Artists Rights Watch – Sunday Jan 27, 2013

Grab the coffee!

Recent Posts:
* Two Simple Facts about Technology and Piracy : iTunes Vs. YouTube
* Kim Dotcom’s “End Of Piracy”, that was easy…
* Obama Inauguration and White House IP Policy via IPEC, Victoria Espinel
* UPDATED: The Real Gangnam Style: Was Google Off a Couple Magnitudes on Earnings Call?
* With Friends Like These: Amazon Advertising Against Illegal Camper Van Beethoven Links While Camper Van Beethoven Gives Amazon Exclusive Content.
* Grammy Award Nominated Black Keys Exploited by… American Express Delta Airlines Card, AT&T, Dish Network, M&M’s (Mars), Nissan and others…

From Around The Web…

COPYHYPE:
* Three Reasons Copyright is Not a Monopoly

THE CYNICAL MUSICIAN:
* Commodities, Monopolies, Remixes and Rights – A Symphony

Copyrighted works are not commodities, nor are the distributors and users of such works able to operate completely independently – they depend on the creators to provide them with works to distribute and use. Thus, the restrictions imposed by copyright are not a monopoly – a distributor or user can still ply his business with regards to other works, the only thing he cannot do is use someone’s work without their permission. This law is simply an extension of the natural control a creator enjoys when he is the sole possessor of his work.

STOP FILE LOCKERS:
* Mega Piracy: It’s just the beginning
* Hotfile terminated by Paypal.
* DigiWeb accepting Payments for Kim Dotcom via Paypal and Credit Card

ILLUSION OF MORE:
* What I’d tell my own kids about piracy. Why scarcity is a good thing.

VOX INDIE:
* Content Leeches-The Dark Underbelly of YouTube’s Content Monetization
* Chronic, Ill-Gotten Gains–Google’s Web of Piracy Profit

Over the past two and a half years I’ve written extensively about Google’s ongoing link to ad piracy profits. Earlier this month USC’s Annenberg Innovation Lab released a report documenting the fact that search giant is at the head of the pack when it comes to monetizing (and subsidizing) online piracy via its ad networks. The relationship between Google and online piracy seems clear as day.

DIGITAL MUSIC NEWS:
* Aimee Mann: “My Record Isn’t on Spotify. Artists Don’t Make Money on Spotify.”
* MEGA Declares War on Pirate-Based Google Advertising…
* In the Last Year, Google Takedown Demands Have Increased 1,300%…

BUZZ FEED:
* Why Does Google Still Reward Content Scraping?

THE INDEPENDENT UK:
* Stream-age kicks: Is Spotify a musician’s friend or foe?

POP UP PIRATES:
* YouTube (and Netflix) Monetize Online Piracy

Google/YouTube will, as always, claim that it’s the rights holder’s job to police YouTube and to request that infringing content be removed.  Of course, in the interim, Google’s happy to make money and Netflix is happy to attract new customers (and make money).

THE HOLLYWOOD REPORTER:
* We’re Kind of Terrified to Search After Sundance’s ‘Google and the World Brain’

NPD GROUP:
* Driving Under The Influence (Deconstructing the “Pirates Buy More Music” Myth)

DIGIDAY:
* 10 Bad Apples of Digital Media

The Thought Leader
They write articles that get published in AdExchanger, Digiday, etc. They sit on all the panels at OMMA, Adtech, etc. Here’s a thought: Stop talking, and do what you say. I’m tired of hearing pitch after pitch about how their company is changing the world with proprietary technology, but when it’s time to put their money where their mouth is, nothing works. Then their reply is, “Well, we’re still in the infancy of this business.” It’s all bullshit, and they know it. But if they can get enough clients on the line and generate enough buzz, some stupid company will acquire them with little to no due diligence.

IRISH TIMES:
* A middleman in the great internet copyright debate (Robert Levine)

PAID CONTENT:
* Amazon opens music store for Apple devices, songs start at 69 cents

GQ:
* Kim Dotcom and the decline of HMV are not unrelated

No matter what you think of Kim Dotcom, or upload sites, it’s impossible to deny that people using sites like Megavideo for illegal downloads is a major (though not the only) reason these people are about to be unemployed. Whether that is Dotcom’s fault or that of its users – half a million signed up for Mega in the first 24 hours – is up to the courts to decide. But Dotcom’s assertions that he is opposed to privacy ring false. He claimed that “because of the business model Hollywood has, they are forcing people into piracy,” before arguing that the answer is a flat fee subscription model like Netflix or Spotify. But that isn’t the site that he has launched. He could have done just that but instead, he has intentionally created a new version of Megaupload, the most intricately designed tool for stealing other people’s hard work for free ever made, and simply made it harder for people to blame him.

TORRENT FREAK:
* Hadopi Plans Large File-Sharing Warning Increase For 2013

JONATHAN TAPLIN:
* Aaron Swartz

Simple math FAIL on YouTube revenue… Good Grief…

Music Technology Policy

According to the Washington Post’s Caitlin Dewey in her reporting about Google’s January 22 Q4 earnings call:

Youtube has become one of the biggest forces behind Google’s growth, said Nikesh Arora, Google’s chief business officer.

Viewers watched an average of 4 billion hours of video a month in 2012. Gangnam Style, the most-watched video of all time, earned $8 million in advertising revenue — or roughly 65 cents a play, Quartz calculates.

So let’s see–the “Gangnam Style” official video has as of a few minutes ago gotten 1,238,957,445 views on YouTube.  This doesn’t count all the unofficial monetized versions of the video which also have a bunch.

So let’s see–$8,000,000 divided by 1,238,957,445–even without doing the math, a simple country lawyer like me can see that it’s not possible for the per-view payment to be anything remotely close to $0.65.  (And given that a single track mp3 download on…

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With Friends Like These: Amazon Advertising Against Illegal Camper Van Beethoven Links While Camper Van Beethoven Gives Amazon Exclusive Content.

For the release of Camper Van Beethoven’s new album we set up various promotional campaigns with various web retailers.  We did a signed edition with Newbury Comics,  we gave iTunes a couple of exclusive tracks to make a bonus edition.  And we also gave Amazon a couple of exclusive tracks for their bonus edition.

Today as we are compiling and labeling our screenshots to see who is advertising on massively infringing sites like Weblagu, against our music we came across Amazon advertising against an illegal download link.  Thanks Amazon.  With friends like these who needs enemies?

Now we know what Amazon is gonna say. “We can not control where our ads end up.”   We know this is not  true because we NEVER see Apple or Coca Cola products on these sites.

And even if that were true are you telling us that online ad networks are the equivalent of Skynet?

(the page was too long I had to cut it into two screenshots.  First shows the amazon advertisement.  The second screenshot show the top of the page with the infringing link).

Screen Shot 2013-01-24 at 11.59.04 AM

Screen Shot 2013-01-24 at 11.57.34 AM

Two Simple Facts about Technology and Piracy : iTunes Vs. YouTube

Fact number one.

Unlike Google’s YouTube, Apple’s Itunes Store does not have a piracy problem, nor does it have an unmanageable issue with DMCA notices. This is often explained that this is because Apple does not allow user generated content from just anyone, therefore there is a barrier to entry that prevents such issues. But this is simply just not true, anyone can upload an album of music to Itunes using any one of the third party aggregation services such as Tunecore or CDbaby. And yet, there are not (as far as we know) hundreds or thousands of DMCA notices and content take downs on Itunes per day, as there are on YouTube. So why is this? In a word, intent.

If Apple, Spotify, Amazon and virtually every other legal and licensed distributor of digital music can put into place, the checks and balances that are capable of managing these rights effectively why is it so hard for Google to do the same YouTube? Think about it.

Fact number two.

YouTube can effectively filter content if it wants to. Since day one, we have never, ever seen any live porn on YouTube. Not a single live link to porn, ever. In debates in various online forums we have often proposed the challenge to anyone to present an active live link to full fledged porn on YouTube. It has NEVER happened. No one has EVER been able to present a live link to an active porn video on YouTube in the six plus years we and our friends have presented the challenge. Talk about a crowd sourcing FAIL.

What these two facts reveal is that rights management online, the protection of copyrights and the enforcement of Intellectual Property require nothing more than the intent and will to do so. But don’t take our word for it, listen to Google’s own Chief Economist Hal A Varian from his book “Information Rules” where he describes “Bitlegging.”

“Bitlegging” can’t be ignored: there’s no doubt that it can be a significant drag on profits.

Bitleggers have the same problem that any other sellers of contraband material have: they have to pet potential customers know how to find them. But if they advertise their location to potential customers, they also advertise their location to law enforcement authorities. In the contraband business it pays to advertise… but not too much.

This puts a natural limit on the size of for-profit illegal activities: the bigger they get, the more likely they are to get caught. Digital piracy can’t be eliminated, any more than any other kind of illegal activity, but it can be kept under control. All that is required is the political will to enforce intellectual property rights.

So Apple, Amazon, Spotify (and hundreds of others) can effectively manage digital distribution without triggering millions of DMCA notices. YouTube can effectively filter porn, and yet the internet is not broken as best as we can tell.

Maybe, just maybe this isn’t so complicated after all. That is unless one has a specific intent and motive from which they perhaps profit from the mass scale aiding of commercial level infringement.

Grammy Award Nominated Black Keys Exploited by… American Express Delta Airlines Card, AT&T, Dish Network, M&M’s (Mars), Nissan and others…

The Black Keys have been very vocal about their opposition to the payment and revenue models of new streaming services like Spotify, but we wonder how the band will feel when seeing their music generating ad revenue for commercial level infringing websites like Filestube, Mp3 Twister, Share Beast and Mp3 Boo all as from a simple Google Search.

We also wonder if any of these brands will be advertising during the Grammy Awards for which the band is nominated for Best Album. These are major brands such as American Express, Delta Airlines, Dish Network, Nissan and M&Ms. All of whom we’ve seen running television advertising campaigns for their products and services.

Here’s a quick look at a random sampling of sites from searching Google. This is despite what might be hundreds or more likely thousands of delisted links from legitimate DMCA notices. Mind Boggling…

American Express Delta Airlines Card on Mp3 Twister
AT&T on Mp3 Twister
Dish Network on Mp3 Twister
M&M’s (Mars) on Share Beast
Nissan on Mp3 Boo
Movie 43 (Relativity Media) on Mp3 Boo
Exposed Webcams on FilesTube

googleblackkeystorrents

Despite the amount of delisted links, presumably to the largest infringers, the pirate bay can still top the search results listed. Also interesting is that the reach of the ad networks seems to go very deep into a long tail of very dispersed infringing sites like Mp3 twister. It appears that as brands and agencies are learning of their ads appearing on infringing and illegal sites, the ads are starting to migrate down stream to perhaps previously less visited sites.

bk_mp3twisterAMEXDELTA

bk_mp3twisterATT

bk_mp3twisterDISH

bk_sharebeastMMS

bk_mp3booNISSAN

bk_mp3booMovie43

What is disturbing about the ad above for Movie 43 on Mp3 Boo is that it is for a film by Relativity Media, a Hollywood film production and distribution company. It’s entirely possible if we looked for this film it may already be leaked and pirated, and if not, most certainly will be within hours on the day it is theatrically released.

bk_filestuneEXPOSEDWEBCAMS

Also of interest in this batch are the porn site ads on FilesTube. Isn’t this some kind of public safety issue that minors under 18 years of age who are visiting these infringing sites to get free music illegally are being exposed to pornographers showing girls who are barely legal themselves at just 18 years old?

Is this really acceptable to our representatives on Capital Hill?

Kim Dotcom’s “End Of Piracy”, that was easy…

In the anticipation of the announcement of the new Mega launch, Pat Pilcher at The New Zealand Herald wrote an article titled “Kim Dotcom on Ending Piracy” in which the journalist listed Mr.Dotcom’s five steps to ending piracy. Pilcher writes,

As ironic as that may sound, Kim Dotcom’s logic is inescapably robust. Here’s what his end to piracy manifesto says:

1. Create great stuff
2. Make it easy to buy
3. Same day worldwide release
4. Fair price
5. Works on any device

Looking at what Kim is saying, the 5 points seem pretty obvious, although each could quickly get bogged down once Hollywood gets involved.

So let’s look at these one by one.

1. Create Great Stuff
Well, that’s a no brainer. The content industries create the most prized and sought after “stuff” in the world including films such as Avatar, The Avengers, and The Dark Night Rises as well as franchises like Iron Man, Transformers, Harry Potter and others. Music artists include the likes of Adele, The Black Keys, Taylor Swift, The Beatles and countless others. Making great stuff has never been a problem.

2. Make It Easy To Buy
Another no brainer. Perhaps a decade plus ago this might have been an argument, but not today. There are over 500 legal and licensed music services alone. For the film industry there are services like Netflix, Vudu and Cinemanow as well as other direct to home video on demand providers that give consumers more access to more content across more platforms than at any time in history.

3. Same Day World Wide Release
For music this is more less the standard now and is also more and more common for feature film releases as well. This is a common practice for the largest and most anticipated releases of music and films, the “stuff” that is the most aggressively pirated. For smaller indie releases this may not always be possible but than again I’m not sure that the problem we are combating is in Nigeria on indie rock albums and movies that are more or less film festival darlings.

4. Fair price
Done. Netflix is $7.99 a month for unlimited access to it’s entire library of films and tv shows. Spotify is $9.99 for unlimited access to it’s entire library which consist of probably 95% of every known recording in print. Add to this the cost of a song download is 99 cents. Less than the cost of a candy bar. Renting a movie from a video on demand service ranges from 3.99 to 5.99. Price is no longer an issue and has not been for years.

5. Works on Any Device
Music is DRM free and has been for at least half a decade. Streaming Services such as Netflix and Spotify are also available on every major platform including not only Mac and PC computers, but also mobile devices such as smart phones and tablets by a variety of manufacturers. Additionally most new video game consoles and blu-ray players also include many of these same apps.

So there you have it, the end of piracy. Even Pat Pilcher at The New Zealand Herald agrees a referring to a similar response from the New Zealand record industry. He writes,

Well there it is, RIANZ’s response in full. I can’t argue with much that they’ve said, as they’ve pretty much complied with most of Kim’s 5 points.

So Kim Dotcom’s five suggestions have been fulfilled and yet, I don’t think we’ll see an end to piracy anytime soon. There is still one thing piracy offers that legal, licensed and legitimate services do not, and that is compensation to the artists, musicians, filmmakers and creators which requires that consumers actually do pay the fair price asked.

It’s all pretty simple and by Kim Dotcom’s own suggestions and admission it’s pretty clear where the problem is from here on out, and it’s not in his five suggestions…

And, of course, let us not forget this classic… Kim Dotcom Parody Video Appears on YouTube

Obama Inauguration and White House IP Policy via IPEC, Victoria Espinel

As we’ve written before much of the big internet, anti-copyright blogosphere seems to live in a persistent state of denial regarding The Copyright Policy Reality Gap. We applaud not only President Obama’s support for better protection of Copyright and IP, but also Vice President Biden and we look forward to the next four years of progress for creators rights.

“What’s more, we’re going to aggressively protect our intellectual property.  Our single greatest asset is the innovation and the ingenuity and creativity of the American people.  It is essential to our prosperity and it will only become more so in this century.  But it’s only a competitive advantage if our companies know that someone else can’t just steal that idea and duplicate it with cheaper inputs and labor. ” – President Barack Obama

“…piracy is theft. Clean and simple. It’s smash and grab. It ain’t no different than smashing a window at Tiffany’s and grabbing [merchandise].” – Vice President Joe Biden

In his first term President Obama appointed Victoria Espinel to the position of US Intellectual Property Enforcement Coordinator, which was created during the Bush administration in 2008. Intellectual Property Enforcement is a bi-partisan issue that reaches across all sectors of the United States economic interest.

Intellectual property are the ideas behind inventions, the artistry that goes into books and music, and the logos of companies whose brands we have come to trust.   My job is to help protect the ideas and creativity of the American public.  One of the reasons that I care about this is because I believe it is enormously important that the United States remain a global leader in these forms of innovation – and part of how we do that is by appropriately protecting our intellectual property.  Our intellectual property represents the hard work, creativity, resourcefulness, investment and ingenuity of the American public.  Infringement of intellectual property can hurt our economy and can undermine U.S. jobs.

To learn more about the work being done, you can go here:

http://www.whitehouse.gov/omb/intellectualproperty/spotlight

Artists, photographers, authors, illustrators, filmmakers and creators of all types who rely upon the protection of their copyrights and intellectual property are encouraged to also express their gratitude and appreciation to one of our best and dedicated champions on Capital Hill.

We encourage and suggest that all creators email their support of the great work done by Victoria Espinel and the Office of the U.S. Intellectual Property Enforcement Coordinator at:

intellectualproperty@omb.eop.gov

Artists Rights Watch – Sunday Jan 20, 2013

Grab the coffee!

Recent Posts:
* Well this is Embarrassing, a Tunecore Ad on 4Shared…
* Don’t Get IRFA’d: Westergren’s Fake “Tour Support”
* Golden Globe Winner Adele Exploited by American Express, AT&T, British Airways, Target and Nissan

From Around The Web:

COPYRIGHT ALLIANCE:
* The Silver Lining of the SOPA Debate

ADLAND:
* Youtube and Google have money problems

GRAPHIC LEFT OVERS:
* Creatives Stunning Revolt Against Big Bad Business

As best I can determine, none of the creators of these images were asked to participate in a program that paid them peanuts (a one time payment of $12) and gives away their work hundreds of thousands of times. This is a great deal for Google and its users and a complete disaster for the photographers who participate against their will.

“D-Day” (Deactivation Day) is set for February 2nd and a growing number of contributors are pledging to deactivate their portfolios or pull large numbers of images until the one million image mark is met.

MICROSTOCK POSTS:
* Photographers plan to remove images from iStockphoto

THE CURTIS AGENCY:
* More Horror Stories from the Digital Book Bazaar

I have often written that piracy is the biggest threat to the e-book business. (visit Pirate Central). This is a good instance why. – Richard Curtis

DIGITAL MUSIC NEWS:
* Study: A Majority of Americans Would Support Moderate Piracy Enforcement…

MEDIABISTRO:
* How to Stop Piracy: Carnegie Mellon Professor Michael Smith at DBW

“The shutdown of Megaupload caused a statistically significant increase in digital sales,” he said, comparing numbers between countries with high Megaupload usage to countries with low Megaupload usage.

LAS VEGAS REVIEW JOURNAL:
* At adult expo, fans hunt autographs while pros battle piracy

PHILSTAR.COM:
* TFC Japan all-out in its anti-piracy campaign

“We have an office here that provides em- ployment as it serves the community it is in. We are grateful that the new anti-piracy laws in Japan recognize the ‘sensur- round’ value of the busi- ness that we bring and the empowering impact of the content that we deliver to our target audience,” says Olives.

“There are naysayers who said that piracy is an unwinnable war,” narrates Lopez. “But we believed that piracy should be treated like a disease that needs to be eliminated. You always start effective disease preven- tion through mass information. People need to know what the disease is and what it does. And you need partners who share the same faith in the cause. We found one in OMB chairman Ronnie Ricketts.”

SE TIMES.COM:
* Balkans need better intellectual property protection

“Potential investors are not much interested to invest in a country where intellectual rights are not protected,” Blagojevic said, adding that infringement of these rights has caused substantial losses to Serbia’s economy.

Citing International Data Corporation statistics, Blagojevic said the value of pirated software in Serbia in 2011 was estimated at nearly 87 million euros.

“If the piracy rate would be dropped 10 percent, the state budget revenues could increase $20 million [14.9 million euros] and some 10,000 jobs could be opened, primarily in the IT industry,” Blagojevic said.

AD AGE:
* If Pandora Can’t Monetize Mobile, Can Anyone?

MUSIC TECH POLICY:
* What’s all this then? Google’s “Ad Cops” Are Missing the Point
* How the Rate Court Cottage Industry is Leading to the Destruction of Collective Licensing
* Brand Sponsored Piracy and Award Shows: British Airways Delivers the ultimate insult to Adele

TECH CRUNCH:
* Keen On… Incubus: Limousines, Feeling Dirty and Being Kicked In The Balls (TCTV)

HYPEBOT:
* Ted Cohen On Music Tech And The Music Industry [INTERVIEW]

Do you still favor subscription over advertising-based music services?

Yes, I do. I don’t think that the advertising model so far has proved to be sustainable. I think that we have undervalued subscription. I am paying $150 a month for cable. I watch 20 or 30 hours of TV a week. I probably listen to 50 to 60 hours of music a week. I’d argue with you that music is worth more than $10 a month subscription service.

The labels were so concerned about (piracy)—and I was there at the time—that we had to come up with a price that was just a little bit more than free to convince people that they should pay. So far, we have not been able to raise the price. I think that music is worth at least $20 or $25 a month.

THE PRECURSOR:
* The Google Lobby Defines Big Internet’s Policy Agenda

READ WRITE:
* Is Kim Dotcom’s New Site, Mega, The Wild West Of Piracy?

UPDATE FROM THE CES “PRO-ARTIST” PANEL:

CES Panel Moderator and CNET writer Declan McCullagh discloses artists and creators representatives were not actually invited despite CES claiming they were. As we reported, the panel was comprised of anti-artist and anti-copyright publicly acknowledged Google paid shills.

MARIA BUSTILLOS:
* Yes and No (Lessig, Swartz and Society)

Here it comes again!

Music Technology Policy

Not surprisingly, Tim Westergren is rallying the troops at the Consumer Electronics Show–the locus of those just like him who want to enrich themselves from commoditizing music.   Remember, Westergren is the founder and public face of Pandora–and has been cashing in to the tune of $1,000,000 a month as he sells off his founders stock in the public markets.

So now the LA Times is reporting that Westergren is offering the Web 2.0 version of “tour support”:

[Westergren] talked about Internet radio as a means to generate income for performing artists (who don’t get paid at all by over-the-air stations) and insights. In particular, he touted Pandora’s ability to help artists figure out where to tour and promote their live shows to a receptive audience.

The key, Westergren said, is in the feedback Pandora users give on songs. The site allows listeners to give a thumbs up to songs they’d…

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Golden Globe Winner Adele Exploited by American Express, AT&T, British Airways, Target and Nissan

On Sunday January 13th, Adele won the Golden Globe for the Best Song In a Motion Picture for her song “Skyfall” in the latest James Bond film of the same name. So we thought we’d take a look and see which brands are advertising on both the Golden Globes Awards Show and also on the pirate sites giving away the song that had just won the award.

It’s interesting to note who doesn’t show up on pirate sites as well. For example we’ve seen no ads by L’Oreal (as yet) on pirate sites. L’Oreal had a very strong presence running ads during the Golden Globes, as did Target (who unfortunately also shows up frequently on pirate sites).

Here’s what we found in just a few minutes… this is like shooting fish in a barrel. Who will advertise on the Academy Awards and Grammys who is also funding piracy? We wonder…

AdeleTargetMp3Ape

AdeleAT&T4shared

adeleamex4shared

adeleBristishAirmp3crow

AdeleKATbritAir

AdeleNissonmp3take

British Airways is interesting in this batch. Adele is British. James Bond is British. Have to wonder how smart these ad networks are getting in their targeting of consumers based on interests and other relational values.