Tuesday, 7 July 2009

Musical pirates: can the UK turn down the volume?

Writing for Times Online yesterday ("Government changes tune on music piracy promise"), Media Editor Dan Sabbagh reports that the UK's Culture Secretary Ben Bradshaw has apparently stepped back from a promise, made in July 2008, to reduce the volume of internet music piracy by 70 per cent over the next two years. This was part of a three-way agreement between the Government, internet service providers and media companies. However, according to the contents of a letter which the Minister wrote to Liberal Democrat culture spokesman Don Foster on 22 June, a copy of which has been passed to The Times, he has qualified that commitment, stating that the two- to three-year timescale was “based on the premise” that measures to combat piracy would be “taken from July 2008 onwards”. Those measures were the sending of warning to internet subscribers with a connection through which piracy had been taking place. While leading internet service providers agreed to participate, the results of this modest initiative have yet to be published.

Don Foster is quoted in the article as saying:
"This is another example of the Labour Government’s total inability to meet its own targets. Having wasted years, they now want to move the goalposts and hope we don’t notice".
The Digital Britain White Paper reiterated, at p. 112, the 70 per cent target, without mentioning when it might be achieved. A proposed Digital Economy Bill is expected to require internet service providers to write warning letters to households where piracy is found to have taken place, with ISPs having to hand over personal details of serious repeat infringers so that they can be taken to court. However, this Bill is unlikely to come into law before 2010, some 18 months after the original commitment to reduce piracy by 70 per cent was given.

Monday, 6 July 2009

E-books – state of the nation

The 1709 Blog is is pleased to offer readers the thoughts of Sam Ross, who has been considering the current state of play regarding e-books. Says Sam:
"Although technology has historically boosted the paper-book industry with online ordering, used books being 'eBayed', and print-on demand technology, might bookshelves soon become firewood and books museum artefacts due to the rise of the e-book?
By the time copyright law was enacted in 1709, the printing press had been around for nearly 300 years. 300 years later in 2009, commentators are suggesting that the "iPod moment" for e-books is almost upon us. Amazon's Kindle DX (so far only released in the US) features a 9.7 inch screen, 3G Wi-Fi, a 16-shade display, a 3,500 book capacity, and -- crucially -- it has won praise from Oprah Winfrey. The Kindle DX is supposedly paving the way for a billion dollar e-book industry in the next few years (still not anything on Oprah's net worth, but not bad…).
In a generation that is addicted to free content, out-of-copyright "free-e-book" files (e.g. Dickens' Great Expectations) offered by Project Gutenberg have proved popular in past years, and there is now even an iPhone application, Stanza, for reading these files. However, in-copyright e-books have lagged way behind (just 30,000 Sony Reader devices had been sold in the UK as of January 2009 with only 75,000 e-books downloaded). Speculation is, however, that with exciting new devices like the Kindle DX in place, which offer better screen resolution, portability and design/feel, it is only a question of time until the e-book phenomenon grips the masses. The surprising catalyst could be the new hardware proving an unlikely saviour for the ailing newspaper industry (a subscription-based deal has already been struck in the US between Kindle and the Wall Street Journal, and Rupert Murdoch is keen for NewsCorp to get involved). But, if the hardware is equivalent to the iPod, do we have the mp3?
An e-book file's current advantage is simple: a great number of works can be stored on just one device, but is this "easy to carry" benefit enough to spawn a revolution in a similar way to the mp3 file? Probably not, because (i) a typical consumer will only carry around two or three books (compared to two or three thousand songs); and (ii) people have a sentimental attachment to books that they certainly did not have towards those pesky CDs. So, how will readers be won over?

Random House has tried to respond to this issue by tempting iPhone users with e-books featuring DVD-like extras such as quizzes, animation and videos. However, arguably what the hardware is really waiting for is a file type which intrinsically belongs on the device and appeals to young readers; not simply the same format supplemented by extras.

The e-book file of the future will, this blogger prophesies, be tailored for the "Twitter" generation and it will represent a new movement in fiction, featuring interactive plotlines; hyperlinks to other content; and user-generated submissions; all features that simply cannot exist on the printed page. Could the e-book file raise tricky copyright issues, such as both readers and authors both grappling for authorship, and multiple individual works subsisting in each evolving and expanding e-book? We will just have to wait and see ..."
Thanks, Sam, for your research and your observations. I suspect we won't have to wait very long to see what happens. The point about sentimental attachment is an interesting one: many children of the 1960s have a remarkable attachment to the vinyl that brought them the Beatles, Stones etc, and loving treasure their old LPs even they have no machinery to play them on, having long ago opted for cassette tapes, followed by CDs and now downloads. By this token, book-lovers will hoard their cherished paper products while (re)reading the text by e-book.

Saturday, 4 July 2009

ASCAP faces US Court Challenge on Ringtone Licensing

Watch this Space: ASCAP is in court with AT&T and Verizon, arguing over whether a ringtone of a copyright musical work is a public performance and thus should attract a royalty. Apparently some phone providers have been paying ASCAP (up to 2% of revenue) and now want to stop. Advocacy group the Electronic Frontier Foundation filed an amicus brief as has CTIA, the Wireless Association.

Emboldened by many governments' supine approach to tackling the ISPs' liability for content perhaps? Man, these copyright pachyderms are breeding!

Lack of Interest in Downturn

The UK Mechanical Copyright Protection Society (MCPS) held its AGM in London recently. PRS (under which PRS for Music brand the MCPS sits) CEO Steve Porter, according to Billboard, reported a projected drop in interest on deposit monies that will, apparently, require cost cutting in response. Interest earned on monies deposited in 2008 was £4 million, but owing to the British interest rate cut from 5% to 0.5%, the figure is projected to be just £800,000 for 2010. MCPS, as an agency, charges commission on income streams rather than an annual administration fee (as prevails at PRS). So, has interest historically been bolstering operating costs and supplementing the value of commission levels?

Most of MCPS' revenue is paid to its publisher members to share with their contracted composers and songwriters - usually 3 months plus 90 days after receipt by the publisher. As the interest earned by the music publisher is retained and not shared with the composers and songwriters whom the publishers serve, one can assume this lack of interest may affect the funding of the operating costs in themusic publishing community as well.

We are told that MCPS aims to break even "over the course of a year" - we should jolly well hope so. These non-profit organisations that collect and distribute royalty revenue are essential for the composing community. But, one wonders, if there is to be a knock-on effect from the interest rate dive that impacts the commercial success of music publishers, how long before major publishers feel the pinch.

The gorgeous Nigel Elderton from PeerMusic was returned as Chairman of MCPS for another term and, lambasted the elephant in the room of digital delivery, the ISP community, for refusing to accommodate mechanisms for payment to rights owners of content the ISPs disseminate. You tell 'em Nigel!!

Friday, 3 July 2009

Internet rights go on trial

Laws against illegal file-sharing are taking shape simultaneously on global, European and national levels. Fundamental rights – in particular the right to freedom of expression – are assuming a more prominent role in the debates in France, Europe…and maybe, one day, Digital Britain.


The European Convention on Human Rights

On 29 May the Council of Europe (not to be confused with the European Commission) adopted a declaration and resolution concerning human rights on the internet. A glittering cast of ministers were there – though Britain could only rustle up a ‘project manager’. The Council emphasized the European Convention on Human Rights, which it authored more than half a century ago, and the case law of the European Court of Human Rights. It stressed the relevance of human rights to the internet, the need to explore how rights are affected by its new modes of communication and the importance of co-operation between nations because ‘the very nature of the information society and, to an even greater extent, of the Internet, has significant cross-border implications. Article 10 of the European Convention on Human Rights [freedom of expression] is especially relevant in this respect given that the rights and freedoms protected therein are guaranteed “regardless of frontiers”.’


Droits Francais

On 10 June France’s Constitutional Council (Conseil constitutionnel) struck through parts of the HADOPI law against illegal file-sharing on the grounds of a conflict with fundamental human rights – a pre-Convention expression of them in the Déclaration des droits de l'Homme et du citoyen of 1789. Article 9 (presumption of innocence) was the basis for objecting to the idea that it should be up to those accused of illegal file-sharing to prove the infringement was the fraud of a third-party. Article 11 declares that the ‘free communication of ideas and opinions is one of the most precious rights of man’. It was the justification for saying that internet access should not be cut off except by a court – attacks on the right to communicate must be ‘necessary, appropriate and proportionate’.


EU Charter rights

Like the HADOPI law, the EU’s current reforms of telecoms legislation has been stumbling on the question of whether it is necessary that penalties for file-sharers should only be imposed by a court. The European Commission is against this requirement but the European Parliament voted for it by a landslide on 6 May. On 11 June the Commission determined to keep challenging the Parliament over this and proposed a new round of negotiations.

The European Parliament can be expected to argue that the French Conseil’s decision bolsters their position. The Commission, au contraire, wants to use the Conseil’s decision as a point in their favour, saying that it indicates that the protection of fundamental rights belongs at national level. This contrasts sharply with the desire of the Council of Europe to see greater co-operation between European countries on this issue.

Amendment 138 to the Framework Directive that the Commission is fighting states:

No restriction may be imposed on the fundamental rights and freedoms of end-users, without a prior ruling by the judicial authorities, notably in accordance with Article 11 of the Charter of Fundamental Rights of the European Union on freedom of expression and information, save when public security is threatened in which case the ruling may be subsequent
Article 11 of the Charter of Fundamental Rights being:

Everyone has the right to freedom of expression. This right shall include freedom to hold opinions and to receive and impart information and ideas without interference by public authority and regardless of frontiers.
So, only a court would be able to restrict the right to receive or impart information without interference. Amendment 138, it can be said, would give freedom of expression exceptional protection in this context because the guarantee of a prior judicial ruling is not subject to proportionality. The purpose of the Charter of Fundamental Rights is to bring the European Convention on Human Rights into EU law. Whereas the European Court of Human Rights balances rights and considers whether restrictions on rights are necessary and proportionate, Amendment 138 is unequivocal: there will be no restriction on freedom of expression on the internet without a prior judicial ruling, which leaves no room for proportionality. Or rather – it leaves the proportionate decision to a court.


Digital Britain
The phrases ‘human right’ or ‘freedom of expression’ don’t appear in the Digital Britain report. Hardly surprising for the country where sexual intercourse began in 1963 and freedom of expression in 1998. On 16 June, the same day that Digital Britain was published, the government also sneaked out a new consultation on legislation to address illicit P2P file-sharing. Human rights don’t feature here either though ‘consumer protection’ does. HADOPI is outlined: the Conseil ‘argued’ that current provisions did not comply with ‘French constitutional principles’. Gordon Brown wrote in The Times that ‘a fast internet connection is now seen by most of the public as an essential service, as indispensable as electricity, gas and water’. What is ‘seen by most of the public as an essential service’ isn’t quite a human right.

The Digital Britain proposals provide for an initial year trial period of sending out notifications to infringers and identifying serious offenders so that they can be sued by rights-holders. If that fails to reduce illegal file-sharing by 70%, then Ofcom will be able to require ISPs to apply an armoury of ‘technical measures’ such as blocking (site, IP, URL), protocol blocking, port blocking, bandwidth capping (capping the speed of a subscriber’s Internet connection and/or capping the volume of data traffic which a subscriber can access); bandwidth shaping (limiting the speed of a subscriber’s access to selected protocols/services and/or capping the volume of data to selected protocols/services); content identification and filtering – or a combination of all of the above. Which means, despite protestations to the contrary, a ‘three-strikes’ policy remains firmly on the UK legislative agenda.

Digital Britain and the file-sharing consultation propose that the ‘technical measures’ could be imposed by ISPs with no prior ruling by a judicial authority:

It also seems reasonable and appropriate that, should further obligations be imposed, consumers have access to a clear and transparent (and independent) appeals mechanism since such measures may be taken against them without the benefit of a judicial hearing. In those circumstances it may be appropriate for an enhanced consumer appeal process to be introduced along the lines of an ombudsman.
ISPs’ powers are circumscribed: Ofcom would have to be satisfied that the imposition of technical measures by ISPs is objectively justified and proportionate and either House of Parliament could anul the power to impose technical measures – ‘this should ensure that the power cannot be used frivolously’. But these fall short of prior judicial rulings in individual cases.

While the French have decided that a Haute Autorité isn’t good enough to cut off internet connections, the British are considering leaving the job to ISPs. ISPs, it is proposed, would set up a joint call centre – though there would have to be an independent appeals mechanism. On the one hand, we’d be saved judicial costs (what about a P2P Division?) but, on the other hand, ISPs – in my personal experience – make abundant administrative and technical errors and are hell to get through to (half a day being bounced round Indian call centres to no avail). How would outsourced human rights sound? ‘We are currently experiencing high call volumes. If you’re having problems with your broadband, first try rebooting your computer. If that fails, examine your conscience. If your conscience is clear, please hold the line while we try to connect you with an advisor, who will be able to help you with all technical and human rights problems.’


Digital Britain in Digital Europe

If Amendment 138 of the Telecoms Package is adopted, then there would be a potential conflict with EU law. On 17 June Lord Carter made a statement to the House of Lords reporting the 11 June EC Telecommunications Council meeting. EU Telecoms Commissioner Viviane Reding had, he said, expressed concern that refusing to adopt Amendment 138 would delay the Telecoms Package as a whole but the UK had objected, as Lord Carter explained: ‘The vast majority of member states said that they could not accept the EP amendment, some noting that it potentially interfered with national competencies. The UK noted that the amendment was unacceptable both in legal and policy terms, noting how it could constrain future decisions of the Government.’

The UK file-sharing consultation states that ISPs would follow a code and Ofcom would not approve any part of the code that imposes an obligation contravening UK or EU law. The consultation, however, is only consulting on a code for a system of notification and collecting infringement information, not the application of ‘technical measures’. ‘Technical measures’ are only pencilled in for implementation in 2012, so the UK government may be deliberately leaving this aspect of the legislation open until the Telecoms Package is put to bed.

However, even if Amendment 138 isn’t adopted, then trial by ISP may still fall foul of the European Court of Human Rights. Jan Kleijssen, director of standard setting at the Council of Europe, said (before the HADOPI law was gutted) that ‘experts at the Council expected in fact that the so-called French HADOPI law, which cuts internet access for three-time suspected IP rights infringers, eventually will arrive at the European Court of Human Rights’ (IpWatch). Furthermore, the Charter and Convention denounce ‘interference’ with free expression – why should that only apply to cutting off internet access? ‘Interference’ is a fair description of all the ‘technical measures’.

Is Digital Britain heading for three strikes? Strike 1: the decision of the French Conseil. Strike 2: Amendment 138. Strike 3: incompatibility with the Convention on Human Rights. You can cut the courts out of the laws but you can’t cut the laws out of the courts.

A big week for copyrights and piracy

ARTICLE LINK A big week for copyrights and piracy

Whilst the sale of The Pirate Bay website to a Swedish gaming software business might have grabbed the headlines alongside the news of the Jammie Thomas appeal and the Usenet decision, two other developments in U.S. courts are seemingly more important to the average music fan because of the potential they have for disrupting digital services. The first is the latest lawsuit filed by MCS Music America of Nashville and a dozen or so other music publishers against the operators of two current and one former subscription-music services. The suit seeks a hefty financial penalty from the companies for including the publishers' songs in their services, even though federal law compels the publishers to grant the necessary licenses. The second is a move by the American Society of Composers, Authors and Publishers to have a federal court declare that cellphone ringtones aren't downloads but rather public performances for which they are entitled royalties. In other words, ASCAP argues that playing a 15-second snippet of a song when a call comes in is the legal equivalent of blasting the song over the speakers at a hockey rink. In fact, ASCAP argues, it's an infringement even with the volume turned off. The two cases illustrate the minefield that copyright law presents to companies that dare to venture into the digital music business.
The two cases are described in detail in an article in the LA Times
which can be found at http://latimesblogs.latimes.com/technology/2009/07/a-big-week-for-copyrights-and-piracy.html

"Done it?"

Hit-making producer Timbaland and Canadian/Portuguese pop star Nelly Furtado are facing a copyright infringement claim from a Finnish record label, musicradar.com reports.


Their hit "Do It", which appears on Furtado's multi-platinum album Loose, is alleged to contain elements of the song "Acidjazzed Evening", originally composed in 2000 as a computer recording by Janne Suni, a Finnish demoscener [what's that?]. The song was subsequently re-recorded by Norwegian musician Glenn Rune Gallefoss and Kernel Records acquired rights in the track in 2007. Kernel filed a claim against Timbaland and his record label in the Miami-Dade Division of the US District Court Southern District of Florida on 11 June.

The claim cites elements of a 2007 radio interview, in which Timbaland reportedly responded to the allegations saying:


That mess is so ridiculous ... It’s from a video game, idiot. Sample and stole is two different things. Stole is like I walked in your house, watched you make it, stole your protools, went to my house and told Nelly, ‘Hey, I got a great song for you.’ Sample is like you heard it somewhere, and you just sampled. Maybe you didn’t know who it was by because it don’t have the credits listed [sic]”


Timbaland reportedly went on to explain that he did appreciate the possibility that someone might bring a copyright claim, but that it was unclear whether or not the sound he utilised was public domain.


So did they "Do It"? Why not judge for yourself?

Recent court decisions are good news for US content owners

Jammie Thomas-Rasset, the single mother of four convicted of copyright infringement and currently liable for damages of $1.92 million, intends to appeal her case with her lawyer telling CNET News that
"She's not interested in settling …. she wants to take the issue up on appeal on the constitutionality of the damages. That's one of the main arguments that the damages are disproportionate to any actual harm".
When the decision came out, Fred von Lohmann, a lawyer with the Electronic Frontiers Foundation said “The disproportionate size of the verdict raises constitutional issues", adding “was the jury punishing her for what she did, or punishing her for the music sharing habits of tens of millions of American Internet users?”

Thomas-Rasset had previously indicated that she had tried to settle the case and then made it clear post-conviction that she could not pay the fine saying
“Now the record industry has a $2 million award against me. The only thing I can say is good luck trying to get it, because you can’t get blood out of a turnip”.
The Recording Industry Association of America (RIAA) said that it had contacted Thomas-Rasset’s lawyers Joe Sibley and law partner Kiwi Camara last week to ask whether Thomas-Rasset wanted to discuss a settlement. An RIAA representative said that its lawyers were told by Sibley that Thomas-Rasset wasn't interested in discussing any deal that required her to admit guilt or pay any money. Said an RIAA spokesman:
"The defendant can, of course, exercise her legal rights, but what's increasingly clear, now more than ever, is that she is the one responsible for needlessly prolonging this case and refusing to accept any responsibility for the illegal activity that two juries decisively found her liable for".
Sibley told CNET that following Thomas-Rasset's first trial, the trade group offered to settle for $25,000. The Thomas-Rasset case has set an important precedent in the US by establishing that simply offering up music tracks for sharing is sufficient to establish infringement; in a separate US case a New York judge has ruled against internet aggregator Usenet.com, saying the online service is guilty of direct, contributory and vicarious copyright infringement, and of inducing others to infringe.

The decision against the subscription based aggregator, which provided links to both licensed and unlicensed music and film content, provides further clear guidance in the USA that websites which provide links to infringing content, without actually hosting any of the content themselves, can still be liable for infringement claims. In a decision welcomed by the RIAA, The judge specifically denied the right of Usenet.com directors to use the so called 'safe harbour' provisions in US copyright law to protect the service against illegal acts committed by their customers. The judge also criticised the company behind the service, its directors and its owner Gerald Reynolds for deliberately hindering the legal process by wiping hard drives and sending key witnesses on paid holidays to Europe to avoid having to testify.

http://news.cnet.com/8301-1023_3-10277701-93.html