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Collective Licensing for Web-Based Music Distribution

Two weeks ago we discussed a proposal from music industry veteran Jim Griffin to implement a monthly fee from ISPs in exchange for the legal distribution of copyrighted music. Now, quinthar brings news that Warner Music Group has hired Griffin with the intention to make that proposal a reality. Warner wants Griffin to establish a collective licensing deal with ISPs that would let the ISPs stop worrying about their legal responsibilities for file-sharing while contributing to a pool of money (potentially up to $20 billion per year) that would be distributed amongst the music industry. "Griffin says that in just the few weeks since Warner began working on this plan, the company has been approached by internet service providers 'who want to discharge their risk.' Eventually, advertising could subsidize the entire system, so that users who don't want to receive ads could pay the fee, and those who don't mind advertising wouldn't pay a dime. 'I.S.P.'s want to distinguish themselves with marketing," Griffin says. "You can only imagine that an I.S.P. that marketed a 'fair trade' network connection would see a marketing advantage.'"

13 of 236 comments (clear)

  1. what about TV? by aleph42 · · Score: 2, Interesting

    You do realise that you already do that when watching TV, right?

    Because the flat tax you pay for it and that helps fun programs is exactly the same as this one (okay, more advertisement contributes to it, and it's not only for music; but still).

    Would you consider that forced buying?

    --
    Don't take my posts literally; it's just code to control my botnet.
    1. Re:what about TV? by mdmkolbe · · Score: 3, Interesting

      Maybe a better example would be Disneyland: you pay to enter, and that pays for the haunted mansion, even if you never go there.

      This is an example of bundling (i.e. you always have to buy "a" and "b" together). Economically bundling always favors the seller giving them more power and money (the reasons are to complicated to explain here; look it up in an Econ book). It is not illegal, but it can really disadvantage the buyer and when the seller is running a de facto monopoly (as most non-metropolitan, US, broadband ISPs are) they could be hauled up on anti-trust allegations.

      For example, most people wouldn't object to the grocery store bundling batteries with their flashlights, but if the water company required you to buy a car with your water service then people would squeal. Here it is all shades of gray depending on how related the items being bundled are and whether the buyer has alternative to buying the bundled items. Personally I think this steps across the line. For me the internet is a utility and I really don't want it to be bundled (e.g. the AOL portal model) with things that I have no intention of using. After all who is to say there shouldn't also be a Slashdot tax on ISPs to pay for running the Slashdot site.

    2. Re:what about TV? by pavera · · Score: 5, Interesting

      The big difference between an "internet content tax" and the television taxes you guys have over across the pond is that there are hundreds of types of media that are accessible through the internet.

      If this were put in place, it would be less than a week before the ISP bill had hundreds of additional charges:
      Music Fee $5
      Movie Fee $10.50
      TV Fee $7
      News Fee $12.32
      Voice Transmission Fee $3
      Software Fee $15
      Slashdot Fee $3
      Google Fee $6
      Photo Fee $5
      Book Fee $8

      etc, etc, etc, every single industry that has piracy exposure, or distributes anything online would get in on this racket ASAP, and it would suddenly cost $500/mo to get a simple internet connection. Whether you used any of the above services or not.

      Personally, I do not download music, I do not listen to any music except for the music I purchased on CDs. I haven't purchased a new CD in nearly 8 years as nothing that has come out has made me the least bit interested. I detest the music industry, and I refuse to give them a dime. If they manage to push this through, I would be forced against my will to give these evil bastards my hard earned money.

  2. Pay WHO exactly ? by Eth1csGrad1ent · · Score: 2, Interesting


    I'm in Australia. My ISP is in Australia. I listen to Australian bands. US bands. English bands.
    Jazz, rock, hard rock, pop culture and some classical stuff too. Actually pretty much a mix of everything from EVERYWHERE.

    Who do I pay for the privelage of not getting sued ?
    Who does my ISP pay ?

    RIAA ? The Australian version of RIAA? Anyone who claims to be a music distributor ? All of the above ??

    This is straight "all your monies are belong to us" crap, that has nothing to do with finding a solution, and everything to do with ONE foreign (from my perspective) organisation trying to extort even more of my money from me.

  3. What are those people smoking? by Whuffo · · Score: 2, Interesting
    This is just another ploy to continue their game. Those record companies and their lapdogs have made a lot of money by controlling the distribution of music. That worked well when distribution was difficult and they could control it - but this is a brave new world where music is digital and it can be distributed across the world as digital data at very low cost and out of the control of those who profited from scarcity previously.

    Much like the surcharge on cassettes or recordable CDs, they'll take the cash and insist on more and more. It's all for the artists, but the artists never see any of the money - instead, the labels continue to figure out ways to cut the artist's share even more.

    This will go on and on and they'll never be satisfied. The only real answer it to say NO and put these leeches out of their misery. Will our corporate overlords have the backbone to do this? I don't know...

  4. The death rattle... by TysonPeppler · · Score: 3, Interesting

    ...of a dying industry.

    Honestly, the music landscape is changing; the format is changing. It isn't a bad thing that corporations will have to find other sources of revenue due to society changing the way it obtains/listens to/communicates the media of music.

    There may be less money in music after the dust has settled but extortion is not the answer. Diversify or fall.

    Its interesting. Usually changes in industry require new technologies - new hardware technologies. Think digital cameras vs film. Alot of film corporations (agfa, konica) no longer exist in that aftermath. This is subtlety different; it is a change in social thinking. If 80% of kids pirate, then it should not be considered pirating. It should be legalized and the new way of doing things. There are new ways to make money from this.

    Where will the corporations put the money gained from isps? Obviously into new lawsuits.

  5. ISPs legal responsibilities? by trawg · · Score: 3, Interesting

    Do they actually have any? Surely their responsibilities begin and end with complying with law enforcement requests to provide details of users suspected of copyright infringement.

    Sort of sounds like a scare tactic; I can't imagine ISPs falling for it - aren't they 'common carriers' specifically so the responsibility for what people do with their network _doesn't_ fall on them?

    1. Re:ISPs legal responsibilities? by kent_eh · · Score: 2, Interesting

      If the ISPs can give varying levels of priority to traffic with different destinations, or characteristics, or "agreements" (I.E.:the opposite of net neutrality) then I should think that the ISPs become nothing like common carriers, and have full liability for everything that they permit thru their pipes...

      If the ISPs start collecting for music downloads, then one might expect them to learn how to differentiate between music and lolcats pictures.
      And as soon as they demonstrate that ability, then every organization (government, trade cartel, extremist religon...) will require them to intercept, log, and shut down anything that the those groups finds objectionable.

      Is that really in the ISPs interests? Or anyones interest (except wannabe totalitarian governments and control freaks)?

      --

      ---
      "I can't complain, but sometimes still do..." Joe Walsh
  6. No. Just no. by symbolset · · Score: 4, Interesting

    And then there were a few providers who wouldn't pay. They set up a new network where this practice was prohibited, at the time called the Othernet. Since it was a new network they could use the open technologies of the Internet, but avoid the chains of legacy technology like IP v4.

    This proved to be the revolution that transformed intellectual property. Because the Othernet required secure Onion Routing protocols and packets protected by public key encryption fast ASICs to make the requirement fast and reliable were developed. The logic from these ASICs became embedded in the logic for Othernet core routers. The features were found to be popular on Internet and intranet routers as well, and so became an industry standard feature no vendor could avoid.

    On the Othernet it was impossible to determine who sent what to whom. Naturally this became a haven for the criminal element, the disaffected and the insane. Here also though was a channel for open discussion free from fear of oppression. The Othernet begat Radio Free Othernet and the numerous cells responsible for the October Rebellion culminating in the Halloween event referred to in your history books as "the day they hanged the lawyers."

    The market for the classic Internet shrivelled as its proprietors folded one by one. Eventually the last desperate holdouts were absorbed into the Othernet. Although the official name for the network is still the Othernet for casual purposes it is now referred to as the Internet.

    --
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  7. If RadioHead or NIN would act quickly by CrazyJim1 · · Score: 2, Interesting

    Famous artists could have their own distribution models set up merely because they have a good name. All they'd have to do is sign out contracts with indie music they endorse.

  8. Who do I get a refund from... by Bubbahyde · · Score: 2, Interesting

    ... if I don't like whats available?

  9. Re:Royalties? Where? by BlueStrat · · Score: 2, Interesting

    I intend on distributing my music through the web, how can I get in on those payments?

    I believe Steve Albini has the procedure for that outlined here:

    http://www.negativland.com/albini.html

    In other words, if you're not signed to a major label, fugettaboutit!

    You think they want to share any money with the competition?

    Cheers!

    Strat

    --
    Progressivism (aka US 'Liberalism'): Ideas so good they need a police/surveillance-state to enforce.
  10. Re:Complete change of strategy by h4rm0ny · · Score: 2, Interesting


    All of which is an interesting debate, but not a factor in this push. This is just an extension of the tax on blank media that goes to the music industry. I don't want this and I don't see why I should get dragged into it. But the whole system is dependent on not having some ISP users choosing not to opt in (because if the aim is stopping piracy, how would it work otherwise). Additionally, a system like this would be open to large scale abuse in increasing the power of the big labels, potentially raise prices of actually purchasing music and quite likely require extensive monitoring of your Internet traffic.All of these, but particularly the first and last, are solid reasons why this needs to be shot down now. The issue of whether the RIAA are nice or not can be separated neatly from this one (though I personally think they fall into the category of 'not nice,' myself).

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    Aide-toi, le Ciel t'aidera - Jeanne D'Arc.