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RIAA Supporting Commercial P2P
cgibby98 writes "The AP reports: 'In the last few months, major record labels have signed licensing deals with companies working to field file-swapping services that would block unauthorized files from being traded online.' Most interesting is a service called Peer Impact, which 'can be used to find and purchase tracks from an initial catalog of a half-million songs from all the major labels.... After a user buys a song from Peer Impact, future buyers get it from that member -- or others who have gotten it in the meantime -- instead of from a central server. Users have to pay for each track they download, but sharing songs they've purchased from Peer Impact earns them credits they can spend on the service.'"
If the artists aren't going to get any royalties from this, then this is the RIAA committing piracy.
LOS ANGELES -- Four years after it shuttered the original Napster with a legal assault, the recording industry is taking a different approach to online file-swapping: If you can't beat 'em, join 'em.
Recording companies have begun taking steps to legitimize the peer-to-peer technology that lets computer users share songs, video and other files with one another online.
However the U.S. Supreme Court rules in a file-swapping decision expected as early as Thursday, the technology appears irrepressible.
In the last few months, major record labels have signed licensing deals with companies working to field file-swapping services that would block unauthorized files from being traded online.
"There's only two options here," said Michael Goodman, an analyst at The Yankee Group market research firm. "You either license it -- and you find a way to license it and monetize it -- or you don't license it and it gets traded anyway."
Some 330 million tracks were purchased online last year from online stores such as Apple Computer Inc.'s iTunes. But around 5 billion were downloaded from free file-sharing networks, he said.
Meanwhile, recording companies have sued 11,700 computer users for file-swapping. Of those, 2,500 cases have been settled, typically for about $3,000 each.
The Supreme Court is considering whether companies behind unrestricted file-sharing services -- Grokster and Morpheus -- should be liable for copyright infringement. The case's outcome could speed the way for licensed peer-to-peer services.
Even so, it remains to be seen whether those industry-endorsed alternatives can attract people who now tap open file-swapping networks using such programs as eDonkey, BitTorrent and Kazaa.
"When it comes down to it, why is somebody going to pay for something they can get for free?" said Mac Padilla, 21, a student who lives in Los Angeles.
The industry may know the answer at least in part as early as next month, when Peer Impact, one of the licensed file-swapping services, is slated to launch.
Its software can be used to find and purchase tracks from an initial catalog of a half-million songs from all the major labels, said Gregory Kerber, head of Saratoga Springs, N.Y.-based Wurld Media Inc., the firm behind the service.
After a user buys a song from Peer Impact, future buyers get it from that member -- or others who have gotten it in the meantime -- instead of from a central server. Users have to pay for each track they download, but sharing songs they've purchased from Peer Impact earns them credits they can spend on the service.
At launch, at least, Peer Impact will not let users share songs from their own collections.
Another company to sign licensing deals with major and independent record labels is Snocap Inc., which was founded by Napster creator Shawn Fanning.
The company's software is designed to track songs being swapped online and notify record labels when someone tries to share a song that hasn't been licensed for free distribution. Snocap also has a deal with file-sharing software maker Mashboxx to block unlicensed tracks from moving through its network.
Mashboxx is set to launch a beta test version next month, said Wayne Rosso, chief executive for the Virginia Beach, Va.-based company. Rosso, who once headed the company behind the Grokster file-swapping software, says Mashboxx users will be able to search for tracks across peer-to-peer networks, upload them and share those that are not restricted by record labels using Snocap's software.
Through Snocap, the labels will be able to assign usage rules for each track, deciding whether users on Mashboxx or other peer-to-peer networks can listen to a track a few times before they must purchase it, what sort of copy restrictions each file will have, or whether it is michael's or cowbowneal's turn for taco's backside, for example.
Rosso cla
OK.
... After a user buys a song from Peer Impact, future buyers get it from that member -- or others who have gotten it in the meantime -- instead of from a central server. Users have to pay for each track they download, but sharing songs they've purchased from Peer Impact earns them credits they can spend on the service.'"
Now read on, you're almost there:
Get it?
This service's restrictions will keep it from being a major player, and until the RIAA gets it that no one will change until they open up their restrictions, piracy will always be huge, and the one music store that supports the most popular player will remain the most popular option (and only option for many) for purchasing legal music.
This market needs competition! Be creative, RIAA!
I'd rather be cycling.
Peer Impact users can earn up to 10% of the price of shared tracks by becoming "NoiseMakers", music activists who pester others in chat rooms, email, message board postings, etc.
From the FAQ (bolding mine, of course):
...
Q: Will Peer Impact work from behind a firewall?
A: If your PC is protected by a firewall, you can still act as a source of content to other users and earn Peer Cash. However, PCs seen as firewalls can only act as a source to non-firewalled users, never to other firewalled PCs. Therefore, to MAXIMIZE YOUR EARNING POTENTIAL, you should really make an effort to open your firewall. To determine whether you are seen as a firewalled user or not, go to "Preferences" under the Tools menu. Choose the "Transfers" option; the last item listed says "Behind Firewall". If this says "Yes", you should open your firewall so that you may be used as a source by other firewalled PCs.
MrRogers(2)
If you decide you don't actually want more music, you don't need to give them bandwidth. Likewise, if you do, but it just isn't worth giving up some of your precious bandwidth for cheaper music, you don't need to either.
It doesn't sound like a bad deal to me, especially if you can earn your credits by leaving your client open when you're asleep and at work.
You are not alone. This is not normal. None of this is normal.
To clarify, Peer Impact isn't owned or operated by the RIAA; they only licensed the music. At that, they are also trying to sign independent artists/labels.
I joined when they first opened up the beta and spent some time on the chat room they used to have (it used Jabber[!]). The engineers were in there and happy to discuss the technology or answer any questions.
As far as downloading and sharing, you can only share files that originally came from their servers. When someone purchases a song, the Peer Impact server chooses the clients to download from based on bandwidth, proximity, etc. When someone downloads from you, your earnings are based on how much you contributed to the download. To note, all downloads are priced the same regardless of the size.
I stopped using it after I spent my free money and moved behind a firewall. I usually made $0.01-$0.05 each time someone downloaded part of a song from me. It took a few weeks for me to make the $0.99 for a free download, but your mileage will vary on how many songs you're sharing, how fast your connection, your location, if you're behind a firewall, and some other stuff. It's worth trying out; at the least you get 5 free DRM'd songs.
(As accused in a later post, PI states how it isn't like an MLM here.