Intellectual Property
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from the Electronic Frontier Foundation
Today, you can use any device you like with your television: VCR, TiVo, DVD recorder, home theater receiver, or a PC combining these functions and more. But if the broadcast flag mandate is passed, Hollywood and federal bureaucrats will get a veto over innovative devices and legitimate uses of recorded programming.
The mandate forces all future digital television (DTV) tuners to include “content protection” (aka DRM) technologies. All makers of HDTV receivers will be required to build their devices to watch for a “flag” embedded in programs by copyright holders.
When it comes to digital recording, it would be Hollywood’s DRM way or the highway. Want to burn that recording digitally to a DVD to save hard drive space? Sorry, the DRM lock-box won’t allow it. How about sending it over your home network to another TV? Not unless you rip out your existing network and replace it with DRMd routers. And forget about using open source TV tools. Kind of defeats the purpose of getting a high definition digital signal, doesn’t it?
Responding to pressure from Hollywood, the FCC had originally mandated the flag, but thanks to our court challenge, ALA v. FCC, it was thrown out. But that doesn’t mean the danger is behind us. Hollywood has headed to Congress to ask for the flag again. Take action to stop the flag now!
Back in the good ol’ days, a few weeks ago, when oink was still around, there was a firefox plugin called oink plus that pulled together similar artists, MySpace and LastFM pages for the artists Etc. It was rad. Maybe this will be rad too.
From TorrentFreak:
“The Pirate Bay just rolled out a new feature to their music section that makes it easy for users to find similar artists, more albums from the same artist and upcoming concerts. The data they are using comes from the popular music community website last.fm and is fully integrated into the website.”

(I love that they used Prince as the example.)
Mark Cuban recently blogged that he thinks ISPs should block P2P. …Period. His idea being that P2P usage is hogging up all the precious bandwidth, and in turn, slowing down the Web.
I don’t want to bother with taking apart all the things that Mr. Cuban said over there, because I think they’re mostly completely ignorant things to say like
“…To help those of you who cant understand how to distribute audio on Google Video, here is a hint: Re encode it with a little video, a couple pictures, whatever. Then it it wont be an audio file, it will be a video file.. Ta da . You get distribution by the best distribution network on the planet, for free.”
There are so many reasons why that statement makes me want to break something. Oh well
Let me focus on this instead:
Cuban’s point of view reflects some common misconceptions.
Misconception 1: P2P and File-Sharing are a bad things.
Peer-to-Peer, or P2P, describes a number of technologies for using IP to network computers. Of these, some of the most frequently talked about in the mainstream news are the Gnutella Network (Kazaa, Limewire Etc) and BitTorrent.
There are others though. Many, many others. For instance, if you use AIM and while chatting, you decide to send a picture to your buddy, you are using P2P. I’m pretty sure (correct me if I’m wrong) Vonage, Skype and other VOIP services are also examples of P2P.

And in fact, BitTorrent is being used for a number of lawful purposes including legal distribution of software and video and audio content.
“File-Sharing” and “P2P” are very broad terms. Using one of these broad terms when you are referring only to the specific instance of a technology that you do not approve of is misleading and/or ignorant. It’s a bit like referring to pornography websites as “The World Wide Web.”

Misconception 2: There is a shortage of bandwidth.
There is not a shortage of bandwidth. If you consider that practically every one of us has a wire coming into our homes that is carrying 100 channels of full-rez video that are always on, 24 hours a day… Yes, all 100 of them are on all the time even when you’re not watching them… Then you might start to wonder:
“Why do they say we have a bandwidth problem?”
or
“Why are Cable TV and the Internet Separate when with Cable’s speed and the internet’s freedom, [...yada yada...]?”
and eventually you might find yourself thinking about:
“What would happen to the Television Advertising Market if all the TV shows were just watched via the Web? Would that be bad for cable companies or good? Where would all that money go? ”
Or even
“Is it possible that there’s an actual reason that our Internet Connections aren’t fast enough to replace Cable TV yet?”
“Is this like a conspiracy theory or something?”
Now would be a good time to learn a thing or two about theThe Net Neutrality Debate. Pay close attention to what the Cable Companies seem to be after. Can you see what they want to do? Can you see why?
As you observe the bizarre feeding ritual of the greedy cable company, keep in mind, some of us are hogging all your bandwidth with our P2P technologies, so your research might get slowed down a little bit .

Prince is on the other team. The pro-control, pro-ownership-of-culture team. The team that likes to sue music fans.
Stolen from CNET
- The rock star has hired Web Sheriff, a British-based company that specializes in hunting down pirated content on the Web, to launch a legal campaign against companies that wrongfully profit from the artist’s work, according to John Giacobbi, Web Sheriff’s president.
Stolen from Wikipedia.org
- On September 14, 2007, Prince announced that he was going to sue YouTube and eBay because they “appear to choose not to filter out the unauthorized music and film content which is core to their business success.” A representative told Reuters, “The problem is that one can reduce it to zero and then the next day there will be 100 or 500 or whatever. This carries on ad nauseam at Prince’s expense.” [29] [30] Doug Lichtman, a lawyer for Prince released a statement saying, “above all, copyright law can welcome only those with pure motives. Those who abuse the law’s caution have no claim for its mercy.”

Brilliant blog post by Rob over at DemonBaby.com titled “When Pigs Fly: The Death of Oink, the Birth of Dissent, and a Brief History of Record Industry Suicide”
Quote:
“So the next question is, what now?
For the major labels, it’s over. It’s fucking over. You’re going to burn to the fucking ground, and we’re all going to dance around the fire. And it’s your own fault. Surely, somewhere deep inside, you had to know this day was coming, right? Your very industry is founded on an unfair business model of owning art you didn’t create in exchange for the services you provide. It’s rigged so that you win every time – even if the artist does well, you do ten times better. It was able to exist because you controlled the distribution, but now that’s back in the hands of the people, and you let the ball drop when you could have evolved.”
At the end of a long, delicious read, Rob writes:
“1. Stop buying music from major labels. Period. The only way to force change is to hit the labels where it hurts – their profits. The major labels are like Terry Schiavo right now – they’re on life support, drooling in a coma, while white-haired guys in suits try and change the laws to keep them alive. But any rational person can see that it’s too late, and it’s time to pull out the feeding tube. In this case, the feeding tube is your money. Find out which labels are members/supporters of the RIAA and similar copyright enforcement groups, and don’t support them in any way. The RIAA Radar is a great tool to help you with this. Don’t buy CDs, don’t buy iTunes downloads, don’t buy from Amazon, etc. Steal the music you want that’s on the major labels. It’s easy, and despite the RIAA’s scare tactics, it can be done safely – especially if more and more people are doing it. Send letters to those labels, and to the RIAA, explaining very calmly and professionally that you will no longer be supporting their business, because of their bullish scare tactics towards music fans, and their inability to present a forward-thinking digital distribution solution. Tell them you believe their business model is outdated and the days of companies owning artists’ music are over. Make it very clear that you will continue to support the artists directly in other ways, and make it VERY clear that your decision has come about as a direct result of the record company’s actions and inactions regarding digital music.
2. Support artists directly. If a band you like is stuck on a major label, there are tons of ways you can support them without actually buying their CD. Tell everyone you know about them – start a fansite if you’re really passionate. Go to their shows when they’re in town, and buy t-shirts and other merchandise. Here’s a little secret: Anything a band sells that does not have music on it is outside the reach of the record label, and monetarily supports the artist more than buying a CD ever would. T-shirts, posters, hats, keychains, stickers, etc. Send the band a letter telling them that you’re no longer going to be purchasing their music, but you will be listening to it, and you will be spreading the word and supporting them in other ways. Tell them you’ve made this decision because you’re trying to force change within the industry, and you no longer support record labels with RIAA affiliations who own the music of their artists.
If you like bands who are releasing music on open, non-RIAA indie labels, buy their albums! You’ll support the band you like, and you’ll support hard-working, passionate people at small, forward-thinking music labels. If you like bands who are completely independent and are releasing music on their own, support them as much as possible! Pay for their music, buy their merchandise, tell all your friends about them and help promote them online – prove that a network of passionate fans is the best promotion a band can ask for.
3. Get the message out. Get this message out to as many people as you can – spread the word on your blog or your MySpace, and more importantly, tell your friends at work, or your family members, people who might not be as tuned into the internet as you are. Teach them how to use torrents, show them where to go to get music for free. Show them how to support artists while starving the labels, and who they should and shouldn’t be supporting.
4. Get political. The fast-track to ending all this nonsense is changing intellectual property laws. The RIAA lobbies politicians to manipulate copyright laws for their own interests, so voters need to lobby politicians for the peoples’ interests. Contact your local representatives and senators. Tell them politely and articulately that you believe copyright laws no longer reflect the interests of the people, and you will not vote for them if they support the interests of the RIAA. Encourage them to draft legislation that helps change the outdated laws and disproportionate penalties the RIAA champions. Contact information for state representatives can be found here, and contact information for senators can be found here. You can email them, but calling on the phone or writing them actual letters is always more effective.
Tonight, with Oink gone, I find myself wondering where I’ll go now to discover new music. All the other options – particularly the legal ones – seem depressing by comparison. I wonder how long it will be before everyone can legally experience the type of music nirvana Oink users became accustomed to? I’m not too worried – something even better will rise out of Oink’s ashes, and the RIAA will respond with more lawsuits, and the cycle will repeat itself over and over until the industry has finally bled itself to death. And then everything will be able to change, and it will be in the hands of musicians and fans and a new generation of entrepreneurs to decide how the new record business is going to work. Whether you agree with it or not, it’s fact. It’s inevitable – because the determination of fans to share music is much, much stronger than the determination of corporations to stop it.
_____________________________________________________
If you enjoyed this article, please:
to help spread the word.
(The old non-direct Digg page is here. Digg appears to have finally lifted the block from this URL – thanks to everyone who emailed them!)
Labels: music, politics, rants”
[end of quote]
Nice, and nicely done, Rob.
According to the information I can find, the official breakdown of where the money goes, in a typical CD Retail scenario is as follows (I copied this from this page, although there are many more floating around with the same numbers). This breakdown of the cost of a typical major-label release by the independent market-research firm Almighty Institute of Music Retail shows where the money goes for a new album with a list price of $15.99.
- $0.17 Musicians’ unions
- $0.80 Packaging/manufacturing
- $0.82 Publishing royalties
- $0.80 Retail profit
- $0.90 Distribution
- $1.60 Artists’ royalties
- $1.70 Label profit
- $2.40 Marketing/promotion
- $2.91 Label overhead
- $3.89 Retail overhead
These numbers don’t look that great to me, as an artist. And I believe the reality of the industry is even worse.
The problem is that this set of numbers comes from a selected scenario, not a typical scenario. I’m guessing this is an average or something. Keep in mind that most acts that get ‘signed’ aren’t mega-stars. Perhaps the average makes the typical look a lot better.
EDIT: I have no idea how or why this seems to be the prevailing breakdown of where consumers’ money goes when they buy records.
In addition, t The way I have come to understand it is that the Label keeps the band “in debt” to the label, by spending too much money on their behalf. Also, it is my understanding that one such expense, marketing, is often pooled amongst several bands. So the label often spends all/most of the marketing expenses for many acts on only the few that it believes in most.
It’s hard to find information on this stuff.
Steve Albini wrote an article about the unfair practices of the majors in which he does a case-study of a typical record deal. Be warned, Albini’s article actually takes a few minutes to read, and it actually needs to be read to be understood.
I’m gonna go ahead and paste in the numbers from his article here (It’s long, but that’s the way it is). From Albini:
“There’s no need to skew the figures to make the scenario look bad, since real-life examples more than abound. income is bold and underlined [underlines removed], expenses are not.
Advance: $ 250,000
Manager’s cut: $ 37,500
Legal fees: $ 10,000
Recording Budget: $ 150,000
Producer’s advance: $ 50,000
Studio fee: $ 52,500
Drum Amp, Mic and Phase “Doctors”: $ 3,000
Recording tape: $ 8,000
Equipment rental: $ 5,000
Cartage and Transportation: $ 5,000
Lodgings while in studio: $ 10,000
Catering: $ 3,000
Mastering: $ 10,000
Tape copies, reference CDs, shipping tapes, misc. expenses: $ 2,000
Video budget: $ 30,000
Cameras: $ 8,000
Crew: $ 5,000
Processing and transfers: $ 3,000
Off-line: $ 2,000
On-line editing: $ 3,000
Catering: $ 1,000
Stage and construction: $ 3,000
Copies, couriers, transportation: $ 2,000
Director’s fee: $ 3,000
Album Artwork: $ 5,000
Promotional photo shoot and duplication: $ 2,000
Band fund: $ 15,000
New fancy professional drum kit: $ 5,000
New fancy professional guitars [2]: $ 3,000
New fancy professional guitar amp rigs [2]: $ 4,000
New fancy potato-shaped bass guitar: $ 1,000
New fancy rack of lights bass amp: $ 1,000
Rehearsal space rental: $ 500
Big blowout party for their friends: $ 500
Tour expense [5 weeks]: $ 50,875
Bus: $ 25,000
Crew [3]: $ 7,500
Food and per diems: $ 7,875
Fuel: $ 3,000
Consumable supplies: $ 3,500
Wardrobe: $ 1,000
Promotion: $ 3,000
Tour gross income: $ 50,000
Agent’s cut: $ 7,500
Manager’s cut: $ 7,500
Merchandising advance: $ 20,000
Manager’s cut: $ 3,000
Lawyer’s fee: $ 1,000
Publishing advance: $ 20,000
Manager’s cut: $ 3,000
Lawyer’s fee: $ 1,000
Record sales: 250,000 @ $12 =
$3,000,000
Gross retail revenue Royalty: [13% of 90% of retail]:
$ 351,000
Less advance: $ 250,000
Producer’s points: [3% less $50,000 advance]:
$ 40,000
Promotional budget: $ 25,000
Recoupable buyout from previous label: $ 50,000
Net royalty: $ -14,000
Record company income:
Record wholesale price: $6.50 x 250,000 =
$1,625,000 gross income
Artist Royalties: $ 351,000
Deficit from royalties: $ 14,000
Manufacturing, packaging and distribution: @ $2.20 per record: $ 550,000
Gross profit: $ 7l0,000
The Balance Sheet: This is how much each player got paid at the end of the game.
Record company: $ 710,000
Producer: $ 90,000
Manager: $ 51,000
Studio: $ 52,500
Previous label: $ 50,000
Agent: $ 7,500
Lawyer: $ 12,000
Band member net income each: $ 4,031.25
The band is now 1/4 of the way through its contract, has made the music industry more than 3 million dollars richer, but is in the hole $14,000 on royalties. The band members have each earned about 1/3 as much as they would working at a 7-11, but they got to ride in a tour bus for a month. The next album will be about the same, except that the record company will insist they spend more time and money on it. Since the previous one never “recouped,” the band will have no leverage, and will oblige. The next tour will be about the same, except the merchandising advance will have already been paid, and the band, strangely enough, won’t have earned any royalties from their T-shirts yet. Maybe the T-shirt guys have figured out how to count money like record company guys. Some of your friends are probably already this fucked. “
Interested in how Digital is changing the Film Distribution landscape?
So was everyone who attended Power to the Pixel.
Those who went had to shell out £35 (as of today, that’s $73US).
But you can watch all the talks and panel discussion for free!
Interesting stuff. Arin Crumley has it all up over on his new site, arincrumley.com
Got some time to fill with passive digestion of educational video content about all things digital-distribution-of-independent-film? Pull up a chair!

I’ve been thinking about this for a while.
Practically everything we do online is not only not private…

But Also…
Practically everything we do online is potentially permanent.

The stuff that we post to the Web using Standards like HTML can be cached. And the items we upload to a company’s server are, well, on their server, so we really don’t have control over what happens to them.
I imagine a scenario in which a presidental candidate is asked by a member of the press:
“Isn’t it true that when you were 20 years old, you did a strip tease to a Britney Spears song in your bedroom, recorded it with a video camera, and posted it to the Web?”
Next time you’re poking around on the Web, and you find yourself peering into someone’s bedroom, or reading a very personal blog entry written by some young stranger, think to yourself:
How could this effect this individual’s standing in the future world? What information is this individual giving away that he or she might regret later?

BETTER YET,
Ask yourself:
How will our culture be effected by behavior like this? How will our expectations of one another change once all this publicizing of traditionally more intimate behavior makes its mark on us?
“Andrew, didn’t you write, back in 2007, a blog entry about something you were calling ‘The Age of Irreversible Statements’ and in that blog entry, didn’t you talk about a hypothetical strip tease, and link to a real one?”
Yes. And I can’t take it back. Even if I delete this post, it’s not necessarily gone. It’s out of my control.
This isn’t an ‘Orwellian’ vision. It’s not ‘Orwellian’ because this isn’t about top-down surveillence. It’s about what we call ‘Public’ growing in new ways, just as what we call ‘Ourselves’ or ‘Our Community’ is growing in new ways. And it’s not a vision, because it’s already happened. It’s continuing to happen right now.
more soon.
MySpace and Google Join Forces to Launch Open Platform for Social Application Development
RELEASE
I’m hoping that the move toward this common-API approach will put the various companies at ease a little with the idea of not having a monopoly on the users’ time and eyeballs. I’d like to think that we’re headed toward a world in which some of the useful data about end-users, that these services normally keep locked away, will start to become more available to everyone. I wonder why that sounds like such an outrageous idea.
Anyhoo, slightly open is better than totally closed. Halfway open is great compared to what we’ve had. OK. So where’s the MySpace widgets for WordPress. Let me know. I’ll be waiting.
Some companies on-board with OpenSocial:
Engage.com, Friendster, hi5, Hyves, imeem, LinkedIn, Ning, Oracle, orkut, Plaxo, Salesforce.com, Six Apart, Tianji, Viadeo, and XING.

I wonder how English Professors feel about all these things.
“What’s your MySpace? Thanks for the add! [and so on]“
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