Kazaa Agrees to Pay $100m to the Record Industry

siddesu writes "BBC has the following breaking story: File-sharing site Kazaa will become a legal music download service following a series of high-profile legal battles. The peer-to-peer network has also agreed to pay $100m (£53m) in damages to the record industry. The announcement follows the release of a music industry report that says more than 20 billion music tracks have been downloaded illegally in the last year. Hungry artists across the globe rejoice."

Comments

just how much will each artist make?

[LiquidCoooled]

I know theres a lot of artists, but does anybody know just how many and just how much of this money will actually go to the artists?

I personally think they will still be hungry.

Re:just how much will each artist make?

[Reverend528]

I know theres a lot of artists, but does anybody know just how many and just how much of this money will actually go to the artists?

Technically, the artists now owe the RIAA money.

Re:just how much will each artist make?

[KokorHekkus]

Who knows... but it doesn't look good for the smaller artists I guess.

To quote Janis Ian:

...from personal experience: in 37 years as a recording artist, I've created 25+ albums for major labels, and I've never once received a royalty check that didn't show I owed them money. So I make the bulk of my living from live touring, playing for 80-1500 people a night, doing my own show.

And she goes on to state her opinion on the downloads as:

Who gets hurt by free downloads? Save a handful of super-successes like Celine Dion, none of us. We only get helped.

Source: http://www.janisian.com/article-internet_debacle.h tml

Re:just how much will each artist make?

[gid13]

I think the ones that are hungry are the ones that WANT people to download their stuff. And I think that labels are a monument to mediocrity and mistreatment. Let's not forget the guy from Creedence Clearwater, who got sued for copyright infringement OF HIS OWN WORK because the record label owned the copyright. Or, much as I may hate them, the Backstreet Boys, who, after several hugely popular albums, testified that they hadn't ever received a royalty cheque. Or DMX, who compared the music business to legalized slavery. Let's not forget that the major labels were convicted of price-fixing, and got the tiniest penalty imaginable. This is a short beginning of a very long list, but I'm not going to type it all. The point is: pretty much anything that results in the major labels getting more money is bad. And this likely will.

Re:just how much will each artist make?

[Roody Blashes]

Then I guess she shouldn't have entered into a contract that was a bad business deal for her.

I'm sick of this stupid hivemind attitude where the artists are so downtrodden and abused. Like it or lump it, these people aren't being mugged of their rights, they have to willingly sign them away. If they don't understand what they're signing, they should get a lawyer.

And, of course, the argument that there's no other way to make it big is pointless too. Nobody is guaranteed the right to make money, only the freedom to attempt it. If they want to make money, and they can't do it through cartel members under teh RIAA, they should make an attempt on their own. If they don't make it, and fail, then they can go sit and cry in a beer with the other 90% of businesses that don't make it either (of course, we all know that because freedom provided by p2p and such is this huge legit business model rather than a place where 99.99% of all traffic is copyright infringement and/or porn or viruses, indy artists are all just going to be rolling in dough without the marketing muscle of the RIAA studios, right?).

Is the RIAA and its members abusive to artists and consumers? Absolutely.

Are artists under any obligation to sign contracts with them? Absolutely not.

Are consumers obligated to buy music from them? Absolutely not.

Re:just how much will each artist make?

[Zontar_Thing_From_Ve]

Or DMX, who compared the music business to legalized slavery.

I just wanted to add that a couple of years ago, some US Congressman (sadly, I don't remember who it was) said that the music business was like a bank that owned a mortgage on a house and after the mortgage was paid off, the bank still owned the house. I thought that was probably the most perceptive view of how the music business works that I have ever heard.

Re:just how much will each artist make?

[russ1337]

I'm sick of this stupid hivemind attitude where the artists are so downtrodden and abused. Like it or lump it, these people aren't being mugged of their rights, they have to willingly sign them away.

Have you ever managed to change the terms and conditions of your power bill, your phone contract, the EULA on your XP installation? When you are small fry you have the choice of signing what the record company offer, or nothing. Sure you can go somewhere else, but that other label is just has harsh.

The record companies have all the power; They have nothing to lose and will tell you that they'll 'just sign someone else'. You might get room to move a little within your 'negotiation', but until you make it big you have nothing to negotiate with.

That said, I'm glad you recognize that the RIAA is abusing its powers. Massive Props to you.

Re:just how much will each artist make?

[jawtheshark]

I'm sick of this stupid hivemind attitude where the artists are so downtrodden and abused. Like it or lump it, these people aren't being mugged of their rights, they have to willingly sign them away.

Ever considered that it could be the only way to be published big time? For them it's the choice between "A chance to make it big time" and "Would you like fries with that?"

Re:just how much will each artist make?

[Roody Blashes]

It doesn't matter one bit. If the risks are large for a certain potential payout, they must weigh their goals against those risks and make an informed decision. This is called "business". Hundreds of thousands of regular people try it every year and lose everything, make a modest living, or in some cases strike it rich. If they want to be in the business of big time entertainment, they can make the decision to take the necessary risks.

It is entirely on them if they choose to take on huge risks in the pursuit of huge payouts, and it is nobody else's fault if those payouts do not materialize. Nobody is guaranteed the right to become rich, only the freedom to try. They under no obligation to take this path in their lives.

Re:just how much will each artist make?

[ronocdh]

When you are small fry you have the choice of signing what the record company offer, or nothing. Sure you can go somewhere else, but that other label is just has harsh.

How can you say "or nothing"? I'm pretty sure that I can record a CD, burn it, and sell it, all without involving any major corporation. Hell, why even burn it? Why not just post it on my own webspace? I'm not sure about Apple distribution agreements, but perhaps you could get it posted on the iTunes Music Store, at minimal cost to you (we've all heard Apple makes about a penny or two profit per song, and most of the rest goes to the label, which in this case would be you).

Or maybe it's time for a whole new economic model. Let's be honest: why do artists want to get signed? They want to do it because it feels like a finish line. Get signed, get money, done. Of course the labels are ruthless, because their job is to tantamount to panhandling: they are trying to take the consumer's money by selling something on good faith. Who knows whether the CD you're about to buy in Tower sucks? You sure as hell can't download it for free to decide for yourself--you must do the honorable thing and take the plunge, because that's what keeps our culturemachine rolling, right?

Let's just consider a different way of doing things. What if I were to post my self-recorded, self-produced CD online, and charge nothing for it? I have a dayjob--I'm not throwing my life out the window or putting myself in financial jeopardy, doing what I love in my free time and sharing it. I could put a PayPal link on my site, and people who really enjoyed my work would pay me. Honestly, I've heard songs that I would pay never to hear again (an insurance policy of some kind). I also own CDs for which I'd've paid the artist upwards of $100, if I had had a way to do it directly.

In our ardently capitalistic market, money is no longer used to promote future growth. Money is a throwaway commodity, and we buy things that are designed not to last. Record companies want their artists to be forgettable--no one's looking to sign the next Beatles, because such a phenomenon has become unthinkable to our market, meaning the bar is low. So how about a system where the consumer and the artist are actively considering the allocation of money toward the future. "I want more of this. Yes. I'll pour money into this, because this guy understands." The artist has to earn my money, rather than the label.

We aren't liberal enough with our money in this culture. Why is it impolite, nay, taboo, to pay someone a quarter for a really funny joke? A dollar? Twenty? We aren't paying for satisfaction any longer, we're paying out of guilt because we don't feel like understanding. We'd rather pay than think.

Maybe I should start putting a PayPal link in my sig. =D

But....

[zo1dberg]

Why does the money go to "the record industry", and not these "hungry artists"?

20 Billion Tracks?

[stealie72]

Wow, 3+ tracks for every person on the planet?

How do they know those are all illegal? My CD collection is in my attic. My p2p software is on my desktop. I DL tracks from CDs I own all the time, because it's easier than finding the CD.

Did that get counted as an illegal download?

OMG this is totally awesome

[Heir Of The Mess]

Now instead of having a large range of MP3s to choose from I can choose from a limited range of music that is encumbered with DRM. Where do I send my money?...allofmp3.com I guess. I wonder if the music industry will eventually get it?

None. This just offsets Record Industry costs

[giafly]

does anybody know just how many and just how much of this money will actually go to the artists?

"While the award may seem like a vast pot of money, it will merely offset the millions we have invested - and will continue to invest - in fighting illegal pirate operations around the world" - EMI Music vice chairman David Munns

Behind the Times

[Billosaur]

"We have won another battle in an ongoing war," said John Kennedy, chairman and CEO of the International Federation of the Phonographic Industries (IFPI). "We move forward with a spring in our step."

The International Federation of the Phonographic Industries? Ok guys, it's the 21st Century, so you may want to update the name a little. Although, I have to admit, the new USB turntable I installed on my multi-media PC is smokin'!

I wonder if they ever get confused with the International Federation of the Pornographic Industries?

Please, pretty please, once and for all

[zuki]

What the scariest thing is with this type of settlement is that no one,absolutely no one seems to really know - or care - about what will happen to such a huge pile of money, and further that it probably will only go to enrich those who have major chart successes, their lawyers, or the IFPI itself (claiming it needs more $$ to fight piracy), rather than those copyright holders whose music was actually downloaded.

Of course, as with a major news organization such as the BBC, no need to wax philosophic on the actual real-world meaning and consequences of such actions, and the possible windfall (or lack thereof) to those who created the content in question. Rethorical question if you ask me.

Sort of like the "War On Terror(TM)"... By now everyone forgot why we are fighting it, as we are too involved in the day-to-day fighting to remember what it was supposed to be about.

Carry on lads, carry on....

Z.

Canada Number 2?

[Anonymous Coward]

TFReport cites Canada as the second worst 'offender' in music downloads worldwide.
Perhaps that is due to our Blank Media levy that makes downloading essentially legal in this country.
Now whether those billions of tracks were subsequently uploaded is another question entirely (this is not covered by the levy), but i suppose that doesn't help the RIAA:

"Them there Canucks did 23 Braaziiiilion downloads. Invade Canada!!"