|FROM ||Ruben Safir
|SUBJECT ||Subject: [hangout] Re: [fairuse-discuss] DMCA'd CD Recordings
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Date: Tue, 18 Dec 2001 13:01:15 -0500
From: Ruben Safir
Cc: fairuse-discuss-at-mrbrklyn.com, hangout-at-nylxs.com
Subject: [hangout] Re: [fairuse-discuss] DMCA'd CD Recordings
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On 2001.12.18 12:59:16 -0500 Ruben Safir wrote:
> Universal to release copy-protected CD
> in U.S.
> The world's largest record company will be the first of the major
> labels to release a copy-protected CD in the United States, signaling
> a new chapter in the industry's efforts to stem music piracy.
> When Universal Music Group on Tuesday releases the soundtrack, ``Fast
> & Furious -- More Music,'' consumers won't be able to copy the music
> onto another CD or use their PCs to ``rip'' tracks in digital MP3
> format. The copy-protection technology will also render the disc
> unplayable on Macintosh computers, DVD players and game consoles,
> such as Sony's PlayStation 2. It might not even play in some CD
> The industry says it needs to use the lock-box approach to music to
> prevent consumers, armed with CD-authoring software and hardware and a
> quick Internet connection, from downloading and burning the recording
> industry out of existence.
> CD sales jumped 129 percent this year. Purchases of pre-recorded music
> dropped 2.2 percent in the same period.
> Indeed, blank CDs now outsell recorded discs in Europe and Canada,
> according to one label executive.
> The labels see signs of a similar death spiral in the United
> States. Sales of CD singles are off 41 percent, compared with the same
> time last year, and album sales are effectively flat -- up less than
> 1 percent from a year ago, according to SoundScan, a market research
> firm that tracks retail music sales.
> Some blame the sour economy. Others point to lackluster sales of hotly
> anticipated new releases from artists like Mariah Carey and Macy Gray,
> and the glut of look-alike, sound-alike boy bands.
> The record industry sees the burgeoning popularity of sons-of-Napster
> sites, such as Morpheus and KaZaA and skyrocketing sales of blank CDs,
> and sees its own demise.
> ``Copy protection is certainly not new to the entertainment industry,''
> said Rosen. ``Most movies and video games sold today have some form
> of protection -- musicians are an exception to the case and do not
> enjoy the same protection. It is not surprising, therefore, that the
> recording industry is taking steps to get in tune with the rest of
> the entertainment field.''
> The trick is finding a technology that curbs piracy without incurring
> the wrath of consumers. After a faltering first attempt, BMG said it
> is working to develop a more sophisticated version of copy-protection
> that would allow consumers the right to listen to music on a PC or
> make a limited number of personal copies.
> One approach involves dual-session CDs, with one set of tracks that
> plays in home stereos, and a second, encrypted version of the music
> files wrapped in rights-management technology that limits the number
> of copies a consumer can make.
> Such rules let consumers enjoy music on an array of consumer
> devices -- from PCs to portable players. But it would discourage 15
> high school friends from getting together and pooling their money to
> buy a single music CD and a spindle of blank discs and making dubs
> for everyone in the group -- with a few extras to sell at school.
> ``This is what's truly hurting sales,'' Haussler said. ``This is not
> my compilation of my favorite music. This is having these perfect
> copies forever.''
> The key to consumer acceptance -- as BMG and Sony learned the hard
> way -- is disclosure.
> Warning sticker
> The ``Fast & Furious -- More Music'' CD will come with a sticker
> that notifies the consumer that it is copy-protected and warns about
> possible playback problems. An insert in the jewel case provides a
> toll-free number for consumers and a Web site, where they can get
> more information.
> Universal told retailers that it would honor refunds on all returned
> discs -- even for CDs that have been opened.
> ``We have heard the strong voice of the retail community concerning
> the substantial financial impact that illegal copying of compact
> discs is causing to business'' wrote Jim Weatherson, Universal's
> executive vice president of music and video distribution, in a letter
> to retailers. ``We share in your concerns and, in response, are pleased
> ``Unfortunately, phenomenon like Napster and the ease of `ripping
> and burning' are causing artists and record companies real harm,''
> said Hilary Rosen, head of the Recording Industry Association of
> America. ``The unprecedented amount of music being copied is hurting
> the industry.''
> Universal Music is the most aggressive in its anti-piracy efforts,
> saying that all of its CDs will be copy-protected by mid-2002. The
> other big labels are also experimenting with various technologies. But
> they're waiting to gauge reaction from consumers and retailers before
> introducing such recordings in the United States.
> ``I'm very, very curious to see what happens,'' said Christa Haussler,
> BMG Entertainment's vice president of new technology. ``Because it
> is not clear if it will become truly a usability issue, or if this is
> more of a PR question.''
> BMG's own experiments with Midbar Technology's copy-thwarting Cactus
> Data Shield produced raging backlash in Europe, with consumers
> discs as defective. The German label was forced to issue replacement
> CDs for the new Natalie Imbruglia release, ``White Lilies Island,''
> because the CD didn't play on some CD and DVD players. It has not
> introduced any copy-protected discs in the United States.
> One United Kingdom-based group of consumer activists, the Campaign
> for Digital Rights, staged a month-long protest against Sony Music
> Entertainment after it issued Michael Jackson's new single, ``You Rock
> My World,'' with copy-protection that limited its play to stereos. Sony
> said it limited its copy-protection experiment to a handful of advance
> copies given to radio DJs. But that didn't mute the criticism.
> A small Nashville label, Music City Records, led the experimentation in
> copy-protected CDs, with country music artist Charley Pride's album ``A
> Tribute To Jim Reeves.'' Its introduction last March prompted a
> alleging the label failed to properly disclose it was copy-protected.
> Quiet efforts
> Not all efforts at thwarting music piracy have attracted such
> attention. One of the big five labels claims to have quietly released
> 15 million copy-protected discs in Europe without attracting notice.
> It's not surprising that the labels would experiment in Europe, where
> music piracy is rampant and disclosure laws are less well defined. In
> Germany alone, one survey by market researcher GfK found that blank
> to be the first company to launch a campaign to confront this explosive
> and damaging trend.''
> Retailers, such as TransWorld Entertainment in Albany, N.Y., welcome
> the initiative, and have spent time briefing their sales staff about
> the new technology and possible snafus. It is preparing to ``cheerfully
> refund'' the consumer's purchase price at its 1,000 stores nationwide,
> including the ``Strawberries'' and ``Coconuts'' chains.
> ``They've been testing this in Europe and they're experiencing less
> than a 1 percent return rate from consumers. It really has turned
> out to be nothing,'' said Jerry Kamiler, TransWorld Entertainment's
> division merchandise manger. ``If we get the same results here, as I
> imagine we would, I don't think it's going to manifest itself into a
> consumer problem.''
> Brooklyn Linux Solutions
> http://www.mrbrklyn.com - Consulting
> http://www.brooklynonline.com - For the love of Brooklyn
> http://www.nylxs.com - Leadership Development in Free Software
> http://www.nyfairuse.org - The foundation of Democracy
> http://www2.mrbrklyn.com/resources - Unpublished Archive or stories and
> articles from around the net
> http://www2.mrbrklyn.com/mp3/hooked.mp3 - Spring is coming....
> http://www2.mrbrklyn.com/downtown.html - See the New Downtown
> New Yorkers for Fair Use -
> because it's either fair use or useless....
Brooklyn Linux Solutions
http://www.mrbrklyn.com - Consulting
http://www.brooklynonline.com - For the love of Brooklyn
http://www.nylxs.com - Leadership Development in Free Software
http://www.nyfairuse.org - The foundation of Democracy
http://www2.mrbrklyn.com/resources - Unpublished Archive or stories and
articles from around the net
http://www2.mrbrklyn.com/mp3/hooked.mp3 - Spring is coming....
http://www2.mrbrklyn.com/downtown.html - See the New Downtown Brooklyn....
New Yorker Linux Users Scene
Fair Use -
because it's either fair use or useless....