11/30/08

US Public Affairs - 30/11/08

In Peer-to-Peer File-Sharing Case, "Distribution" Does Not Mean "Making Available"

"At trial, the plaintiffs sought to prove that the defendant, a single mother in Duluth, had willfully infringed 24 of the plaintiffs' recordings by downloading and distributing them via the peer-to-peer program Kazaa. Finding that the defendant had infringed, the jury awarded the plaintiffs statutory damages of $9,250 per song, for a total of $222,000. The defendant filed a motion for a new trial or, in the alternative, for remittitur, calling for a reduction of excessive damages; the plaintiffs filed an unopposed motion to amend judgment, seeking an injunction. Instead, the court elected sua sponte to address the possibility of granting a new trial because of an incorrect jury instruction." [CyberLaw]


Music Sampling Does Not Infringe on Copyright, But…

"The German Supreme Court (BGH) clarified last week that sampling does not infringe on copyright in the work from which samples were taken for the purpose of creating a new work. There is a catch hiding in the details, though. According to the official press release (in German), the highest judicial authority in Germany ruled that a certain statutory exception principally covered instances of sampling. The relevant exception is anchored in section 24 to the German copyright act, known as “free use” (freie Benutzung). Free use is not fair use, but you can think about it as an extreme version of the transformativeness element familiar from the U.S. fair use analysis. Accordingly, the new work must transform the work of which elements it uses into something independent and wholly different. While using the copyrighted elements taken from the prior work, such use should be so transformative that the first work becomes hardly recognizable as the source." [CyberLaw]


Digital Copyright Issues and the Ubiquitous iPod

"The advent of new technologies has resulted in Copyright law having to adapt to new situations and infringements. These technologies, including music formats that contain compression, as well as the reduction in cost and size of hard drives has created significant new challenges and markets for digital content. Even in the short life of the iPod, it has gone from a music device, to a multimedia device. This article examines some of the issues and case law that is relevant to the content revolution created by the iPod." [SSRN]

The Dangers of the Digital Millennium Copyright Act: Much Ado about Nothing?

"In 1998, Congress passed the Digital Millennium Copyright Act (DMCA), a landmark piece of legislation aimed at protecting copyright holders from those who might manufacture or traffic technology capable of allowing users to evade piracy protections on the underlying work. At its core, the DMCA flatly prohibits the circumvention of technological protection measures in order to gain access to copyrighted works, with no safety valve for any traditionally protected uses. While hailed as a victory by the software and entertainment industries, the academic and scientific communities have been far less enthusiastic. The DMCA's goal of combating piracy is a noble one, but lurking is the danger that it comes at the expense of public access to protected works and future innovation. Despite America's long history of fair use protections in copyright law, many commentators have warned that consumers now find themselves unable to do many of the same things with copyrighted works that they previously could - anyone who might sell them the technology to access a protected work and enable fair use would find themselves in violation of the DMCA. Worse, early litigation dramatically expanded the definition of what constitutes a technological protection measure deserving of the law's respect. As the definition broadened, scholars feared that even modest innovations - ones that would never qualify for patent protection under existing law - could wind up receiving perpetual patent-like protection through the backdoor of the DMCA. Despite the experts' dire predictions, however, subsequent common law interpretation of the DMCA has reigned in many of its potential dangers - the judiciary's focus is rightly on the need to balance innovators' interests with the equally important goals of public access and enhancing overall social welfare. Nonetheless, coherent and uniform protection of fair use under the DMCA is likely best achieved through Congressional action." [SSRN]


Why Emerging Business Models and Not Copyright Law are the Key to Monetising Content Online

"The multimedia Internet is here to stay. Rich media - including videos, music, podcasts, and flash animation - is already a key feature of the Internet experience, and will only grow in diversity and importance. As Internet users increasingly crave - and technology increasingly enables - multimedia content delivered on demand over broadband connections, the number of songs, videos, and other media online will increase exponentially to feed the demand. As online media consumption increases, so will expectations for its capacity to generate revenue for content owners and creators. Analysts boldly predict a bright future for the entertainment industries, especially in Asia, with broadband Internet cited as a key growth driver. Yet, to date, the vast majority of music and video acquired or consumed online is free and uncompensated. Despite the rising expectations for monetizing content on the Web, no clear sustainable, scalable model for monetizing content has emerged that compares to the level of revenues copyright owners have enjoyed in the "physical" (as opposed to online) market." [SSRN]

11/28/08

EU Public Affairs Monitor - 28/11/08

Danish court confirms Pirate Bay is illegal & orders access to be blocked by ISP
"Music companies internationally today welcomed a landmark Danish ruling involving the world’s best known pirate distributor of music, books and films. The decision confirms the illegality of Sweden's Pirate Bay and requires a Danish ISP to implement measures to block access to the site.

The judgment delivered yesterday by the Danish appeal court upholds the decision earlier this year requiring access to the Pirate Bay to be blocked. The court confirmed the mass scale infringement taking place on the Pirate Bay site and that the ISP in question, Sonofon, is contributing to the infringements by allowing access to the pirate site. It is the latest step forward in attempts by the creative industries to engage ISPs in helping stop massive copyright infringement on the internet." [MusicWeek]

EU Public Affairs Monitor - 28/11/08

Monopoly of collecting societies' activities: infringement proceedings against the Czech Republic and Hungary
"The European Commission has decided to send reasoned opinions to the Czech Republic and Hungary on the grounds of obstacles to the freedom of establishment and to the freedom to provide services as a result of the monopolies granted to national rights management companies.

Czech and Hungarian laws provide that a single collecting society may be authorised to operate in their respective countries for each type of right and work. This monopoly granted to national companies bans collecting societies set up in other Member States from undertaking any form of activity and denies them the freedom of establishment and the freedom to provide services. The Commission has doubts as to the justification of those national measures in the light of their negative effects on two of the fundamental freedoms enshrined in the EC Treaty." [Europa]

The latest information on infringement proceedings concerning all Member States is available at:
http://ec.europa.eu/community_law/index_en.htm

EMI Music CEO Applauds Govt Action On ISPs
"EMI Music CEO Elio Leoni-Sceti has spoken of his support for the U.K. government's and others' attempts to get ISPs to tackle illegal file-sharing, while admitting the music industry failed to adapt to changes in consumer behavior. Leoni-Sceti appeared at U.K. media/telecoms regulator Ofcom's Next Generation Net Generation conference in London. Vivendi chief executive Jean-Bernard Levy was also among the business leaders at the conference.

The EMI Music CEO appeared on a panel, "Global Content Economy - Challenges for Business," alongside executives including Telefonica Europe CEO Ronan Dunne, Nikesh Arora, president EMEA (Europe, Middle East, Africa) operations, Google, and Roma Khanna, president, global networks & digital initiatives at NBC Universal. Pledging to transform EMI into a "consumer-focused music company," Leoni-Sceti commented: "The new EMI wants to be the most consumer-led, innovative music company in the world - that means listening to our consumers and putting the consumer experience at the heart of our business strategy."A consultation process was recently concluded by the U.K. government, following this summer's brokering of a Memorandum of Understanding between the music industry and ISPs. Part of the agreement includes a pledge by ISPs to write letters to customers who are involved in illegal peer-to-peer activity." [BillBoard] [CMUDaily]

Artists send video message to PM over copyright term
"More from the campaign to persuade Gordon Brown to increase the recorded music copyright term now - and this time the protests have been presented in video form. As much much previously reported, record labels and recording artists have been lobbying the government regarding extending the recording copyright from 50 to 95 years for ages now; the former because the legendary recordings of the rock n roll era are about to come out of copyright; the latter because there is a whole generation of session musicians who will soon start to lose the royalty payments that stem from recordings they worked on in the sixties, which for some are a bulk of their earnings. " [CMUDaily]

EURO LICENSING: THE HARD ROAD AHEAD
"There is no 'us' and 'them' any longer. With nearly 50% of all music consumed by Europeans classified as international repertoire and the rest considered to be essential local music preserving the cultural identities of each European Union (EU) nation, the troubled state of licensing digital publishing rights is not, as some said a few years back, 'a European problem.' After intervention by the European Commission (EC), the current structures for licensing these rights are seen by some to be as volatile as the financial markets. How everyone responds to the situation will inevitably impact the future of recorded music, music publishing, digital and mobile music services and broadcasting -- and everyone else in the creator-to-consumer chain of distribution. Considering the importance of intellectual property as a significant contributor to worldwide economies, figuring out solutions during this economic crisis, in the midst of the physical-to-digital music transition, becomes even more essential.

Music Confidential reached out to senior executives and lawyers throughout Europe to shed some light, and perhaps a bit of insight, on problems and possible solutions following the EC's mandate to restructure rights and operating procedures among the network of collecting societies. Despite an extraordinary amount of angst and concern among the interested parties, there are opportunities and some optimism to report." [MusicConfidential]

Conference calls on WIPO to Boost Support for Collective Management of Copyright and Related Rights
"A conference on the future evolution of collective management of copyright and related rights in Europe has called on WIPO to step up efforts to help stakeholders address the emerging challenges facing collective management. Participants urged WIPO to strengthen the copyright infrastructure so as to support creative industries and promote social, economic and cultural development.

The Conference on Collective Management of Copyright and Related Rights in Europe, held in Brussels from November 24 to 25, 2008, was organized by WIPO in association with the European Grouping of Societies of Authors and Composers (GESAC) and in cooperation with the Association of European Performers’ Organisations (AEPO-ARTIS), and the International Confederation of Societies of Authors and Composers (CISAC)." [WIPO]

The European IP market needs a revolution
"The European R&D and patenting world treat intellectual property as a legal right and nothing else. Most companies and investors want that attitude to change. If it does, a number of exciting possibilities can begin to emerge.What Europe needs most is intermediaries from outside the law
A recent EPO survey revealed that 60% of European companies do not care if the inventions and technologies they find and use are patented or not (which surely helps explain the modest levels of patent registrations in many EU countries!). At the same time, however, countless European surveys have revealed that technological innovation is the priority for the EU's institutions, as well as national and regional governments, industrial associations and others; and that European companies are very keen to improve technological innovation (including R&D outsourcing) as key weapon in the global competition race.
These conflicting findings tell us a few key things about the type of IP market Europe should adopt, given that improving its existing one is an official target, as set out by EU leaders in the Lisbon Agreement."

The complete article (and the accompanying charts) in .pdf format is saved on the shared file (in the Monitoring section). A text version can be read on:
http://66.102.9.132/search?q=cache:3BkUjCSMfg8J:www.wipo.int/sme/en/best_practices/pdf/european_ip_market.pdf+WIPO+European+IP+Market+needs+a+revolution&hl=nl&ct=clnk&cd=1&gl=be [WIPO]

EU Public Affairs Monitor - 28/11/08

Hadopi : Bruxelles critique la France et réclame des explications
"La Commission européenne vient d’adresser une longue liste d’observations à la France sur le projet de loi antipiratage, révèle ce matin la Tribune. Le texte Création et Internet avait été notifié à l'Europe le 22 juillet, et jusqu'au 23 octobre dernier, chaque État membre a pu émettre des commentaires conformément au droit européen qui impose pareille procédure quand un texte touche à la société de l’information. Dans cette synthèse, manque de chance pour la France, les doutes et questionnements sont nombreux." [PCInPact]

La Commission européenne critique le projet de loi création et Internet
"La Commission européenne apprécie modérément le projet de loi Création et Internet qui doit être voté début 2009 à l'Assemblée nationale. Dans une lettre rédigée il y a plus d'un mois, mais rendue publique seulement jeudi 27 novembre sur le site de La Tribune, la Commission européenne demande plusieurs modifications et explications au gouvernement français, pour rendre le texte conforme à la législation européenne. Certaines modifications réclamées par la Commission ont entre-temps été intégrées dans le projet de loi lors des débats au Sénat. Mais des points essentiels n'ont toujours pas été pris en compte." [LeMonde]

Loi antipiratage sur Internet: les observations de Bruxelles
La Commission européenne vient d'envoyer à Paris ses "observations" concernant le projet de loi de lutte contre le piratage sur Internet. La lettre critique de nombreux aspects du texte (notamment la coupure de l'accès Internet des pirates) et suggère plusieurs modifications. Bruxelles n'est guère enthousiaste concernant la loi française de lutte contre le piratge sur Internet. Voici en exclusivité les "observations" que la Commission européenne vient d'envoyer à Paris concernant le projet de loi. La lettre critique de nombreux aspects du texte (notamment la coupure de l'accès Internet des pirates) et suggère plusieurs modifications. [LaTribune]

Outlines of telecoms regulatory regime becomes clearer
“UK and Sweden accept compromise deal but flag up their “considerable concerns” relating to investment and the power of operators. EU telecoms ministers today agreed a fragile compromise on overhauling the EU's regulatory regime for the telecommunications sector, opening the way for negotiations to reach a final agreement with the European Parliament and the European Commission early next year.

The EU's current presidency, France, went into the meeting with a new compromise text, but encountered opposition from seven national delegations (the UK, Denmark, Sweden, Ireland, Belgium, the Netherlands and Italy) on issues ranging from the right of the European Commission to veto remedies proposed by national regulators, stronger powers for a new body – the Group of European Regulators (GERT) – and rules on allocating radio spectrum.” [EuropeanVoice]

Commission slams France over internet law
“New French rules designed to protect intellectual property online are likely to fall foul of the European commission, Le Monde reports.
Media commissioner Viviane Reding has already warned Paris that moves to block internet access of those found guilty of breaching copyright would breach EU law – but French lawmakers have persisted in following this line, the paper notes.

In a letter to the French government, Reding said that blocking access was disproportionate because the internet was about so much more than downloads – and that essential services such as banking or tax declarations online would also suffer as a result.” [TheParliament]

National differences could scupper telecoms legislation
Note: this article was released last Friday, right after I sent the previous monitoring. I include it as I think it gives a good overview of what could have happened should an agreement not have been found yesterday.
“Parliament warns of cost of failure to agree; plans for independent national regulators resisted. Telecoms ministers are at loggerheads over future reform of industry regulation ahead of a crucial meeting next week.
If the ministers fail to reach agreement on 27 November the entire package of proposals could be held back until the end of next year.

With less than a week to go, there are still divisions among EU member states and between the Council of Ministers, the European Commission and the European Parliament. Leading MEPs who worked on agreeing the Parliament's position on the package have written to Luc Chatel, the French telecoms minister who will chair the ministers' meeting, warning that failure to reach agreement next week risks great uncertainty for the telecoms sector at a time of economic crisis.” [EuropeanVoice]

Telecommunications package: unanimous agreement of the 27 on the text
“Luc Chatel, the French Minister of State for Industry and Consumer Affairs, who presided over the Telecommunications Council in Brussels on Thursday 27 November, welcomed the political agreement reached on the Telecommunications Package. Eric Besson, the French Minister of State for Forward Planning, Assessment of Public Policies and Development of the Digital Economy, then presided over the next part of the Council on promoting the information society and the internet of the future.” [UE2008]

EU Events Monitor - 28/11/08

Françoise Le Bail: Small business, big ideas
"Next May, entrepreneurs from across the EU and further afield will take part in a series of events marking the first ever European SME Week. The week, which will run from 6-14 May, is being coordinated by the European commission’s enterprise and industry directorate-general under the slogan, “Small business, big ideas”. SME week will include fairs and conferences, online events, art and performance, networking events, company open days and competitions, all aimed at supporting Europe’s small businesses." [ParliamentMagazine]

Briefing - 3-4 December 2008 - Brussels plenary session
http://www.europarl.europa.eu/news/expert/briefing_page/41903-322-11-47-20081113BRI41902-17-11-2008-2008/default_en.htm

EU Council Monitor - 28/11/08

Transport, Telecommunications and Energy Council Meeting
The conclusions of the Council meeting are available for download here: http://www.consilium.europa.eu/cms3_applications/applications/newsRoom/loadBook.asp?BID=87&LANG=1&cmsid=354

Les Etats membres de l’Union européenne sont tombés d’accord pour retirer l’amendement n°138 ( dit " amendement Bono ") du Paquet “Christine Albanel, ministre de la Culture et de la Communication, se félicite que tous les Etats membres de l’Union européenne soient tombés d’accord pour retirer l’amendement n°138 ( dit « amendement Bono ») du Paquet Télécom.
http://www.culture.gouv.fr/culture/actualites/index.htm

EU Commission Enterprise and Industry - 28/11/08

DG Entreprise & Industry: The second conference of the Europe INNOVA community focused on the current financial turmoil and how accelerating innovation would help the EU to weather the storm and prosper
"Some 550 delegates from 30 different countries arrived in Lyon for the second conference of the Europe INNOVA community. The three-day gathering proved to be as innovative as its participants, and creatively explored the main issues facing innovation policy and support in the EU. The participants discussed instruments for transforming and translating knowledge into successful business ideas and applications, as well as the most efficient ways of tackling access to finance, intellectual property rights (IPR) and providing support to fast-growing companies and clusters. A number of models and tools developed by Europe INNOVA networks to accelerate the commercialisation of new ideas and in support of innovative companies were also showcased. How innovation can be marshalled to pull Europe out of the emerging economic turmoil was also high on the agenda – and on participants’ minds." [Europa]

DG Entreprise & Industry: Towards the next generation of Europe INNOVA: New call for proposals published
"The call for proposals for the next generation of Europe INNOVA projects was published on 12 November 2008. The call concerns the setting-up of Innovation Platforms for transnational cluster cooperation, knowledge-intensive services, eco-innovation and the promotion of novel tools and service concepts for innovation support.

The calls documents can be downloaded from:
http://ec.europa.eu/enterprise/funding/files/themes_2008/calls_prop.htm, where any updates will also be published. The deadline for submission of proposals is 12 February 2009.

A partner search tool is available on:
http://www.proinno-europe.eu/index.cfm?fuseaction=page.display&topicID=434&parentID=0.

In parallel with this call for proposals, a call for proposals under the PRO INNO Europe® Initiative has also been published. An information day is planned for 17 December 2008 in Brussels on the Europe INNOVA (morning session) and PRO INNO Europe® (afternoon session) calls for proposals. Please be aware that you must pre-register for the information day by filling in the registration form available with the call documents. [EuropeInnova]

EU Commission Education and Training Culture and Youth - 28/11/08

European Institute of Innovation and Technology (EIT): Commission welcomes launch of discussions on shape of Knowledge and Innovation Communities (KICs)
The first seminar on the format of, and selection criteria for, the Knowledge and Innovation Communities (KICs), is held today in Bratislava, Slovak Republic. The KICs will be the operational parts of the European Institute of Innovation and Technology (EIT). The Commission welcomes this seminar, which the EIT Governing Board is using to start a dialogue with interested parties to establish a common vision for the KICs.

At the event, Ján Figel', the European Commissioner for Education and Training, Culture and Youth, said “The EIT is a unique, new structure that will bring together the worlds of education, research and business innovation. What a challenge! The key to its success will be how the Knowledge and Innovation Communities, the "KICs" as we call them, will function. This is why I very much welcome the initiative of the EIT Governing Board to actively engage in an exchange of ideas with interested parties on how the future KICs will be established, about the format of future KICs and how the three axes – education, research, innovation – should work together.” [Europa]

EU Commission Telecommunications - 28/11/08

27/11: Telecoms Council: Commission sees improved Council position on the EU Telecoms Reform as good basis for negotiations with the European Parliament
"Telecoms Council: Commission sees improved Council position on the EU Telecoms Reform as good basis for negotiations with the European Parliament

Following the Telecoms Council's deliberations this morning, Viviane Reding, the EU Telecoms Commissioner, commented on the Council's results for the EU Telecoms Reform as follows: "There was a constructive crisis this morning at the Council meeting, as several delegations felt that the Council text agreed so far was not ambitious enough. I applaud Secretary of State Luc Chatel for having resolved this crisis with skill and a pro-European intention. The new text now agreed by Ministers is an improvement compared with the initial text of this morning, even though I continue to believe that Europe's telecoms sector requires better rules than those now on the table here. Nevertheless, the new Council text is a basis now for the negotiations between Council and the European Parliament, which co-decides on the EU-Telecoms Reform. However, if we want to reach an agreement under this Parliament, all three institutions – Parliament, Council and Commission – must sit down together without delay and get down to work on a common approach. Europe has no time to lose: our operators need a single market for telecoms; our rich spectrum resources need to be managed more effectively in the interests of our economy and the goal of 'broadband for all' – especially in these difficult economic times; and European consumers should have a clear bill of rights. I therefore ask the French Presidency to call a meeting of the three institutions early in December. Only this can pave the way for a second reading agreement in spring 2009."" [Europa]

EU Commission Monitor - 28/11/08

Ombudsman investigates Commission's Early Warning System
The European Ombudsman, P. Nikiforos Diamandouros, has opened an investigation into the European Commission's "Early Warning System" (EWS). This computerised information system lists companies, NGOs, associations or other parties which, according to the Commission, are deemed to pose a threat to the financial interests of the European Union. All EU institutions and bodies may block or suspend contracts or payments to entities listed under certain EWS warning levels.

Currently, participants in EU projects or applicants are not systematically informed if they are included in the EWS. It is also unclear how stakeholders can appeal against such a listing. Mr Diamandouros has said: "It is undoubtedly very important that the Commission should make every effort to protect the EU's financial interests. However, companies, NGOs, and other associations must also be treated fairly and with due respect to the fundamental legal principle of the presumption of innocence."

The Ombudsman has asked the Commission to respond by 28 February 2009. [Europa]

11/27/08

EU Public Affairs Monitor - 27/11/08

France votes for 'three strikes' filesharing law
The French senate has voted overwhelmingly in favour of Nicolas Sarkozy's anti-piracy legislation that offers illegal filesharers two warnings before cutting off their internet access

This week, as ever, it's one step forward and two steps back for the recording industry's anti-piracy legislation. Even as France seems poised to pass a new "three strikes" law against filesharers, lobbyists in Denmark have given up on the chance of passing similar legislation.

On Monday, the French senate voted 297 to 15 in favour of a law that penalises illegal filesharers by cutting off their internet access. Under the legislation, internet providers would be forced to act as watchdogs, monitoring their customers' internet traffic for signs of copyright infringement. Anyone caught illegally sharing music, movies or games would receive two warnings before having their account terminated. [Guardian]

Call for clampdown on rogue online ticket sellers October 27 2008
Ticketing websites have called on the government to crack down on rogue online operators after a spate of high-profile examples of consumers being ripped off. Andy Burnham, the culture secretary, is believed to be close to launching an industry consultation based around proposals first floated this year in response to concerns about the booming online market in tickets for concerts and sporting events. [Guardian]

Last.fm Asks UK "Hackers" To Help Extend Reach: Contest Offers £1000 Prize 2008.11.27
Last_fm Last.fm will host “Hack Day” on December 14th at Corbet Place Bar, East London. At the event which is hosted in partnership with CodePlex, Microsoft's open source project hosting web site, developers will be invited to utilize Last.fm’s free open source web services in a one-day competition to build a new Last.fm application. The winning developer will receive a grand prize of £1000, with additional prizes for the competition’s runners-up including Xbox 360s.Available since the site’s inception in 2002, Last.fm’s web services, which developers can use to extend the Last.fm experience beyond the site, have been utilized by third parties to create a host of music applications showcased at Build.Last.fm. One popular application, a mash-up titled “LastTube”, utilizes listener data from Last.fm to recommend YouTube video clips. [HypeBot]

Europe's cultural heritage goes digital 21 Nov 2008
Europe's heritage went digital on Thursday when the European Union launched an online library putting famous works such as Dante's Divine Comedy and Beethoven's 9th Symphony just a mouse click away.

Europeana gives multilingual access to two million digitised books and other items of cultural and historical significance held in more than 1,000 institutions in the 27 EU states. [ZDNet]

11/26/08

Music News Bulletin - 26/11/08

EMI announces restructuring plans: The troubled music giant is to reveal major restructuring plans, including splitting its business into three distinct global units 7 Nov 2008
"Troubled music giant EMI will today announce major restructuring plans. Elio Leoni-Sceti, chief executive of the company's recorded music division, will unveil the plans at a presentation to staff. The Italian Executive will announce that the business will be split into three distinct global units: new music, catalogue and music services, and with an increase in marketing resources, according to the Financial Times. The online music service EMI.com will launch this December." [Guardian]

Atlantic Records claims digital milestone: First major label to have such sales bring half of revenue Nov 26, 2008
"Following full-year results for Warner Music Group that showed a 39% increase in digital revenue to $639 million, representing 18% of total revenue, the major's label Atlantic Records is claiming a milestone in digital music.

More than half of Atlantic's revenue in the U.S. is from digital products, making it the first major label to reach that proportion for digital, according to the New York Times. The label's artist roster includes Bloc Party, T.I., Estelle, Death Cab for Cutie and Led Zeppelin." [HollywoodReporter]

Warner Music avoids Q4 blues: Company reports profit increase of 20% Nov 25, 2008
"Warner Music Group reported better-than-expected fiscal fourth-quarter results Tuesday, and management believes that the company can outperform peers amid worsening sales trends.

Chairman and CEO Edgar Bronfman Jr. on a conference call also lauded the music business for having been "relatively resilient in previous (economic) downturns" but said he couldn't promise things would stay that way in the current economy." [HollywoodReporter]

Behind the music: Small is beautiful
Independent labels don't have a lot of advantages when competing with the big hitters, but their passion will ensure their survival
November 20 2008
"At a MusicTank conference on Tuesday night, I had a chat with Simon Wheeler, Director of Digital at Beggars Group, about what it's like running an independent label in these changing times for the music industry. He said: "When it comes to negotiating deals with new digital ventures like Nokia Comes With Music and MySpace Music, we can't compete with the majors when it comes to money and might. But we can compete when it comes to talent and signing great artists. And that is our main focus."" [Guardian]

Labels bank on stars during hard times: Music industry hopes for big sales in bad economy Nov. 17, 2008
"Acad disqualification: 'Dark' day or fair play? With consumer confidence in the economy plunging to a record low, the recording industry is bracing for a disappointing holiday season. Nevertheless, the big labels still have some potential aces up their sleeves that might cushion the blow.

Sony BMG is expecting big things from Beyonce, whose last album, "B'Day," debuted at No. 1 on the Billboard 200. This time, she takes a big leap with a double-CD set titled "I Am ... Sasha Fierce," due out today. According to the singer, half the album is Beyonce "underneath all the makeup" and the other represents her glamorous alter ego." [Variety]

11/25/08

Music News Bulletin - 25/11/08

Datz Music Lounge
"I am a little late on this one. A couple of weeks ago Datz Music Lounge announced that it would be offering unlimited permanenet downloads in the UK for 99 GBP per year (approximately $155). Read more about the service here.

Datz offers a tremendous value proposition but it will never take off - just like subscription services will never be more than niche. The problem is a misunderstanding of consumer psychology." [AdSupportedMusic]

MySpace Music names president: Courtney Holt tapped to run music offshoot 25/11/08
"MySpace has found its top music man. News Corp.'s social-networking site has named Courtney Holt prexy of MySpace Music, the music offshoot it launched in September with the backing of all four of the biggest record companies.

Holt, who formerly served as exec VP of digital music for MTV Networks Music and Logo Group, takes the reins on Jan. 5. He will be responsible for overseeing the growth and development of the MySpace Music brand and will relocate to Los Angeles from Gotham to take the post." [Variety]

(Red) bows subscription music site: Service will raise money for the Global Fund Nov. 24, 2008
"(Red), the Bono-led organization that raises awareness and money to help eliminate AIDS in Africa, will launch a weekly subscription music service Monday. Launch of (Red) Wire at MSN.com, being held on World AIDS Day, will include world premiere songs and videos from Coldplay, Death Cab for Cutie, Dixie Chicks, Jay-Z, John Legend, the Killers with Elton John, the Police with Elvis Costello, U2 and others. Bob Dylan and R.E.M. will be supplying content in the near future." [Variety]

MusicBox leads hybrid-license movement: Shop functions as library and original music creator Nov. 17, 2008
"MusicBox is trying to build a better mousetrap. As the number of outlets needing inexpensive production music -- such as the Internet, cable reality shows and TV commercials -- continues to grow, more libraries are joining the fray. Even the major music publishers have been snapping up the leading independents as a way of gaining market share. Production music typically describes the songs emanating from the juke box in a bar scene, the overhead music while a character shops in a mall or the theme music of a reality show." [Variety]

CBS launches Play.it to compete with, er, Last.fm 18/11/08
"US media giant CBS has quietly launched something called Play.it - a music streaming service that lets users create their own personalised stations, listen to artist-themed stations, or tap into 340 existing channels from CBS and AOL Radio." [MusicAlly]


Music News Bulletin - 25/11/08

Anderson downgrades Long Tail to Chocolate Teapot status: Metaphor swallows Man 21st November 2008
""The end came quickly," as authors of morbid weepies like to say. On Monday WiReD magazine editor Chris Anderson effectively admitted game over for his "Long Tail", the idea he's been dragging so lucratively around the conference circuit for the past four years. In as many words, he downgraded it from "the future of business" to something that's, er, not very helpful for your business at all.

"I'll end by conceding a point: It's hard to make money in the Tail," Anderson wrote. "The revenues are disproportionately in the Head. Perhaps that will never change."

As befits a quasi-religious cult, the straw that broke the Long Tail's back wasn't empirical evidence, but the Word of God. The Google God, to be precise - Eric Schmidt. Will Page's exhaustive analysis of tens of millions of music transactions from a giant digital music store had already prompted a last ditch stand. But it was remarks by Schmidt, however, interviewed by McKinsey, that prompted the downgrade. Schmidt said they make most of the money in the top 10 per cent of advertising inventory." [TheRegister]

Artist Royalty Program (Slight Return) November 7th, 2008
"This is a blog post I wrote for the Last.fm blog, head over there if you want to join the discussion:

With the Artist Royalty Program we wanted to solve a crucial problem. Since we started in 2002 we had licensed music from various ‘content owners’ (major and indie labels as well as digital music distribution companies), and we also paid money to collections societies all over the world. But there were certain artists and labels losing out: those who do not have access to all the above, or chose not to be part of this traditional music industry network." [HeutePopMorgen]

The Long Fail: the cost of digital distribution November 25th, 2008
This is a my recent contribution to the Music Think Tank where you can join the discussion:

Digital distribution as well as promotion has undoubtedly been the best thing that could have happened to music fans as well as musicians. Even bigger content owners are finally seeing the opportunities (instead of the threats) that come with the technical change of delivering ‘media’ over the last ten years. It is now easier than ever for artists to connect to their fans and delivering the music to them, gatekeepers have been eliminated and (in theory) artists can reach out to millions of music fans out there through the internet. So far, so good.

Everyone who works in music knows that there are various new challenges that have developed through new digital delivery methods and those challenges can make it difficult to monetize digital music. I won’t be going into the issue of file sharing (there are enough people out there who have something to say about that) but I want to explore a common misunderstanding about digital media: “digital distribution is free” (or at least very cheap). It is not at the moment." [HeutePopMorgen]

Heron's Eye: 24/11/08

Darling plans £20bn giveaway to tackle year of recession 24/11/08
“Alistair Darling outlined an audacious plan today to tackle the economic crisis by using a £20bn package of tax cuts and handouts to tempt shoppers to spend their way through a rocky twelve months, and support struggling firms.” [Guardian]


Pre-budget report: live 24/11/08
[Guardian]


Retailers welcome cut in VAT to 15% 24/11/08
“Retailers gave a broad welcome to the chancellor's well-trailed 2.5 percentage point cut in VAT to 15%, but store executives and their suppliers believe it will make little immediate difference to consumer spending.” [Guardian]


Pre-budget report - rolling roundup of political reaction 24/11/08
[Guardian]


Bold, imaginative – and it might just work 24/11/08
A mendacious analysis of Darling’s pre budget speech by Will Hutton. [Guardian]


Unflashy Alistair Darling is a hard man to hit 24/11/08
Michael White analyses Alistair Darling’s role and effect on the proceedings of the Pre-Budget Report. [Guardian]

Click here to read more information on Mr Grimsdale, King Heron and Mobius

11/22/08

EU Public Affairs Monitor - 20/11/08

How to destroy the music business 20th November 2008
"Put yourself in these hypothetical shoes for a moment. My goal is to make as much money as possible by doing as little work as possible. I have no creative talent except for generating and recycling marketing buzzwords. I have no technical knowledge or ability - but I can get my head around a Twitter feed. It doesn't sound promising, but you'll want in, I promise.

Now let's imagine a business that can achieve our goals. The natural place to start this business is on the internet - where one can harness the labour of millions of people and pay them sod all for their work. Under the smokescreen of "collective intelligence" or harnessing "the wisdom of the crowd", we can keep our supply costs at zero. And if we can keep reminding these rubes that "power lies at the edge of the network" or "in the Long Tail", they'll produce lots of stuff for us for nothing, without complaining." [TheRegister]

TechDirt's Backfiring Defense of the Thomas Decision--and the "Effective Freedom" of Totalitarian Terror (Part II) 11.21.2008
"Having dealt with Mr. Masnick's self-immolating attack on my analysis of Thomas, I must now even more emphatically reject Mr. Masnick's absurd claim that he "proved" that my paper on Free Culture mischaracterized the views that Professor Lawrence Lessig expressed in Code, a deplorable book advocating government control of the Internet and lawsuits against programmers. Frankly, mischaracterizing Lessig is pointless: quoting him suffices. Nevertheless, Mr. Masnick claimed, "The worst was when a variety of others pointed out Sydnor's out of context comments [sic] and put them back into context--and Sydnor still stood by the paper, refusing to admit he took a single comment out of content."

Nonsense: I stand by my paper because Mr. Masnick and "others" failed to quibble successfully even about details wholly tangential to its main argument. As Mr. Masnick's post indicates, his quibbles claimed that I had unfairly portrayed Lessig as a "communist sympathizer."" [IPCentral]


Asinine lawsuit from French music interests targets Sourceforge Nov 15th 2008
"
Torrent Freak reported yesterday that the SPFF -- think of it as the French RIAA -- filed lawsuits against the developers of P2P clients Vuze, Limewire, and Morpheus. There is also a fourth target, and I'll get to that particular bit of insanity later.

The SPFF's beef is with the fact that these programs don't provide a system to block copyright protected materials from being shared. Because the programs don't prevent files from being shared, the SPFF argues that the programs are complicit in the act itself." [DownloadSquad]

11/21/08

Music News Bulletin - 21/11/08

French Biz Falters, Digital Remains Strong
"The wholesale value of the French recorded music market in the first nine months of 2008 decreased to €382 million ($484 million), down 13.9% from the corresponding period last year, according to new figures issued by labels trade body SNEP. It follows a 20.5% year-on-year shortfall registered for the first nine months in 2007.
i
The reduction in the rate of decline is mainly due to a stronger growth in digital sales, up 52.6% to €52.8 million ($66.9 million). Digital represented 14% of the French market during the period." [Billboard]

The impact of iTunes on the music industry came under the spotlight at the latest MusicTank session earlier this week.
"Sincere Management’s Peter Jenner, the keynote speaker at the Coalition of The Billing event, said that digital retailer has “had the disastrous effect on the record industry of debundling the album”. He told delegates at the third session in the Lets Sell Recorded Music think tank series that iTunes had the effect of converting “a £10 product, the album, into a £1.60 product, the two singles that are worth buying"

Beggars Group director of digital Simon Wheeler argued, “iTunes set a level that took power out of rights holders. Whether it's right or not, it has set the price for a la carte downloads."" [MusicWeek]

Amazon.com launch artist pages
"With MySpace looking to now sell MP3s off artist profile pages, and Live Nation-owned Musictoday, who run official onlines stores for hundreds of artists in the US, announcing last week that they would start selling MP3s from their artists' pages, Amazon US have announced a move in the opposite direction. Already selling CDs and MP3s via their e-tail website, they are launching a new website of artist profiles which will include both editorial and commercial content for each featured singer or band.

Commercially, the new service will basically aggregate all the CDs, MP3s and DVDs Amazon already stocks for any one artist, so that fans can browse all available content on an editorially-driven page, rather than having to work their way through album or artist searches. Amazon US VP of Music & Movies, Peter Faricy, told reporters: "These [artist pages] allow our customers to easily find and discover the music they love in any format along with a variety of artist content, like exclusive music videos and behind-the-scenes footage, all in a single place"." [CMUDaily]

Sources: Apple, music labels talk DRM-free songs
"A year after iTunes began offering music without copy protection software from EMI, Apple is in discussions with the other three top recording companies about acquiring DRM-free songs, according to two music industry sources.The talks are still preliminary and no deals have been finalized, but one source said one of the major labels is close to a final agreement. Rumors have been swirling on the Internet for a week that Sony would soon be offering music without the controversial digital rights management software. My sources could not confirm this.
Spokespeople for Apple and the major labels declined to comment." [CNet]

EU Public Affairs Monitor - 21/11/08

Committee on Culture
"1. Presentation of the outcomes of the French Presidency on 2nd December: The French ministers will present the achievements of the French Presidency of the Council in the fields for which the Committee is responsible. The ministers' presentations will be followed by question and answer sessions with MEPs.

2. Term of protection of copyright and related rights: the draft opinion stresses the importance of implementing measures to ensure fair and consistent remuneration of performers. It will be adopted in Committee on 2 December. The draftsman is Christopher HEATON-HARRIS (EPP-ED, GB)"

A better return for our money: The EU wants the EIB to play a role in its response to the economic crisis – but it must make sure the EIB meets its existing responsibilities better
"The European Investment Bank (EIB), the EU's publicity-shy house bank, has shot to prominence in recent weeks as the global economic crisis has deepened. Nationally and collectively, EU leaders have scrambled to boost lending to small businesses that are being hit by the credit crunch. José Manuel Barroso, the president of the European Commission, has talked up the role the EIB could play in responding to the crisis; Günter Verheugen, the industry commissioner, wants the EIB to offer a €40 billion soft-loan package to the European car industry; and the UK's finance minister, Alistair Darling, has been pushing UK banks to make the most of the EIB's increased loans facility for small and medium-sized enterprises (SMEs)." [EuropeanVoice]

U.K. Music Backs Government Proposal On ISPs
"U.K. Music, the recently formed umbrella organization encompassing the major British music-industry groups, has declared its support for a co-regulatory system between ISPS, the music industry and a government-appointed body to ensure ISPs tackle illegal P2P file-sharing.

In its contribution to the consultation process set up by the U.K. government's Department for Business Enterprises and Regulatory Reform (BERR), U.K. Music says a government-approved independent adjudicator is required to oversee a co-regulatory system covering ISPs and digital piracy. "In view of the historic differences between rights holders and ISPs, some form of regulatory control is required," U.K. Music says in its documents. The organization agrees with the government that media and telecommunications regulator Ofcom is the appropriate body." [Billboard]

UK Music call for online copyright regulator
"Cross-industry trade body UK Music has told the government that it supports proposals for a regulator to oversee copyright issues on the internet. In a submission to a government consultation on the issue of music and the net, UK Music say that, "in view of the historic differences between rights holders and ISPs, some form of regulatory control is required".
As much previously reported, some progress has been made this year regarding the long running dispute between the music industry and the internet service providers, in which the former said the latter had a duty to play a more proactive role in combating online piracy. " [CMUDaily]

Term extension petition launched at PPL APM
"'Performer members' of recordings royalty collecting society PPL (ie recording artists and musicians) have put their names to the latest petition calling on the government to extend the recorded music copyright term.
As much much much previously reported, in Europe the copyright term for recordings is fifty years, whereas the term enjoyed by songwriters (and writers and photographers etc) is life plus seventy years." [CMUDaily]

PPL performer members sign letter to the Prime Minister as UK government continues in its failure to give musicians copyright parity with other creators
"Performer members who attended PPL's second Annual Performer Meeting (APM), which took place at Abbey Road Studios on Monday (17th), were moved to sign a letter to the Prime Minister asking him for Fair Play For Musicians.

This important initiative has been made necessary due to the intransigence of the UK government in their failure to support copyright term extension which would put musicians on parity with other creators (authors, composers, painters, photographers amongst many) and which is being both recognised and supported by the European Commission and governments around Europe." [RecordOfTheDay]

Member States Review Key Copyright Issues
WIPO member states meeting under the auspices of the Standing Committee on Copyright and Related Rights met from November 3 to 7 November 2008 to review a number of key copyright issues. Under the chairmanship of Mr. Jukka Liedes of Finland, the SCCR examined the current state of play WIPO’s work on limitations and exceptions, the protection of audiovisual performances and the protection of broadcasting organizations. Discussions also featured the question of access to copyright-protected content by visually impaired persons. [WIPO]

EU Council Monitor - 21/11/08

Culture Council
"All the conclusions of the Culture Council can be downloaded on the Council website. The most important documents are already saved on available on the shared folder/EU Presidencies/French Presidency" [Consilium]

Christine Albanel a présidé aujourd'hui à Bruxelles Le Conseil des ministres en charge de la Culture et de l'Audiovisuel de l'Union européenne
"Ce Conseil a permis l’adoption par les ministres de plusieurs textes importants négociés par la présidence française lors de ces derniers mois. En premier lieu, les ministres soutiendront et assureront la pérennité et le développement du projet de Bibliothèque numérique européenne. Ce projet, lancé aujourd’hui à la suite du Conseil, en présence du Président de la Commission européenne, José-Manuel Barroso, rend accessible à tous (sur www.europeana.eu) 2 millions de documents, aussi bien livres, qu’archives écrites et audiovisuelles, et collections des musées européens." [Culture]

Clôture de l’année européenne du dialogue interculturel
"The complete speech made by Albanel at the Centre Georges Pompidou last Wednesday" [Culture]

Forum d’Avignon
"The complete opening and closing speeches of Albanel" [Culture]

Europe's cultural history goes digital
"Europeana, a new digital library intended to bring millions of examples of Europe's cultural heritage into homes across the world, went on-line today.
The multimedia library already contains more than two million digitalised books, maps, recordings, photographs and paintings, and the Commission envisages that by 2010 over 10 million works will be on-line." [EuropeanVoice]

EU ministers reject ban on free downloading
"EU culture ministers yesterday (20 November) rejected French proposals to curb online piracy through compulsory measures against free downloading, instead agreeing to promote legal offers of music or films on the Internet.

The EU Culture Council pushed yesterday (20 November) for "a fair balance between the various fundamental rights" while fighting online piracy, first listing "the right to personal data protection," then "the freedom of information" and only lastly "the protection of intellectual property".

The Council conclusions also stressed the importance of "consumers' expectations in terms of access […] and diversity of the content offered online". No mention was made of a gradual response to serial downloaders of illegal cultural material, as foreseen by the French authorities." [Euractiv]

EU Commission Monitor - 21/11/08

Now Online: "Europeana", Europe's Digital Library
"Europeana, Europe’s multimedia online library opens to the public today. At www.europeana.eu, Internet users around the world can now access more than two million books, maps, recordings, photographs, archival documents, paintings and films from national libraries and cultural institutions of the EU's 27 Member States. Europeana opens up new ways of exploring Europe’s heritage: anyone interested in literature, art, science, politics, history, architecture, music or cinema will have free and fast access to Europe's greatest collections and masterpieces in a single virtual library through a web portal available in all EU languages. But this is just the beginning. In 2010, Europeana will give access to millions of items representing Europe's rich cultural diversity and will have interactive zones such as communities for special interests. Between 2009 and 2011, some €2 million per year of EU funding will be dedicated to this. The Commission also plans to involve the private sector in the further expansion of Europe's digital library. In September 2007, the European Parliament supported, in a resolution voted by an overwhelming majority, the creation of a European digital library." [Europa]

Education, Youth and Culture Council (EYC), Brussels, 20-21 November 2008
"This Memo provides a brief overview, from the Commission's point of view, of the issues that were discussed at the "Education, Youth and Culture" Council on 20-21 November in Brussels." [Europa]

EU competition rules – part of the solution for Europe's economy
"Neelie Kroes, European Commissioner for Competition Policy Speech at European Competition Day, Paris, 18th November 2008." [Europa]

11/20/08

Music News Bulletin - 20/11/08

Microsoft enhances the Zune service with MP3s November 20, 2008
"Subscription music services -- the kind that let you hear an unlimited amount of music per month for a flat fee -- made their debut almost seven years ago, and yet the public remains stubbornly cool to the idea of paying for music you don't get to keep. Now, Microsoft is offering the first significant sweetener to the deal since the services added portability by letting subscribers to the Zune Pass service keep some of the songs they play. Ten, to be precise, and the songs will be in the DRM-free MP3 format." [LATimes]

Dell: It's not about the music player November 11, 2008
"Like a popular mayor declaring he's not going to run for president after all, Dell has scrapped plans for a new MP3 player and subscription service, according to the Wall Street Journal. In fact, Dell says in a blog post, the company's strategy "has never been about a music player." Glad we got that straightened out, but I actually liked the idea of Dell developing an inexpensive WiFi-enabled player that could tune in streams from a variety of sources. The secret sauce behind the rumored player was software from Zing, a Silicon Valley start-up that Dell acquired last year." [LATimes]

11/19/08

Music News Bulletin - 19/11/08

Distributor EUK Winds Down, 700 Jobs Cut
“Entertainment wholesale distributor EUK has failed to attract a buyer and the business will now be wound down by the administrators.

EUK, which was part of Woolworths Group, will continue to operate with a reduced workforce of 375 employees. Seven hundred employees were made redundant today (Dec. 12) and efforts to sell the business as a going concern will be scaled down.

EUK was placed in administration - roughly equivalent to Chapter 11 bankruptcy protection in the U.S. - on Nov. 27 along with Woolworths' retail business. The 800-plus stores launched a closing down sale yesterday (Dec. 12).” [BillBoard]

GEMA to join ICE
“GEMA, the German music copyright society, today confirmed that it is actively exploring opportunities to join ICE - the shared back-office service centre for collective rights organisations.

Currently ICE is a joint venture between the MCPS-PRS Alliance and the Swedish society STIM, but GEMA has been carrying out due diligence on the organisation over the past six months and this will continue with a view to GEMA potentially becoming a third partner in the venture.
GEMA’s CEO Harald Heker says a strong back-office has always provided the basis for GEMA's operations. “We believe that a potential participation in ICE, alongside the Alliance and STIM, could provide an important strategic alliance to enable a leap forward in business quality, efficiency and effectiveness."

The Alliance’s CEO Steve Porter adds, the strategic, operational and business logic behind ICE is compelling and gets stronger as new partners and customers join.” [MusicWeek]

GEMA considering joining ICE partnership
“German publishing collecting society GEMA has said it is looking into joining MCPS-PRS and Swedish collecting society STIM's ICE alliance. ICE is a shared admin centre utilised by both the UK and Swedish royalty bodies. GEMA say they have been monitoring how ICE works and the benefits it delivers to MCPS-PRS and STIM for the last six months, and its CEO, Harald Heker, has told Music Week: "We believe that a potential participation in ICE, alongside the Alliance and STIM, could provide an important strategic alliance to enable a leap forward in business quality, efficiency and effectiveness".” [CMUDaily]

EMI.COM launches
“EMI today beta launch their new website EMI.com, which is part of the major record company's attempts to forge closer connections directly with consumers. The site aims to be much more content rich than your average record label website, providing access to full track previews, videos, photos, biographies and whatnot from artists from across the EMI empire. There's also a music recommendation service which recommends artists based on your music preferences - and will make recommendations based on liking artists not signed to EMI as well as those on the label.

Although in some ways just an enhanced version of the kind of group-wide major label sites operated by Sony and Universal (and EMI, for that matter, whose now defunct The Raft website was always more content rich than most label sites), for EMI the EMI.com project is much bigger than that. Signing up and engaging consumers on a regular basis is much more part of the mix, presumably with a view to building relationships with music fans so they can sell recordings and other music-based products directly to them, circumventing, to a point, other retailers and download stores. Better direct customer relations will also strengthen EMI's offer to new artists, because they have a ready made network of profiled music fans they can promote new singings to.” [CMUDaily]

11/18/08

EU Public Affairs Monitor - 18/11/08

Conceptual Art and IP November 18, 2008
"LeWitt's "Distorted Cubes" A piece by Chris Cobb in the new Believer—only the beginning of which is currently available online—describes the author's experience installing works by the American conceptual artist Sol LeWitt at an enormous exhibition at the Massachusetts Museum of Contemporary Art. It's interesting reading on its own terms, but I link it here because it's also an interesting case study for folks who enjoy thinking about intellectual property. First, the epigraph from LeWitt that opens the article:

When an artist uses a conceptual form of art, it means that all of the planning and decisions are made beforehand and the execution is a perfunctory affair. The idea becomes a machine that makes the art.

For LeWitt, that meant producing almost gnomic descriptions of installation works that would actually be constructed by folks like Chris Cobb. Here's one example:

343. On a black wall, nine geometric figures (including right triangle, cross, X) in squares. The backgrounds are filled in solid white.

Cobb later tells us that "the commercial side of the art world dictates that access to the instructions is limited," and that the works have been "loaned" to the museum, meaning "the owner has given MASS MoCA permission to have them executed for the show." My (layman's) first pass reaction was that this didn't sound like it could possibly be legally enforceable. Even if those two very short descriptive sentences are subject to copyright—whatever that's worth given that they've just been quoted in a widely-read magazine—the relevant statutes seem to rule out any monopoly rights in the abstract instructions they express, given the explicit exclusion from copyright protection of an "idea, procedure, process, system, method of operation, concept, principle, or discovery, regardless of the form in which it is described, explained, illustrated, or embodied in such work." Any particular output of this "machine for making art" might be a copyrightable image or structure, but intuitively, the prohibition on executing the abstract instructions would have to be enforced by the conventions of the art world rather than the courts." [ArsTechnica]

EU Public Affairs Monitor - 18/11/08

Tennessee anti-P2P law to cost colleges over $13 million November 18, 2008
With the RIAA's long-running legal war against file-sharing not having the desired effects, the music industry has turned its sights on legislation aimed at getting others to do the dirty work of copyright enforcement. Last week, they scored a victory when the state of Tennessee passed a law that would require colleges and universities to work to prevent copyright infringement over campus networks. It's great news for the RIAA, but bad news for Tennessee students and taxpayers who will have to foot the $13 million bill.

SB 3974 was introduced this past February into the state legislature. Championed by the RIAA, who pointed to the University of Tennessee's no. 4 position on the list of top music piracy schools, and the MPAA, which noted the school's no. 19 spot on its infringement list, the law will force both public and private schools in the state to implement policies to prevent and prohibit copyright infringement on campus computers and networks." [ArsTechnica]

Antipiracy group pushes 10 years jail time for UK infringers November 19, 2008
"Those guilty of online copyright infringement deserve criminal sentencings that are just as harsh as those who've been busted for commercial physical piracy, according to a UK-based antipiracy group. The Federation Against Software Theft (FAST) is pushing the UK's Intellectual Property Office (IPO) to adopt modifications to current copyright law that would punish online infringers with 10 years of imprisonment, "to bring parity with commercial dealing in pirated works."

The IPO is currently in the process of considering changes to the Copyright, Designs and Patents Act of 1988 based on the independently-conducted Gowers Review of Intellectual Property. The Gowers report, wrapped up in 2007, concluded that, "the intention and impact of physical and online infringement are the same. Crimes committed on the online and physical world should not be subject to different sentences. Increasing the penalties for online infringement will therefore make the law coherent." As a result, Gowers wrote that punishment for online infringers should be increased to 10 years in jail, suggestion that's now known as Recommendation 36." [ArsTechnica]

What’s wrong with ISP Music Licensing Fall 2008
"The decline of revenues in the music industry has led the industry to take a closer look at the responsibilities of Internet service providers “ISPs” and alternative compensation schemes both in the United States and in Europe. Many schemes have been considered to compensate the creative community for these losses, including the ida that ISPs could charge all or some of their users a small fee on a monthly basis that each ISP would pay to the creative community as compensation in return for the user’s ability to trade content files without fear of litigation or prosecution. It is worth noting that with very few exceptions, ISPs themselves are not leading the charge to undertake this burden, and it is only within the very recent past hat ISPs have entered into industry wide agreements to support anti-piracy efforts on their networks. Anti-piracy efforts are a long way from ISP licensing…." [ChristianCastle]

How Canada Fought Bad Copyright Law: Showing Why Copyright Law Matters
"You may recall, just about a year ago, there was suddenly a bunch of news over the possibility of Canada introducing its own version of the US's Digital Millennium Copyright Act (DMCA). To the surprise of both the entertainment industry (who helped craft the law) and the politicians who were pushing it, the opposition to this law was incredibly successful in getting its message out. Starting with calls on various blogs and Facebook groups, kicked off by law professor Michael Geist, the issue became a big one throughout the media. The politicians who promised the entertainment industry that they would pass this law tried to delay the introduction, assuming that the opposition, while loud, was thin and would fade away. They were wrong. The issue continued to get attention, and when the law was finally introduced, the opposition, across the board, was widespread and strong. It wasn't just a fringe issue among "internet activists." It was something that people from all over the economy saw as a fundamental issue worth fighting for." [TechDirt]

China Says: If You Must Infringe On Copyrights, Use Baidu
"Many people have noted over the years that with all of the effort that China has put into its Great Firewall, the country hasn't done much of anything to crack down on unauthorized file sharing. In fact, at times, it's almost seemed to encourage it. So some people were a bit surprised to find out that China's censors tried blocking traffic to various well known BitTorrent sites, such as Mininova, isoHunt and The Pirate Bay. However, what may be most interesting is that rather than blocking them outright, it appears that the system just redirects all that traffic to popular Chinese search engine Baidu.


This would be the same Baidu that first became really popular when China shifted all Google traffic to its site, and also the site that stayed popular because it made it easy to download unauthorized music. This would be the same Baidu that was also recently exposed to be fairly complicit in the music downloads it offers, potentially hosting the content itself through a revolving series of ever-changing domains. So, this hardly seems like an attempt by the Chinese government to crack down on unauthorized file sharing -- but an attempt to drive it all to a local company. It looks like the redirects only lasted for a few days, and are no longer in place -- but if the past is any indication, those redirects may come back at any time." [TechDirt]

11/17/08

Music News Bulletin - 17/11/08

Behind the music: The power of synchs Nov 13 2008
"Music Week recently reported that Staten Island artist Ingrid Michaelson has sold more than 250,000 copies of her self-released debut album and nearly 1m copies of her first single, highlighting a perfect example of the opportunities that have opened up for independent artists through synchs.

A synch (meaning a synchronisation licence) is when music is used in TV shows, movies, advertising or computer games. After Michaelson set up her own label - Cabin 24 Records - to release her music, she was discovered on MySpace by film and TV licensing company Secret Road. Through them, four of her songs were featured in Grey's Anatomy, and Old Navy (the Gap clothing store offshoot) used her debut single in their American advertising campaign." [Guardian]

Movie tunes move away from marketing: Many soundtracks are better suited to an afterlife Nov. 17, 2008
"Tracking soundtracks and their potential in the iTunes age has started to feel like spinning the big wheel on "The Price Is Right." One season it lands on major studio labels, the next year the indies hit the jackpot, and the next the whole thing is dead -- and then there's always the fluid issue about cost.

This year the soundtrack leader is Rhino's "Juno" album, which has moved 1 million copies since its release Jan. 15. That record, dominated by songs from Kimya Dawson, who wrote one track specifically for the film, stands as an anomaly in a year that has been good only for musicals, Disney products, TV-based pics and holdovers such as "August Rush," which was still in the top 200 a year after its release. "Nick and Norah's Infinite Playlist," which has sold fewer than 50,000 copies, demonstrates that not all indie compilations are equal." [Variety]

Websites showcase new performers: Portals aim to do heavy lifting for music execs Nov. 17, 2008
"It can be a time-consuming task seeking out the next hot new music act to plug into a project, with music supervisors having to spend hours inside cramped clubs or listening their way through stacks of CDs sent by band reps. But an increasing number of websites are doing some of that heavy lifting, showcasing up-and-coming performers looking to land a big break.

Among them, Yahoo Music's Who's Next regularly spotlights new acts that have crossed over and struck a chord with mainstream auds. The series, which reaches Yahoo Music's more than 20 million visitors each month, kicked off in 2004 with a performance by My Chemical Romance. Soon after, the young goth-rock band landed several major tours, saw their album go platinum and earned a Grammy nom." [Variety]

Fall Film & TV Music: Penny serenade Nov 12, 2008
"Resourceful composers are adapting to shrinking music budgets, but the bleak economic reality is affecting everyone from engineers to musicians. When Jan Kaczmarek was asked to score last year's indie release "Evening," he knew exactly what he wanted.

"It was a really complex story," he explains, "but it also had something in it which called for a very lush sound. That smoothness called for a large ensemble of strings with mute -- with the musicians on violins, cello and viola putting a small piece of rubber next to the bridge, which makes the sound less bright. The musical term in Italian is 'con sordino.' I needed this extremely smooth, extremely precise sound."

But to achieve that, he also needed to work with musicians who could pull it off -- and that meant recording in either London or Los Angeles, the two capitals of film music. The problem was, the movie could not afford it." [HollywoodReporter]

Music News Bulletin - 17/11/08

Glastonbury 2008 fails to make a profit November 3 2008
"Organiser Michael Eavis cites rising costs as the reason behind the festival's failure to make money for the first time in nearly four decades. For the first time since its inception almost four decades ago, the Glastonbury festival did not make any money this year.

The 2008 festival was known to be economically fragile, having failed to sell out in advance. The boom of UK festivals and a downturn in the economy may both have played a part, though some critics – including singers in over-the-hill rock bands – blamed a lineup that included Jay-Z." [Guardian]

Music still popular, says survey November 14 2008
"Bauer Media, the people behind magazines such as Q and Mojo, have released the results of a five-year study. And guess what? People still like listening to music. The music industry can breathe a sigh of relief for now at least: people still rather like it, a new study has found.

Bauer Media, the people behind magazines such as Q and Mojo, have released the results of a five-year study named Project Phoenix, delving into the habits of music consumers." [Guardian]

GRAMMY Northwest MusicTech Summit Keynote Nov 17
“It’s truly an honor to be asked by The Recording Academy to speak to you all today. Two years ago when I joined The Academy I was humbled. I’ve worked on the periphery of the music industry for fifteen years, building little music Web pages before there were even Web browsers for Windows or Mac, before Adam Curry’s MTV.com even, when there were just a couple of us who thought the WWW was a better Gopher. So to have finally merged lanes with the recording industry career-wise was a meaningful moment for me, regardless of the backdrop.

The backdrop, of course, is one we know well, a story we’ve heard ad nauseum at this point. Physical sales are decreasing (~20% Y/Y). The “two hit songs for $17 at Best Buy” business is over. Digital sales are increasing (~40% Y/Y) but it’s not making up the difference. Not only is digital not making up for physical sales, as the tracks are unbundled and the model is a singles-driven iTunes business, the actual value of a unit of music continues to plummet.” [TopSpinMedia]

EU Public Affairs Monitor - 17/11/08

France votes for 'three strikes' filesharing law 04/11/08
"The French senate has voted overwhelmingly in favour of Nicolas Sarkozy's anti-piracy legislation that offers illegal filesharers two warnings before cutting off their internet access

This week, as ever, it's one step forward and two steps back for the recording industry's anti-piracy legislation. Even as France seems poised to pass a new "three strikes" law against filesharers, lobbyists in Denmark have given up on the chance of passing similar legislation." [Guardian]

Dance Music Classics Get Aboard The Pirate Ship 12/11/08
"Recently, the techno-oriented site Resident Advisor ran a detailed, well-reported piece by UK writer Richard Brophy on the state of the bootleg 12-inch in dance music. To be clear, since "bootleg" has a few different musical connotations, Brophy isn't talking about mash-up pop Frankensteins or unauthorized recordings of live shows, but about pirated versions of actual releases—small-edition replicas of classic, long-out-of-print house and techno 12-inches. These are, he suggests, far more legion in the dance world than we might think, an open secret that few retailers try to do anything about even if they know what they're selling is technically illegal." [Idolator]

Prof Enters RIAA Lawsuit Controversy Nov 17, 2008
"A Harvard Law School professor representing a Boston University student accused of copyright infringement is attacking the constitutionality of lawsuits launched by the RIAA against individuals.

Professor Charles Nesson claims the Digital Theft Deterrence and Copyright Damages Improvement Act of 1999 is unconstitutional because it lets a private group, in this case the Recording Industry Association of America, carry out civil enforcement of a criminal law." [PollStar]

Pay-For Content Set To Grow Faster Than Free, With Music Leading The Way, Forecast Says 11 Nov 2008
"Maybe there are legs after all to that hypothesis on the return of pay-for content - the one Economist publisher Paul Rossi suggested at our Future Of Business Media conference last month. Just 12 percent of European web users paid for online content last year, but that’s due to rise to 19 percent by 2013, a new Jupiterresearch report says: “While free content will continue to dominate, as overall online audiences for all content categories continue to grow, so the number of European users willing to pay for content online will grow at an even greater rate.”" [PaidContent]