Slashdot Mirror


17,000 Downloads Does Not Equal 17,000 Lost Sales

Andrew_Rens writes "Ars Technica has a story on a ruling by a US District Judge who rejects claims by the RIAA that the number of infringing downloads amounts to proof of the same number of lost sales. The judge ruled that 'although it is true that someone who copies a digital version of a sound recording has little incentive to purchase the recording through legitimate means, it does not necessarily follow that the downloader would have made a legitimate purchase if the recording had not been available for free.' The ruling concerns the use of the criminal courts to recover alleged losses for downloading through a process known as restitution. The judgement does not directly change how damages are calculated in civil cases."

29 of 398 comments (clear)

  1. Exactly right! by Stormx2 · · Score: 4, Funny

    I have like ~1,000 albums downloaded. Would I have the money to buy 1,000 albums? Hell no. Not unless I sold all my possessions.

    Download != Lost Sale

    1. Re:Exactly right! by russotto · · Score: 4, Funny

      I have like ~1,000 albums downloaded. Would I have the money to buy 1,000 albums? Hell no. Not unless I sold all my possessions.

      RIAA: That'll be $7220 in "restitution", plus $750,000 minimum in statutory damages. Or you can just use the suicide booth down the hall; if you make a statement as you enter to the effect that "this is what happens to downloaders", we won't hound your family for more than half of the judgement.

    2. Re:Exactly right! by MightyYar · · Score: 4, Informative

      Download != Lost Sale

      This is especially true for me, since I always check RIAA Radar before purchasing an album. If it's an RIAA artist, then they don't get any money.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    3. Re:Exactly right! by SatanicPuppy · · Score: 5, Informative

      That got shot down; a judge ruled that just having the file available for download did not constitute damages unless there was proof that that file had been downloaded.

      --
      ad logicam Claiming a proposition is false because it was presented as the conclusion of a fallacious argument.
    4. Re:Exactly right! by blueg3 · · Score: 3, Informative

      There are some differences between what you're talking about and the actual situation in the article.

      This person is actually the operator of a torrent site, not a peer. He's already received fines and prison time for the sharing others have done using his site. The RIAA/MPAA asked for restitution in addition, which is based on actual damages. (The typical sky-high figures are fines and statutory damages.)

    5. Re:Exactly right! by TheVelvetFlamebait · · Score: 4, Insightful

      See, I think you are part of the problem in this. On one hand, you say the RIAA doesn't deserve money from you. On the other, you illegally download their creations, sending a clear message that you have some demand for what they offer. If you want the RIAA to go away, just ignore them, and everything they create. While people download their stuff, they can justifiably whine about people ripping them off (because even though 17,000 downloads != 17,000 lost sales, it's also true that 17,000 downloads != 0 lost sales).

      --
      You know, there is a difference between trolling and pointing out the flaws in your reasoning. Just saying.
    6. Re:Exactly right! by MightyYar · · Score: 5, Interesting

      See, I think you are part of the problem in this.

      That may be true, but I really don't care. You'll never get a large enough group of people to boycott, so my feeling is that the best way I can contribute to their demise is to spread their product to all who want it, for free.

      While people download their stuff, they can justifiably whine about people ripping them off

      I don't care if they feel or sound justified. I just want them to make less money. The fact is that I can download their stuff for free with little chance of repercussions, and I can show others how to do the same. It's already forced them to change quite a bit... DRM free music from all the major studios - wow, what a difference a few years of bloodletting makes!

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    7. Re:Exactly right! by mcgrew · · Score: 4, Insightful

      You'll never get a large enough group of people to boycott

      Then how do you explain their abysmal sales? Piracy? No, the years-long established boycott is working, but they're not blaming me and our boycott, they're blaming you and your piracy.

      Stop downloading that crap. Download their competetion, the indies, instead. Most indies WANT you to download.

    8. Re:Exactly right! by mcgrew · · Score: 4, Insightful

      From Lawrence Lessig's Free Culture (I've abridged the quote drastically)

      File sharers share different kinds of content. We can divide these different kinds into four types.

      There are some who use sharing networks as substitutes for purchasing content.

      There are some who use sharing networks to sample music before purchasing it.

      There are many who use sharing networks to get access to copyrighted content that is no longer sold or that they would not have purchased because the transaction costs off the Net are too high.

      Finally, there are many who use sharing networks to get access to content that is not copyrighted or that the copyright owner wants to give away.

      From the perspective of the law, only type D sharing is clearly legal. From the perspective of economics, only type A sharing is clearly harmful.

      Type B (try before you buy) can do nothing but increase sales, and every study not financed by the recording industry has concluded that "pirates" spend far mor of their money on music than non-pirates.

      Lessig's book is available online under a GPL license, as well as in bookstores. Oddly, being able to legally "pirate" it hasn't kept it out of the bookstores, despite the atti-pirates' bleating that if you can get it for free you won't pay for it.

      Only thieves have the mindset "if I can get it for free I won't buy it". Most people have scruples. Unfortunately the people in the RIAA labels don't.

    9. Re:Exactly right! by TheVelvetFlamebait · · Score: 3, Insightful

      I meant that I don't care if I am perceived to be a problem.

      When I told you that I perceived you as part of the problem, I actually meant, a part of the problem, not just some external fuss that doesn't affect you. It's a problem for you too, and a problem for people you know. In your efforts to hurt the RIAA, you may be only hurting them temporarily, and helping them gain a stronger stranglehold on policing your communications, and invading your privacy. Your actions may leave them as an unprofitable business with significant, almost universal demand, which makes them a prime candidate for government subsidies. Your actions allow (and encourage) others to be part of the same problem, fuelling and exacerbating it.

      If you were to boycott them entirely, and spread the message as far as you can, you might actually make a dent in downloads and sales. Then again, maybe people actually do want the RIAA's music, and there's not much you can do about it. Whatever it is, what you are doing isn't helping anyone.

      --
      You know, there is a difference between trolling and pointing out the flaws in your reasoning. Just saying.
    10. Re:Exactly right! by techprophet · · Score: 3, Informative

      No, being fined for buying something and then downloading it again (or visa-versa) is slavery.

    11. Re:Exactly right! by StellarFury · · Score: 5, Informative

      Oh shut up. Seriously, "wage slavery"? You've got to be trolling.

      Unless you want to supply your own means to live - farming crops, building and repairing your house, getting your own water, making your own clothes - then you have to get a job for money so you can pay other people to do those things. This is not slavery, it's an almost-universally adopted alternative to self-sufficiency.

      Property ownership and medical attention are not rights. We have the freedom to PURSUE life, liberty and happiness, not the right to them. You work in exchange for modern conveniences. It's a very, very complex barter system, but it most certainly not slavery. Suck it up.

    12. Re:Exactly right! by Trailer+Trash · · Score: 3, Insightful

      Then how do you explain their abysmal sales? Piracy? No, the years-long established boycott is working, but they're not blaming me and our boycott, they're blaming you and your piracy.

      Their sales are explained in a couple of ways. First and foremost, their sales were bouyed for a few years after the advent of CDs (the 90's) by people replacing vinyl with CDs. I gave them a lot of money to do just that. Then I stopped. Second, their current music is substandard by any measure - they are so desperate to just use a formula that there's little risk-taking nowadays.

      Then there's digital downloads. They could have entered this game early and easily made the move from CDs to downloads. Instead, Steve Jobs dragged them kicking and screaming into it, and it still took him, what, 7 or 8 years to finally get them to give up on DRM? Their cluelessness has definitely hurt them.

      Finally, their sales aren't off that much. They're down 10-20% from the high. No big surprise given the above.

      I remember during the last recession (circa 2002) when the MPAA was trying to push through their "superdmca" bill in the states, and I sat across from their slimy lawyer Geoff Beauchamps in a meeting with our state representative. He lamented that the record industry's sales were off by 10%. I asked him how they'd kept their sales up that well in a recession, as mine were off by 50% (I wasn't kidding). Music is non-essential, people are going to buy bread before they buy a CD.

      Anyway, they've spent years digging the hole that they're in, and most of what they're doing now is looking for a better shovel.

    13. Re:Exactly right! by NewYorkCountryLawyer · · Score: 4, Informative

      This person is actually the operator of a torrent site, not a peer. He's already received fines and prison time for the sharing others have done using his site. The RIAA/MPAA asked for restitution in addition, which is based on actual damages. (The typical sky-high figures are fines and statutory damages.)

      Correct. And where this ruling becomes relevant to the statutory damages civil cases is that (a) the disproportion of the statutory damages being sought to the actual damages has been decried judicially and is the basis for a constitutional attack in several of the civil cases, such as Capitol Records v. Thomas, SONY BMG Music v. Tenenbaum, and others, and (b) the theories which the RIAA lawyers have used to justify the size of the statutory damages are the identical theories whose logic was just shot down by Judge Jones.

      --
      Ray Beckerman +5 Insightful
    14. Re:Exactly right! by hobbit · · Score: 4, Insightful

      I thought I had spelled it out enough for you, but evidently not.

      When you are a slave, no matter what you do, you cannot gain your freedom.
      When you face potential damages for downloading copyrighted songs that you don't want to pay for, you have the choice of not downloading them.

      Do you understand the difference between the two situations? Then you understand that your forefathers would be horrified at your cheapening their experience by likening it to your own position.

      The straw man is yours: I never said that you said anything about your black brothers being inferior. You said that the position you would find yourself in if you downloaded music illegally (facing damages) is like slavery (i.e., unavoidable). The implication is clear: you have no choice but to download music without the permission of the copyright holder. The law says that this is stealing, so you imply that you have no choice but to steal.

      --
      "Wise men talk because they have something to say; fools, because they have to say something" - Plato
    15. Re:Exactly right! by Jor-Al · · Score: 3, Insightful

      Then stop downloading songs that you don't have permission to do so, then it's pretty easy to avoid every having to pay a single cent in those fines.

    16. Re:Exactly right! by aztektum · · Score: 3, Interesting

      From a point of view the parent has a point. Another poster on /. recently posted that he makes less than 10k/year and supports himself, his wife and their two kids in their $40k fixer upper home that was nearly paid off.

      How many times a year do you have to call a plumber or electrician, really? There is a line between working for modern convenience and working to support an economy based upon gluttonous consumption. Game consoles, fancy restaurants, Wal*Mart's shelves full of junk are way outside the realm of necessity as far as leading a healthy and fulfilling life.

      In a sense we "slave away" in our day jobs for what purpose? I read a paper a while ago (I don't remember from where exactly, but it was a pretty prominent university), dated sometime in 1996 which suggested our economic output was so far beyond that of 50 years prior we could all take a way more vacation than we do without any impact to our culture (in fact I believe it said 2 years per individual). How much MORE is the globe producing ~13 years later?

      Property ownership isn't a right? Fifth Amendment? And I'm pretty sure you cannot be denied medical treatment if there is immediate need and if such a denial would lead to death or lifelong suffering.

      While I'm not about to throw in the towel on the world I grew up in and know, I am personally looking to shed excess and focus on a more fulfilling (to me) way of life. This includes reducing the amount I spend on "things" and increasing the amount I spend on experiences (travel, guitar lessons right now). At some point, I really do plan on growing as much of my own food as I can, working on maintaining my own house, etc.

      What good is having someone else do all that for me if I have to work my life away to pay for it and not enjoy it?

      --
      :: aztek ::
      No sig for you!!
  2. Comment removed by account_deleted · · Score: 3, Insightful

    Comment removed based on user account deletion

  3. And do they factor in by clickclickdrone · · Score: 3, Insightful

    The albums I've bought that I wouldn't otherwise have had I not been able to download and try it first? I buy MORE albums now that I did before Napster et al opened my ears to new artists and songs.

    --
    I want a list of atrocities done in your name - Recoil
    1. Re:And do they factor in by Anonymous Coward · · Score: 3, Interesting

      I have purchased some albums multiple times due to loss, wear, theft, etc. For example, I have purchased the Back in Black album by AC|DC 6 times: 1 LP, 3 Cassettes, and 2 CDs. When the last CD got scratched beyond repair, I said the heck with it and downloaded the songs. Now, technically, doing that was illegal. But seriously, how many times should I have to purchase the same music?

  4. Common sense prevails! by cashman73 · · Score: 5, Insightful

    I'm with the Judge on this one! Even when I first started downloading music on Napster, I often wanted to get a better perspective of a particular musician or group before purchasing CDs or going to a concert. There are a lot of artists out there whose music I enjoy that I would not have if I had not downloaded their music. Much in the same way as listening to the radio -- except that, thanks to major corporations buying out all the radio stations in the country, that media is now dead. Sadly, the music industry neither has accepted this, nor have they embraced the new media (internet). Hopefully, they'll eventually realize that you can't sustain an entire industry based on income from lawsuits alone, and get with the times. If they don't get this, then I say, let 'em die!

  5. 1. perform a song by circletimessquare · · Score: 5, Interesting

    2. distribute it online for free
    3. make cash via ancillaries: special fan material, concerts, etc.

    this is the economic model of the music industry for the future. probably for books and movies too

    of course, there is always room for step 1.5: go into contract with a traditional music conglomerate to massively hype your music and reap larger windfalls of ancillary cash. this represents though a radically different business model for the traditional industry stalwarts: promoter. and nothing more. a much smaller financial footprint. oh well

    but what there is NO more room for is revised step 2: charge for your music online

    yes, itunes is radically successful and profitable. but mainly because it matches a low price point for a useful service: quick download, quality assurance, robust cataloging, easy searching. none of which can't eventually be beaten by competing free services as the riaa and the dead business philosophy it represents fades away

    recorded music, from now on, is nothing more than advertising material

    advertising material for revenue streams comprised of fan-appreciated ancillary materials and live concerts

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
  6. It's a simple matter of cost vs benefit. by fructose · · Score: 5, Interesting

    This is basic economics. If the perceived cost doesn't outweigh the perceived benefit, then the rational actor won't do something. IOW, if the cost of a song is more than someone thinks it's worth, they won't buy it. But if the cost is effectively zero, then it only takes a small benefit to make it worthwhile to download.

    I mean, seriously people. I'm no economics expert, but I did take the required class in high school, and I'm pretty sure that was covered. Do these law degree holding people really think you can ignore basic economics and not expect anyone to realize it?

  7. Living proof by Rinisari · · Score: 4, Insightful

    There's one band in particular whose entire discography I downloaded. I couldn't find anyone who has the CDs and the previews on Amazon were insufficient. Within a month, I liked it so much that I wanted to have higher-quality, lossless rips and to support the band, so I bought every album the band, and have bought every one since.

    I know I'm certainly in the minority in my desire to support the band for its efforts, but there are more people out there like me.

  8. Re:Economics 101... by clone53421 · · Score: 4, Informative

    Damn it, got the arrow pointing the wrong way... I was too concerned about getting it to show up at all what with the < and all.

    --
    Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
  9. Lost sale != total loss by mangu · · Score: 3, Insightful

    If you had read the ruling, you'd have noticed that this judge seems to be smart enough to realize that, even assuming a sale was lost, the amount the victims lost is not the same as the sale price.

    The price of sale is equal to cost + profit. If a CD costing $10 is shoplifted instead of sold, the seller loses $10. If a CD is downloaded illegally, the seller may claim he lost a sale, but he cannot claim he lost the CD he had to produce and deliver to the store at a price. He still has the CD to sell, at a profit, to another customer.

    I wonder what the reaction would be if a judge told the RIAA this: "OK, you lost a million sales. You can get $10 million in restitution, under the condition that you manufacture and deliver one million CDs to the defendant, who is free to sell those CDs at whatever price he can get".

  10. exagerated claims lead to bigger court wins $$$$$$ by Scrameustache · · Score: 3, Insightful

    You guys are kidding yourselves if you think that one pirated song equals one lost sales.

    I do not think they're kidding themselves; I think they're deliberately fooling others, for fun and profit.

    --

    You can't take the sky from me...

  11. Re:Your crappy music is not worth its iTunes price by TheVelvetFlamebait · · Score: 3, Interesting

    Try this one instead:

    "I don't want to pay the iTunes price"

    These are the ones that make up most of the lost sales.

    --
    You know, there is a difference between trolling and pointing out the flaws in your reasoning. Just saying.
  12. $150,000 per song my.... by shmlco · · Score: 3, Insightful

    "Penalizing me or my countrymen 1-to-2 dollars for every song we download is fair."

    Excuse me? When is a penalty for performing an illegal act supposed to be "fair"? First, charging the same price as a legitimate download definitely isn't fair, and actually is an INCENTIVE to steal.

    What if you were caught attempting to steal a CD and they only charged you the price of the disk? Everyone would try to steal. Best case, you get away with it, and worst case, you pay no more than if you had paid the legitimate price. Where I live the fine for littering and dumping trash is $1,000. Is that "fair"? Don't know, but what I do know is that you don't see many people throwing trash out the windows of their cars. The risk simply isn't worth it.

    And what's with the "tree of liberty" BS? Attempting to equate stealing a purely discretionary item that's available from plenty of legitimate sources with patriotism is simply laughable from one side, and an insult to those who died fighting for our liberty on the other.

    Finally, try to RTFA for content. The article does NOT say anything about "Penalizing $150,000 for every [song] song..."

    FTFA: "For example, the RIAA said that 183 albums were transferred through Dove's server 17,281 times, then multiplied that by the wholesale price of a digital album in 2005 ($7.22) to conclude that its member companies were owed almost $124,769 in restitution..."

    That's $124K TOTAL, and not $150K PER SONG. (And charging a "fair" price per album, BTW.) Making up your own numbers doesn't help your argument, as it makes people wonder just what else you're lying about...

    --
    Any sect, cult, or religion will legislate its creed into law if it acquires the political power to do so.