Interesting Articles from News.com


  • A nice article from News.com on P2P users shifting away from KaZaA, primarily to eDonkey.  It covers a couple interesting issues, including how this might make it easier to acquire movies and software.  It also might lead to greater privacy protections and perhaps spoofing countermeasures.  From what I know (and I haven’t investigated this thoroughly enough), Sharman has not added any sort of proxying and encryption into KaZaA, nor a peer-rating system that could help defeat spoofing.  Systems like Morpheus have been much more willing to add proxy support.  I don’t know the extent to which eDonkey or other systems have added these features or are willing to.  I also don’t know the extent to which users are seeking out systems with these features; regardless, if they migrate to the systems simply because they are more efficient for sharing files, they might also adopt privacy protecting features if they happen to be available.
  • More on taking advantage of the mobile market and turning cell phones into digital music players.  As if the silliness about the ring tone market weren’t enough, now this: 

    “Michael Nash, a senior vice president at Warner Music, says his company is already in discussions with its constituent labels about having studio producers create mobile mixes–such as the abbreviated 90-second or two-minute versions of songs used by T-Mobile-type download services–at the same time as the full versions of songs are created. This could help create a new market for music, in which people listen to PC-based and phone-based songs differently, he said.


    “From our perspective, it is a much more desirable outcome to have the mobile channel and online channel be differentiated,” Nash said.


    Yes, from your perspective, indeed.  It ain’t gonna happen.  You will, however, lead people to circumvent or route around your DRM (burning to CD and ripping, or recording from the soundcard), and to download from P2P rather than buy at all.

Berkman Center Releases New iTunes Europe Analysis

Building off of its (recently updated) iTunes Case Study white paper and taking into account iTunes’ recent arrival in Europe, the Berkman Center’s Digital Media Project has produced iTunes Europe: A Preliminary Analysis.



“In its first week of operation in Britain, France, and Germany, iTunes Europe sold an impressive 800,000 songs –- outpacing its nearest competitor by a margin of 16:1.  While this initial success attracted attention from the recording industry, lawmakers, and business executives, a number of questions remain about the future of iTunes in Europe and its ability to adapt a business model based on U.S. law to the laws and cultural norms of different countries in Europe.


The following report, iTunes Europe: A Preliminary Analysis (June 2004), by students of the Berkman Center’s Digitial Media Project, considers the legal foundation of iTunes Europe and the interplay of the service with European law.  The report examines the implications of the expansion of iTunes on the future of digital media, technology, business strategies, and international law.”

SavetheiPod.com

Brought to you by some usual suspects, SavetheiPod.com picks up on the EFF’s idea and urges people to oppose the INDUCE Act.  Check it out. (via pho)

RIAA Petitions Supremes in Verizon Case

This seemed to go under the radar.  After failing at the appeals level and on their petition for rehearing en banc, the RIAA filed a petition for cert to the Supreme court in RIAA v. Verizon on May 24.   Many people doubted that the RIAA would bother, and, with the Doe lawsuits proceeding, this might not have much practical difference to the RIAA’s lawsuit campaign.  But it’s still very much worth keeping an eye on.

Things That Bother Me, Vol. 2

And much more of the Hatch floor statement grates on my nerves.  Rather than starting from the broad problems of this bill, I want to examine an interesting move in the statement’s argument:



“A rule that punishes only control also produces absurd results. Secondary liability should focus on intent to use indirect means to achieve illegal ends. A rule that punishes only control degenerates into inane debate about which indirect means was used. Thus Napster and Grokster are regulated differently – though they function similarly from the perspective of the user, the distributor, or the copyright holder.”


“A rule that punishes only control also acts as a ‘tech-mandate’ law: It mandates the use of technologies that avoid ‘control’ – regardless of whether they are suited for a particular task. Napster was punished for processing search requests efficiently on a centralized search index that it controlled. Grokster escaped by processing search requests less efficiently on a decentralized search index that it did not control. Rewarding inefficiency makes little sense.”


The point about decentralized P2P being definitively less efficient is overstated.  Beyond efficiency, there are also advantages to not having a single point of control (e.g., failure at a single point does not disrupt the entire network).


But I think the point makes some sense: it is silly that we let Morpheus get a free ride while Napster had to be shut down.  Unlike Hatch, however, I certainly don’t think that this inconsistency demands a rule such that that Morpheus is also liable. Indeed, I think we can still leave Napster liable while avoiding the “tech mandate”/tech ban problem.  To create a more consistent and beneficial doctrine, we should tweak – but not eviscerate – the Napster decision.


Interpreted broadly, Sony stands for the principle that we should let new technology develop completely unconstrained from secondary liability.  As I have discussed elsewhere, I think Sony rule should actually be interpreted a little narrower.  Sony stands for not using secondary liability to force tool-makers to modify how their tools operate, but secondary liabilty could apply to the tool-maker’s conduct in relation to the tool-user.


Think of this in terms of Napster.  The Napster decision seemed to follow this reading of Sony, noting that Napster’s conduct had to be distinguished from its architecture.  Furthermore, the court said that Napster simply had a responsibility to police cabined within the system’s architecture.  However, during the remedy phase, the court forced Napster to do something that it could not do within the architecture of its system -eliminate all infringement and implement new filtering tools.  Instead, the court could have simply asked Napster to block certain users (a power it retained through its login server) and remove particular files (not all instances of a song, which its file index did not have any ability to identify) when notified by a copyright holder.  They could do all that without changing a single line of code in the system.


But isn’t this what the Hatch aide was calling “inane”?  You might find this to be simply trying to find a loophole to protect piracy.  Those who support the negligence rule would suggest that, if one is willing to put that much burden on Napster, then why not also force them to make a small adjustment to their code that might not even affect non-infringing uses – why not go the extra step and weigh the costs and benefits?


But what change would not affect non-infringing uses, definitively?  We don’t know, and no weighing can properly take into account these undefined and thus indeterminately impacted uses.  Sony understood this point – that by constraining the way a tool functioned, we risked impairing legitimate uses.  The VCR ushered in “time-shifting,” a use that most people probably did not conceive of prior; it, and other technologies, could also usher in other untold uses, which would have been impacted by any change to the tools themselves.  Telling Napster to respond to notices of infringement is consistent with this rule as well as with a rule that forces Morpheus to do nothing.  One could sever Napster’s infringing uses from the non-infringing uses, known or not; by addressing their conduct only, new uses of the technology could continue to evolve.  In so doing, we could get rid of the de facto “tech mandate” that effectively bans centralized P2P and thus no longer “reward inefficiency.”


Certainly, even this burden on centralized P2P operators would have some impact on technology innovation, as would the benefit of infringing uses reward certain technologies.  However, I think it places a reasonable burden while largely retaining the clarity, certainty, intent, and benefits of the Sony rule.  Also, one can imagine similar problems with this rule as with DMCA 512 notifications.  All the more reason to revisit exactly how we deal with counter-notification, but that I’ll have to leave for another day.


One could also argue that, though this rule might make Sony/Napster/Grokster consistent, it’s still an “inane debate” because it does nothing to stop piracy.  People who want to infringe would simply move to Morpheus.  True enough.  I’m not trying to come up with a rule with the sole objective of ending piracy.  Indeed, I like this rule in part because I think the alternatives, like a negligence rule or the INDUCE Act, would be so dreadful for innovation and would do little to stop piracy. I’ve addressed the negligence rule here. As for the INDUCE, if it is as benign as Hatch makes it out to be, then it will have little impact on piracy; in particular, non-commercial, open-source developers of Gnutella, Fasttrack, et. al. clients could quite plausibly argue that they had no intent to aid infringement.  So I concede the point about this change not fixing the piracy problem, but I don’t think that that makes this adjustment to current doctrine an inane undertaking.

Things That Bother Me, Vol. 1

In the INDUCE Act floor statement, Orrin Hatch’s aide citing the Berkman Center for the proposition that P2P are “piracy machines” that trick consumers (see page 3):



“A secondary-liability rule that punishes control and immunizes inducement is a public policy disaster. It seems to permit the distribution of ‘piracy machines’ designed to make infringement easy, tempting, and automatic. Even Harvard’s Berkman Center for Internet and Society suggests that this is happening. The Center warns that ‘it can be extremely difficult for a non-expert computer user to shut down’ the viral redistribution that can otherwise automatically make the user an international distributor of infringing works. The Center notes that the ‘complexity of KaZaA’s installation and disabling functions’ may leave many users unaware that they have become a contributor to global, for-profit copyright piracy. Unfortunately, ‘piracy machines’ designed to mislead their users are just one of the perverse effects of a secondaryliability rule that punishes control and immunizes inducement”


The quoted statements are not so much Berkman Center policy as they are excerpts from the Alaujan amicus brief.  And I just plain hate to see such quotes used out of context when the Center has spent so much time trying to push forward meaningful, balanced debate on these issues.  But that’s how it goes sometimes, I suppose.


See also, the FTC’s comments today that play down supposed trickery of the P2P services and imply that working with the industry is a probably sufficient.


[added, 6/24 10 AM] Note, to avoid any confusion: In this post and all posts, I speak for myself only, not for the Berkman Center or for any other institution that employs or has employed me.

Things I Like

Ernest’s DRM posts have overflowed from Copyfight over to Importance Of…. Check both blogs and when in doubt check Frank for more linkage.  Ernest’s really laying out the case against DRM nicely.

P2P Hearing statements

See here for statements from today’s Senate Commerce Committee hearing on P2P.  Pay particular attention to the FTC’s discussions of P2P.  I hope the Congressmen recognize how far this is removed from the scare tactic rhetoric of the RIAA/MPAA.

More on DRM Lock-In

Can’t comment on this now, but please be sure to read the following three posts:


Cory’s talk on DRM at Microsoft; Ernest’s response; Wendy’s response to Ernest


Frank has been tracking this nicely, so look there as well for more updates.

Napster Players Can’t Play Napster Songs

Frank points to a couple articles about Napster deciding to give away Rio Chiba portable players to users who sign up for one year subscriptions.  What’s funny is that the Chibas can’t play music that a subscriber downloads; you have to buy the song for a dollar in order to move it to a portable device.  Unless you can upgrade the firmware (which is quite possible), you won’t be able to even transfer the songs when Janus rolls out.  So this isn’t just a means to draw people to the Napster service, but to get them to pay for permanent downloads.


Note that this strategy is in part a result of the iTunes-iPod tie or more generally the DRM+DMCA lock-in factor.  Companies can’t easily compete in the store and player markets independently.  If you have a player that can’t interoperate with store’s songs, your product is worthless. Similarly, if your store sells songs that aren’t supported by the most popular hardware, your songs are worthless.  Thus, lack of interoperability creates barriers to entry in both markets.


For more, see the now white paper edition of the Berkman Center iTunes Case Study.

Inducing You To Visit Other Blogs

As is probably apparent, I haven’t had enough time to link to all the great posts out there.  Please visit everyone on the blogroll, esp. Frank and Copyfight.  The big news of the last 24 hours has been the INDUCE Act.  I wonder how much of this blog is an illegal inducement under the Act. Sigh.


In any case, here are a couple of links to get you started: Copyfight, Frank, SethF, Ed Felten.


Also, see my earlier article called, “Protecting Sony and the Internet: A Discussion and Critique of Imposing Harsher Secondary Copyright Infringement Rules to Inhibit Peer-to-Peer File-Sharing.”  Therein, I criticize a negligence approach to secondary liability, which doesn’t even come close to the harm that this inducement standard would do.

iTunes Europe and the iTunes Case Study

With iTunes Europe now upon us, I figured I’d plug the Berkman Center’s iTunes Case Study once more.  We paid particular attention to how copyright and other relevant laws differ around the world and can impact iTunes and its users.  The case study is a draft green paper, and the Digital Media Project welcomes all comments.

Apple Pricing Rumors … or Reality?

About a month ago, there were rumors that the record labels had forced Apple to increase its iTunes prices.  Steve Jobs and Apple immediately rebutted those claims.  With the launch of iTunes Europe, I wonder if the unnamed source got some basic facts right but missed certain important details.  iTunes Europe pricing is above the 99 cent per song price, with prices of €0.99 (roughly $1.20) and

Sony-fication, Indeed

Ernest points to a couple new items in which Steve Jobs puts on his Hollywood hat and decides that innovation should slow down until DRM can (if ever) catch up.  I saw a related quote from the Mossberg interview on Paidcontent and got a chance to cross-check it today:



“Mr. Mossberg: A lot of music is likely to be available in formats I can’t play on my iPod today.

Mr. Jobs: Like what?

Mr. Mossberg: Like [Microsoft Corp.’s] Windows Media Format. Why should I as a consumer have to have a limitation on my device because you have a religious war with [Microsoft Chairman] Bill Gates? Are you against consumer choice?

Mr. Jobs: No. Right now we’ve got a choice to make ourselves, which is should we spend our energy enhancing the music store and enhancing the iPod in the format that has 70% of the business or should we take some of that energy and stop innovating and go back and try to play Windows Media, which has 30% or less of the market. And we’ve chosen right now to go with the 70% format. We really believe that we can innovate much more if we control that technology. [emphasis added]

Mr. Mossberg: So what if they get to 50%?

Mr. Jobs: Well, then let’s talk again.”


Sounds kinda similar to Sony.  He wants to control the technology, and I don’t think he means that narrowly in the sense of just the iPod – he means the player (and other ancillary) markets.  Yes, Apple may be able to innovate much more, but not everyone else will.

Liebowitz’s Newest File-Sharing Article

Stan Liebowitz has produced yet another article on file-sharing’s impact on record sales.  This time, he approaches the issue first from a theoretical basis, criticizing the argument that sampling via P2P will increase record sales.  He then questions the results of Eric Boorstein as well as Professors Oberholzer and Strumpf, which suggested that file-sharing might not hurt record sales and thus went against Liebowitz’s own analysis.


I do not know enough about the economics here to say whether Liebowitz’s criticisms are right or wrong.  However, as I’ve said before, I generally agree with Liebowitz’s point that the industry’s declining sales along with the economic theoretical basis creates a stronger presumption that file-sharing will (at least in the long run) harm record sales.  The alternative explanations aren’t necessarily wrong, but they have to provide a very strong case to overcome economic theory’s expectations and recent trends in record sales and file-sharing.

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