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Record Labels Sue Spanish P2P Pioneer For $20M

elguillelmo writes "Promusicae, the Spanish record industry association, has sued MP2P Technologies and its founder, P2P pioneer Pablo Soto, for $20 million, citing unfair competition. Soto is behind the recently launched Omemo, an open source social media storage platform that allows users to share files anonymously, and the MP2P protocol, among other developments. Soto announced the organization's intention to defend itself in a statement published on his blog (in Spanish, Google translation)." TomTheGeek notes related news that Warner Brothers has admitted it employed one of the investigators in the case against the Pirate Bay founders. We discussed initial reports of this controversy last month.

23 of 69 comments (clear)

  1. Stupid legal system by mrbluze · · Score: 4, Insightful

    It matters not whether you're in the right or not, but if you get sued it ruins your year.

    --
    Do it yourself, because no one else will do it yourself. [beta blockade 10-17 Feb]
    1. Re:Stupid legal system by AuMatar · · Score: 3, Interesting

      Loser pays just changes the strategies slightly. They still have the advantage.

      Lets say I'm on the right side of the case. Lets further say that I have a 90% chance to win. However, their legal fees total to 1 million dollars. That would bankrupt me. I won't fight the case, because even though the law and probability are on my side, I can't afford to lose that money. My upside is I win $0, my downside is -$1m, my average is -$100K.

      Loser pays alone is not enough. You have to cap losses, or you have the situation where a little guy can never afford to pursue justice.

      --
      I still have more fans than freaks. WTF is wrong with you people?
    2. Re:Stupid legal system by jacquesm · · Score: 2, Interesting

      The legal system is a lottery anywhere in the world.

      Incidentally, John Walker pretty much foresaw this whole business in his 2003 document the digital imprimatur.

      It makes interesting reading to say the least and if his future view of the headwind for 'p2p' is correct this is really only just beginning.

  2. Unfair Competition by NoobixCube · · Score: 4, Insightful

    The wording of that seems to have nothing to do with the legality of sharing files. Promusicae just don't like competing. At least there's one such organisation that says what it means.

    --
    Admit it. You post strawman arguments as AC so you get modded Insightful for refuting them, rather than Troll
    1. Re:Unfair Competition by fletch44 · · Score: 3, Insightful

      Since when has Spain been a developing country? It's part of Western Europe, and an incredible place to visit.

    2. Re:Unfair Competition by Beriaru · · Score: 5, Informative

      Well, the thing is, in spain is legal download music. We're being extorted with a private tax (the 'canon') for the concept of 'private copy'.

      When you buy recordable CDs you pay that 'canon' (which is more expensive than the CD). That way, you are free to have private copies of records.

      The record industry associations have tested the legality of download music, and have lost. So they are testing new ways of being an asshole.

    3. Re:Unfair Competition by Weedlekin · · Score: 3, Insightful

      "The wording of that seems to have nothing to do with the legality of sharing files."

      That's because non-commercial copying is legal is Spain, so their media industry failed when they tried to claim it wasn't in court.

      --
      I'm not going to change your sheets again, Mr. Hastings.
  3. bucket full of crazy by ILuvRamen · · Score: 3, Insightful

    I assume this is like oh no, it's unfair competition that they're giving away their music for free. Okay time to play judge. Here's what I've got to say: "Sir, this company's product is software, not music. Case dismissed" *bangs gavel*

    --
    Google's Super Secret Search Algorithm: SELECT @search_results FROM internet WHERE @search_results = 'good'
  4. Re:Yeah sure by Ethanol-fueled · · Score: 2, Funny

    They should just sue the human race for wanting something for nothing. They'd end up suing themselves, too.

  5. Um hypocritical much? by aceofspades1217 · · Score: 2, Funny

    unfair competition? That is like Microsoft suing Novell for competing with them. I mean what do have against them. "We feel it is immoral and highly harmful to standardized business practices to provide an alternative to standard more expansive forms of distribution." ...

    WHATDAFUX

  6. What next? by aceofspades1217 · · Score: 3, Interesting

    I mean what the heck you can't sue someone simply for providing software which "might hurt your business". Lets wait for Microsoft to start suing download managers for having the possibility of being used to download Microsoft :P

  7. Re:Yeah sure by Dan541 · · Score: 3, Insightful

    What the hell is unfair competition and how can you sue for it?

    Seems pretty messed up that you can sue someone for being better than you.

    --
    An SQL query goes to a bar, walks up to a table and asks, "Mind if I join you?"
  8. Re:Yeah sure by MR+LOLALOT · · Score: 4, Informative

    The funny about this is here http://en.wikipedia.org/wiki/European_Community_competition_law

    The unfair competition from the Competition Law of the EU only applies to big companies and/or monopolistic companies. MP2P is neither. They don't even play in the market PROMUSICAE does.

  9. The opposite side of the "entitlement society"... by plasmacutter · · Score: 4, Insightful

    This particular lawsuit cannot hide behind the evil copyright infringers.

    Reaganites in the us (im sure every nation has their version of them in one extreme or another) wail on endlessly about the freeloaders who think they are "entitled" to welfare, while conveniently ignoring the elephant in the room.

    Today's corporate controllers feel their companies not only have the right to exist, and therefore receive massive tax-payer bailouts the magnitude of entire state budgets, but think they have the right to profit. This is particularly blatant with the music and film industries world wide, who count a person's refusal to buy as "stealing" and characterize emerging business models as murderous.

    oh snap! that home depot across the street just stole the revenue lowes was entitled from everyone who turns left off the exit instead of coming down the oncoming lane from the opposite side of the bridge!

    A more convenient location for northbound and westbound travelers is an unfair competitive advantage! where is my anti-trust council!

    --
    VLC FOR MAC IS DYING! IF YOU DEVELOP, PLEASE SAVE IT!!
  10. Now that WE are controlling music distribution, by Simonetta · · Score: 3, Insightful

    Now that WE are controlling music distribution, we should give some thought over what exactly we are going to do with the situation.

        There appears to be a great struggle going on between the four global music/film corporations and the thousands of technically advanced internet applications programmers over the ability to control (or to be more precise, the ability to remove controls) over the distribution of recordings of music and films.

        Incredibly, the internet applications programmers appear to be winning. Otherwise the big four companies wouldn't be going to such extreme legal measures to stop them.

        Now would be a good time to ask ourselves whether we really want this. We should consider the long-term ramifications of destroying the music/film distribution industries. Remember that ancient Chinese curse: be careful about what you ask for, since you just might get it.

        Basically what the technical elite want is to have free or nearly free access to all the media recorded products currently offered for sale by the big four. The real question here is whether they want this access for themselves only or for everyone. Or whether the technical elite want to be able to control who gets access to free media product and how much free media product the technical elite (those people who write the P2P programs) plan to distribute.

        The big four media companies fear that the P2P programmers are going to attempt to make all commercial media product free to everyone, and put them out of business. But this is absurd. Because there are billions of people who depend on the big four for their continued access to new product, and the technical elite (those who write and to a limited extent, control the P2P environment) don't have the interest or the ability to supply all these people with a continuous stream of new media product. They are programmers, not media distribution executives.

        If the big four CEOs were smart and seriously wanted to crush the P2P community, they would cut back on product development and releases and blame it on the P2P programmers. Instead they make exciting ads telling people that it is illegal to get free media product by using P2P programs. Which is the same thing as educating people who weren't aware that it was possible to get free music and films by using P2P. Which is really dumb on their part.

        Because the big four won't consider cutting back on product release in order to crush the P2P community, then it must be that the revenue streams that they are getting from new product is far, far greater than the revenue that they are losing through the P2P programs enabling of free access to media product. So this anti-P2P vendetta is just a personal thing between the big four executives and the P2P developers; a 'my dick is bigger' contest between these two small groups.

        The big four executives and the P2P developers would be wise just to sit down and work out a 'cap and trade' agreement that would give the P2P developers free access to media product in return for the P2P developers agreeing to limit the distribution of this product to only the people whom they consider to be 'cool'. Since this is what is going to happen eventually anyway, they should formalize the situation before someone (someone important) gets hurt by allowing the lawyers to run amok.

        How come Slashdaughters don't think like this and talk like this whenever this topic comes up for discussion?

  11. Double attack on P2P by the Spanish RIAA by Patatoffel · · Score: 5, Informative

    In Spain, SGAE, Promusicae and others (spanish RIAAs) are paid a percentage ('canon') of the price of storage devices: CDs, DVDs, printers, hard drives, cameras... in compensation for their hypothetical losses because of P2P. But now they are showing that they also want to adopt the US way to 'defend' their copyrighted media, so we'll end up being f*cked twice. And our ruling party, the PSOE, calls itself leftish. Contradictory, isn't it?

  12. Living in Spain myself, by faragon · · Score: 3, Interesting

    Spanish RIAA-like associations (SGAE and subsidiaries like Promusicae, etc.), are being investigated right now because of lack of transparency, illegal politic finantiation, blackmail ("chantaje").

    The prosecution is nonsense and will result in a null case, but their intention is to stop actions not by legal reason, but by legal intimidation (in Spain there is *fear* about speaking against the SGAE in public media, because of you can be sued easily). Many people do google bombing refering "http://www.sgae.es/?ladrones" as a measure to protest against these "kind and polite organizations", so when you look for "ladrones", they appear in the first place.

  13. Big hard drives = Piracy War Over! by Adeptus_Luminati · · Score: 4, Insightful
    The piracy war will ultimately be won by pirates. So all these law suites are kind of pointless in the end. Even if they manage to kill P2P somehow, I can still go to my buddies house and swap movies with a portable HD. And eventually, in the not too distant future, we'll be able to swap the ENTIRE collection of every movie and song EVER made via snicker-net!

    Check it out:

    Assuming 1 aXXo movie = 700 MB, the average MP3 = 5 MB, and a $200 hard drive increases in capacity every 1.5 years (not unreasonable), then:

    -5 years (2012) - Weâ(TM)ll have 7 Terabyte hard drives costing $200, capable of storing 9,643 Movies or 1.3 Million songs!!

    -10 years (2017) - Weâ(TM)ll have 51 Terabyte hard drives costing $200, capable of storing 73,225 movies or 10.3 MILLION songs

    -15 years (2022) - Weâ(TM)ll have a 389 Terabyte hard drive costing $200, that can store 556,000 Movies!!! or 77.8 Million songs (Is there even that many songs in the history of the world?!?!?)

    -20 years (2027) - Weâ(TM)ll have a 2956 TERABYTE hard drive, costing $200, that can store 4.2 MILLION MOVIES or 590 MILLION MP3s!

    ==================
    GAME *UCKING OVER!
    ===================

    By 2030, we will have every movie and song in the world stored on our freaking wrist watches.

    --
    No trees were killed in the making of this post; however, many trillions of electrons were horribly inconvenienced.
    1. Re:Big hard drives = Piracy War Over! by BlueParrot · · Score: 4, Insightful

      Lets say a song is about 5 minutes long

      20 songs an hour
      480 songs per day
      175.200 songs per year
      17.520.000 songs per century.

      That is assuming you don't sleep, that you never listen to the same song twice, and that you never do anything but listen to songs. For music it has been game over for a long time... Movies probably have a decade or so left, but then they are fucked too.

  14. On the Warner/TPB side note by catxk · · Score: 2, Interesting

    The police officer who flipped from the force to Warner has allegedly flopped back and is again in uniform.

    Swedish newspaper Sydsvenskan on the matter:

    http://translate.google.com/translate?u=http%3A%2F%2Fsydsvenskan.se%2Fnojen%2Farticle331913.ece&hl=en&ie=UTF8&sl=sv&tl=en

    --
    Don't be crazy anymore!
  15. Re:The opposite side of the "entitlement society". by Stanislav_J · · Score: 4, Insightful

    Today's corporate controllers feel their companies not only have the right to exist, and therefore receive massive tax-payer bailouts the magnitude of entire state budgets, but think they have the right to profit. This is particularly blatant with the music and film industries world wide, who count a person's refusal to buy as "stealing" and characterize emerging business models as murderous.

    Not just the right to make a profit, but the right to ever-increasing profits. Used to be if a company's profit dropped, there would be soul-searching to see how they could change and adapt their methods and products to better suit the current economic situation, to more accurately meet consumers' needs, or to effectively compete against other companies. That has changed -- now, if the bottom line starts dropping, it's never the company's problem, it's all those outside forces that must be bullied, threatened, lobbied, bribed, or regulated into submission. "We've been doing it this way for X number of years, and we want to make sure that we can still do everything the same way, only keep making more and more money."

    It's not just the record and film industries that see the Internet as a threat. Newspapers, magazines and other traditional media are running scared. Governments fear the notion of people actually forming and sharing their own opinions instead of being told what to believe, and corrupt governments and politicians fear their carefully obfuscated dirty laundry being hung out on the Net for all to see. As the Net grew in popularity, the initial corporate attitude was, "aw...how cute." Then it became, "hmmm.....how can we make a profit off this thing?" If they failed to do so, it then became "the Internet is evil and must be killed, or at least molded and shaped to serve OUR needs."

    --
    "Every great cause begins as a movement, becomes a business, and eventually degenerates into a racket." -- Eric Hoffer
  16. Sonny Bono owns you by tepples · · Score: 2, Insightful

    The copyright system as I understand it is that, in exchange for publishing media into the public domain, you receive an exclusive right to distribute what you publish, protected under copyright law. "Public domain"? It appears you misunderstand it. Nothing first published after the mid-1920s (US) or whose last surviving author died after the mid-1950s (Europe, Japan, Australia, and many other developed countries) will ever enter the public domain through expiration of copyright. The reason for this is successive legislative extensions of copyright, such as the Copyright Act of 1976 followed by the Sonny Bono Copyright Term Extension Act of 1998 and the Chastity Bono Copyright Term Extension Act of 2018. And eventually, all possible combinations will be owned.
  17. Royalty for mechanical licensing by tepples · · Score: 2, Insightful

    I think it's like how anyone can do a cover of someone else's song. The original music publisher is still allowed to charge a royalty of up to 9 cents per copy. Sites that offer free downloads can't recoup this royalty.