The case against Kim Dotcom, finally revealed | Ars Technica

Feds lay it all out: Megaupload made $150+ million, and Dotcom must stand trial.

The government’s 191-page “Summary of Evidence” also details the stunning sums that Dotcom and his colleagues made running their site. Dotcom, who owned 68 percent of Megaupload and all of sister site Megavideo, made more than $42 million in calendar year 2010. CTO Mathias Ortmann, who owned 25 percent share of Megaupload, made more than $9 million that same year; designer Julius Bencko (2.5 percent) made more than $1 million, and programmer Bram Van Der Kolk (also 2.5 percent) made more than $2 million. Chief Marketing Officer Finn Batato, who was not a shareholder, made $400,000. And no perk was too excessive: the company spent $616,000 renting Mediterranean yachts.

READ THE FULL STORY AT ARS TECHNICA:
http://arstechnica.com/tech-policy/2013/12/us-unveils-the-case-against-kim-dotcom-revealing-e-mails-and-financial-data/

The Failure of the DMCA Notice and Takedown System | CPIP

Section 512 of the Digital Millennium Copyright Act will be turning 15 years old soon, and it’s showing its age. Its design belongs to a different era. Like a 15-year-old automobile, it no longer runs as well as it used to. It can’t keep up with the newer, faster vehicles on the road. Its users are beginning to look for alternative forms of transportation. Pieces of it have been wearing down over time, and ultimately something is going to break that outweighs the cost of replacement.

That time may be now: the notice-and-takedown provision of Section 512 is straining under the weight of a blizzard of notices, as copyright owners struggle to abate the availability of infringing copies of their most highly valued works. The tool is no longer up to the task. Mainstream copyright owners now send takedown notices for more than 6.5 million infringing files, on over 30,000 sites, each month. Printing out the list of sites for which Google receives takedown requests in just one week runs to 393 pages. And that just counts the notices sent to Google; duplicates of many of those notices are sent to the site hosts and to other search engines. For example, over a six-month period ending in August, the member companies of the Motion Picture Association of America sent takedown notices for 11,996,291 files to search engines, but sent even more notices—for 13,238,860 files—directly to site operators. (See chart below.)

The problem is that notice-and-takedown has been pressed into service in a role for which it was never intended. Section 512 was originally designed as an emergency stopgap measure, to be used in isolated instances to remove infringing files from the Internet just long enough to allow a copyright owner to get into court. That design reflected the concerns of its time. In 1998, the dawn of widespread public use of the Internet, there was considerable anxiety about how the law would react to the growing problem of online infringement. Online services worried that they might be held directly liable as publishers for infringing copies of works uploaded by users, despite lacking any knowledge of those copies. Section 512 addressed these concerns by giving service providers a safe harbor to protect them from liability for unknowingly hosting or linking to infringing material.

READ THE FULL STORY AT CPIP:
http://cpip.gmu.edu/2013/12/05/the-failure-of-the-dmca-notice-and-takedown-system-2/

David Byrne: “Do you really think people are going to keep putting time and effort into this, if no one is making any money?” | Salon

Start the stopwatch for the synchronized swimming rapid response team… David Byrne in Salon:

The musical genius shares his songwriting secrets, opens up his finances and ponders the future of art and the Web

Lots of us believe that musicians, along with other artists, are struck by inspiration and have this emotion which they must express and share. But you argue in your book that it is actually the opposite — that the idea of the songwriter pouring heart, soul and autobiography into his or her music is wrong-headed. “The accepted narrative,” you write, “that the rock and roll singer is driven by desire and demons, and out bursts this amazing, perfectly shaped song that had to be three minutes and 12 seconds. This is the romantic notion of how creative work comes to be, but I think the path of creation is almost 180 degrees from this model.”

READ THE FULL STORY AT SALON:
http://www.salon.com/2013/12/21/david_byrne_do_you_really_think_people_are_going_to_keep_putting_time_and_effort_into_this_if_no_one_is_making_any_money/

The 10 Most Important News Stories of 2013 |CoS

#8 Musicians Declare War on Spotify

Why it matters: Musicians like David Lowery and Damon Krukowski have been questioning the royalty practices of streaming services and online radio for years. When it’s the frontman of the biggest band in the world calling bullshit, though, people start listening. Streaming was supposed to be the next evolution of music consumption, but if the royalty models are really as bad as they’ve been made out to be (and by all accounts, they are), that particular evolutionary branch may be stunted. In the end, that might be for the best: a financial model that doesn’t support new artists will, inevitably, cripple the music industry.

Yorke called companies like Spotify “the last desperate fart of a dying corpse” and said, “What happens next is the important part.” This is where Neil Young and his long in-development PONO music service might have to step in. Set to launch next year, PONO reportedly solves the audio loss issues Beck pointed out, though there hasn’t been much word on pricing models. Still, Yorke remarked that musicians “can build the shit” themselves, and Young’s company may be the first step in a new direction. Either way, the medium listeners absorb music is going to keep changing for everyone involved. –Ben Kaye

READ THE FULL STORY AT CONSEQUENCE OF SOUND:
http://consequenceofsound.net/2013/12/year-in-news-2013/

Pandora loses BMI court battle over music licensing | Circa

Pandora has spent more than a year in legal battles with music publishers over exactly what songs the online radio service has access to.

A federal judge in New York has ruled that Broadcast Music Inc., a performance rights organization, may allow its members to prevent their music from being licensed to Pandora. The Dec. 18 decision means that Pandora may soon lose access to music from publishers like Universal and BMG.

READ THE FULL POST AT CIRCA:
http://cir.ca/news/pandoras-music-licensing-battles

Goldie Blox – SPIN’s 2013 Hall of Shame | SPIN

Goldie Blox sets the new gold standard as the enemy of artists. Spin reports…

Though the rap legends had suggested it was copyright infringement, in a tender letter to the company they mentioned that the late Adam Yauch of the Beastie Boys had a “no advertising” clause in his will. Whether Goldie Blox made a parody or not, really shouldn’t matter. Contriving a viral moment (their CEO has made other controversy-baiting spoofs before) with a riff on a song from a man whose will explicitly asked that his music not be used in commercials is just plain gross.

READ THE FULL STORY AT SPIN:
http://www.spin.com/articles/spin-2013-hall-of-shame/?slide=9

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Graham Henderson: “Of what is and is not broken…”

The Canadian Independent Music Association just completed a study that pegs the average musician’s income in Canada at $7,228. This echoes an earlier study undertaken by Professor Doug Hyatt of Rotman which put the number at $16,491. Income at these absurdly low levels render it virtually impossible to pursue music as a profession. It starts to look and feel more like a hobby. And let me tell you that this is a far cry from the conditions that could be obtained prior to 1999.

The “middle class” for want of a better term is in a state of what appears to be terminal decline. This is a phenomena that has been remarked on and discussed in many fora but rarely as it applies to the creative class. We now live in a world where a very few musicians have become fabulously wealthy, leaving almost everyone else with very little on the table. Was not digital technology supposed to have done EXACTLY to opposite? Successful bands today have become more brand than band, diversifying into luxury goods, film, television and beyond. This is in strident contrast to musicians of the past who would have been horrified beyond imagining to have their art, their political speech, associated with mere products. I knew artists who turned down absolutely fabulous sums rather than shill for an advertisement.

READ THE FULL POST AT MUSIC CANADA:
http://musiccanada.com/newsitem.aspx?scid=65834