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Limewire Loses In Court To RIAA
May 14, 2010
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"When you cease to exist, then who will you blame?"
-- Bob DylanThis week the RIAA declared a major victory when "U.S. District Judge Kimba Wood, for the Southern District of New York, on Tuesday granted summary judgment in favor of the music industry's claims that Lime Group, parent of LimeWire software maker Lime Wire, and founder Mark Gorton committed copyright infringement, engaged in unfair competition, and induced copyright infringement. " (Source: http://tinyurl.com/3xtlndn )
I've e-mailed dozens of readers of this newsletter over the last few months about this case, and in every one I said the same thing: I expected LimeWire to lose, and I saw no way they could defend themselves based on legal precedents already decided against other websites who have done the same thing.
While the RIAA rushed to get the news out about the court's decision, it once again brought to mind the fact that the RIAA does not take into account the fact that people who download songs illegally might simply shift from LimeWire to new websites less monitored, or (as I have talked about many times) darknets. Darknets fly under the radar of any online detection (for now anyway, who knows what the Feds have planned in the future) and there is no way to even guess how many people use them all over the world. Then again, there are offline intranets, and they are sprouting up everywhere like mushrooms. Don't believe me, just talk to some high-school or college students about what's going on in their tech world. They are far ahead of the curve when it comes to using technology to their advantage.
At the Consumer Electronics Show back in 2004, Sen. John Sununu (R-N.H.) and seven other senators criticized the RIAA's practice of suing alleged file-sharers. Calling the legal moves of the RIAA heavy-handed and against the intent of both copyright laws and the Digital Millennium Copyright Act, Sununu said: "The fundamental problem with the approach of the RIAA is that it was based on legislation that created special property rights. Suddenly, you had a private entity that's able to issue subpoenas, which is unprecedented. That's not what the DMCA was intended to do. We can't be writing legislation that gives holders of certain types of intellectual property special rights...We can't carve out special legislation to give special powers to certain types of content."
At the same show, Rep. Joe Barton, (R-TX) said: "I don't agree you're going to get teenagers and young people to believe they're doing something immoral. The industry has to decide on a different model."
It's 2010, and I don't believe the RIAA has done one thing to help the industry it allegedly serves, create "a different model." How could they? They spend too much time (and money) in court and lobbying politicians.
In 2004 I wrote "If all the websites around the world offering free downloads could be eliminated tomorrow, it wouldn't stop people from burning multiple copies of CDs. If all the websites around the world offering free downloads could be eliminated tomorrow, it wouldn't change the fact that CD prices are still too high. If all the websites around the world offering free downloads could be eliminated tomorrow, it wouldn't mean that all the money being spent on video games, DVDs, movies and other recreational diversions would be redirected to improved retail music sales. If the industry attacks these problems head on, one by one, it will do itself a greater service than all the lawsuits it could ever file."
Despite the best efforts and dreams of the RIAA, all the websites offering free downloads will never be eliminated. Digital piracy will never be eradicated because it's simply too big a problem globally to try and stop. (Read the article below about global software piracy up in 2009) There's way too much money to be made from piracy, and too many governments around the world turning their backs on what's going on in their own backyards.
At this point, I should say again (for the umpteenth time) I do not condone illegal file-sharing or piracy.
The RIAA should think long and hard about their latest "victory." But they should heed this warning: "If you fail to get it right at the start, it may cost you dearly to fix it later -- that is if you are even permitted the opportunity to fix it." (Curtis E. Sahakian )
The RIAA and the courts haven't "fixed" anything to help the music industry. The courts upheld existing copyright laws. But the people who use LimeWire will simply go elsewhere or find other ways to get their music (and movies) for free if they really want to.
The RIAA and the music industry have little time left to salvage a decent future because the technology clock ticks a whole lot faster than those in the legal system.
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THE 'A-SIDE' - TRACK 2
EMI SAFE...FOR NOW
The news this week is that Terra Firma has secured $156 million in new financing, which means they can make a loan payment to Citigroup and avoid a takeover of EMI.
Of course, as Yogi Berra once said, "the game's not over until it's over." Stay tuned and we will see how long the terra is firma.
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THE 'A-SIDE' - TRACK 3
DIASPORA STARTS UP AND WHO KNOWS WHERE IT LEADS, BUT FACEBOOK PRIVACY ISSUES GIVE THEM MOMENTUM
Perhaps the most damning critique of Facebook's recent controversial moves has been that a group of programmers have been raising money to create an alternative -- and people are donating.
Diaspora, a social-networking project hatched by four New York University programming students in their early 20s, is set to hit $100,000 on Thursday in its quest to raise enough funding from the public to spend the summer building "an open source personal web server that will put individuals in control of their data," using a fundraising platform start-up called Kickstarter. Their original goal was to raise $10,000 by June 1st.
As of Thursday, they have raised nearly an order of magnitude more than that with 19 days still to go.
Read the rest here: http://tinyurl.com/3xr2m9h
And Now For Some News ...
In Today's Mobile Audio World, Sound Quality Takes A Back Seat
NY TimesAt the ripe age of 28, Jon Zimmer is sort of an old fogey. That is, he is obsessive about the sound quality of his music. A onetime audio engineer who now works as a consultant for Stereo Exchange, an upscale audio store in Manhattan, Mr. Zimmer lights up when talking about high fidelity, bit rates and $10,000 loudspeakers.
But iPods and compressed computer files -- the most popular vehicles for audio today -- are "sucking the life out of music," he says.
Read more about it by clicking here.
Simon Fuller Sold 160 Million Songs On iTunes, How Did He Do That?
Wired.comApparently, it's still possible to score mega-hits and make mega-money in the music business. You just need to follow the example of American Idol creator Simon Fuller, who as of this week has been responsible for the sale of over 160 million songs via iTunes. That's about one song for everyone who uses Twitter, the number of Nintendo Mii's created by Wii users so far, or the amount of new investment dollars major label EMI said it needed just to keep its head above water earlier this year.
So, why has Fuller, whose artist management company includes multiple American Idol winners, done so well as EMI and others struggle? In a nutshell: He created a new twist on the traditional music paradigm, which can pretty much be summed up by "record music, sell music, cross fingers."
Read more about it by clicking here.
CNET Picks The Top-25 Best Blu-Ray Concert DVDs
Cnet.comCNET put together a list of the top Blu-ray concert discs. You may or may not agree with the choices listed, and if you don't they encourage you to e-mail them with other titles you believe should be on the list.
Read more about it by clicking here.
MetroLyrics Has Almost $10 Million In Revenues In '09, But Lyric Sites Become Focus Of Royalty Fight
NYTimesMetroLyrics drew about 13.5 million unique users in March and generated close to $10 million in revenue in 2009. For songwriters and their publishers, though, the ubiquity of lyrics on websites presents both opportunities and problems -- especially when it comes to getting some of the sites to pay royalties for use of the lyrics.
Read more about it by clicking here.
Echo Nest, Play.me Offer Music App Developers Free Tunes
The Echo Nest, a "music intelligence" firm founded by MIT Media Lab alums, on Thursday announced a deal with Dada Entertainment's Play.me service, which will allow music applications using Echo Nest's technology to utilize Play.me's music catalog and avoid having to secure separate licensing deals.
Read more about it by clicking here.
UMG Down, Vivendi Up in Q1
Billboatrd Biz"This is going to be a tough, challenging industry for a few more years." -- CFO Phillippe Capron.
While Mr. Capron's statement is less than noteworthy (is there anybody in the industry that doesn't know this?), there is some good news for Vivendi in the last quarter.
Read more about it by clicking here.
Cool TV Launches With Music Format
TVNewsCheckTV stations interested in multicasting have many networks to choose, offering everything from Spanish-language programming to popular movies. Now there's one more -- the Cool Music Network -- an eclectic music video service cutting across genres like the Jack FM radio format. Journal Broadcast Group is running the network on three stations and plans to add it to its remaining stations soon. Sinclair Broadcast Group has also cut a deal to roll it out on 34 stations starting June 1st.
The Cool TV hopes to succeed by leveraging the company's "on-location, on-demand" business of selling recordings of concerts to fans as they leave concert venues. That business gives the network proprietary content and local presence -- a key to its broadcast-centric business plan. There are 115 million or so TV homes in this country and our plan says within three years we're going to try to get to 90 million of them.
Read more about it by clicking here.
Project Playlist Settles With UMG And Warners
Cnet.comTwo of the largest recording companies have withdrawn a copyright lawsuit against music service Playlist.com, formerly known as Project Playlist.
The fledgling music service has reached a settlement with Universal Music Group, the largest of the four top recording companies, after the sides negotiated a business arrangement. Terms of the agreement were not released. Warner Music Group has also agreed to drop the lawsuit, but whether Warner will allow the service to offer its music is unclear.
Read more about it by clicking here.
Verizon & Google Plotting Against The iPad?
The Wall Street JournalVerizon Wireless just revealed that it's working together with Google on an iPad killer. According to The Wall Street Journal, the effort is part of a larger push to "catch up with iPad host AT&T in devices that connect to wireless networks." Verizon and Google are already quite close. Last year the carrier promoted the heck out the Motorola Droid, which runs Google's Android software.
Discussing "the next big wave of opportunities" with The Journal, Verizon Wireless head Lowell McAdam said: "We're working on tablets together, for example ... We're looking at all the things Google has in its archives that we could put on a tablet to make it a great experience." Google, for its part, has said it is working with hardware makers and carriers to create lightweight computers that run its software, but declined to address the idea of a Verizon-supported iPad killer specifically.
Read more about it by clicking here.
iPhone Shipments Up 131%; World Market Share Increases
BusinessWeekApple shipped 8.8 million iPhones during the third quarter, an increase of 131% from the 3.8 million it shipped during the same period a year ago, according to a report from market research firm IDC. Apple Inc. gained share from Research In Motion Ltd.'s BlackBerry in the global smartphone market last quarter as customers snapped up faster and cheaper versions of the iPhone.
In terms of global smartphone vendors, Apple now sits behind Nokia (39.3%) and Research in Motion's Blackberry (19.3%) with 16.1% of market share -- up from the 10.9% of market share it held in the first quarter of 2009.
Read more about it by clicking here.
TV Everywhere Plans To Fight Apple
Los Angeles TimesFearful they'll suffer the same fate as the music business, given iTunes' popularity, television firms are racing to come up with services which would let paying customers view shows on any device. The goal is to hold Apple at bay. As consumers increasingly expect to watch TV on their computers and mobiles, the future of online television is up for grabs. One solution: TV Everywhere, which is intended to address changing viewer habits while preserving the profitable status quo for program producers and the networks that carry the shows. The idea, presented by Time Warner Inc. CEO Jeff Bewkes, met with resistance: Three of the most powerful players in cable -- Disney, NBC and Fox parent News Corp. -- have championed another alternative, Hulu.
Read more about it by clicking here.
Global Software Piracy Up to 43% in 2009, A 2% Increase
Business Software AllianceThe rate of global software piracy climbed to 43% in 2009, a two-percentage-point increase from 2008 fueled in large part by expanding PC sales in emerging markets, according to the seventh annual Business Software Alliance/IDC Global Software Piracy Study. A 43% piracy rate means that for every $100 worth of legitimate software sold in 2009, an additional $75 worth of unlicensed software also made its way into the market.
"Software theft exceeded $51 billion in commercial value in 2009. The public and private sectors need to join forces to more effectively combat an epidemic that stifles innovation and impairs economies on a global scale," said BSA Pres./CEO Robert Holleyman.
Read more about it by clicking here.
The Music Industry Past, Present & Future, And The Internet
I answer questions on EconTalkI did an interview about the industry and the Internet at EconTalk with host Russ Roberts. Russ is also a professor of economics at George Mason University, blogs at Cafe Hayek, and has written three novels that teach economics. He's also the co-creator of the Keynes-Hayek rap video. (And if your understanding of the economic meltdown that occurred needs to be enlightened, this video will do it)
In the interview we talk about the evolution of the music industry, the impact of the digital revolution, and I give my reasons for believing in the virtues and potential of the Internet in enhancing the music industry. I point out, as I have many times here in the newsletter, that the internet allows numerous artists to make money from their music and it can enhance revenues from live performances by expanding an artist's base. We also discuss the challenges facing record companies and I suggest that the full potential of the Internet as a distribution channel has yet to be fully exploited. There's a lot of ground covered, but based on the comments already posted of those who have tuned in, they've enjoyed it.
Read more about it by clicking here.
OASIS'S GALLAGHER BUYS RIGHTS TO BEATLE BOOK FOR FILM:
Oasis frontman Liam Gallagher has acquired the cinematic rights to the book "The Longest Cocktail Party," which tells the behind-the-scenes story of the Beatles' Apple Corps. Gallagher's newly formed In 1 Productions confirmed today that they will develop and produce a feature film based on Richard DiLello's 1973 book that tracks the rise and near-fall of the Beatles' famed record label.
CHRISTINA HITS THE ROAD:
Christina Aguilera will hit the road in support of her June album, "Bionic," this summer on a 20-date tour of outdoor theaters and arenas. The tour will feature Leona Lewis as the opening act, kicks off July 15th in Uncasville, CT, and works its way west, concluding August 19th in Irvine, CA.
SWIFT AID:
Country music superstar Taylor Swift has donated $500,000 to help victims of Nashville flooding that has left the Grand Ole Opry House and other landmarks under water.
WHEN YOU'RE HOT, YOU'RE HOT, SO STAY ON THE ROAD:
Lady Gaga is extending her completely sold-out Monster Ball tour into 2011 with 10 new dates in the New Year. Tickets go on sale beginning this Friday, May 14th.
NO DOUBT THEY ARE RECORDING:
No Doubt have finally started recording their first new album since 2001's "Rock Steady," the band revealed on Twitter. "The 4 of us are 2gethr in Hllywd today- 2 start recording the first batch of new ND songs," Gwen Stefani and co. posted
BEATLES PRESS CONFERENCE FOOTAGE UP FOR SALE:
A 14-minute reel-to-reel tape featuring the 1966 Beatles press conference, in which John Lennon said The Beatles were more popular than Jesus, will hit the block this June at a Los Angeles auction house. The Q&A session, which went down August 17th, 1966 at Toronto's King Edward Hotel
IT WAS 40 YEARS AGO:
Forty years ago The Beatles released their final album together: On May 8th, 1970, the Beatles released "Let It Be," the Phil Spector-produced LP that featured hits like the title track, "The Long and Winding Road" and "Get Back."
NASHVILLE HELP ON THE WAY:
Two weeks after Nashville suffered fatal flooding that badly damaged pillars of the city's rich Country music industry, Tim McGraw, Faith Hill and Brad Paisley have announced benefits to raise money and relief for affected citizens.
Quotes of the week
"I hate Twitter. It's banal and turned into a society pager for people with too much time on their hands."
-- Sarah McLachlan tells Canada's MacLean's. (I couldn't agree with Ms. McLachlan more)"I think music in the long term is going to be just fine," Fuller told Reuters. "But in the short term, as we see, [it's] bedlam and chaos. We have to reinvent, in music, TV and movies, that interaction between the consumer and the content we create."
-- American Idol creator, Simon Fuller
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
Actress, Musician To Wed
HOLLYWOOD, CA-The actress from the big hit movie and the musician from the popular band who have been photographed many times together out on the town are getting married, entertainment industry sources reported Monday.
"I love him," the actress, who has been seen sporting a huge diamond engagement ring recently, told reporters while walking down the red carpet. "He's definitely the one."
The wedding, which will take place this summer, is expected to be attended by many equally famous celebrities, and will be photographed by many paparazzi, via helicopter if necessary. Insiders expect the guest list to be a veritable "who's who" of the rich and famous, including the Hollywood director, the reclusive former star who rarely makes public appearances, and the very handsome actor who used to be on television but is now in movies.
Read the rest here and laugh: oOLINKOo.
THE RADIO INTERVIEW on 'THE AMERICAN PERSPECTIVE' - From newsblaze.com
"Steve Meyer is on the front line of global music sales and distribution which he expects will soar to pocket-bursting levels. What's more, he shares his insight and ingenuity with us. Steve gives us both historical perspective and futuristic vision as he chats with Judy about the love of his work, trends of the business and his personal points of view about success, happiness and blending life with the lust for life. Steve joins Judy and helps us discover the thrill of having it all with a sense of balance and purpose. "
You can listen to an interview I did with Judy Piazza of 'The American Perspective' by clicking here: (It runs about 15 minutes)
http://www.thesop.org/index.php?id=10306.
The Blogs
Check out Jerry Del Colliano's (the founder of INSIDE RADIO) daily blog, by clicking here: http://www.insidemusicmedia.blogspot.comWebsite
Check out attorney Ray Beckerman's website at: http://recordingindustryvspeople.blogspot.com where he prints news about the RIAA's ongoing activities
TinyURL
Check out www.tinyurl.com where you can make a smaller URL that will work for any webpage you wish to link to or reference. (As you can see, I'm using it in my news stories above!)
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