July 25, 2005
Volume 9, Issue 11
Welcome Unity Tunes
Please warmly welcome Unity Tunes to the Operations Group. We look forward to providing valuable services to this newest DCIA Member and supporting its contributions to the distributed computing industry.
Unity Inc., a privately-funded company based in Ontario Canada, with principal offices in Los Angeles, CA, San Antonio, TX, and Fresno, CA, is mounting a program of proprietary digital rights management (DRM) solutions, starting with its acoustical version appropriately named "Unity Tunes."
According to Unity CEO and founder, Joe De Bono, "Without a doubt, it's admirable to disclaim against unauthorized distribution of copyrighted works. However, doing so and concurrently placing tools in consumers' hands to breach the protection of such works is not only a stepping stone to immorality, but also a misuse of technology and a dark day for artists around the world."
Finally a 'light at the end of tunnel' for copyright holders emerges with the introduction of Unity Tunes.
Unity Tunes will leverage existing peer-to-peer (P2P) networks along with its own innovative "Bright Light" proprietary P2P software structures to create new opportunities for artists and copyright holders to monetize their works, while at the same time creating a 'secure community feel' of efficient authorized Internet activities for users.
De Bono adds, "The 'Bright Light' that Unity Tunes projects for copyright holders could also be interpreted by copyright infringers as the bright light one reportedly sees when crossing over to the next level of existence – and it is our plan to convert infringers into satisfied customers."
Negotiations with record producers and artists have already begun, and Unity invites more copyright holders to register their works with Unity's no-charge "Protect Me" service to put an end to unauthorized distribution of their otherwise unprotected files. The Unity Tunes website, www.unitytunes.com, is scheduled to go live on August 1st.
Beta testing of Unity Tunes propriety solutions is scheduled for mid-November, with public versions to be released shortly thereafter. For a personal invitation to become a limited-use Bright Light beta tester, please sign up at brightlight@unitytunes.com.
Musician Doing It His Way
Dubbed by his fans as the 'Internet's first rock star,' DCIA Member Scooter Scudieri has been hard at work earning that title. Music has been a major part of his life.
His new debut video, "Mother of God," is promoting peace and more than 100,000 copies have been downloaded.
Scudieri said he took the time to learn about Internet technology. He built and tore down Web sites. He is 'utilizing high tech and high intensity to promote his music around the globe.'
"This is my purpose, which was borne out of necessity. I was the only one that could create my own art. The 'first rock star' campaign is a means to an end. It was my vision. I don't need an editor."
He sells his music over the Internet through fellow DCIA Member INTENT MediaWorks, the largest distributor of download entertainment media using P2P. He said consumers can purchase individual songs for about a dollar through a secure Internet service like PayPal.
He does this without an agent, a manager or a record company. He said there is no need for those because, "It's between the musician and the fan. It's that simple," he said.
What he does is a marketing analysis. First, he gives away a lot of copies of a song. Then he'll rework it and sell it via P2P on the Internet. Sponsors can be added to link to their sites for a fee.
Instead of contracting with music promoters, Scudieri does it himself. "The tables have turned," he said.
Scudieri is preparing to perform with four other artists in a multi-state tour whose theme encompasses protecting children online called "THE NEW VOICE OF P2P."
"Use your art wisely; it can be the ultimate messenger of peace," he said.
Report from CEO Marty Lafferty
 Please check last week's DCINFO for details about signing up for the MGM v. Grokster Response Working Group (MGRWG) to help define a set of best practices for the distribution of peer-to-peer (P2P) software with the object of promoting its use in ways that do not infringe copyright.
This week, we highlight the second new area of DCIA activity, 'a promotional program highlighting licensed content P2P distribution, appropriate software usage, and protection of children online.'
We are very excited to announce the "NEW VOICE OF P2P" concert tour, initially comprised of 45 live concerts at leading colleges and town centers in 30 major east-coast markets over a period of 10 weeks featuring 5 top independent musical artists.
A cadre of young, socially conscious musicians is advocating authorized online file sharing and child protection with this promotional program to create awareness of the benefits of using P2P appropriately, emphasizing features such as licensed copyrighted works and parental controls.
The "NEW VOICE OF P2P" is being produced by Beneath the Noise (BTN) – a marketing and concert promotion firm specializing in college events.
The tour champions up-and-coming artists who are now using P2P file sharing for licensed distribution of their original works. It encourages proper use of P2P by consumers for authorized redistribution. It also underscores the obligation of responsible users to help protect children online – particularly against inadvertent exposure to undesirable content.
Growing out of the tour will be an online contest for participants and fans to produce the most creative multimedia music videos/remixes from concert coverage plus added original content – to be redistributed via P2P and ranked by other users – with awards for the best of these given at the culmination of the tour.
Headlining the cause, with a powerful multimedia finale, is DCIA Member Scooter Scudieri. Recognized in many circles as the Internet's First Rock Star, Scooter has found great success operating without an agent, manager, or record company. He has defied the odds and obstacles by achieving the unthinkable for an independent artist: high profile tours, media attention, and legions of fans.
The remaining talent on the tour represents some of the best and brightest underground artists, starting with DCIA Member Jillian Ann, who garnered a pre-Grammy nomination in the Best New Artist category in 2003 from the Recording Academy. Also featured will be Heavy MOJO, which has quickly developed into one of the most sought after bands in the Southeast. Their debut album, "It Is What It Is," charted nationally at #6 on SMQB's chart for independent/sub-modern artists. And Divinity, whose powerful performance and engaging show has propelled her to opening for such groups as The Roots.
The tour will also highlight guest emcee appearances by major nationally known comedic celebrities, who will lend their talent to accentuate the major themes of supporting independent artists, practicing responsible P2P usage, and protecting children online – with humor. It will also provide a venue for promising regional musical talent. Above all, the program will appeal to a full spectrum of college tastes and interests.
The mission of the "NEW VOICE OF P2P" is to encourage the growing movement of independent artists, promote the positive aspects of authorized P2P file sharing, and reinforce a proactive child protection message. Profits from the tour will help support P2P PATROL (Peer-to-Peer Parents And Teens React On Line), which includes licensing TFLE X-Files for law enforcement and funding the operation of cpHotline.org.
By empowering young attendees to come to an understanding on their own terms, the vital messages of constructive attributes and responsibilities of today's file-sharing culture will be seen by inspiring examples, rather than by enforcement methods (e.g., copyright infringement lawsuits). Without being confrontational, the potential dangers and harms of unauthorized and inappropriate P2P usage will also be exposed.
Projected demographics are: ages 18-24 75%, 25-34 15%, over 35 10%; 45% male, 55% female; single 85%, married 15%; professional/managerial 5%, hospitality/service 5%, university student 90%; household income 85% under $60K, 8% $60-75K, 7% over $75K.
Media value to tour sponsors guarantees 350 million gross impressions: 5 million live audience, 20 million street marketing and point-of-contact, 25 million local commercial and college radio and print promotion, 50 million college radio interviews and previews, 80 million online with interactive ads and P2P home-pages, and 170 million P2P downloads of tour and contest files.
Benefits for consideration include enhancing the image and reputation of sponsoring companies among the tour's key target groups; introducing new products and services to a large, youthful, future high-income demographic; and increasing product and service name recognition and exposure throughout this community. Please contact NVP@dcia.info for more information.
ASACP's cpHotline.org Honored
The Association of Sites Advocating Child Protection (ASACP) has been named to the 2005 Associations Advance America Honor Roll, a national awards competition sponsored by the American Society of Association Executives (ASAE).
ASACP received the award for its cpHotline.org program, which was developed to help P2P software users recognize, remove, and report criminally obscene content inadvertently encountered online.
"ASACP knows that there are multiple distribution methods for these illegal images on the Internet. We felt it was important to help other organizations by sharing our recently developed technology platforms. The cpHotline.org program saved the DCIA-sponsored P2P PATROL years of development time, and provided an immediate method for P2P customers to report suspected illegal material," stated Joan Irvine, executive director, ASACP.
Now in its 15th year, the prestigious Associations Advance America Awards program recognizes associations that propel America forward – with innovative projects in education, skills training, standard setting, business and social innovation, knowledge creation, citizenship, and community service. Although association activities have a powerful impact on everyday life, they often go unnoticed by the general public.
"ASACP's program truly embodies the spirit of the Associations Advance America campaign. It is an honor and an inspiration to showcase this activity as an example of the many contributions associations are making to advance American society," remarked Associations Advance America's Chair David Gabri.
The ASACP mission is to help multiple sectors of the online industry, including legitimate adult entertainment sites and P2P networks in their ongoing efforts to battle criminally obscene content on the Internet. In addition, ASACP provides a self-regulatory vehicle for its members through a Code of Ethics that promotes the protection of children through responsible, professional business practices.
Skype to Reach Billions with Video Phones
DCIA Member Skype has tens of millions of users but envisions attracting billions with the help of video phones, says company CEO and co-founder Niklas Zennström.
Zennström demonstrated a beta video version of Skype during his keynote last week during AlwaysOn at Stanford University. The application is a plug-in based on Skype's core telecommunications technology.
"We are focused on developing our products and extending our APIs (application user interfaces) so we can be bigger than we could be by ourselves," Zennström said.
Skype has been successful with an affiliate program that allows companies and small website owners to co-brand the Skype service. So far, sites in China, Korea, Japan, Taiwan, and some European countries are on board. Zennström also noted that his company's partnerships with hardware manufacturers, including Motorola and Siemens, would help increase Skype's user base.
Video telephony has perennially been the 'next year application' for leading providers of Internet telephony. In the US, video telephony is available from Packet8, a Silicon Valley-based net phone operator. Meanwhile, gear makers Cisco Systems, Avaya, and others are trying to develop ways to lower the costs of video phones.
Analysts believe businesses will be the first adopters of video telephony, mainly as a way to cut down on travel costs associated with in-person meetings. Consumers are less likely to adopt such a service until the price of phones drops to affordable levels - below $100 each, analysts say.
Considering that Skype's telephony software has been downloaded more than 132 million times, and has up to 3 million simultaneous users at any time of day, Skype's entry into the video phone application game is sure to boost the industry's chances.
BeAudible.com AMPs Up for P2P
BeAudible.com, an Independent Content Provider (ICP) for DCIA Member Shared Media Licensing (SML), has entered into a digital distribution agreement with Afrikool Music Production (AMP). Afrikool artists include Nicole Collins, Kool International Friends, Jim Savitt, Miko Fukunaga, Inko/Neido Tribe, 'Sir' Francis, and Alain Nkossi Konda.
With SML's Weed technology, AMP can sell its music via P2P as a safe, efficient and secure distribution channel. "We are very excited to be working with Weed and beAudible.com – it is clear this alliance will help us connect directly with our audiences, which is the vision we and our partners share for Afrikool's growth well into this 21st century," said Alain Nkossi Konda, CEO and founder of AMP.
Weed Files are a legal way to share music 'buying only what you like after three free listens.' The innovative music download model developed by SML pays artists and consumers who share their songs, whether tracks are redistributed through P2P programs, from websites, or e-mailed.
Indie911 Scores with Top Podcast
DCIA Member Indie911, the Internet's leading independent music network, announced that its podcast reached over 10,000 downloads in its first week. The company attributes the viral nature of its success in part to its commitment to featuring credible, great new music. Helped along, perhaps, by The Dolls – two gorgeous twin-model-DJ's narrating their way through themed podcast shows with titles like "Hotties with Guitars," "American Roadtrip" and "Sex Fruit Challenge" – a playlist designed around, well, you'll have to subscribe on iTunes to find out.
"While major labels sue their best customers for sharing music and drop artists who may not sell platinum, Indie911 has filled a void in the music business, enabling consumers and an expanding independent music sector to discover new artists and labels," says CEO and founder Justin Goldberg. Indie911 has grown fast – over 1,000 new songs are added each month to an online playlist broadcasting over 55,000 songs to listeners.
Podcasting is the fastest expanding new trend online. Consumer technology research firm The Diffusion Group published a report recently prepared by DCIA Member RazorPop CEO Marc Freedman projecting a 60% growth in podcasting by digital music player owners in the next five years; enjoying a 101% compounding annual growth rate (CAGR).
City Canyons "slow burn"
DCIA Member City Canyons Records last week announced its upcoming release of "slow burn" a remarkably original album by a new creative force from the United Kingdom, ANEMO. Release of "slow burn" will be supported by a full-scale publicity campaign in traditional media and on the Internet. Prior to its general release in retail stores, "slow burn" will be available in limited quantities online at CD Baby and at the City Canyons Records Online Store.
ANEMO is bracingly fresh, featuring its own definitive sound which combines crunchy drums and expressive guitars ranging from pop-rock to metal with knock-out stratospheric vocals, courtesy of lovely diva Hazelle Woodhurst. That sound and those vocals wrap around strong edgy lyrics and songwriting from the team of Woodhurst, Kingsley Sage (keyboards) with additional contributions from Matt Palmer (guitar).
Copyright Office Proposes Pre-Registration
Excerpted from Digital Media Wire Report
The US Copyright Office announced Friday that it is proposing regulations for the 'pre-registration' of unpublished works like movies and music albums, which have had a history of pre-release infringement.
The Copyright Office is looking to address the distribution of such works as unfinished music albums and 'dailies' from movie productions that have found their way onto P2P file-sharing networks. The regulations would allow for pre-registration of a copyright while the work is being prepared for commercial distribution; current law states that copyright registration is a prerequisite for suing for copyright infringement.
The Office is seeking public comments on the proposal by August 22nd.
Roberts' Panel Rejected P2P Ruling
Excerpted from Hollywood Reporter Report by Brooks Boliek
President Bush's pick to succeed Justice Sandra Day O'Connor was part of the three-judge panel that threw out a section of the Digital Millennium Copyright Act that would have given entertainment companies an expedited way to identify alleged copyright pirates on the Internet.
In a December 2003 ruling, Judge John Roberts joined two other appellate court judges in overturning a ruling that the DMCA subpoena was constitutional. In its opinion, the panel dismissed arguments by the RIAA that P2P services are simply an extension of central-server technology. The panel rejected RIAA's argument that the subpoenas were legal even if P2P technology wasn't invented when the DMCA was approved.
Roberts wondered at the time whether the fact that copyrighted files were publicly accessible on someone's computer necessarily means that the Internet user is illegally distributing those files.
"Isn't it equivalent to my leaving the door to my library open?" Roberts asked. "Somebody may come in and copy my books, but that doesn't mean I'm liable for copyright infringement."
While Roberts expressed serious doubts about the viability of the subpoenas, he was equally concerned with Verizon's contentions that copyright holders should have to go before a judge.
Roberts decision to join his fellows on the court in the opinion doesn't necessarily mean he would bring an anti-copyright bias to the high court.
Administration Addresses Copyright Piracy
Excerpted from AP Report by Martin Crutswinger
The Bush administration said Friday it created a new position to coordinate government efforts to combat the foreign theft of copyrighted products. President Bush selected Christian Israel, currently a deputy chief of staff at the Commerce Department, to fill the new post.
"Intellectual property theft costs US businesses billions of dollars and weakens our economy," Gutierrez said. "This new position will help us be more aggressive."
Gutierrez said that one of Israel's early priorities would be helping to monitor recent pledges made by China to crack down on the piracy of American movies, music, and computer software.
Coming Events of Interest
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DRM Strategies Conference – Jupitermedia's comprehensive event on digital rights management business and technology issues will be held July 27th-28th at the Puck Building in NYC. This is a must-attend for those involved in content security in both consumer media distribution and information security. The conference will feature leading industry figures who will introduce the fundamentals of DRM, shed light on future DRM directions, and provide incendiary debate on today's controversial issues of online piracy and digital copyright.
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US Senate Commerce Committee Hearing – On Thursday July 28th at 2:30 PM ET in Room 253 of the Russell Building the US Senate Commerce Committee will hold a hearing on issues related to MGM v. Grokster and the appropriate balance between copyright protection and communications technology innovation. Click here to view a live webcast of this hearing.
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Kagan's Digital Media Summit – The theme of this year's conference, which will be held on September 12th-13th at the Four Seasons / Mandalay Bay in Las Vegas, NV will be "New Opportunities For Monetizing Content." The DCIA will participate in the panel entitled "MIXING MEDIA'S POTION: Content Security Plus E-Commerce Fulfillment and On-Demand Delivery." DCIA Members receive a 50% discount on registration. Please contact DCIA Member Services leader Karen Kaplowitz for more information at 888-890-4240 or karen@dcia.info.
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Digital Hollywood Fall – "Transforming the Entertainment Industry." Scheduled for September 19th-21st at Loews Santa Monica Beach Hotel in Los Angeles, CA. The preeminent digital media and entertainment conference in the country. This year featuring a series of special University Project workshops. The DCIA will moderate "Track I: Next Generation P2P Music and Film - DRM, Paid for Pass-Along and Other Legal Distributed Computing Models and the Entertainment Industries." DCIA Members are also planning to host entertainment.
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Technology Law Institute – A Digital Media Rights panel will be featured September 20th at the Headquarters of the State Bar of Georgia, in downtown Atlanta, GA. Kilpatrick & Stockton's James Trigg will moderate with speakers Renay San Miguel from CNN, Kevin Lapidus from YellowBrixx, and Marty Lafferty from the DCIA.
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Internet Telephony Conference & EXPO – DCIA Member Skype CEO and founder Niklas Zennström will deliver the keynote address at this major conference at the Los Angeles Convention Center, CA October 24th–27th. His address, which will be delivered live from London via Internet Telephony Videoconference, will take place Tuesday, October 25th at 12:15 PM PT. Click here to register for the show.
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