that they're not that the true issue is one of distribution controls and pricing. Since the people grant the distribution control in the first place by granting copyright and the people are making a fairly clear case for lowering prices by their economic choices then I don't see what the problem is. Except that the government is being manipulated by wealthy 'corporate citizens' instead of their true constituencies.
      Well, of course. "because I can" is never a morally just reason. However, it is you and not I who makes that argument (That because intellectual works can easily be copied, they should be) THere are a lot of laws that are easy to break, but that doesn't mean that those laws do not serve a useful purpose. That is, of course, assuming that you agree that they're serving their useful purpose of moving creative works into the public domain. By the same token you might argue that laws preventing the picketing of hazardous waste sites serve useful purpose, when in fact they're more likely 'public good' laws lobbied by corporations that don't represent anything of the sort.
    50. Re:This is absurd by elflord · · Score: 1
      An idea and it's copy are always the same,

      No, they are not. They are quite different. To produce a copy of an existing creative/intellectual work is not comparable to having produced the original.

      If the value of a copy has become essentially nil then what is the purpose of falsely propping up a higher value?

      It is not the copy itself that has the high value. It is the right to enjoy a creative work that has value. That is why people are willing to spend money on CDs, software, etc.

      And since there was obviously creative work done in prior times when there weren't such restrictive and draconion laws in place as protections as there are today, why should we tout our own system as better?

      There are a number of reasons. One is that it wasn't cheap to copy until recently. The consumer tape recorder is only about 30 years old.

      Another reason is that the economy has changed since then. Production of physical goods is increasingly automated, and brain-work is increasingly more important. For example, is it often more economical to automate a lot of work, and pay the person who designs the automation system. Brain work is no longer merely something to keep the idle and wealthy amused -- it is a critical part of the modern economy.

      Thats right, and it follows that if people are obviously willing to pay for the right still but the corporate/legal entities are arguing that they're not that the true issue is one of distribution controls and pricing.

      I'm not qwuite sure what you're saying above, so excuse me if I get it wrong -- but I think the issue here is that if the right to enjoy the creative work were conditional on payment, more people would be willing to pay. I think it's being argued that a lot of people are looking for a free ride.

      Since the people grant the distribution control in the first place by granting copyright and the people are making a fairly clear case for lowering prices by their economic choices then I don't see what the problem is

      That's like saying that we should lower prices to reduce shoplifting. Society has no interest in pandering to the whims of freeloaders and whiny slashdot kiddies.

    51. Re:This is absurd by MisterMook · · Score: 1
      That's like saying that we should lower prices to reduce shoplifting. Society has no interest in pandering to the whims of freeloaders and whiny slashdot kiddies.
      But this is the essential issue: Society is all of us, not just corporations, and we empower the laws in the first place. Recognizing a large enough constituency is't 'pandering', it's being responsive to voters.
    52. Re:This is absurd by Alsee · · Score: 1

      If you don't like the RIAA, don't listen to the music they sell. What's so hard about that?

      Sounds like a fair deal to me so long as the RIAA agrees to help repeal the laws they helped get passed and they RIAA helps oppose the TCPA and related inititives they've been promoting.

      When the RIAA just mucked around in the Music arena price fixing, abusing artist contracts, manipulating radio playlists, etc etc, they were just your typical corporate greedy bastards. Big deal, no problem.

      But isn't about music and it's not about capitalism.

      This is about RIAA is stomping around capitol hill getting bad law passed, obliterating rights, and killing technologies. That's a whole 'nother ballgame. That's what I mean by menace to society. This is about the law and rights and freedom and technology.

      The RIAA could have happily gone about their greedy ways under existing law and adapting to new technologies and made lots and lots of of money. But they declared war. The longer it drags on the more damage they do. The sooner the RIAA dies the better. Of course I'd be perfectly happy to see them go back to business and drop the legal/technology offensives, but it doesn't look likely.

      When I was talking about downloads being pure profit etc. I was merely explaining that destroing the RIAA does NOT equal artists not getting paid. Cringly's proposal would be disruptive, not destructive (except to the RIAA itself). I am NOT anti-copyright. I am trying to protect copyright from recent harmful changes.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    53. Re:This is absurd by elflord · · Score: 1
      But this is the essential issue: Society is all of us, not just corporations, and we empower the laws in the first place.

      Right, I agree with this. However, I also believe that the interests of society (not just corporations) are served by the production of creative/intellectual works, and the production of such works (usually) requires financial compensation. Even the free riders are ultimately served by the very mechanism that they cheat, because they depend on others to fund the works that they enjoy.

      Recognizing a large enough constituency is't 'pandering', it's being responsive to voters.

      Free riders, by definition, do not serve the interests of society. Therefore, serving the interests of free riders is in direct conflict with serving the interests of society.

      Now one could argue that a relatively high piracy rate is due to prices being "too high". I suppose this is ultimately what you're getting at when you say that the people are making a fairly clear case for lowering prices by their economic choices.

      However, I simply don't buy this. I believe the reason people pirate is because they can. I think we agree that this is in fact a large part of the reason. Ferraris are, IMHO, also "too expensive", yet they aren't stolen as frequently as music and software are pirated. One of the main reasons this is the case is that it is much harder to steal a car and get away with it.

    54. Re:This is absurd by pclminion · · Score: 1
      Does no one here understand the basic concepts of economics? If people don't pay for music, there won't be any music -- or, at least, there will be very little.

      That's right. If people don't pay for software, there won't be any software -- oh wait. There's a few hundred thousand people making software for free. Sorry.

      Your statement is basically saying "Who the hell would make music, except for money?" This shows an extreme ignorance of the motivations of many artists.

      After all, who the hell would code, except for money.... I've never heard something so blatantly dumb in my life.

    55. Re:This is absurd by MisterMook · · Score: 1
      I also believe that the interests of society (not just corporations) are served by the production of creative/intellectual works, and the production of such works (usually) requires financial compensation.
      Society IS served by the creation of creative works, though I wonder what your basis of thought is that creation requires financial compensation. Open source projects and even millions of webpages prove that people have ideas and invest in them without any expectation of payment. I'm not even saying that people shouldn't be paid for creative works (that would be fairly counterproductive give what I do), just that the ransacking of the concept of copyright and the public domain serves no one. You can't protect people's right to create and simultaneously not recognize that the real purpose of copyright is separate from those individuals, it's a common resource owned by everyone no matter how many laws are perverted to make that not so.
    56. Re:This is absurd by MisterMook · · Score: 1
      I fully agree with this, but the way to do it isn't to go copying music everywhere,it's by creating distribution methods that do a legal end-run around the whole label and manufacturing infrastructure.
      Which is what the public is having difficulties fighting against, since RIAA legal kung fu is superior to John Q's. The public doesn't have a millions of dollars in operating budget political machine wining and dining Congressmen who seem blissfully willing to sign away on laws that fundamentally change the orientation and intent of the law, we're not being represented in any meaningful way. Instead, rather than engage in a debate the lobby labels everyone as just 'whining thieves' or somesuch - how can you do a legal end around against that without getting on a soapbox and demanding that your constituency is heard?
    57. Re:This is absurd by KFury · · Score: 1

      " how can you do a legal end around against that without getting on a soapbox and demanding that your constituency is heard? "

      By 'legal end-run' I mean an end-run that is legal, not a legal battle. CD Baby is an excellent example of a means for artists to sell their music to listeners without selling their souls (and most of their profits) to the RIAA.

  37. If a corporation has the same rights as a person.. by Anonymous Coward · · Score: 0

    Remind me... how did that Nike case turn out?

    I a corporation is a corpus made up on it's individual stock holders, then we just might see the advent of right ear, left ear licensing of content. ...the real trick, of course, is controling the value of the stock (assumeing it is a valid loophole) and verifying that the client the content is being distributed to is indeed a "stock holder". I guess a bit of PKI magic and use of already passed legislation (digial signature laws) can solve the verification issue.

    OK, so the worse case scenario is that every song becomes a listed corp (oh, that's the tricky bit... getting listed; otherwise, it's penny stocks for everyone). What's to keep a parent company from being a stock holder of each and every song and then circumventing the entire thing buy providing "one stop shopping". Market dilution at it's worst...

  38. Cringly of all people by Timesprout · · Score: 1

    Fucking loon. After all his rabid crap. Lets see him go OJS(Open Journalistic Source), work for free and distribute it to whatever fool is willing to purchase

    --
    Do not try to read the dupe, thats impossible. Instead, only try to realize the truth
    What truth?
    There is no dupe
  39. Thats the hard way of doing it! by El · · Score: 1

    Why not provide a DVD player with two drives; put a store bought DVD in one, and an "edit" list in the other. Software looks at the edit list and figures out what scenes/words to omit. Surely a bunch of pointers into frames in a copyrighted movie doesn't infringe on the copyright for that movie, does it?

    --

    "Freedom means freedom for everybody" -- Dick Cheney

    1. Re:Thats the hard way of doing it! by Anonymous Coward · · Score: 0

      Surely a bunch of pointers into frames in a copyrighted movie doesn't infringe on the copyright for that movie, does it?

      Sure it does. For details ask the l33t MPAA programmers trained at Harvard Law.

      BTW, how do you feel about book stores selling books with passages deemed not up to comunity standards blacked out? Suppose you live in a community where the bible-thumping majority has driven the competition away and all that is left are the community standards promoting variety? Do you think the authors think it reasonable for you to edit their works and distribute them under their names?

    2. Re:Thats the hard way of doing it! by El · · Score: 1

      I think it's absurd that almost every Oscar-winning movie made in the last decade has an R rating, so I can't watch them with my daughter. And I think if people want to read literature without the "f" word on every page, they should be able to buy a copy without it. It's all about choice, giving the customer what they want. The old excuses don't fly anymore; we have the technology to publish-on-demand print, audio, and video media. Why are we still stuck with an archaic "one size fits all" distribution philosophy?

      --

      "Freedom means freedom for everybody" -- Dick Cheney

    3. Re:Thats the hard way of doing it! by El · · Score: 1
      Suppose you live in a community where the bible-thumping majority has driven the competition away and all that is left are the community standards promoting variety?

      Do what people in the bible belt have always done: patronize those mail-order firms that promise to send you merchandise in a "plain brown wrapper"! I've always been nervous about shopping in "adult" establishments anyway -- afraid I'll run into my paster/priest/rabbi in there!

      --

      "Freedom means freedom for everybody" -- Dick Cheney

    4. Re:Thats the hard way of doing it! by utdpenguin · · Score: 1

      I'd have no problem with a book store doing this!
      Why? Well if I don't want the boosk edited, which I don't, then I jsut go to another bookstore and buy hte compelte book. The bookstore you imagine would be seeling edited books to people who want edited books. These people could buy the original and edit it themselves and you wouldn't ocmplain. So why can't a bookstore so market it? Now, if this was the _only_ bookstore in town, that would be a differnet story.

      --
      In Soviet Russia you dant have to put up with these crappy jokes
    5. Re:Thats the hard way of doing it! by Anonymous Coward · · Score: 0

      > It's all about choice, giving the customer what they want. The old excuses don't fly anymore; we have the technology to publish-on-demand print, audio, and video media. Why are we still stuck with an archaic "one size fits all" distribution philosophy?

      What you want is to be able to go into any art gallery, bookstore, etc and be able to customize anything you see there to be exactly what you want.

      Except that's *not* what the artists are selling - they're selling their artwork, as-is, and if you don't like it, they don't want you to buy it and show it off as if it were an original, and under the original artist's name.

    6. Re:Thats the hard way of doing it! by El · · Score: 2, Insightful

      And if I want to buy the artist's masterpiece, take it home, and paint Mickey Mouse(TM) into the middle of it, so what? It's mine, I bought and paid for it, I should be allowed to do anything I want with it. Now, if I asked the artist to paint Mickey into the scene, I could reasonably expect the artist to refuse. But I'm not buying directly from artists. I'm buying from corporations that pay the artists for "work for hire". These corporations have a fiduciary responsibility to maximize shareholder returns. If that means the Disneyfication of the Sistine Chapel, then so be it!

      --

      "Freedom means freedom for everybody" -- Dick Cheney

    7. Re:Thats the hard way of doing it! by Anonymous Coward · · Score: 0

      Except that's *not* what the artists are selling - they're selling their artwork, as-is, and if you don't like it, they don't want you to buy it and show it off as if it were an original, and under the original artist's name.

      You dumb fuck. I bought the goddamn disc, I'll do whatever the hell I want with it. You can shove that little morality lesson up your ass.

      You don't want me modifying your art, then don't sell it to me. Once that money changes hands though, it's no longer yours. If I want to take it home and dump a shit on it, I'm going to, and if you don't like it you can go fuck yourself.

    8. Re:Thats the hard way of doing it! by KoalaBear33 · · Score: 1

      If those movies have an R rating, you shouldn't be letting your daughter watch it... or at least that's how it is supposed to work. It all comes down to age though. If your daughter is, say 12 years old, I don't think she should be watching any R films at all (I don't care why the film was slapped with the R--just my opinion). However, if she is say 15 or 16 then I'm not too sure what to say. In this case the content can play a role (eg. one film may get R simply for coarse language; whiel another may get R for nudity; yet another gets R because of a combination of all).

      As far as Oscar winning films being mostly R, what's the problem with that? Those awards are for ADULT films, and hence should reflect that. If a Disney film kept winning the Oscars, I would have a problem with it--but I guess you wouldn't :)

      KoalaBear33

      --
      ......The worst thing in my life happened when the stock market started mattering more than the economy
    9. Re:Thats the hard way of doing it! by WNight · · Score: 1

      Why not have stores edit books? As long as they say the book is edited, it's not misrepresentation.

      When you sell a work, be it a book, a painting, or a movie, you're giving up your rights to that copy. The purchaser can read it, burn it, or quote it in a critical essay. You can't tell that how they read it any more than you can tell them they can't sell it. If they choose to read every second page, or only the racy bits, it's their right.

      I'll never purchase an edited copy of a movie or book, but that's only because dirty words don't offend me. I fully support the rights of other people to do so.

  40. Not Fair Use by Laur · · Score: 5, Informative
    I'm surpirsed he said that his lawyer friends found no problem with this. From the earlier /. interview with the DOJ IP Lawyers, Question #7:

    The doctrine of fair use was originally adopted by judges ruling in early copyright cases. Ultimately, Congress incorporated the doctrine into the Copyright Act of 1976, where fair use is now codified at Section 107 of Title 17 of the U.S. Code. In creating section 107, Congress listed four factors to be considered in determining whether a use is fair or not:

    (1) the purpose and character of the use, including whether the use is of a commercial nature or is for nonprofit educational purposes;

    (2) the nature of the copyrighted work;

    (3) the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and

    (4) the effect of the use upon the potential market for or value of the copyrighted work.

    These factors are essentially the same factors that had been used over the years by judges, and Congress's stated intent was to preserve the fair use doctrine as it had evolved. However, as many courts have pointed out over the years, whether something constitutes fair use is very fact-specific. It is difficult to craft a clear, bright-line rule that explains which particular uses of a work are fair use and which are infringement. In short, the exact parameters of fair use are often determined based on the facts of specific cases.

    Just from a quick look Cringely's idea, while novel, seems to violate several of the 4 criteria. This would be copyright infringement for comercial gain on a massive scale. No way any judge would believe that this falls under the intent of fair use.

    --
    When you lose something irreplaceable, you don't mourn for the thing you lost, you mourn for yourself. - Harpo Marx
    1. Re:Not Fair Use by pb · · Score: 1

      I don't think Cringely was using Fair Use as the basis for this, but rather actual (corporate) ownership.

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      pb Reply or e-mail; don't vaguely moderate.
    2. Re:Not Fair Use by Anonymous Coward · · Score: 0

      It wouldn't be fair use though, it would be outright ownership. Making Cringely's idea illegal would have to radically change our entire structure of corporations and ownership, wouldn't it?

    3. Re:Not Fair Use by Anonymous Coward · · Score: 0
      From the article:

      "First the law. Snapster is built on the legal concept of Fair Use..."

      Seriously, does anyone around here actually read the articles anymore?

    4. Re:Not Fair Use by Laur · · Score: 1
      I don't think Cringely was using Fair Use as the basis for this, but rather actual (corporate) ownership.

      RTFA, or at least the summary. The only person who has the right to copy a piece of work is the person who owns the copyright. This should be self explanatory, but surprisingly isn't. Fair Use is an exception to this rule, which allows someone other than the copyright holder to make copies under a very lmited set of circumstances. Unless all the shareholders of Cringley's corporation are going to pass around the single purchased CD (which would be legal), they will be making copies. Since they are not the copyright holders and this is way out of scope for fair use, this is clearly illegal.

      --
      When you lose something irreplaceable, you don't mourn for the thing you lost, you mourn for yourself. - Harpo Marx
    5. Re:Not Fair Use by pb · · Score: 1

      I did, actually, and before this showed up on /. -- I didn't think he was basing it around Fair Use, because if he were, then that *would* be absurd, and his lawyer friends should have smacked him silly. He'd have a better chance at setting up a lending library under the First Sale Doctrine than he would trying to use Fair Use; at least then, he might have the right to transmit the contents of the CDs in the first place...

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      pb Reply or e-mail; don't vaguely moderate.
    6. Re:Not Fair Use by Laur · · Score: 1

      No. See my response to pb.

      --
      When you lose something irreplaceable, you don't mourn for the thing you lost, you mourn for yourself. - Harpo Marx
    7. Re:Not Fair Use by geekee · · Score: 1

      Here's a link that also mentions these criteria.

      --
      Vote for Pedro
    8. Re:Not Fair Use by Alsee · · Score: 1

      That four point test section is not the only basis for fair use. There are numberous other specific exemptions all over the place in copyright law.

      He is basing his plan on the right "to make copies for backup and for moving the content to other media". I'm not sure if it is a specific exemption in the law, or based on court rulings, but it is a recognized right that people have. And our warped legal system considers corporations to be legal persons with the constitutional rights of a person, free speech and all. I think that is so absurd I'm half tempted to drag a case though the courts demanding a corporate right to vote. If the courts insist corporations are persons and have the same rights then let them choke on that one.

      I don't know if Cringly's plan will fly, but it is plausible in a twisted legal way. And he does claim to have consulted several lawyers. If anyone want to try it I'll toss in $20 to buy a share. Certainly would make for a great fireworks show when the RIAA reacts :)

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      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    9. Re:Not Fair Use by Laur · · Score: 1
      That four point test section is not the only basis for fair use. There are numberous(sic) other specific exemptions all over the place in copyright law.

      Links please. You can't just throw this out there with nothing to back it up.

      He is basing his plan on the right "to make copies for backup and for moving the content to other media". I'm not sure if it is a specific exemption in the law, or based on court rulings, but it is a recognized right that people have.

      Links please. I don't know of anywhere where the "right" to make personal backups and media shift is codified in law. If it is I'd love to see it. AFAIK the 4 criteria above are the only criteria set down in law for fair use (with certain specific exceptions, such as VCR time shifting). Making backups and media shifting are probably considered fair use under criteria 1 & 4 (it is for personal use only, and has virtually no effect on the market since you've already purchased the goods).

      --
      When you lose something irreplaceable, you don't mourn for the thing you lost, you mourn for yourself. - Harpo Marx
    10. Re:Not Fair Use by Alsee · · Score: 1

      I can show that there are numerous exemptions and I can show there are some backup rights, unfortunately like I said I can't point you directly to the exactly what Cringely would be relying on.

      First here's a general link to the entire US CODE COLLECTION Title 17 US copyright law. Handy to bookmark if you get into copyright law details.

      Proof of numerous exemptions: use this search page and enter the word limitation for 37 hits or exeption for 11 hits. Almost all of them are things specificly immune to copyright infringment.

      Below is proof of some specific backup rights, though they aren't what Cringely wants at all. I think there's a much better link somewhere, but can't find it right now :( Maybe it's a court ruling I'm thinking of.
      117 (a) (2) universal right to backup computer programs
      108 (a) Libraries/Archives making backups
      112 (a) Broadcasters (C) allows premanent backups
      And more.

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      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    11. Re:Not Fair Use by muleboy · · Score: 1

      I have talked about many similar issues with a friend of mine who is a lawyer specializing in IP. It is fascinating just how clueless the Slashdot crowd is when it comes to patent and copyright issues. The only rights to fair use are those that are consistent with the 4 points mentioned elsewhere, and a few very specific exceptions such as you are mentioning. Any other case would be dealt with on a case-by-case basis by a judge who is going to use "good faith" and "intent", along with precendent, as their guide. None of those things are even close to allowing Cringely's proposal. For example, as I understand it, the "right" to transfer your CD to mp3 is not codified specifically in Title 17 (as computer software backups are), it is instead an assumption of "fair use", which would be easy to defend in court using the 4 points. However, if you're going to go into court and argue that Cringely's plan is "fair use", I can promise that you'll get slapped down so hard and fast your head will spin.

    12. Re:Not Fair Use by muleboy · · Score: 1

      P.S. I wasn't saying that you (Alsee) are clueless, I was referring to the general Slashdot crowd. The fact that you have even looked at Title 17 puts you over 95% of the posters here.

    13. Re:Not Fair Use by Alsee · · Score: 1

      It is fascinating just how clueless the Slashdot crowd is when it comes to patent and copyright issues.

      The scary part is that congress seems just as clueless. And it's twice as bad because they are also clueless about tech. The interaction there is deadly.

      I wasn't saying that you (Alsee) are clueless

      Chuckle.

      Just to be clear I was not arguing that the particular scheme would work. I was just clarifying that Cringely wasn't necessarily counting on the 4-point test. Even if he is, there is a large body of case law derived from that 4-point test that has declared certain things legal. He claims to have consulted with several lawyers, it adds credibility. It sounds like he's taking a something that is either specificly permitted in the text of the law or specificly permitted by case law and interacting it in an unexpected manner with specific laws about how corporations work. They might interact in a way that makes his result unavoidable in court unless they change the law itself.

      For example there was a sort of similar case about editing movies for content. It was illegal for a rental company to create these "derivative copies", but they re-organized as a legal co-op that owned the movies. As owners they then had the right to edit out the offensive material for their own use. You have to become a memeber of their co-op before you can rent any of their "morally acceptable" re-edits. (In my oppinion the people doing this were religious nuts, but I support their right to do what they did ;)

      Could you run another item by your IP lawyer friend? The DMCA makes it a crime to circumvent access controls by descrambling DRM. Any DRM that can be descrambled by a program can also be descrambled by a person doing nothing more than THINKING through the steps of the program and calculating mentally. Is there any reason they couldn't put me in prison for staring at a DRM'd e-book and reading the text in this manner? Doesn't that make the DMCA unconstitutional for creating thoughtcrime?

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      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    14. Re:Not Fair Use by muleboy · · Score: 1
      He claims to have consulted with several lawyers, it adds credibility.

      I'll bet his lawyer friends weren't IP lawyers. The difference is like the difference between a heart surgeon and a general practitioner. It will certainly be interesting if I'm totally wrong about this though... from my interactions with my lawyer friend, it seems like everything I thought about the law was upside-down.

      Could you run another item by your IP lawyer friend? The DMCA makes it a crime to circumvent access controls by descrambling DRM. Any DRM that can be descrambled by a program can also be descrambled by a person doing nothing more than THINKING through the steps of the program and calculating mentally. Is there any reason they couldn't put me in prison for staring at a DRM'd e-book and reading the text in this manner? Doesn't that make the DMCA unconstitutional for creating thoughtcrime?

      He's no fan of the DMCA, I can tell you that. In fact, he agrees with the majority opinion on Slashdot that all this stuff is the dying gasps of a soon to be dead industry. However, they have a lot stronger case under the law than almost anyone on this message board understands.

      Your question is easy enough one that I can answer it (I think)... What you describe would actually fall under the civil remedies section of the DMCA. For you to be fined under this provision, the book publisher (or someone who was harmed by your action) would have to show with a preponderance of the evidence that you had in fact read their book by descrambling the DRM in your mind. If they can show this, I would guess they would win some damages. It's not really any crazier than the laws that say the government can take all your property if they find drugs on it, without having to prove that you put the drugs there.

      I have asked him about the paradox that the DMCA makes it impossible to legally view copyright works that have fallen into the public domain. The legal answer (at least until a court rules differently) is: too bad.

      He's actually more worried about the expanding power of contract law than copyright law. Things like software licenses and a lot of other things have taken contract law much further than before, apparently. At least there are some people in the government trying to keep some kind of sane limits on contract law: there was a case recently in New York where the Attorney General of New York sued Network Associates for a clause in their EULA saying users couldn't review the product without permission. Network Associates lost, but unfortunately it appears to be on a technicality (read the ruling to see what I'm talking about): New York v. Network Associates decision

    15. Re:Not Fair Use by muleboy · · Score: 1
      Oh, here's another one Slashdotters can't seem to get right: EULAs are binding if they are a valid contract. PROCD v. ZEIDENBERG

      Ironically, I found this ruling on a site saying that this ruling was "DIfferent case showing how shrink wrap licenses are not binding": First Sale and U.S. Copyrights

      In addition to that, a different college friend of mine who is now a lawyer was interested in the question, and did a case law search. The result was the same: EULAs are legally binding contracts, especially if you have to "click-through" the license agreement to make the program run. It may be critical that the person agreeing to the EULA "contract" makes some "affirmative action" to signify agreement. The "Click OK to agree" button is such an affirmative action.

      Here is another example of EULAs being upheld, Here is an analysis done by a non-lawyer but it has a lot of good cases. He says: "So, are clickwraps legal? It must be clear by now that the answer is 'it depends'". However, if you pay attention, you will see that all the cases he cites where the licensee took some "affirmative action", the license was upheld, as long as it was a valid contract. The real answer to the question is: "yes".

      I should put up a Slashdotters are idiots who don't know what they're talking about page for all the people who don't even do a Google search before making up legal shit like they're experts.

    16. Re:Not Fair Use by Alsee · · Score: 1

      (I think)... What you describe would actually fall under the civil remedies section of the DMCA.

      No, I am specificlly reffering to criminal penalties:

      Sec. 1204. - Criminal offenses and penalties
      (a) In General. -
      Any person who violates section 1201 or 1202 willfully and for purposes of commercial advantage or private financial gain -
      (1)shall be fined not more than $500,000 or imprisoned for not more than 5 years, or both, for the first offense; and
      (2)shall be fined not more than $1,000,000 or imprisoned for not more than 10 years, or both, for any subsequent offense.


      That clearly indicates a prison term of up to 10 years for violating the following:

      Sec. 1201. - Circumvention of copyright protection systems
      (a) Violations Regarding Circumvention of Technological Measures. -
      (1)(A)No person shall circumvent a technological measure that effectively controls access to a work protected under this title. The prohibition contained in the preceding sentence shall take effect at the end of the 2-year period beginning on the date of the enactment of this chapter.


      So someone bets me $5 that I can't read a DRM encrypted book (financial gain). I then proceed to do so, to admit it, and to answer questions proving I have done so. The point here is that I *want* them to "catch" me. I want a perfect test case for striking down the DMCA. I want to defy a judge to put me in prison for the crime of thinking certain thoughts.

      I have had people say it is silly to claim the DMCA outlaws thinking, yet not a single one has been able to show that it doesn't do exactly that. If this test case were to be brought before the court I belive it would be fatal to the entire DRM agenda. I believe any law attempting to enforce DRM inherently suffers from this flaw.

      I believe any refference to "thoughtcrime" would hit the mass media. Even the most technologically and legally illiterate person can grasp the concept that that congress passed a "thoughtcrime law" and that that is a very very bad thing. It would get the public irreversably on our side.

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      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    17. Re:Not Fair Use by Alsee · · Score: 1

      Yeah, I've read some EULA cases. Any EULA courtcase is a crapshoot. It seems that judges will go to extrodinary lengths to find some way to decide cases other than to rule on EULAs directly. When they are forced to analize EULAs directly they seem to go to extrordinary lengths to "allow" contracts to exist where they probably shouldn't.

      Disclaimer, I am about to "make shit up like I'm an expert" :D

      Here's *my* take on what the law is and how it should work. There is no contract unless there is a "meeting of the minds" AND both sides receive consideration. That is almost directly from the definition for the existance of a contract.

      Now I will make it perfectly clear that if I do not agree to an EULA then I do not receive whatever consideration it offers. Without the agreeing to the EULA I only have whatever rights I already had. That's perfectly fine, generally EULAs "offer" us nothing we want or that we don't already have.

      If I go into a store and buy boxed software I have in fact purchaced ownership of an object. Exacly like buying a CD or DVD. I have NEVER seen the retail sale of ordinary software conditioned on the acceptance of any contract. That object happens to contain a copyrighted work. The only thing preventing me from opening the box might be a term of a shrinkwrap licence which I have never indicated any agreement to. I own the box, I inherently have the right to open it. The shrinkwrap contract does not have the power to revoke my right to open a box I own unless I somehow agree to that contract. So I have not in any way lost my right to open the box.

      Now that I legitimately own the disk US copyright law explicitly states that I already have the right to install and run it. As for agreeing to a "click-through licence" it is perfectly possible to bypass such a clickthough by a number of means. Any of which obviously indicates a no intent to agree to a contract. It is an explicit action refuting any claim of a "meeting of the minds".

      So I have purchaced a product, installed it, and have the right to run it. There is no problem whatsoever so long as I am not interested in any additional rights the EULA may offer.

      It may be a very different situation with online services however. In order to use such a service they can present a contract and refuse service if I decline to agree to it. Transmitting the agreement signal either indicates agreement or fraud.

      So according to my analysis the vast majority of EULAs would be completely null and void, however they can still apply in cases where they are appropriate like online services. If a software company truely only wants to sell their software under a contract then they simply have to decline to sell it unless they get a signature first.

      Of course I am well aware that there is a vast army of well paid lawyers prepared to argue I'm wrong. Sigh.

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      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    18. Re:Not Fair Use by muleboy · · Score: 1
      Personally, I agree with you, and even after having read the case law and the law reviews on this, I still agree that yours is the correct interpretation. But unfortunately, we are wrong in the sense that no court would agree with us.

      My other law friend sent me a copy of 17 Berkeley Tech. L.J. 475 (2002)
      Business Law: Contractual Assent and Enforceability in Cyberspace

      which is a summary piece on "clickwrap" and "browsewrap" licenses, probably written by a law student. They summarize the case law and conclude that click-wrap license will almost certainly be upheld. However, there is a ray of hope in that certain clauses from these licenses may be struck down, especially the ones that contradict copyright law (such of first sale doctrine):

      CONCLUSION
      Courts possess effective methods for striking or modifying terms within online license agreements. These methods should prove increasingly important because courts will likely enforce clickwrap licenses. Even if the court finds that the consumer assents to the clickwrap agreement, the court should utilize the unconscionability doctrine, consumer protection statutes, and federal preemption to strike unfair terms of the license. Many consumer protection statutes explicitly address "unconscionable" contract provisions, while others contain a range of mandatory standards for fair trade practices. n149 Courts may rely on such laws as alternatives or supplements to the common law unconscionability doctrine. In addition, courts may conclude that federal preemption of contractual terms is necessary, given the ubiquity of shrinkwrap and clickwrap licenses, and their potential to radically alter the balance of rights codified in federal intellectual property laws. n150 Finally, courts should increasingly find that a vendor's "license" of goods actually represents a disguised sale of goods. n151 If vendors "sell" their products, courts will likely preempt terms that contradict "first sale" rights under the Copyright Act. The preemption and striking of terms within online licenses should maintain the integrity of federal intellectual property law, consumer protection law, and traditional ideals of good faith and fair dealing.

  41. What a bozo by curtlewis · · Score: 4, Insightful

    Cringely has always struck me as a moron.

    A simple perusal of copyright laws would show anyone with half a brain that what he proposes is illegal.

    Fair use allows for the end user to make a copy for PERSONAL use. Not corporate use, not public use, not any other use. Personal, baby.

    Survey says....

    BZZZT!

    1. Re:What a bozo by Anonymous Coward · · Score: 0

      Well if we're supposed to accept the absolute lunacy that a corporation is a person, then we might as well benefit from it too. :)

      Seriously though, I think the point was the shareholders would be the ones making the copy for their personal use. Apparently there's precedent for all this: Shareholders do own the company, and if the charter allows it, they can use the company's assets as if they were their own. Thus, since they own each individual CD, they can make personal copies for themselves. I think the idea is hilarious, and it might actually work before the RIAA bought some custom corporate welfare laws from Congress to stop it.

    2. Re:What a bozo by scharkalvin · · Score: 1

      Same idea as a flying club where a group of pilots buy a plane and share it's use. The flying club can (and often is) a corporation with the members owning stock in the corporation. I'm sure there are boating clubs too.

    3. Re:What a bozo by blakestah · · Score: 2, Insightful

      Fair use allows for the end user to make a copy for PERSONAL use. Not corporate use, not public use, not any other use. Personal, baby.

      He is not proposing to exploit any loophole in fair use. He is proposing to exploit a loophole in co-operative ownership. If you and I pool our money and buy a CD together, can we each listen to a copy of it at the same time?

      Now expand that concept to everyone in the "company" buying the single CD together, and listening to it whenever we feel like downloading it. That is the proposal, except there is a download fee also.

    4. Re:What a bozo by EvilSporkMan · · Score: 1

      since they own each individual CD
      BZZZZT! WRONG! They are PART-owners of each individual CD.

      --
      -insert a witty something-
  42. Wheres the beef? by Sogol · · Score: 5, Insightful
    "Figure $100,000 for the download system"

    Whatever. Considering the average mp3 @ 192kbps
    is 4MB x 100,000 mp3's = approximately 390GB served to a large user base. For $100,000.

    This guy may have ran his idea by some lawyers, but he didn't ask anyone here...

    1. Re:Wheres the beef? by Anonymous Coward · · Score: 0

      The shocking thing is, people in the mainstream media treat him like a tech expert. Even more shocking, he gets the time of day from the Slashdot community.

    2. Re:Wheres the beef? by A+Commentor · · Score: 1
      "Whatever. Considering the average mp3 @ 192kbps
      is 4MB x 100,000 mp3's = approximately 390GB served to a large user base. For $100,000."


      From that comment it sounds like the $100,000 is too small... Am I missing something, but I can find unmetered 10 Mbit dedicated servers(dual Xeons) for $400/month, at 10 Mbit you can pump out over 2600 GBytes/month... From the same company I could get 2U Colocation with 500 GB/month for $80, even if I had to get 10-20 of these I'd still be way below the budget.
      --

      Looking for any old 8-bit Heathkit/Zenith software/hardware - http://heathkit.garlanger.com

    3. Re:Wheres the beef? by out_sp0k1n · · Score: 1

      Well, 2 of these @ $240 would give you plenty of room for growth.

      That leaves $99,520 for making them available...

    4. Re:Wheres the beef? by danila · · Score: 1

      Well, I was pumping out about 30Gb to ed2k on my 20$/month cable connection.

      --
      Future Wiki -- If you don't think about the future, you cannot have one.
    5. Re:Wheres the beef? by Scudsucker · · Score: 1

      Presumably the 100k is for some beefcake systems, with load balancing and high availability. Three maxed out Apple Xserves will eat into that 100k pretty fast. Then you need to pay someobdy to support them, and somebody else for a buttload of bandwidth. If you think about it you can see how 100k isn't that excessive.

  43. And there's room for growth by Gherald · · Score: 1

    So once Snapster begins to get profitable with music it starts buying copies of all ebooks, movies, and software...

    But then there is the problem of license agreements. The RIAA could just take a page from M$ and start issuing CD licenses on a per-stereo basis. Hell, they even have a sort of "Product Activation" system with DRM. I guess that would pretty much seal their fate though.

  44. really? by YllabianBitPipe · · Score: 1

    am I breaking the law when I borrow a cd from the library, rip it to my computer and then return the cd? If so, my bad, I better stop doing that right away (wink).

    1. Re:really? by Anonymous Coward · · Score: 0

      You're violating the laws of common sense.

      Why 'rip it to your computer' and end up with a crappy compressed version that you can only play on the computer or some wobbly cheap 'player'?

      Make a direct copy of the entire CD. CDR media is cheap.

    2. Re:really? by YllabianBitPipe · · Score: 2, Funny

      I have an mp3 collection, not an audiophile collection. This is pop music we're talking about ...

  45. error-Fair use by linuxislandsucks · · Score: 2, Redundant

    People you forget Fair Use only applies if you do not in any way make money off of the copy..

    So Cringely is quite wrong in this concept..

    Now a non profit org that gives a used music cd for someone to use in exchange for another music cd fromtha tperson..would probably be very legal..:)

    --
    Don't Tread on OpenSource
    1. Re:error-Fair use by Gherald · · Score: 1

      Yeah, I was thinking (even before I read the article) that we could start up IMLA (the Internet Music Library of America) and everyone would donate all their CDs.

      Then we could have some sort of automatic checkout system that keeps track of how many people are playing a song at any given time, and make sure the library has enough donated CDs to back it up.

      There would be a bit of a wait on new releases, just like a brick and mortar library.

    2. Re:error-Fair use by gvonk · · Score: 1

      Oh come on, Slashdotters. Don't mod up as Insightful a post that none of you could possible know to be true. It may SOUND insightful, but linuxislandsucks has clearly never taken a law class in his life.

      People you forget Fair Use only applies if you do not in any way make money off of the copy..


      You either made this up in your head or you were severely deceived by someone else who has also not taken a law class.

      Here's some counterexamples to your grossly flawed blanket statement:

      ---When a newspaper quotes a passage from a book because there is controversy over the words, guess what? The newspaper is making money off of a fair use of the copyrighted material.

      ---When Weird Al (or 2 Live Crew [92-1292]) copies a song's exact notes, phrasings, and sometimes lyrics, he is copying copyrighted material, FOR PROFIT, and it is a fair use.

      I could go on and on. Check out the 2 Live Crew case for a landmark decision in fair use.

      This is also a pretty good beginner's reference for fair use.

      --


      El Karma: excelente(principalmente la suma de moderación hecha a los comentarios de los usuarios)
    3. Re:error-Fair use by tinrobot · · Score: 1

      ...but your examples are either excerpting parts of the material or parodying it. It is not the entire un-altered work. Big difference.

    4. Re:error-Fair use by Anonymous Coward · · Score: 0

      There are numerous specific exemptions in copyright law. And those exemptions are blanket exemptions that make no refference to profit.

  46. It would have to make money than RIAA by tjstork · · Score: 1


    Business model A is "better" than business model B iff A($)>B($)

    --
    This is my sig.
  47. An even better idea... by GeeDog · · Score: 2

    What if you just had an library of every piece of music ever made and allowed only one person to check it out at a time? It works for books24x7.com. No copying of CDs, effectively eliminating the copyright issue entirely, and it would allow users to sample music to their heart's content. Have a search engine for genre, etc., etc. and you'd be all set.

  48. about a week and it'll be illegal by jonathanbearak · · Score: 1

    IANAL, but suppose this will work - that owning one 10 millionth of a company can give me such rights to their assets - how long would it take for the laws to be revised?

    This wouldn't just affect the music industry - it could be used on tv shows, movies, books, magazines, software, and anything else I haven't thought of; the concept is no different when applied to any of those things.

    Were this legal, it would devastate our economic infrastructure. And, even if it would work, for these reasons ... fastest new law ever.

    (And, in any case, were this only applicable to the RIAA, and, I suppose, a "Good Thing" to many slashdot readers, it would be struck down by corporate lobbying alone.)

  49. cute idea, but how about this one: by Sodade · · Score: 1

    Me and all of my friends form a "co op." We all agree to buy CDs and trade them amongst ourselves. Not on a public P2P connection - maybe something simple (unless you have a linksys) like ftp. Maybe a password protected web site with links that we dynamically add to our local host.
    The trick is, I don't let joe sixpack know about it - or any anonymous surfer. Let's see the RIAA get me now.
    ummm - gee - that's what I was doing in '98.

  50. As a Microsoft stockholder... by Anonymous Coward · · Score: 0

    Somehow, I doubt you could use this brilliant legal framework to install even a single unlicensed copy of Windows even if you are a shareholder of Microsoft. Copyright is copyright. What applies to music applies to software.

  51. Open Letter to the Media Industry by hankaholic · · Score: 2, Interesting

    Something that didn't make the cut for story submission...

    I have been watching morbidly as the RIAA tries to make felons out of normal people. I am disgusted by these tactics, and it saddens me that the United States government would even momentarily entertain the thought of fining or jailing people for wanting ownership of that which gives America a cultural identity.

    We don't all have common backgrounds, or live in similar situations. What ties Americans together as a nation is a longing for freedom, and the music that provides our identity as a generation, or as a nation. It is along this line of thinking that I wrote the following, and I would appreciate constructive comment on it.

    We are not criminals!

    We are not criminals. We are the proud citizens of these United States of America, and we want our culture back. For too long the music industry has branded us criminals -- thieves who would fight to take what is not ours, unwilling to support those who influence our lives and shape our culture, our national self-image. Yet there is no sign of the media calling off its plan to define and control our culture.

    The music industry claims to have the interests of artists in mind while persecuting those who would attempt to make free certain parts of our culture. With the belief that work should be compensated fairly it is self-evident that artists deserve fair compensation for their work. However, the music industry routinely uses the "work make for hire" clause of the Copyright Act of 1976 to rob artists of their right to profit from their own creations by working with whichever publisher they choose.

    If the music industry holds fair compensation in high regard, perhaps they could consider a business model in which an author retains ownership of her own works. If they are unable to fairly compensate artists, it is not the fault of the consumer. Business does not exist in a vacuum, and it is unfair to produce legislation which aims to preserve a monopolistic industry's position without significant consumer benefit. We want the right to experience the music of our lives at will without being forced to use our dollars to vote for the music industry's dominance.

    While the popular media industries demonize citizens whose lives are most strongly tied to their products, they are fighting hard to retain their status as the group solely responsible for driving American culture. These self-proclaimed owners of our national identity strive to ensure that our lives are pervaded with their music, their movies, their values. They force their media into our lives; billing movies and albums as not just mere entertainment, but "events" which will affect our lives. One can hardly watch television or a film or listen to the radio without being subjected to mainstream music. Yet rather than rejoice and celebrate their successes they cry out at the realization that culture is a hard thing to bottle.

    We do not consider it fair that the media surround us with the same sounds and images, over and over, yet we are criminalized for trying to integrate them into our culture. We have a right to our culture, and to not be regarded as criminals for demanding ownership.

    A company cannot own a common term; trademark laws are such that trademark owners must take action to prevent their trademarks from falling into common usage, lest they become public-domain terms. The curious lack of a similar concept in the media domain means that our lives can be immersed in elements which become part of our cultural vocabulary, yet current law dictates that most of us will die before gaining ownership of our cultural identities.

    We want ownership of the media that pervades our lives.

    Well, that's it, folks. If I had bandwidth I'd turn it into a petition of sorts, but as it is all I can do is put it up here for comment, in hopes that somebody else will be inspired to take some action.

    Please do comment -- I'd like to hear what people have to say.

    --
    Somebody get that guy an ambulance!
    1. Re:Open Letter to the Media Industry by hankaholic · · Score: 2, Informative

      This is also available at http://www.tr0n.com/~chet/culture_ownership.html. I'd like to retain all copyright, at least until somebody actually expresses enough interest in doing something with it to let me know ;-)

      --
      Somebody get that guy an ambulance!
    2. Re:Open Letter to the Media Industry by karnal · · Score: 1

      "I have been watching morbidly as the RIAA tries to make felons out of normal people."

      One really quick thought on this -- while what they're doing may have a HUGE impact on the lives of the people breaking the copyright law, they will not be deemed "felons"... since these are civil suits, I highly doubt they'll be stripped of their right to vote or bear arms yadda yadda yadda...

      --
      Karnal
    3. Re:Open Letter to the Media Industry by Bakaneko · · Score: 1

      On a side note: I personally don't believe there is any music that defines "us" as a generation, or a nation, if "us" is an all-inclusive "us" for generation or nation.

    4. Re:Open Letter to the Media Industry by Phwoar · · Score: 1

      They will if Mr Berman gets what he wants.

    5. Re:Open Letter to the Media Industry by Alsee · · Score: 1

      they will not be deemed "felons"... since these are civil suits

      Ture, but the NET act says the majority of people who have ever used any P2P program are in fact felons who simply haven't been draged into court yet.

      That's a couple of tens of millions of Americans eligible for felony filesharing convictions at will.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    6. Re:Open Letter to the Media Industry by hankaholic · · Score: 1

      I agree to some extent.

      I guess my point, which seems to be less interesting to others than I'd thought, is that the music industry tries REALLY hard to make sure that we hear their stuff EVERYWHERE. If a trademark owner was shown to be trying to turn their trademarked name into a commonly used general term (notice that Band-Aid commercials now say "Band-Aid brand"?), they'd be pretty well down the road to losing their trademark.

      What the problem is, as far as I'm concerned, is that this music that's shoved down our collective throats on radio, car commercials, September 11 tributes, in restaurants, and such is something that for which music industry has tried hard to get us to feel a need.

      Marketing is fine, but when you can't walk into a fast-food restaurant without hearing this music, there's a problem. That's not something I often do, but back in high school I worked at McDonald's and it was definitely an issue for me then. Later at night we used to pull out a CD player and let fly with the music we wanted to hear; however, as there was really no way to place the stereo such that all of the employees could hear it but the customers could not, this is now the stuff of lawsuits.

      The RIAA and friends have tried hard to make it so that you must get music through the channels they control, and if this means $18 CDs and Musak, so be it.

      You cannot use Ebay or Yahoo to distribute music which you own and produced entirely by yourself with your CD burner. Truly independent performers and producers of music find it next to impossible to get airplay.

      My (apparently not-so-compelling) argument is that if the RIAA wants to make sure that the average American cannot live without being exposed to their media while making it hard for media from other sources to be played in the same places (radio, burger joints, etc.), then I believe that the intent is to force the music into our culture.

      I wouldn't argue that a given piece of work is universal across a generation, or the nation. The thing we most of us do have in common is that the RIAA is the source of the overwhelming majority of the music which we know best and love.

      Go watch Forrest Gump. For every song you hear, find a song not controlled by the RIAA which would as effectively give each scene the specific time-period "feel" that is has.

      Until you can do that, it is my belief that you can't have the '70s without the raspy voice of John Fogerty, or the '80s without hair bands and bad pop.

      It's that part of our culture which is owned by the RIAA, and if your parents can't find a copy of the first song they ever danced or made out to while listening to the radio, that's part of their lives that they can't as easily revisit.

      However, it's still often illegal for them to obtain a non-original copy, even if that song is no longer available on the mass market.

      We don't want to be criminalized, and many wouldn't mind paying a small fee for music. I think that music should be easily available, and that the more a song has been played publicly, the less it should cost. Every late '60s or '70s movie that's used "I Put A Spell On You" in its soundtrack is effectively associating that song with the culture of that time period, and you know full well it's done with the RIAA's permission.

      The RIAA's licensing scheme says that the more a song is played, the more they will receive. Let's stop rewarding them for trying to license our culture back to us.

      --
      Somebody get that guy an ambulance!
    7. Re:Open Letter to the Media Industry by Alsee · · Score: 1

      I personally don't believe there is any music that defines "us" as a generation, or a nation

      Not even Britney Spears?

      [Runs for cover]

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
  52. Why go to the trouble? by Dunark · · Score: 1

    Can a company that makes a product dictate the price a retailer must charge when selling it? If not, how is this idea better than (for example) Blockbuster buying a pile of DVD's and then renting them out very cheaply, maybe even for free? Now, Blockbuster probably wouldn't do such a thing, but a co-op "video store" could.

    This might be a helluva lot less complicated than any arrangement that involves issuing stock.

  53. Fair use = non-commercial by sdmartin101 · · Score: 1
    IANAL, but I have always heard "fair use" glossed in terms of "non-commerical use". RXC's plan sounds pretty darn commercial to me.

    BTW, did anyone else think that the second paragraph made him sounds like a total crackpot?

  54. another idea...that forgets the artist by jorr · · Score: 2, Insightful

    Every idea or discussion I hear seems to always forget about the artist.

    So under this plan, if an independent artist (pays their own recording, cd pressing, etc) has their disc bought for $14, is lucky enough that just one single is downloaded 100,000 times at $0.05/download, then $5,000.00 is made and then artist only receives (maybe) profit off of a $14 sale. If that is not motivation for artists to side with the RIAA I don't know what could do it.

    1. Re:another idea...that forgets the artist by multimed · · Score: 1
      I agree completely that many of these discussions forget the artist - but not all of them. Certainly any plan for a new way must solve the questions of how to reward the artists fairly and provide incentive for them to create. This is where there's the most opportunity to squash the current system--currently record companies make boatloads of money, established musicians make a bunch of money and new artists are majorly taken advantage of.

      There is nothing in this plan that precludes making sure artists get paid--I've read Cringely long enough to know that he's most certainly in favor of anyone being fairly rewarded for their creations regardless of the field. The fact that he left out options for that piece is certainly disappointing but I'd guess he'll present them in next weeks column. This system very easily lends itself to much more fair profits from their work for the artists. It's almost comically trivial to set it up so the artists gets a certain percentage for every download, sort of similar to the way songwriters get their royalties. If a song gets downloaded a million times, the artist gets their rate times one million. What rates to set are just details to be worked out, but by eliminating the recording & distribution companies and their huge profits, the artists & consumers should be able to split the difference and both be much better off.

      --
      Vote Quimby.
  55. Oh, the love of music by beaverfever · · Score: 1

    Why are people who want pop music (I said 'want', not 'need', because nobody needs music or pop entertainment) willing to go to such great lengths to get entertainment for free and, if they had their way and nobody paid for entertainment, drive their favourite artists, writers and musicians to bankruptcy, along with the entire entertainment industry, which is supposedly reviled by so many, yet so deeply integrated into the lives of and desperately clung to by those who seem to despise it so much?

    Please note - this whole issue revolves around entertainment

    ENTERTAINMENT!!!

    If you're going to fight against corporate evil, why not fight for something that really matters? Something that might make a meaningful difference and improvement to your life, as well as an improvement in quality of society as a whole.

  56. Fair Use? by Anonymous Coward · · Score: 0

    If you want to see a nice example of fair use, check this out.

    1. Re:Fair Use? by ZenJabba1 · · Score: 1

      The sad thing is, when I first saw that picture I was feeling uneasy... now I just feel nothing.. you insensitive clod!

      --
      `find / -name "*your_base*" -exec chown us:us {} \;`
  57. Another option I have thought about by Anonymous Coward · · Score: 0

    is why if the cast of Friends can be paid a million dollars an episode, why can't music channels fork over a good deal of cash to bands that bring in a lot of viewership. If the band was a big enough draw, they could make quite a bit of money this way and it wouldn't matter if their songs were traded for free or not.

    I'm also surprised more corporations haven't just paid bands to make songs that would be given away free from their web sites as promotions. I think a band could make some good money and some company could get a lot of traffic if they did something like this. A lot of car commercials have cool music and I never go to the web sites to look at the cars, but if I knew I could go to the web site and download that cool song...

    Between these options and the money artist get when their songs are played on the radio, it looks like they could come up with a way the artists could get paid and the songs still be "free."

    Of course the RIAA would hate all of these ideas, but if the artist is getting paid and music is free, everyone but the RIAA is happy.

    Usurper_ii

  58. Even better--FREE LUNCH! by Anonymous Coward · · Score: 0

    Why not go one step further and just buy stock in all RIAA and MPAA companies. Heck, set up a mutual fund. Clearly if you own the RIAA and MPAA they can't hurt you. Right...?

    Let's go even further and never pay electricity or phone bills by purchasing stock in the electricity and telecom companies. Free lunch--if you buy stock in McDonalds!

    Those Wilshire 5000 total market index funds are much more valuable than I thought! I never have to pay for anything again because I own everything!

    Cringley's always been a dumbass.

  59. Bad idea... by Nucleon500 · · Score: 1

    I think that's a really bad idea. Face it, the RIAA all but owns the government, and if something like this became popular, they would have an excuse for removing fair use from the copyright laws. They've already managed to remove fair use via legally protected technological measures, but at least it still exists in theory. Until we abuse it, that is.

  60. Reductio Ad Absurdum by meta-monkey · · Score: 2, Insightful
    What's our goal here? I mean, do we really want all information freely downloadable and available anytime, no fees, no copyrights, no nothing?

    We have two extremes here.

    • 1) The Disney worldview, where everything is closed and controlled forever. You will be paying royalties everytime you whistle "It's a Small World" until the year 3029.
    • 2) The "Everything I can copy is free" worldview, like what Cringely describes in this article. One copy is made, and then anybody is free to copy it forever.

    Do you really think #2 is the right answer? Don't give me the standard lines about "music sharing increases record sales." Sure, it might, right now, in the limited sense it's going on. Okay, what if copying anything you want is legal. /.'ers have told me before that they think it's ridiculous that somebody can own a pattern of bits. Don't argue semantics about "ownership." I'm talking about control here. How something is used, how it is reproduced, etc. So, nobody can control an idea, nobody can control a piece of music, nobody can control a movie.

    A studio spends $100 million dollars making a great movie. Last night I watched Gangs of New York. Fantastic...amazing...Scorsese is a fucking genius. I don't know how much it cost to make, but I'd imagine a shit-ton of money. So, they spend all this money, use all this talent, and equipment, and employ all of these people. The master copy is made. Immediately, somebody gets their hands on it, makes a copy, and puts it on the Internet. Everybody and their brother downloads it. Somebody copies it onto DVDs and sells it for $3 + shipping. How does the studio make money?

    Don't tell me it's off ticket sales because people want to see it on the big screen...unless they own all the theaters, it won't do any good. I'll open up a theatre, buy the DVD for $3, and charge $4 for a ticket to see it on the big screen, then charge $8 for popcorn.

    Is this the world we want? How will artists make money? Will it all be ads and product placements? Should Daniel Day Lewis have to say "Drink Pepsi" after every stabbing?

    There should be a happy medium between options 1 and 2. So, what is it? Should there simply not be big-budget movies anymore, because the idea of "owning the bit pattern on the DVD is nonsensical?"
    --
    We don't have a state-run media we have a media-run state.
    1. Re:Reductio Ad Absurdum by Forkenhoppen · · Score: 1

      The logical extension from this, which I believe Cringley was implying by having a charge for each song you decide to purchase, is that eventually Snapster would become a record label unto itself.

      At that point in time, the big name artists would start signing up with Snapster, so they would be taking maybe four of the five cents collected, since it wouldn't be needed for legal defence against them.

    2. Re:Reductio Ad Absurdum by Alsee · · Score: 1

      If we did in fact have to choose between the two extremes I would without hesitation choose (2) everything is free.

      And actually that isn't quite what Cringely describes because he quite clearly indicatates it would be a transition. The immediate effect would be to destroy the RIAA and to cause a bit of chaos. Considering the damage the RIAA is causing and their plans for the future I would say the sooner the RIAA dies and the better. Disruptive technologies always cause a bit of chaos untill they resolve.

      Cringely points out that when the RIAA is gone the corporation will need a new source of CD's. He also says the corporation should probably spend the profits back into the music industry. That means artists getting paid to make those CD's.

      There should be a happy medium between options 1 and 2. So, what is it?

      Well if you want my vote I'd say copyright law was fairly reasonable if you just back up a few years. 1990 might be adaquate, but lets say 1980 or even 1970 to be safe. I know there were some signifigant changes in the 70's but I'm not sure offhand if they were good or bad.

      Perhaps a bit more controvercial, I think it would be a good idea to go waayy back to what was probably the original intent of copyright which was that the creator was entitled to the profits generated by a work. Lawsuits are exceedingly effecive in accomplishing that goal. If someone makes signifigant profit on your work it is generally pretty easy for you to spot it and win those profits in court.

      It would mean no such thing as criminal infringment, and that all non-commercial use is exempt. If a use is non-commercial then are no profits - and the creator's only right is to profits. That would make P2P perfectly legal. Now I admit that perfectly legal P2P is a direct competitor to some forms of commercial use, but it does not eliminate commercial use. Commercial radio still has to pay, bussinesses still have to pay, live performance still pays, and more. Plus commercial downloads can in fact complete with free P2P. The RIAA's pathetic and crippled pay services are getting customers in the face of P2P, a non-crippled service can certainly get more customers. So creators would still get paid for all commercial uses of a work and the public would get the enormous benefit of unrestricted non-commercial uses.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    3. Re:Reductio Ad Absurdum by meta-monkey · · Score: 1

      Except for your first few paragraphs where you vote for the "everything is free" model, I agree with you. Originally, I think copyrights were something like 17 years. Now, thanks to Disney and all the senators they bought, it's someting like 70 years after the life of the creator. That's preposterous. 17 years is plenty enough time to make some money off your work. If you can't make money off it in 17 years, then, well, it probably wasn't very good to begin with.

      I'm not sure about the commercial vs. non-commercial aspects of such a system, because I think there is a lot of wiggle room there. What if I set up a system where I buy 100,000 CDs, rip them and put in them in mp3 or ogg or whatever, and let people download them for free, but make money off advertising? I'm not selling the songs, after all.

      Or if I got a non-commercial DVD copy of the latest and greatest movie, that's still in theatres right now, and then set up a bar/resuarant and projected the movie on a screen similar in size to a movie theatre screen. Now, I don't charge anybody to get in, but I sure expect they'll buy drinks or dinner. Is that commercial use, or non-commercial use?

      How about synching somebody else's copyrighted music to a video I've created, and selling that? I'm not selling the music, just the video I created and my video editing skills. Is that commercial or non-commercial use?

      A lot of this is fuzzy. I think the currrent system is definitely broken, but I think an "everything is free" system is probably more broken, still. Let's not throw the baby out with the bathwater.

      --
      We don't have a state-run media we have a media-run state.
    4. Re:Reductio Ad Absurdum by Alsee · · Score: 1

      Except for your first few paragraphs where you vote for the "everything is free" model

      Actually that was restricted to the first paraghraph, and the first paragraph was only one sentence, and it was only in prefference to the opposite extreme of oppressive copyright :D

      I'm not sure about the commercial vs. non-commercial... lot of wiggle room

      Some, but the courts have built a fairly extensive and thorough system about it. They are quite good at hunting down even the faintest whiff of profit motive. I'll take a stab at the examples you listed.

      make money off advertising?

      That is a well recognized commercial model. Everything from TV to newspapers uses it.

      set up a bar/resuarant

      Business establishment. Commercial. It's quite common for small bar owners to throw a hissy-fit when they find out they have to pay fees for having a TV in the bar. It's not unusual for them to fight it in court on principal, but they all lose (chuckle). Stores also have to pay for the horrible muzak that always gets piped in.

      somebody else's copyrighted music to a video I've created, and selling that? I'm not selling the music, just the video

      Commercial, it's clearly part of the product you're selling.

      I think an "everything is free" system is probably more broken

      Well the system that I actually advocated was the commercial-use pays, noncommercial-use free system. And all three "questionable" examples you lised fell into the commercial-use pays catagory and all would funnel money to copyright holders.

      Suggesting that P2P would be legal and all non-commercial uses would be free sounds drastic and devastating, but it really leaves a lot of the profit in copyright law intact. It also gives enormous social benefit in the freedom of non-comercial use. About the hardest hit would be attempts to sell music online against the competition of free P2P, but you can successfully compete with "free" by providing a good and valuable service. Hell, the RIAA's current online offerings are getting customers, and those are horrid crippled overpriced services.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
  61. Re:one word: my.mp3.com by leviramsey · · Score: 3, Insightful
    Taken as a whole shareholders are the owners of the company. If they own the company they also own the company's assets, i.e. the music. Thus, the people obtaining the music from the company to some extent share ownership of the music they download.

    However, there is still a distinction between the assets of the corporation and the assets of the shareholders. The assets of the corporation do not become the assets of the shareholders until the corporation liquidates, and then the shareholders are last in line (as various governments, followed by those who are owed money by the corporation have first crack at the assets). Even then, each shareholder would get it on a pro-rata basis. If the corporation bought 50,000 CDs and had 5,000 shares outstanding, you would ultimately be able to get 10 CDs for each share (assuming no one was ahead of the shareholders in this example) you held, and you would be the only shareholder to get each particular CD.

  62. Cringley on crack by El · · Score: 1

    By Cringley's logic, if me and 17 friends each chip in $1 for a CD, we should each be allowed to make a copy of it by "fair use", since we're all co-owners. Yeah, right... that'll fly in court...

    --

    "Freedom means freedom for everybody" -- Dick Cheney

    1. Re:Cringley on crack by Anonymous Coward · · Score: 0

      You can certainly just pass the CD from friend to friend.

      And if you rip it, and set up a file-locking server so that only one person can listen at a time, you might well be legal.

      Not that being legal would slow down the RIAA one bit.

  63. Fair use p2p software by Kernel+Kurtz · · Score: 1

    Why not develop software that really lets you share - when you download something from someone, it is actually deleted from thier hard drive.

    Songs that get "injected" into the network, simply float around from person to person. If the network is big enough, you will still find what you want.

    Let the RIAA prove what you do with them while they are actually present on your machine.

  64. By the same logic... by El · · Score: 1

    If I own at least 1 share of AOL/Time Warner, I can legally make copies of any of their movies? Cringely, please tell me the names of the lawyers you supposedly ran this idea by...

    --

    "Freedom means freedom for everybody" -- Dick Cheney

  65. They can't "make it illegal". by janda · · Score: 2, Interesting

    The US Supreme Court has already ruled (I can't find the link at the moment, try "supreme court wordperfect" or something similar) that it is legal for you to buy one (1) copy of (say) MS-Office, and install it on all 3,000 workstations at your company.

    The trick here is that since you only have one (1) license, only one (1) copy of the software can be active at any time.

    A similar thing already exists in the physical world, it's called "loaning a book to a friend".

    --
    Karma: Food Fight (Mostly affected by Date Plate).
    1. Re:They can't "make it illegal". by TitaniumFox · · Score: 1

      Wouldn't this take the bite out of the BSA's strong-armed tactics?

      BSA: Licenses aren't equal to computers. W3 0wnz0r j0O.

      You: Nah. Our licenses = workers. We've got it so you can't be logged in more than once.

      Interesting.

      --
      -- I'd say your post was about 3 monkeys, 18 minutes.
  66. Where are the musicians? by KNicolson · · Score: 4, Insightful

    This may make RIAA extinct, but there's no revenue stream for musicians, and it's worse than Napster/KaZaA as presumably all the titles will be perfectly ripped and organised, thus providing even less incentive for people to go out and buy.

    Coupled with the dismissive "Oh, it only takes $500 per hour to do a recording", and with profits being skimmed to support the pyramid scheme, Cringely sounds like one of these guys who think the cost of the average recording looks like this:

    1. CD and box, 10 cents
    2. ???
    $19.90. Profit!!!

    1. Re:Where are the musicians? by GoodNicsTken · · Score: 2, Insightful
      KNicolson,

      Your right. It doesn't cost 10 cents to produce a CD. Here's a breakdown of the costs. (http://www.negativland.com/albini.html)

      The agent says a band on a major label can get a merchandising company to pay them an advance on T-shirt sales! ridiculous! There's a gold mine here! The lawyer Should look over the merchandising contract, just to be safe. They get drunk at the signing party. Polaroids are taken and everybody looks thrilled. The label picked them up in a limo. They decided to go with the producer who used to be in Letterman's band. He had these technicians come in and tune the drums for them and tweak their amps and guitars. He had a guy bring in a slew of expensive old "vintage" microphones. Boy, were they "warm." He even had a guy come in and check the phase of all the equipment in the control room! Boy, was he professional. He used a bunch of equipment on them and by the end of it, they all agreed that it sounded very "punchy," yet "warm." All that hard work paid off. With the help of a video, the album went like hotcakes! They sold a quarter million copies! Here is the math that will explain just how f**ked they are: These figures are representative of amounts that appear in record contracts daily. There's no need to skew the figures to make the scenario look bad, since real-life examples more than abound. income is bold and underlined, expenses are not.

      Advance: $ 250,000 Manager's cut: $ 37,500 Legal fees: $ 10,000 Recording Budget: $ 150,000 Producer's advance: $ 50,000 Studio fee: $ 52,500 Drum Amp, Mic and Phase "Doctors": $ 3,000 Recording tape: $ 8,000 Equipment rental: $ 5,000 Cartage and Transportation: $ 5,000 Lodgings while in studio: $ 10,000 Catering: $ 3,000 Mastering: $ 10,000 Tape copies, reference CDs, shipping tapes, misc. expenses: $ 2,000 Video budget: $ 30,000 Cameras: $ 8,000 Crew: $ 5,000 Processing and transfers: $ 3,000 Off-line: $ 2,000 On-line editing: $ 3,000 Catering: $ 1,000 Stage and construction: $ 3,000 Copies, couriers, transportation: $ 2,000 Director's fee: $ 3,000 Album Artwork: $ 5,000 Promotional photo shoot and duplication: $ 2,000 Band fund: $ 15,000 New fancy professional drum kit: $ 5,000 New fancy professional guitars [2]: $ 3,000 New fancy professional guitar amp rigs [2]: $ 4,000 New fancy potato-shaped bass guitar: $ 1,000 New fancy rack of lights bass amp: $ 1,000 Rehearsal space rental: $ 500 Big blowout party for their friends: $ 500 Tour expense [5 weeks]: $ 50,875 Bus: $ 25,000 Crew [3]: $ 7,500 Food and per diems: $ 7,875 Fuel: $ 3,000 Consumable supplies: $ 3,500 Wardrobe: $ 1,000 Promotion: $ 3,000 Tour gross income: $ 50,000 Agent's cut: $ 7,500 Manager's cut: $ 7,500 Merchandising advance: $ 20,000 Manager's cut: $ 3,000 Lawyer's fee: $ 1,000 Publishing advance: $ 20,000 Manager's cut: $ 3,000 Lawyer's fee: $ 1,000 Record sales: 250,000 @ $12 =
      $3,000,000 Gross retail revenue Royalty: [13% of 90% of retail]:
      $ 351,000 Less advance: $ 250,000 Producer's points: [3% less $50,000 advance]:
      $ 40,000 Promotional budget: $ 25,000 Recoupable buyout from previous label: $ 50,000 Net royalty: $ -14,000 Record company income:

      Record wholesale price: $6.50 x 250,000 =
      $1,625,000 gross income Artist Royalties: $ 351,000 Deficit from royalties: $ 14,000 Manufacturing, packaging and dist

    2. Re:Where are the musicians? by KNicolson · · Score: 1

      Thank you for reposting this for about the millionth time on Slashdot. I'm sure there's one or two readers who haven't quite memorised it all yet.

      However, my argument is that Cringley's scheme never mentions any payment to artists at all. Your post mentions band members getting a net $4,000 each from the record company. Cringley gives them not just nothing (OK, one solitary sale), in fact -$500 per hour reward for stocking his pyramid scheme.

    3. Re:Where are the musicians? by GoodNicsTken · · Score: 1

      Well I gues it hasn't been posted enough, because you still don't understand it. If you read it you would see the artists made about 4K each, but still OWE 14K. So even using "New Math" they end up in the hole.

      Following your logic, the artits get paid nothing under Cringley's plan, so they probably wouldn't make any money at it. You better tell Red Hat and the other Linux Distro's about this. Anyone can get their product for free, so how are they ever going to make money from it?

      If people like something they will spend money to support it. It may not be as easy as having a Nazzi like group distribute your stuff and take 95%, but it can work.

    4. Re:Where are the musicians? by Strych9 · · Score: 1

      Cancer is a horrible thing. However sometimes you need take the kemotherapy and kill off all the bad growth before good quality cells can come back.

      Remember, it is always darkest before dawn.

      We will beat this.

    5. Re:Where are the musicians? by Strych9 · · Score: 1

      Cancer(like the RIAA) is a horrible thing. However sometimes you need take the kemotherapy and kill off all the bad growth before good quality cells (the musicians) can come back.

      Remember, it is always darkest before dawn.

      We will beat this.

    6. Re:Where are the musicians? by Anonymous Coward · · Score: 0
      Cringely sounds like one of these guys who think the cost of the average recording looks like this: 1. CD and box, 10 cents 2. ??? $19.90. Profit!!!
      What are you talking about? He's right. You spend your $500 an hour in the studio, production costs for a CD are as you stated.
    7. Re:Where are the musicians? by TheRevenant · · Score: 1

      I think you've forgotten that you also have to pay for the costs of:

      * composing the music
      * training the artists (incl. practice)
      * design and printing of CD cover art
      * advertising
      * the video clip
      * instruments and equipment
      * shipping

      Sure, there's a heavy markup on CDs, but there _is_ more that goes into it than just recording media and studio time.

  67. Cringely is smarter than people think. by Anonymous Coward · · Score: 0

    Although ideas like this one may not work out, there are is one major effects it can have - it gets people thinking.

    When reviewing why this idea doesn't work, people may also discover that a variation of the idea will work. It is a process of elimination.

    Although it is now a bit dated, if you get a chance, read Cringely's book "Accidental Empires".

    Not only will you learn about the history of microcomputers, but, what I consider to be more important, which is why I'm reading it again at the moment, Cringely identifies the human behaviours that drove the microcomputer evolution.

    Who'd have ever thought that a description of cognitive dissonance would be in a book about PCs ?.

  68. forget music sharing we need law sharing by noldrin · · Score: 1
    If we exploit this loophole it will only be closed up in court or by the RIAA buying a new law in congress. The real legal solution is to take back our government.

    For now, what we need to is to set up a legal coop site as a clearinghouse of info on what you can do if you are served papers by the RIAA. Since these will be civil cases, people won't get free lawyers, and many of them won't be able to afford them. A page of useful info may allow people to defend themselves and at least to know what not to say when talking to an RIAA lawyer in order not to further incriminate themselves.

  69. Missing the point by Gregoyle · · Score: 2, Insightful

    I think you're missing the fundamental "hack" the article implies.

    If I own part of a corporation, and that corporation owns a recording, do I not have rights to that recording? Provided there is nothing in the corporate charter prohibiting this, I see no reason it wouldn't work. The difference between this and my.mp3.com is that the users own the service they are using.

    The only hole I can really see is in the distribution method. If it's provided by a corporation as a service to its shareholders that's one thing, but if it's provided by a separate company? I'm not sure. Of course, I'm NAL.

    --

    "He's more machine now than man, twisted and evil."

    1. Re:Missing the point by leviramsey · · Score: 4, Informative

      Ownership is not transitive (at least in this sense). The assets of the corporation and the assets of the shareholders are separate (though the shares of the corporation are assets of the shareholders). Part of the definition of a corporation is that it is a separate entity from its shareholders.

    2. Re:Missing the point by AKnightCowboy · · Score: 3, Insightful
      If I own part of a corporation, and that corporation owns a recording, do I not have rights to that recording?


      Uhhh, no? Otherwise why wouldn't you just buy 1 share of Sony and AOL-Time-Warner, etc.? If that argument held any water at all you'd be legally able to download any song you wanted by a company you had a share in.

    3. Re:Missing the point by buck_wild · · Score: 1

      Excellent point...

      Imagine the implications if that really was the case! I could outfit my house with the best stuff for virtualy nothing, because I already own a piece of the company.

      --
      If all you have is a hammer, everything looks like a nail.
    4. Re:Missing the point by tinrobot · · Score: 4, Insightful

      If I own part of a corporation, and that corporation owns a recording, do I not have rights to that recording?

      The best way to look at it is that music is similar to software. If you own a copy, you have a right to make a backup. I own a CD, I can back it up to my computer or mp3 player.

      Fair use dictates that the copy is for personal use only. I can listen to my stereo, my computer, or my mp3 player, but I only listen to them one at a time. If I copy it to someone else's device so they can listen simultaneously, it goes beyond "fair use."

      If I have a copy of Photoshop, I can only use it on one computer at a time. Same for a corporation. Even if all your emplyees were shareholders, you couldn't buy just one copy of Photoshop and copy it to ALL their computers -- even if they all technically "own" it. It's simply NOT legal.

      Cringely's scheme is quite lamebrained...

    5. Re:Missing the point by magarity · · Score: 1
      "If I own part of a corporation, and that corporation owns a recording, do I not have rights to that recording?"

      Nope. For example, I happen to own 100 shares of Red Hat but if I go to corporate headquarters and help myself to a workstation they'll call the cops. The same for intellectual property. Stock ownership is not direct ownership of a portion of the company's assets. It is ownership of a claim against assets and future revenues. Remember that corporations are legal entities themselves. As such, the corporation owns its own property, physical and intellectual, and this does not pass through except in a dollar value sense to the stockholders. So in the example of a music cd, if the company buys the CD for $19.95 and you own 1% of the outstanding stock then you can put $.19 under 'assets: cd music' on your ownership balance sheet. But you still can't go take the CD and make your own copy.

    6. Re:Missing the point by the_quark · · Score: 2, Insightful

      I understand where he's coming from, I'm just saying it doesn't work. Even if the company could make copies of the CDs for distribution to shareholders (which the MP3.com case pretty clearly shows is illegal, anyway), you would at most be able to allow one shareholder (or employee) to listen to a given song at a time, even if the corporation has fair-use rights like that at all, which is doubtful.

      You ask, "If I own part of a corporation, and that corporation owns a recording, do I not have rights to that recording?" The answer is, quite simply, "no, you do not." At best you might have the right to go listen to it at the corporation (if management lets you) without making a copy of it. If management doesn't let you, I guess you can go start a proxy fight to get a listening station in the corporate lobby. :)

      Look at it this way: If you own one share of a public company, you own like 1/30000000th of it. I figure that gives you the right to 1/30000000th of the CD, which is .00014 seconds. ;)

      If it were this easy, every corporation could issue one share of stock to every employee and buy one copy of every piece of software they wanted to use. Such a result so obviously flies in the face of the intent of copyright law that, even if it weren't clearly illegal now, if it somehow made it through the court system, it would quickly be made illegal.

    7. Re:Missing the point by meta-monkey · · Score: 4, Insightful

      Uhhh, no? Otherwise why wouldn't you just buy 1 share of Sony and AOL-Time-Warner, etc.? If that argument held any water at all you'd be legally able to download any song you wanted by a company you had a share in.

      Sorry, that doesn't work, either. It's up to the rest of the stockholders to decide whether or not you have access to the corporations assets and secrets. However, what Cringely is talking about is one where the corporation DOES grant these rights. The problem is I don't think the corporation has the power to grant these rights in the first place, so the point is moot.

      --
      We don't have a state-run media we have a media-run state.
    8. Re:Missing the point by Usquebaugh · · Score: 1

      Most companies choose not to distribute their assets in such a manner, but is it illegal to do so? Your argument is that all corporations will do everything that is allowed under law. this is not so, but is the point legal?

    9. Re:Missing the point by Java+no+not+that+jav · · Score: 0

      the problems you would run into with software would have more to do with license agreements then fair use.

    10. Re:Missing the point by richie2000 · · Score: 1
      Even if all your emplyees were shareholders, you couldn't buy just one copy of Photoshop and copy it to ALL their computers -- even if they all technically "own" it.

      That's only because Photoshop has a license that you (allegedly) agrees to when purchasing the CD. Many RIAA stooges say that you also buy a "license to listen" when you purchase an audio CD, but this is simply not the case. No shrinkwrap EULA, no signature, no license. It's a clear transfer of ownership.

      The best part of his idea is that all this crap about corporations being legally persons FINALLY comes back to bite them, really, really hard. Hoo-yah!

      Oh, and BTW:

      snapster.com

      Registrant:
      Roxio, Inc. (SNAPSTER2-DOM)
      455 El Camino Real
      Santa Clara, CA 95050
      US
      --
      Money for nothing, pix for free
    11. Re:Missing the point by jargoone · · Score: 0

      Holy shit, mod this up. meta-monkey is right on the meta-money.

    12. Re:Missing the point by jargoone · · Score: 0

      Many RIAA stooges say that you also buy a "license to listen" when you purchase an audio CD, but this is simply not the case. No shrinkwrap EULA, no signature, no license. It's a clear transfer of ownership.

      So what the hell do you want? You're one of these fucks that believes that everything you get your hands on belongs to you? Just because you touch something, or listen to it, or run it on your Linux system (how do you know what a EULA is, again?) doesn't mean it's yours.

    13. Re:Missing the point by NEOtaku17 · · Score: 1

      This copyright nonsense has gone to far. Fair use...how rediculous. What if I'm having a party and we have speakers thoughout the house playing copyrighted music, do I have to stand at the door making everyone buy a copy of the CD before they come in. This stuff is complete BS. We really need to fix all these stupid copyright laws.

    14. Re:Missing the point by Dr_Cornholio · · Score: 1

      I've already posted two comments on the pro side of the argument, and your post got me thinking a little. The company/organisation that Cringely describes does not own the recording. They merely own a license to it. The record company still owns the recording. In order for this to succeed, Cringely's 'company' must purchase a volume license for all it's members/shareholders to obtain a copy of the recording. Try making a company like this that instead of music, shares windows operating systems and see how long it takes before Microsoft sues the company and all members/shareholders into oblivion.

      I know that Microsoft has very strict licensing terms, that's why a company can't purchase a single copy of win2k and install it on 500 different machines. The RIAA doesn't use such licenses, YET. I can just see every CD having a licensing contract to sign at the record store counter if this model were put into practice.

      I would really like someone to reply to this and explain why I am wrong because I thought this was a brilliant model when I first read it and I'd hate it if I was the one that stuffed it for everyone. BRING ON THE BITCHING! :)

      --
      In Soviet Russia, the monkey spanks you!
    15. Re:Missing the point by itzdandy · · Score: 1

      of course you could by one copy of photoshop and use it anywhere in you company.

      You could only have it running on a SINGLE machine at any one time and you would problably have to make some sort of effort to enforce this. Adobe may have a clause in the licensing aggreement that states the software may only be installed on one machine, then in fact you would have license to a single copy of the software and could use it on as many as you wished as long as it was installed on just one.

      This could be done via mapped drives or something like that, assuming photoshop would run without 10,000 registry additions and dll in system32/ ....

    16. Re:Missing the point by sql*kitten · · Score: 1

      Part of the definition of a corporation is that it is a separate entity from its shareholders.

      Indeed, that is the whole point of a corporation - if your business venture goes horribly wrong, your exposure is limited to the value of your shareholding. You might lose it all to pay off creditors, sure, but those creditors could not come after you personally. That's why the Lloyds of London scandal a few years ago was such big news - under syndicate rules, creditors can come after individuals. If the "names" (as they are called) had been shareholders, like in most financial institutions, they'd have been safe(r).

    17. Re:Missing the point by benzapp · · Score: 1

      Uhhh, no?

      Uhh, the CORPORATION DECIDES WHAT TO DO WITH ITS PROPERTY.

      Look up a co-operative apartment. the corporation in which each resident is a shareholder, decides what is common area and what is private. You have no right to even living in the building, the corporation can kick you out whenever they wish and force you to sell your share of the company.

      Sony could conceivably decide to grant every shareholder free use of its recordings... they may not happen, but it IS their right to do so.

      --
      I don't read or respond to AC posts
    18. Re:Missing the point by blitziod · · Score: 1

      make it a membership club. Pay 20.00 per year and get unlimited access to the clubs library.

      --
      The only way to bust a doper--is when you yourself become a smoker!
    19. Re:Missing the point by EvilSporkMan · · Score: 1

      Sony could conceivably decide to grant every shareholder free use of its recordings... they may not happen, but it IS their right to do so.

      With regards to the current "plan" under discussion, that is because they own the copyrights to those recordings, not just because they bought one CD.

      --
      -insert a witty something-
  70. moron re-proposes oil for babies program by Anonymous Coward · · Score: 0

    that's right. who are you going to call when the music dies?

    consult with/trust in yOUR creator. vote with yOUR wallet. that's the spirit.

    the daze of the Godless phonIE payper liesense hostage ransom stock markup FUDgepeddling bullshippers is over. that's that.

  71. DOJ interview says this isn't fair use by Logic+Bomb · · Score: 2, Insightful
    According to today's earlier interview answers from the DOJ lawyers, this seems to totally violate the Fair Use doctrine. Quote from their answers:
    The doctrine of fair use was originally adopted by judges ruling in early copyright cases. Ultimately, Congress incorporated the doctrine into the Copyright Act of 1976, where fair use is now codified at Section 107 of Title 17 of the U.S. Code. In creating section 107, Congress listed four factors to be considered in determining whether a use is fair or not: (1) the purpose and character of the use, including whether the use is of a commercial nature or is for nonprofit educational purposes; (2) the nature of the copyrighted work; (3) the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and (4) the effect of the use upon the potential market for or value of the copyrighted work.
    It seems pretty obvious that this proposal would have a massive effect on items 3 and 4. The point of this use is to get around copyright law on a massive scale just to get people almost-free access to protected material.

    Fair Use is law of spirit more than of letter -- there is no bright line distinguishing what exactly it is. I don't think you'd find a judge that would let this proposal weasel through.

  72. Fair Use and Multiple Instances by FroBugg · · Score: 1

    I'm no expert on fair use. Heck, I doubt any of us here are, but maybe someone can help clarify something for me.

    I burn copies of most of my CDs, and keep the copies in my car. That way I don't have to worry about them being damaged or stolen. As far as I know, that's perfectly legal.

    Now, I personally can only listen to either the original or the copy at once. Not both. But, if my brother takes the car for a drive and listens to a CD, I may be listening to the same CD at home. I purchased a single disc, and it's being played in two entirely separate locations at the same time.

    Is that still legal? If not, then this whole plan is definitely a piece of crap. If so, then we have to begin considering the difference between personal and corporate use.

    1. Re:Fair Use and Multiple Instances by Lt+Razak · · Score: 1
      Interviews with the RIAA have often pointed to admissions that some of this stuff is indeed illegal, but so small, that they'd never take any actions against it.

      However, if you were to base future exploits on this that were much grander in scale, you bet they would stand up in court and say that this was illegal.

      The difference between technically illegal, and practicality.

  73. Idiotic by panaceaa · · Score: 2, Insightful

    If such a concept was possible, every company would just buy one copy of software for all their employees. The software is bought by the company, and the employees are agents of the company. In addition, in the tech industry employees usually own stock in the company. But there's a pretty large amount of case law showing that each employee needs their own license for the software they use at work.

    The same would go for music.

  74. i dont know... by evil9000 · · Score: 1

    i like his idea of sending radiowaves around trees and mountains by using a set of wires and unpowered antenna better.

  75. what happens when the RIAA buys shares by Petronius · · Score: 2, Interesting

    of this wonderful company? in particular, what happens when they become a majority stockholder?

    --
    there's no place like ~
  76. morons re-unbale pateNTdead eyecon0meter(gpl) by Anonymous Coward · · Score: 0

    we could of just used the old smoke&mirrors(fud) detector, but we've become so fond of va lairIE's PostBlock(tm) device, we decided to reuse the gnu stuff again.

    thanks so much.

    consult with/trust yOUR creator. vote with yOUR wallet. that's the spirit.

  77. yes, maybe, yes, no? by jxliv7 · · Score: 1
    good grief, i wish i had 2 million bucks to blow, i'd ride that idea of cringely's like it was seabiscuit in the 2 furlong.

    BUT, while it's a good idea, don't count on it being implemented. Americans (and i am one) just aren't quick on the trigger anymore. the good ol' days when somebody jumped on a cause and rode it home come hell or high water seems to be gone with the wind.

    the problem is, how do you stop those downloaders who have had all that free stuff they can peer2peer out there? there has to be a reason for music lovers to jump to the legal side of the fence and PAY, but i just don't see it. once you have gone to the dark side of p2p, you don't come back...

    1. Re:yes, maybe, yes, no? by Lt+Razak · · Score: 1
      the good ol' days when somebody jumped on a cause and rode it home come hell or high water seems to be gone with the wind.

      A little harsh, don't you think? :)

      We are, afterall, talking about a $2 million cause. I think that's enough money to cut out 99% of us good-will thinkers. Not only that, but it's 100% guaranteed to end up in court for the next 100 months. Besides, it's only been 24 hours since the idea has been out. And... lots of ideas have been showed today at slashdot that this may not be feasible.

      I also think that the amazing number of P2P projects that have come out in the last few years show that those that could....did indeed jump on a cause and ride it home come hell or high water.

  78. Yes by mindstrm · · Score: 1

    So perhaps it needs to be a privately held cooperative, rather than a publicly traded company, where the owners really are co owners.

    Also, with regards to public companies... the shareholders might be last in line, but then, so is the owner of a small home based business when he owes money all over. IT's not all that different.
    The stuff you are mentioning is about how debt is handled, not about who owns what. the shareholders DO own the company, and it's assetts, there are just rules they have to follow.
    If the company has it's bills paid, and pays it's taxes, and it's employees, part of the company's business COULD be that the shareholdres have rental access to the company assetts.

    The scenario you draw is about a company liquidating, and who gets what.. that's a totally different matter than the running company.

    1. Re:Yes by leviramsey · · Score: 1
      Also, with regards to public companies... the shareholders might be last in line,

      First of all... corporation does not imply public company. And in any corporation, the shareholders do not have a right to the assets of the company until it liquidates.

      Say you own .0003% of IBM. You can't go to IBM and demand your share of their assets. Now, if IBM were a partnership, you could do that (withdraw your share at any time). However, no one would want to do this as a partnership (because the partners are jointly liable for the actions of the partnership). Even if incorporated as an LLP, you would still need a General Partner who takes all liability beyond the initial contributions of the limited partners.

  79. Even if it IS all perfectly legal... by Anonymous Coward · · Score: 1, Interesting

    ...the market would disappear. Once this plan has been implemented (i.e. all EXISTING albums are bought up), every member of the RIAA knows that if they release a new album, they'll sell a few hundred copies to non-Snapster-shareholders, and one copy to Snapster, which will then be downloaded by tens of millions. There's no way for the labels to recoup their costs. Forget whether they would want to release new albums, they couldn't possibly afford to!

    (reply with your smarmy comments about the rise to power of the indie labels, the labels changing their business models to pure-play marketing organizations, etc.)

  80. This just in... by Anonymous Coward · · Score: 0

    Snapster-Lite available for download.

  81. Nobody is claiming it's fair use. by mindstrm · · Score: 1

    It's the right of an owner to listen to the music he legally owns.

    Fair use doesn't come into play when you listen you a cd you bought at home.. fair use is for exceptions to that.

  82. v2.0 by ryanr · · Score: 3, Funny

    OK, I thought of an improvement.

    We'll sell shares in the Library of Congress. They will be issued to all citizens of the US, and the government can come up with some sort of service to collect revenue to fund it. Then, we'll have the right to a copy of anything in the Library of Congress (inc, tm (r)).

    Now to figure out some way to trick all of the producers of copyrighted works into giving a copy to the Library of Congress...

  83. The sad truth is ... by gotan · · Score: 2, Insightful

    The idea is brilliant, it might even be legal, but the sad truth is, that the whole business would be probably tied up in the courts for 2-3 years with noone being able to hear any of those purchased records, the price of the shares falling to a few cents, a lot of wasted money and disappointed shareholders who don't want to hear anymore about it after the first year of legal troubles. The problem is not the idea itself, it is the fscked up legal system that allows to drag out the proceedings endlessly and bleed out anyone who hasn't got a few million dollars in his bank accounts.

    That is not to say i wouldn't buy a share or even a few shares when it starts. Even betting on the off chance that something good results from this is better than just sitting around watching the RIAA turn back the wheel until we're back at feudalism. And at least it will tie up some of their lawyers in the courts. Yes, by now i'm so pissed off with the record industry that i'm willing to give away money if it hurts them in any way.

    --
    "By the way if anyone here is in advertising or marketing... kill yourself." -- Bill Hicks
  84. Why not a NetFlix for music CD's? by Anonymous Coward · · Score: 0

    An earlier post suggested a NetFlix type service for music CD's. Is there a NetFlix type service for music CD's and if not why? Would it be legal if the CD was physically shipped to each customer rather than the MP3.com setup where they owned a copy but distributed it electronically?

  85. Yeah, BTW, it's slightly OT... by TitaniumFox · · Score: 1

    [words]

    --
    -- I'd say your post was about 3 monkeys, 18 minutes.
  86. This is what RTMark does and it works by gad_zuki! · · Score: 3, Interesting
    What Cringley is doing, in his round-about way, is exactly what the people are RTMark(pronounced artmark) are doing: exploiting limited liability and the ruling that coporations are individuals for his own end.

    Read the RTMark FAQ if you don't instantly grok the above.

    Once the corporation has been established no one is going to the lose their shirts, e.g. college kids won't be forced to give up their life savings. All you can lose is whatever the corporation owns. I think the only thing that breaks the corporate shield is worker's comp.

    So Cringly is pulling an RTMark, but instead of activist reasons he's using it to trade music (which could be seen as an activist reason too).

    Bravo.

    Now here's the fun part. Why not live our lives as corporations? People complain about corporate power all the time, so if we can't beat them, lets join them. What if everyone made a corporation in their name and put all their assests into it? From there you can add shareholders (family, friends) then safely and legally swap MP3s, share ownership of just about *anything*, hire people to do your job at a cheaper rate and pocket the difference, wear a world's sexiest CEO t-shirt, take out loans, form off-shore tax havens (why pay tax?), have a great time knowing that whatever you do will be the fault of the corporation not you personally, etc.

    Excellent "What is a corporation" primer here.

    A corporation can buy, trade, sell and make loans. A corporation can literally do anything you as a person can do as long as these thoughts and actions are simply documented by resolution. When you think it through, the possibilities become fascinating. The key point to remember here, is that when you own a corporation, the corporation exists as a separate entity or person.


    Damn straight. I'm off to become a corporate entity.
    1. Re:This is what RTMark does and it works by DDX_2002 · · Score: 1
      If you put all your assets into a corporation and then get sued for something, you're right that it would be harder for the plaintiff to go after the corporation's assets. Unless the corporation participated in the act and was therefore liable... did you use your computer to download that song? you did? That computer belongs to John Doe Ltd, I see. Well, JDL ought to have stopped you doing that. They're now a defendant too.

      Even if they just go after you, they can go after all your assets... like those shares in your holding company. So unless you want to shelter your holding company shares by giving them to someone else (who you'd better trust with your life), you're not much further ahead. What some do is put the company offshore, or use complicated structures like panamanian foundations or quasi-trusts like stiftungs in liechtenstein, but usually a determined plaintifff (like say, the IRS) can get the money anyhow.

      --
      MHO. YMMV. Any resemblance between this post and real persons, or reality in general, was accidental.
  87. Yes by mindstrm · · Score: 1

    but the article indicated publicly traded company. Is your company publicly traded?

    Incorporation is not the same thing.

  88. err, no. by pb · · Score: 1

    Software--unlike books or music--is generally licensed, and not sold, which means that the purchaser doesn't have rights under First Sale Doctrine.

    --
    pb Reply or e-mail; don't vaguely moderate.
    1. Re:err, no. by ryanr · · Score: 1

      So you think the software license applies to the software copyright owner as well? You're saying Microsoft can't make copies of Windows in order to sell them, because of the EULA? Or if they can, then so could I, because as a proud owner of my single Microsoft share, I are Microsoft. So goes Cringley's theory.

    2. Re:err, no. by pb · · Score: 1

      Microsoft can make copies of Windows to distribute to the public as the copyright holder; in fact, they have the exclusive right to do so. As for the EULA, that's a contract between you and Microsoft, theoretically for mutual benefit--they give you some rights, you give them some rights, etc., etc. But I doubt they'd try to take away that particular right of theirs in a contract that they wrote. :)

      You could only do that if the company in question gave its shareholders such rights to its intellectual property. For Cringley's example to work, the company would probably have to do a little more than purchase one copy of one CD, but in Microsoft's case, they already own Windows, and if they wanted to give their shareholders a discount, I'm sure they could. I hear they have a sweet deal for employees, at least.

      --
      pb Reply or e-mail; don't vaguely moderate.
  89. mp3.com is not relevant by starcraftsicko · · Score: 5, Insightful

    MP3.com owned 300,000 CDs, but the usership of MP3.com was not limited to MP3.com. I'm not saying that Cringely's idea would work, only that the MP3.com involves different legal issues.

    The naysayers to this idea forget that the _critical_ component of this plan is that it must IMMEDIATELY go public. It also must limit downloads to owners (shareholders) ONLY. While the cost of going public may be significant, there is not necessarily a need to bring in investment bankers and join the NASDAQ or NYSE... The press would likely provide the marketing for free on the nightly news (due to the sheer audacity of the idea), and the employees of the business could probably sell the shares via telephone. "limit one share per customer"! (or something).

    The real problem here is that by sharing the backup or shifted assets of the company among the owners in this way, IF a court later decides the idea is illegal, they (the RIAA) might then seek to recover directly from the owners... Usually by being a corporate entity, this kind of thing is avoided, but since the corporation is distributing it's assets directly to the owners, who can say.

    Concerns that users may share their downloads with their non-owner friends are baseless. TODAY, even without this company, people MAY record things from TV and share it with their friends... and TV and radio are legal last I checked.

    One final note. In the end, the legality of this plan would not matter. Unless stopped quickly by injunction, Current RIAA distribution methods would become obsolete technically (ok, ok, they are already technically obsolete), and practically. If this became widespread, digital distribution would be the only comercially viable alternative. The distributors would have to change or declare bankruptcy in short order. This company would need to be able to drag out any court proceedings... basically, they'd need to take a page out of Micro$oft'$ playbook. A delay of two to three years is all that is needed...

    There will always be a small market for physical distribution, but the days of monopoly-via-artificial-scarsity-of-media would end. And wouldn't that be nice?

  90. Re:one word: my.mp3.com by gilroy · · Score: 3, Insightful
    Blockquoth the poster:

    However, there is still a distinction between the assets of the corporation and the assets of the shareholders

    Strictly speaking, this is only if the corporation is that modern beast of commerce, the Limited Liability Corporation. You can certainly have -- and indeed, prior to the railroads, often did have -- wholly owned companies which were not LLCs. Of course, no sane investor would ever buy into Snapster if it weren't an LLC, since then the RIAA would be able to sue for that investor's personal wealth as well as that of the company.


    Hmmm. I wonder if that could be a way around the ridiculous lawsuits? Incorporate yourself, then file-share as the corporation. Then.... profit! :)

  91. if Snapster is not bankrupted in court first... by edverb · · Score: 2, Insightful

    I think a gazillion indie bands would leap at the chance to be distributed alongside the entire catalog of digitized music, especially if the site could serve up streaming radio and indies have a prayer of getting some airplay...

    What I'm really saying is I'd like to see "the Snapster Studios Records Radio Entertainment Channel Online" and 500 other startups doing the same thing, because ultimately future companies built around this business model are owned by it's shareholders, who are the users.

    I'd like the artists to enjoy a larger percentage of that revenue and better contract alternatives than they are currently, under the 75 year old curmudgeon with five heads that's suing potential lifelong customers, and can't imagine why CD sales continue to drop other than file sharing (answer: the economy sucks and so does your record company, two reasons I'm not buying your CDs).

    And another thing that bothers me...some record companies have blatantly hired and trained armies of would-be usurpers to take over the International Space Station! Think about it.

    --
    Vonnegut: "What is the purpose of life? To be the eyes, ears, and conscience of the Creator of the Universe, you fool."
  92. HAR HAR by Anonymous Coward · · Score: 0

    BEST. GOATSE.CX LINK. EVAR.

  93. Re:one word: my.mp3.com by buck_wild · · Score: 1

    So if I own 1 share of Time Warner (becoming a shareholder) I should be able to download whatever music I want by that company, right?

    Heck, why not expand your idea to include hardware? Maybe I should buy a share of Intel, so I can get all of my future processors for free.

    --
    If all you have is a hammer, everything looks like a nail.
  94. logical next step by frovingslosh · · Score: 4, Funny

    No, your Honor. I did not pay this woman for sex. I bought a share into the corporation that she is married to.

    --
    I'm an American. I love this country and the freedoms that we used to have.
  95. no more pyramids by Anonymous Coward · · Score: 0

    After the slavery based economies of Egypt and Central Mexico collapsed, no more pyramids were built. Do we really think that is the right answer ? How do the architects make money ? Will it all be personal houses ? Do we really want to live in a pyramidless society like the surrounding heathens ?

    The truth is, the world has a few pyramids, they're cool, and we don't need any more. So there is no need to suffer under the kind of society that made them necessary and that made them.

    Similarly, sometime in the next ten years the last 100 million dollar summer blockbuster will be made. It's ok. We will still have all the others on freenet.

    And the new movies will be there too. You know, the ones like "Clerks" except what "Clerks" would be if the kids had $500,000 worth of equipment. Because what costs $500,000 now will be merely a largish birthday present in ten years.

    There will be no more massively hyped albums by singers so famous they are basically short lived religions. That will be fine, though. The old music of the "massive project age" will still be free for the taking. The new music will largely be hobbiest produced -- shareware like volunteer payments might pay for a few equipment upgrades, but unless you can play well live, you have a day job. It's ok though; out of the massive amount of garage crap out there, the one good band can become famous without quiting there day job. Society no longer needs band managers and entertainment lawyers any more than we need two guys with a whip and drum to keep the rowers going to ship goods.

    I'm not trying to persuade you that this will happen. It will happen whether you want it or not. The harder you fight it legally, the larger portion of law and order falls with the Pharoh. I'm just posting this so that in ten years I can dig this up out of the finally working slashdot search feature and say "I told you so, meta-monkey."

    1. Re:no more pyramids by Anonymous Coward · · Score: 0

      Of course, to amplify your point, Egyptian architects didn't just one day up and announce "due to the inevitability of history, we will no longer be planning that 5th pyramid you've all been hoping for"...

      No, what happened is that things got bad, people starved, wars happened, dynasties fell, and by the time of the late Ptolomies the whole of Egypt was having to play a cat & mouse game with them in the starring role of "mouse" just to keep surviving as a nation.

      So, I agree with you that it is probably inevitable, but its also probably going to be painful. I'm just posting this so that in 10 years, when you find that meta-monkey has been out of a job for 4 years due to a floundering economy, and can barely remember what it was like using a computer, and thus is somewhat less than impressed by your prescience, and in fact inclined to give you directions to the hot place where the bad people go, you'll also find this post and not feel so surprised.

    2. Re:no more pyramids by meta-monkey · · Score: 1

      Comparing the RIAA to the Pharohs is a little stretch, methinks.

      Maybe you don't like big budget movies, but I do. Like I said in my post...Gangs of New York was INCREDIBLE. I think I'm going to buy it. I'm more than willing to pay for art of that quality, and if you have your way, a movie like Gangs of New York could never have been created. Nobody was forced into slavery to make it, either, and the didn't violate anybody's rights.

      So, how about we cut a deal...you start up a co-op of small, independent musicians and artists to produce art, distributed for free, and partially funded by a donation system. I pay $5 to rent or $20 to purchase a copy of big budget movies I like. Only thing you have to do is not copy the big-budget movies without paying the distributor for them. After all...you've already said you don't like those kinds of movies, so it shouldn't be a big deal, right?

      --
      We don't have a state-run media we have a media-run state.
  96. Re:one word: my.mp3.com by leviramsey · · Score: 1

    However, corporations in the US are limited liability by definition. The LLC designation is (along with its cousin, the LLP) one of the new methods of incorporation that a few states have trotted out which mingle features of partnerships, sole proprietorships, and traditional corporations.

  97. Why not live our lives as corporations? by mindstrm · · Score: 3, Informative

    Because the principals of a corporation DO have some liability for it's actions. The board, the executive officers, have some liability for the actions of the company.

    You can't just form a corporation with you as the sole director and owner, and escape liability, or taxes.

    In a typical company, the corporate officers, and the board of directors, ARE responsible for what happens, and have a fair deal of personal liability for what the company does. Their assetts are not the company's, true, and if it's merely a matter of the company going bankrupt, they will be okay.. but in many places, if the company dodges taxes, it WILL be taken out of the director's pockets, and if the directors instruct the company to do something illegal... they can be held accountable.

    A corporation exists sort of like another person, but not entirely.

    1. Re:Why not live our lives as corporations? by gad_zuki! · · Score: 2, Informative

      >You can't just form a corporation with you as the sole director and owner, and escape liability, or taxes.

      You're correct, but you can escape A LOT of liability and you can pick and choose what assets go where. Also, there's a lot more flexibility in tax law with corporations than there is with individuals. Essentially, if the income you make goes back into the corporation as capital (that could be a new MP3 player) its a business expense.

    2. Re:Why not live our lives as corporations? by jday · · Score: 1

      Indeed, principals of a corporation have liability for its actions, but only in-so-far as their interest in the corporation. An individual who is the sole director and owner will have liability and taxes. However, that liability and taxes are different than that of an individual, and this CAN be used to the advantage of the individual. Consider, for example, that corporate taxation occurs only on net income, after all expenses are considered. You can pay for your car, your insurance, your mortgage expenses, etc. all with pre-tax dollars of your corporation. Compare this to the rest of us 9-5 schmucks who give out 30-40% of EVERYTHING WE MAKE to the government and THEN pay our expenses. Would you rather pay 30% on $40,000 ($12,000) or 40% on $10,000 ($4,000)? This won't work for us poor schleps who work for someone else as the government takes a chunk of our butt every pay day. Nonetheless, if you're an independent contractor and you haven't incorporated yet... you're paying the government WAY too much. As for the "Best Idea Ever," I believe there are too many doom-sayers out there with excuses why it won't work, and not enough innovators searching for new ways to MAKE it work. I (or you) may hold the answers, but if you don't try to find them, you won't.

      --
      Peace and Blessings, jday
  98. I never noticed the ring before. by Anonymous Coward · · Score: 0

    Is Darel McBride married ?

  99. MOD PARENT UP!!! by Anonymous Coward · · Score: 0

    do it now. please.

  100. Not necessarily. by pb · · Score: 1

    I was not aware that Cringely was trying to base this around Fair Use, (I had hoped he had a better argument than that at the core of this!) but I did in fact read the article, and before it was posted on /. IANAL, and apparently neither are you; Fair Use is not the holy grail of all copyright law--there are other limitations placed on the copyright holders, and they aren't all listed in the code. I mention one of them in my other post in this thread. I doubt that it could be used to justify what Cringley wants to do here, but it would be more likely to succeed than Fair Use.

    Incidentally, I end up with copyrighted material stored on my computer all the time. Corporations give it to me, and for free! Since no sale has taken place, they still have the right to do whatever they want with it, and could probably try to sue me depending upon the countries involved and their interpretations of the law. It's all hidden away in my browser cache.

    --
    pb Reply or e-mail; don't vaguely moderate.
    1. Re:Not necessarily. by Laur · · Score: 1
      Fair Use is not the holy grail of all copyright law--there are other limitations placed on the copyright holders, and they aren't all listed in the code. I mention one of them in my other post in this thread. I doubt that it could be used to justify what Cringley wants to do here, but it would be more likely to succeed than Fair Use.

      You are correct that IANAL, but can you tell me what else besides fair use allows a non-copyright holder to make copies of a copyrighted work without the copyright holder's permission? (Gawd that sounded awful ;). You mention the First Sale Doctrine elsewhere (I assume this is what you were referring to) but this does not apply since no copies are being made. I said in my earlier post that if the corporation wants to share the physical CDs with it's shareholders this would be perfectly legal (if inconvenient) since no copies are being made.

      Incidentally, I end up with copyrighted material stored on my computer all the time. Corporations give it to me, and for free! Since no sale has taken place, they still have the right to do whatever they want with it, and could probably try to sue me depending upon the countries involved and their interpretations of the law. It's all hidden away in my browser cache.

      You seem to be using a straw man argument here. Since when are copyright holders required to charge for their work? I have tons of GPLed code on my computer, and I'm downloading copyrighted music right now for free with iRATE (with the copyright holder's permission). I believe it is assumed that if corporations or individuals place content on the publicly accessible web they are giving you permission to make a copy of it for access purposes, since you have to download it to view it (or maybe making the copy is covered by fair use, I don't know). However, the copyright is retained by the owner and if you posted this content somewhere else you could very well be liable (unless it falls under fair use of course).

      --
      When you lose something irreplaceable, you don't mourn for the thing you lost, you mourn for yourself. - Harpo Marx
    2. Re:Not necessarily. by pb · · Score: 1

      Yes, First Sale generally just applies to physical items, although if you could guarantee that only one copy was extant, then First Sale might apply online as well. Without it, we couldn't legally have libraries or used bookstores (although there are special exceptions for libraries in the copyright code as well, much of which doesn't apply online).

      As for making copies, that generally falls under the transmission of a copyrighted work, which you probably wouldn't be able to do for profit, but might be able to do otherwise. As I said, I was hoping that Cringely had come up with something better than just First Sale; I'm somewhat disappointed about that. But if there is a loophole, then Title 17, Ch. 1 would be the place to start looking for it.

      re: browser caching--you misunderstand; since I was not sold this copyrighted material, I don't even have the right to First Sale, so this material is essentially still under the control of the copyright owner. If I have their permission, then I don't have to worry. But if I don't, then technically this could be copyright infringement; I know that it is or was considered copyright infringement in some countries, and in general this is a legal gray area, based on whether or not browser caching consists of "making a copy" (technically it probably does, but then, copying the image into RAM or VRAM, into a frame buffer, or displaying it on the screen all probably count as well). This is just another example of how the law can be slow to catch up to technological innovation.

      --
      pb Reply or e-mail; don't vaguely moderate.
  101. With a few tweaks and modz...maybe by danFL-NERaves · · Score: 2, Interesting

    While I doubt that a single copy purchase and multiple copy distribution would be reasonable or equitable to the companies and that create, produce, edit and distribute music this idea has some interesting possibilities. What if ...

    Create a corporation. Corporation could either be a co-op or publicly traded with multiple classes of stock. Their would be the normal two classes of stock (Common and Preferred) plus further classes of securities particular to this business. A third type of security would be issued as something like a common stock with a reverse dividend. For example, you could buy into the company by purchasing the stock but then to keep the stock valid you would be required to pay a reverse dividend. The reverse dividend would essentially be a subscription fee at a guaranteed rate. Failure to pay would render the security void, invalidate it for a period of time, change the securities fee schedule or revert ownership to the company. The securities, having a set rate which could cause the stock to increase or decrease in value in relation to the interest rate would be fully transferable so that they could act as something similar to options. (Okay, an investment quality subscription seems farfetched but I just like the idea.)

    The Corporation negotiates use rights with the copyright holders for digital use and redistribution. The contracts here would really have to do two things; guarantee unfettered access to the music by the corporation, allow the corporation to set rates as it sees fit (with no necessary relation between what the corp charges and what the copyright holder receives) and determine a payment schedule agreeable to the copyright holder.

    In regards to the agreements between the corporation and other companies I think it fair to note that it would be VERY important that deals be directly with the copyright holder. Ideally this would be (in order of preference) the author/band/singer/musician, the label/producer, the major label, the distributor and/or the licensing agency (RIAA). The more intermediaries get cut out the better.

    Owners or co-op members could have use of any piece of music on a sliding scale depending on purpose of use and membership type.

    In determining the amount of payment for stock and reverse dividend an equitable use/cost business model would have to be determined. For example, a standard user could download whatever music I like and listen to it without limit. A club or mobile DJ user could download with specific performance rights at a slightly higher rate. A radio DJ could purchase a set of rights for rebroadcast at yet another rate. Bulk use rights could be purchased by radio stations or other rebroadcast entities allowing use of any audio for any length of time. Use rights could allow rebroadcast, restrict redistribution, set quality requirements. The market would really determine all of this so I won't go further into the business model just now..

    Actual payment to the copyright holders would have to be on the basis of real and/or statistical models. This would mean that if you purchased a back library from Xunil Records of 1000 songs then regardless of what you are paid you would have to fairly report the actual use and probable use from a pre-arranged statistical model. So payment to Xunil might be a flat rate of $.10 per track, plus $.05 per download, where 450 songs were downloaded once, 100 were downloaded twice and 50 were downloaded three times. That would mean (1000*.10)+(450*.05)+(100*(2*.05))+(50+((3*.05)). But as we know one download would not mean only one use. The statistical model would have to describe the manner of compensation for any downstream uses.

    The real beauty here is that the company would be handling both distribution and licensing fee collection in a single step. Effectively this would displace bypass RIAA and deprive them of influence in any future digital music marketplace. Any business model that can do this is worth a look.

    Or I might be wrong. :-)

  102. Why not... by rsilvergun · · Score: 2, Interesting

    just force the RIAA to allow music sharing with a small (as in 5 cents a song) fee for each download.

    Frankly, I don't see why the current system of copyright is tolerated. It benefits only a very small number of people while harming tens of millions. Times and technology have changed, and the cost of distribution is now effectively nil. In that sense information _is_ free.

    Yes, I know there are other costs asociatated with producing a work, but even those costs are dwarfed by the economies of scale involved here. If every america downloaded just one album a month at 5 cents a song, that'd be around $150 million a month. Plenty to keep the industry going, I should say. I understand that in Napster's heyday, the volume of downloads was much larger than this.

    Furthermore, I don't see any reason why violations for copyright infringement should be punished with anything more than requiring the person charged to pay for each item at the going rate. Copyright violations are _not_ stealing. It's copying. That's why it's called copyright. If I steal your car, you have one less car. If I copy a song, you don't have one less song. You've lost a sale, nothing more. The degree of damage is much less.

    Not that this'll ever come to pass. Something I figured out a while ago is that just about everyone is secretly hoping to be the guy to stike it rich with copyrights/patents/whatever. So even though they probably never will profit from the system, and will probably end up being screwed over by it, they'll defend it to the death forever looking forward to the day they get to be the ones doing the screwing over.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
  103. why stop at music CDs? by eli867 · · Score: 2, Insightful

    Hey! Cool! You mean my corporation can buy just one copy of Microsoft Windows and my entire corporation -- and all its shareholders! -- can legally copy it?

    Something here doesn't quite add up...

  104. Re:Yep that'll work... For about three seconds. by Ptahian · · Score: 1

    Actually, I think those knowledge workers currently making slaves wages *pushing* those plastic discs around their stores, will do fine. They will be in HIGH demand by the vast multiplicity of new "labels" who are producing the many many groups that will florish (though at a small market capitalisation).

    Those knowledge workers will enable a Mom-n-Pop label to find their TEN groups and distribute their 200 MP3s to the real fans of 'North-East U.S. Ska flavored Punk with touches of Brazillian Samba', or 'Hard driving Country popular in Alaska this year but sung in Polish' or [fill in your own micro-music-genre]

    Getting paid to listen to tunes, blog and take PayPal payments for $1 per track (TO DO WHATEVER the LICENSEE WANTS TO DO WITH as part of the NEW MUSIC LICENSE). Not a bad gig. Or a bad business model. Cringely still misses the point: the RIAA as gatekeeper has died. The Music will start coming over the walls to the listeners and many folks will make some, but very much, money.

    -ptah

  105. Re:Yep that'll work... For about three seconds. by meta-monkey · · Score: 1

    Is that really a good thing? That the system should be set up so nobody can make money from digital content? Sure, musicians can tour, but what about non-performance artforms? What about movies? Books?

    Let's say I write The Great American Novel. I print the books, and go to sell it...some chump buys one copy, scans it, gets some friends to proofread it, then puts it in a nice eBook format on the web. I get nothing...nobody's going to pay to see me on tour. Do I have to resort to product placement or ads or something? "Johnson, made especially fast by his Nike brand cross-trainers with ProFlex Support, chased down the mugger..."

    Same thing applies to movies. Now, I don't think we should have the draconian controls the RIAA and MPAA want, but it shouldn't be a free-for-all, either. I, for one, think artists should be well compensated for producing good art. Please, no snappy comebacks about how much pop music sucks. There's lots of other good stuff out there. Also, the "Well, the RIAA rips off the artists..." ploy doesn't work, either.

    --
    We don't have a state-run media we have a media-run state.
  106. Economics... by starcraftsicko · · Score: 1

    Does no one here understand the basic concepts of economics? If people don't pay for music, there won't be any music -- or, at least, there will be very little. It costs money to produce. The artists need to eat. Sure the RIAA is evil, but two wrongs don't make a right.

    If the only reason music existed in the first place was so that you'd have something to do with a stereo system, you'd be right. But, if you'd believe it, music actually existed before the advent of the stereo.

    I have paid large sums of money (given my salary... Bill gates would call it pocket change) to see the performances of bands that I appreciate. I also regularly see and support local bands. Music is a performance art . So long as people are willing to pay to see bands perform, the economics will still support musicians and a "music industry".

    Would the RIAA's business model crash and burn due to instant Obsolescence? Certainly! But you yourself said that the RIAA was evil.

    The RIAA does not have a right to, nor even the reasonable expectation of, a protected business model. New business models need not protect existing ones. No economy NEEDS a RIAA.

    1. Re:Economics... by Temporal · · Score: 1

      Wrong.

      It is true that some types of musicians can make money off of performances. But, that only applies to music, and only some types of music. Think about some forms of electronica, where the entire piece is actually played by a computer, and all the musician does is sequence it. It still takes a lot of talent to write such music, but who the hell is going to pay to go watch a guy press the "play" button on his computer?

      And, of course, there are other forms of copyright. Can I go watch a performance of the newest video game? No! Can I watch a performance of a movie? Well, yes, but if there were no copyright, theaters would not have to pay to put those movies on the screen, and so the artists would not get paid. Of course, there's always old fasion theater, but we all know not many people are interested in that anymore.

      Anyway, it's clear that music is not primarily a performance art. It was at one time, but it is not anymore. I have never gone to a major band concert, and I never intend to, because I have no interest in watching people play the music. I just like the music itself. Apparently I'm different from you there, but I do believe a lot of people are like me.

      The simple fact of the matter is that if someone does something from which you could benefit, they have every right to ask that you compensate them for it. If they hadn't done whatever they did, you certainly wouldn't benefit from it then, so why should you be entitled to take it for free?

      Really, I feel silly arguing this, because the point is so fundamentally obvious. How anyone could make the kinds of arguments I'm seeing here on Slashdot, and actually believe them, is beyond me.

    2. Re:Economics... by meta-monkey · · Score: 1

      Bravo. It's great to see somebody else on here who actually gets it...check my post I think I make a lot of the same points you do.

      I'm a professional artist (photographer). I make art, and sell it. If everybody else copied the art I made with my $20,000 in photo equipment, $10,000 in computer equipment, 15 years of training and experience, and my God-given talent, without paying me any money, simply because it's easy to copy my digital images, I would be very upset. That said, I also don't freak out when I see somebody make a copy of one of my photos (it's happened before.) I would get upset if they made 10,000 copies and started selling them, of course...

      Anyway, I just think there needs to be a happy medium between draconian "There shalt not be any copies whatsoever made of anything for any reason without paying me lots of money" and the "IP is bunk and everything should be copied for free and distributed to everyone" crowd.

      --
      We don't have a state-run media we have a media-run state.
    3. Re:Economics... by Temporal · · Score: 1

      I agree. I don't consider piracy to be the downfall of civilization or anything, and I certainly can't claim that I've never pirated anything, but it really annoys me when people try to claim that it's not wrong. People make up these claims to justify their own actions when they should really just admit that what they are doing is wrong.

      Of course, most of these kids are in college or high school and have never produced anything of their own that could be copyrighted and sold. I write software, and although I release much of it open source anyway, it would really upset me if it were not my choice to do so.

    4. Re:Economics... by starcraftsicko · · Score: 1

      Wrong.

      Ahem, wrong about exactly what?

      Personally I do not think that that Cringely's idea would work. I just dont think it would be _complete_ disaster.

      Nor do I think copyright as a concept is bad... though the current implementation in the US and Euroupe leaves sooo much to be desired.

      QuoteWould the RIAA's business model crash and burn due to instant Obsolescence? Certainly! But you yourself said that the RIAA was evil.

      The RIAA does not have a right to, nor even the reasonable expectation of, a protected business model. New business models need not protect existing ones. No economy NEEDS a RIAA.


      Would I (and much of /.) love to see the most prominent ABUSERS of copyright bankrupted? You bet!

      Where you go wrong is in assuming that the RIAA, or even the organizations it represents, are an economic necessity.

      You assume perhaps that without effectively eternal copyright protection, music would never be made.
      False! With shorter copyright terms, music would still be made and in about the same amount. Even if copyright were abolished, music would still be made... though the economics would be different. Different does not mean bad.

      You assume that without the the major labels, nobody would pay musicians... you assume that musicians would starve!
      False! Most musicians today are NOT signed with labels and most of them manage to eat. In fact many of them make decent money selling recordings OTC at shows and whatnot. In general they can make different money if they try. They actually have higher margins than "signed" bands...

      You may assume that without the RIAA members, nobody would ever "make it big"!
      False! The road to the top might look different, but for talented artists there would always be a way. Even if copyright were abolished (God Forbid), there would still be a way.


      While it would be a mistake to abolish copyright completely, it is unreasonable to claim that economics REQUIRES that one particular business model be supported. Economics does not require a specific business model. Only the RIAA does.

      Sometimes the only way to fix something is to break it completely.

    5. Re:Economics... by Temporal · · Score: 1

      You assume perhaps that without effectively eternal copyright protection, music would never be made.

      No I don't.

      You assume that without the the major labels, nobody would pay musicians... you assume that musicians would starve!

      Err... no... no I don't.

      You may assume that without the RIAA members, nobody would ever "make it big"!

      Umm... actually... no... no I do not.

      Why is it that so often on Slashdot, when people disagree with me, they feel the need to put words in my mouth? Is it really that hard to argue with the points I actually made?

      In my ideal world, artists would sell their music directly to consumers via the internet. No, I certainly don't think we need the RIAA. Does that mean that we should be using methods that are clearly wrong to eliminate the RIAA? If you don't like the RIAA, don't listen to the music they sell. If you can't stand to be without their music, then you should pay for it. It's that simple.

      Your original post sure made it sound like you thought copyright should be eliminated altogether. I'm glad you don't actually think that, because such an idea is absurd. I'll agree that it is not a very elegant system, but I haven't heard nor thought of anything better yet.

    6. Re:Economics... by Sanction · · Score: 1

      I have to agree for the most part. I really don't enjoy going to concerts either. The problem is that you try to link the artist getting payed and the current model. Dropping copyright is not the solution, and most agree with that. The answer is that almost any other payment/funding model will get more money to the artist than the current scheme the RIAA is backing. If you want diversity in music, look at how many artists could be funded at RIAA/substinance levels with a different model not sucking all the money out of the industry.

      --
      Well I'm the doctor and I say you're dead, so shut up and take it like a man!
    7. Re:Economics... by Temporal · · Score: 1

      Sure. In my ideal world, artists would sell their music directly to consumers via the internet. But, that's beside the point.

  107. Mmm, since when have audio CD's been rented? by UrGeek · · Score: 2, Interesting

    Think about it. We rent video all of the time. But no one rent audio CD's. What is that?

    As film director, Richard Linkletter said once, "I thought the film industry was run like a Mafia until I had to deal with the music industry!" He was trying to get rights to a certain song for a film. But my point is the RIAA are not reasonable people. They are Special People with Special Powers. It appears that there was a Secret Admendment to the Constitution pass when we were looking and They would never allow this.

    I would just like my DVD rental service to have the right to backup out of print DVD's so they would have a spare when one breaks! And the public domain return to us - 28 years was plenty!

    1. Re:Mmm, since when have audio CD's been rented? by YllabianBitPipe · · Score: 1

      Well, for starters, when people rent a movie, they only want to watch it once and return it. They sit and watch it all the way through, get the full experience, and usually don't feel the need to experience it again, ever. With music, people tend to experience it non-lineraly. They listen to a song or two, turn it off, turn it on days later, listen to one fave song over and over, etc. I can't name many people that go home with their new cd, sit in a chair in front of the stereo and listen to the whole thing in one sitting, and then don't feel the need to listen to it. Hence, I don't think people would be into renting CDs to experience like how they experience movies. People tend to want to own their music so they can listen to it in various environments, at different times, etc. This is why cd rental businesses, imho, haven't happened in the past.

      but now that we can copy cds easily, I actually think a CD rental service would do quite well...

    2. Re:Mmm, since when have audio CD's been rented? by 0111+1110 · · Score: 1

      I guess you don't listen to pop music very much.

      --
      Quite an experience to live in fear, isn't it? That's what it is to be a slave.
    3. Re:Mmm, since when have audio CD's been rented? by Anonymous Coward · · Score: 0

      >This is why cd rental businesses, imho, haven't happened in the past.

      WRONG! The music kartels have prevented it and that's the truth. They never you to rent a CD and then tape it. Of course now that we have nice CD burners, I guarantee that if you tried to start a CD rental business, you would have more RIAA Stormtroopers in your life than you can imagine.

    4. Re:Mmm, since when have audio CD's been rented? by ShadowcatBlue · · Score: 1

      "Think about it. We rent video all of the time. But no one rent audio CD's. What is that?"

      Actually, I've seen a few Japanese video stores in the Los Angeles area rent CDs. Unfortunately for most people (but great for me) they're all Japanese CDs. These aren't old albums either. The store I went to kept up with the recent Japanese releases.

      It is too bad that this isn't done with domestic CDs. Although the public library back home used to rent out CDs too. They mostly had music you'd expect to find in a library (classical, jazz, soundtracks, broadway, historical/cultural, etc.) as opposed to the latest pop hits. I think they used to charge 50 cents for a 2 week loan. (To compare, they charged $1 for their VHS loans which were only 3 nights. They started renting out DVDs recently too, but I haven't been home in a while.) It should also be noted though, that they tended to lose a lot of CDs.

    5. Re:Mmm, since when have audio CD's been rented? by Lt+Razak · · Score: 1
      but now that we can copy cds easily, I actually think a CD rental service would do quite well...

      LOL. THat made me chuckle. How true, how true.

      However, I'd like to bring up the fact the library works much like this! It's not hugely popular. After much thinking, I guess it's because even though they do buy the new music, they only buy 1 copy. Then that's checked out for 7 days at a time. By the time you get it, the rush is over.

  108. The time is coming when CDs become free by rollingcalf · · Score: 1

    Musicians make most of their money from performing live, not from CD sales. That applies whether they have a multi-platinum album or play in a local bar for $50/night. The $1 per CD that the artists receive is dwarfed by their concert income and endorsements. The current model where radio stations are paid to play certain artists and consumers pay $16 for something that costs $1 to make is unsustainable.

    Since musicians don't make that much from album sales anyway, they should get together and ditch the big record companies. CDs should be used as marketing tools to attract people to their concerts, not as high-markup artificially scarce items. They should sell CDs at a slight markup over its manufacturing cost, and allow people to copy them freely and put them on P2P networks. The more people hear it, the more will come to their concerts.

    --
    ---------
    There is inferior bacteria on the interior of your posterior.
  109. Re:one word: my.mp3.com by finkployd · · Score: 2, Interesting

    If Time Warner or Intel wanted to do this, they could. if this imaginary company wanted to share it's assets with it's shareholders, it also could.

    This idea is pretty outlandish, but what it it were toned down. Does a CD have to have only one owner? Could me and 17 of my closest friends each pitch in a doller for a CD, then each rip the mp3s from the CD we collectivly "own"?

    I don't know how that would work, interesting thought though.

    Finkployd

  110. Re:one word: my.mp3.com by rabidcow · · Score: 0

    Perhaps more relevantly, look at how software works. Companies that buy one copy of a piece of software can't distrubute as many as they want internally. Technically, this could be because of the license (ianal, of course) but I suspect that that's only a case of being extremely clear about what it allows.

    So the corporation would need to buy a copy of each song for each person that wanted to play it, or get some sort of "site license." This probably would be no better than how things are now.

    What he's suggesting is all fine and well unless people actually want to PLAY the music.

  111. compulsory license by warrensomebody · · Score: 1

    The solution to this problem is not a new business concept. It's a compulsory license fee charged by ISPs for media use (much like the British TV license). Here's an article by Fred von Lohmann of the EFF describing the idea: http://www.dailyprincetonian.com/archives/2003/04/ 14/opinion/7930.shtml

    1. Re:compulsory license by Anonymous Coward · · Score: 0

      Here's a very good article on this: http://www.munb.com/meritmusic1.htm

  112. Dumb idea by jpmorgan · · Score: 1
    Cringley is a moron, but doesn't everybody know that by now?

    I haven't bothered reading the laws to check this, but I doubt this would be legal for the reasons other posters have mentioned.

    Of course, more importantly, let's consider a hypothetical situation where it is legal under current laws. Considering it totally violates the spirit of copyright law, I can't imagine this practice would last long before being made illegal by congress.

  113. Ridiculous by Anonymous Coward · · Score: 0

    Cringely's article has to be a troll. Its got so many problems, its not even worth discussing. Does he think a judge is some sort of stupid compuer that can be fooled with "copy.type=t_backup"?

    "Yes your honor, we have made 60 million backup copies. And instead of paying people to back up our data, they paid us to backup our data. We are only exercising our fair use rights to protect our property in the event the moon falls out of orbit and strikes the earth."

    Hell, since I'm a shareholder of Apple, I think I'm going to start distributing copies of MacOS X. I'm gonna be fucking rich and best of all Apple can't touch me 'cause my dumb-ass lawyer friend said it was "legal."

  114. Scale it down by finkployd · · Score: 1

    Ok, this is a stupid idea for all the legal and economic reasons that everyone else is ranting about, but what about a much smaller (in scope) version?

    For example, let's say 15 of my closest friends and I each kick in a doller and buy a CD. Could we each exercise our "fair use" rights and rip the mp3s from it? How many owners can a CD legally have? I suppose this is basically the same idea Cringely had, only without the corporation around it.

    Finkployd

  115. Online library with DRM-enforced distribution by ajks · · Score: 2, Interesting

    Here's a (hopefully) legal and tractable alternative Cringely's idea:

    Libraries can legally lend a CD because there's only a single physical copy. The big problem is that you've got to pick up and return the physical copy.

    So why not use DRM to our advantage, and have our libraries electronically lend the CD (or a single track), and use DRM to ensure there's only one electronic copy out at a time. Add a "Just In Time" inventory model where you only borrow the song immediately before playing it, and you return it immediately afterward. Then each track is potentially played a large number of times, back to back, throughout the day, by different users. We'd make a request to a server that finds a library with an available copy, and maybe queue up if none is free right now.

    Of course, you've got to be online when you listen to the song for this to work, and you've got to get a lot of libraries (or entities with a similar legal status that would permit them to distribute a single copy of a work) involved.

    An alternative it to set up such an entity which buys lots of copies of each CD, and simultaneously distributes as many single, one-time copies as it has a right to. Perhaps the users pay a tiny amount to fund the CD purchases.

    1. Re:Online library with DRM-enforced distribution by Anonymous Coward · · Score: 0

      You've just described the Netflix business method patent. Congratulations!

  116. NO!!!!!! by Jafafa+Hots · · Score: 2, Funny

    This is not right!!! What, production being owned by the PEOPLE? For the people? By god, thats COMMUNISM!!!!!! Cringely is a terrorist!!

    --
    This space available.
  117. YOU are the one who doesn't understand by David+Wong · · Score: 1

    Music is just information. And information wants to be free.

    Right?

    Right?

    This reminds me of teenagers who get mad about high prices at the mall and thus suggest a system where "there is no ownership! No property! Where everything is free!!!!"

    Here's the news; if somebody makes something (A book, a song, a poem) that tens of thousands of people love and enjoy, they DESERVE to get something for it.

    True, the RIAA screws artists as much as it screws consumers... it needs reform, but cringley's idea is actually much more evil. The most deserving party in this situation is not the consumers. It's the artists.

  118. Re:Yep that'll work... For about three seconds. by Ptahian · · Score: 1

    Aaah, an apologist for the RIAA. What? You own stock in those companies?

    There are a number of mistakes you make that I think have been discussed on /. previously.

    First, that no one will make money. Have you any idea of how many bands make no money NOW? The ones that make money, do so because they have created (with our willing, if naive, participation) a false scarcity. There are plenty of groups that play in bars around the country and sell their home-produced CDs and make a few bucks. Those groups will diversify and flourish. MORE money will be made, it just won't all go to the 50 groups (try and name 50 groups) that make real money -after the mafia-like protection money the RIAA takes out of 'THEIR' groups.

    Second, you seem to think musicians or authors or poets or sculptors or comic-book artists or [fill in any creator type] is doing their creating as part of a plan to make big $$$$. AND, if that's not enough of an assumption, you FURTHER suggest that they will all just *stop* getting together to play music (or to write a book, etc). Believe it or not, artists have been poor in the past, and we can be SURE there will be starving artists in the future.

    Related to that, you adopt the plight of the poor starving artist and appeal to common decency or something. To which I say (and would say to any artist): do something else if you don't want to be poor and stuff. As a consumer, I won't care, because I will have access to plenty of cheap music/books/poetry/scuplture/etc THAT I'M willing to buy at a reasonable price. But, I can be nice too, and say: try having a public reading for $10, and maybe 100 people will come because they read your Great American Novel (that they downloaded for $1 -or borrowed from the library, or downloaded for free or WHATEVER). And if only 5 people come, then that's fine, have a book signing and charge $1 and maybe more folks will come... etc. The artist will struggle, but can come up with things that fans will pay for. BUT, we can be sure for those small authors, so Publisher is going to be getting 80% of the cut because there will be no Publisher.

    Anyway, I think your concerns don't have any evidence. And history suggests the concerns aren't going to amount to a problem for anyone but... those stockholder types.

    -ptah

  119. Re:one word: my.mp3.com by fenix+down · · Score: 2, Insightful

    The idea is that in his, the only people who get to download are shareholders in the company that bought the CD. Mp3.com was letting people who didn't buy anything listen to songs that mp3.com had bought. If you are mp3.com (as in a shareholder), then you did buy the CD. I still doubt it'll last long, but it's something nobody's tried yet.

    What is interesting here is how if you play it right, you might get the RIAA to shoot down corporate personhood along with you. It's your best argument at least. They'd be trying to keep a company from copying mp3s for itself. Since [my non-lawyerly interpretation of] modern equal protection means you can't discriminate between corporations and individuals in the law, the only way for them to get you would be overturning Santa Clara County vs Southern Pacific or just abolishing fair use rights for everybody. You just have to hope that fair use is a stronger precedent than some random contract dispute case from the 1800s. Even if they do find a nutty enough judge (or a big enough sack of Cash MoneyTM) to kill copying for personal use, I think you'll have a big enough freak-out to bring down some serious hurt down on the RIAA.

  120. Re:one word: my.mp3.com by modecx · · Score: 1

    Well, it's not my idea, obviously. I'm no lawyer or expert in the field. It's some other genius that's responsible for this whole mess.

    But, yeah. Apparently the fair use laws will allow shareholders use of copyrighted media in posession of the company. I guess it would work like a photocopier and a book that the company owns. I'd guess that it's in fair use to copy portions of the book and use them seprately.

    EULAs in software prohibit this sort of behaviour, so it dosen't apply here. I'm sure they thought of that. Though I don't know and I am mostly full of shit.

    Heh, that will be the day: when CD's have a EULA affixed to the outside saying that opening the packaging makes you accept the contract.

    I better make some prior art, and patent it. Sharpie. Check. Post-it. Check. EULA. Check.

    Anybody who opens this CD has to sign the soul of their firt-born over to me. Whee.

    --
    Constitutional rights may be respected, repealed, or modified; but they must never be ignored.
  121. A better solution in a perfect world. by HanzoSan · · Score: 0

    The solution for musicians and music fans is for us to become the distributors of music legally.

    The solution for musicians and music fans is for us to become the distributors of music legally.

    How?

    We replace the RIAA and distribute music via P2P systems.

    The solution is a P2P system which intergrates into the web, there also needs to be a payment mechanism, (maybe paypal?)

    Users buy credits in this system, credits represent dollars and cents. So how do you get into the system? You buy in by buying music from fans who are already in the system.

    Say you are an indie musician, you make a bunch of music and you create a website, you then intergrate this system onto your website, allowing people to download off a certain P2P network via your site, almost like magnet links. The person who downloads from your site pays .50 cent per mp3 download, however the mp3 isnt downloaded from the musicians site, the mp3 is downloaded from the distrinbutor which happens to be a person who previously paid their way into the system by buying an mp3.

    So the fans take the place of the RIAA as distributor and take 25 cent of the 50 cent, so the musician gets 25 cent and the fan gets 25cent or 25 credits. When the fan gets 50 credits they can then go buy another song, so its a system which allows you the filesharer to get unlimited access to music (Free Music) because you become distributor, you legally pay the musician for the music so the musician is happy.You may even make a bit of money. Everyone Wins.

    Consumer/Downloader --> $ = $ --> Distributor&Creator , Consumers = Distributors & Downloaders. A closed system where we are the distributors, the creators, the owners of the intellectual property, and we get paid while having access to unlimited free music.

    You get free music as long as you share. Musicians get paid. New people have to pay their way into the system but once they do, they get free music or money, whichever they choose.

    If we can put the RIAA out of business, alot of the famous musicians which everyone likes would agree to such a setup.

    What do you think?

    --
    If you use Linux, please help development of Autopac
    1. Re:A better solution in a perfect world. by The_egghead · · Score: 5, Insightful

      So tell us, how long have you been involved with Amway?

      This is a pyramid scheme. The problem is, it only works as long people are buying into the bottom. While I agree that there are lots of alternative ways to sell music, this isn't one of them.

      If I'm Joe Indie, why would I want to let someone else take half the profit for "distributing" my music (which amounts to keeping it on their hard drive and running Kazaa or whatever), when I could do the same thing myself and get all of the profit?

    2. Re:A better solution in a perfect world. by HanzoSan · · Score: 1

      Its the same pyramid scheme that the RIAA uses!

      So why not have us replace the RIAA in the current scheme?

      If I'm Joe Indie, why would I want to let someone else take half the profit for "distributing" my music

      Because this is better than letting the RIAA take 90% of the profit for distributing your music. I think 50/50 is a better deal than the current deal.

      --
      If you use Linux, please help development of Autopac
    3. Re:A better solution in a perfect world. by Dr_Cornholio · · Score: 1

      If I was an artist, I'd be ecstatic with half the profit compared to the piss ant 10%-minus-expenses that I'd be receiving now under the RIAA banner. Don't forget just how much the artists are screwed at the moment. Cringely even touches on that, but of course, you didn't read the artice now, did you?

      Another bonus out of this model might be a lessening of the manufactured pop shite that gets plastered all over the airwaves and MTV at present

      --
      In Soviet Russia, the monkey spanks you!
    4. Re:A better solution in a perfect world. by Procyon101 · · Score: 1

      Actually, it's not a "pyramid scheme" and neither is Amway. Pyramid schemes are illegal in most countries and keeping a 50 year old multi-billion dollar pyramid scheme a secret from the FTC would be very difficult.

      The main difference here is that people are not purchasing "credits" as he puts it in return for monetary gain in the future via growth of the industry, although this is indeed possible if the individual has a strong marketing capability, and if they do, they are selling their marketing capability for profit, just as people do with banner adds or billboards. The "credits" are being purchased primarily for the purpose of gaining access to the music which is a REAL product. Once that product is owned (for 50 cents) it can be resold for profit. The vast majority of users would use the system primarily for personal consumption of music. They are not paying their 50 cents for the primary purpose of making money, but to listen to the song they purchased. Since the end buyer is doing nothing but exchanging money for product, then the people at "the bottom" are not being milked for cash, but rather are simply customers that feel they are getting a good deal, so they will continue to purchase, so therfore the system is sustainable. This is the same case with Amway and other legal multi level marketing plans as opposed to pyramid schemes. If everone on the planet joined Amway, the last guy in would not be screwed, he would simply have access to their product line at a discount for putting up his negligible membership fee, so as long as the products are viable and membership is beneficial, the system is sustainable.

      Pyramid schemes are marked by the fact that latecomers lose all or part of their investment. His strategy does not have this flaw and is sustainable and legal.

      Now, on the other hand, the spam and advertising traffic this would potentially generate from potentially millions of individuals trying to make a profit through resale does not sound like fun. It would be alot like having to deal with a crudload of Amway distributors online, which is the real beef about Amway and other multilevel marketing techniques.

    5. Re:A better solution in a perfect world. by sh00z · · Score: 1
      His strategy does not have this flaw and is sustainable and legal.
      I seriously doubt it. IANAL, but there's a fundamental flaw in his logic. He likens "Snapster" to a mutual fund, but he somehow concludes that *every shareholder* is entitled to the full value of the fund. In what universe is this true?

      Let me use a more concrete example (and yes, I fully realize that there's a fundamental difference between intellectual property and physical property, but stick with me). He's offering a timeshare condo to a million people. In the *real* world, this would entitle each shareholder to live for there for 31.5 seconds per year. But Cringely is telling them that all of them can all live there all day, every day, as long as they want. How many community associations would put up with *that*?

      So, back to Snapster. The fair-use reality is that legally, I'd guess that each shareholder would be entitled to have about 1.5 albums worth of music downloaded to their hard drive at a time. And while that persion holds a given set of songs, nobody else can have them. When the songs are "returned," the next person can get them.

      I usually enjoy and respect Cringely, but he's dead wrong on this one.

    6. Re:A better solution in a perfect world. by HanzoSan · · Score: 1



      Why would people need to spam? Its the musicians job to advertise. Also P2P programs which connect to this network will produce automatic advertising.

      Napster never once needed an ad, people looking for mp3s on napster never needed ads, Its simple. The musician advertises their music on their website, the person clicks the magnet URI or whatever and in bit torrent style it downloads the song while charging the downloader in credits.

      The advertising is done by the musician via websites, and the P2P services which people use, like Napster2 or whatever is out during this time.

      There is no need for banner ads unless people try to get greedy and actually make lots of money doing this, but if thats the case, thats capitalism.

      --
      If you use Linux, please help development of Autopac
    7. Re:A better solution in a perfect world. by HanzoSan · · Score: 1

      "I seriously doubt it. IANAL, but there's a fundamental flaw in his logic. He likens "Snapster" to a mutual fund, but he somehow concludes that *every shareholder* is entitled to the full value of the fund. In what universe is this true?"

      No thats not what I said. When you buy credits/shares or however you want to word it, this represents money, YOUR money. Credits can be refilled via purchasing them, or via distribution(work).

      Lets say a song is 50 credits, lets say you earn 20 credits each time you distribute a song, when you distribute 2 songs, you now have earned enough credits(money) to buy a new song, and then you have 0 credits again, and when someone downloads from you enough times eventually you get your credits back but if you want to be a hog then you pay up.

      This is fair, whats wrong with this logic?

      I'd guess that each shareholder would be entitled to have about 1.5 albums worth of music downloaded to their hard drive at a time

      Well I dont know, my post wasnt about the snapster model, my post was about my model which I think is better than the snapster model.

      And while that persion holds a given set of songs, nobody else can have them. When the songs are "returned," the next person can get them.

      I addressed this issue, allow the musicians to sign away their distributing rights to us, and in exchange we get to decide along with the musicians how to license the music to the consumer.

      Why? Because the musician needs us to actually distribute their music for free, and we wont distribute music for free unless we get something in return, if this means free music, well then we get free music, this means we work for the musician and in exchange the musician works for us.

      Or we get money, and in this case we work for the musicians and make money.

      Either way its fair.

      --
      If you use Linux, please help development of Autopac
    8. Re:A better solution in a perfect world. by Delphiki · · Score: 1

      There is no need for banner ads unless people try to get greedy and actually make lots of money doing this, but if thats the case, thats capitalism. Capitalism? Oh my god! Run away, run away... I wonder if this many geeks were anti-capitalism before the dotcom craze ended, I strongly suspect not...

      --

      Feel free to mod me "-1 - Angry Jerk".

    9. Re:A better solution in a perfect world. by The+Evil+Couch · · Score: 1
      So, back to Snapster. The fair-use reality is that legally, I'd guess that each shareholder would be entitled to have about 1.5 albums worth of music downloaded to their hard drive at a time. And while that persion holds a given set of songs, nobody else can have them. When the songs are "returned," the next person can get them.

      I usually enjoy and respect Cringely, but he's dead wrong on this one.

      unless the artists retain their copyrights to the songs and each person in the chain is being sold rights to duplicate for personal use and to duplicate and distribute provided that they do it in the same manner that it was provided to them.

      ie. Artist A sells his album Music Distributer B for half market price. Music Distributer B sells the album to Middlemen C, D, and E for full market price and turns in half of the reciepts in to A. it continues on in that vein until every that wants the album has it.

      it would cut the RIAA out of the industry entirely and give a huge boost to artists in terms of cash flow, but piracy would continue to hurt the sales model. in fact, piracy and unliscensed sales are about the only things I see wrong with the business model. the system would only work so long as people play by the rules.

  122. Ureka! The Library by vtaluskie · · Score: 2, Insightful

    Cringley has discovered the concept of the Public library - what a genius! :) Serious, does anyone wonder what legal battles would be underway today if we tried to invent public libraries in this age?

    Why the Amazons and Barnes & Nobles of this country would be telling everyone how libraries would put their businesses under and that it was just a form of stealing to read a book for free when you really know you should be paying for it and supporting intellectual property.

    vince

  123. What your reply and others like it miss by MisterSquid · · Score: 2, Interesting

    I've seen this argument three times now: "Just because I own a share of Corporation X doesn't mean that I have rights to copy its corporately owned IP." Granted. This is absolutely true.

    But Cringley's Snapster is a compnay that is set up so that owners become part of the corporation, and one of those rights of the corporation is to space shift its corporately owned media. Snapster would be set up so that this was the raison d'etre of the corporation. As part of the corporation I would exercise my corporate ability to space shift the corporately owned CDs.

    Furthermore, the ownership of a CD and the ability to space shift is very different than the terms of an EULA on, for example, MS Windows. Without such an EULA, Sony, BMG, Time-Warner, etc. might be out of luck. There is no explicit restriction to how many machines may play a space-shifted back up.

    Still, Snapster might not fly, but only a court can test that. These arguments about how "Snapster would be just like Microsoft/Mp3.com/etc." have not considered the terms of incorporation Cringely proposes.

    --
    blog
    1. Re:What your reply and others like it miss by the_quark · · Score: 1

      Your fundamental assumption is that corporations have the same space-shifting abilities that people do. Even in the normal case (where only one copy is being used at a time by the whole corporate entity, which this isn't) if the reason it's doing it is to profit, it don't have such a right. See the mp3.com case, which was not about mp3.com downloading files to users, but only about mp3.com space-shifting 300,000 CDs to MP3s. They lost, hard and fast, and it was the end of them.

    2. Re:What your reply and others like it miss by ryanr · · Score: 1

      I see. So I can't simply buy a share of BMG, and help myself to all the BMG mp3s legally simply because BMG has not explicitly granted that right to shareholders. So does being a shareholder give me the right to do as I wish with all the corporate assets or not? No, of course it doesn't.

      So, if a company is formed with the express purpose of sharing copies of something they have purchased with shareholders, does that make it legal? You think that might be so, if it's not explicitly prohibited.

      So what gives anyone a right to make a copy of a copyrighted work ever, if they don't hold the copyright? Fair use (what little is left of it.) Fair use typically says that you are entitled to make a limited number of backup copies, or use small portions of the work in other works for reference purposes. The latter provision doesn't seem to apply here.

      So, is it reasonable to think that a court would find that a reasonable legal definition of "backup" would be a single song for which copies exists on a million computers, all of which are being listened to simultaneously? I don't think so. That doesn't sound like a "backup" to me. Nor does it sound like "a limited number of backups."

      And BTW "space shift the corporately owned CDs" would mean mailing CDs around, which you are probably free to do, as long as you no longer retain a copy. Remember that media is the container (plastic disc) whereas the bits it holds is content.

      So yes, the premise of my note you are replying to seem ridiculous. That's because it is, and I'm mocking Cringely.

  124. a more realistic version by moral+kiosk · · Score: 2, Funny

    If this sounds good to you, you'll totally love my new plan:

    1. Forward this note to five of your friends and send me and the ten people before me on this list a dollar and an mp3. Maybe on one of those cute little CDs. Then your friends will send you a dollar and an mp3, and soon you will have forty gazillion dollars (3. Profit!) and so many THUMPIN' TUNES that you won't ever have to buy another Now That's What I Call Music until they're at, like, eleventy billion. (What? They are at eleventy billion? Well, then infinity raised to the eleventy billion.)

    2. Seriously, I mean do you know what five times five times five times five times five is? That's huge! And that's just how much you'll have after just five 'links in the chain'. But if you don't forward this right away, you'll have lots of bad luck. Oh and also I have testimonials, but I forgot to put them here, but they are totally convincing. Oh and we'll sell stock for $20 at our IPO, no problem. Just 'cause I'm totally awesome.

    DON'T BREAK THE CHAIN!!! OR RIAA AND SATAN WILL PREVAIL!!!
    3. Profit!

    But seriously, no matter how you slice it, Fair Use does not involve making money, even if you try to dance around with some sort of 'public ownership' hogwash. The legal restrictions on what one (or many) can do with a copyrighted work seem much more well-defined and far-reaching than the rights that one enjoys, and no reasonable judge is going to swallow this. Moreover, no sizeable popular base will get behind it because it so obviously screws the musicians (even more than they are already being screwed).

    When the power players abuse the intent of the law in favor of the letter, we all cry foul. But those cries carry less weight if we start sniffing around for loopholes of our own. The real problem, as always, is that the power players get to write the laws. They have the muscle to close our loopholes, whereas all we can do is find somewhere to bitch about theirs. Until that changes, any legal tomfoolery that we manage to abuse will just distract attention from the more fundamental problems.

    --
    It's so much more attractive / inside the moral kiosk.
  125. Funny by CodeBSD · · Score: 1

    This is the guy that thinks Windows XP is DOS based....

    --

    In the time of chimpanzees I was a monkey --Beck
  126. Interesting by crackle · · Score: 1

    Interesting- A collection of media shared by a community. Perhaps they could name it library.

  127. Here's the reason you were modded flaimbait by Anonymous Coward · · Score: 1, Insightful

    So, being in *High Tech* your company allows you to hold the patent (as many do). But then they sell your work to kingdom come and give you nothing... The rent is due, and guess what? You can't pay it because your employer has screwed you...


    If you had changed out your company and your employerto your record label you probably would haave been modded insightful. Record companies routinely screw over the artist, by raising the price of CDs unnecessarily, yet not passing on one red cent to the artist.
    I truly believe that if the record labels offered a good product at a reasonable price, people would buy more music.
    In even simpler terms: if I feel like you're ripping me off, I won't feel guilty ripping you off. Golden rule boiled down.
    1. Re:Here's the reason you were modded flaimbait by UniverseIsADoughnut · · Score: 1

      "yet not passing on one red cent to the artist."

      Pennies are copper colored, though sometimes green to.

  128. Re:Yep that'll work... For about three seconds. by meta-monkey · · Score: 1

    No, I'm not a stockholder in any of those companies, nor am I an "apologist." I am a professional artist, though (photographer). Would I still create art if I weren't getting paid? Of course. I do it all the time...I take LOTS of photos, which I never intend to sell, or even try to sell. Some of these I post on my website for anybody to download, or give them to friends and family for nothing. Also, I don't freak out when a client scans one of my photos into their computer and uses it as their wall paper. Big deal.

    However, that's my choice, and I think that's where we differ.

    I think artists should have a choice in how they are compensated. You seem to think there is a fantastic amount of great art being produced and distributed for free. There certainly is some. I've read /. stories before about authors who distribute free eBooks. There are free concerts and musicians around town...free plays, etc. These artists choose to perform under these conditions, or are compenstated for it in other ways. You, however, want all art to be distributed under those terms, the artist's wishes be damned. I'm sorry, but you have absolutely no right to a work of art produced by someone else. None, zip, zero, zilch, nada. You have no more right to their art, than I have to whatever it is you produce in your job. Are you an engineer? Then I demand all of your work...I want the code, the schematics, the designs, your notebooks...I'll pay to produce the copies, of course. Oh, and your boss won't be paying you anymore, because you love engineering so much, right? So, you'd do it anyway, even if you weren't paid.

    So, how about this. If you like the free music and literature some artists produce and give away, then you how about you limit yourself to partaking of those forms of art. I, however, appreciate some commercial music, books, and movies. So, I'll pay $5 to rent Gangs of New York. If you want to pay to see it, great. If you don't want to pay...then don't watch it. If the "free art" is so good, then Scorsese will be out of a job, won't he? Deal?

    By the way, have you ever read the book or seen the screen adaptation of "The Fountainhead" by Ayn Rand?

    --
    We don't have a state-run media we have a media-run state.
  129. Take a ride on the clue train... by Genda · · Score: 0, Flamebait

    Folks... this is not brain surgery...

    Why is there no election reform? Why has our government become the best that money can buy? And, why does the RIAA do what it does?

    People in power, with money, and legions or souless legal zamboids, will squeeze out any law they need to, to protect their corporate asses. If they need to repeal the 'Bill of Rights' and pave over old aunt Mauve's grave... they absatively, posilutely will (one only needs to look as far as the Patriot Atrocity... er I mean Act.)

    So discussing a business plan to legally sidestep the RIAA is tremendously naive. Until you can grab the lawmakers by the short and curlies, and make them pass sane fair-use and IP laws (and pimp slap the U.S. patent office into sanity), we can continue to expect (corporations and) the RIAA, it's lobbyists, and it's jackbooted nazi panzer lawyers to keep doing more of what they do so well.

    Hell I'm still waiting for the basturds to figure out a way to sue the entire country for the use of air, because everybody knows that their copywrited music must pass through the air to your ears, therefore as a fundamental aspect of the music business, we must pay them for the air.

    Genda Bendte

    - ...Bet I could get rich on college campus' alone, by composing industrial rock whose background included the sound of Music Corpos being tossed into wood chippers!

  130. Re:This is sure absurd by Anonymous Coward · · Score: 0

    Money needed for music creation?? Actually ... not! Human beings are quite incapable of NOT creating music. The behavior is HARDWIRED. Also, humans are incapable of NOT creating poetry and myth. The quality will be as it always has been ( before say, 1907 ...) . I naturally exclude libertoons and business fascists from this group of music/poetry/myth creating "humans".

  131. Coupled with the dismissive "Oh, it only takes $50 by Anonymous Coward · · Score: 0

    > Cringely sounds like one of these guys who
    > think the cost of the average recording looks
    > like this:

    > 1. CD and box, 10 cents
    > 2. ???
    > $19.90. Profit!!!

    Well funnily enough, check out Moving Shadow.

    They are an independant Drum & Bass label who release about 2 CD's a year (as well as their other releases) for about 1-3 pounds and they are not a multinational corporation who can afford to make a loss.

    Ram Records is another independant Drum & Bass label who fairly recently got a release of theirs (Andy C & Shimon - Bodyrock) into the UK Top 40 for a tiny fraction of the cost it would have taken a major label. That was purely from sales of vinyl too.

    Just goes to show that releasing music doesn't have to be as expensive as the majors make it out to be.

  132. Welcome to today's music scene by Anonymous Coward · · Score: 0

    Sony comes to mind, but there are others.

  133. Why make a copy? by Pac · · Score: 1

    All the corporation has to do is mantain the physical CDs and a database of CD and song names. I, as a shareholder, would be entitled to search the database, find the CD I want for review and request it. It would be send to me by mail (we could cut this part by making it available to me through a CDROM drive shared over a private network connection - but we if we can't use the Internet we can certainly use the Post Office). To cut delivery costs we may have a branch at each major city, each storing a legitimately owned CD. I would have it for a day or two and then return it. The corporation made no copy. Whatever I did is none of anyone's business.

    I believe such and organisation is called "library" for a certain instance of media.

    1. Re:Why make a copy? by pediddle · · Score: 2, Funny

      I believe you can already go to an organization called a "library" to do this "borrow" thing you're talking about -- for free. The only thing new that you're proposing is that they mail you the copy.

      I also heard about this new place down the street called a "video rental store". I hear it's cool -- I'm gonna go check it out soon.

    2. Re:Why make a copy? by Java+no+not+that+jav · · Score: 0

      yea but what about a MUSIC rental store???? oh woops they dont have those.

    3. Re:Why make a copy? by the_quark · · Score: 4, Informative
      I think your networked idea still results in a copy (as the bits transfer from them to you). When companies mount CDs over LAN drives, it's either software they have a site or large license to, or it's done internally and the piracy isn't noticed by anyone. A company that got big enough at this to matter would be noticed and subject to strict legal scruitiny, so I think you should stay away from that approach.

      Which leaves us "renting" the CD through the mail. Ever wonder why you never see CD rental places in the US? Why there's not a "nettunz" to go with "netflix?" It's because they're illegal. According to USC Title 17, Section 109, "Limitations on exclusive rights: Effect of transfer of particular copy or phonorecord":
      ..[U]nless authorized by the owners of copyright in the sound recording... the owner of a particular phonorecord... may [not], for the purposes of direct or indirect commercial advantage, dispose of, or authorize the disposal of, the possession of that phonorecord... by rental, lease, or lending, or by any other act or practice in the nature of rental, lease, or lending.


      The edits are necessary for clarity because this section also has a lot of cumbersome language about software; go read the original if you doubt my interpretation. Why can actual libraries get away with it? Because the next sentence says, "Nothing in the preceding sentence shall apply to the rental, lease, or lending of a phonorecord for nonprofit purposes by a nonprofit library or nonprofit educational institution."

      So, could you set up a nonprofit corporation to do this? I guess so, although it'd face all the normal challenges a nonprofit does in trying to find the money to build its collection. And, your strongly implied personal copy before return would itself be illegal. If it were used pretty much only for this purpose, and got big enough, I bet the RIAA would try to claim that the nonprofit should know there's monkey business going on and try to shut it down. Whether they could would be up to the courts.
    4. Re:Why make a copy? by 0111+1110 · · Score: 1

      So, could you set up a nonprofit corporation to do this? I guess so

      This seems like a great idea.

      --
      Quite an experience to live in fear, isn't it? That's what it is to be a slave.
    5. Re:Why make a copy? by BJH · · Score: 2, Interesting

      Maybe not in the US - they have them all over Japan. Yes, you can rent CDs.

    6. Re:Why make a copy? by the_quark · · Score: 1

      Thankfully in the US we have the powerful music-industry lobby to save us from such things.

    7. Re:Why make a copy? by richieb · · Score: 1
      Which leaves us "renting" the CD through the mail. Ever wonder why you never see CD rental places in the US? Why there's not a "nettunz" to go with "netflix?" It's because they're illegal. According to USC Title 17, Section 109, "Limitations on exclusive rights: Effect of transfer of particular copy or phonorecord":

      But my library lends CDs...

      --
      ...richie - It is a good day to code.
    8. Re:Why make a copy? by kyletinsley · · Score: 2, Interesting

      Why does it have to be a public corporation? Why not start a non-profit corp with only your friends/acquaintances. Everyone who joins the 'partnership' sells their CDs to it, and in return gets access to all of the CDs that the corp owns. You don't need to go public to try to acquire capital, everyone just contributes assests they already own. Only actual money needed would be for a little bit of computer hardware and some bandwidth.

      You set up some kind of server that contains all of the music, and only allows one person to have any particular track "checked out" at a time. (Officially. If you're the type of person who really wanted to 'bypass' the one copy limit, you're not likely to be called on it because it's not a multi-national organization with millions of file-sharers. Just a couple dozen people who all kinda know each other. But 'one copy in use at a time' is the "understanding" everyone has of how it's setup.)

      In all honesty, you don't really need THAT many people in your group to cover most of your music needs. In this type of setup, having one million people all contributing the same Britney Spears CD doesn't benefit you in any way, so you might as well not have them. You'd form your group with people who have similar tastes in music (or widely disparate tastes, if you want to broaden your horizons), and when a new CD came out that many people wanted, only 1 person actually has to buy it.

      I guess this is kind of the Gnutella version of the article's Napster idea... decentralized, only members join the servers, which are run by the members themselves. Would work out better in my opinion.

    9. Re:Why make a copy? by MadJo · · Score: 1

      We used to have a cd-rental business here in The Netherlands, much the same as renting LP albums. It was great.
      I'm not sure if it still excists though, because the owner of the local cd-rental decided to move to some other place.

    10. Re:Why make a copy? by Alan+Partridge · · Score: 1

      you'll NEVER get 'em back, though

      --
      That was classic intercourse!
    11. Re:Why make a copy? by nicke999 · · Score: 1
      Ok so they can't rent CD's. How about this:

      1. Company A owns alot of CD's.
      2. You buy the CD you wan't from the company for lets say $3. Being the nice guys that company A are, under fair use they send you a copy (electronically) of what you just bought but keeps the original CD locked away (noone else can buy it - hey it's yours after all). You also sign a contract saying that you will not request your original CD.
      3. You are done listening to the CD you bought. Company A buys the CD from you for $2.95 and ask you to destroy your copy (after all - keeping the copy would be illegal!).
      4. Company A sells the same CD to a new customer...

      Is this flawed?

      --
      Thanks for browsing at -1
      Please vistit my blog: www.framtiden.nu
    12. Re:Why make a copy? by Lt+Razak · · Score: 1

      True. That's why you need to make it cost $50 to buy the CD. (But then you'd get the $49.95 back). More incentive to return it.

    13. Re:Why make a copy? by the_quark · · Score: 1

      Yeah, because Company A is making money from effectively copying the CD, without paying the copyright owner. That first $3 transaction is clearly illegal right off, because what you're doing is paying the company $3 to copy the CD for you. Even if you try to call it something else, that's the end result, and a court is going to see through that.

      These kinds of sham transactions don't work in a court of law. The law is not some mindless computer that you can hack this easily; the law is made up of thinking human beings interpreting laws made by other thinking human beings, and it is very clearly set up to make this sort of behavior not possible. When I first started working with businesses that were just one side or other of some law, I fell into this trap, too. Talking to a few lawyers cured me, and the point I've tried to make a number of times in this thread is that the law is not a mindless algorithm you can trap by using odd definitions or structures. Courts will take into account your intent and your effect and will judge you accordingly, and my favorite legal joke (*) notwithstanding, they're not that stupid. Sometimes you can get away with it if you can figure out how to play different parts of the law against each other. But the law is very specifically set up so that you May. Not. Copy. A. Whole. Work. For. Money. Without. Paying. Even if you could find an easy loophole to exploit, they'd close it so quickly it'd make your head spin.

      * What do you call a lawyer with an 85 IQ? "Your Honor."

  134. Economics? Please.... by Anonymous Coward · · Score: 0

    So let's say that tomorrow I invent a raygun that duplicates apples. Take one apple fresh from the grocery store and *zap* ... you've got two. People would be thrilled... nobody ever has to go hungry for want of apples, and all of the land that used to hold appple trees can now be used for other crops.

    People in the apple growing business would be pissed, since their apple producing business model just became terminally outdated, but so did aluminum companies when someone discovered how to manufacture the once precious metal from cheap bauxite. Technology changes, and if you can find a way to do something better or more cheaply than someone else, you win. Free markets aren't about desert and entitlement; they're about efficient distribution of scarce resources.

    Nobody ever says "Buy Pepsi or else Pepsi workers don't eat." They say "I've got a sweet drink that you don't have... if you want it, give me something in exchange." It doesn't have value because it's intrinsically important; it has value because it's scarce. Air is a billion times more important to me than Pepsi, but nobody charges me for it because I can get plenty on my own.

    Modern technology has progressed to the point that music can't really be called scarce anymore. If I can make six billion copies of a song and send one to every person on Earth, can you give me moral reason why I shouldn't? Sure, the artist put a lot of effort into making the song, but effort alone doesn't entitle you to compensation. I can spend all day digging holes in my lawn or hauling 40lb sacks of concrete from one end of my house to the other, both of which are far more strenuous than singing a song, but nobody is going to give me money for either.

    I understand what the law is, and that some rant on slashdot won't overturn hundreds of years of intellectual property law. But let's be clear... the basis for copyright law is not some moral principal or "fundamental human right;" it's totally public interest; we want artists to make things and be paid for doing so, so we require that they are by law. If the system doesn't work, because of monopolies like the Clear Channel or cartels like the RIAA, then the law should be changed.

    There's no "right" and "wrong" here, just legal and illegal, and both are just a function of what people want and are willing to trade for. That's economics, not some pathos-laden appeal for starving artists.

  135. Free Lamborghini by Anonymous Coward · · Score: 0

    I'd buy one share of Damlier Chrysler, go to the Lamborghini dealer about a half mile from my house, show him my certificate, and drive away in my Lambo.

    1. Re:Free Lamborghini by ShavenYak · · Score: 1

      You'd better buy a share of Exxon or BP to go with that!

      --

      Hey kids, there's only 5 days left 'til Yak Shaving Day!
  136. Re:one word: my.mp3.com by NFNNMIDATA · · Score: 1

    This is exactly what I was wondering. Seems like you could just transfer the idea to "me and joe both own half the CD, so we each have MP3s of it". And then use this to get out of all lawsuits since "I hereby declare that every person in America owns a percentage of this new CD I just bought, and thus may have exactly one MP3 copy by law".

    Then of course there's another side of this - if I buy 1 share of Microsoft, am I entitled to install a copy of everything they make (I know, why would you want to etc etc)?

  137. Re:This is sure absurd by Temporal · · Score: 1

    Hello? Good quality music equipment and recording studios are quite expensive. Furthermore, creating good quality music takes time. People need money to eat and pay rent. Yes, musicians eat too. Before copyright, only those who were already rich or who had rich friends could spend their time on such things. Are you saying that's the way it should be?

  138. Re:Economics? Please.... by Temporal · · Score: 1

    Sure, the artist put a lot of effort into making the song, but effort alone doesn't entitle you to compensation.

    If that effort produces utility for other people then, yes, the artist does deserve to be compensated.

    I can spend all day digging holes in my lawn or hauling 40lb sacks of concrete from one end of my house to the other, both of which are far more strenuous than singing a song, but nobody is going to give me money for either.

    Obviously, that effort doesn't produce any utility for anyone, hence you don't deserve to be paid for it.

  139. Business. He's right by akiaki007 · · Score: 2, Insightful

    OK. I've read through what people have been writing and well, the moderators just like to +1 people that can write intelligently. That's the bottom line. I don't think most of the people that refute his idea know what they are talking about.

    Several points. You can IPO at whatever the fuck price you want to. Don't give me that, oh, you can't do that because of ..., or because of.... Your IPO (Initial Public Offering) is determing by YOU!

    Robert's idea is simply brilliant. To put it simply. I work in the world where money matters, and law matters, and his idea is awesome. I see nothing wrong with it. But he is also correct with the fact that this is a small loophole which can be fixed by a quick lobby to Congress. Someone that works for the RIAA (read: intern) is reading this article, and tomorrow they will be reporting this to their supervisor and ni about 2 months this "law" will be lobbied.

    I'm sorry to all the people that simply just say that this article is a bunch of horse-shit. This is one of the most comprehensive and simple (to-the-point) articles I've read recently. He's got everything covered (basics) and it is enough for "just about" anyone here to get it started. Just takes a little know how and in order to get it done before the "law" takes hold, just a few connections. I'm sure Robert (Cringley) could get you started...for a small fee of shared ;).

    Anyway, the point of this post was to say that all the people that got +5 for saying that this isn't possible. Wake up! Read something relevant. No, Wall Street Journal does NOT count. This is reality, and this is absolutely brilliant. This should go side-by-side with his "I use Linux to play DVD's" article.

    --
    "Time is long and life is short, so begin to live while you still can." -EV
    1. Re:Business. He's right by Lt+Razak · · Score: 1
      I'd rather have read your responses to other posts on why their explanation of why Cringley's ideas won't work, were wrong.

      Honestly, I think there were good posts made today on why it won't work.

      Still a great article, though. Cringley is right on at least one thing... this type of thinking is what's needed to come up with a winner.

  140. Fair is Fair by The+Monster · · Score: 1
    If you're doing something for profit, it's by definition not fair use.
    Then Cringely is wrong in one regard. Instead of being a for-profit entity, Snapster needs to be incorporated as a not-for-profit! Any funds it collects from its members must be poured back into acquiring more CDs, bigger hard drives, and purchasing insurance to pay legal expenses in the event of action against it.
    --

    [100% ISO 646 Compliant]
    SVM, ERGO MONSTRO.

    1. Re:Fair is Fair by the_quark · · Score: 1

      Even assuming that is legal (and I believe it's untested in the courts, although IANAL), how do you fund it? Where do you get the $1.4 million to buy the music to start with? Also, I honestly don't know - can nonprofit companies have shareholders? As far as I know they can't. I think the whole thing turns on having shareholders in a public company.

    2. Re:Fair is Fair by Lt+Razak · · Score: 1
      Due to the way the NET Act was written (trading mp3s qualifies 'as profit' if you expect other mp3s in return, for instance, thus trading is illegal), I think the same would qualify here.

      The RIAA could argue that the member of the co-op who is downloading this CD, is in fact getting it 'for profit'. His/her own profit.

      The RIAA are tricky, and would figure something out.

  141. Re:Best Article Ever ( a different proposal) by plilja · · Score: 1

    There is a way something sort of like this could work. It would require a far more substantial up front cost, however.

    Imagine a corporation does an IPO and raises, say $150 million. They use that $150 million to buy 100 copies each of the top 5000 CD's, and maybe 25 copies each of another 100,000 CD's. Each CD probably has around 10 tracks. So this corporation now owns around 30 million song tracks.

    No RIAA control of the music, and no copyright violation so far.

    Then they sell a "library type" subscription to folks for a buck a month or whatever or just only allow shareholds to log in and keep it free (in this case, perhaps, bandwidth could be paid for by interst on excess capital or music could be served via a distributed network).

    Then they either:

    1) Let people borrow any song from the library that they want to listen to and, as long as all the owned copies are not currently "checked out" folks can listen to whatever they want whenever they want.

    Or, to expand on the idea

    2) Let people que up a song list and, as copies the songs they want become avialible, they get streamed in. That way you never violate copyright, folks get to hear exactly what they want (like a personal radio station) and you even avoid broadcast fees, because it's just an individual listening to a single owned copy of a song. No different, legally, then going to the library and checking out a CD really.

  142. RIAA would just buy out the company. by kaltkalt · · Score: 1

    Ok this idea is so incredibly stupid for so many reasons, but ignoring all the reasons already stated as to why this does not work, just think about this. If the RIAA bought 51% of the stock (which, if this is a public company, the RIAA could do), it would own the company, would appoint directors, and you can expect the corporation to start acting differently once that happens. In fact, I wouldn't be surprised if the company then merged with the RIAA.

    --

    Stupid people make stupid things profitable.
    1. Re:RIAA would just buy out the company. by Lt+Razak · · Score: 1

      Other Shapsters could be started. They can't buy the whole worl.....err, never mind.

  143. Is a corporation really needed? by Anonymous Coward · · Score: 0

    I was actually recently thinking about something similar - what if a group of N people came together, and each put in an equal share of cash to buy a CD? Is it legal, then, to actually create N-1 copies to so everyone has their own? Would this be fair use?

    How could the above be 'worse' than having people over your house listening to some music? Copying the music would allow multiple people to enjoy it from one source - the original cd - which is, in my eyes, equivilant to having friends over & listening to music - which, surely, is considered 'fair use'. (Imagine being sued for copyright infringement because you were listening to a Metallica CD in your car with a passenger!)

    Just some thoughts.

    1. Re:Is a corporation really needed? by Lt+Razak · · Score: 1
      ...would this be fair use?

      Of course not.

      The difference is ownership/useage.
      For instance, you can listen to any song you want to, for free. (Or nearly free if you consider paying for listening to the radio ads). However, maybe you don't want to wait all day to listen to your 1 song. You have the alternative to shell over $18, and then you get to listen to it anytime you want. (barring any copy-protection that chrashes your computer, etc, etc)

      You could, instead, go to your neigbors house and listen to it for free, sure, but will he let you come over at midnight when he's asleep? (Kind of reminds me of that commercial for broadband with the annoying neighbor! heh). Will he let you listen to it as loud as you want? And will he let you come over every day? No, of course not. Your question is silly.

      Chipping in a $18/N with N friends and making N-1 copies is, however, a great idea. I'd love ot set up a group of friends and do just that to start a FLAC collection. Hard to find that kind of niche, though.

  144. Another Alternative... by TrebleJunkie · · Score: 1


    Just buy the $@#%@#^%! album, you $@#$#$@#ers! ;)

    This message brought to you by the letters A, Q, and the blood alcohol content of .2.

    --

    Ed R.Zahurak

    You know, oblivion keeps looking better every day.

  145. Re:Best Article Ever ( a different proposal) by the_quark · · Score: 1

    See US Code Title 17, Section 109 (b)(1)(A). "Rental, lease or lending" of CDs "for the purposes of direct or indirect commercial advantage" is prohibited.

    Also, unfortunately, this kind of "logical" idea fails as long as the company is for-profit (which it'd have to be to have a $150 million IPO, setting aside how hard that is to begin with). When the company copies the music from its computer to the shareholder's, it's doing so for commercial advantage and has comitted a copyright violation. I refer again to the mp3.com case.

  146. you dont understand by Anonymous Coward · · Score: 0

    Cringleys scheme makes most share holders wealthy. the early investors get back the money when the stock splits. the stock retains value by earning money. every new investor means more revenue. the late investors get the music but perhaps no profit.

  147. Let me try to loophole it a little more by Pac · · Score: 1

    Because I think that is what it is all about, loopholing, isn't it?

    The corporation do not "dispose of, or authorize the disposal of" the CDs "for the purposes of direct or indirect commercial advantage". It mantains all these CDs for a legitimate business reason (for instance, to see if some of them become rare enough in one hundred years or to conduct CD MTBF tests). The transfer is done solely to shareholders and only to allow a shareholder to inspect personally the company asset.

    Also, I don't think a non-profit would have problems if it had enough (or rich enough) "shareholders" or mantainners. This one would certainly attract millions of small mantainners.

    1. Re:Let me try to loophole it a little more by the_quark · · Score: 1

      Well, that's considered "for commercial advantage." The presumption is that for-profit corporations act for profit. I don't think you'd get away with it in court, but, if you want to try, I'd be happy to short your stock. ;)

    2. Re:Let me try to loophole it a little more by blitziod · · Score: 1

      what get's me is that the fact that renting CD's is illegal. This is a TOTAL sham. Owning them in co op , however, is not illegal.

      --
      The only way to bust a doper--is when you yourself become a smoker!
  148. Not necessarily a bozo by Anonymous Coward · · Score: 0

    I don't think he's a bozo. Answer me this... If a corporation buys a song, can its owners listen to it? Seems fair. Can its owners borrow the asset (the CD)? Seems fair. Can its owners make a personal copy of that CD? Possibly. At any rate, it's an interesting idea and not automatically a "bozo" idea until it's really been explored and tested.

    Many entrepreneurs, discoveres, scientists, and inventors are considered bozos when the rest of us first hear their ideas.

  149. In Soviet America.... by momerath2003 · · Score: 1

    ...you own the music!

    (sorry, mods; it's my first "Soviet" post. I'm sure you can understand)

    --
    I had but a simple dream, to destroy all humans.
  150. Re:Best Article Ever ( a different proposal) by plilja · · Score: 1

    Not true. Under this scheme you never copy it to the users computer. You streeeeam it to a single point. Remember, one copy in memory is legal...as long as it is not "fixed".

    It is no different than any corporation that has a library of CD's for check out. (and no different from a Blockbuster video, or a used CD store) As long as o one makes copies of the CD's, everything is legal. In this sceme no copies are made beyond what has been paid for.

    So for profit is fine in this instance.

    Just never have out more then is owned at one time and you are free and clear.

  151. A creative, but silly idea by DavidBrown · · Score: 2, Insightful

    Why? What's fair use? Corporations aren't allowed to buy just one copy of commerical computer software for use on all of their machines. Why should they be allowed to buy one copy of a piece of music for simultaenous use by all.

    One copy = one user at a time. And "fair use" doesn't mean you can make a copy of music and allow multiple people to access that copy at any one time.

    Fair use? A library is fair use, but libraries don't photocopy their books for each person carrying a library card.

    --
    144l. ph34r my 133t l3g4l 5k1lz!
  152. better option by dmszero · · Score: 1
    start your own independant label, beat them at their own game, heavily integrate online sales/p2p activity.

    why do we need their content anyway? isnt that half of what this is about?

    dms0

    --
    -= world leaders choose world leaders not us, not a democracy, not a revolution! =-
  153. Re:Best Article Ever ( a different proposal) by the_quark · · Score: 1

    Again though, I'll direct you to USC Title 17, Section 109 which says that lending or renting CDs for profit is illegal, anyway.

  154. Beyond Stupid by salesgeek · · Score: 2, Insightful

    People, copyrights exist to control copying. Like it or not, just because you buy a CD, that doesn't make you the owner of the song, and fair use doesn't allow for wholesale copying of songs or albums or whatever.

    Cringly's idea is really bad. Instead of trying to find loopholes, let's get to the three issues that matter with RIAA:

    * Because of the degree of control over distribution, competition in the music industry, at least as far as price goes don't exist.
    * Unfair contracts to artists.
    * There's no incentive for innovation or new material for derivative work because old stuff doesn't ever move to the public domain.

    --
    -- $G
  155. Moving in the Right Direct by yintercept · · Score: 1

    I wouldn't give it the best model award...but it is moving in the right direction. The model is trying to find a way to fund the creation of music, while making downloadable music on the net possible.

    In some ways the proposal of selling worthless stock to fund public wreaks of the failed dot com model. The problem is that the money is likely to be wasted on some stupid feat like the MP3.com Beam it Up program, or the corporation would spend millions on the gazoo tunes of the CEOs younger brother.

    Rather than one initiative that tries to own all music in a semi public domain mode. Another approach might be to have multiple funding mechanism where fans of a certain artist would get together and raise funds for a the recording and release of an album into the public domain. If there was a very clear public domain full of music, that repository of public domain material is likely to grow into the popular music of the next generation.

    Hmmm, instead of generation-y the people after generation-x should start calling themselves "Generation-Sued."

  156. Re:Best Article Ever ( a different proposal) by plilja · · Score: 1

    That's why you don't lend or sell the CD or any fixed copy of the song. You stream the song.

    USC Title 17, Section 109 does not apply to:

    "a computer program which is embodied in a machine or product and which cannot be copied during the ordinary operation or use of the machine or product"

  157. Re:one word: my.mp3.com by 0111+1110 · · Score: 1

    It is an interesting idea. Is it legal to sell half of your CD or only certain songs? What about "timesharing"? Could 20 people each invest $1.00 in a new CD with the agreement (perhaps even written) that each person is allowed two days per month with the CD? What about a thousand people? Would it matter if the CD cost $2000 instead of $20?

    --
    Quite an experience to live in fear, isn't it? That's what it is to be a slave.
  158. Re:Best Article Ever ( a different proposal) by plilja · · Score: 1

    At the very worst, if wanting to avoid any possiblilty of an infringement suit, just get enough people to donate $150 million to start the thing up and run it as a not-for-profit lending library. Again, streaming the audio and limiting the number of streams per song to the owned number to avoid a legal restrictions there.

  159. What's to prevent . . . by angle_slam · · Score: 1

    What's to prevent Time Warner, Sony, BMG, etc. from buying all the shares?

    1. Re:What's to prevent . . . by Lt+Razak · · Score: 1

      I thought Cringely's article mentioned that only 10% stock would ever be available for sale.

  160. Re:Best Article Ever ( a different proposal) by the_quark · · Score: 1

    But streaming is covered by another set of laws. Sorry I don't have a clear link to the law (getting tired) but USC Title 17 Sec. 115 says if you're going to do on-demand streaming (where the customer picks what to listen to) then you have to pay mechanical royalties and get a deal from the copyright owner, or you're guilty of copyright infringement, again. That's the next thing mp3.com would've gotten killed on if the first blow hadn't taken them down.

  161. Re:Best Article Ever ( a different proposal) by the_quark · · Score: 1

    My friend, if I knew how to get people to give me $150 million for a nonprofit I would not be sitting here talking to you right now. :)

    Notwithstanding I think that putting together a nonprofit so clearly structured to avoid the law would probably in and of itself be illegal. And, as far as I'm aware, the streaming stuff hits nonprofits as well.

  162. Don't own it anyway? by Mjec · · Score: 1

    IANAL, but isn't this public broadcasting: displaying to several people. Don't the warnings say you are not allowed to (for example) show a movie to an entire office.

    Equally, if you own 1/1,000,000 of a company, and the company owns one million cds, you own 1/1,000,000 of each cd. You're still not an owner of each cd.

    Please correct me if I'm wrong.

    --
    "But everyone should know everything." -markab
  163. Two Thoughts... by burns210 · · Score: 1
    Just two thoughts that come to mind...

    1. Didn't mp3.com try to stream out copies of CD's THEY OWNED, to avoid the whole p2p legality issue?
    2. iTunes had the ability to stream songs to users over the net(later revoked to only the local area), and sites online (spymac.com) create systems of automaticly build a music list of all available songs from the current set of users...

    Aren't both those ideas very similar to this Snapster? Maybe it is just me.

  164. EULAs by tinrobot · · Score: 1

    It's a clear transfer of ownership."

    Not quite... you own only own ONE copy - the CD. You have the right to a backup, but owning the CD does not give you the right to copy and redistribute to many. Even if it's a corporation.

    If you want further clarification read copyright law. I think someone actually posted the fair use section somewhere in this thread.

    The law is pretty much the same on software as well, but companies issue EULAs not only to double insure copyrights but to also add additional types of protections... such as support terms, resale conditions, etc.. etc.. and why not - ink is cheap.

    I'm surprised record companies dosn't start putting EULAs on CDs... cheap and easy way to get consumers to agree to even more draconian terms...

    1. Re:EULAs by richie2000 · · Score: 1
      If you want further clarification read copyright law

      Oh, I have. I read it extensively during Twirlip's last JE debate. That part isn't really the issue here.

      owning the CD does not give you the right to copy and redistribute to many. Even if it's a corporation.

      What I think Cringely is going for is the notion that a corporation is a single legal entity, just like a person, and the shareholders could be construed as being co-owners of the CDs and the corporation may (or it's subsidiary, I don't know enough about US corp law to figure out why he lets the daughter dole out the music instead of the parent) have the right to let them listen in on the corporate assets. If the corporation is a single entity, it should have the right to allow shareholders access to the corporation's assets since they are the same people, legally. It doesn't have to do it, but it has the right to do so.

      A corporation certainly has the right to (as some have suggested otherwise in this thread) give their own stuff away to their shareholders - Microsoft has every right to make copies of Windows and give to shareholders. But can Microsoft buy a CD and play it to shareholders during a shareholder meeting? Would it make a difference if MS set up a mutual trust fund with a lot of beneficiaries and played the CD to them?

      However, this loophole could be plugged pretty quickly, if it isn't already. I'd rather see the RIAA get a clue and start reforming their business model or artists abandoning the major labels, alternatively seeing the major labels getting clues and leaving the RIAA, reforming their business models in the process. This is just a hack to patch up a bad system - for the long haul, we really need a new system.

      --
      Money for nothing, pix for free
  165. Successful and Similar Video Version of This by derfel · · Score: 1

    Cringeley's Snapster is somewhat similar to what's already been done with video rentals. There's a company around called Cleanflicks that buys videos, edits stuff that they think is questionable, then rents them. Hollywood got very hot over this and hit them hard with the lawyers. (Of course the artists had a problem with the censorship, this probably could be the subject of another thread.) Hollywood actually lost. The way their activities were covered under fair use was by having anybody who wants to rent pay a membership fee, turning them into part owners of all of the material. This precedent seems encouraging.

  166. What about used CD's by StillNeedMoreCoffee · · Score: 1

    Are all those used CD stores in violation of copyright. There are big chains like Best Buy and little ma and pa stores making money of the resale of CD's. In this transaction the copyright owner gets no benefit. Is this a "fair use".

    If so then maybe a model of selling the rights to someone to "own" the used copy say for a penny would suffice. If that system then no longer allowed you access to that copy. So the copy would have an owner for the duration of time that they were playing the music, then maybe offer it back up for sale. Micro Payment systems would be ideal for this. If you seeded the business with used CD's to begin with then the copyright holder would be out of the picture altogether.

    The business could keep track of usage and sell that information to the media and companies to track on popularity and trends.

    I am not advocating not giving royalty to artists (I have an issue when the copyright is held by a company and not the artist). I think that "creative people" should make resonable payback for their work.

    But this used CD industry is a big one and alive and well in your neighborhood.

    Is it an industry that the RIAA will try to shut down next (after the P2P networks and the kids and their parents)? or is this a "fair use". Or does it depend on the EULA that you agree to when you break the seal?

  167. mp3.com tried something similar to this by spike+it · · Score: 1

    mp3.com tried something similar to this just a few years ago. They purchased CDs, converted them to mp3s, and put them up on a special section of their website. After proving that the user actually owns the CD they are about to download by putting it in their CD-ROM drive (not sure what kind of verification was used to verify that they are a match), the user was able to download the mp3(s) for free.
    Needless to say, mp3.com was sued and lost.

  168. Different Markets by Nipok+Nek · · Score: 3, Interesting

    The point that noone wants to discuss is that many of the CDs accquired through p2p systems are NOT canabalized CD sales. Many of these people would NEVER accquire this music at the current price point of CDs. You can't say.. "Well, there have been 10,000 copies of this CD copied, so we lost $180,000" because many of those people would simply have not bothered.

    I have an example, but first some assumptions... (Yes I know the joke about assumptions)

    First: We will assume that there is a lot of profit in an individual CD sale. I've seen enough evidence of this that I believe it to be true.

    Second: We will assume that the music industry WANTS to make as much money as possible FOR ITSELF. (As opposed to making lots of money for it's artists)

    Anyway, My example/idea/experiment is this... The next time Madonna, or Brittney, or whoever's hot next week, comes out with a new album, sell it for $6.00. Or maybe $6.50. Work out a price that still gives everyone in the distribution chain at least 1/2 the profit they were making on a 'regular' cd. (Except the Label, who's profit margin would be cut to 1/3 what it is right now.)

    I predict that two things would happen. First: A lot more people who wouldn't buy an $18 album will be entirely willing to buy 3 (different) $6.00 albums, thus increasing total cash receipts. Since we halved everyone's profit (Except the record labels, which we cut by 2/3'rds) the artist is seeing 50% more money, and the label is making the same money it was on the expensive albums. This would also have the effect of tripling unit sales. Second: People would be more willing to buy an entire album just to get one or two songs. This also means more money coming in. And Third, people who had been entirely priced out of the market (Example: Young Kids) would now be in a position to buy music. All of this means more cash coming in.

    (Short Tangent: If they did this, The Electronics arm of Sony would give every Record Label a big wet sloppy kiss as they cranked out more and more mega-CD-changers....)

    This kind of pricing has precident. Anyone remember when Taco Bell used to sell it's regular taco's for like $1.79? They decided to swap volume for price, and they are now one of the Big Three Fast Food Chains.

    But it won't happen.

    Since the record industry makes it's profit after they pay everyone else, it is in their best interest to keep unit sales low, and costs high. Why go to all this trouble just so the ARTISTS can make a few more bucks? The Label doesn't care if the artists album goes Platinum or not. Just as long as they are raking in the bucks.

    On a personal note, there are MANY artists who I own SOME albums of, but not all. If CD's were priced like tacos, I'd own the entire catalog of many musicians, just to say I had them all.

    Specific examples: They Might Be Giants, Madonna, and The Nylons (Who? :)

    Also! I'd go out tomorrow and buy up the entire back catalog of "Weird Al" Yankovich. I single out Weird Al because I already own all of his music, but much of it is on Vinal and Cassette. I'd have no problem re-purchasing on CD if the price was right. I bet you'd do the same thing.

    Nipok Nek

    --
    Why choose white shoes?
    1. Re:Different Markets by n_jed · · Score: 1
      Many of these people would NEVER accquire this music at the current price point of CDs

      That's the whole point. WHY SHOULD they get to listen to it if they were/aren't going to buy it. They listen to it - THEY SHOULD HAVE TO BUY it. WHat a stupid statement that carries bugger all weight. It's ok to steal something if you weren't going to buy it in the first place. Pretty stupid comment to make in the whole scheme of life you know.



      I might steal this mercedes because I was never going to buy one in the first place.

    2. Re:Different Markets by defMan · · Score: 1

      This is slightly different because i can't seem to think of a way to steal a mercedes without someone actually losing a mercedes in the process.

      It's a different kind of theft (so not really theft then) when noone actually is missing something after the fact.

      Suppose i could clone your mercedes, you would still have yours and i would have an identical one too. Now if that is an alternative for buying a mercedes i'm hurting the Daimler/Crysler company but if i had no intention to buy one in the first place it's not a loss to anyone (except the environment in this specific case).

    3. Re:Different Markets by erixtark · · Score: 1

      Theft or no theft, the problem is a sudden and severe imbalance in supply and demand. This balance has been completely turned over.

      I don't think the business logic of an entire industry ever before has changed as fast as we are currently observing the music industrys' to do. Basically, the entire business model of a record company has been swiped away.

      No wonder they're pissed.

    4. Re:Different Markets by Nipok+Nek · · Score: 1

      I never said it was ok to steal music. I'm saying that the industry is using bad accounting to 'prove' that p2p file sharing is taking money from their pockets. In many cases, it's just not so.

      --
      Why choose white shoes?
    5. Re:Different Markets by Nipok+Nek · · Score: 1

      I also forgot to mention that the $6.00 CD would probably wipe out the Used CD market in a heartbeat. The Recording Industry would LOVE that.

      Nipok Nek

      --
      Why choose white shoes?
  169. Re:Economics? Please.... by 0111+1110 · · Score: 1

    Actually the work *is* scarce until the artist intentionally makes hundreds of thousands of copies of it to spread far and wide. As soon as the first copy is made and released to the public the artist has lost this scarcity.

    --
    Quite an experience to live in fear, isn't it? That's what it is to be a slave.
  170. Re:Best Article Ever ( a different proposal) by plilja · · Score: 1

    Sure, how this avoids the near-fate of mp3.com is that it never streams out more then the number of copies owned by the sender (unlike mp3.com which relied on on an unproovable establishment of the reciver owning the music instead of the sender).

    You are right in that, it might not avoid the compulsary 3.5 cent per song compulsary licensing fee, however. Interestingly enough, Cringly may have (sort of) actually pointed out one exception. Change the word shareholder to the word employee, and you can get a coompulsary license excemption under USC Title 17 Sec. 114 (d) (II & iv) if you are transmitting to your employees at thier place of employment: "a transmission within a business establishment, confined to its premises or the immediately surrounding vicinity;" is excepmted. Ok, so perhaps this is only a mental excercise...

    Otherways of being exemted from the digital transmission compulsary licensing:

    Transmit the music recoded to matahmatically recreate the waveform of the music, thus constituting an analog, non-fcc licensed transmission, which is excempt.

    Transmit only music videos that are properly purchased by the sender. Music videos fall under AV laws and are fully rentable/loanable. (folks don't have to watch if they don't want).

    But, hey it is indeed late...

  171. MOD PARENT +FUNNY by Anonymous Coward · · Score: 0

    This is genius! Fair use: "The artists feel used, and the RIAA thinks it's fair."

  172. Why doesn't NetFlix get into trouble? by ScooterBill · · Score: 2, Interesting

    I would assume it's because the video rental business is established and of course benefits the MPAA. In other words, no one has a vested interest in shutting it down. But how come I can rent (thru Netflix) a Norah Jones concert DVD and yet I can't rent a Norah Jones music CD? I need a legal explanation here.

    Thanks

  173. The Business of Music by samj · · Score: 3, Interesting

    Message-ID:
    Date: Fri, 25 Jul 2003 16:26:36 +1000
    From: Sam Johnston
    User-Agent: Mozilla/5.0 (Windows; U; Windows NT 5.2; en-US; rv:1.5a) Gecko/20030718
    X-Accept-Language: en-us, en
    MIME-Version: 1.0
    To: bob@cringely.com
    Subject: The Business of Music
    Content-Type: text/plain; charset=us-ascii; format=flowed
    Content-Transfer-Encoding: 7bit

    Good Afternoon [Robert Cringeley],

    A regular reader of your column, I write from Sydney, Australia to
    provide some feedback about your 'One Possible Future for a Music
    Business That Must Inevitably Change' article
    (http://www.pbs.org/cringely/pulpit/pulpi t20030724 .html). I am not a
    lawyer, so I cannot comment on how successful your model would be
    although at first glance it seems to be taking advantage of a loophole
    that would soon be plugged. Worse still, initiatives like this are
    clearly not in the spirit of 'fair use' and may jeapordise the future of
    fair use provisions. I believe the test is 'would it replace a sale',
    and on that front you're buggered in a similar fashion to mp3.com.

    That said, you have correctly identified the (diminishing) role of music
    companies. I currently have some guys in my office churning out HDTV
    ready broadcast quality footage using a $1,500 Mac, $500 in software and
    a $10k DV camera. Admittedly these guys won the 'Best Comedy' section of
    Tropfest (http://www.tropfest.com/) using similar technology earlier in
    the year, and thus possess some amount of technical and creative
    ability, but the point is that they are not requiring hundreds of
    thousands or even millions of dollars of equipment to generate content.
    I trust the same applies to the music industry.

    Now, if new electronic distribution companies were set up which would
    allow content creators (note I'm using the generic term, rather than
    musicians) to sell their content with a 95/5 split (or thereabouts) in
    the creator's favour rather than the current (reversed) situation, and
    if the cost of the content was adjusted to maintain similar returns per
    sale, I believe we'd all (with the exception of fat record company execs
    and content creators who require significant investment - eg hollywood
    studios) be much better off. All of a sudden we're paying 90-95% less
    for content. Distribution is much cheaper and so the distributors are
    still able to make a profit (which is more in line with effort
    expended). Content creators still get $x/sale. However, content
    consumers are suddenly able to stretch their content budget much
    further. Say I spend $300/annum on CDs - that might be worth 20 CDs
    which are bulky, inconvenient and prone to damage. Instead, I get
    something like 20 times that, and in a format that is convenient. Note
    that even if I spend 1/20th of what I spend today, the artists are no
    worse off.

    Users don't bother sharing it because:

    - the distributors have fast, distributed networks as opposed to slow,
    intermittent connections that are oh so common on P2P networks
    - their files are high quality, and are able to be converted (ideally
    'peeled') to lower bitrates for portable devices
    - the integrity of the files is guaranteed by checksums and/or digital
    signatures
    - digital rights management (if any) is transparent and unobtrusive.
    an identifier - maybe a watermark if it could be implemented without
    quality degradation, or simply a header and digital signature (without
    which integrity could not be guaranteed) could be used in cases of
    copyright violation.
    - i can still be sued by the distributor or industry associations and
    the value proposition is simply not worth the risk. this process is self
    funded, and without a secure way of ensuring my identity is concealed,
    is an effective deterrent.
    - significant value is added in the way of being able to download
    content at multiple sites, maintaining and sharing playlists, etc.

  174. The RIAA would just sue each instance an owner by Anonymous Coward · · Score: 0

    allows a non-owner to make a copy...

    At $100,000 per violation if I am correct, could get very costly. It is the corporation that would get sued...

    Cringley forgot to answer the obvious:

    "How do you control the owners to insure that they do not provide copies for non-owners?"

    =8-)

  175. Re:Best Article Ever ( a different proposal) by the_quark · · Score: 1

    Let me try to rally from coding too long and answer to the best of my abilities.

    I'm having a lot of trouble finding the part of the law you're talking about. In my copy it's maybe 114 (d)(1)(C)(ii & iv). If so, 114(d)(1) says "The performance of a sound recording publicly by means of a digital audio transmission, other than as a part of an interactive service..." interactive service is the magic phrase, there. If the listener gets to decide what it is, it's interactive. Otherwise, you've just reinvented streaming radio, congratulations. :p

    I realize there are a lot of magic code words here and the law is nonobvious. As I've said, I only know it because I spent several years trying to make sure I didn't accidentally step across the line while designing systems at EMusic.

    Transmitting the music in an equation - setting aside the nontrivial nature of this task :) you'd still need to digitize the equation and I bet you'd lose that one in court.

    As for the music video idea, see rollingstone.com, which was purchased by EMusic. ;) If you got big on it, though, I imagine you'd need to pay mechanical licenses, anyhow, which is prohibitive at the interactive, statuatory rate ($.075+)

  176. Thank you for saying this! by cgenman · · Score: 1

    Why is everyone focusing on the tremendous legal shortcomings of his plan, and nobody is focusing on the severe financial problems?

    Essentially, he wants to sell a startup for 200 million dollars, then split the stock 6 times while retaining the original stock price. Not only would his company be worth 12 billion dollars, but the incentive for early investment would be exclusively based around the entry of new stock investors and not in the financial value of the company. And this fresh investment would provide the financial capital that would drive the company.

    Can you say pyramid? I knew you could.

    Furthermore, at 10 CD's per year at 50 cents each gross revenue would be about 6 million per year but the cost of all of those Visa transactions would be about 5 million of that... and that's just what Visa would charge you, not your accountants, your billpay system, your backlog of unpaid bills, etc.

    In short, neither of Cringely's proposed revenue systems will actually produce revenue. Complete illegality aside, there would be nothing to power the company. Nice try, but he needs some new economist friends to go along with better lawyer friends.

    1. Re:Thank you for saying this! by Alsee · · Score: 1

      the incentive for early investment would be exclusively based around the entry of new stock investors and not in the financial value of the company.

      Actually all of the financials are side effects. The function of the shares is not as an investment but to make you part owner and entitle you to the downloads. Even if the "inventment" never earns you a cent the download rights are worth the $20.

      cost of all of those Visa transactions

      There's no reason you have to make them separate transactions. Sell them in blocks of 100 or 200 downloads. You make one payment and the server just keeps a counter.

      The real obstacle seems to be whether his his stock / shared-ownership / backup-right plan will fly or not. And he does claim to have consulted serveral lawyers on the issue. I'm kinda sceptical, but I'd be willing to buy in for $20 and give it a shot. Anything that has a chance to put an end to the RIAA's shenanigans is worth twenty bucks.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
  177. deja vu by Pompatus · · Score: 1

    So I post to slashdot with this cool idea 3 stories down. I then go upstairs to talk to my roommate about it and he says, "yeah I heard of that before". So I wonder why I never heard of it before, but hey, at least it might be a good idea.

    Great minds think aline :)

    --

    ----
    Squirrel ... It's not just for breakfast anymore
  178. Re:Best Article Ever ( a different proposal) by plilja · · Score: 1

    Well, darn it all anyway then!

    Thanks for helping me play out this line of reasoning a bit!

    (and for ignoring my gross spelling and gramatical errors as they compounded with the lateness of the hour).

  179. Hack Capitalism! by Bug-Y2K · · Score: 1
    This is not about copyright or music... this is about hacking Capitalism! Brilliant. I love it.

  180. Please, don't support ignorance. by giveuptheghost · · Score: 1

    This is Cringely.

    This is the article that Cringely wrote.

    This is the Slashdot article about Cringely's article.

    These are the ignorant comments that the_quark posted after reading the Slashdot article about Cringely's article.

    This are the people that posted ignorant replies to the ignorant comments that the_quark posted after reading the Slashdot article about Cringely's article.

    And this is giveuptheghost, who posted an unfunny parody of an anti-drug TV ad, was modded down, and lost precious karma points on Slashdot.

    Slashdot posts support ignorance. If you post to Slashdot, you might too.

    Sponsored by the RTFA Committee

  181. Re:one word: my.mp3.com by the_quark · · Score: 1

    No, that isn't the point. They did not get in trouble for downloading. Read the decision. All they got in trouble for was making 3,000,000 MP3s with a profit motive. That's a clear violation of US laws, and Cringley's company would have the same problems.

  182. Re:one word: my.mp3.com by the_quark · · Score: 1

    Read the decision. Mp3.com got pwn3d because they copied the CDs with a profit motive, at all. They got burned on the encode. They never even got tried on the downloads (which they would've lost, too). It doesn't matter if they're shareholders, or not. Cringley suggests charging a nickle - if you make $.05 on the copy and don't pay the copyright owner, you're clearly guilty of copyright infringement and will lose. This isn't some weird gray area, it's very well defined.

  183. Re:one word: my.mp3.com by the_quark · · Score: 1

    That's not what mp3.com got in trouble for. Read the decision. MP3.com got it trouble for ripping 3,000,000 songs to encode them to MP3. They never even got to the question of whether users could download them.

    The law in the US is, if you aim to profit from making a copy, you have to pay the copyright holder. MP3.com didn't plan for this, even though the copy the end-user would've made would've been fair use. Every time they copied the music (once to make the repository, once for each end user) they need to pay the copyright holders. They didn't, so they lost. Cringley's company has exactly the same problems.

  184. Re:Best Article Ever ( a different proposal) by the_quark · · Score: 1

    Hey, my pleasure! And double for me on the errors.

  185. Re:one word: my.mp3.com by Dr_Cornholio · · Score: 1

    Very true, but you are only referring to the CD. The issue at stake here, is the IP contained on said CD. The record company owns the IP on that CD and you are therefore bound by IP laws governing that IP. This is a very different ball game. This is either yet to be challenged in court, or has already been challenged, a la MP3.com

    --
    In Soviet Russia, the monkey spanks you!
  186. Numbers are wrong by erixtark · · Score: 1

    "Each share also carries the right to download backup or media-shifting copies for $0.05 per song or $0.50 per CD [...]. If they download an average of 10 CDs per month revenue grows to $60 million per year. [...] Now grow the business to its logical size of 60 million users. At 10 CDs per user per year, Snapster download revenue would be $3.6 billion or about a quarter the size of the current recording industry, which it would effectively replace."

    That should be "10 CDs per user per month".

    Funny, no one noticed.

  187. He forgot about the artists! by tincho_uy · · Score: 2, Insightful

    I don't know about the legality of his proposal, or even if his business estimations are reasonable, but he forgot the most important point: the artists

    By his reasoning, CD sales would drop enormously, as anyone subscribed to the service would have access to the music, but the artists wouldn't see any kind of compensation for their work. In a "best case scenario", where everyone used this kind of service, any given record would sell only as many copies as there are service providers, plus a few CD's to those who insist in having the original packaging. How long do you think this would last?

  188. Re:How Industrious by Anonymous Coward · · Score: 0

    Why not try making a usable UI for Linux, or a decent piece of office software? Why are you so OBSESSED with STEALING MUSIC?? I DONT GET IT!!

    People are just getting tired of the RIAAs and SCOs of the world dictating what music they should listen too are what OS they should run.

  189. TOTN by Anonymous Coward · · Score: 1, Informative

    Cringely made this great documentary called "Triumph of the Nerds." If you haven't already seen it, get it on DVD its very interesting and entertaining. Even though its quite old now, it still has relevance in today's computer world. It would be cool if he did a follow up documentary.

  190. Still trying to replicate the recording industry by serutan · · Score: 5, Interesting

    Not being a lawyer, I found Cringely's idea very imaginative and stimulating. Other readers have mentioned possible legal flaws, but I think the scheme has an even bigger problem: it ignores the fact that we really don't need a music downloading business. Of any kind. The recording industry might need one, but musicians don't need one and the public certainly doesn't. The idea that anybody has to make money distributing individual copies of songs is an artifact we can afford to lose.

    In an editorial mentioned on Slashdot a couple days ago, Doc Searls said something about television that I think is highly relevant: that it is a mistake to think of television shows as products and viewers as customers. Searls points out that the television industry makes its money selling eyeballs to advertisers. Shows aren't the product, they are merely bait that converts ordinary people into ad absorbers who might buy products later.

    Likewise, from a musician's viewpoint, recordings are a way to convert people into future concert ticket buyers. It's been pointed out abundantly on Slashdot and elsewhere that musicians make money by performing, not by CD sales. What musicians get out of distribution (of any sort) is the fame that generates better gigs. For some reason everybody seems to have a hard time letting go of the idea that somebody has to make money selling copies of songs.

    Try looking at it this way. The recording industry is in the position television set manufacturers could have been in if they had thought of building tv's like pay phones, collecting the coins, dictating which shows could be broadcast and demanding most of the rights. If that were the case, television set makers would now be right in the middle of the fray over video file swapping, claiming to be losing money with every download, probably also claiming to be protecting the creative artists who produce the shows (but who get none of the coins), and perhaps suing everybody like the RIAA is doing.

    Obviously all that is unnecessary and sounds ridiculous, but it might not seem so if we were used to it. After a century of constantly feeding quarters into televisions, it might well seem like something was morally wrong unless someone was getting paid whenever a show was viewed.

    There is in place right now plenty of infrastructure to freely distribute the songs of anybody who wants their songs distributed. What musicians and the public get from this technology is a way to eliminate the filtering imposed by the music business, do the distribution automatically, get the exposure for free and let the public pick the winners. Replacing the recording industry with a different middleman is completely unnecessary.

  191. Re:Yep that'll work... For about three seconds. by Alsee · · Score: 1

    all of a sudden every new CD that is bought comes with a draconian Microsoft-style license

    Three problems with that scenario. First of all it still isn't legally clear if even the Microsoft EULA is enforcable.

    Second you can only licence the right to make copies, the right to distribute copies, and the right to public performance. Without the grant of one or more of those rights a licence does not exist. You can't simply slap arbitrary restrictions on a product. The only reason software comes with an EULA is based on the theory that you need a licence to install (copy) it to the harddrive and/or to copy it into RAM when you run it. That theory of software EULA's probably fails becuase US copyright law explicitly states that you don't need a licence to do those things. They can't licence you a right you already have, so if they aren't actually giving you anything the contract null and void.

    Third, even if they could slap a licence on new CD's, the corporation could still buy a copy of every existing CD. Assuming the plan works that would probably be enough for this company to completely kill off and replace the RIAA.

    -

    --
    - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
  192. Re:one word: my.mp3.com by rmohr02 · · Score: 1

    The legislators can't take away fair use. They added it to law in 1976 (IIRC), but it had existed years before under the courts.

  193. Re:Yep that'll work... For about three seconds. by Alsee · · Score: 1

    That the system should be set up so nobody can make money from digital content?

    Once the RIAA is gone the company still needs new music. There's no reason it can't pay artists quite well for their work.

    I'm not sure why Cringely didn't go into more detail on this part. He points out that the company will need a new source of CDs when the RIAA is gone, and later suggested that the company should plow profits back into the music industry but says he's not sure how. Seems obvious to me, let artists contribute at will and pay them based on downloads.

    Really, that's how the RIAA should function. It's sheer stupidity that the RIAA refuses to properly serve the online market. No one wants to buy a DRM crippled product. No one wants to pay a buck a download. And no one wants to be restricted to a fraction of the full catalog of music. And there's absolutly no reason not to enable every garage band in the country to put their stuff on the system.

    The RIAA could be quite successfull and profitable selling downloads. They simply refused to. Instead they are persuing an insane agenda of new laws and getting every piece of hardware crippled with TCPA.

    -

    --
    - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
  194. Mod parent insightful, someone by scottme · · Score: 1

    What he says is just so true.

  195. Get Real by superjohn_rtp · · Score: 2, Insightful

    I wish people would realize that the only way to get rid of the RIAA is to give an alternative to the Artist that create the music and not come up up with a grand scheme to defraud the whole industry. There are thousands of working musicians that put in a lot of time and effort to create the music that many of you believe should be free. Well, they need to be paid, or else there won't be any more music. Now, if you want to modify this idea and have the publicly traded corporation hire musicians to create music owned by the corporation and available for it's shareholders, that would be legal and quasi-ethical as long as an independent musician could still sell his product to the general public. At this point, when you steal music, you are hurting the artist far more than the RIAA. I know this isn't what most of you would like to do, so come up with some means for an artist to freely own his work and get paid for it while making it available to the public for a reasonble fee.

    1. Re:Get Real by jxbird · · Score: 1

      I think it's laughable that the industry, the artists, all of them finally get what they deserve after all these years of screwing the consumer with WAY overpriced music. What I'm saying is that just because music has always been overpriced doesn't mean it's worth it. I'm an Oracle Apps developer. A few years ago my services were worth $200/hour. Today, the SAME services are worth $35-40/hour. Why? The consumer found an alternative. Did I ever "deserve" $200/hour? Of course I did - just ask me.

    2. Re:Get Real by Anonymous Coward · · Score: 0

      I'm not talking about the Britney Spears and Missy Elliots of the industry. I'm talking about the guys that are performing for a living and making nowhere near your $25-$40/hour.

      Your example also clearly illustrates my point. If you continue to steal music, there won't be any new music left. I agree CD's are too expensive. That's not the artists fault. They only get a fraction of the cash that a CD costs. The RIAA is screwing everyone, but downloading and trading MP3's for free is hurting the little guy more than it's hurting the companies.

      If you don't like the price of something, don't buy it. Don't go out and steal it. If we treated every industry like you want to treat the music industry, then we'd be calling for Open Source car locks and freely traded Ferrari's in everyones driveways.

  196. My email to Cringely *before* the article by zmower · · Score: 1

    What to do about the RIAA
    From: Chris Moore
    To: letters@lwn.net, andrew.orlowski@theregister.co.uk, bob@cringely.com
    Subject: What to do about the RIAA
    Date: Sat, 19 Jul 2003 21:33:18 +0100

    Hi,

    Boycotting them is too much and not enough. It's too much because it implies abstinance and it's not enough because they deserve so much more. There's a much better way to stiffle them; swapping CDs in meat-space. Since there is no copying taking place and no re-sale then it's entirely legal. It removes the abstinance part, it's fun, hits them where it hurts the most and there's the obvious analogy with what happens online.

    Finished with a CD? Take it down to the swap meet. An ideal place to meet is probably in front of the court house. Even if RIAA aren't prosecuting file swappers there, it's kind of symbolic and who knows, maybe the judge has some CDs he's finished with?

    Chris Moore
    Portsmouth, UK

    --
    Sig pending!

    As you can see it is also based on sharing but since there's NO COPYING its entirely legal and you don't need $2 million to start. Combine with flash mobs for extra buzz. ;-)

    --

    Sig pending!
  197. Donate to your library by Anonymous Coward · · Score: 0

    If there is something you want to be able to share with everyone donate it to the library.

    1. Re:Donate to your library by Anonymous Coward · · Score: 0

      I'm still not sure how Libraries get by with this. Radio Stations have to pay astronomical fees for internet users to listen to the music they pay. Why don't libraries have to pay fees?

  198. Bad model - RIAA will make it their own by HutchGeek · · Score: 1
    With all the posts about his idea is poorly thought out, and the problems with it being legal, the people at RIAA are no doubt now looking at a way to do this themselves. After all - THEY own the rights to the CDs remember? Face it - the artists really don't - they have to obey whatever the labels put in thier contracts, which almost all will in some way or form, put the rights of distribution in the hands of the labels.

    Now they have a way where they can control the distribution of music over the internet, and make money off of it as well.

    As for the part of the fair-use law specifying personal use, and not a "collective ownership" remember - this is RIAA - they'll just get the law changed. Not possible? This is the same bunch of folks who wanted Congress to make it legal for them to hack in to your PC to look for pirated files, and then have the right to damange your PC to shut it down.

    Cringely didnt come up with that far-fetched of an idea - he just came up with one to fatten RIAA's pockets more and let them keep control over the music industry - which is exactly what they want.

  199. Buy the RIAA by nattt · · Score: 1

    Surely it would be better to set up Snapster to raise enough money to mount a hostile takeover of the RIAA (and record companies) one at a time, shutting each down and donating all their copyrights to the public domain. Buy them one at a time so you never become a monopoly.

    --
    -- oldthinkers unbellyfeel ingsoc
  200. More interestingly... by artemis67 · · Score: 1

    Does this mean that, if I own shares of Time Warner, and I am sued by the RIAA for downloading TW's music, that I can claim it's my right as part owner of the company?

    1. Re:More interestingly... by finkployd · · Score: 1

      Absolutly not, the company would have to grant you that right. Just because you own a tiny fraction of a company doesn't give you access to company assets. You get dividends, that's it. Unless the company chooses to give you something more.

      Finkployd

  201. use the same system to hijack open source by pauldamer · · Score: 1

    I'm much to late to be read by anyone but, you could use a similar system to hijack opensource programs.

    instead of selling copies of your proprietary descendant of an open source app. Just let anyone of your "partners" use it. The GPL doesnt require you to distribute the source of any changes as long as you don't distribute binaries. But in this case all the binaries would remain within your partnership.

  202. Re:Still trying to replicate the recording industr by UID30 · · Score: 1

    I have to agree that many musicians can survive by using recordings as a way of promoting live performances, but this model doesn't fit every musician. When was the last time you heard of that monster Dead Can Dance tour?

    IMHO, the dinosaur that is RIAA needs an overhaul that puts a larger % of sales income in the hands of the musicians and less % in the hands of the leeches. Overall music "cost" to the consumer could be lowered while at the same time increasing income to musicians ... and embracing technology for distribution is the key.

    I don't pretend to have any of the answers for how to do this while protecting the musician's copyright, but it is clear enough that RIAA is trying their hardest to make everybody that knows how to point-and-click look like a potential thief.

    To RIAA: If you think you are having problems now, just wait 5 years. Technology is not slowing down.

    --
    "Glory is fleeting, but obscurity is forever." - Napoleon Bonaparte
  203. Incremental argument by ConfusedVorlon · · Score: 1

    I own a cd, I can use it
    My wife and I own a cd, we can ues it
    My wife, my kids and I own a cd - can we all use it?
    My extended family?
    My neighbourhood?
    My community?

    where do you draw the line? Based on blood?
    Based in shared financial comittments?
    If the latter; My company/commune/cooperative owns a cd...

    The judge would have to strike it down, but I'd love to see the tortured reasoning that would be required.

    1. Re:Incremental argument by Steveftoth · · Score: 1

      I think though that the license could be interepreted such that the content of the CD can only be played one at a time. So that if you make a copy of the CD, you can then only play either the original or the copy, but not simultaneously.
      Like many people I have almost all my songs from CD copied to MP3, and have multiple copies of the mp3's, on backup cd's, at work and on my home computer. But only one version of any song is being played at one time so I'm fairly sure that I'm still in fair use.

    2. Re:Incremental argument by finkployd · · Score: 1

      What license? I agree to no license when I open a CD. I can't even find a license.

      Finkployd

    3. Re:Incremental argument by Steveftoth · · Score: 1

      So you're saying that once you get your hands on the CD you can do whatever you want with the music on the CD? Copy, resell it, publicly perform using that music?

      Sorry, but there is a license that you have to abide by, it's covered under copyright law.

    4. Re:Incremental argument by finkployd · · Score: 1

      No, there is not a license. Yes, there is copyright law.

      Two completly different things.

      Software has a license (think EULA), which can take away fair use rights, and impose all kinds of other stupid restrictions. I have yet to open a CD with the same.

      Finkployd

    5. Re:Incremental argument by Steveftoth · · Score: 1

      I fail to see how you do not have a license to the music when you buy it. (otherwise why not just copy a friend's CD).

      EULAs impose additional restrictions upon the software that you buy. There is already the restriction of copyright upon the software but eulas impose further blocks upon the software.

    6. Re:Incremental argument by finkployd · · Score: 1

      I fail to see how you do not have a license to the music when you buy it. (otherwise why not just copy a friend's CD).

      Because that violates US copyright law.

      Finkployd

    7. Re:Incremental argument by Steveftoth · · Score: 1

      That's my point, that when you buy a CD, you are buying 2 things, a physical CD, and a license to actually play the content on that CD. That license is however restricted by US copyright law. AKA, you can't do whatever you want with the CD.

      If you buy a CD containing uncopyrighted (public domain for example) music, then you are free to do whatever you want with the contents of the CD.

  204. Re:one word: my.mp3.com by modecx · · Score: 1

    Regardless of when a law was made, I'm not so confident that it can't be removed, or changed for the worse. After some of the stuff that's passed in earlier years, and the underhanded tactics that some politicians use, I'm just not sure they're always on the lookout for the people.

    --
    Constitutional rights may be respected, repealed, or modified; but they must never be ignored.
  205. I think there is a problem by frode · · Score: 3, Insightful

    Let's say you and a friend go to the store to buy CDs. Getting there both of you discover that neither one has enough money alone to buy the CD they want, so you pool your money to buy the CD.

    Now who has ownership of the CD? I'd say you now have shared ownership of the property. Could both of you make a copy for backup, probably. Could both of you transfer the music to MP3, yes, however my understanding of the law would say that the mp3 copies of the song could not be used at the same time. There is the problem.
    Otherwise Blockbuster could make DVD copies of all there VHS tapes and form a a mini-partership which would allow all parterns to have unfettered access to the material.

    I think Cringley is onto something though, morph his idea into a music rental system, similar to Blockbuster. Form a company, buy CDs (you'll need multiple copies of popular CDs) and offer streaming access to that music though a subscription service.

    However the max amount of people who can listen to the same song at the same time is limited to the number of copies of the song that have been purchased. Example you buy 10 copies of CD "X" you can now offer out 10 streams of each song on CD "X", if an 11th person wanted to listen to that song they would need to be queued.

    Would probably be legaly viable now would it be practical from a business view.

    --
    I have no .Sig
  206. Uh.... no by MemeRot · · Score: 1

    I own stock in several companies. Said companies own chairs, Microsoft Office licenses, copier paper, etc. Do I have the right to copy or use their MS Office installation? Can I go into the company and sit in the comfy Aeron chairs? And take home some paper while I'm there? NO.

  207. Re:Red Cent by daBum · · Score: 2, Informative

    According to the "Origin of Phrases" page:

    One red cent

    Meaning: A single symbolic penny.
    Example: I refuse to pay even one red cent for the work until you complete the whole job.
    Origin: The "Red" refers to both the color of a penny (one cent) and the image that used to be on the penny, an American Indian head. Redskin is a slang term used for American Indians.
    Before today's Lincoln penny was the Indian Head penny.

    The Indian Head penny was first issued in 1859 and looks just like that as issued in 1908 (before the Lincoln Cent). The only difference was that those from 1859-1864 were of a different copper-nickel alloy while 1864 started the common bronze, which was used until 1982. (You didn't know it changed then, did you?)

    The copper-nickel alloy has a reddish tint, which turns redder with time and skin oil.

    Before the Indian Head penny was the "Buzzard Cent", as the One Cent coins in 1856-1858 were called. The flying eagle on the coin was damned as an ugly bird and it wasn't popular.

    However, it was the first "small cent" using about the same size as our penny today. In the half century before this, One Cent coins were about the size of today's Half Dollar! (of course they were also worth something then)

    --
    I am dyslexia of borg - your ass will be laminated.
  208. Slashdot Readers watch too much Monty Python.... by koa · · Score: 1

    Does anyone else see the resemblance to the "PFJ" (Peoples Front of Judiah) in Slashdot posts recently? "I, for one, move to have an immediate discussion about having a discussion.."

    Heck, maybe soon they will free "Wodowick" or "Bwyan".

    --
    ....move along....nothing to see here....
  209. Might as well hand over my copy of Windows XP by Art_Vandelai · · Score: 1

    Aferall, through my mutual funds, I and millions of others own shares of Microsoft. Does that mean by default, I then own Windows and have the ability to use its products without paying for the licence under fair use rights? C'mon now.

  210. Very close to the truth... by jday · · Score: 1

    Actually, more like $18,999,999.99! Consider for a moment that you could induce the music producers to license a CD to you for re-distribution... (i.e. the normal notion of fair use of a single product sold to a single individual is void) You'd probably have to pay quite a bit for that, don't you think? Of course, the music producers wouldn't want to destroy their ability to distribute thier own music through "record stores" (CD stores?)... or would they? What if you could pay the RIAA more than their otherwise realized income on even fewer sales? What if you could ensure a long-term non-physical distribution channel? Do you think they'd be willing to give you the license then? You betchyer bobby-sox! Three major reasons (off the top of my head) this is possible: 1. Physical production and distribution is expensive compared to electronic methods. 2. CD stores will not exist forever (let's face it) and it's time to plan for the future... You know they probably think about it everytime they take someone to court/settlement. 3. Decades of revenues already lost due to bad pricing policies. Any economist would tell you they've missed decades of opportunity for increased revenue... One word: ELASTICITY! Pricing every CD between $13.99 and $18.99 is simply not intelligent when so many more people would buy it if it was cheaper. Summary: We're right to question the fair-use of a single user product, but it may still be lucrative to pay our way around fair-use as a corporation, offer music cheaper, and make more money for everyone who has staying power. (Buh-bye CD stores... You didn't really think selling information at physical retail locations would last forever, did you? The shame!)

    --
    Peace and Blessings, jday
  211. Re:Economics? Please.... by BigBadBri · · Score: 1
    Deserving has nothing to do with it.

    It is a question of whether people are willing to pay for the utility that is more relevant - and 'piracy', copyright infringement, filesharing, etc. are merely a market response to the overpricing of this particular utility.

    Morally, you may have a point, but then the market has no morality, nor should it have.

    If people wish to distort free markets by making laws, then it is only fair that this should be shouted loudly from the rooftops.

    --
    oh brave new world, that has such people in it!
  212. Corporate Personhood by John+Harrison · · Score: 1

    Google for "Corporate Personhood" to muddy the waters futher. In the USA corporations have the rights that people have.

  213. Re:Still trying to replicate the recording industr by 110100 · · Score: 1

    I couldn't agree with this more. Recorded music (read information) should be distributed freely while live performances (read services) should be charged for. This business model has worked very well on many open source software projects, and it's just as viable elsewhere.

    In my ideal music industry, the RIAA would be abolished thus doing away with the old business model of influencing music purchases though advertising. CDs would be available directly from the artist(s) at a highly reduced price ($1-2 to cover media and production costs), and freely online. Concert tickets would be more expensive, in the range of $40-50, and the artist(s) would give more performances in smaller venues. This would take the emphasis off production and put it on talent. The artist(s) with little talent but good advertising and production would fade away, while the artist(s) who really had talent would grow in popularity. Music which is more production based (read electronica), while fun to experience live, could justifiably be priced higher to cover increased production costs.

    I could see this model being applied across the board. The freedom of information coupled with the sale of services just seems like the most logical, natural order of things. And everyone lived happily ever after.

    --

    I have never regretted my speech,
    but I have frequently regretted my failure to speak.
  214. How about CD rental, ala netflix by sacrilicious · · Score: 1

    Netflix caught on because it was already common to rent video tapes, and when the form factor of dvds allowed them to be mailed then it was a small mental step for people to adapt to this model of usage. Now that it has caught on, it is one small step further for people to begin renting CDs through the mail. I hope netflix or someone else branches out into the CD rental business.

    --
    - First they ignore you, then they laugh at you, then ???, then profit.
  215. Re:This is sure absurd by BigBadBri · · Score: 2, Interesting
    Personally, I see nothing wrong with the notion that only those who can afford to do so should be professional musicians.

    If they can get people to pay to hear them play, all well and good.

    If they can persuade people to pay money for recordings og their work, even better.

    But for a situation to arise where people are forced to pay where a free alternative is available is totally illiberal and against all rational concepts of a free market.

    Before copyright, only the best music survived, because it was worth supporting (in an abstract, not an economic sense).

    Now we have a morass of pop-pap and gangsta-rap, thrash metal and tuneless, inane crap thrust down our throats by the marketing fools, and they expect us to part with our money like good little drones.

    And I'm not a classical music snob - I merely prefer to listen to properly crafted music played by musicians who have a love of what they do, rather than mechanically generated studio pap.

    Patronage - let's go back to it. There was plenty of music around then, all played by real people who ate, payed rent and enjoyed life.

    --
    oh brave new world, that has such people in it!
  216. Let's be honest.... by Anonymous Coward · · Score: 0

    The only thing Snapster will accomplish is the final eradication of fair use rights. Fair use was originally developed as a judicial remedy to the recording label's draconian approach to enforcing copyrights. If you can use a fair use loophole to completely circumvent copyright law, the legislature will solve the problem by closing the loop. They'll answer the question whether fair use still exists with a resounding "NO". It's evident that the lobbying power of the RIAA and MPAA have placed many politicians in their back pockets. The fair use movement isn't going to make any headway in the overall battle just by being "clever".

  217. Court orders RIAA to take back songs by Anonymous Coward · · Score: 0
    A recent federal court decision requires that RIAA take back all the illegal copies of songs that have been copied over the internet. RIAA must set up servers to recieve the estimated billions of illicit copies and P2P users are required to send their copies back to RIAA and removed them from their collection in order to avoid prosecution.

    ;-P

  218. Re:Economics? Please.... by Temporal · · Score: 1

    If people wish to distort free markets by making laws

    I'm confused. Are you suggesting that a free market could work without laws?

  219. Exactly! by DoctorNathaniel · · Score: 1

    It's a wonder to me that I had to look so deep to find this suggestion.

    I don't even think you need to have the "checked-out-at-one-time" caveat.

    Simple: form a not-for-profit institution, owned by it's members, and calling itself a library. Members can donate the CD's. Possibly, the physical location of the CD is irrelevant: members simply need to stamp "property of the InternetMusicLibraryOrg" on the CD.

    At this point, everyone in the organization is part owner of the CD, and is a member of the library services. So, everyone in the organization has the fair-rights use to make a copy of the CD in a new form (i.e. mp3) for institutional use.

    1. Re:Exactly! by the_quark · · Score: 1

      You absolutely have to have the one-for-one checkout for it to not be obviously illegal.

      As I've said elsewhere, this is not explicity prohibited by law, and I'm not aware of any caselaw on this topic. However, I suspect, if you put together something like this and it was known by everyone that - wink, wink, nudge, nudge - it was really all for piracy, I think you'd probably get put out of business by the courts.

    2. Re:Exactly! by Anonymous Coward · · Score: 0

      A library/co-op that lets you check out works (CDs, books) digitally would be nice in general.

    3. Re:Exactly! by Anonymous Coward · · Score: 0

      A library/co-op that lets you check out works (CDs, books) digitally would be nice in general.

      Check them out online that is...
  220. Fallacy by geekoid · · Score: 2, Insightful

    "Under your proposal, any artist, with or without a label, would sell exactly one CD to, well, the entire world, because people would be crazy to not participate in "Snapster" if it exists."

    Based on Napster, Kazza, etc . . . that does not seem to be the case. emmnemm had probably the most downloaded album ever, yet he still went platinum.

    "The only way to raise the price that Snapster will pay for your albums is by "getting established." The only way most bands will be able to do that is... big shock here... sign a contract with a big, evil record label (now a "marketing service") who is entitled by the contract terms to something like 95% of the sale (not sales, sale) of each CD the band releases under the contract."

    Not true. IT is the way it is currently done, but it is not the only way. Point in fact, if it was the only way, music radio would never have started.

    Music Radio stations need music. If big corpration stop providing it, they will go to the local talent. The raio station would need to pay a fee every time a song is paid. There is your money.

    I would also like to note, if all new musician refused to sign the current contracts, the contract will get changed. Contrary to what music companies will tell you, they need to to survive.

    I know it would be hard to resist the money, but I would wager most muscians could hold out longer then the reccord company, espcially if it was done en-mass.

    Sure, the musicians will have to eat hot dogs and top ramen for another year, but how much would a record company loose if the didn't sign new talent for 4 quarterin a row? there stock would plummet and they would loose millions.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    1. Re:Fallacy by real_b0fh · · Score: 0

      Yeah, record companies are sooo good to musicians that always a band gets enough recognition, and is able to break out of the contract, they do, and create their own record label. Led Zeppelin did that. Metallica too. Im sure you dudes know a lot of other cases.
      Those dudes (recording industry) are fscking vampires.

      cheers.

      --
      "Contrary to popular belief, UNIX is user friendly. It just happens to be selective on who it makes friendship with"
    2. Re:Fallacy by Golias · · Score: 1
      Based on Napster, Kazza, etc . . . that does not seem to be the case. emmnemm had probably the most downloaded album ever, yet he still went platinum.

      The situations are not analogous, because 1. Not everyone is willing to steal music. 2. Nobody will pay twice. I don't buy CD's of albums I bought through iTMS, and never would.

      Not true. IT is the way it is currently done, but it is not the only way. Point in fact, if it was the only way, music radio would never have started.

      I said the only way most bands can get established is via record labels, not all. BTW, good luck getting played by one of the 5 remaining radio companies without a label pushing your stuff.

      Music Radio stations need music. If big corpration stop providing it, they will go to the local talent. The raio station would need to pay a fee every time a song is paid. There is your money.

      Radio receive payola, not pay it out. (Oh yea, nobody admits to doing that anymore. They just have "promotional concert tickets" and stuff.) Bands need radio more than radio needs bands, because there are only so many radio stations and thousands of working bands looking for exposure. No model will change that fact.

      I would also like to note, if all new musician refused to sign the current contracts, the contract will get changed. Contrary to what music companies will tell you, they need to to survive.

      We don't need a new business model for that to happen. We just need struggling, naive bands making their start in the world to pass up the allure of a fat album contract and a shot at fame for the greater good of all the BWAA-HA-Ha-ha-ha-ha!!! I tried to keep a strait face while talking like that could happen, sorry.

      --

      Information wants to be anthropomorphized.

    3. Re:Fallacy by kimagine · · Score: 1

      I can understand the fact that you may want to post your feelings but in doing so, please learn about the function "spell check"/"grammer check" and that may put your point across a little better. Thank you, Mr. Golias

    4. Re:Fallacy by Golias · · Score: 1
      Apart from failing to close an italics tag, I'm not sure what you mean, Mr. Kimagine. There were some errors in the message I was quoting and responding to, but the stuff I wrote seems fairly clear.

      By the way, it's "grammar," not "grammer." Don't be embarrassed. Almost everybody who posts a nitpick about somebody else's spelling ends up with typos of their own when doing it. It's a time-honored /. tradition. :)

      --

      Information wants to be anthropomorphized.

    5. Re:Fallacy by Zleeper · · Score: 1

      I believe that every song I ever listened to on radio has already been "bought" for me by the radio station playing it into my eardrums. Therefore, I can download, copy or make for my use as much of that song as I want as they publicly played it in over the air, so therefore, it has been bought and paid for for me to hear it.
      Secondly, the songs that get ripped and in the process undersampled to ease swapping are in effect a new copyright, in that some work has been done to them to change them from their original form (made them more able to xfer) therefore, the new copyright now belongs to the ripper, not the original producer of the song (BTW it is not the artist, but the producer that holds the copyright on the CD, becuase it is a copyright on the physical CD, not the musical notes.) The copyright on the notes is held by the artist to guard against someone playing those notes,in that context and calling it their own. Remember the George Harrison vs. the Vandellas (?) I think, for "He's so Fine" vs. "Oh My Lord" It was ruled the notes were enough of the same for Sir George to loose his copyright on the playing of those notes and calling them his own work.

      Its all too muddy. I own what is in my brain. If I want to hear the fucking song that the pukes who are in cahoots with the prickster record companies, than I can listen to that fucking song anytime I like, and they can kiss my fucking ass. They got the radio to fork up the bucks, the CD manufacturers to fork up the bucks, the record stores to fork up the bucks, and the artists to fork up the bucks, to push their pieces of shit songs into my stream of consciousness anyway. If I want to hear it again, they should be honored I want to occupy my brain on their artist of week flavor.

  221. Re:Best Article Ever ( a different proposal) by Lt+Razak · · Score: 1
    What, is everyone blind today?

    mp3.com streeeeeamed their music too. They lost.

  222. Re:Economics? Please.... by BigBadBri · · Score: 1
    No - only that the laws themselves should only interfere with the workings of the market for reasons that are generally accepted as 'good'.

    For example - anti-trust laws are against strict definitions of a free market, but they are accepted as good because they promote innovation through competition. Limited copyright laws are also good, because they give an incentive to innovate.

    But copyright is not an inherent right - it is a privilege granted for the purpose of promoting invention. It is, without a doubt, a distortion of the free market, and needs to be justifiable in its extent and its application.

    --
    oh brave new world, that has such people in it!
  223. Re:Best Article Ever ( a different proposal) by Lt+Razak · · Score: 1
    As I've said, I only know it because I spent several years trying to make sure I didn't accidentally step across the line while designing systems at EMusic.

    Not to nitpick, but what exactly were you trying to tip toe around? I thought eMusic.com had the express permission from all the copyright holders to do... whatever service eMusic does. (I was a subscriber, so I know what the service is, being generic on purpose because really you got permission from those labels to: sell full mp3 copies of their albums on a subscription model)

    Otherwise, you've just reinvented streaming radio, congratulations.

    Exactly! Many people seem to be reinventing that today! ??

  224. Re:This is sure absurd by Temporal · · Score: 1

    And I'm not a classical music snob - I merely prefer to listen to properly crafted music played by musicians who have a love of what they do, rather than mechanically generated studio pap.

    You're a snob. Just because YOU don't like some sort of music doesn't mean it is bad. It only means that it doesn't meet your particular tastes. If it was actually crap, people wouldn't buy it. That's how the "free market" works.

    But for a situation to arise where people are forced to pay where a free alternative is available is totally illiberal and against all rational concepts of a free market.

    That's exactly why the free alternative is ILLEGAL. Otherwise, the market for information would not exist!

    Patronage can produce some art, but not much. It certainly will not produce the variety or the quantity that we have today. This is exactly the sort of thing that free markets are meant for -- producing the things people, as a whole, want, rather than just what a few rich snots like. Obviously, the best music will be produced if it is produced using capitalism, but that is only possible if copyright is enforced.

  225. Also works for avoiding the GPL by throx · · Score: 1

    This is not an original idea. It was proposed a while ago as an effective method for avoiding the GPL. If an arbitrary organization took some GPL'd code and made modifications then sharing the binaries to members of that organization is not "distribution" in the same way that a company can internally use GPL'd binaries without making the source available to all employees. Now given such an organization's requirement to entry is a nominal fee then you are effectively paying for the right to use a binary but the organization is not required to give you the source because it's not being "distributed".

    --

    Fear: When you see B8 00 4C CD 21 and know what it means

  226. Re:Economics? Please.... by Temporal · · Score: 1

    Well, great. Then, I say that copyright is a good thing to have. Copyright allows free market economics to apply to information, which obviously leads to more and better information being available, just as it does with goods and services. Without copyright, there is no comparably good way (that I know of) to produce these effects.

    BTW, the defition of a "free market" that I learned in economics specifically stated that there must not be any monopolies. So, anti-trust laws don't seem to be "against strict definitions of a free market".

  227. Interesting typo by Thing+1 · · Score: 1
    About 2/3 of the way through the article, in the paragraph starting with "What I have described is legal", he says:
    [...] but this simply will not stand and it is impossible to believe they could get any form of retraining order.

    Exactly -- those dinosaurs refuse to be trained in the new ways of doing business, and will die out.

    --
    I feel fantastic, and I'm still alive.
  228. Re:Still trying to replicate the recording industr by poot_rootbeer · · Score: 1

    Shows aren't the product, they are merely bait that converts ordinary people into ad absorbers who might buy products later.

    Likewise, from a musician's viewpoint, recordings are a way to convert people into future concert ticket buyers.
    ...phew! I thought you were about to suggest that CD's should have commercials in between songs.

    It's been pointed out abundantly on Slashdot and elsewhere that musicians make money by performing, not by CD sales.

    Pointing something out on Slashdot doesn't necessarily mean it's accurate. Many musicians might make more profit from peforming than recording, but not all. I know some fairly prominent musicians myself, and even after brisk ticket sales, respectable merch stand sales at each show, and travelling by rental truck and sleeping in Red Roof Inns to keep costs down, they still lose money every time they tour.

  229. legal music sharing by digtl88 · · Score: 1

    I think it is great that people are trying to create different ways to stop piracy. It is about time. Others should try and come up with other creative ideas.

  230. Think Stocks by Vagary · · Score: 1

    Stocks are routinely bought and sold without any attempt to transfer their physical manifestation. The paper stock is a representation of the abstraction that is the share just as a CD is a representation of the abstraction that is the information.

    This is why it makes no difference for an album I own whether I rip the MP3s myself or download copies somebody else made: since I own the information it is insignificant whether I access the original storage medium or a indistinguishable copy of it.

    With stocks you can, if you really want to, get the dead tree. I see no reason why this system couldn't act the same way: if you purchase a CD, you can ask the company to smail it to you rather than hold it on your behalf. Of course you'll have to mail it back if you want to sell it.

  231. Re: Still trying to replicate the recording indust by Anonymous Coward · · Score: 0

    While eliminating the need for the recording industry going forward is by far the best case scenario for musicians and consumers, it still leaves the back catalogs in the hands of the corporations.

    Maybe someone with a better understanding of the differences between catalog rights, recording rights and publishing rights can come up with a way around this stranglehold on archive recordings aside from the artists paying an enormous ransom to get ownership of their own catalogs.

    A musician may be able to re-record their songs or sell new, live albums without infringing on the back catalog rights, but I'm no lawyer.

    If I'm remembering correctly, Prince re-recorded his "1999" song for the new millenium, since he wasn't going to see any money from his former record company's re-issues.

  232. Re:one word: my.mp3.com by blink3478 · · Score: 1


    Well hell, why not just buy the cds retail ($14), rip the cd to mp3, and then sell the used cd (in near-mint condition) on ebay ($10).

    I assume that's completely legal - you bought the cd, you're not sharing anything, and you've paid $4 for your copy of the cd (which is about what it's worth).

  233. If there are 2 million outstanding shares... by phatStrat · · Score: 1

    ... do I only get to listen a 1/2,000,000th of the song? (Seriously!)

  234. Does it matter... by zipwow · · Score: 1

    Isn't the difference in your example that the scientists were employed by the company, rather than owners of the company?

    I don't think there have been cases where the 'sharers' of the work in question have been solely shareholders. If the company pays for a journal article, and determines that it will allow all shareholders to access it, is that fair use, since they are all part owners of the document?

    -Zipwow

    --
    I don't know which is more depressing, that 2/3 didn't care enough to vote, or that 1/2 of those that did are crazy.
    1. Re:Does it matter... by the_quark · · Score: 1

      I'm not aware of a specific case, but it doesn't really matter if the company is making copies of the document. If they're just keeping one and passing around the physical to one shareholder at a time, that'd probably be legal. But if a for-profit company makes complete copies of an article for anything other than reasonable backup purposes, it's presumed to be copying them for profit. When you copy something for profit you have to pay the copyright owner. It doesn't matter whether or not it's fair use for the shareholder to get the document (and, it probably isn't, but leaving that aside) as soon as the company make the copy, it's infringed the work. See the mp3.com Beam-It case for an example of a company trying to make money off of copies that would normally be fair use getting whacked.

  235. Cute, except for the charter. by zipwow · · Score: 1

    This is cute, but I think ultimately uninformed.

    As I understand it, it is the company charter that determines what shareholders have access to, and what information is strictly reserved for members of the board and their designators. There are restrictions by the SEC on public companies of course as pertains to financials, but otherwise its up to your charter.

    So, if your charter is "everything is available to all shareholders" or somesuch, then it works. I think you can bet that this isn't how the charter for RIAA members reads.

    -Zipwow

    --
    I don't know which is more depressing, that 2/3 didn't care enough to vote, or that 1/2 of those that did are crazy.
  236. Re:Different Markets (Taco Bell?) by Anonymous Coward · · Score: 0

    I'll reserve comment on the rest of your article, but are you sure about Taco Bell's pricing history?

    My first taco from them was in 1975 at East Lansing. I'm pretty sure they were under fifty cents, like 3 for a dollar (maybe even 4?). That was under market price for tacos at a regular Mexican restaurant (probably 75 cents back then). I don't think their regular tacos have ever been priced higher than 89 cents and they are still 79 cents around here.

  237. THE critical tweak to his plan by dpilot · · Score: 1

    This may be the critical tweak to his plan, put the 1-to-1 ratio back in.

    Adopt a check-out/check-in system for the CDs, as well as a loan term. You borrow a CD, perhaps even just a track, and nobody else can. The inventory system keeps track of how often requests are unfulfilled, and buys additional copies.

    How many CDs out of my library do I listen to in any given two-week interval? (small fraction) I suspect most of us are the same, and those who listen more have bigger collections, so they still hit only a small fraction.

    You don't need a copy of every Pink Floyd CD for every Pink Floyd fan in the world. Well, maybe you d, but you don't need a copy of every Pink Floyd CD for every occasional listener of Pink Floyd.

    This isn't a sink-the-RIAA, like Cringley's plan, but it's not so much a legal loophole, either. It may not even have to jump through as many corporate hoops, merely taking the mechanisms of CleanFilms.

    --
    The living have better things to do than to continue hating the dead.
  238. There is only one solution which will really work by J.+Patrick+Graves · · Score: 1

    And that is to have a decrypter embedded in everyone's ears and eyes. The music/video can then be played publicly, but only the people that PAID for valid decryption keys, encapsulated in their heads, can listen to the music or watch the video.

    For ANY audio/visual media, hardware/software can be built to read the output before it goes to the output device (speaker/screen) and record it into a unencrypted format. Virtual sound drivers or virtual moniters can record as easy as outputting to the device.

    All of the recording and movie industries' efforts to control audio/video output is mearly slowing down the inevitable - no restrictions for private, fair use.

    Of course, the other way is to arrest anyone who has private, peer-to-peer communication - which, considering the current political climate, doesn't sound too crazy.

    Cheers

  239. Not the RIAA, but BMI ASCAP SESAC etc by grundy · · Score: 1

    This is more like a public performance of a work. Which requires you get a license from the appropriate performance royalties organization. Ask any legit bar, restaraunt, disco, raidio station etc about public performance of copyrighted works, even ones they shelled out their own cash to buy. (Oh yeah, even applied to companies that play music on the pa or use hold music)

  240. somebody didn't RTFA by Anonymous Coward · · Score: 0

    sounds more like you are the bozo

  241. Copyright is not the problem, monopolies are. by jimsum · · Score: 1

    This message is getting close to what I think is the heart of this issue. Although the RIAA likes to argue that piracy is stealing, having copyright is not the same thing as owning something, and owning something is not the same as having the right to do whatever you want with it.

    Copyright is simply the legal right to make copies of a particular work. To a first approximation, no one but the copyright holder can make copies of a work. There are some exceptions (called "fair use") to ensure that copyright owners can't exploit this right unreasonably, but the intention of copyright law is to ensure that only the copyright holder can make significant numbers of copies.

    I don't think that part-ownership of a copy of a work gives the part-owner a right to copy that work, which is the heart of Cringely's scheme. It might be legal now, but this is just too big a loophole to let stand, no matter how you feel about the RIAA. If this loophole were allowed to stand, copyrights would be useless and the whole copyright law (which truly has been a net benefit to society) might as well be struck from the books.

    Now, that being said, I'd love to see some sort of attempt to rein in the record companies. They have extended their monopoly on copying into a monopoly in distribution. The law recognizes that monopolies in one area can be used to create monopolies in other areas, and restricts the action of monopolies accordingly; why wasn't that done for copyright holders? Now, with the DMCA and the example of what the studios could get away with on DVD's (e.g. prevention of any kind of copying, even legal "fair-use" copying; control over where you can buy DVD's that will work in your player; control over such details as when you are able to use the fast-forward or pause buttons on your DVD player), there is every indication that the record companies will extend their monopoly on making copies to control how and when you can play music.

    I'd love to see the distribution monopoly broken, so that the fear of competition can force record companies to consider consumers (and artists) rather than simply what they think is best for the bottom line. If record companies did not have the sole right to determine what music is available for purchase and in which format, artists might have some leverage to negotiate a better deal, and consumers might have a better change of buying the music they want in the format they want.

    There might be a solution that allows artists to get paid and for consumers to have some control over how they may use the music they buy, even if Cringely's suggestion (to effectively repeal copyright laws) isn't it. However, unless the monopoly that record companies have is ended, we are not going to see any changes except those that make it better for those companies and worse for the artists and consumers.

    --
    -- Pot is safer than Beer
  242. Huh? by M.C.+Hampster · · Score: 1

    Dude, I want some of whatever you are having.

    --
    Forget the whales - save the babies.
    1. Re:Huh? by Thing+1 · · Score: 1
      No problem, it's (mostly) free! ;-)

      I first read Engines of Creation about 10 years ago (it was published in 1986, and you can read it online, or download it for free, at the above link).

      A few years later Drexler published Unbounding the Future which is also available on-line.

      In 1995, Ed Regis wrote the book Nano which is not available on-line, but was a much better introduction to the technology and ideas behind it, geared toward the layman. (Read some of the user comments at Amazon.)

      The technology is inevitable; if we ban it, then it will be created in (and controlled by!) other countries. So we must develop it, and we must develop it first, because there are plenty of issues with misuse (diseases targeted to a certain skin/hair/eye color, nationality, etc.), terrorism, and world destruction (the "gray goo" problem).

      Eric Drexler and his wife Christine Peterson created the Foresight Institute which promotes nanotechnology policy and research, and Chris is also very big on open source as a way to disseminate nano. This is where I got most of the grandfather post from, her ideas on merging our current model with an open-source-based model.

      There is also a Slashcode-based site for discussion of nanotechnology at Nanodot.org.

      I realize you were joking, but this state of mind is brought on by something more powerful than recreational substances: ideas.

      --
      I feel fantastic, and I'm still alive.
  243. Re:one word: my.mp3.com by finkployd · · Score: 1

    I would assume (IANAL) that once you sell your CD you lose the fair use rights that go with it, and could no longer legally have mp3s from it.

    Finkployd

  244. This really doesn't make sense to me... by M.C.+Hampster · · Score: 1

    IANAL, but since when does a shareholder have a right to a copy of a copyrighted work that the corporation has purchased? I may own stock in a Company A, but that doesn't mean that it is legal for Company A to make copies of software or other copyrighted content to give out to me.

    This sounds really goofy to me. Is there a real lawyer in the house that can give further clarification?

    --
    Forget the whales - save the babies.
  245. Overlooking something with this idea.... by unicorn · · Score: 1

    That it's already in place. More or less.

    Anyone that wants to, is 100% at liberty to record what they like, distribute it this way, tour how they like, etc. Right now. Absolutely nothing stands in their way.

    The reason that artists sign with labels, is for the marketing support. At least that's a huge driver.

    Just because you can envision an alternate model, doesn't mean that anyone is obligated to subscribe to it.

    --
    "Politicians are interested in people. Not that this is always a virtue. Fleas are interested in dogs." P.J. O'Rourke
  246. Way optimistic by unicorn · · Score: 1

    Just because it's possible to create a music industry that's utterly devoid of marketing, doesn't mean that it's ever going to happen.

    And as long as there's marketing, there will be "middlemen" to facilitate it.

    --
    "Politicians are interested in people. Not that this is always a virtue. Fleas are interested in dogs." P.J. O'Rourke
  247. Re:Best Article Ever ( a different proposal) by the_quark · · Score: 1

    Yeah, we did have the express permission of the copyright holders, but we were always looking at new business ideas. Also, we needed to understand exactly what we were allowed to do under the law because our company was designed from the getgo to stake out the maximum area possible under the law.

    So, for example, we didn't set up interactive streaming services because that gets you into a different section of the law and the payments you have to make are different. We negotiated our content contracts to focus on the downloadable market, but in order to do that we had to understand the law very well. We didn't want to pay for rights we knew we weren't going to use because the law made them unprofitable, anyway.

    As another example, I had the "Beam It" idea before mp3.com released theirs (although I think they were already working on it). But when I brought it to our copyright expert, he quickly persuaded me it'd be illegal and we didn't do it.

    So, I spent a lot of time brainstorming with the other execs at the company, trying to figure out exactly the maximum services we could provide given the scope of the law. It was an interesting puzzle, although I can't say I miss always wondering if you're about to break the law very much.

  248. Profit isn't the issue. by zipwow · · Score: 1

    Actually, whether you profit from it or not doesn't have any bearing on the legal implications. It may have a goodwill impact on the willingness of the infringed to sue, but from a legal standpoint, it doesn't matter. Making copies and giving them away is just as illegal as making copies and selling them.

    The question, I think, is how fair use applies in this joint-ownership scenario. Can something in joint ownership be copied in order to be distributed to all its owners? As far as I know, this is legally untested. All the cases I've seen quoted on /. have been about either customers (quite irrelevant) or agents of the company (employees), not about shareholders themselves.

    For example, Mp3.com beam-it doesn't apply, because the people involved aren't shareholders. The Xerox or whatever landmark case doesn't apply because the people involved were employees (scientists), and did not own the documents. In this case, the people involved own the licenses in question. This isn't like MS software licenses, because (assuming for a moment the EULA is enforceable) the license specifically states that it is only able to be used on a single computer. There are no such stipulations on music CDs.

    Mp3.com failed in court not because they were trying to make money from copies (though you could argue that that's the real motivation behind the RIAA lawsuit), they lost in court because they created an illegal public database of music. Which is bunk, in my opinion, but they didn't ask me.

    -Zipwow

    --
    I don't know which is more depressing, that 2/3 didn't care enough to vote, or that 1/2 of those that did are crazy.
    1. Re:Profit isn't the issue. by troyboy · · Score: 1

      Under the fair use analysis, whether the alleged infringer makes copies in order to profit is an important factor.

    2. Re:Profit isn't the issue. by the_quark · · Score: 1

      For example, Mp3.com beam-it doesn't apply, because the people involved aren't shareholders.

      It doesn't matter who the copies are for, or whether the copies themselves would be fair use (they wouldn't be, in this case, either, but let's leave this aside for the moment). Basically anything a for-profit company does is presumed to be for profit. And when you copy a whole song for profit, according to the law, you have to get a license.

      Mp3.com failed in court not because they were trying to make money from copies (though you could argue that that's the real motivation behind the RIAA lawsuit), they lost in court because they created an illegal public database of music.

      This is closer to the truth than most assertions about the mp3.com case. But they got slapped with making copies for their gain. Fair use law pretty plainly shows, if you make the copies for your gain, it's not fair use. Even if the copies for mp3.com's subscribers or this company's shareholders would, of themselves, be fair use, as soon as the company makes those copies for its profit, it's not a fair use copy by the company. Judge Rakoff spends much of his opinion on the question of whether mp3.com's copies were fair use, as they asserted. He says, on the commercial test, "defendant does not dispute that its purpose is commercial," and, on the question whether it would harm the copyright holders' ability to future license their works, "defendant's activities on their face invade plaintiffs' statutory right to license their copyrighted sound recordings to others for reproduction." Both of these conclusions are clearly true about Mr. Cringley's company, even if the shareholders have a right to make 60 million "fair use" copies of a CD (which I'd assert they don't, but I don't have specific case law to back me up).

  249. Re:Best Article Ever ( a different proposal) by Lt+Razak · · Score: 1
    So, I spent a lot of time brainstorming with the other execs at the company, trying to figure out exactly the maximum services we could provide

    Which in the end, ended up being nothing, right?

    Not to be a jerk, but it looks like the only service eMusic ever came up with, is what they started with: full downloads from labels willing to have you do just that. Leaving the company with just swaying more lables to join this business plan.

    I'm glad to see the re-encoding of the mp3's as LAME -aps. Hope they finish the full inventory.

  250. Re:Best Article Ever ( a different proposal) by the_quark · · Score: 1

    Well, full disclosure, I haven't been with them in over a year and can't claim to have kept up too much with the details of what they're offering, now.

    I'd say the big innovation we did was switching from $.99/track to the subscription model in 2000. We had a number of ideas for feature enhancements we could do after that. We wanted to provide the functionality of an interactive streaming service but provided by DPDs to fit within our licenses, for example, and had a lot of cool ideas for client/server integration that I think you're starting to see Apple actually implement. Unfortunately, after we were purchased in 2001, a combination of uncertainty and then a move the mp3.com technical platform kept us from implementing most of that while I was there. Just because we didn't have the resources to get it done didn't mean we weren't thinking about it.

    Don't know what their plans are, now, moving forward, but I wish them luck.

    I certainly agree with you on the reencode, though. LAME is a lot better than what we were originally using.

  251. Re:Yep that'll work... For about three seconds. by Nurgled · · Score: 1

    I personally would still buy your book because I prefer reading from a small, portable bundle of paper than an expensive, fragile light source.

    I would also still be willing to pay to see a movie at a cinema because I don't watch sufficient films to justify envesting in a large screen and sound system for my home, and prefer the emmersion a cinema offers.

    Sure, some people would shun these benefits in order to save a few bucks, reading their books on their laptops/PDAs and watching movies on a computer screen with peedy little speakers, but there would still be money to be made.

    This won't work with copyright completely removed, since the creator of the content would not make any money when a publisher prints and sells copies of a book. You won't be able to afford to track down and sue the people who distribute your works electronically, but you can still sue a publisher who tries to sell your book en masse without buying a licence to do so from you.

    I guess my point is that, even with a few people distributing your content for free, there will always be money to be made because in general people are willing to pay to enhance their experience of your work. You could also sell your work online for a tiny amount of money for anyone who doesn't care about paper or cinemas but wants to give you some money.

  252. brought to you by... by bucktug · · Score: 1

    This Slashdot posting is brought to you by the letter U and the Number 2... With a grant from the Caranagie foundation.
    Even if this were possible there would be more albums that have the Fund Raiser in the middle of a song... and with that... I couldn't really live like that...
    I am really okay with paying a few bucks to PBS every year or so... I do love Red Green. However... if you are just ripping people off (not that we are not being ripped off the otherway) make sure atleast the band is getting their piece of the action.
    Oh yeah Negitivland probably has some copywrite on the first part of this message... but I will site fair use.
    --Turvey

    --
    I had a flame... but she had a fire.
  253. Re:Yep that'll work... For about three seconds. by meta-monkey · · Score: 1

    Ah...but if there's no copyright, there's no reason that I'm the only one who can put my novel on dead tree. I spend all the time and energy creating my novel, print a bunch of copies, and start selling them. Somebody buys one, scans it, proof reads it so it's exactly the same as what I'm selling, and prints and sells it himself. Maybe he's got better cover art and distribution. He sells the books for $1, maybe, in massive volume. How am I going to compete?

    Same thing with a movie. Theatres are going digital these days. Take whatever digital medium it is the film is distributed on, buy one, then copy it, sell it to other movie theatres, and show it in your own theatre.

    That's not cool. The artist should have the exclusive right to sell copies of his work for a limited period of time, so that he can profit from it.

    --
    We don't have a state-run media we have a media-run state.
  254. ...Another Approach, buy their stock! by Anonymous Coward · · Score: 0

    On the right track, but why not sell a package that offered ONE share of stock in the RIAA member labels? Since the owner of the stock package (YOU) own a share of say, Electra, you are a part owner of the company, and as owner of the "copyright" to say Metallica(sh)'s music, you would theoretically have the right to either download OR upload ANY Metalligreed tune. IANAL, but it at leasts sounds like a sneaky way to get around their legalege bullshit?

  255. Good point, but... by Xebikr · · Score: 1

    I think that is a good idea, and you wouldn't even need to raise the rates. This would only work, though, if the artists were "Snapster Exclusives". If they go with someone other than Snapster, then Snapster pays $20 for their cd and then makes it available to everyone. If they become a "Snapster Exclusive" then Snapster offers a percentage of the download fee on sliding scale. Say: 20% right off and increasing to 50% as downloads increase.

    1. Re:Good point, but... by Gonarat · · Score: 1

      That might work to help build "brand awareness", but I still think for this to work long term, the artists need to get at least as much per song or album as they would get from a RIAA contract, preferably more. So, sticking with $0.10 per song and $1.00 per album and using your percentages, a Snapster exclusive would get $0.02 to $0.05 per song / $0.20 to $0.50 per album.

      I propose giving every artist (Snapster Exclusive or not) their $0.05 per song/$0.50 per album, then applying your percentages against the remaining 50%.

      This means a band who wants nothing to do with Snapster would get $0.05 per song and Snapster would keep the same. A band that signs on as a "Snapster Exclusive" would get (to start) $0.06 per song ($0.05 + 20% of the other $0.05) and Snapster would keep $0.04. A "Snapster Exclusive" big seller or "hit" could get as much as $0.075 ( $0.05 + 50% of the other $0.05) per song and Snapster would keep $0.025. The math would work the same for Albums.

      The percentages and download levels would have to be worked out, but the important thing is the artist is always paid, so Snapster could not be accused of destroying the music community (notice I did not say Industry).

      --
      Beware of Sleestak
    2. Re:Good point, but... by mikewolf · · Score: 0

      IANAL, but the problem is if you start giving artists a percentage of the profits from downloading AND you are using the cd-shareholders-fair-use loophole, then you are acknowledging that the artist has a right to the copy and make your business model implicitly illegal (unless you set up some kind of different licensing agreement than what is normally given to a cd owner).

      the Snapster Exclusives would work, though, b/c you would set up some other kind of licensing agreement with the artist, and not rely on the fair-use argument...

  256. Re:Best Article Ever ( a different proposal) by Lt+Razak · · Score: 1
    Thanks, I just wanted to make sure I didn't miss anything -- a lot of great ideas, never allowed to be implemented.

    I agree that the biggest innovation was a subscription model. (Not technically, but psychologically) I don't know how many would have signed up otherwise. I bet it was HELL trying to convince labels to go with it, though. After all, you think of extreme: Unlimited downloads. I found out, however, that I eventually procrastinated my downloads....since... I would always "be able" to download it "later". And never ended up downloading 4 zillion albums like I imagined I would.

    Do you have any statistics of any extreme downloaders? Anyone you monitored?

  257. Just curious by Whorbbit · · Score: 1

    I don't suppose anyone here would know how much an album would cost if I didn't want it on a cd/tape or in a fancy case with cover art? I would assume it would be cheaper... the question is how much? It would cut people out of the sale, but really, how much do you suppose a band and their label and what not would charge for just a copy of their songs from an album?

  258. Re:Yep that'll work... For about three seconds. by Nurgled · · Score: 1

    I did say my reasoning depends on copyright to still exist. I was merely trying to put forth the idea that although some people will inevitably get the product for free, there will always be people who are willing to pay in order to improve their experience of the product.

    You can't sue every kid who shares your book on Kazaa, but you can sue someone who attempts to publish and sell your book en-masse without a licence... and if they don't do it en-masse, it will probably cost them so much that they won't be able to compete with your mass-produced printed copies anyway.

  259. Cost-sharing by TheRevenant · · Score: 1

    One of the big problems with the internet for content provider is that all the costs fall onto the content provider's head, and they scale to the number of users.

    While P2P increases overall bandwidth usage (and hence costs), it also distributes it amongst users so that the individual hit is neglible.

    IMO, _this_ is the massive potential benefit of P2P, It will allow anyone who wants to to provide content - not just those who can afford the bandwidth.

    Of course, for P2P to serve that purpose, the interface has to be considerably more sophisticated than existing gnutella clients'. Freenet is a step in the right direction.

    1. Re:Cost-sharing by the_quark · · Score: 1

      That's a good point - P2P is also good for legitimate content that is very large and no one wants to pay to distribute.

  260. Get ready for the $800 cd. by theBigEgo · · Score: 1

    Sounds like if this happens, the Recording Industry will start selling cds for massive amounts of money to account for communal ownership of the cds. Kind of like what software companies do.

  261. umm, Apple already did this folks by Anonymous Coward · · Score: 0

    what's next from that idiot? a story on an easy to use, Unix based OS to challenge the Windows monopoly?

    he is really up with the times.

  262. Use Sealand? by Anonymous Coward · · Score: 0

    How about using Sealand for your data center, go for low margin at high quantities ( say $1 per album ) and keep as low a profile in USA or whatever your home country is as possible?

  263. Your message.. by Snaller · · Score: 1

    ...just points out how sick and greedy copyright is. Good riddance.

    --
    If Google really cared they would fix Android Chrome to reflow text, instead of discriminating
  264. Re:There is only one solution which will really wo by cifey · · Score: 1

    I think this signal can be tapped from the acoustic nerves. You'll have to dig a little deeper.

    --
    Hello Cruel World
  265. Whole approach flawed - OVERKILL by Cynic+1.0 · · Score: 0

    His approach is *way* too complicated. If there has to be legal way of music distribution, which takes care of the musician then it has to be simple. Think iTunes. Low prices, good music selection, ability to copy vs. BuyMusic's horrendous strategy to treat people like idiots and make them jump through hoops for their entertainment. Who's going to manage Snapster 2? Negotiate fair pricing with the record labels/artists? All this will require infrastructure and people to manage the distribution channel. Those people will need to be paid and held accountable. Is there going to be just one Snapster Inc. or a hundred? How do you pick one? This is like using a sledgehammer to drive in a nail. This can never be the answer.