e-Vents

[ Thursday ]

 

Greed and Piracy

A legal case brought by the recording industry was in the news again today. This one involved Verizon Communications, and its refusal to disclose the names of its Internet service subscribers who are suspected of downloading music files across their network. In the U.S. District Court, the judge ordered Verizon to disclose the names, even though the decision is under appeal.

Ultimately, this order should be stayed, but the fact that it continues is a testament to lobbying efforts of the RIAA and its membership. The RIAA was heavily involved in lobbying for passage of the 1998 Digital Millenium Copyright bill, which eventually was enacted. However, many portions of the law have been viewed as unenforceable and unconstitutional. This latest test might allow stalkers to sue for information on their intended online victims, if Verizon, for example, is ordered to disclose subscriber information.

The real issue with the RIAA, however, is greed. They are simply trying to protect the profits of their cartel. Claiming loss of revenues in compact disc sales due to piracy, they have sought out individuals in order to make examples of them. They seem to be missing the bigger picture.

Part of the decline in CD sales could be linked to the almost $20 (USD) price point. Nevermind that only a small portion of that goes to the artist. With the availability of high speed Internet connections, some independent song writers and singers have offered their products over the Internet at reasonable prices. The artists are also able to keep most of the proceeds for themselves, enabling them to invest in broader marketing. This is the real threat to the record distributors. Rather than embracing the Internet as a new channel of distribution, the RIAA looked for methods of suppressing its use. The RIAA members could have licensed technology such as Napster's to distribute new releases and catalog titles, and perhaps find cost effective ways to accomplish it. Instead, they chose to remain with their inefficient distribution model and protect their payrolls.

Similarly, the movie studios fought the introduction of the VCR and the first sale doctrine. After spending millions fighting video rental stores, the studios woke up one day and decided to participate in the market. Today, some twenty years later, the studios release productions straight to video, and admit that they generate greater profits from the video rental channel than from theatrical distribution. And Jack Valenti has been the mouthpiece for the studios on both sides of the argument. Perhaps the RIAA should hire him, or just review historical events, as a roadmap to their future.


MM [22:21]