Legal Alternatives forLegal Alternatives forOnline Music DistributionOnline Music Distribution

Legal Alternatives forLegal Alternatives forOnline Music DistributionOnline Music Distribution

CNI-PortlandCNI-Portland

December 9, 2003December 9, 2003

Steve WoronaSteve Worona

EDUCAUSEEDUCAUSE

CNI-PortlandCNI-Portland

December 9, 2003December 9, 2003

Steve WoronaSteve Worona

EDUCAUSEEDUCAUSE

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Joint Committee of theJoint Committee of theHigher Education and EntertainmentHigher Education and Entertainment

CommunitiesCommunities

Joint Committee of theJoint Committee of theHigher Education and EntertainmentHigher Education and Entertainment

CommunitiesCommunities

• Formed Fall, 2002• “To examine ways to reduce the inappropriate

use on campuses of P2P file sharing technologies.”

• “To discuss their differences on federal intellectual property legislative issues.”

• www.educause.edu/issues/rfi

• Formed Fall, 2002• “To examine ways to reduce the inappropriate

use on campuses of P2P file sharing technologies.”

• “To discuss their differences on federal intellectual property legislative issues.”

• www.educause.edu/issues/rfi

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Membership: Higher EducationMembership: Higher EducationMembership: Higher EducationMembership: Higher EducationGraham Spanier, Penn State, co-chairGraham Spanier, Penn State, co-chairMolly Broad, UNCMolly Broad, UNCJohn Hennessy, StanfordJohn Hennessy, StanfordChuck Phelps, RochesterChuck Phelps, RochesterDorothy Robinson, YaleDorothy Robinson, YaleStaff:Staff:

Mark Luker, EDUCAUSEMark Luker, EDUCAUSEShelley Steinbach, ACEShelley Steinbach, ACEJohn Vaughn, AAUJohn Vaughn, AAU

Graham Spanier, Penn State, co-chairGraham Spanier, Penn State, co-chairMolly Broad, UNCMolly Broad, UNCJohn Hennessy, StanfordJohn Hennessy, StanfordChuck Phelps, RochesterChuck Phelps, RochesterDorothy Robinson, YaleDorothy Robinson, YaleStaff:Staff:

Mark Luker, EDUCAUSEMark Luker, EDUCAUSEShelley Steinbach, ACEShelley Steinbach, ACEJohn Vaughn, AAUJohn Vaughn, AAU

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Membership: Entertainment IndustryMembership: Entertainment IndustryMembership: Entertainment IndustryMembership: Entertainment IndustryCary Sherman, RIAA, co-chairCary Sherman, RIAA, co-chairRoger Ames, Warner Music GroupRoger Ames, Warner Music GroupMatthew T. Gerson, Vivendi UniversalMatthew T. Gerson, Vivendi UniversalSherry Lansing, Paramount PicturesSherry Lansing, Paramount PicturesIrwin Robinson, NMPAIrwin Robinson, NMPAJack Valenti, MPAAJack Valenti, MPAAStaff:Staff:

Fritz Attaway, MPAAFritz Attaway, MPAATroy Dow, MPAATroy Dow, MPAAMitch Glazier, Vivendi UniversalMitch Glazier, Vivendi Universal

Bruce Block, RIAABruce Block, RIAABarry Robinson, RIAABarry Robinson, RIAAJonathan Whitehead, RIAAJonathan Whitehead, RIAA

Cary Sherman, RIAA, co-chairCary Sherman, RIAA, co-chairRoger Ames, Warner Music GroupRoger Ames, Warner Music GroupMatthew T. Gerson, Vivendi UniversalMatthew T. Gerson, Vivendi UniversalSherry Lansing, Paramount PicturesSherry Lansing, Paramount PicturesIrwin Robinson, NMPAIrwin Robinson, NMPAJack Valenti, MPAAJack Valenti, MPAAStaff:Staff:

Fritz Attaway, MPAAFritz Attaway, MPAATroy Dow, MPAATroy Dow, MPAAMitch Glazier, Vivendi UniversalMitch Glazier, Vivendi Universal

Bruce Block, RIAABruce Block, RIAABarry Robinson, RIAABarry Robinson, RIAAJonathan Whitehead, RIAAJonathan Whitehead, RIAA

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Purpose and ScopePurpose and ScopePurpose and ScopePurpose and Scope“We will seek ways to reduce the inappropriate use of P2P technology without restricting free speech and expression, invading privacy, or limiting the legitimate uses of P2P. The systematic implementation of thoughtful programs of education on copyright rights and responsibilities and appropriate and inappropriate uses of P2P technologies should be a central component of such actions. The development and application of carefully crafted policies and procedures for network management can also reduce inappropriate uses while preserving appropriate uses of those networks. As always, universities will respond appropriately to all legal requirements.”

“We will seek ways to reduce the inappropriate use of P2P technology without restricting free speech and expression, invading privacy, or limiting the legitimate uses of P2P. The systematic implementation of thoughtful programs of education on copyright rights and responsibilities and appropriate and inappropriate uses of P2P technologies should be a central component of such actions. The development and application of carefully crafted policies and procedures for network management can also reduce inappropriate uses while preserving appropriate uses of those networks. As always, universities will respond appropriately to all legal requirements.”

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3 Task Forces3 Task Forces3 Task Forces3 Task Forces

EducationEducationJohn Hennessy, chairJohn Hennessy, chairDeveloping white paperDeveloping white paper

LegislationLegislationMolly Broad, Jack Velenti, co-chairsMolly Broad, Jack Velenti, co-chairsDeveloping statement of principles and goalsDeveloping statement of principles and goals

TechnologyTechnologyChuck Phelps, chairChuck Phelps, chairDave Lambert, GeorgetownDave Lambert, GeorgetownMichael McRobbie, Indiana UMichael McRobbie, Indiana UStaff: Mark LukerStaff: Mark Luker2 RFI’s2 RFI’s

EducationEducationJohn Hennessy, chairJohn Hennessy, chairDeveloping white paperDeveloping white paper

LegislationLegislationMolly Broad, Jack Velenti, co-chairsMolly Broad, Jack Velenti, co-chairsDeveloping statement of principles and goalsDeveloping statement of principles and goals

TechnologyTechnologyChuck Phelps, chairChuck Phelps, chairDave Lambert, GeorgetownDave Lambert, GeorgetownMichael McRobbie, Indiana UMichael McRobbie, Indiana UStaff: Mark LukerStaff: Mark Luker2 RFI’s2 RFI’s

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ProductsProductsProductsProductsTo dateTo date

Letter from David Ward on the P2P issueLetter from David Ward on the P2P issueWhite paper on student liabilityWhite paper on student liabilityReports to House Judiciary SubcommitteeReports to House Judiciary SubcommitteeReport on RFI-1Report on RFI-1Letter from Graham Spanier on pilotsLetter from Graham Spanier on pilots

To comeTo come““Best practices” policies and proceduresBest practices” policies and proceduresReport on RFI-2Report on RFI-2Legislation “principles and goals”Legislation “principles and goals”

To dateTo dateLetter from David Ward on the P2P issueLetter from David Ward on the P2P issueWhite paper on student liabilityWhite paper on student liabilityReports to House Judiciary SubcommitteeReports to House Judiciary SubcommitteeReport on RFI-1Report on RFI-1Letter from Graham Spanier on pilotsLetter from Graham Spanier on pilots

To comeTo come““Best practices” policies and proceduresBest practices” policies and proceduresReport on RFI-2Report on RFI-2Legislation “principles and goals”Legislation “principles and goals”

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RFI’sRFI’sRFI’sRFI’sProducing a “knowledge base” from vendor dataProducing a “knowledge base” from vendor data

The companyThe companyThe productThe productTechnology, service, pricing, history,…Technology, service, pricing, history,…

Reviewed by reps from each communityReviewed by reps from each communityNot evaluating productsNot evaluating products

Facilitating/soliciting pilotsFacilitating/soliciting pilotsRFI-1RFI-1

Technologies/services forTechnologies/services forLimiting bandwidthLimiting bandwidthLimiting infringementLimiting infringement

RFI-2RFI-2Services offering “legitimate” distributionServices offering “legitimate” distribution

Producing a “knowledge base” from vendor dataProducing a “knowledge base” from vendor dataThe companyThe companyThe productThe productTechnology, service, pricing, history,…Technology, service, pricing, history,…

Reviewed by reps from each communityReviewed by reps from each communityNot evaluating productsNot evaluating products

Facilitating/soliciting pilotsFacilitating/soliciting pilotsRFI-1RFI-1

Technologies/services forTechnologies/services forLimiting bandwidthLimiting bandwidthLimiting infringementLimiting infringement

RFI-2RFI-2Services offering “legitimate” distributionServices offering “legitimate” distribution

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Responses to RFI-1Responses to RFI-1Responses to RFI-1Responses to RFI-1Akonix SystemsAkonix Systems NetintactNetintactAllot CommunicationsAllot Communications PacketeerPacketeerApreoApreo Palisade SystemsPalisade SystemsArbor NetworksArbor Networks Pancho NetworksPancho NetworksAudibleMagicAudibleMagic Q1 LabsQ1 LabsBayTSPBayTSP Ranger OnlineRanger OnlineEllacoya NetworksEllacoya Networks Transparency SoftwareTransparency SoftwareExploit SystemsExploit Systems Universal Music Universal Music

Group/VivendiGroup/VivendiFutureSoftFutureSoft XACCT TechnologiesXACCT TechnologiesGlobal VelocityGlobal Velocity

Akonix SystemsAkonix Systems NetintactNetintactAllot CommunicationsAllot Communications PacketeerPacketeerApreoApreo Palisade SystemsPalisade SystemsArbor NetworksArbor Networks Pancho NetworksPancho NetworksAudibleMagicAudibleMagic Q1 LabsQ1 LabsBayTSPBayTSP Ranger OnlineRanger OnlineEllacoya NetworksEllacoya Networks Transparency SoftwareTransparency SoftwareExploit SystemsExploit Systems Universal Music Universal Music

Group/VivendiGroup/VivendiFutureSoftFutureSoft XACCT TechnologiesXACCT TechnologiesGlobal VelocityGlobal Velocity

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Responses to RFI-2Responses to RFI-2Responses to RFI-2Responses to RFI-2AT&TAT&TAmerica OnlineAmerica OnlineCflixCflixCollege Entertainment NetworkCollege Entertainment NetworkMovielinkMovielinkMusic Public BroadcastingMusic Public BroadcastingMusicNetMusicNetMusicRebellionMusicRebellionMusicmatchMusicmatchNapsterNapsterPeppercoinPeppercoinRealNetworksRealNetworksWebHoundWebHound

AT&TAT&TAmerica OnlineAmerica OnlineCflixCflixCollege Entertainment NetworkCollege Entertainment NetworkMovielinkMovielinkMusic Public BroadcastingMusic Public BroadcastingMusicNetMusicNetMusicRebellionMusicRebellionMusicmatchMusicmatchNapsterNapsterPeppercoinPeppercoinRealNetworksRealNetworksWebHoundWebHound

A Tale ofA Tale ofTwo CampusesTwo Campuses

A Tale ofA Tale ofTwo CampusesTwo Campuses

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University of Florida:ICARUSUniversity of Florida:ICARUSUniversity of Florida:ICARUSUniversity of Florida:ICARUSDeveloped by VP for Residence HallsDeveloped by VP for Residence HallsAutomatic detection and enforcement of policy violationsAutomatic detection and enforcement of policy violations

Policy: No file sharing/serving (including Web pages)Policy: No file sharing/serving (including Web pages)Registering MAC addressesRegistering MAC addressesMonitoring all traffic flows looking for any P2PMonitoring all traffic flows looking for any P2PTurn off network access for all machines registeredTurn off network access for all machines registered

by “accused” violatorby “accused” violatorRedirected to page describing violation and how to respondRedirected to page describing violation and how to respondFirst offense: “Education”First offense: “Education”Second offense: 5 days off netSecond offense: 5 days off netSubsequent: Judicial systemSubsequent: Judicial systemRIAA: A model to be considered by all campusesRIAA: A model to be considered by all campuses

Use Lionshare for “legitimate” Peer-to-PeerUse Lionshare for “legitimate” Peer-to-Peer

Developed by VP for Residence HallsDeveloped by VP for Residence HallsAutomatic detection and enforcement of policy violationsAutomatic detection and enforcement of policy violations

Policy: No file sharing/serving (including Web pages)Policy: No file sharing/serving (including Web pages)Registering MAC addressesRegistering MAC addressesMonitoring all traffic flows looking for any P2PMonitoring all traffic flows looking for any P2PTurn off network access for all machines registeredTurn off network access for all machines registered

by “accused” violatorby “accused” violatorRedirected to page describing violation and how to respondRedirected to page describing violation and how to respondFirst offense: “Education”First offense: “Education”Second offense: 5 days off netSecond offense: 5 days off netSubsequent: Judicial systemSubsequent: Judicial systemRIAA: A model to be considered by all campusesRIAA: A model to be considered by all campuses

Use Lionshare for “legitimate” Peer-to-PeerUse Lionshare for “legitimate” Peer-to-Peer

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Penn State: NapsterPenn State: NapsterPenn State: NapsterPenn State: NapsterPromoted/negotiated/championed by Graham SpanierPromoted/negotiated/championed by Graham Spanier““Site license”Site license”Free streaming, tethered downloadFree streaming, tethered download$1/track purchase$1/track purchaseNominally $10/month/personNominally $10/month/person18,000 students in Spring18,000 students in Spring83,000 students in Fall83,000 students in FallStudent reaction mixedStudent reaction mixedWhat about blocking other P2P?What about blocking other P2P?Lamar Smith: “Today's agreement establishes Penn State as Lamar Smith: “Today's agreement establishes Penn State as

a leader in the fight against the illegal sharing of songs a leader in the fight against the illegal sharing of songs on peer-to-peer networks. If other colleges and on peer-to-peer networks. If other colleges and universities take similar steps the widespread violation universities take similar steps the widespread violation of intellectual property rights on campuses will be of intellectual property rights on campuses will be sharply reduced.”sharply reduced.”

Promoted/negotiated/championed by Graham SpanierPromoted/negotiated/championed by Graham Spanier““Site license”Site license”Free streaming, tethered downloadFree streaming, tethered download$1/track purchase$1/track purchaseNominally $10/month/personNominally $10/month/person18,000 students in Spring18,000 students in Spring83,000 students in Fall83,000 students in FallStudent reaction mixedStudent reaction mixedWhat about blocking other P2P?What about blocking other P2P?Lamar Smith: “Today's agreement establishes Penn State as Lamar Smith: “Today's agreement establishes Penn State as

a leader in the fight against the illegal sharing of songs a leader in the fight against the illegal sharing of songs on peer-to-peer networks. If other colleges and on peer-to-peer networks. If other colleges and universities take similar steps the widespread violation universities take similar steps the widespread violation of intellectual property rights on campuses will be of intellectual property rights on campuses will be sharply reduced.”sharply reduced.”

Discussion QuestionsDiscussion QuestionsDiscussion QuestionsDiscussion Questions

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The Appropriate Role for a CampusThe Appropriate Role for a CampusThe Appropriate Role for a CampusThe Appropriate Role for a Campus

1.1. Ignore itIgnore it2.2. Aggressively block P2P, even at the Aggressively block P2P, even at the

expense of eliminating non-infringing expense of eliminating non-infringing activityactivity

3.3. Block/punish infringing activity, but avoid Block/punish infringing activity, but avoid interfering with non-infringing activityinterfering with non-infringing activity

4.4. Work proactively to provide access to Work proactively to provide access to commercial contentcommercial content

5.5. OtherOther

1.1. Ignore itIgnore it2.2. Aggressively block P2P, even at the Aggressively block P2P, even at the

expense of eliminating non-infringing expense of eliminating non-infringing activityactivity

3.3. Block/punish infringing activity, but avoid Block/punish infringing activity, but avoid interfering with non-infringing activityinterfering with non-infringing activity

4.4. Work proactively to provide access to Work proactively to provide access to commercial contentcommercial content

5.5. OtherOther

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LicensingLicensingLicensingLicensing

Back-of-envelope calculationBack-of-envelope calculation

60 million file sharers60 million file sharers

$700M “lost revenue” in 2002$700M “lost revenue” in 2002

$1/month/sharer$1/month/sharer

John Dingell: “60 million citizens can’t be wrong”John Dingell: “60 million citizens can’t be wrong”

Canada: “Tax” ISP’sCanada: “Tax” ISP’s

Today: 20 million US households on broadbandToday: 20 million US households on broadband

1978: 60 million1978: 60 million

Some quotes…Some quotes…

Back-of-envelope calculationBack-of-envelope calculation

60 million file sharers60 million file sharers

$700M “lost revenue” in 2002$700M “lost revenue” in 2002

$1/month/sharer$1/month/sharer

John Dingell: “60 million citizens can’t be wrong”John Dingell: “60 million citizens can’t be wrong”

Canada: “Tax” ISP’sCanada: “Tax” ISP’s

Today: 20 million US households on broadbandToday: 20 million US households on broadband

1978: 60 million1978: 60 million

Some quotes…Some quotes…

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Proposals to Charge ISPs for Music DownloadsProposals to Charge ISPs for Music DownloadsAn organization representing songwriters and other copyright holders in Canada An organization representing songwriters and other copyright holders in Canada is arguing to the Canadian Supreme Court for a tax on ISPs to compensate is arguing to the Canadian Supreme Court for a tax on ISPs to compensate copyright holders for losses due to file swapping. A similar tax already exists for copyright holders for losses due to file swapping. A similar tax already exists for blank cassette tapes and CDs. Canadian telecommunications companies and ISPs blank cassette tapes and CDs. Canadian telecommunications companies and ISPs are strongly opposed to the idea, saying they simply provide a mode of are strongly opposed to the idea, saying they simply provide a mode of communication and should not becommunication and should not beresponsible for collecting “royalties” for the content that uses their networks. In responsible for collecting “royalties” for the content that uses their networks. In the United States, the Distributed Computing Industry Association (DCIA) has the United States, the Distributed Computing Industry Association (DCIA) has floated a similar proposal, though the DCIA's goes further. Under its plan, ISPs floated a similar proposal, though the DCIA's goes further. Under its plan, ISPs would monitor network traffic and charge file traders a surcharge that would would monitor network traffic and charge file traders a surcharge that would compensate record companies and other copyright holders. The DCIA model compensate record companies and other copyright holders. The DCIA model would make music content similar to that of cable television, where users could would make music content similar to that of cable television, where users could subscribe to certain “channels” of music. The DCIA, which represents peer-to-subscribe to certain “channels” of music. The DCIA, which represents peer-to-peer companies, hopes to offer a total of three possible business models for peer companies, hopes to offer a total of three possible business models for online music distribution, from which a “critical mass of ISPs, music companies, online music distribution, from which a “critical mass of ISPs, music companies, and software companies” can choose one to pursue.and software companies” can choose one to pursue.

Proposals to Charge ISPs for Music DownloadsProposals to Charge ISPs for Music DownloadsAn organization representing songwriters and other copyright holders in Canada An organization representing songwriters and other copyright holders in Canada is arguing to the Canadian Supreme Court for a tax on ISPs to compensate is arguing to the Canadian Supreme Court for a tax on ISPs to compensate copyright holders for losses due to file swapping. A similar tax already exists for copyright holders for losses due to file swapping. A similar tax already exists for blank cassette tapes and CDs. Canadian telecommunications companies and ISPs blank cassette tapes and CDs. Canadian telecommunications companies and ISPs are strongly opposed to the idea, saying they simply provide a mode of are strongly opposed to the idea, saying they simply provide a mode of communication and should not becommunication and should not beresponsible for collecting “royalties” for the content that uses their networks. In responsible for collecting “royalties” for the content that uses their networks. In the United States, the Distributed Computing Industry Association (DCIA) has the United States, the Distributed Computing Industry Association (DCIA) has floated a similar proposal, though the DCIA's goes further. Under its plan, ISPs floated a similar proposal, though the DCIA's goes further. Under its plan, ISPs would monitor network traffic and charge file traders a surcharge that would would monitor network traffic and charge file traders a surcharge that would compensate record companies and other copyright holders. The DCIA model compensate record companies and other copyright holders. The DCIA model would make music content similar to that of cable television, where users could would make music content similar to that of cable television, where users could subscribe to certain “channels” of music. The DCIA, which represents peer-to-subscribe to certain “channels” of music. The DCIA, which represents peer-to-peer companies, hopes to offer a total of three possible business models for peer companies, hopes to offer a total of three possible business models for online music distribution, from which a “critical mass of ISPs, music companies, online music distribution, from which a “critical mass of ISPs, music companies, and software companies” can choose one to pursue.and software companies” can choose one to pursue.

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“…“…Artists have an obligation to support the rest Artists have an obligation to support the rest of the artistic community by licensing their of the artistic community by licensing their works. Music services have not been able to get works. Music services have not been able to get licenses from superstar artists like the Beatles. licenses from superstar artists like the Beatles. When an artist refuses to license their work, I When an artist refuses to license their work, I think that is a vote in favor of piracy instead of think that is a vote in favor of piracy instead of the legitimate marketplace.”the legitimate marketplace.”

“…“…Artists have an obligation to support the rest Artists have an obligation to support the rest of the artistic community by licensing their of the artistic community by licensing their works. Music services have not been able to get works. Music services have not been able to get licenses from superstar artists like the Beatles. licenses from superstar artists like the Beatles. When an artist refuses to license their work, I When an artist refuses to license their work, I think that is a vote in favor of piracy instead of think that is a vote in favor of piracy instead of the legitimate marketplace.”the legitimate marketplace.”

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“…“…Artists have an obligation to support the rest Artists have an obligation to support the rest of the artistic community by licensing their of the artistic community by licensing their works. Music services have not been able to get works. Music services have not been able to get licenses from superstar artists like the Beatles. licenses from superstar artists like the Beatles. When an artist refuses to license their work, I When an artist refuses to license their work, I think that is a vote in favor of piracy instead of think that is a vote in favor of piracy instead of the legitimate marketplace.”the legitimate marketplace.”

––Cary Sherman, October, 2003Cary Sherman, October, 2003

“…“…Artists have an obligation to support the rest Artists have an obligation to support the rest of the artistic community by licensing their of the artistic community by licensing their works. Music services have not been able to get works. Music services have not been able to get licenses from superstar artists like the Beatles. licenses from superstar artists like the Beatles. When an artist refuses to license their work, I When an artist refuses to license their work, I think that is a vote in favor of piracy instead of think that is a vote in favor of piracy instead of the legitimate marketplace.”the legitimate marketplace.”

––Cary Sherman, October, 2003Cary Sherman, October, 2003

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““I take it as a basic premise that our copyright laws I take it as a basic premise that our copyright laws must play a role — a strong role — in protecting must play a role — a strong role — in protecting creative works over the Internet. These protections, creative works over the Internet. These protections, however, must be secured in a manner which is however, must be secured in a manner which is mindful of the impact related regulation can have on mindful of the impact related regulation can have on the free flow of ideas that a decentralized, open the free flow of ideas that a decentralized, open network like the Internet creates. We must protect the network like the Internet creates. We must protect the rights of the creator. But we cannot, in the name of rights of the creator. But we cannot, in the name of copyright, unduly burden consumers and the copyright, unduly burden consumers and the promising technology the Internet presents to all of us. promising technology the Internet presents to all of us. … I think what we are hearing is that fair and … I think what we are hearing is that fair and reasonable licensing needs to take place.reasonable licensing needs to take place.””

““I take it as a basic premise that our copyright laws I take it as a basic premise that our copyright laws must play a role — a strong role — in protecting must play a role — a strong role — in protecting creative works over the Internet. These protections, creative works over the Internet. These protections, however, must be secured in a manner which is however, must be secured in a manner which is mindful of the impact related regulation can have on mindful of the impact related regulation can have on the free flow of ideas that a decentralized, open the free flow of ideas that a decentralized, open network like the Internet creates. We must protect the network like the Internet creates. We must protect the rights of the creator. But we cannot, in the name of rights of the creator. But we cannot, in the name of copyright, unduly burden consumers and the copyright, unduly burden consumers and the promising technology the Internet presents to all of us. promising technology the Internet presents to all of us. … I think what we are hearing is that fair and … I think what we are hearing is that fair and reasonable licensing needs to take place.reasonable licensing needs to take place.””

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““I take it as a basic premise that our copyright laws I take it as a basic premise that our copyright laws must play a role — a strong role — in protecting must play a role — a strong role — in protecting creative works over the Internet. These protections, creative works over the Internet. These protections, however, must be secured in a manner which is however, must be secured in a manner which is mindful of the impact related regulation can have on mindful of the impact related regulation can have on the free flow of ideas that a decentralized, open the free flow of ideas that a decentralized, open network like the Internet creates. We must protect the network like the Internet creates. We must protect the rights of the creator. But we cannot, in the name of rights of the creator. But we cannot, in the name of copyright, unduly burden consumers and the copyright, unduly burden consumers and the promising technology the Internet presents to all of us. promising technology the Internet presents to all of us. … I think what we are hearing is that fair and … I think what we are hearing is that fair and reasonable licensing needs to take place.reasonable licensing needs to take place.””

— — Orrin Hatch, July, 2000Orrin Hatch, July, 2000

““I take it as a basic premise that our copyright laws I take it as a basic premise that our copyright laws must play a role — a strong role — in protecting must play a role — a strong role — in protecting creative works over the Internet. These protections, creative works over the Internet. These protections, however, must be secured in a manner which is however, must be secured in a manner which is mindful of the impact related regulation can have on mindful of the impact related regulation can have on the free flow of ideas that a decentralized, open the free flow of ideas that a decentralized, open network like the Internet creates. We must protect the network like the Internet creates. We must protect the rights of the creator. But we cannot, in the name of rights of the creator. But we cannot, in the name of copyright, unduly burden consumers and the copyright, unduly burden consumers and the promising technology the Internet presents to all of us. promising technology the Internet presents to all of us. … I think what we are hearing is that fair and … I think what we are hearing is that fair and reasonable licensing needs to take place.reasonable licensing needs to take place.””

— — Orrin Hatch, July, 2000Orrin Hatch, July, 2000

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The Long-Term Resolution forThe Long-Term Resolution forInternet-Distributed Music Will BeInternet-Distributed Music Will Be

The Long-Term Resolution forThe Long-Term Resolution forInternet-Distributed Music Will BeInternet-Distributed Music Will Be1.1. Licensing, as is done for radio, with fees Licensing, as is done for radio, with fees

collected from ISP’s, infrastructure collected from ISP’s, infrastructure providers, etc.providers, etc.

2.2. Continued reliance on per-use, per-file, or Continued reliance on per-use, per-file, or other “by-the-drink” fees, with abuse other “by-the-drink” fees, with abuse controlled by hardware- and software-controlled by hardware- and software-enforced DRMenforced DRM

3.3. Something elseSomething else

1.1. Licensing, as is done for radio, with fees Licensing, as is done for radio, with fees collected from ISP’s, infrastructure collected from ISP’s, infrastructure providers, etc.providers, etc.

2.2. Continued reliance on per-use, per-file, or Continued reliance on per-use, per-file, or other “by-the-drink” fees, with abuse other “by-the-drink” fees, with abuse controlled by hardware- and software-controlled by hardware- and software-enforced DRMenforced DRM

3.3. Something elseSomething else

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A Good ReferenceA Good ReferenceA Good ReferenceA Good Reference““Alternate Distribution Strategies for Digital Music”Alternate Distribution Strategies for Digital Music”

——G. Prem Premkumar, College of Business, Iowa G. Prem Premkumar, College of Business, Iowa State University, State University, CACMCACM v46 n9 September, 2003 v46 n9 September, 2003

““Alternate Distribution Strategies for Digital Music”Alternate Distribution Strategies for Digital Music”

——G. Prem Premkumar, College of Business, Iowa G. Prem Premkumar, College of Business, Iowa State University, State University, CACMCACM v46 n9 September, 2003 v46 n9 September, 2003