Stealing is Good for You Says CCIA and GAO: A match made in heaven

More Silicon Valley nonsense. Essentially the CCIA asserts that stolen goods don’t harm the economy because the money eventually gets spent somewhere… can’t beat logic like that.

Music Technology Policy

Washington lobbyist Matt Schruers, who works for the Computer & Communications Industry Association, is floating a paper released by the Government Accountability Office (“Intellectual Property: Observations on Efforts to Quantify the Economic Effects of Counterfeit and Pirated Goods” (GAO-10-423)).

So you get the context, the Computer & Communications Industry Association is a very well funded lobby shop in Washington that is (was?) one of the big backers of the Internet Radio Fairness Act through its membership in the Internet Radio Fairness Coalition and is prominently mentioned in the Google Shill List.  I fully expect them to be major opponents of Ranking Member Mel Watt’s performance rights legislation that could be introduced as soon as next week.  The CCIA also funds a variety of studies that try to tell us things like stealing is good and the movie business is a “fair use industry” whatever that means.

The GAO…

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FOIA Request Shows That GAO Is Still Stonewalling on Sources for “Stealing is Good” Report

Essential reading in response to the current attack on creators rights. So WHO exactly is going to take responsibility for this nonsense?

Music Technology Policy

[This post appeared earlier in 2011–but given the rogue sites debate that demonstrates just how much money is being made from online theft, understanding who influenced this GAO “report” that found that “stealing is good” is even more necessary.]

Some of you may remember the report by the Government Accountability Office that studied the problem of online theft of artists’ work and discovered that no one was able to prove anything and that everyone failed to take into account the positive effects on the economy of theft–in other words, stealing is good.

The report, specifically the April 2010 Government Accountability Office publication “Intellectual Property: Observations on Efforts to Quantify the Economic Effects of Counterfeit and Pirated Goods” (GAO-10-423) was required under by the PRO-IP Act (P.L. 110-403), specifically Section 501(a) of the Act directed the undertaking of a “a study to help determine how the Federal Government could…

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Why Spotify’s Piracy Study Isn’t Cause for Celebration | SPIN | Newswire

Report shows promising signs, but only in the Netherlands…

…According to a Spotify spokesperson, the company doesn’t break down user numbers by individual country, but has 6 million paying subscribers and 24 million users worldwide…

…The report follows news that music sales increased greatly in Sweden, Spotify’s home country, corresponding with the service’s growing popularity there. Which is great news across the pond, but which doesn’t necessarily scale to America’s humungous market. The Netherlands is a country of under 17 million people with 6.8 million residential broadband connections versus the United State’s 313 million population and 82.4 million broadband users…

READ THE FULL STORY AT SPIN.COM:
http://www.spin.com/articles/spotify-piracy-study-festivals-thom-yorke/

Aimee Mann Exploited by Russian Brides, Wells Fargo Bank and Nationwide Insurance

In light of current events we’re re-running this post.

The Trichordist

When an artist signs a contract with a record label and publishing company there is a customary clause that governs how the artists music can be used in association with brands, marketing and the context of commercial placements including films and television shows. This provision grants the artist authority and control over how they are represented to the world and often coincides with the artists personal values (such as political campaign uses).  These concepts track the laws against misappropriation of the artist’s right of publicity and laws against falsely implied endorsements.  Not to mention the moral rights of artists.

The online exploitation of artists work, beyond the obvious illegal distribution of their work without permission or compensation now extends into brands leveraging the appeal of the artist to promote their product or service (like banking or insurance). In the examples below both Wells Fargo Bank and Nationwide Insurance are specifically benefiting…

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This is What Innovation Looks Like!

A small random sampling of what Innovation and Expression of Free Speech looks like. This post could easily go for miles so please forgive our small sampling and omissions in our illustration of the innovative work of musicians and songwriters.

“Dark Side Of The Moon” – Pink Floyd
“Nevermind” – Nirvana
“OK Computer” – Radiohead
“Straight Outta Compton” – NWA
“Hotel California” – The Eagles
“The Blue Print” – Jay-Z
“Andy Wahol” – The Velvet Underground & Nico
“Sergent Pepper” – The Beatles
“Pet Sounds” – The Beach Boys
“Kinda Blue” – Miles Davis
“Appetite For Destruction” – Guns & Roses
“Raising Hell” – Run DMC
“Paul’s Boutique” – The Beatie Boys
“Play” – Moby
“Led Zeppelin IV” – Led Zeppelin
“The Chronic” – Dr. Dre
“1999” – Prince
“Rated R” – Queens Of The Stone Age
“Pretty Hate Machine” – Nine Inch Nails
“The Doors” – The Doors
“Nevermind The Bollocks Here’s The Sex Pistols” – The Sex Pistols
“The Joshua Tree” – U2
“Born To Run” – Bruce Springsteen
“Thriller” – Michael Jackson
“Tubular Bells” – Mike Oldfield
“Are You Experienced” – Jimi Hendrix
“College Dropout” – Kanye West
“Remain In Light” – The Talking Heads
“Highway To Hell” – ACDC
“Kill Um All” – Metallica
“Mothership Connection” – Parliment
“The Clash” – The Clash
“Goodby Yellow Brick Road” – Elton John
“Imagine” – John Lennon
“Rain Dogs” – Tom Waits
“Loveless” – My Bloody Valentine
“Day Dream Nation” – Sonic Youth

And the list could go on and on and on…

Aimee Mann Could Score Millions in Massive Digital Royalty Lawsuit | SPIN | Newswire

Aimee Mann has filed a big lawsuit against a little-known company with serious clout in the digital music business. As the Hollywood Reporter points out, the singer-songwriter has slapped MediaNet, prevously known as MusicNet, with a copyright-infringement lawsuit seeking $18 million in damages. Never heard of MediaNet? That just demonstrates how complicated the music industry has become in the streaming era.

READ THE FULL STORY AT SPIN.COM:
http://www.spin.com/articles/aimee-mann-medianet-copyright-lawsuit/

But This Time We Mean It… Welcome To The Ad Tech Time Machine…

Welcome to the Interactive Advertising Time Machine… set the dial for 2010

“The Interactive Advertising Bureau (IAB) has pledged to work with content producers to make sure that ads don’t inadvertently end up on sites peddling unauthorized copyrighted material.”

That was back in 2010 when NPR aired the story, “Feeding Pirates: When Legit Companies Advertise On Shady Sites.” That’s right, 2010 when filmmaker Ellen Seidler brought the issue to light when she documented the piracy around the release of her indie film “And Then Came Lola.” Highly recommended reading is Ellen’s highly detailed blog, PopUpPirates.

Ok, so maybe not far enough back for you? Set your Interactive Advertising Time Machine to the year 2007...

Here’s  the case of easydownloadcenter.com which found Google caught red handed actually helping the site improve it’s SEO to maximize advertising revenue. This as reported by DailyTech at the time:

“The two men said in sworn statements that Google offered them credit as an easy start to advertise on Google’s search engine, and that the search company also suggested ad keywords such as “bootleg movie download,” “pirated,” and “download harry potter movie.” According to the report, Google received $809,000 for its advertisements.”

And this was Google’s response at the time (arguably the biggest member of the IAB):

“Google declined to comment on the specific clash over its ads, but did say that it is working on ways to screen out ads that violate the company’s policies.

A spokesman for Sony Pictures said, “Discussions with Google have been ongoing for a while, and there’s hope it can result in a mutually satisfactory arrangement whereby Google will not give support to pirate sites.”

Read that again. “Discussions with Google have been ongoing for a while,” that was in 2007 for activity that dates back to 2003.

So please forgive us if we are less than optimistic over the latest so-called “Best Practices” announced by the IAB. This is not a new or unknown issue and what’s worse is that actual knowledge by Google and other members of the IAB dates back at least to 2003, a decade ago.

Think we’re biased? Ok, fair enough but DigiDay calls the latest appeasement “Toothless” and it is a trade publication that reports on internet advertising that is owned by The Economist:

There are also plenty of built-in outs. The networks, for instance, can keep ads running on sites engaging in piracy if those sites have “substantial non-infringing uses.” Also, the agreement lets networks simply remove ads from pages engaging in piracy, while leaving ads running on the rest of the site. The agreement places the onus on the rights holder to notify the networks about pirated content, not requiring the networks to monitor the content themselves. The agreement “cannot, be used in any way as the basis for any legal liability.” The agreement excludes ad servers and ad exchanges.

The agreement may not be not much of an agreement at all.

Yeah, that’s pretty much what we think too. So, what does the creative community have to do to protect itself from the blatant exploitation of its products and labor from internet robber barons? Stay tuned…

YOU MAY ALSO BE INTERESTED IN READING:

The Ad Network Transparency Conspiracy

Rat Farming: How The Interactive Advertising Bureau’s “Best Practices” Incentivizes Piracy.

There is a famous story about the French Colonial authorities in Vietnam trying to reduce the rat population in Hanoi. They offered a bounty for each rat pelt turned into the colonial authorities. However instead of reducing the rat population it exploded. Why? The vietnamese did what any logical group of people would do when faced with such a financial incentive. They started farming rats!

Anytime you give people an financial incentive to do something they will do it. This is the case with Ad Supported Piracy. If Ad Networks don’t screen the websites on which they publish their ads the websites will do anything to generate page views to receive more revenue. One of the easiest ways to generate pageviews is to host popular infringing content.

Faced with this problem the White House tried to broker a deal with the Interactive Advertising Bureau. Recently they announced a “best practices” intended to address the problem of Ad Supported Piracy. Unfortunately The White House despite their best intentions was totally duped on this. As Bill Rosenblatt has so clearly spelled out in his Copyright and Technology Blog, the best practices will for many reasons NOT make the situation better:

So how will compliance be enforced? Consider this: the companies that have signed on to these guidelines are 24/7 Media, Adtegrity, AOL, Condé Nast, Google, Microsoft, SpotXchange, and Yahoo!. These companies have agreed to have the Internet (Interactive) Advertising Bureau (IAB, the trade association for internet advertising) monitor them for compliance. The largest six of these eight companies have seats on the IAB board. In other words, this is rather like foxes agreeing to be monitored by the American Fox Association for compliance with henhouse guarding guidelines.

I’ve now had some time to dig into this best “practices” document and here are my observations:

At best it attempts to legitimize the illegal status quo whereby companies Google and AOL “try” not to advertise on bad sites.

At worst it creates a DMCA whack-a-mole like process whereby individual creators and rights holders assume the burden of telling the online advertising networks exactly who are their bad (as in criminal) customers. Further it then seems to creates a new Kafkaesque process whereby the creator would (among other things) have to learn to use highly specialized packet logging and data tracing tools to even file a complaint. I quote from the document:

(prove) (ii) that the advertising appearing on the participating website containing the illegitimate activity is provided by the Ad Network. This can be done by providing, for example, a Tamper Data trace and relevant screenshots showing that the participating website is making ad calls to the Ad Network for the advertising reflected in the screenshots.

How many indie musicians do you know that know how to use packet logging and data tracing programs?

Even if you know how to use this software it’s time consuming to find the exact “call” associated with a particular ad. (see screenshot).

Finally the “best practices” allow the copyright infringing website in question to challenge the creators claim setting up a never ending cycle of claim and counterclaim.

This document is so heavily weighted in favor of powerful (Editor note and Obama supporting?) corporate interests it’s absurd.

The creative community should reject this “best practices” for what it is: A tacit legitimization of current illegal and unethical practices.

Fortunately the “best practices” are voluntary and have no legal standing. Further they are a gift to people like me. It should make it even easier to name and shame Fortune 500 brands. Why? I’m sure their online advertising networks will be telling their brands that “the problem is now fixed.” Amusing. I look forward to the next few months.

But what does this have to do with Rat Farming?

The online networks – no let’s face it mostly Google wants to be able to push ads onto any website without the burden of screening any of the sites. Without even screening who they are paying. It’s like they are putting out bowls of yummy pest attracting food out in the garden. What happens if you leave bowls of food around your garden? Eventually you get rats. Lots of rats. It’s rat farming.

The IAB/White House “best practices” absurdly burdens the creators with the task of finding the rats, proving they are rats, DNA testing the rats, packet tracing the food the rats eat and finally getting rid of them but not before the rats initiate an endless loop of claims and counterclaims that it has not been proven definitively that they are always rats.

Once gain this is a SUBSIDY from creators to Silicon Valley and Madison Avenue. We work for free to clean their networks. They make the money.

Here’s a much simpler and effective “best practices”. The IAB should ask their members not to create the incentives in the first place.

After all advertising is THEIR business not ours.

Do they teach packet logging and data tracing at Berklee School of Music?

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Ad Networks Adopt Notice-and-Takedown for Ads on Pirate Sites

Bill Rosenblatt has an insightful piece on the problems with the White House brokered IAB “Best Practices” with online Advertising. We largely agree with Bill and will be following up with our own post.

Copyright and Technology

Eight top Internet advertising networks will participate in a scheme for reducing ads that they place on pirate sites — websites that exist primarily to attract traffic by offering infringing content as well as counterfeit goods.  The Best Practice Guidelines for Ad Networks to Address Piracy and Counterfeiting document, announced on July 15th, specifies a process modeled on the US copyright law’s notice-and-takedown regime, a/k/a DMCA 512: a copyright owner can send an ad network detailed information about websites on which it placed ads and that feature pirated material; then the ad network can decide to remove its ads from the site.

Although this scheme may result in some ads being pulled from obvious pirate sites, it has several major shortcomings.  First of all, because this is a voluntary scheme, ad networks don’t risk legal liability for failing to comply with takedown notices, as they do under the DMCA.

So…

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Tell Us Again “Streaming Is The Future” As Paid Downloads Are Down 2.3 Percent In the US…

Let’s see… maybe streaming services are cannibalizing transactional sales, maybe? Streaming Royalties are small but they can really grow? Really? Let us guess… the good news is streaming is reducing piracy? In Norway and Sweden

According to half-year stats shared by Nielsen Soundscan with Digital Music News this weekend, paid downloads are slumping 2.3 percent at the half-point, meaning the period from January 1st through June 30th.

All of this points to the same issue of streaming services paying too little, while illegally operating, infringing businesses pay absolutely nothing at all. So much for sustainability…

READ THE FULL POST AT DIGITAL MUSIC NEWS:
http://www.digitalmusicnews.com/permalink/2013/20130721downloads