Hobbling Grokster -- and Innovation, Too
When Elliott D. Frutkin, chief executive of Time Trax Technologies, set out to raise $3 million in venture capital to develop his company's fledgling audio-recording system, would-be investors typically had two reactions. "The first was 'Wow, this is really cool,'" Frutkin recalls. The second: "What about Grokster?" Although the U.S. Supreme Court won't hear arguments in MGM Studios (MGM ) v. Grokster until Mar. 29, the case is already having a chilling effect on technological innovation. Business Week -- March 24, 2005 COMMENTARY by Lorraine Woellert
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File-Sharing Case Worries Indie Artists
LOS ANGELES - Recording industry executive Andy Gershon sees opportunity in the online file-sharing networks that most of his rivals decry as havens for music pirates. As president of V2 Records, home to such established acts as The White Stripes and Moby, Gershon mines such Internet distribution channels for new fans and revenues.… A number of mostly independent recording artists and labels have experimented with and embraced the freewheeling digital distribution that the Internet affords. And many worry that a victory by major recording companies in a landmark file-sharing case now before the U.S. Supreme Court could short-circuit the very technologies that they believe are making a more level playing field of the music business. Associated Press - March 25, 2005 by Alex Veiga, Business Writer
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Bertelsmann Launches New P2P Download Platform
FRANKFURT (Reuters) - German media giant Bertelsmann, a former partner of file-sharing network Napster (news - web sites), is launching a new Internet platform for downloading and sharing movies or games over the Internet, it said Tuesday. Bertelsmann's services and technology arm arvato said it would sell the service, dubbed GNAB, to mobile phone operators, Internet providers or TV stations, which could then offer their clients legal downloads of large files under their own brand. In addition, it could also allow them to share the files they have received over the network, effectively outsourcing the storage of the files and their download to the users of the network.… Yahoo News/Reuters -- March 22, 2005
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Study: Musicians Dig the Net
"Musicians believe the internet is an essential tool to help create and market their work, but at the same time more than half of artists say file sharing of unauthorized copies of music should be illegal, according to a new report.
The report, called 'Artists, Musicians and the Internet,' found that only 28 percent of all artists surveyed consider file sharing to be a major threat to creative industries -- contradicting the official stance of the lobbying arm of the record companies. About 43 percent agree that 'file-sharing services aren't really bad for artists, since they help to promote and distribute an artist's work to a broad audience.'" -- Katie Dean, Wired News, December 6, 2004
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Don't Beat Them, Join Them
"CAMBRIDGE, Mass. With 40 million to 60 million Americans having swapped music files over the Internet, taking a few hundred of them to court as the Recording Industry Association of American did this week is, as the legal scholar Randal C. Picker has remarked, "a teaspoon solution to an ocean problem." For a few months after the lawsuits began last year, file sharing diminished, but it has now rebounded. If lawsuits aren't the answer to this problem, what is?
History may give us some guidance. After all, file sharing isn't the first new technology to have destabilized the entertainment industry. The way in which the industry responded to the introduction of three earlier inventions radio, the VCR and Webcasting offers important clues for music executives today." -- William Fisher, The New York Times, June 25, 2004
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Survey shows most musicians oppose RIAA's lawsuits
"Though the Recording Industry Association of America (RIAA) has been tackling copyright infringement by slapping lawsuits on online peer-to-peer file sharers, recent research shows musicians are not convinced it is in their best interest.
New research from the Pew Internet Project claims that most musicians do not believe the RIAA's lawsuits will benefit artists." -- Taj Campbell, The Daily, May 11, 2004
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Share the Music
"On Tuesday, the Recording Industry Association of America filed another round of lawsuits against people who allegedly downloaded and shared copyrighted music. In doing so, the association finally topped the 3,000-served mark.
The association argues that file sharing is directly responsible for the widely reported slump in CD sales from 2000 to 2003. This, however, ignores the fact that the economy was in a post-Sept. 11 recession and that many other industries suffered even greater declines in their sales at the time. Still, it is reasonable to assume that downloading was a cause of some drop in CD sales." -- Kembrew McLeod, June 25, 2004
File-Sharing No Threat to Music Sales
"Internet music piracy has no negative effect on legitimate music sales, according to a study released today by two university researchers that contradicts the music industry's assertion that the illegal downloading of music online is taking a big bite out of its bottom line. Songs that were heavily downloaded showed no measurable drop in sales, the researchers found after tracking sales of 680 albums over the course of 17 weeks in the second half of 2002. Matching that data with activity on the OpenNap file-sharing network, they concluded that file sharing actually increases CD sales for hot albums that sell more than 600,000 copies. For every 150 downloads of a song from those albums, sales increase by a copy, the researchers found." -- David McGuire, washingtonpost.com, March 29, 2004
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