August 20, 2009

YouTube Wins One Legal Battle But the Copyright War is Far From Over

youtube1_270x98.png Some of the reparations sought by the plaintiffs in a class-action suit against YouTube, the ubiquitous video sharing website, have been thrown out by a U.S. federal judge. Judge Louis Stanton, of the Southern District of New York, denied a number of plaintiffs’ claims for statutory damages.

YouTube is a subsidiary of Google and receives 1.2 billion video views per day. Its level of exposure has soared as amateurs and professionals alike post over 65,000 new videos every day. The clips uploaded run the gamut from home videos to pro sports highlights to news updates.

The judge ruled that statutory damages for all domestic and foreign works that are not timely registered are barred by the Digital Millennium Copyright Act of 1998. He further declared that some of the videos in question were foreign works not governed by U.S. copyright law and therefore punitive damages would not be available for them. This decision appears to have no bearing on several of the other plaintiffs as their works fall under the Copyright Act.

YouTube is by no means out of the woods yet, as another, far more ominous lawsuit has been filed against Google by Viacom, to the tune of $1 billion dollars. At this stage, Google’s main defense seems to be that as long as it immediately takes down illegal videos once it becomes aware of a violation, it is in compliance with the Copyright Act.

I, for one, really enjoy YouTube videos and hope that it can find a way to operate within the bounds of copyright law. It would be a shame for such an innovative site to be shut down, so hopefully some sort of licensing agreement or other permission can be secured.

What’re your feelings on YouTube? Please post your comments or contact me to discuss!

August 19, 2009

Million-Dollar Fines for Illegal Music Downloads: Fair or Foul?

riaa.bmp A federal jury in Minnesota has awarded the Recording Industry Association of America $1.92 million dollars in its copyright infringement case against Jammie Thomas-Rasset, a 32 year-old woman from Brainerd, MN, for allegedly offering 24 songs for download on the Kazaa file-sharing platform.

Approximately 35,000 people have been threatened with legal action by the recording industry for illegal downloading, but Rasset’s case was the first and only one of its kind to reach trial proceedings. For copyright violations, juries may enter verdicts of up to $150,000 per song pursuant to federal law.

Online music piracy has exploded since the advent of peer-to-peer networking and was popularized on the heels of software such as Napster. According to a 2007 study by the Institute for Policy Innovation, music piracy costs American workers $2.7 billion dollars annually, and 71,060 jobs are lost each year. Piracy divests artists of their rights to their own intellectual property and circumvents the traditional financial compensation structure. Currently, there are myriad channels available for legally acquiring music including iTunes, Zune, and Amazon.

Piracy remains a rampant problem, but the helter-skelter pursuit of individual offenders is not the answer. The recording industry should focus its collective energy on ensuring that P2P networking sites themselves are implementing adequate precautionary measures to deter copyright infringement. Such a strategy would effect a more equitable distribution of liability and prevent individuals from shouldering a disproportionate share.

August 18, 2009

Ongoing Crusade Against Music Piracy: RIAA 2 for 2 in Recent Copyright Infringement Cases

usenet.gif The Recording Industry Association of America has triumphed over Usenet.com in a copyright infringement case originating in October 2007. The favorable ruling was issued by a federal court in the Southern District of New York, but the exact parameters of the punishment have yet to be determined. They could range from heavy fines to the complete disintegration of Usenet.

Usenet isn’t a traditional peer-to-peer networking site, but affords users access to over 120,000 newsgroups enabling them to retrieve files on-demand from a single server hosted by Usenet that draws from stored content on several servers. The RIAA accused Usenet of actively encouraging users to share music illegally via its unusual structure.

This case represents a watershed moment in terms of the RIAA’s tactics as it is now pursuing companies that are facilitating piracy instead of tracking down individuals. Furthermore, the RIAA is approaching internet service providers and requesting that they convey RIAA copyright infringement notices to their customers and suspend service for repeat offenders. The RIAA will refrain from taking legal action against the ISPs themselves in exchange for their cooperation.

The RIAA should be focusing on large-scale violations and the entities that make them possible. The RIAA’s new outlook makes more than a little sense from both fault-finding and efficiency standpoints. It will be much easier to combat music piracy by going after the big fish.

Do you think this is a better strategy for the RIAA? Please post your comments or contact me to discuss!

August 13, 2009

Fair Royalties: New Agreement Rescues Internet Radio

pandora_logo.png Independent internet radio service providers have struck a deal with the Copyright Royalty Board that will keep them afloat. The internet stations were concerned that astronomical royalties would inflate their costs to the point of sinking their businesses. Some had worried that required royalties could potentially be set at double their total revenue!

Internet radio stations continuously stream music and draw over 42 million American listeners every week. Traditional radio stations have licensing agreements in place which enable them to legally broadcast music and which are paid for by substantial income from advertising.

The contract agreed upon by the parties spans 10 years, expires in 2015, and includes a graduated royalty fee structure whereby artists and record companies receive progressively higher payouts over time which may be tendered in the form of a cut of the stations’ profits. The compensation paid will be directly proportional to the popularity of the radio stations.

Some key stations, such as such as Pandora, have yet to join the deal, but it is anticipated that they will soon sign on the dotted line. Such an agreement was critical for internet radio as it needed a plan that would enable it to be financially viable. The industry is still fairly new and in its formative years, so very few independent providers are turning a profit right now. It will take some time before these providers can compete with larger stations that are affiliated with large media conglomerates.

I love internet radio and listen to it practically every day! It has so many more dimensions than regular radio and gives users new ways to mix and match music to suit their individual tastes. I’m glad that some middle ground could be found so that internet radio can go on uninterrupted!

Are you a fan of internet radio? Let me know what you think!