eDonkey Pays the Recording Industry $30M

recording industry? by doti · 2006-09-12 08:14 · Score: 4, Insightful

The so called "recording industry" is just not needed anymore. Just get your fortune and invest in another productive area, and get over it.

Go away. Please.

--
factor 966971: 966971

Re:recording industry? by Anonymous Coward · 2006-09-12 08:33 · Score: 2, Funny

Uhhh, dumbass, somebody has to *make* that music before you can steal it. eDonkey didn't make that $30 million from people who wanted to hear Creative Commons .oggs of Cory Doctorow blowing his nose.
Re:recording industry? by kz45 · 2006-09-12 08:36 · Score: 2, Insightful

"The so called "recording industry" is just not needed anymore. Just get your fortune and invest in another productive area, and get over it.

Go away. Please."

even if the current RIAA is gone, there will always be some type of recording industry around. It's just too lucrative.

also, most artists have no experience marketing, selling, or dealing with the right people that will get them the high-paying gigs they need to continue performing and feed their family and or make the rent.
Re:recording industry? by aplusjimages · 2006-09-12 08:48 · Score: 3, Insightful

I don't know if they should go away, but for crying out loud adapt to the Internet. This is the new format. They all need to work together and remarket their products. They still expect people to buy their CD's by the billions as if CD's are still new technology. They still think they can put out 1-2 songs and then throw in 8 other songs to fill up a disc. The market is changing, so they need to change with it.

--
Can I bum a sig?
Re:recording industry? by lymond01 · 2006-09-12 08:51 · Score: 4, Insightful

Their tactics could use some updating certainly, but there's a lot of money to be made in creating the next big star. Recorded music is still a commodity, and what drives the price up of concert tickets? A: Who is most famous. How do they get famous? A: Recording industry promotes them.

What would happen without the recording industry? A: They'd become popular by internet vote and word-of-mouth, someone would claim to have "made them famous" on their website and demand some of their earnings from concerts, videos, commercials. Other people would hop on that bandwagon, realize it's easier to promote people if they work together, and they'd call it the WMIA, World Music Industry Association, claiming rights throughout the world as an "international" (ie internet-based) company.

You'd think the way people talk that big industries are just a bunch of small people being greedy. Well, you'd be right.
Re:recording industry? by arevos · 2006-09-12 09:05 · Score: 3, Insightful

also, most artists have no experience marketing, selling, or dealing with the right people that will get them the high-paying gigs they need to continue performing and feed their family and or make the rent.

Yep, presumably artists will still need outside help to help them finance, organise and arrange large live gigs. However, I think there's less of a need for recording companies to market and distribute music from artists. Distributing music via the Internet is obviously cheap enough not to need financial backing; I need hardly go into the details of that on Slashdot. But marketing music is also a industry I expect to decline in the next few years. Music is an odd thing, in that one cannot 'sell' a piece of music in the same way one would sell a car. The customer either likes the piece of music he hears, or he does not. No amount of salesmanship will get him to change his mind, as it boils down to personal preference.

Because of this, marketing music consists largely of getting people to listen to it. Unfortunately, people have limited time on their hands, and cannot listen to every piece of music, so recording companies market selectively, using bands they know have a wide appeal. It's a broad, scattergun approach, and I can't help but think that one could do a far better job with a large database and some social networking software.
Re:recording industry? by Evil+Shabazz · 2006-09-12 09:43 · Score: 2, Interesting

It's a broad, scattergun approach, and I can't help but think that one could do a far better job with a large database and some social networking software.

Are you suggesting GoogleMusic? :P

--
Down with the career politician! SUPPORT TERM LIMITS
Re:recording industry? by yaphadam097 · 2006-09-12 09:50 · Score: 4, Insightful

Music is an odd thing, in that one cannot 'sell' a piece of music in the same way one would sell a car. The customer either likes the piece of music he hears, or he does not. No amount of salesmanship will get him to change his mind, as it boils down to personal preference.

I disagree with this fundamentally. A lot of people, especially young people, buy music for reasons that have nothing to do with the quality of the actual music but have more to do with a certain image or subculture. I grew up listening to punk, and while some of it actually does qualify as good music, much of it is less about the content and more about expressing an opinion on the culture (Kind of like /. ;-) Rap/Hip-hop music too is often about an image - the clothes, the cars, the attitude, etc. - and not about the quality of the music. All of these things are expressed outside of the music as well. e.g. by the artists appearances, actions, and speech on radio/television, live concerts, etc. This "artistic image" is a kind of marketing and has always been exploited and/or manipulated by the recording industry. In this regard, there is quite a bit of salesmanship in the industry, and the artists are to a large degree dependent on the industry to get that image out via appearances in other media.
Re:recording industry? by AlHunt · 2006-09-12 11:05 · Score: 2, Informative

> nothing to do with the quality of the actual music but have more to do with a certain image or > subculture

Hmph ... I dunno. Looking back from almost 50, I don't recall ever buying music for "image". If I didn't like it, I didn't buy it.

Since RIAA started their vendetta against customers I've bought 2 albums.

Al
(apparently an old fart)

--
1 in 4 Maine children in struggle with hunger.
Re:recording industry? by talksinmaths · 2006-09-12 12:33 · Score: 4, Funny

A lot of people, especially young people, buy music for reasons that have nothing to do with the quality of the actual music...

You misspelled shallow. :)

--
Don't you have someone you'd die for?
Re:recording industry? by Oddster · 2006-09-12 13:12 · Score: 3, Informative

Rap/Hip-hop music too is often about an image - the clothes, the cars, the attitude, etc. - and not about the quality of the music.

I hope you know that the type of rap and hip-hop you talk about here is the kind which is foisted upon the airwaves by the recording industry, put on by the likes of 50 Cent, Chingy, etc. I used to dislike this genre myself for this reason.

Then a friend turned me on to good hip-hop. Like Common, Hieroglyphics, and Mos Def to name a few, real hip-hip artists who you rarely hear about through the mass publicity of the RIAA. These artists use intelligent beats and mixes combined with intelligent lyrics, often philosophical, and are actually a counterforce to the mass-market version of the genre - Common and Mos Def actually have lyrics about their college educations. If you want a nice starting point, I recommend Like Water for Chocolate or Be by Common, or Black for the First Time by Mos Def.
Re:recording industry? by Sj0 · 2006-09-12 15:33 · Score: 2, Insightful

Video killed the radio star....and marketing killed the video star. Oops!

--
It's been a long time.
Re:recording industry? by neax · 2006-09-12 16:13 · Score: 2, Interesting

I found this great explanation of change. Which I think applies nicely to the recording industry and where they currently stand.

"There are two forces which cause different effects. The first one is ATTRACTION. If there is a position which is more attractive than the original one, the thing starts to move towards that new position. Again, this could be physical or mental. Thoughts could be moved to another direction by an attractive idea. Water moves down from the mountain, because of the gravitational attraction. In my workshops with students I often use the vacuum cleaner as example of the attractive force. The great attractivity - as I may use this word- of attraction is, that the process of repositioning is a process under control. One could predict the effects, the new position is known. These effects could be described as 'concentration'. In other contributions, I have also used 'pulling' as a synonym for attraction. In human behaviour, one could also speak of 'stimulating'.

The opposite of attractional force is REJECTION - pushing. Rejection cause generally uncontrolled effects. It means that the original place lost its attractivity, but there is no alternative. Something has to move, but does not know where to go; it could be in all directions."

"...But think also of the effects of punishment in human behaviour. This issue has been discussed on this list. Punishment is comparable with 'pushing'; the very position is made as unattractive as possible. The resulting effects of human behaviour are very difficult to predict. A lot of governments - creating new rules and laws to change behaviour by means of punishment, seem to neglect or underestimate the possible effects of their actions. "
[source: http://www.learning-org.com/00.05/0149.html]

The RIAA is Rejecting the p2p phenomenon, and that is just going to cause more problems. Ultimately file sharing is here to stay. It is not going away. So they need to find a constructive way to work with it so that everyone benefits. In my opinion it is just the larger, more popular artists that loose (only money, they rep increases) as their sales can decrease due to people sharing their music instead of buying it. Smaller, unknown artists however, benefit in a big way, because it is cheap easy promotion, and ultimately they end up getting known. which leads to sales and great crowds at gigs.

--
Hard work is just an accumulation of the easy things that you didn't do when you should have.
Re:recording industry? by Kiaser+Zohsay · 2006-09-13 03:10 · Score: 2, Insightful

It's a broad, scattergun approach, and I can't help but think that one could do a far better job with a large database and some social networking software.

Are you suggesting GoogleMusic? :P
Or Pandora?

--
I am not your blowing wind, I am the lightning.

Good thing by Vampyre_Dark · 2006-09-12 08:15 · Score: 4, Funny

Good thing they paid up. Uncle RIAA thought it would be a shame if "something should happen to their nice office building".

Re:Good thing by pla · 2006-09-12 08:21 · Score: 5, Interesting

Good thing they paid up. Uncle RIAA thought it would be a shame if "something should happen to their nice office building".

For some reason you got modded down, but really, I have to wonder about the legality of this...

"eDonkey, has agreed to pay $30 million to avoid potential copyright infringement lawsuits from the recording industry". Not damages awarded by a court, not even to settle a pending suit - To avoid a potential lawsuit!

If that doesn't meet the textbook definition of extortion, I don't know what would.
Re:Good thing by BGraves · 2006-09-12 09:45 · Score: 3, Interesting

The vast majority of disputes are solved this way, which is a good thing. It reduces the costs created by taking a case to court, and frees up the courts to deal with other, more important disputes.

Morte d' Robertson by Stanistani · 2006-09-12 08:16 · Score: 3, Interesting

Slowly the vise closes in on all P2P... yet filesharing grows year by year...
The media congloms win lots of battles while losing the war.

--
You can't talk about Wikipedia's flaws on Wikipedia

Re:Morte d' Robertson by X0563511 · 2006-09-12 08:19 · Score: 4, Insightful

They call that a war of attrition. And they are indeed loosing (big lawsuits against few people wont work, they need small lawsuits against teeming crowds).

But that's almost as impractical as SCO's lawsuit(s)

--
For large sets, this will be our guide even unto death, for the LORD will work for each type of data it is applied to...
Re:Morte d' Robertson by smilindog2000 · 2006-09-12 08:33 · Score: 2, Insightful

I believe the powerful music and movie industries will succeed in forcing the US government to crack down on ISPs (not just individuals and web-sites). Then, eMule and it's network will go away, at least for us in the US. The ISPs will be happy to comply, since this will eliminate much of their traffic. It probably would have already happened had these industries not POed the GOP by donating generously to Democrats for years, and if the government weren't working so hard to be budy-budy with backbone carriers so they can get their secret data taps, and if the baby Bells weren't such grand GOP supporters.

One the bright side: legal digital music and video distribution should get cheaper. Those of us who actually pay for our stuff will see a benefit.

--
Beer is proof that God loves us, and wants us to be happy.

time to cash out by User+956 · 2006-09-12 08:18 · Score: 2, Interesting

MetaMachine Inc., the firm behind online file-sharing software eDonkey, has agreed to pay $30 million to avoid potential copyright infringement lawsuits from the recording industry.

Sounds like they've made their fortune, and have made the decision to pay the piper and cash out. I have no doubt that MetaMachine's profits were far in excess of $30 million.

--
The theory of relativity doesn't work right in Arkansas.

It logs your IP address. by xxxJonBoyxxx · 2006-09-12 08:19 · Score: 5, Insightful

If you visit edonkey.com, it logs your IP address

If you visit one my my sites, I'll log your IP address too. So what - are they following up on each one to see if they are potential pirates?

Re:It logs your IP address. by vertical_98 · 2006-09-12 09:31 · Score: 2, Funny

If you visit edonkey.com, it logs your IP address

I logged onto every one of our servers and lynx'ed to it. just so if someone is actually reading the logs can wonder why they get XX.XX.XX.130,131,132,133,....152.

Vertical

--
72 CD D7 52 D0 7E D8 47 44 91 D5 84 D1 59 F1 A9-This is my 128bit integer. There are many like it, but this one is mine.

Never ending gravy train by LiquidCoooled · 2006-09-12 08:21 · Score: 5, Insightful

So, eDonkey wants to stay legit, good on them.
They want to put in place controls to limit copying, good on them.
They then give all their money to the bullys, bad move.
Paying of the artists might seem like a prudent course of action, but once you pay of one group, what about the next?

Theres the RIAA, MPAA and the BSA.
The guitar tab people and the knitting pattern folks and all the other American groups.
Thats not including all the individual software companies who want a piece of the pie, nor does it include all the groups from other countries (like FACT(Federation Against Copyright Theft) or CAAST(Canadian Alliance Against Software Theft)).

What happens when I find software from my company is available on limewire, where do I get my piece of the pie from, or is mine not big enough and is simply enough to get it added to the list of banned searches without any financial payback?

What makes my company different to the RIAA groups?

Let the copyright owners prove blatant infringement, let them show the service is doing illegal things and let the service fix itself.

Don't give into threats.

--
liqbase :: faster than paper

Re:Never ending gravy train by sane? · 2006-09-12 08:49 · Score: 2, Insightful

Paying of the artists might seem like a prudent course of action, but once you pay of one group, what about the next?
I'd have less problem with them paying the artists directly, rather than the industry which includes all the other hangers on and parasites. I somehow doubt any of this money actually goes to the artists at all - it just inflates the profit lines of the various companies.
Re:Never ending gravy train by rts008 · 2006-09-12 11:44 · Score: 3, Informative

I agree.
It seems funny I was reading the Sept. 2006 edition of Reader's Digest this morning, and was drawn to an column "Turning Point" featuring Bob Newhart this month and he had something along those lines to say also.
The article is titled "Finding My Funny Bone", by Bob Newhart.

He was talking about two of his recordings : "The Button-Down Mind of Bob Newhart", and it's sequel, "The Button-Down Mid Strikes Back". The first went to #1 on the Billboard charts, and got between the two recordings, got him three Grammy's that year. He goes on to say that he just recently started getting royalties on the recordings (they came out in 1960), and:
"Lately I have begun to receive royalties on the albums on a quarterly basis. Even as a trained accountant, I'm no exactly sure how they calculate these royalties without all of the financial records and contracts that burned up in The Great Warner's Office Fire of '73. But they apparently have a formula. Just last week, I received a check for $1.18."

--
Down With Slashdot BETA!!! I've been around the corner and seen the oliphant; you can only abuse me from your perspecti

Get this... by Anonymous Coward · 2006-09-12 08:21 · Score: 5, Funny

It also logs the page you requested, when you requested it, and your browser. Everyday, they also rotate their logs and compress them for further statistical tracking at a future point!

it's only natural everybody uses eMule by ranjix · 2006-09-12 08:24 · Score: 5, Funny

historically speaking, eMule comes from eDonkey (eStallion) and eHorse (eMare)... Plus is sterile, RIAA likes that

--
I had another sig before, but this one is better

I wonder... by GmAz · 2006-09-12 08:25 · Score: 3, Insightful

So, does the $30 million go to the 'starving' artists or will the RIAA soak up the money?

--
Click Click Bloody Click PANCAKES!

I have a question.... by dcavanaugh · 2006-09-12 08:28 · Score: 4, Interesting

Where did eDonkey GET $30M to pay RIAA? Or is this a hyped-up announcement of a "settlement" that is never really collected?

Re:I have a question.... by shark72 · 2006-09-12 10:05 · Score: 4, Interesting

"Where did eDonkey GET $30M to pay RIAA? Or is this a hyped-up announcement of a "settlement" that is never really collected?"

From advertising.

Many people mistakenly see the big players in the P2P game as "white knights" because they make it so easy to get so much music for free. But, make no mistake: they are not in it because "information wants to be free." They are not in it to "stick it to the man." They do it to make money. They are in the business of helping people pirate music, and business is goooood.

It's funny that many of us justify our P2P usage by imagining some record executive in a $3,000 suit. The reality is usually different. The only record company owner I've met ran a ten-person label and paid himself $25K a year. Sam and Jed, the folks who brought you eDonkey so countless teens can "stick it to the man," likely made about $25K every week. The executives at Sharman are also multi-millionaires.

So why are Sam and Jed rich, while my friend the indie record label owner could only afford to pay himself $25K a year? Because my friend paid artists, paid employees, and paid for the production of the music.

--
Sitting in my day care, the art is decopainted.
Re:I have a question.... by shark72 · 2006-09-12 11:06 · Score: 2, Insightful

"I hate to say it, but it could also be that your friend isn't very good at his job. It's not a flame or anything, it's just that I run my own business too and I've seen as many people go bust because they aren't any good as I've seen people become millionaires and not have a clue what they're doing."

Could be... I don't know, either. But the point I'm making is that your average indie label is likely a lot smaller than the typical Slashdotter imagines. Five or ten-person labels are quite common, and pay in the record industry is not high. It has its millionares, sure, but so does the software industry and pretty much every other industry of significant size.

"This isn't about pirates putting independant record labels out of business. Hell, indie labels are least affected by this sort of thing and in some cases have used the technology themselves to help generate interest in their artists."

When Napster really exploded, my friend had to lay off some of his employees. People were using Napster to get his bands' stuff for free. Not "free but they ended up buying it" or "free but they bought a t-shirt." Free as in "I don't have to pay the band or record company in any way, shape or form." If he'd been a larger company, he might have been a bit more resilient, but because he was pretty small and paying his bands much higher than the contract rate of the big record labels, P2P hit him hard.

That was several years ago. Nowadays, the reality is that indie labels without big bank accounts must be able to cope with the force of P2P; or better yet, use it to their advantage. It's economic darwinism. But I've no doubt that the P2P explosion caused many indie labels to go extinct, as it were.

--
Sitting in my day care, the art is decopainted.

Logged IP? by im_mac · 2006-09-12 08:28 · Score: 3, Insightful

Everyone who clicks on the eDonkey link gets this friendly message:

"You are not anonymous when you illegally download copyrighted material. Your IP address is xxx.xxx.xxx.xxx and has been logged."

Great, I only go to the site, they chastise me for 'stealing' music and then write down my IP address. How long until the RIAA sends me a letter regarding my visit to eDonkey.com and requests to view my harddrive to find 'stolen' files?

Let's not forget aMule... by urbanradar · 2006-09-12 08:28 · Score: 4, Informative

And let's not forget... for Linux, there's the ever-excellent aMule client to access the network.

--
Basilisk Digital

your sig by SnowZero · 2006-09-12 08:37 · Score: 3, Funny

I declare a subthread for people with prime user id numbers only.
factor 92219: 92219

Re:your sig by sr180 · 2006-09-12 14:30 · Score: 2, Informative

You dont really get this do you? All the factors are going to be prime.

--
In Soviet Russia the insensitive clod is YOU!

Where does all this money come from? by Nom+du+Keyboard · 2006-09-12 08:48 · Score: 2, Interesting

Where does all this money come from? Weren't they distributing a free program to allow the free swapping of digital files? Where does the $30M show up from?

--
"It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."

Re:Where does all this money come from? by shark72 · 2006-09-12 10:26 · Score: 2, Interesting

"Where does all this money come from? Weren't they distributing a free program to allow the free swapping of digital files? Where does the $30M show up from?"

Giving something away for free, which helps people get free music, does not necessarily mean that you are a philanthropist. Sam and Jed were very much in it for the money. And they did very well. They are millionaires. So are the principals of Sharman Networks, the folks behind Kazaa.

It's ironic, because many people justify their piracy because they believe that artists and/or record companies are "greedy." Sam and Jed likely did better, financially speaking, than 90% of the record labels and 99% of recording artists.

--
Sitting in my day care, the art is decopainted.

FUD! by robpoe · 2006-09-12 08:51 · Score: 4, Funny

Plain old FUD .. EVERY friggin website in the world logs your IP address. It's only that, an IP address.

I went there JUST so they would log my IP address. There! Sue me RIAA. I visited a public website. Boo friggin hoo..

Next they'll be sending secret police to my house to @(*$fiu$#(NO CARRIER)

--
= Grow a brain...

cool! by Supersonic1425 · 2006-09-12 08:53 · Score: 5, Funny

now when I want to know my IP address, I can get a free threatening message with it! awesome.

Gnapster vs. OpenNap all over again. by pjbass · 2006-09-12 09:02 · Score: 2, Interesting

When the recording industry forced the Gnapster community offline, they all patted themselves on the back for a job well done. But the opennap network was just spinning up, and was bigger and better than the original. Fast forward a few years ahead, and all these attacks on PnP filesharing has generated beautiful, useful protocols like BitTorrent.

Let them keep attacking, because we will always have someone out there out-innovating the money-hungry RIAA and MPAA.

Heh I had no idea... by Fnkmaster · 2006-09-12 09:38 · Score: 2, Interesting

My guess is that they agreed to a settlement that the RIAA knew the company didn't have the funds to pay. This will force them into a Chapter 7 liquidation under which the RIAA recoups a fraction of the 30 mil, and lines up with other creditors based on their priority in the capital structure of the firm.

The goal of this is probably to prevent the equity shareholders from getting any return on their dime.

I doubt that eDonkey had greater than 30 mil in cash on hand, and I doubt they even had that in total assets. This is based on my knowledge of the workings of other similar P2P developers and of small tech firms in general.

If I am wrong and they have sold hundreds of millions of dollars in advertising and were sitting on a huge nest egg, I'd be very surprised.

thanks for the reminder, RIAA by xoundmind · 2006-09-12 09:44 · Score: 2, Funny

I haven't turned on my aMule client in months. Downloading now...

Viewing a webpage is not a copyright infrightment by jonfr · 2006-09-12 09:55 · Score: 2, Informative

This is the single most stupid message that I have ever seen. Thease idiots did the right thing, they did die in the hands of a bully.

------
The eDonkey2000 Network is no longer available.

If you steal music or movies, you are breaking the law.

Courts around the world -- including the United States Supreme Court --
have ruled that businesses and individuals can be prosecuted for illegal
downloading.

You are not anonymous when you illegally download copyrighted material.

Your IP address is -removed- and has been logged.

Respect the music, download legally.

Goodbye Everyone.
------
So, RIAA is going to sue all of slashdot ?

Here's my thoughts on stopping that.... by Khyber · 2006-09-12 10:15 · Score: 2, Interesting

What should be done is have the ISPs (at least those in the Telephone industry, like Bellsouth, etc, that got our tax money to upgrade our infrastructure,) taken to court and sued for our tax dollars back. We can prove we gave them 200 billion dollars (I think?) to upgrade our entire nation's telecom infrastructure, with them promising better everything, including faster internet speeds. We should just gather all of the evidence we have, find a good lawyer, get a bunch of Slashdot users (most of them more than likely being more knowledgable than the ISPs,) for expert witnesses, and raise a full-out legal war with them until they buckle from the bad press and/or lose the lawsuit and have to pay all that money back to the American people. At 200 billion bucks and approx 400 million people, they'd be paying $500 to every person in the US. That's a good two or three month's worth of phone and internet. I'd bet they'd not enjoy that prospect.

--
Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.

stealing? by spoop · 2006-09-12 11:28 · Score: 2, Informative

from edonkey.com: "If you steal music or movies, you are breaking the law." NO SHIT. Now if only it was possible to actually steal music via the internet.

--
I blame geof's speakers.

They agreed to pay? But will they pay? Horseshit! by Simonetta · 2006-09-12 11:59 · Score: 3, Funny

They agreed to pay what $30 million dollars???? I cry horseshit! Nobody who actually has $30 million dollars has ever, does ever, or will ever just agree to give it away to someone. Especially something as legally dubious as an RIAA lawsuit.

Most likely they agreed to 'pay' some absurd amount of money knowing full well that barely more than a few thousand dollars would ever be passed to the RIAA under any circumstances. They agree to some sum that they would never have (after all they aren't any different from you and me, gentle Slashdaughters) if there was any posssiblity that they would actually have to come up with the cash. I would guess that 'E-Donkey incorporated' owes $3,000,000,000,000,000 dollars for their 'crime', and the people and programmers who actually were eating all the pizza at E-Donkey's parties don't have to pay anything. As long as they agree to 'be good in the future'.

If the actual people had to pay even 1/1000th of the this absurd amount for their 'crime', then I'll bet that they would be planning serious mayhem on the RIAA lawyers that were personally involved with this bullshit lawsuit.

Look, I'm against violence and horror as much as the next girl, but, in the real world, when you're up against real assholes like the RIAA, then violence and horror goes a long way to 'equalizing' the legal chessboard. Sooner or later the RIAA is going to figure this out. Probably each lawyer will, individually, as they watch their guts drip out onto the floor of their BMW just after winning another extortion lawsuit for downloading 'Yummy, Yummy, Yummy' against that one wrong person.

Keep your fingers crossed.

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eDonkey Pays the Recording Industry $30M

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