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Feds Question Big Media's Piracy Claims

WrongSizeGlass writes "CNET is reporting that the GAO's study of big media's piracy claims has raised some questions. (Here are the study's summary, highlights [PDF], and full report [PDF].) 'After spending a year studying how piracy and illegal counterfeiting affects the United States, the Government Accountability Office says it still doesn't know for sure.... The GAO said that most of the published information, anecdotal evidence, and records show that piracy is a drag on the US economy, tax revenue, and in some cases potentially threatens national security and public health. But the problem is, according to the GAO, the data used to quantify piracy isn't reliable.'"

69 of 261 comments (clear)

  1. Not reliable? by odin84gk · · Score: 3, Funny

    So... It was stolen data?

    1. Re:Not reliable? by nacturation · · Score: 4, Informative

      More likely the RIAA/MPAA/BSA/TLA took a sampling of total users connected to a popular torrent and compared that to the total people downloading pirated material from BitTorrent and then extrapolated that to the entire US population to show that everyone's a pirate.

      --
      Want to improve your Karma? Instead of "Post Anonymously", try the "Post Humously" option.
    2. Re:Not reliable? by scalarscience · · Score: 3, Interesting

      Actually my guess is that this is how they're going to finally 'open up' about the ACTA. They need justification to pollute the airwaves/media outlets with false claims that there is no hard data on 'how bad this problem is' since we can't yet track the statistics via beurocracy, so therefore we need mechanisms like 3-strikes so that we can begin to collect info on 'how bad things really are'.

    3. Re:Not reliable? by Shakrai · · Score: 4, Insightful

      More likely the RIAA/MPAA/BSA/TLA took a sampling of total users connected to a popular torrent and compared that to the total people downloading pirated material from BitTorrent and then extrapolated that to the entire US population to show that everyone's a pirate.

      Sounds like the Federal "study" that was done by the NHTSA. Ever heard the claim that ~50% of all fatal crash accidents involved alcohol? Guess how they arrived at that number? They included accidents wherein passengers had alcohol in their systems, even though the drivers were completely sober.

      Lies, damn lies and statistics.

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    4. Re:Not reliable? by Shakrai · · Score: 4, Informative

      you have obviously never driven with a passenger who was whacked out of their gourd.

      The criteria for the study was a BAC of >=0.05. I don't know what your friends are like when they drink, but mine have to drink considerably more than that to get "whacked out of their gourd".

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    5. Re:Not reliable? by fahrbot-bot · · Score: 4, Funny

      They included accidents wherein passengers had alcohol in their systems, even though the drivers were completely sober.

      I was going to make a joke about the effects of "second-hand alcohol" on the driver, but grossed myself out thinking about it...

      --
      It must have been something you assimilated. . . .
    6. Re:Not reliable? by Chris+Burke · · Score: 4, Interesting

      They included accidents wherein passengers had alcohol in their systems, even though the drivers were completely sober.

      And regardless of which car the person who had been drinking is in.

      As in: You're stopped at a red light, passenger in your back seat had a couple drinks, and some douche talking on their cell phone rear-ends you. That counts as an alcohol-related accident.

      --

      The enemies of Democracy are
    7. Re:Not reliable? by Shakrai · · Score: 2, Informative

      It's usually a matter of tolerance. I asked a police officer what the highest BAC he had ever seen was. He told a story about pulling someone over for a broken taillight, she wasn't driving badly and he had no indication that she was intoxicated. When he reached the car he smelled booze and went through the process. She passed all of the field sobriety checks but failed the breath test -- with a 0.61!

      A BAC of 0.4 is the LD50 for alcohol. Most people will pass out at BACs exceeding 0.2. Yet this woman was "sober" enough at 0.61 to pass the sobriety checks and operate a motor vehicle. Turns out she had a number of previous DWIs and a bit of a drinking problem. She had consumed alcohol for so long that her body built up a near super-human tolerance for it.

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    8. Re:Not reliable? by Old97 · · Score: 3, Interesting

      Its a bit worse than that in the U.S. actually. Accidents that are commonly associated with alcohol abuse, i.e. single car accidents at night when the car goes off the road and hits a tree, are also counted as alcohol related with or without any evidence that alcohol or any substance was involved at all. If you fall asleep at the wheel hit a tree and die, that is counted as alcohol-related.

      --
      Very often, people confuse simple with simplistic. The nuance is lost on most. - Clement Mok
    9. Re:Not reliable? by ryantmer · · Score: 3, Insightful

      I completely agree...I just think it's hilarious that a Herculean-size friend of mine drinks like a 100 pound high school chick :-)

      You've obviously not met today's 100 pound high school chicks :-)

      --
      Whatever it is, it's notablog.
    10. Re:Not reliable? by Pojut · · Score: 2, Insightful

      ...touche.

      I keep getting older, they stay the sa- holy crap did she just kill a fifth of bourbon in one go?

    11. Re:Not reliable? by Volante3192 · · Score: 2, Informative

      At least the Census numbers are close. They jive pretty well with the H&HS's survey, performed over the phone at regular intervals. 40 mil's closer than the other side's 15 mil at least.

      http://www.politifact.com/truth-o-meter/statements/2009/aug/18/barack-obama/number-those-without-health-insurance-about-46-mil/
      http://www.politifact.com/truth-o-meter/statements/2009/aug/21/orrin-hatch/who-are-uninsured-hatchs-take/

      You know, I don't think this is the first time you've trotted out how wholly inaccurate that 42 mil number is either.

      Oh, and the best part?
      I don't trust these GAO piracy numbers. They are biased, nonscientific, and inflated. But sadly they'll problably be quoted by politicians during the election, in order to justify why the ACTA Treaty needs to be passed.

      The GAO was studying the studies, and in an even bigger revelation, GAO agrees with you!

      FTFA: "Three widely cited U.S. government estimates of economic losses resulting from counterfeiting cannot be substantiated due to the absence of underlying studies," the GAO said. "Each method (of measuring) has limitations, and most experts observed that it is difficult, if not impossible, to quantify the economy-wide impacts."

      None of those studies put out were from the GAO, instead they were cited as coming from the FBI, CBP and FTC. GAO actually called them and asked for the report. All three came back saying, "what report?"

      So we have a government entity saying these piracy reports are wildly inaccurate. They did something right. Is your mind blown yet?

    12. Re:Not reliable? by Shakrai · · Score: 2, Informative

      I'm not sure what criteria they used. The standard rule of thumb that I learned says your body will eliminate approximately 0.02 per hour. For most males that corresponds neatly to the amount you wind up with from a single drink -- a drink being 12oz of beer (5%), 5oz of wine (12%) or 1.5oz of spirits (40%). Females will usually get a higher BAC increase out of each drink, owing to less body mass and a greater percentage of body fat.

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    13. Re:Not reliable? by zill · · Score: 3, Funny

      Sounds like the Federal "study" that was done by the NHTSA. Ever heard the claim that ~50% of all fatal crash accidents involved alcohol? Guess how they arrived at that number? They included accidents wherein passengers had alcohol in their systems, even though the drivers were completely sober.

      But technically it's true. If I died by crashing into a brewery while driving sober it would still count as a "fatal crash accident involving alcohol".

      accidents caused by alcohol != accidents involving alcohol

      The phrasing is extremely dishonest and deceptive, but it's still true nevertheless.

    14. Re:Not reliable? by rickb928 · · Score: 2, Informative

      From the NHTSA notes in a FAQ found at the National Center for Statistics and Analysis:

      "In order to perform complete-data analysis of FARS data with respect to alcohol involvement, the missing BACs need to be simulated (imputation!)"

      And to explain Multiple Imputation (MI):

      "Multiple Imputation is the state-of-the-art technique to impute missing values. Each missing BAC value is replaced by ten simulated values of BAC using rigorous statistical techniques that consider the interaction of all the characteristics of the case. MI allows for the computation of Standard Errors and Confidence Intervals."

      Sorry, but it sounds like they just make up the missing data using really, really good techniques. But not any actual data, of course. Just other data that they think would indicate what the missing data wouldhave been, assumimg their asssumptions are correct.

      That would be funny if it weren't serious. I think they just stated that to perform a complete data analysis, they have to 'make up' any missing data. How they do it doesn't impress me. If they use correlating data to make what they consider to be valid assumptions, then why bother to input the 'missing' data at all, indeed, just don't bother to use any of that value - just use the correlations and let the assumptions drive your analysis.

      Which is, of course, untenable. That's no longer a valid study. It's guesswork.

      But given the ferocity of the jihad against drunk driving, this is not entirely unexpected.

      Alas. Bad things done in the name of noble purposes. Surely no harm is done, right?

      --
      deleting the extra space after periods so i can stay relevant, yeah.
    15. Re:Not reliable? by Thing+1 · · Score: 4, Funny

      I had an old girlfriend

      You should try a young one, perhaps? Just not too young, please don't think of the children.

      --
      I feel fantastic, and I'm still alive.
    16. Re:Not reliable? by Belial6 · · Score: 2, Informative

      And now we are seeing even worse statistical lies about cell phones.

    17. Re:Not reliable? by commodore64_love · · Score: 2, Insightful

      Yeah but the problem with ANY survey is the simple fact that many citizens say, "No I don't have insurance" even though they do. They are *already* insured by previous government programs like Medicare or SCHIP (all citizens under 18) or SSI (disability), and therefore would not have to pay a dime when they visit the hospital.

      Once you take into account those citizens that are insured by Government, the number drops to 20 million.

      Once you subtract non-Americans (intruders that entered without permission), it drops even further to 10 million (approximately).

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
  2. Just ask by SnarfQuest · · Score: 5, Funny

    Just ask the RIAA for their data on piracy. They should have accurate information.

    --
    Who would win this election: Andrew Weiner vs Andrew Weiner's weiner.
  3. Self interest by Coopjust · · Score: 5, Insightful

    Of course they're going to use whatever statistics, presented in whatever fashion, to make you think that if you don't legislate everything to maximize their old businesses model without change, that everyone will suffer for it.

    It's common sense not to take the RIAA/MPAA at their word. Not just because of their previous questionable tactics (suing individuals, scare campaigns,etc.), and how wrong they have been(like the MPAA saying that the VHS would be "the Boston Strangler" of the film industry when it expanded their market tremendously)... they're going to hate anything that, in their view, has a negative impact on their revenue.

    1. Re:Self interest by schon · · Score: 2, Insightful

      they're going to hate anything that, in their view, has a negative impact on their revenue.

      Not quite - they're going to hate anything that might cause them to change their business model, regardless of the impact (positive or negative) to their revenue.

      Their business model is based on control. Anything that causes them to lose *any* amount of that control - even if it means they make more money - will be viewed unfavourably by them.

    2. Re:Self interest by Pojut · · Score: 4, Insightful

      As a very good friend of mine likes to say, "Treat people as you would like to be treated...unless they betray you. Then you treat them however the fuck you want."

    3. Re:Self interest by mcgrew · · Score: 2, Informative

      TFR in TFA didn't come to the same conclusions as the RIAA. They mostly said "there aren't enough data to kinow" and pointed out a lot of stuff you've read at slashdot that points out that piracy may actually be helpful to the media industry.

      They were, however, down on knockoffs, such as fake airplane parts and the like.

    4. Re:Self interest by nospam007 · · Score: 2, Funny

      '"Piracy" and counterfeiting are not the same thing.'

      Exactly! The Navy caught pirates off captured ships and they had counterfeited Kalashnikovs.
      Can you believe the nerve of those people? Ts.

  4. In Soviet Amerika by Anonymous Coward · · Score: 4, Insightful

    Big media piracy question Feds.

    Get used to it. Capitalism is dead. Corporate socialism is alive and well.

    1. Re:In Soviet Amerika by Shakrai · · Score: 5, Insightful

      Get used to it. Capitalism is dead. Corporate socialism is alive and well [unrulymedia.com].

      That's not entirely true. Profits are still privatized. We've only socialized failure.....

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    2. Re:In Soviet Amerika by Anonymous Coward · · Score: 5, Insightful

      Actually it's called Fascism. And not the slur that those on the 'left' throw at those on the 'right' usually after being called a communist or terrorist.

      From Wikipedia

      Fascists seek to organize a nation on corporatist perspectives; values; and systems such as the political system and the economy.

      Pretty much what we have in this country, when most of the congress critters admit to not reading the bill they're sponsoring (or voting on), but just passing along whatever some lobbyist handed over with a sack of cash.

    3. Re:In Soviet Amerika by Darinbob · · Score: 2, Interesting

      Privatizing the upside and socializing the downside is the only way to get guaranteed win. Risking your own money is for noobs.

      Or to beat a dead analogy... If I pass my test it is because I'm a bright student; if I fail the test it is because the teachers are incompetent.

  5. Thinking about the popularity of D&D by BadAnalogyGuy · · Score: 3, Interesting

    You know, despite the seemingly ultranerdy reputation of Dungeons and Dragons, there are actually quite a few un-nerdy people who play it. Skipping past a slew of big names, I think one super-cool, hyper-athletic example is enough. Vin Diesel. This guy, who plays total badasses in his movies, is actually a laid back D&D player in his spare time.

    How can you effectively attack a position without a comprehensive understanding of it? If you want to say piracy is not leading to a decline in sales, then you need real numbers to back it up. For all the vitriol we throw around here on /., there is a whole lot of anecdotal posturing, but not a whole lot of solid numbers. The same goes both ways, of course, and I'm ecstatic to see the GAO investigating these claims.

    Let's lay myths to rest. The truth is where we must start from, not from our foundation of biases. As long as you think that D&D is just for loser nerds, you'll never be able to understand the game and its enthusiastic audience.

    1. Re:Thinking about the popularity of D&D by bsDaemon · · Score: 2, Informative

      It's a nerd-friendly example about questioning assumptions which GP is using to illustrate his point... about questioning assumptions, which is what the GOA report seems to be doing.

    2. Re:Thinking about the popularity of D&D by SanityInAnarchy · · Score: 5, Insightful

      Look at his name.

      --
      Don't thank God, thank a doctor!
    3. Re:Thinking about the popularity of D&D by MozeeToby · · Score: 2, Funny

      Vin Diesel? Still not seeing the connection.

  6. Should it include by SnarfQuest · · Score: 2, Interesting

    Should piracy claims include finding copies of "Star Trek" on hard drives you bought as Best Buys?

    --
    Who would win this election: Andrew Weiner vs Andrew Weiner's weiner.
    1. Re:Should it include by bmo · · Score: 4, Funny

      Every hard disk not sold by Paramount will be counted as 20 incidents of piracy.

      --
      BMO

  7. God. some common sense from an us. govt agency by unity100 · · Score: 3, Interesting

    apparently they werent able to fill that agency full to the brim with lobby endorsed appointees yet.

    1. Re:God. some common sense from an us. govt agency by m.ducharme · · Score: 2, Informative

      My impression of the GAO (as an outsider) has been that it doesn't put up with much in the way of statistical bullshitting from anybody, and that as a government agency it does its job pretty consistently and well.

      --
      Rule of Slashdot #0: You and people like you are not representative of the larger population. - A.C.
  8. Who's the real 40,000 Ton Metallic Monster? by CorporateSuit · · Score: 3, Insightful

    Let's say that I leave my 1995 Toyota Corolla running outside the Best Buy one day. I come back with my $4 copy of "The Frighteners" to find that my car has been STOLEN! I then file a police report that says my car was worth $6 million... would I be busted for filing a false police report?

    --
    I am the richest astronaut ever to win the superbowl.
    1. Re:Who's the real 40,000 Ton Metallic Monster? by vux984 · · Score: 5, Insightful

      I then file a police report that says my car was worth $6 million... would I be busted for filing a false police report?

      Of course not. I mean, you -did- have a few CDs in the glove box didn't you? That's what 100+ tracks that you have just unlawfully redistributed (and you recklessly assisted in this by leaving the car running)... oh ... wait, yes that would be a false police report. Your losses are closer to $200 Million.

  9. Bollocks by shentino · · Score: 4, Insightful

    I'd bet that the RIAA's settlement devouring extortion machine is doing more damage to the economy than the piracy is...

  10. As a rule of thumb... by MikeRT · · Score: 3, Insightful

    Any self-serving statistic which sounds too big for the group that it's associated with is false. 40% losses from piracy? Unrealistic. 25% of all American women have been raped? Not even close (there'd be more rape victims than all other crimes in most jurisdictions then).

    1. Re:As a rule of thumb... by mcgrew · · Score: 2, Interesting

      Well, that's the thing. You can't tell how many women have been raped, only how many have reported being raped. You can't tell how many people smoke pot, you can't tell how many hookers there are, and there's no way of knowing how many pirates there are and what their motivations for piracy are. A pirated tune or movie may turn into more than one sale, there's just no way of knowing.

    2. Re:As a rule of thumb... by Spad · · Score: 2, Insightful

      No, but you can gather some poorly sourced data, make some self-serving assumptions and then extrapolate the fuck out of them.

    3. Re:As a rule of thumb... by Isaac-1 · · Score: 2, Insightful

      This is part of the problem of continuing to lower the bar on the definition of rape. Keep this trend up then in another 20 or 30 years less than perfectly fulfilling sex will be considered rape.

    4. Re:As a rule of thumb... by kyz · · Score: 2

      To put it bluntly, no.

      At night, I'm in bed with my girlfriend and I'm pretty tired. She cozies up to me and rubs against me in a way that says "let's have sex". I don't really want sex because I'm tired, and I say "no honey, I'm tired", but she pulls a sad, coquettish face, so I change my mind and we have sex.

      Have I just been raped?

      According to the GP, yes I have, hundreds of times by my girlfriend. If only I was a woman, then emancipatory feminism would be there to rescue me!

      "Lowering the bar" for rape happens whenever someone claims their uncoerced choice to have sex was "rape". They may regret their choices, but it's not rape; rape victims don't get a choice.

      --
      Does my bum look big in this?
  11. The article by Sumbius · · Score: 2, Insightful

    Correct if I'm wrong, but doesn't the report mostly concern forged counterweight products and forged products that are sold as genuine? Sure, this also includes the good old pirate dvds that are sold, but it doesn't seem to give much attention to p2p pirating and such. It's mostly about pharmaceutical products.

    1. Re:The article by MozeeToby · · Score: 4, Informative

      In what appears to be a setback for Hollywood and the recording industry, the government said that it sees problems with the methodology used in studies those sectors have long relied on to support claims that piracy was destructive to their businesses. The accountability office even noted the existence of data that shows piracy may benefit consumers in some cases.

  12. Duh! by whisper_jeff · · Score: 4, Insightful

    ...the data used to quantify piracy isn't reliable.

    Um, I'm not sure how to say "DUH!" without sounding like a smartass so, well, let's just call me a smartass.

    DUH!

    Seriously, of course the data is unreliable - it was paid for by the media corporations in an obscure and twisted mass circle of references that would make any academia's head spin. I hope and pray that this investigation is treated seriously and delves deep enough to find the truth that the numbers that the media corporations have been bandying about for years now are all bogus.

    I think everyone would be fine discussing piracy and it's impact on the industries involved just so long as _REAL AND ACCURATE_ numbers were used rather than the trumped up bullshit that we've seen so far.

  13. A second problem... by fuzzyfuzzyfungus · · Score: 5, Insightful

    In addition to the fact that most "piracy" numbers are little more than self-serving bullshit, still warm from the asses of entertainment lobbyists from which they were pulled, is the fact that they all too frequently aggregate multiple flavors of "piracy", each with its own distinct properties.

    For instance, the only way that "piracy" in the sense of "bittorrent kiddies" can threaten public health is by lowering the cost of sedentary entertainment that helps make us lardasses. On the other hand, "piracy" in the sense of "misrepresenting your sugar pills as some copyrighted/trademarked drug" can and does kill people. Similarly, the idea that bittorrent kiddies are of the slightest use to organized crime is silly. If anything, they are the lower-cost competition. On the other hand, buying poorly-copied DVDs from the shady looking street vendor probably does funnel money in dubiously savory directions.

    I assume that this aggregation is largely intentional, allowing a sort of "rhetorical shuffle", where the scariest aspects of each flavor can be pulled out in turn, to create a composite that sounds far worse than it is. Talking about prevalence? Use numbers drawn from casual internet piracy and schoolyard swapping of burned CDs. Talking about risks to life and health? Answer as though all "piracy" involved fake medicine. Playing the "gangs and terrorists" angle? describe all piracy as though it were being conducted commercially by cartels. If you slip from one to the next, without ever clearly distinguishing them, you can fairly easily create an impression that "piracy" has all the worst attributes of its sub-elements.

  14. They Need to Write a Distinction into Their Study by BJ_Covert_Action · · Score: 4, Insightful

    The GAO needs to say, in very explicit terms, just what they are referring to as piracy. For instance, are they talking about the folk that knock off DVDs, repackage them in semi-legitimate looking boxes by the thousands, and pawn them off on the streets and on Ebay? Or are they talking about the folk that torrent [Insert Latest Blockbuster Title Here]. The summary and highlights both talk about risks and issues such as pirated, knock-off pharmaceuticals being a safety problem (although the scope of the issue, they admit, is hard to determine). That's all fine and dandy and more data and investigation certainly does need to be conducted.

    However, the GAO needs to be very strict in saying that, "These harmful effects are caused, particularly, by these harmful activities." Using the blanket term piracy just screams for some bastards at the RIAA/MPAA to hold up investigations like this in some PR forum and say, "See, it really is a problem, we're not just pissing into the wind! Neener, neener, neener," when, in fact, the investigation may be looking into an entirely different market, like the above cited case of pharmaceuticals. I don't have the time to read the full report, yet, but I hope the GAO will be responsible enough to be very clear about which activities, precisely, seem to be correlated with which results. The less they use the term, "piracy," which is a term that has been completely bloated, raped, and thrashed over the past decade or so, the better.

    Of course, this is just my opinion.

  15. More like inflated data by Anonymous Coward · · Score: 3, Funny

    Its no secret that the RIAA/MPAA have been putting up fake torrents to catch pirates for years. When you take that into account, you can easily inflate the number of "pirates" to near unrealistic numbers.

    Company A sets up a torrent hosting a fake copy of Avatar with 1000 seeds, 10000 leechers and 1,000,000 completed downloads.
    Company B does a basic search for "Avatar torrent", sees Company A's torrent and records it.
    Company C, which owns Company A and Company B, then goes to the U.S. government and claims "We lost over a MILLION Avatar sales from piracy! We demand a government bailout!"

    1. Re:More like inflated data by orkysoft · · Score: 2, Informative

      I think they're talking about counterfeit items here. Substandard counterfeit parts in things like airplanes, or even chips with espionage functionality built in to them, or counterfeit medicines, can and do cost lives or compromise national security.

      --

      I suffer from attention surplus disorder.
  16. You don't say... by geminidomino · · Score: 5, Funny

    the data used to quantify piracy isn't reliable

    Ya think, DiNozzo?

  17. I get music for free online! by argent · · Score: 5, Insightful

    "There's no doubt that the music industry has declined significantly over the last 10 years," Lamy said. "Countless studies have blamed this on the fact that millions of people have been getting their music for free online. That has translated to thousands of lost jobs in the industry and that's undeniable."

    I get music for free online!

    I get free samples from iTunes every week.

    I get free music from magnatune.com every day.

    I get free samples distributed directly by the artists and advertised on 3hive.com.

    I don't buy as many CDs because there's so much legally distributed good music online. I buy music online as well, but not as much as I used to buy CDs, and I usually only buy a couple of tracks instead of the whole album. So I don't need to pirate music for my demand for the traditional music distributor's high-overhead services to go down.

    I don't buy a newspaper any more, because I get better and more timely news online, some through reprinted wire services, some through independent journalists. I'm not "pirating news" any more than I'm "pirating music". I can see how this is a problem, but it's not a problem that's going to be solved by writing stricter laws or putting people into jail... or by charging newspaper prices for digital news. The internet makes distributing information more efficient. Businesses based on a percentage of older more expensive distribution mechanisms are going to have to change or adapt... but trying to use the law to attack a decreasingly important part of the problem isn't going to solve it. It's not going to magically become more expensive to distribute bits... it's going to get cheaper. There's going to be less and less overhead to get your margin from as the industry gets more efficient.

  18. IP restrictions probably more harmful by rwa2 · · Score: 4, Insightful

    Piracy affects distribution sales somewhat, yes. But the other half of what recording companies do is promotion, which involves controlling how new artists appear on the scene and building up their audience by airing stuff on the radio, movies, and elsewhere. Cultural art like music and movies don't really follow the classic supply/demand rules... the more people are exposed to a song (that doesn't suck too much) the more it enters their consciousness and they want to hear it again. So really they can make or break an artist merely by planning their promotion schedule and exposure, a measure of control they probably don't want to give up.

    A pretty good way to save on entertainment expenses is simply to not listen to the radio or watch TV. I've barely had any impulse to buy any album or movie for the past few years, and also no budget for entertainment.

    Some time ago I did start listening to some internet radio, and ended up hunting down and purchasing stuff from some artists I found I liked. But without exposure to the promotion, either through piracy or through encountering the music on the radio or ads or wherever, the product had no demand from or apparent value to me. So I believe it's more the cultural control that the RIAA is intent on protecting, rather than the distribution revenue. Piracy erodes more at their control of cultural contributions through authorized channels than at their sales revenue (which mostly goes to people without the money budgeted to buy the retail version anyway, and which only serves to increase their interest in the product).

    They're approaching this all wrong.... IP law needs to be rewritten to protect the future rather than the past; attitudes need to change so that people choose retail over piracy or counterfeit because they want to somehow support the artist's future work, and some approach should still allow the freeloaders to freeload, since not much is going to change them and the present-day battle for their mindshare is probably worth more than their walletshare.

  19. Re:They Need to Write a Distinction into Their Stu by ChinggisK · · Score: 4, Insightful

    I think you misread the summary. The GAO is saying that while there are lots of reports that show piracy is this big problem, those reports are based on studies that are total BS. The RIAA/MPAA most certainly does not want anyone pointing to this.

    Also, the article in the first link says that the GAO investigation is looking into *all* forms of piracy, other than the Somalian kind of course.

  20. I am so shocked! by Angst+Badger · · Score: 2, Insightful

    If you can't trust gigantic corporations that make their money off of producing artificial scarcity from imaginary property, who can you trust?

    --
    Proud member of the Weirdo-American community.
  21. try before you buy by Dan667 · · Score: 2, Insightful

    it would be interesting if they did a study on how much more people buy when they are able to try it first. Anecdotal evidence of big media's best Customers are also the ones they are labeling pirates. I bet even if there was no internet they would not get many more sales from these Customers.

  22. it's called "radio", RIAA assholes by circletimessquare · · Score: 4, Insightful

    once upon a time, there was this communist terrorist unpatriotic business model called "radio"

    they would play songs, get this, FOR FREE. anyone could hear it without having to pay money and signing away their rights! can you imagine something so socialist and unamerican?!

    then this would create DEMAND for more of the artist's product

    of course, in the era of radio, the demand was for vinyl and cassette tapes

    but here's the funny thing:

    in the age of the internet, the "radio" is the browser and the listening area is the entire world

    and the publisher IS THE ARTIST HIM/HERSELF. no distributor needed

    and the demand created is for paid concert gigs, advertising endorsements, personalized content, etc.

    what is this wacky unamerican world?

    i would think it best be called a free and unfettered marketplace: unfettered by an OLIGOPOLY or a MONOPOLY

    see the big lie, RIAA, is you are not preserving american financial interests. you are preserving an entrenched oligopoly that simply isn't needed anymore in the age of the internet, and your death means more free and unfettered capitalism, without any oversight and intrusion. i think some people call this "american"

    imagine that

    corporate interests != free market. and as any student of economic history knows, the true enemy of capitalism is not communism or socialism, it is monopolies and oligopolies strangling the market to dominate it

    in short RIAA: the interests you defend represent a distribution economy which has been rendered technologically obsolete, AND you hamper the free market place, AND now you wish to intrude on individual rights enshrined in our constitution in order to preserve your technologically obsolete business model. how about this instead: FUCK OFF AND DIE ALREADY

    you've been rendered obsolete. deal with it and die. that is your only fate, whether you accept it or not. it does not reflect well on you to be so thoroughly and inevitably defeated and not know it yet

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
  23. It's about shoes, not music by Animats · · Score: 2, Informative

    Read the actual report. The big "piracy" problem is fake copies of shoes and handbags. That isn't even a copyright issue; that's a trademark issue.

    You can legally copy garments; the only legal protection is for logos. So it's not even about the design.

    1. Re:It's about shoes, not music by Animats · · Score: 2, Informative

      Er no, designs are copyrighted.

      You can't copyright a "useful article". That's the domain of design patents.

      It's hard to get an enforceable design patent on apparel. Someone will go into the fashion library (a giant closet of famous garments) at the Fashion Institute of Technology and demonstrate that Coco Chanel did the same thing in 1931. Fashion is cyclical, not original. This is what resulted in the emphasis on exclusive "logos".

  24. The gears are moving! by TerrenceCoggins · · Score: 2, Funny

    So the GAO is setting its sights on big media's piracy FUD machine? Hurrah! I can see it now: The GAO or some other trustworthy government organization that's outside of the music/film industries' influence will oversee a comprehensive study done on the matter. After gladly washing down this hardy serving of humble pie with a cold glass of milk, big media will offer up their entire content library for free over streaming HTML5 video in OGG 1080p with a bit of help from axxo and the gang. As for this ACTA? It'll have a public funeral at last (despite already having the support of more powerful government agencies and branches) at which US, Chinese, AU, EU, the Pope, Muslim leaders and other world and religious leaders will get together and announce an end to nuculear proliferation, a way to kill global warming faster than Orkin kills roaches, and a cure for world hunger that involves magical gum-drops of some sort...

  25. Re:It's about fucking time by jank1887 · · Score: 2, Funny

    really? I thought that time wasn't until later tonight.

  26. Re:Confused? I know i am. by Volante3192 · · Score: 2, Insightful

    Ars has a piece on it too that sheds a little light on it:
    http://arstechnica.com/tech-policy/news/2010/04/us-government-finally-admits-most-piracy-estimates-are-bogus.ars

    Why is the government even looking into this issue? It's all due to the PRO-IP Act, which passed under President Bush and has led President Obama to appoint an Intellectual Property Enforcement Coordinator within the White House. Part of the IPEC's duties include gathering data on piracy and counterfeiting, and current IPEC Victoria Espinel is now rounding up that data. The GAO report is part of this process, and it certainly doesn't make industry estimates look compelling.

    This is ironic for a bill that was backed by the big rightsholders; even its acronym, the PRO-IP Act, shows what it was supposed to do. But, by hauling the black art of "piracy surveys" into the light, the PRO-IP Act is forcing rightsholders to tone down some of their more specific and alarmist rhetoric.

  27. Do they report piracy losses as tax writeoffs? by mykos · · Score: 3, Interesting

    I'd seriously like to know. If they honestly believe piracy is hurting their business and that their data is sound, they should put it on their taxes as a business loss. The IRS will sort it out.

  28. Re:Laid back? by Anonymous Coward · · Score: 2, Funny

    > about D&D .... I never played myself

    Er, duh? You're supposed to play an elf, or a wizard, or a cleric... no one plays "themselves"! ;-)

  29. Meh. by DarthVain · · Score: 2, Insightful

    They can use whatever numbers they like because the only numbers the politicians are interested in is how much they get paid by the media corporations.

    Considering there is likely a direct correlation between how much money the media corporations make, and how much money they are willing to use to bribe politicians, I am pretty sure you are stuck forever in a positive feedback loop.

    Have fun with that. Also stop trying to drag those of us north of the border down with you!

  30. Always blaming it on the piracy by N0Man74 · · Score: 4, Insightful

    When DVDs became more popular and fell in price, I found that I could get a full 2 hour movie on DVD for $20, while a 45 minute music only CD cost $17. I began to buy more movies than music, and my personal CD consumption fell. I don't know how many others out there were like me, but I doubt I'm alone. I frequently wondered how many folks like me were fueling record companies claims that CD sales slumps had to be caused by piracy.

    Now, for the last several years I've been witnessing format wars between Blu-Ray and HDVD, both of which are poising to replace DVDs and convince me to buy my collection of movies a second time. Blu-Ray has "won" the format war, only to be threatened by streaming video and digital distribution. For the last several years I've been reluctant to invest in DVDs that may soon become obsolete, or to invest in new technology such as BluRay (for which I'm also not comfortable with certain consumer-unfriendly aspects). I don't like the modern DRM models either, so I find myself not buying movies anymore and instead rent and stream through services like NetFlix.

    Again, I wonder how many people are like me, and how many "lost sales" that are blamed on piracy have absolutely nothing to do with piracy.

    And that's even before considering inflated numbers, people who download digital copies of media they already own physical copies to, people who are only downloading because it's "free" and would not buy anyway, and fake torrents planted by copyright holders themselves to trap pirates.

    Piracy is an easy scapegoat.

  31. Re:Laid back? by SanityInAnarchy · · Score: 2, Funny
    --
    Don't thank God, thank a doctor!
  32. this is an excellent question by circletimessquare · · Score: 2, Interesting

    and the answer is "very little, if any $"

    and then i ask you: so what? how has anything changed?

    this is the way it has always been, and always will be: a few artists make millions, the other 99% struggle in obscurity. the internet doesn't change this

    except... it does

    http://en.wikipedia.org/wiki/Long_Tail

    with the internet and the new economic phenomenon the long tail that the internet makes possible, all those little acts that in previous eras would be cut out of the action, now they get action. they're not all going to become millionaires, but they'll make 5 figures rather 4 figures, or 6 figures rather than 5 figures, or even 4 figures rather 3 figures is nice even

    with no riaa ownership trolling of our culture, the fringe just got more lucrative, in aggregate, than a world where you only got ANY exposure if you signed a distribution deal (and even then, you were usually screwed: only the HUGEST hits had any bargaining power with the distributors)

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it