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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.'"

25 of 307 comments (clear)

  1. Ooh I can't wait by Anonymous Coward · · Score: 3, Funny

    wait so they get to use my bandwidth and charge me per song?

    SIGN ME UP!

    1. Re:Ooh I can't wait by squiggleslash · · Score: 4, Informative
      No. They charge you per song. You then get the option of getting cheaper songs in future if you offer them some of your bandwidth.

      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.
  2. double dip by udderly · · Score: 5, Funny

    Wow--looks like they've found a way to get paid from one customer for using another customer's bandwidth. Oh well...it's good work if you can get it.

  3. Oh my.. by elemur · · Score: 3, Interesting

    Is the RIAA actually going to try and work with technology? I thought the jamming the head in the sand and yelling aproach was working so well..

    This isn't actually a bad idea from a service prospective.. you have your users handling the bulk of the traffic loads, users get songs faster with swarming techniques, and the RIAA gets money. I mean.. the artist.. its all about the artist remember.

    I don't know that I would use their service, but trying to work with technology and doing something new is lots better than their previous litigation efforts.

    (Of course, I'm assuming this is built on Windows DRM.. ah well.. Are they going to be so restrictive as to DRM limit the files to remove all usefullness to the user? No CD burning, coping to devices.. heck.. copying to my iPod? Oh wait, they said that was Apple's fault for not using an *open* format like MS's..)

  4. Re:WTF? by buro9 · · Score: 4, Insightful

    So... we pay for the distribution now... the manufacturing has vanished... and still they'll try and DRM it (making less useful than a plain CD) and will probably will charge it at the same or higher rate than CD's.

    This isn't a win... it's a lose.

    If they drop the prices to reflect that manufacturing and distribution have now been removed... and also to reflect that now we just want the good stuff and not the padded albums... then they might have something.

  5. Reasonable... by Heem · · Score: 4, Interesting

    As long as the prices are low (i'm sure they won't be) and the credits earned for sharing the file are fair, then this sounds like a reasonable compromise.

    We get music, legally, and affordably (hopefully). We also have the opportunity to earn credits for using our bandwidth.

    They get money, which is all they really want anyway.

    --
    Don't Tread on Me
  6. how long by udderly · · Score: 5, Interesting

    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.

    And how long will it take until someone figures out a way to manipulate the system to earn the credits without actually sharing? I can see it now--'You have 20,000,000 credits, which is enough to purchase 500,000 songs.'

    1. Re:how long by Heem · · Score: 4, Insightful

      more like..

      "You have 20,000,000 credits, which is enough to purchase 3 songs, but only from this list of one hit wonder bands, from their albums that did not contain said hit."

      --
      Don't Tread on Me
  7. Re:Artists by Peyna · · Score: 5, Informative

    If the artists aren't going to get any royalties from this, then this is the RIAA committing piracy.

    Was there any claim that they wouldn't be receiving the royalties guaranteed them in their contracts? Oh, and most of the time, the artists don't hold the copyrights to their works anyway, they sold them along with their soul in order to get signed to a particular label.

    If the RIAA didn't give the artists any royalties due, they would be breaching their contract with the artists, but not committing piracy.

    --
    What?
  8. Re:Thanks but no thanks by Bimo_Dude · · Score: 4, Funny

    I'm not going to pay a dollar + bandwidth and get only 50 cent in return ;)

    --
    "Teleporting Rodents with D-Cell Battery Displacement" theory -- IgnoramusMaximus (692000)
  9. Re:WTF? by Southpaw018 · · Score: 4, Insightful

    *ahem* RTFA?
    It's a file sharing system meant to both supply legal downloads on a p2p basis and encourage sharing. If you have a song, and someone else sees you have a song and they download it, you get some credits toward the service. It's a clever "social networking" kind of way to get music out there to more people than it otherwise might have reached AND it's an embrace of the legitimate power of p2p.

    That said, this isn't exactly an ultimate solution and it certainly doesn't do anything to repair the RIAA's image. Baby steps. Baby steps.

    --
    ACs are modded -6. I don't read you, I don't mod you, I don't see you. Don't like it? Don't be a coward.
  10. Reflections by myrick · · Score: 5, Informative
    So the RIAA is at least trying to tap into a fantastic resource for content distribution, albeit five years too late. The problem, as with all current implementations of "legal" online music stores, is that this is going to be too restrictive. As with most /.'ers and most folks in general, if I purchase music, I expect to be able to use it however I like. Most troublesome to the geeks is that it forces Windows and WMA. Most troublesome to the mass market is that it doesn't support the iPod. How can you expect mass-adoption if you don't even support the media player with the largest market share?

    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.
  11. Re:Thanks but no thanks by david.given · · Score: 4, Funny

    50 cent is even less popular in the UK; here, he's only 27 pence.

  12. This makes my physically ill. by ZackSchil · · Score: 4, Insightful

    How is it even possible that the RIAA things this is a good idea?! This is quite possibly the stupid thing I've ever heard of. In fact, I think I've heard this buisiness plan before. Does anyone recall the Scour Network? Basically it was a napster-era general use peer to peer service that got taken down and ressurected as a pay service. Basically, users had to pay to use lame content that they hosted themselves for others to download. You're paying a service to use your own connection for them. The idea of being compensated for this with a points system is laughable. People share music on peer to peer services because they love music and they want everyone to enjoy the songs that they have in their collection. People download songs on peer to peer networks because it's free, convenient, and offers a great selection.

    What the RIAA has done is taken the bad parts about legitimate music (paying, poor selection, hassle) and merged them with the downsides of Peer to Peer file sharing (slow download speeds, having to upload on an asymmetrical connection). The rewards system seems to be a new concept but overall, they've taken the downsides of two distribution methods and are sure to fail, as others have in the past using this same exact strategy. Sometimes I wonder if they live in their own little magic world where ideas like this sound less retarded, because that's the only logical explanation I can come up with for the creation of this service.

  13. Re:WTF? by AccUser · · Score: 3, Insightful

    You buy the song first, and download it. Someone else buys the song, and downloads it from you. Others buy the song, and download it from you and the second guy, etc. The service gets the cash, but without the cost of the bandwidth.

    --

    Any fool can talk, but it takes a wise man to listen.

  14. IIRC by nsasch · · Score: 5, Insightful

    My cable ISP has something in their TOS that says I can not use my connection for profit (making money for my bandwidth). According to that, there's no way I can use this P2P legally if I get credits for my bandwidth which can be used to purchase things which normally cost a set amount.

    --
    Make your computer faster: rm -rf /mnt/windows/
  15. Wow- an actually interesting idea by edremy · · Score: 4, Insightful
    While I'll be really interested in seeing how this works in reality, the basic idea is quite clever.

    Since you get "credits" for letting people download from you, the P2P leech problem simply goes away- *everyone* not on dialup is going to want to be a server. The RIAA/record labels will spend close to 0 on bandwidth- a few seed copies and purchase info is all they need.

    Presumeably they'll have some way to make sure only good copies stay on the network, thus removing the whole "I can't get the entire album at a decent bitrate, and Track 3 is all messed up" problem so common in current P2P.

    If they get their entire catalog out fast, they could also return to the good old days of having a massive variety of stuff to sample from. This is still the problem with iTunes- obscure stuff just doesn't exist yet for whatever reason. Here you dump off one copy of some wierd goth/emo/trance/metal hybrid from Eastfarkistan and you'll get a few people to host it.

    Of course, being the major album labels, they'll probably only seed the latest copies of Jessica Simpson and (insert latest dead rapper) at 64 kbit/second while managing to use 1MB/sec of bandwidth for DRM checks, but we'll see.

    --
    "Seven Deadly Sins? I thought it was a to-do list!"
  16. Supreme Court by jasonmicron · · Score: 3

    From TFA so it is not off-topic:

    The Supreme Court is considering whether companies behind unrestricted file-sharing services -- Grokster and Morpheus -- should be liable for copyright infringement.

    Do the labels think that the Supreme Court has any say in the online music world or technology? Sure it can regulate hardware manufacturers, developers and programmers but it can't regulate the use of the software.

    Whatever the supreme court decides will already be benign when they reach a decision. New technology will be out or older technology more utilized (such as Usenet or private FTP servers). I say bring it because the only people that are going down are the ones that punch their hardest into thin air.

  17. Re:Artists by cryptoguy · · Score: 3, Insightful

    It should be cheaper to buy from a peer on the network than from the central server, because the server adds no value in that case. You aren't using their disk storage and you aren't using their bandwidth. All you should have to pay is a royalty of a few pennies, to go to the coypright holder.

    What is really needed is a way to take the RIAA out of the loop and have royalties go directly to the copyright holder (which eventually would be the performer or composer for new works).

  18. A Modest Proposal by ZackSchil · · Score: 4, Funny

    1.) Set up service with the downsides of buying music (having to pay, shitty RIAA-only selection)
    2.) Match that with the downsides of peer to peer file sharing (having to upload, disorganization, no physical cd)
    3.) Slap on some draconian Microsoft DRM for good measure
    4.) ???
    5.) Chapter 11!

    Note: Step 4 may or may not be an earthquake caused by everyone on the planet going "huh?!" at the same time.

    Also, I needed a title for the post so I made a random one and now all I can think of is eating babies.

  19. Re:Artists by RobotRunAmok · · Score: 4, Insightful

    What is really needed is a way to take the RIAA out of the loop and have royalties go directly to the copyright holder (which eventually would be the performer or composer for new works).

    Well, which is it, the performer or the composer? What about the producer? The recording engineer? Who's tracking all this data? Who's holding the money? (Please don't tell me it's the lead singer, or the code monkey who set up the torrent...)

    There is still a business to the distribution of Art, and although the Internet may have made the process "simpler" to the consumer, the accounting and funds disbursement is still a nightmare. There's a reason, beyond the "Look, Ma, I signed with A&M!" appeal that artists sign away rights to Big Businesses: The Big Businesses handle the big business, and that frees up creators to create, and not balance books, write checks, and lick envelopes all day long.

    Do many artists sign away too many rights? Are the labels and publishers too greedy? Inarguably. But artists need some middle-ground choice between being a slave and becoming a CPA (I'm not sure there is any genuine substantive difference between either fate, but you get my drift...)

  20. Re:Publishing Right by Peyna · · Score: 4, Insightful

    The typical situation is that the artist signs with the label and then the work that they produce is actually considered "work-for-hire" and the copyright is owned by the label at that point, which the contract then dictates what the artist receives, etc.

    Another typical situation would be that the artist creates the work outside the label. Then the artist holds the copyright; however, they have the transfer their rights to a label in exchange for publicity, publishing, etc. (Not that they have to, but the label won't have it any other way more than likely.)

    Copyright actually consists of many rights, which include, inter alia, the exclusive right to:

    - reproduce the work
    - prepare derivative works
    - distribute the work
    - perform the work publicly (applies to only certain classes)
    - display the work publicly (applies to only certain classes)

    It is possible to assign only some of these rights to other individuals, which may be another way that the music industry gets things done. The sad truth is that because of the oligopoly of radio stations held by a few media giants, it is difficult or almost impossible to get anything done with major record labels, who are only interested in screwing artists out of every dime they have.

    --
    What?
  21. Re:Artists by Peyna · · Score: 4, Insightful

    I think the appropriate term for what the RIAA does to artists is "rape".

    --
    What?
  22. Re:Artists by Marc2k · · Score: 3, Interesting
    Uh, well, He's still right. For a number of reasons.
    • Trent Reznor produces, tracks, and probably even mixes his records himself. Nine Inch Nails on record basically is Trent, and he's a good producer at this point, having a lot of experience, especially getting his own ideas onto tape. I wouldn't be surprised if he didn't also mix his records, as that's a pretty important creative extension of a recorded work.
    • Trent Reznor is Trent Reznor. If he were to sit down to discuss a record contract with a major label, he brings a lot more to the table than bands like Staind, The Darkness, or Britney Spears. He's already got household recognition, and With Teeth is a testament, people will buy his record no matter how bad it is. But this point is moot, because:
    • Trent Reznor owns Nothing Records. Or at least a part of it. Or runs it. I have no idea. But running with the idea that he owns it, if you follow my bullet points, so far he's already brought to the table every part of the recording process. In terms of actually making the cd, all that's left is pressing and distribution. I have no idea how much Nothing actually does, or how they're affiliated with any other major labels, but they could do anything from pressing the cd to distributing and promoting it as well, at which point, he has complete control from the one end to the other. But the main point is that he does so much of it himself, it makes no sense for him to give up his rights now. If a label wants all rights to a cd he's written, recorded, mixed, and pressed, he'd be an fool to agree. At this point, he's also made enough $$ to just press, distribute, and promote it himself. Maybe that's how Nothing started, I really have no idea how much of the process they handle.
    --
    --- What
  23. Here's what I really want by Sycraft-fu · · Score: 3, Interesting

    I want a site run by the recording labels, preferably all of them together. You sign up for an account for a reasonable rate, maybe $20/year or something. This buys you access to the site. The site then contains a database of all their music. I mean all of it, less popular music, stuff out of print, etc. Digital storage is cheap, there's no excuse. The site allows you to browse the libraries by type, artist, related music, etc. It suggests new music to you based off of past buys, or what you are looking at now. You can preview tracks, probably at a decreased quality and only a clip.

    Sales would be credit based, you buy song credits, probably $0.50 per song, in increments that are economicly feasable, like $10 or something. Then when you want a song, you tell it to download that. The song is sent from their high speed datacentre(s) to you. I'd have two versions available, a normal compressed quality like 128k OGG or something for a credit, or the full loslessly compressed track for 2 (costs more bandwidth). When feasable I'd offer high resolution orignal masters at 24-bit and high frequency rates as well.

    A system like this I would use because of the simplicity and access to what I want. If I could really get the music I like, all of it, and get it at a good quality, I have no problem paying for it.

    That would be my ideal service.