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Cuban Says RIAA Damages Should be $5 Per Month

Thomas Hawk writes "Mark Cuban is arguing over at Blog Maverick that with the introduction of Yahoo!'s new $5 per month music service that this needs to become the new de facto 'damages' that the RIAA ought to be able to claim when suing kids. After all, when the kids could have paid for the music via Yahoo! for $5 a month it makes it hard to say the music loss is worth more than that. 'The RIAA can no longer claim that students who are downloading music are costing them thousands of dollars each. They cant claim much of anything actually. In essence, Yahoo just turned possession of a controlled music substance into a misdemeanor. Payable by a $5 per month fine.'"

29 of 693 comments (clear)

  1. Upload, not download by DustMagnet · · Score: 5, Insightful

    The RIAA doesn't sue downloaders. They sue people who upload music. Yes I know, some programs upload what you download by default, but that change what they sue people for. You can't get the right to upload music for $5 a month. Even if you could, the RIAA can always sue for statutory damages, which are a lot higher than $5 a month even for downloading.

    --
    'SBEMAIL!' is better than a goat!!
    1. Re:Upload, not download by lukewarmfusion · · Score: 4, Insightful

      That's generally just because of the technology. First, it's possible to make a fair use defense based on your ownership of the CD or DVD. Second, uploading appears to be a bigger violation simply because you could be uploading to hundreds of people.

      It cracks me up that you can get a small fine or few days in jail for shoplifting a CD, but downloading that same album online (with inferior quality!) can net you years of prison time and hundreds of thousands in fines!

    2. Re:Upload, not download by ATMAvatar · · Score: 3, Insightful

      Which would you be more concerned about if you're heavily investing large quantities of money into funding the creation, recording, and promotion of music?

      ...and monopolizing all avenues of distribution, making sure that any artist who wants to have their music heard must go through one of the record labels.

      --
      "They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety."
    3. Re:Upload, not download by ThePromenader · · Score: 3, Insightful

      Yes, that tax exists in Canada and here in France as well. But the money goes to... some vague music industry organisation. I want to archive my digital photos, or make a backup of my system, and the music industry gets money? Um, right. It's the quality of the music (as in bitrate) that should be the dividing line between misdimeanor or... nothing. As far as I'm concerned having a 128k mp3 of a song you didn't buy isn't piracy. Having 480kb VBR is. Burning it and selling it, worse. Clear, non? I wrote a lengthy rant about it here before. it's in my journal if you like, I'll spare you my getting "into" it all over again.

      --

      No, no sig. Really.

      ThePromenader
    4. Re:Upload, not download by jfengel · · Score: 3, Insightful

      Mostly that your public playing on a boombox is a transitory event. You play it, it's over. A perfect copy of an MP3 is forever.

      That's what they have to sell: the ability to hear the songs whenever you want. That used to be a working business model, since not many people owned the ability to make reasonable copies.

      Now that they do, it sounds like they have two choices. They can either ask people to play by the expected rules of their old business model, before the technology changed out from under them, or they can make a new business model.

      If it is your right to buy a CD and then make perfect copies for the entire world, they'll just have to raise the price of that CD. Say, a few hundred thousand dollars. Fine with them. As long as they sell a copy or two, they're making the same money.

      Probably just one, to some guy who'll share it with everybody else. But he'll probably try to make back his investment, so he'll probably charge you. And he'll probably put some DRM on it. The guy's name is Steve Jobs.

      Of course you'd be welcome to buy a copy, too, and kick that Jobs guy in the butt. How many CDs fit in your CD budget?

    5. Re:Upload, not download by maraist · · Score: 4, Insightful

      I think it's a little bit of both of you being right. I agree with you that you can take an independent path; the parent is technically incorrect since the RIAA or whatever doesn't have a monopoly.. But that's like saying MS didn't have a monopoly in the late 90's.. Yes there was DR DOS and Linux and SCO UNIX, and OS/2. But they were like 1% of the market.

      Likewise, I'm sure the indi venue is an insignificant portion of the audience market but I have no numbers to back me up.

      The music radio is mostly clear-channel. I'm sure Satalite radio is clear-channel controlled. MTV is certainly biased towards the establishment. The only large distribution you have left are sound-tracks of big-end movies. With the possible exception of indi-films that at least get a lot of spot-light, if not popularity.

      The industry has calculated methods of maximizing profit; tuning various demographics to particular sounds and focusing on particular artists of the month to build sensationalism which causes people to flock to the fad-of-the-month and thus increase revenue. To facilitate this brainwashing, they need LOTS of airtime for their target projects, and this leaves no room for anything else.. With the consolidation of media outlets, the drive to "advertise" a particular label means even less airtime for variety.

      So there IS an establishment that is trying to squash unsigned material, albeit indirectly through the reduction of avenues of distribution.

      As a disclaimer, I have no association with the musical profession.

      --
      -Michael
    6. Re:Upload, not download by shark72 · · Score: 4, Insightful

      "...and monopolizing all avenues of distribution, making sure that any artist who wants to have their music heard must go through one of the record labels."

      Of which there are thousands, or perhaps tens of thousands. Some are big and huge and are members of the RIAA. Some are small and independent yet still belong to the RIAA. Some are small and independent and cool and don't belong to the RIAA. Some, like Magnatune, are virtual. Some, like CDBaby, specialize in getting your stuff onto the legit download sites even if you're not signed to a traditional label. There's a ton of non-RIAA and unsigned music on the Apple iTunes Music Store.

      It's your music... do what you want. If you want to get the potential of mammoth exposure and sales, in exchange for a loss of control and a much smaller portion of the selling price of your music, sign a recording contract with a big label. If you want a little more control and a bigger share of the profits, but with less of a budget, go with one of the cool indie labels. If you just want a little assistance but want to do most of the promotion yourself, try Magnatune or CD Baby. If you don't think the service that any of them provide is worth it, and you're lucky enough to have the means to record, produce, and promote your work yourself, then more power to you.

      The fact is that in the record industry, just as in the software industry or a thousand other industries, nobody's going to give you a million bucks to do with as you please in creating and promoting your work, without wanting something back. Is this unfair? You bet. Can it make it tough? Of course. But this is not a "monopoly."

      --
      Sitting in my day care, the art is decopainted.
    7. Re:Upload, not download by Perl-Pusher · · Score: 4, Insightful

      Your missing the point. Uploading you can say the RIAA is out thousands of dollars because concievably you caused them a lack of sales. But downloading only denies them one, the downloader. Now the press and some juries may be dumb enough to award damages. But any good laywer could reduce the damages to sale price and a penalty fine.

    8. Re:Upload, not download by aralin · · Score: 4, Insightful
      Is this unfair? You bet. Can it make it tough? Of course. But this is not a "monopoly."

      Yeah, its a "cartel".

      --
      If programs would be read like poetry, most programmers would be Vogons.
    9. Re:Upload, not download by fucksl4shd0t · · Score: 3, Insightful
      You guys are all missing the point.

      In order for the RIAA to go after *downloaders*, they'd have to *upload* to the downloaders. That makes their case something more like entrapment, I'll let a lawyer chime in with the specific term. Basically, how could the RIAA sue someone for downloading from them? Didn't they give permission to download when they posted it for upload?

      I think that would undermine their case and a good lawyer could get it thrown out on that.

      So instead they go after uploaders, because all they need to do for that is take their hacked client, connect to the network, search for the artist they've chosen to protect, then run a script that browses all the users and identifies the largest repositories, then crawl those repositories, take the IP address to the court for the subpoena, and go from there.

      It's pretty obvious why they go after uploaders. :)

      --
      Like what I said? You might like my music
  2. this guy is on drugs by Blymie · · Score: 3, Insightful

    Wow.

    This guy is about as bright as a 5 watt bulb.

    It is like he does not even understand the reason that the RIAA is able to sue for thousands. The premise in court is (right or wrong) that the Music Industry is losing thousands per filesharer, for a specific reason. That is, each song available for download is being downloaded by thousands of people, and each of those downloads costs the RIAA membership the sale of a CD. Thousands of downloads * CD sale = mucho cash.

    Again, this is the premise that would be followed in court.

    Changing the price of a music from $CD_PRICE to $DOWNLOAD_YAHOO_PRICE simply means that someone making files available, would be liable for $DOWNLOAD_YAHOO_PRICE now. In other words, $num_of_users_downloading * $DOWNLOAD_YAHOO_PRICE.

    How is this ruining the RIAA in court? It only reduces the amount of damages per COUNT of people downloading.. that's all....

    Put another way, the RIAA is not suing because you did not buy music. It is not suing the people that downloaded music. It is suing the people that _shared_ music, and setting the price accordingly.

    Again, right or wrong, that's what happening. It's almost like this guy thinks people are being sued for downloading. They aren't. If they were, the RIAA could only sue for what they had lost in revenue, and that would be the cost of the songs the sued downloaded.

    No, they sue from a much bigger angle. They sue with the claim that file sharers have cost them thousands of CD sales...

    1. Re:this guy is on drugs by Bamafan77 · · Score: 4, Insightful
      Well, Cuban specifically only refers to what he calls "possession of a controlled music substance" , which presumably is different from dealing a controlled music substance. In the former, he's right. And since the former is the only thing he refers, I guess you could just say that he's right.

      There's going to be some people who interpret the content of the blog the same as you and come to your conclusion. There will be others who intrepret the blog the same as you, and come to the opposite conclusion. But in the end, you both will be basing your opinions on bad data. He's effectively repositioned the argument right under your noses, and you and many other highly rated posters are all a-buzz...over nothing.

      Politicians use subtle tactics like these to confuse us poor proles all the time. I can see how the guy became a billionaire now. What's a cynic to do in a world like this? :)

  3. That doesn't compute. by k96822 · · Score: 5, Insightful

    That is like saying the most a person can be fined for stealing a shirt from WalMart is the price of the shirt.

    1. Re:That doesn't compute. by benjamindees · · Score: 5, Insightful

      Actually the logic is completely correct. But you're confusing "fines", which are the result of criminal prosecution, with "damages", which are the result of civil suit.

      Damages are usually limited to "actual" losses, which is exactly "the price of the shirt". Fines can be much more, but they're exacted by government, not industry cabals (see Blockbuster).

      --
      "I assumed blithely that there were no elves out there in the darkness"
  4. Well, sort of. by SocialEngineer · · Score: 4, Insightful

    The main people the RIAA are going after are the SHARERS - the people who have hundreds, dare I saw thousands of songs in their shared folder, and are on a high-speed connection. 5 dollars per month per each individual person who downloaded from that one person is probably a little more what the RIAA would be after, if they had to affix something like that to the cost.

    --
    "Better to be vulgar than non-existent" -Bev Henson
  5. Re:RIAA by AKAImBatman · · Score: 4, Insightful

    It's called "punative" damages. That money is intended to deter people from the act of theft. (Similar to the fines charged to speeders.) If punative fines didn't exist, then someone might figure that they would only have to pay for stuff that they were caught stealing.

  6. I agree by ZosX · · Score: 3, Insightful

    There should be caps on this sort of thing anyways. Remember the kid who made a search engine for his University and when the RIAA found out that people were using it to search other people's shares for MP3s they sued the kid for $10,000 which he paid out of pocket from his college fund. Fortunately for him he has since recovered his money thanks to an internet fund raising drive, but $10,000 is an awful lot to sue for when someone has not caused you any sort of monetary damages directly. I could only imagine the world of hurt the poor kid would be in if he didn't have the funds to just simply settle.

    This is chilling precedent. What's to stop the RIAA from one day hacking into my machines and finding some MP3s (actually, they will find a LOT) and deciding that I am distributing them or that I do not legally own all of them? Can I afford to pay some schmuck lawyer to help me defend myself against this tirade? I can't, as I am unemployed currently. Could I afford a $10,000 "fine"? Probably not. People put other people's lives at risk with drunk driving, but when they are caught, they face only a $3,000 fine here in good ole Pennsyltucky. Aparantly putting the lives of people in danger is only worth $3000 to the state, while saying that stealing some music from a corporation that owes a multitude of its artists money and does its best not to pay is ludicrous is worth $10,000 is totally ludicrous.

    The government doesn't need to get involved in this sham either. Hasn't anyone read the news? Record sales have been up. I guess the piss poor economy has had a lot more to do with sales driving down than some college kids who wouldn't have bought the freaking album new anyways.

    For the record, 90% of the albums I've ever bought were from the used bin. It would be safe to say that I never supported the artists in the first place. KRS-One has this great line about how "if you downloaded the album, come to the show." I'm sure he makes a lot more from ticket sales at shows than he does from his albums. Maybe more people need to get out and see shows and maybe more shows need to start costing less than $50 a seat!

    Is Dave Matthews really worth $100 to go see with your girlfriend? (assuming one has one here)

  7. Re:The world is geting smaller... by xiando · · Score: 4, Insightful

    Actually, buying music from allofmp3 may equal stealing, depending on what country you are in. The fact that you are paying a Russian company money does not make it legal to download the songs from countries ruled by plutocracies (like the USA). If the download service you are using does not have the proper right to sell citizens of your country the music then you might as well be downloading it from any common peer to peer service.

  8. Neat... by geoffspear · · Score: 5, Insightful

    Can I set up a new cable network that broadcasts all of the Maverick's games if I pay them the cost of a season ticket? Sounds fair to me.

    --
    Don't blame me; I'm never given mod points.
  9. No one knows if the RIAA really has a case by Nom+du+Keyboard · · Score: 3, Insightful
    No one knows if the RIAA really has a case...

    ...until they win a judgement in court that stands up under appeal.

    Until then it's all threats and scares.

    --
    "It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
  10. Rental vs. Ownership by treerex · · Score: 4, Insightful

    The argument doesn't hold up.

    These pay-per-month services are rentals: you stop paying and you no longer have access to the music (though I suppose its only a matter of time, if it hasn't happened already, before someone cracks the DRM in these rental services). With iTMS you own the track you've paid US$0.99 for. It's yours.

    People forget this, or don't think about it. Hilary Rosen's recent drivel makes the same mistake when she complains about iTMS lockin while saying how great Rhapsody or Napster or Yahoo! or whatever is. Of course, you're locked into those too. Anyway.

  11. The RIAA doesn't compute either by WebCowboy · · Score: 4, Insightful

    If RIAA ran Walmart it wouldn't have shoplifters prosecuted for theft, it would launch ridiculous civil suits against them.

    If you stole a shirt from RIAA's Walmart, it would sue you $14.95 in loss/damages plus $1.5 million for pain, suffering, legal costs, etc.

    I agree that Cuban's logic is flawed, but I might amend the argument. RIAA has tried to sue for silly amounts, somewhere along the lines of $2500 per song. I believe that the defendant could argue that since there is a legal $5/month service from Yahoo that a more resonable assessment would be $5 * number of months known to offend * a reasonable estimate of the number of people who got songs from your PC in a given month. It is that last factor that is different from Cuban's argument--unfortunately what a reasonable estimate is debatable.

    So instead of these dumb multi-million lawsuits against teenage girls and grandparents that do nothing but make bad PR and settlemsnt at a small fraction of the original amount you'd do something like this:

    $5 * 6 months * 500 USERS (not songs) uploaded to in a given month is...$15000. I'd bet that in most cases it is much less than 500 unique users who get all or part of a file from your machine when logged into P2P. In any case $15K is mcuh less ridiculous than millions but still enough to remind the offenders that it is wrong.

    BTW, comapring copyright infringement to shoplifting isn't really accurate either because despite what RIAA says, violating copyright is NOT THEFT. When you steal a shirt you are denying the victim the use of said shirt. When you download music the artist (or more likely the publisher) still owns the rights and paying customers can still hear the music. Just to make it clear...

    DOWNLOADING MUSIC IS *NEVER* STEALING...

    HOWEVER...it IS violationg copyright... AND VIOLATING COPYRIGHT IS ALSO WRONG.

    The problem is that RIAA et al want to prosecute people for copyright infringement much more harshly than deserved--more than what some people get for things like theft, assault and rape. A reality check is required for people all around.

  12. I don't think he looking at the bigger by Enrique1218 · · Score: 3, Insightful

    I am not defending the RIAA or their actions. I do believe people have the right to make off their ideas and thus, I respect copyright. I believe the technology grew too fast and majority of consumers haven't related to the ethical problem yet. Thus, I believe the proper response should be education first then punitive action. However, with punitive action, $5 for every month of infraction is too low. With P2P and torrent, the downloader becomes the uploader. With desktops and always-on broadband, these programs could run for days at a time. Take a one person with 600 pirated songs, he has $600 worth of music. If a hundred people download just %10 of his collection, he just distribute illegally $6000 worth of songs. I would guess this could happen in just a few days. Imagine, how many songs he distributes in the course of a year. Thus, $5/month is too low and would be ineffective if punitive action is being used.

    --
    You don't have to be smart to use a Mac, you just have to be smart enough to buy one
  13. Cuban is no idiot by Infonaut · · Score: 4, Insightful
    He's effectively repositioned the argument right under your noses..."

    Cuban is no idiot. He knows that the way to change things is to control the structure of the argument. The music industry has managed to paint their struggle for continued control as a fight between them and "evil music thieves," and now Cuban is reframing the argument so it revolves around the music industry's pricing policies.

    Anyone who forms their opinion about music filesharing's effect on the music industry and on creativity solely on the basis of Cuban's comments is a bit dim. But that doesn't diminish the worth of what he's doing by shifting the argument. He's using the broad reach of his blog to re-think the big picture.

    --
    Read the EFF's Fair Use FAQ
  14. Copyright Damages Are More Complex by werdna · · Score: 3, Insightful

    The argument is ok so far as it goes, but it doesn't go very far at all.

    Regrdless whether the plaintiff suffers any damages at all, and regardless whether the defendant obtains any unjust enrichment from the infringing content, a plaintiff may still elect to obtain statutory damages. The jury gets to determine the amount of statutory damages, but that determination can be no less than $750 PER WORK INFRINGED.

    This exceeds $5 per month.

  15. I disagree by AviLazar · · Score: 3, Insightful

    While I dislike the RIAA/MPAA just like the next /.'er, I wholly disagree with this story writers pricing assessment. Part of being sued and penalized for doing something bad is paying a penalty fee. For example: If a company wronged you and you were injured. You do not just sue them for your medical bills (boy does the health insurance industry wish this was the case) - you sue them for more money above and beyond.

    So while we hate the stupid prices, and the DRM's - I at least cannot say it is morally right to give the music I bought to strangers on the internet (or to download them).... As such when they sue - yes they can sue for more. I do not know how much is more valid - but $5/month is not an acceptable price.

    Though the RIAA/MPAA is suing uploaders, not downloaders.

    --

    I mod down so you can mod up. Your welcome.
  16. A new model of entertainment commerce is needed by TheNucleon · · Score: 3, Insightful

    Once audio, video or print is turned into little ones and zeroes, it becomes impossible to control. You can wrap those ones and zeroes with some DRM pixie dust, but there's always some smarty-pants who can un-DRM them again. There are those still in denial about this, like the RIAA and MPAA executives, but history has proven this out in the last decade or so. Increasingly draconian laws have a short-term effect, but only postpone the inevitable shift to a different model.

    Personally, when I get music or video, there are people I want to see paid for my privilege of enjoying the work. The writers, composers, musical artists and actors are at the top of the list, and also the professionals who capture and refine the work. Without them, there wouldn't be content to enjoy, so I want them to be paid. They need to be able to make a living.

    Currently, though, a HUGE percentage of the money lines the pockets of people who have little part in the creative process. I don't care to pay them. They are not doing me any good. In fact, they often do me harm, screening thoughtful or poignant content out of the mix because it will somehow make them less money.

    So, two problems - (1) we can't effectively control content in exchange for license fees in the digital world, and (2) we want to pay the right people and jettison the baggage. I propose that to solve these problems, a new economics of entertainment content must emerge.

    Better, more informed and creative brains than my own need to noodle on this, and we need to quit wasting time arguing about the current, doomed paradigm of entertainment commerce. Of course, thoughts like these will threaten the barons of the entertainment industry - they are slow to move, and have no vested interest in seeing things change. But the status quo can't last forever, and is already on it's last legs.

    --
    My comments are my own, and do not represent the views of my employer, my spouse, my children, or my cats.
  17. Serving, not uploading by HTH+NE1 · · Score: 3, Insightful

    It's like burning a copy a CD, destroying, the original, and saying, "This one isn't a copy, I don't have the original any more."

    Making a backup is also making a copy. Are you meaning to say that I don't have the right to use my backup if my original gets destroyed? Next you'll be saying that I can't make a backup of that backup, even after the original is destroyed.

    The symbol for copyright should be a burning candle with a cage of barbed wire around the flame, symbolizing that though you could light your candle at mine without diminishing mine's light, I'm still not going to let you copy my fire.

    --
    Oh, say does that Star-Spangled Banner entwine / The myrtle of Venus with Bacchus's vine?
  18. Re:Finding First Uploader, Counting Uploads by cpt+kangarooski · · Score: 3, Insightful

    Either direct infringement (it's often infringement even when you copy just a very small part of a work), or contributory infringement, since you're working with a lot of other people to, in sum, infringe.

    That you'd consider this kind of indicates that you're treating the law as a machine, which can be spoofed. This is a mistake; there are human beings involved, and they're often fairly smart, too. Your scheme is so very simple that it is no work at all to see through. I'd watch it with the whole pride thing.

    You may also be interested to read the essay "What Colour Are Your Bits?".

    --
    -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.