the evolution of online piracy of music
TRANSCRIPT
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The Evolution of Online Piracy
of Music
Alexis Nadolny
George JongMelinda Berger
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Questions
What technologies enable or inhibit musicpiracy?
What problems or issues have developedwith file-sharing?
What is the legal viewpoint?
What will the future hold?
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What are MP3s?
Highly compressed music files that make iteasier to download and transfer music
from one computer to another In comparison to other formats, they are
more manageable due to their size and
have an increased clarity thus makingthem a better quality
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MP3 Player (WinAmp)
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Napster Screen
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Napster technologyincorporates a
centralized or server-based Peer-to-Peer(P2P) network
Servers store data and
applications that PCscan access
There is a central listof information that isaccessed by all theusers of the system
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The locations of all the music files of theusers that are currently on-line are kept
on the central network, but the filesthemselves stay on the users computersuntil another computer asks for it
Under the Napster program there is noprocess for checking to see if thematerials distributed are protected by
copyright, nor does the system recognizethe true identity of the users involved inthe transaction
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Intellectual Property
Consists of patents, copyrights,trademarks, and trade secrets, which are
legally protected rights Copyright prohibits the unauthorized
duplication, performance, or distribution of
creative works
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Recording Industry
Association of America Mission: to foster a business and legal
environment that supports and promotes
its members creative and financial vitality Members: artists and record companies
RIAA members create, manufacture, and
distribute approximately 90% of alllegitimate sound recordings produced andsold in the U.S.
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Financial Losses
Annual revenue for recorded music in theUnited States is $14 billion; worldwide it's
$38 billion The RIAA claims that $5 billion in annual
revenue is lost to piracy, only accounting
for what is passed around on compact discor tape
No one knows yet what MP3s and file
sharing will cost in lost revenue
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A&M Records, Inc, A Corporation;
Et Al., vs. Napster, Inc., A
Corporation Prosecution: there are no royalties being
paid to anyone; Napster should have toobtain permission before downloads occur 90% of the 20 million downloads that occur
everyday on Napster are copyrightedthe Napster service and system is
piggybacking on our clients investment in the
manufacture and creation of those recordings,the promotional costs, the advertising, all ofwhich go into making a Napster user want todownload our recordings.
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Defense: It is impossible to sort by word
Napster has complied with the DMCA
We have attempted to inhibit illegaldownloads
MP3s are a development of Sony, one of therecord companies, and that new technologyhas been developed and will be used onfuture compact discs to prevent programssuch as Napster to allow file sharing
you can not destroy the MP3s that alreadyexist and those that are out there now, willalways be free
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The Honorable Marilyn Hall Patel decided
against Napster, Inc. and in favor of A&MRecords, Inc.
The judge determined that Napster wasfacilitating something that involves theinfringing upon plaintiffs copyrightedworks...
Napster appealed and was denied.
A new liability test was developed
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Other Legal Issues
Metallica filed suit against Napster and 3universities for racketeering
Dr. Dre gave Napster a deadline to
remove his songs from the program Both Metallica and Dr. Dre gave Napster
lists of names of people who had illegally
downloaded their music from theprogram. They demanded these peoplebe removed from the service and directlythreatened their fans with litigation
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Napsters Successors
Newer technologiessuch as Gnutella and
FastTrack aredecentralizednetworks where eachpeer connects directly
to other peers withoutbeing directed by aserver
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To use these networks freely,software such as BearShare andLimeWire can be downloaded for the
Gnutella network and Morpheus andKaZaA can be likewise downloadedfor the FastTrack network
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More Litigation
RIAA and MPAA are prosecuting MusicCity,KaZaA and Grokster on the grounds of
copyright infringement Scour has been shut down
DeCSS ruling was overturned
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Legal Future
Copyright, fair use, antitrust, privacy
Broacasters will probably be involved in
law suits
Restrictions and financial charges will bedesigned
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Technological Future
Digital Rights Management (DRM)
Microsoft
Hackers
Secure Digital Music Initiative (SDMI)
Watermarks
Cannot play existing MP3s
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Conclusion
New technologies will be developed toenable piracy and also to inhibit it
New litigation will take place andprecedents will be set
Music piracy will continue as long as the
technology exists