Net firms in music pirates deal

Six of the UK's biggest net providers have agreed a plan with the music industry to tackle piracy online, reports the BBC.

"The deal, negotiated by the government, will see hundreds of thousands of letters sent to net users suspected of illegally sharing music.

But the music industry wants people's internet cut off if they ignore repeated warnings, something the web firms say they are not prepared to do.

The six firms are due to be named when the deal is officially confirmed later."

Airport scans for illegal downloads on iPods, mobile phones and laptops

iPods, mobile phones and laptops could be examined by airport customs officials for illegal downloads under strict new counterfeiting measures being considered by G8 governments this week, it is claimed. The Telegraph reports.

"The measures form part of an international agreement aimed at stamping out piracy, but there are fears that individuals who have illegally downloaded songs or video clips on to MP3 players and phones for personal use could also be caught out.

They coincide with plans by the European Parliament for Internet Service Providers to be held liable if their users download illegal content, and in extreme cases, forced to disconnect people who are doing so."

Image from PCWorld

MEPs back contested telecoms plan

European politicians have voted in favour of amendments to telecoms law which campaigners say could be used to curb privacy online and file-sharing.The BBC reports.

"Digital rights groups in Europe have formed a loose coalition to highlight their opposition to the amendments.

But MEPs have denied that the amendments are aimed at throwing file-sharers off the net. MEP Malcolm Harbour, who helped oversee the so-called Telecoms Package, said it was "about improving users' rights".

... But campaigners say one of the amendments - which could allow governments to decide which software can be used on the web - makes it easier to enforce the controversial "three strikes" law which the music industry is keen to use in order to clamp down on file-sharers."

EMI and Infospace Reach Settlement on Ringtone Royalties Lawsuit

EMI has settled its ringtone royalties lawsuit with Infospace reports MocoNews, though the terms were not disclosed.

"It did disclose the settlement in an SEC filing late yesterday. Infospace was sued by the music label in early 2007, to the tune of $100 million for underpaying royalties on using its music for ringtones.

... EMI’s publishing also alleged InfoSpace was selling expressly restricted songs, such as John Lennon’s “Imagine,” and selling ringtones in worldwide markets where it had not been granted license. Since then Infospace has closed down or disposed off its mobile content related businesses."

Letters go to music file-sharers

Virgin Media has sent about 800 letters to customers warning them that they should not be downloading illegal music files via file-sharing sites. The BBC reports.

"It is part of a 10-week campaign it is running in conjunction with the BPI to "educate" users about downloads.

The BPI, the body which represents the UK record industry, told the BBC that "thousands more letters" would be sent.

Its stricter stance on illegal downloaders might result in some ISPs being taken to court, it told BBC News."

EFF attacks foundation of entire RIAA lawsuit campaign

In a filing in the Jammie Thomas file-swapping case in Minnesota, the Electronic Frontier Foundation argues that the entire basis of the RIAA's legal campaign is fatally flawed.

[via ars technica]

Tough stance

The music industry responds to criticisms of their anti-piracy policy.

On 9 June, BBC commentator Bill Thompson wrote a critique of a joint venture between the BPI (British Phonographic Industry) and Virgin Media to write to customers whose net connection may have been used to download unlicensed content.

Here, BPI chief executive Geoff Taylor responds to his comments. ....

[via BBC]

Federal judge sets formula for Internet music royalties

A federal court on Wednesday established a formula for determining the Internet royalties owed to thousands of music composers, writers and publishers by three major online services — Yahoo Inc., AOL and RealNetworks Inc.

Under the formula endorsed by U.S. District Judge William Conner's, AOL owed 2006 fees of $5.95 million and Yahoo owed $6.76 million.

... "This historic decision, for the first time, provides a clear framework for how the online use of musical works should be appropriately valued," said John LoFrumento, ASCAP's chief executive.

[via the Associated Press]

Home copying - burnt into teenage psyche

More than half of young people copy the songs on their hard drives to friends and even more swap CD copies, according to research that reveals the huge challenge home copying poses to a music industry already battling internet file-sharing, reports The Guardian.

"Three decades after cassette decks first allowed people to make free music tapes for friends, a study by the industry group British Music Rights suggests home copying remains just as ingrained in UK culture.

The industry's anti-piracy efforts have largely focused on illegal online music swapping - with estimates suggesting only one in 20 digital downloads is paid for. But the online problem is potentially dwarfed by "offline copying", argues BMR. Its research, carried out by the University of Hertfordshire, suggests that, for 18-24-year-olds, home copying remains more popular than file sharing. Two-thirds of people it surveyed copy five CDs a month from friends."

Chinese Firms Face the Music On Downloads

A Chinese court has agreed to consider copyright-infringement cases against two China-based Internet heavyweights that offer illicit music downloading, potentially opening Chinese companies to hefty damage claims they have previously dodged.

The music-industry lawsuits claim $9 million in damages against and $7.5 million against Sogou, the music-delivery service operated by Sohu.com.

... While the dollar amounts are small because they are based on claims of infringement for just a few hundred songs, this is the highest amount the music industry has sued for in China.

[via The Wall Street Journal]

Courts disagree on legality of uploading

Leaving a copyrighted song where others can get at it with peer-to-peer software doesn't constitute a copyright violation until someone downloads it, a federal judge said in a record industry lawsuit against college students. [via the Associated Press]

"The Boston judge's comments in a Monday pretrial ruling conflict with statements, also made Monday, by a New York federal judge that leaving a copyrighted file accessible could be illegal, even if nobody downloads it.

At issue in both cases is whether people who initially download or own copyrighted music are legally liable if they leave music files accessible to be shared by others. Peer-to-peer sharing services allow computer users to make files on their PCs available to a multitude of other users."

Apple sued over iTunes technology

Apple Inc. was sued Wednesday over allegations its iTunes online music store and iPod music players are illegally using a patented method for distributing digital media over the Internet.

"ZapMedia Services Inc. sued Apple in U.S. District Court for the Eastern District of Texas, accusing the Cupertino-based company of violating two ZapMedia patents.

The patents in question cover a way of sending music and other digital content from servers to multiple media players, a broad description that could also apply to a wide swath of other companies selling digital media and the devices to play it.

ZapMedia applied for the patents in 1999. One was granted in March 2006, the other on Tuesday.

ZapMedia said it met with Apple to discuss licensing, but Apple rebuffed the offer."

[via the Associated Press]

India: Downloading ringtones, playing music in public might be illegal

According to The Economic Times, if you are downloading a Bollywood ring tone on your mobile phone, you might be violating the copyright act; and the Indian Music Industry plans to take action on it.

"Over 13,000 cases of intellectual property right violation, mostly physical music piracy, were registered in the country in the past seven years and more than 200 cases of mobile chip piracy detected in the last two years, says IMI President V J Lazarus.

While mobile phone chips have joined the ranks as an instrument for physical form of piracy, public performance of the music and songs, which generally go unnoticed, also comes under the ambit of the law."

Illegal downloaders 'face UK ban'

People in the UK who go online and illegally download music and films may have their internet access cut under plans the government is considering, reports the BBC.

"A draft consultation Green Paper suggests internet service providers would be required to take action over users who access pirated material.

Under a "three strikes" rule they would receive an e-mail warning, suspension, and then termination of their contract.

... The proposals are part of a Green Paper - a consultation document issued by the government - on the creative industries that is due to be published next week."

The proposal is similar to legislation proposed in France by Nicolas Sarkozy last month.

Warner, Universal take action against Baidu over piracy

Three global record companies have launched legal proceedings against China's top Internet search engine Baidu.com Inc, accusing it of violating copyright by giving access to music files, an international music trade body said.

A court has asked Baidu to remove all links on its music delivery service to copyright-infringing tracks that they own the rights to, theInternational Federation of the Phonographic Industrysaid in a statement.

Separate action is also being taken against Chinese media firm Sohu.com Inc.

Yahoo China also faces proceedings after refusing to comply with a December ruling by the Beijing Higher People's Court which confirmed that the company violated Chinese law by committing mass copyright infringement, IFPI added.

[via The Washington Post]

French plan e-mail warnings for illegal downloads

Legislation allowing the French government to send e-mail warnings to anyone downloading music tracks without paying for them should be passed by the summer, a senior official said on Sunday, according to the FT.

"The measures announced last year by French president Nicolas Sarkozy include a “three-strikes-and-you’re-out” policy for people downloading illegally.

After two warnings, another breach would mean internet service providers would have to block a person’s web access.

The e-mail warnings, which would tell people they had been caught breaking copyright laws, would not only be sent to those involved in large-scale file-sharing, but to each IP [internet protocol] address.

Warner Music withholds content from Nokia

Warner Music Group Corp is withholding its content from Nokia Corp's new music Web site over concerns about illegal downloads, The Wall Street Journal reported on Friday in its online edition, via Reuters.

"Warner has chosen not to sell its music through the Nokia Music Store Web site in part because another Nokia service -- a file-sharing Web site called Mosh -- is being used to distribute copyrighted material, the Journal said, citing sources familiar with the matter.

... Nokia is the first handset maker to move strongly into the content space with services like Mosh, which is designed primarily for mobile usage, even though it can be accessed from a PC."

Music industry wins song-download case

A jury has handed a victory to the music recording industry, which had claimed a Minnesota woman infringed song copyrights by using online media to illegally download and distribute music, according to court documents. Reuters reports.

"In the civil case, a jury in the U.S. District Court of Minnesota on Thursday found that Jammie Thomas infringed copyrighted song recordings, according to documents. The jury awarded damages of $9,250 for each of 24 recordings, or a total of $222,000, according to documents.

The companies included EMI Group's Capitol Records, Sony BMG Music Entertainment, Arista Records, Interscope Records, Warner Bros Records and UMG Recordings.

Media reports described the case as the first such file-sharing lawsuit brought by the music industry to go to trial."

Verizon Still a Bob Marley Provider

According to E! Online, Verizon Wireless started selling Marley ringtones again Friday, less than a week after briefly removing the content from its Website because the late reggae icon's estate threatened to sue for trademark infringement.

Previously:

-- Verizon Drops Marley RIngtones After Lawsuit Threat

-- Bob Marley family says to sue Universal, Verizon

Verizon Drops Marley RIngtones After Lawsuit Threat

Verizon Wireless will drop all Bob Marley ringtones, ringbacks and pictures after being threatened with a trademark infringement lawsuit, representatives for the late reggae star's family said on Thursday. The Huffington Post reports.

"The decision comes in response to a statement last month by the Marley family that it would sue Verizon Wireless and Universal Music Group for using the iconic star's name, likeness and image without permission."

Know Your Rights: Is it illegal to make my own ringtones?

So, is it illegal to make my own ringtones?

... "As long as you're talking about music you've ripped from a CD, go ahead -- no one's trying to stop you. Since making a ringtone doesn't count as a derivative work, you're not infringing any copyrights. Just don't sell or distribute anything, and you should be fine. "

An excerpt from "Know Your Rights", Engadget 's new technology law series (great idea!), written by their own copyright attorney Nilay Patel.

Bob Marley family says to sue Universal, Verizon

The family of late reggae singer Bob Marley said on Thursday they will sue Universal Music Group and Verizon Wireless for using the iconic pop star's name, likeness and image without permission. Reuters.UK reports.

"The offer, announced on Tuesday, said Verizon Wireless customers would be able to purchase ringtones of some of Marley's music exclusively on its service.

"The agreement was entered into without the permission of the Marley Family," said the statement from Fifty Six Hope Road Music Ltd.

... The music company, owned by French media giant Vivendi, said the claims made in the press release were "meritless".

"Specifically, we are offering Bob Marley ringtones through Verizon in accordance with the terms of a long-standing contract between Bob Marley and UMG," Universal Music Group said".

Company helps calculate complex royalties for digital music sales

The music industry - upended by Internet piracy and new forms of digital distribution - now faces another hurdle in the era of iTunes, MP3s and ringtones: how to divvy up income from those sales. The Paramus Post reports.

Some independent record labels are still using Excel spreadsheets to calculate royalties. Not the most efficient method.

Here comes Bob Kohn, the guru of music royalties.

He thinks he has a solution for music royalties in the Digital Age. It's Royalty Share, a Web-based service that he helped start in San Diego."

In their own words: Royalty Share offers record labels, music distributors and music publishers the freedom to pursue new revenue opportunities made possible by digital distribution.

We enable customers to focus on their core businesses while we take care of the increasingly complex, tedious tasks of sales data consolidation and royalty reporting.

Royalty Share combines a state-of-the-art royalty processing platform with world-class customer service. RoyaltyShare's solutions support the complete royalty process from consolidating sales data to processing and distributing royalty statements.

Universal to Test Sales of DRM-Free Music

Universal Music Group is the latest major music label to offer music downloads without copy protection. PC World reports.

"As part of a six-month test to end in January, UMG, a subsidiary of French conglomerate Vivendi Universal SA, will sell a wide range of albums and songs from artists such as 50 Cent, Black Eyed Peas and Sting-- in MP3 format, without DRM (digital rights management) copy protection, the music company confirmed Friday.

In May, rival EMI Group PLC began selling a selection of its music DRM-free through outlets including Apple Inc.'s iTunes Store-- the first company to sell unprotected music that way. Universal, though, does not plan to sell its DRM-free tracks through iTunes. This follows its announcement at the start of July that it will not automatically offer all its music for Apple to sell through iTunes.

DRM technologies are designed to combat piracy, and control the terms on which content downloaded from the Internet can be copied or transferred to other devices. But some industry critics have argued that DRM is complex to implement, can unfairly prevent people from playing music or videos they purchase on any device they want and is downright unpopular with music fans.

As part of its six-month DRM-free test, UMG will offer content in the MP3 format through the Web sites of a number of retailers, including Wal-Mart Stores Inc., Best Buy Co. Inc. and Amazon.com Inc., as well as artist and label-branded Web sites, such as ryan-adams.com and islandrecords.com. Most of the music will be available to these retailers at standard wholesale prices."

US targets Chinese music download rules

The United States is seeking consultations with China over rules on music downloading and cinema rights that appear to discriminate against foreign sound recordings and films, a U.S. trade official said Wednesday. The Associated Press reports.

"... Music from foreign sources needs to undergo content review before being distributed in China. Chinese music doesn't have to face that process," Norton told The Associated Press. "The review delays Chinese Internet providers and Chinese consumers from accessing foreign music."

The same discrimination exists when Chinese consumers seek to download music onto mobile phones, he said. The problem for American music providers is compounded by rules that prevent foreign companies from owning or investing in businesses that distribute music over the Internet in China."

Infospace Responds To EMI’s $100 Million Ringtones Lawsuit

The publishing arm of music label EMI has filed a $100 million lawsuit against Infospace earlier this year, writes MocoNews, alleging that the company and its subsidiaries have been underpaying royalties and selling ringtones for songs to which they hold no licensing rights.

"Infospace has now filed a brief with the court, denying most of the claims from EMI."

US Copyright Office Gives Go-Ahead To Ringtone Licensing

The US Copyright Office has issued a decision (pdf) ruling that ringtones that are excerpts of longer musical works or that are taken from existing sound may be considered original musical works in and of themselves, reports mondaq.

"Ringtones that are merely excerpts of a preexisting sound recording fall squarely within the scope of the statutory license, whereas those that contain additional material may actually be considered original derivative works and therefore outside the scope of the Section 115 license.

We also conclude that if a newly created ringtone is considered a derivative work, and the work has been first distributed with the authorization of the copyright owner, then any person may use the statutory license to make and distribute the musical work in the ringtone. "

Ring Tones and Mobile Phone Downloads are Generating Income for Local Musicians in Africa

While musicians in the West are supported by a highly regulated regime of copyright protection, most African musicians have little chance of seeing any royalties. Now Public reports via digg,

"But a solution to this problem is being pioneered in Botswana. A partnership between mobile phone provider Orange Botswana and Small House Records/Mud Hut Studios, ensures musicians get a slice of the profit pie.

Managing director Solomon Monyame of Small House Records has signed a contract with Orange to share the profits from ring tone and song downloads to mobile phone subscribers.

With more than 76.8 million people currently subscribing to mobile phone services in Africa, and the number growing by about 58 percent each year for the last five years, the potential royalties market for African musicians is vast if this initiative is replicated across the continent.

Bay City Rollers sue over unpaid royalties

The Bay City Rollers are suing their record company for allegedly failing to hand over millions of dollars in unpaid royalties, reports InTheNews.co.uk.

"In the lawsuit filed in the US district court of New York, the 1970s Scottish pop group claim that Arista Records have not paid the right amount for the past 25 years.

Royalties are said to have been withheld from album sales, film rights, merchandise, ringtones and rights to commercials."

Yahoo China Sued For Copyright Infringement

Yahoo China is being sued by music labels including Warner Music Group and Universal for providing links to unlicensed music, reports Reuters via paidContent.org.

"The case was filed in January by 11 companies and seeks damages of 5.5 million yuan ($710,686)."

According to Digital Music News, "229 Chinese and English songs are involved, including ringtones and lyrics".

Cell Phone Ringtones Not Music to Ears of Publisher

EMI Music Publishing has filed a $100 million copyright infringement lawsuit against one of the leading providers of ringtones, reports New York Law Journal, just three months after the U.S. register of copyrights issued a controversial administrative ruling about the licensing of ringtones.

"The EMI suit is the first significant copyright action taken by a music publisher against a ringtone provider.

The administrative ruling found that the royalties paid for the use of music in ringtones should be based on government licensing rates, as is the case with compact discs, rather than current market prices, which are nearly double.

... In the Jan. 11 suit, New York-based EMI Music Publishing alleges that Bellevue, Wash.-based Infospace Inc.and its subsidiaries withheld millions of dollars in unpaid royalties owed as part of a license agreement between them.

... When EMI attempted to audit InfoSpace's books and records, the ringtone provider restricted access to some materials and provided incomplete documentation, the suit alleges.

In addition, some of the songs InfoSpace has sold were restricted from the license agreement, such as John Lennon's "Imagine," the suit said."

Infospace Hit with Ringtone Lawsuit

Infospace has been hit by a US$100 million lawsuit from the music publisher, EMI, reports Cellular News.

"The complaint alleges that InfoSpace and its subsidiaries Moviso and Premium Wireless Services have been underpaying royalties and selling ringtones for songs to which they hold no licensing rights.

The lawsuit also claims that InfoSpace has "engaged in a deliberate effort to frustrate and obstruct the audit rights held by plaintiffs pursuant to license agreements."

SK Telecom Fined For Incompatible MP3 Playing Phone

Mobile South Korean telco SK Telecom fhas been fined for crippling their music download service to only allow songs downloaded from the company's own music store to work on their phones. TechDirt reports.

"The article implies that the phone itself was set up with special DRM that would only play the MP3s from the service, and not other MP3s."

Concern over mobile music-sharing

According to the BBC, children are increasingly swapping music via mobile phones, often without realising they can be breaking the law.

"A survey of almost 1,500 eight to 13-year-olds found almost a third shared music via their mobiles.

Children are using the built-in Bluetooth wireless feature of many phones to swap music - but without the consent of copyright holders.

Mr Hart, co-founder of Intuitive Media, which conducted the survey,, said: "Music sharing on the internet was identified by the industry as one of the biggest threats they've faced in recent years and this research shows that mobile has got the potential to exacerbate those problems".

... Matt Phillips, communications manager for the BPI, which represents the UK music industry, said: "The illegal sharing of music is clearly a concern for the record industry.

He added: "While swapping songs via Bluetooth is a concern for the industry, it hasn't caused the same problems as illegal p2p filesharing as it's copying on a one-to-one, rather than one-to-millions basis.

"Ultimately the way to grow revenues with mobile will be to offer music fans what they want and encourage them to get their music legally."

Dealer to face music over ringtones sale

According to The (Malaysia) Star, A mobile phone dealer who was nabbed on Tuesday in a Mall in PENANG, will be charged in court for selling ringtones illegally.

"The 24-year-old dealer was apprehended during an operation jointly conducted by the Recording Industry Association of Malaysia (RIM) and the state Domestic Trade and Consumers Affairs Ministry enforcement division.

The dealer would be the first person in the country to be charged with the offence. "

U.S. Copyright Register: Ringtones Covered by Existing Licensing

Wired Blogs' Listening Post reports on The Copyright Register's recent decision that ringtones do not constitute derivative works, and as such are covered by Section 115 -- a statute originally written to create a market for the distribution of piano rolls in 1909. And interviews Jessica Litman, professor at the University of Michigan (and author of Digital Copyright) to put this into context.

"One main function of the statute is to allow anyone to record a cover version of any song as long as they pay a standard fee per copy (currently $0.091). This same license now applies to ringtones as well.

... The decision is part of an ongoing battle between the RIAA (record labels) and industry songwriters/publishers. The RIAA wanted to be able to distribute ringtones without securing new licenses from songwriters, who technically own the composition. Songwriters wanted to negotiate a new rate for ringtones. The Copyright Register decided in favor of the RIAA, for the most part, although Litman thinks songwriters could appeal this. ... From a consumer standpoint, not much will change."

Picture left from Jeffrey Benedict's original MP3 ringtones

Hollywood writers, studios spar over digital works

Hollywood's rush to offer programs on the Web, iPods and cell phones may be slowed by growing resistance from writers and actors who want a bigger slice of revenues from digital media. ZDNet reports.

"Compensation for digitally delivered media threatens to be among the more hotly debated topics in contract talks with unions representing writers, actors and directors over the next two years and could hold up some studios' plans, industry experts said.

"There's a lot of confusion out there," Mike McNulty, national director of communications for SAG, told Reuters. "There's a lot of gray. The real crux of the thing is which formula the studios are going to pay under," he said.

... "We're at the earliest stage of seeing the influence and impact of this new media on audiences, advertising, piracy and on our traditional business models," a spokeswoman for the Alliance of Motion Picture and Television Producers trade group, said. "Some of these things are strictly promotional," she said.

But writers argue they should be compensated and that the networks do, in fact, reap advertising dollars from streaming their works online even if they call it promotional. "

... The studios and talent are currently operating under labor contracts that predate the latest technologies and are ambiguous in terms of what pay structures should apply to content delivered beyond television or movie screens."

Compulsory Licenses Cover Ringtones

The Copyright Office has decided that compositions used for ringtones may be subject to a compulsory license.

The decision is a victory for record labels that want to offer ringtone operators the master rights and publishing rights as one package. [Billboard.biz via Unwired.cc]

Apple and mobile firms agree on music royalties

Apple's iTunes and mobile operators including Vodafone on Thursday agreed on royalty rates to pay song writers and music publishers for digital downloads in Britain to partly resolve a dispute. Reuters reports.

Under terms of the deal, Apple Computer Inc. and four mobile operators will pay 8 percent of gross revenue, excluding VAT, for all music sold digitally excluding ringtones. A lower 6.5 percent rate was agreed for non-on-demand services such as streaming.

The deal was announced in a joint statement by the trade group representing record labels, BPI, and MCPS-PRS Alliance, which fixes and collects royalties on behalf of the composers, song writers and music publishers.

Mobile operators O2, France Telecom's Orange and Deutsche Telekom's T-Mobile are also part of the agreement.

Under a previous deal, the law stated that the song writers and publishers must receive 12 percent but for the last four years this had been temporarily reduced to eight percent. Thursday's ruling made that reduction permanent."

Ringtone licensing debate handed off

The RIAA's request to develop a compulsory licensing model for ringtones has been placed in the lap of the U.S. Copyright Office, according to FierceMobile Content.

"A compulsory licensing scheme would simplify things dramatically, eliminating the need to negotiate a license for each ringtone desired."

Related Links:

-- Sony's rev share lawsuit includes ringtones now (FierceMobile Content)

-- Royalty Board to Defer to Copyright Office on Ringtone Licenses (Hollywood Reporter)

-- Ringtones Copyright Issues (Ringtonia)

Class action lawsuit over over ringtone royalties

Elmo Shropshire has joined other performers in a lawsuit against Sony Music over royalties for downloaded music, reports the Associated Press.

"Initially, the acts had complained that Sony was stiffing them on revenue from legal download services like iTunes and Napster.

In the revised suit, filed earlier this month, the bands say Sony also failed to pay appropriate royalties on songs sold as mobile phone ringtones.

... Ringtones — small sections of popular songs that play when a person's phone rings — have been netting the performers about 8.3 cents apiece, out of the $1 to $1.50 that Sony Music gets from each sale. The musicians say they should get 50 to 75 cents.

The three musical acts have asked a federal court in Manhattan to certify the case as a class action covering all Sony artists who signed deals between 1962 and 2002.

The lawsuit claims that ringtones will be a $20 billion industry by the end of 2006."