February 28, 2005
Volume 8, Issue 2
Upto11.net Fan-Based Music Discovery
DCIA Winter Meeting participant Upto11, Inc. today announced the availability of its new website, upto11.net, enabling music fans to quickly discover relevant new music from the digital music collections of hundreds of thousands of other music fans. Upto11.net presents users with the most diverse catalog for music discovery, with over 9 million songs from more than 40,000 artists.
"In spite of all of the advances in digital music over the last several years, it is still very time consuming to discover a new band," said David Sabel, upto11.net co-founder. "As a result, most fans never get exposed to the vast majority of music released each year, much of which may be relevant to their tastes."
Upto11.net enables users to find recommendations fast. Within seconds after entering the name of a band that they know, users get a list of 50 or more relevant bands to explore. They can then browse top song and album lists, read biographical articles, and listen to song previews.
The site also allows users to customize recommendations by focusing their search within other collections that contain up to four bands that they know. In addition, users can control the overall popularity level of the bands that are recommended.
Once fans discover new bands that they like, they can guide other fans to their discoveries by filing artists under categories that they create, by publishing comments, and by creating playlists. The site also allows users to subscribe, via RSS feeds, to one another's saved artist lists, comments and playlists.
"Upto11.net is positioned to provide the best recommendations because of the broad nature of the music found in the collections of music fans," added Matt Grosso, upto11.net co-founder. "This creates a much better discovery experience than any single retailer whose recommendations are limited to the music that they sell."
Claria Joins Federal Privacy Board
Excerpted from Report in CNET News by Declan McCullagh
The Department of Homeland Security has named DCIA Member Claria Corporation to a federal privacy advisory board. An executive from Claria will be one of 20 members of the committee, the department said Wednesday.
"This committee will provide the department with important recommendations on how to further the department's mission while protecting the privacy of personally identifiable information of citizens and visitors of the United States," Nuala O'Connor Kelly, the department's chief privacy officer, said in a statement.
Claria bundles its pop-up advertising software with ad-supported applications such as Kazaa.
"I am proud of, supportive of and grateful for those individuals in the public and private sector who are willing to take on the hard tasks, fight the good fight, and who surprise us with creative, fresh and unconventional thinking, and who make change where change is needed through their hard work and personal dedication," Kelly said.
Claria's representative on the Homeland Security privacy board will be company Chief Privacy Officer & Vice President Reed Freeman, a former Federal Trade Commission staff attorney. Other members include executives from Intel, Computer Associates International, IBM, Oracle and the Cato Institute.
Kelly said Freeman will "bring his courage and conviction to the board, and will contribute productively – and constructively – to the board's and the public's dialogue on privacy and homeland security."
Report from CEO Marty Lafferty
Oral arguments in MGM v. Grokster will be heard before the US Supreme Court on March 29th. This has the potential to be a landmark case for digital distribution of copyrighted works in the twenty-first century.
Twenty-eight of the world's largest entertainment companies originally brought this lawsuit, nearly three years ago, against the developers and distributors of Grokster, Kazaa, and Morpehus peer-to-peer (P2P) file-sharing software.
Their objective was to establish a precedent to use against other technology companies, essentially creating the requirement that prospective innovations which might affect content distribution be subject to the prior approval of rights holders.
The Ninth Circuit Court decision rendered in August 2004, affirming the initial district court finding, read in part: "This appeal presents the question of whether distributors of peer-to-peer file-sharing computer networking software may be held contributorily or vicariously liable for copyright infringements by users. Under the circumstances presented by this case, we conclude that the defendants are not liable for contributory and vicarious copyright infringement and affirm the district court's partial grant of summary judgment."
The plaintiffs again appealed, this time by petitioning the Supreme Court, and in December 2004 the high court "granted certiorari" – or agreed to hear the case.
Last month, in addition to the briefs filed by the primary and secondary petitioners or plaintiffs, approximately twenty amicus briefs – or "friend-of-the-court" papers – were filed with the high court in support of their position and ten were submitted that were neutral as to the result.
Tomorrow, March 1st, the briefs of the respondents or defendants are due as are amicus briefs supporting their position.
Filings are anticipated from consumer groups, economics and law professors, the consumer electronics industry, diverse representatives of the technology sector, and others. The DCIA is very grateful for the support of several parties, including DCIA Members and non-Members, who have worked hard in developing well-conceived and carefully executed briefs for submission.
We also thank Public Knowledge for agreeing to host a press conference in Washington, DC to help publicize these positions. Next week's DCINFO will feature summaries of this event and the briefs.
As the Electronic Frontier Foundation (EFF) pointed out in its arguments before the Ninth Circuit, "This case raises a question of critical importance at the border between copyright and innovation: When should the distributor of a multi-purpose tool be held liable for the infringements that may be committed by end-users of the tool?"
The Supreme Court's historic finding in the 1984 Sony v. Universal case (the "Betamax decision") held that a distributor cannot held liable for users' infringement so long as the tool is capable of substantial noninfringing uses.
In MGM v. Grokster, the Ninth Circuit found that P2P file-sharing software is capable of, and is in fact being used for, noninfringing uses.
Relying on the Betamax precedent, the court ruled that the distributors of P2P software cannot be held liable for users' copyright violations.
"The copyright law principles set out in the Sony Betamax case have served innovators, copyright industries, and the public well for 20 years," said Fred von Lohmann, EFF's senior intellectual property attorney. "We at EFF look forward to the Supreme Court reaffirming the applicability of Betamax in the 21st century."
For more about what's at stake in this case, please see Jonathan Krim's excellent round-up from last week's Washington Post, High-Tech Tension Over Illegal Uses, as well as Electronic Frontier Foundation Defends Freedom to Innovate in Grokster Appeal, Tech Dodges a Bullet, and Betamax Was a Steppingstone by Fred von Lohmann.
INTENT "Mother of God" Music Video
DCIA Member INTENT MediaWorks last week announced the P2P premiere of the music video "Mother of God" by Scooter Scudieri.
"Scooter has broken several records in downloads and searches as an independent artist. His video is another breakthrough showing the power in the message of his music," said Les Ottolenghi President of INTENT MediaWorks, which commercially distributes Scooter's videos and music via peer-to-peer (P2P) file sharing technologies.
"Clearly Scooter has created a large fan base and is the first legitimate singer-songwriter to make it as a rock star on the Internet," added Ottolenghi.
"'Mother of God' is my no-holds-barred critique on religion, politics, and war," said Scudieri.
"With P2P, I am able to communicate to a massive audience with an unorthodox lyrical content that you will not hear on the radio. As an independent musician, I am free to create and distribute my music in its original and authentic form faster than the lumbering giants of the record industry."
"With the DIY digital technology, my music is as good sonically as anything put out by a major record company. I think music fans will react as well to the video as they did to the song", added Scudieri.
"My goal is not only to provide good music, but also to offer songs that people can identify with. 'Mother of God' gets to the heart of what many people are thinking, but perhaps are too fearful to speak."
Scudieri operates as the first full-service musician of the 21st century, producing, composing, performing, and distributing all his music without the help of an agent, manager, or record company. Scudieri has built the largest independent following of any artist over the Internet.
"We have tracked Scooter's P2P file download numbers and think he can top 100,000 with a video, said Martin Gray of Gray & Associates, a firm that specializes in technology and media analysis. Scooter's video was produced by Santa Monica based EZTV – a company that specializes in digital video.
"The days of 'getting signed' are long gone. The antiquated music business model is dead. You will never see it again. In its place, innovative pioneers are constructing new and dynamic models where the fan and artist meet, communicate, trade, exchange, buy and sell, collaborate, and learn the importance of their roles."
"Yes, it's a learning curve for everybody - but it boils down to one easy construct. The new music industry contains two elements - the musician and the fan. It is that simple." said Scudieri.
Scudieri's success is reflected in his many awards including two Telley Awards, and a Golden Web Award in 2004. He was selected as 2003's Best of the New Writers, by the Song Writer's Hall of Fame, for which his song The Usual was placed on Volume One: Best of the Songwriters Hall of Fame compilation CD.
Digital Containers & ePage SWIFT Reader
Excerpted from Report in Publish by Nettie Hartsock
DCIA Member Digital Containers and ePage International want to make it economically viable and expedient for publishers to monetize digital content and for readers to embrace online print versions of their favorite offline media.
SWIFT Reader, from Singapore based ePage International, is a miniaturized electronic publishing solution encompassing its own font engine and a fully scalable page-turning algorithm.
The solution enables printed material like books, magazines, newspapers, and catalogs to be strikingly similar visually in both type and representation to print copy when delivered onscreen.
Andrew Thacker, managing director of the UK office of ePage, said, "Our rich formatting syntax, embedded search, and bookmarks allow us to give readers a quality, print-like layout that makes the online reading experience totally enjoyable. Digital Containers complements ePage's publishing technology by locking down the content so it can't be fraudulently distributed and by providing secure e-commerce and shopping cart capabilities."
"The benefits of this partnership are far-reaching. We can duplicate the experience of reading print material online. The content owner is compensated through our digital container system every time a new reader views the content," said Digital Containers CEO Chip Venters.
For SWIFT Reader's first time out, the partners are targeting the comic book industry market, where publishing and publishers have experienced a new boost in growth in young readership.
The key benefit in the collaboration, according to Venters, is the infinite number of content options the containers portend. A sample of the SWIFT Reader for devotees of Matrix Comics can be found at www.digitalcontainers.com/samples.htm.
"The Future of Music" Book Launch
According to DCIA CES panel participant and author, Gerd Leonhard, "The record industry as we know it is dying. But the music industry is healthier and more vibrant than ever with limitless possibilities for change and growth due to the Internet and the digitization of music."
"'The Future of Music' will show you new ways to find music and connect with your favorite artists. Discover the top-10 truths about the music business of the future and how you can benefit from the explosion in digital music, today and tomorrow."
"From free music and MP3 music downloads on Kazaa to downloads from iTunes, Napster, and Rhapsody, to other forms of free music online, 'The Future of Music' charts a music industry destined to embrace digital music."
Gerd is the Founder and CEO of ThinkAndLink, a Basel, Switzerland and San Francisco, CA based strategic advisory firm that connects people, companies, resources and ideas in the converging sectors of entertainment and technology.
He also serves as senior advisor to Media Rights Technologies, a developer of copy-protection technologies for digital media, which announced last week the release of its SeCure DVD software-based product to control ripping, copying and burning of DVDs.
The technology uses a dynamic update process to guard against future ripping applications and technologies. Santa Cruz, CA based Media Rights Technologies said that SeCure DVD is currently being evaluated by several film studios and DVD authoring houses.
Half of US Aware of Movie Downloads
Excerpted from Report in Digital Media Wire
Nearly half of Americans are aware of the ability to download a movie off the Internet, although only 4% have actually done so, according to a survey conducted by New York based market research firm Ipsos-Insight.
The survey found younger Americans have downloaded movies – mainly by using peer-to-peer (P2P) file-sharing software – in greater numbers, as 12% of those ages 18-to-24 reported having done so, as did 8% of those ages 12-to-17.
"With the music industry struggling in the past few years to define and integrate the role of digital acquisition methods into the existing marketplace, it appears that the motion picture industry is presented with a unique opportunity to learn from the evolution of that category," said Ipsos-Insight VP Matt Kleinschmit.
The survey also revealed that 34% of Americans over 25 "have never heard of downloading full-length movies off the Internet," while 27% of 12-17 year-olds said the same.
"It's important to keep in mind that traditional movie watching options such as going to the movies and renting movies still hold the lion's share of movie-watching behavior," added Ipsos-Insight SVP Lynne Bartos.
Studios Fire Oscar Broadside
Excerpted from Report in The Guardian
The Motion Picture Association of America (MPAA) launched its third wave of consumer lawsuits in four months, as all the main Oscar contenders are already being traded over the Internet.
In the latest volley of a campaign that has seen the MPAA take its fight into the schools, colleges, cinemas, and courts of America, officers lodged an unspecified number of "John Doe" civil cases in federal courts.
In a press conference in LA last week, the MPAA's Senior Vice President of global anti-piracy operations John Malcolm said that once the papers had been filed, officers would seek to amend the claim with a court order forcing Internet service providers (ISPs) to give specific names of offenders.
Malcolm said most pirated online content was initially recorded by camcorder at advance screenings in Hollywood. He refused to elaborate on what portion of online piracy was generated by illegal copying of screener tapes sent out by the Academy of Motion Picture Arts and Sciences (the Oscars body), and other awards bodies.
Piracy has been the biggest thorn in the MPAA's side for well over a year now. By way of deterrent, the organization has instigated a system of security checks that includes screening-room patrols by guards sporting night-vision goggles, specially encrypted screener discs, and educational trailers in cinemas.
Coming Events of Interest
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Digital Music Forum - The 5th annual DMF is set for March 2nd at the French Institute Alliance Francaise in New York. DMF is the premier event for music industry decision-makers focused on business models and legal issues impacting music.
Shawn Fanning, Co-Founder of SnoCap will be the keynote this year, and featured panelists include Phil Corwin, Chief Lobbyist for DCIA Member Sharman Networks (owner of Kazaa); Jeff Bronikowski, VP of eLabs, Universal Music Group; Martin Elgison, Partner of DCIA Member Alston & Bird; and Ted Cohen, SVP of EMI Music.
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Canadian Music Week - Headquartered at the Fairmont Royal York in Toronto, March 2nd-5th, CMW will be the largest music and entertainment convention in Canada.
The DCIA Is proud to participate in "Redemption Song: Profit from P2P" moderated by LA Times correspondent Joseph Menn March 3rd at 2:45 PM. P2P has been the killer app driving the billion-dollar broadband business, and can generate new revenues for music rights-holders. There are a slew of new companies offering moneymaking P2P plans. This panel will consider whether it's time to talk carrot instead of stick.
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IP and Creativity Conference – Connect with leaders who are shaping today's intellectual property issues. Policy makers, CE manufacturers, media, think tanks, academics and Hollywood executives convene March 16th in Washington, at this Consumer Electronics Association (CEA) sponsored event.
This jam-packed conference includes top industry, academic and media luminaries, including Arlen Communications' Gary Arlen; RIAA's Mitch Bainwol; Congressman Rick Boucher (D-VA); CDT's Alan Davidson; MPAA's Dan Glickman; LA Times' Jon Healey; CED's Charles Kolb; Washington Post's Jonathan Krim; CH Potomac's David Leibowitz; EFF's Fred von Lohmann; DCIA Member Sharman Networks' (distributor of Kazaa Media Desktop) Alan Morris; CEA's Gary Shapiro; Public Knowledge's Gigi Sohn; and UNC's Professor Koleman Strumpf.
Register today at www.CE.org/IPandCreativity.
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Future of Digital Music Forum – "What's after iTunes?" is the theme for The 2nd Annual DallasBlue Future of Digital Music Forum being held on Thursday March 24th, from 5:30 PM to 9:00 PM at Swan Court in Richardson, TX.
Five years ago the question was "What's after Napster?" Today iTunes is the poster child for Hollywood in a far more complicated environment. Overall music sales are flat. Broadband, the digital home, and wireless are increasingly pervasive. P2P continues to thrive despite an adverse environment. Online music services are popping up like weeds.
An expert panel spans the technology and entertainment sectors. Presentations and moderated discussions examine the convergence of music, consumer marketing, and technology. Sponsored by DCIA Member RazorPop.
- Supreme Court Oral Arguments – The US Supreme Court will hear arguments March 29th on whether companies that provide peer-to-peer (P2P) software violate copyright laws if their users commit copyright infringement. The Court's date for oral arguments in the case, MGM v. Grokster, coincides with an expected decision in a similar high-profile case in Australia, which involves Kazaa.
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