UPDATE : Pittsburg Post-Gazette Published Piracy Link

See what happens when you call people out on their foolishness?  Things get fixed.

On wednesday we called out The Pittsburgh Post Gazette and their TV critic Rob Owens for instructing readers in how to get bootleg DVDs from an illegal website in Kuala Lumpur ,Malaysia.

As a result they took action.  They removed the offending link and the copyright theft inducing language.

While we applaud the Post-Gazette for taking this action.  It would be super extra nice if they alerted and apologized to their readers for sending them to a site  that appears to be co-located  with various scam and terror sites.  Hopefully none  of the Post-Gazette’s readers  gave this site their credit card numbers or personal information.

And  thank you to our readers who alerted us to this story.  Here is the link to the original post:

https://thetrichordist.wordpress.com/2012/10/24/pittsburg-post-gazette-tv-critic-instructs-readers-in-how-to-get-pirated-copies-of-dvds-oh-and-fund-terrorism/

And then we got this nice letter from Kate Parry Assistant Managing Editor/Special Projects and Features Star Tribune Minneapolis. They also ran this story because they syndicate Owen’s column.

Dear Mr. Lowery,
Thank you very much for taking the time to contact us about the reference in the Rob Owen tv column to the piracy website. Mike Klingensmith forwarded your email. We’ve removed that paragraph from the column. Owen is a writer for the newspaper in Pittsburgh and his column comes to us through a syndication service and feeds into the website. We’ll keep an eye on his columns in the future to see if any other references show up. I’d welcome you to contact us any time you see something that appears to be amiss on our website.

Sincerely,

Kate Parry
Assistant Managing Editor/Special Projects and Features
Star Tribune
Minneapolis

Pittsburg Post-Gazette TV Critic Instructs Readers In How To Get Pirated Copies Of DVD’s…and Fund Terrorism?

You’d think a newspaper writer would understand that the reason  he/she hasn’t got a raise in 10 years is due to content theft.  And you’d think they’d not encourage people to buy pirated material.  You would also think that a respectable company Post Gazette  wouldn’t want to send their readers into the arms of scammers, mobsters and terrorists. Think again.

A reader recently alerted us to a Q & A by Pittsburg Post-Gazette TV critic Rob Owens, in which he points readers to an illegal bootleg DVD site where they can get copies of shows not legally available on DVDs.  He does warn users that the DVDs are of an undetermined quality.

What he doesn’t tell his readers  is that this site is in Kuala Lampur and hosted by the hosting company Piradius.net.  Just search that name and you will find dozens of reports of serious scams and malware coming off this host.  This writer simply describes them as “black hat hosting” and details the many sketchy websites hosted by this company:

http://blog.dynamoo.com/2009/07/piradiusnet-yohostorg-black-hat-hosting.html

This guy claims they have ties to terror groups:

http://tannsteven.blogspot.com/

Seriously!

So yes the reader may actually get a DVD of the entire China Beach Series but it’s highly likely that they will get much more than they bargained for: Malware? Credit Card Fraud? Identity Theft?  And in the process of buying that DVD it’s not beyond the realm of possibility that some of that money ends up supporting terror groups!

This illustrates a point we like to make here at the http://www.trichordist.com.  Many of the illegal sites that trade in stolen content appear to be linked to people committing much more serious crime. They are after all criminals.  And no matter what your trade, it’s always good to diversify. And of course if you’re that morally impaired then a terrorists money is just as good as anyone elses money.  Right?

Content theft has been incorrectly portrayed as innocent teenagers in their bedrooms sharing music and movies.  We understand why the public is confused cause the “innocent teenager” bullshit has been propagated by know-nothing tech bloggers and fake civil libertarians from foundations like EFF who do know better.   In reality the bulk of the traffic in illegal content is really coming off enterprise level sites and oftentimes  these sites are operated by people with direct  ties to very bad people.  Buyer beware indeed!

And by the way….how is what the Post-Gazette published different than the CBS Interactive/CNET case where CBS was found responsible for inducing copyright on its CNET property by instructing readers in how to obtain illegal files from Limewire? This cost CBS a shit load of money.  I doubt the Post-Gazette has the cash to pay the kind of penalty that CBS paid.

Isn’t this column by Rob Owens also inducement?   Doesn’t the Pittsburg Post-Gazette have some exposure?  And now that this column appears to be syndicated to many other papers who rely on the editors at the Post-Gazette to get it right not induce infringement.  Further–since this hosting company is offshore (update: and tied to big league terrorism)  shouldn’t the DOJ and DHS  get involved?

Finally I find it kind of disgusting that the writer reflexively blames recording artists for the non-release of many many TV series DVD packages.  In my experience what is happening with these DVD packages is the TV show’s producers are trying to low ball the musicians, or pay them virtually nothing for these DVD releases.  It’s the show’s producers holding up the releases of these shows not musicians.

Editors Update: HOLY FUCKING SHIT  DOES THIS HOST HAVE TIES TO Al QAEDA?

http://www.infosecisland.com/blogview/15122-Al-Qaedas-New-Digital-Shingle-Al-Fidaa.html

AQ’s New Propaganda Board:

“Al-Fidaa, the newest site in the Al Qaeda webring to spread the usual propaganda. This site popped up last week and I am just getting round to checking it out fully….

….Could we in fact get some digital forensics love on those boxes out there? One also wonders just how many Malay jihadi’s there are out there and how many of them may in fact work for networks like Piradius. I ask this because many a server has been stealthed onto boxes run in those networks and I think from the looks of them, that they are being managed locally, not just hacked.”

http://internet-haganah.com/harchives/006869.html

“That IP address (124.217.252.55) is provided to the Afghan Taliban by Malaysian company piradius.net. Piradius.net has been central to the online activities of al-Qaida and its affiliated organizations for many years.

The following is the most reasonable explanation I can come up with to explain why this is the case:

1. Piradius provides services to jihadi terrorist organizations because at the highest levels of Piradius there is substantial support for the ideology and goals of those terrorist organizations, if not for their methods. This is not the work of some rogue low-level employee, nor is it reasonable to suggest that this behavior is strictly coincidental.”

“We’re Gonna Boycott Your Band” And Other Empty Freehadist Threats- 6 Months Of Campaigning Against Piracy.

The Sleep of reason brings forth monsters… and freehadists.

I remember posting something on Facebook in early January about content theft. something to this effect: “despite the problems with SOPA we still need to address massive piracy of artists’ sound recordings”.  This produced a massive reaction.  Mostly negative.  Often the comments were threats.  They generally went like this:

“Unlike! I’ll never buy another one of your albums again”

or

“I’m gonna boycott your band”.

At the time I wasn’t the only artist that seemed to be speaking out.   And these other artists were getting roughly the same treatment.  The barrage of hate mail was unrelenting.  Many artists were bullied back into silence or “converted” under the influence of something like the Stockholm Syndrome.

But after a while I noticed something curious.  Very few of the critics seemed to have actually “liked” my bands in the first place. None of them seemed to have jobs (unless they were being paid to spend all day on facebook arguing about their constitutional right to steal other peoples shit and dress it up as “free speech”)  Nor were they my “friends” on Facebook.  They were commenting on my public comments on my personal Facebook page. I had no idea who these people were or where they came from.

I have a Facebook account because I have to have one as a public figure.  I regard posting to Facebook as somewhere between yard work and a dental appointment. I prefer my interaction with data packets on a command line not through some buggy and slow browser interface.  So I really don’t give a shit if someone is gonna unfriend me or unlike my band.  It’s  hilarious to me when people say that, cause all it means to me is less unpaid slave labor for the Web 2.0 overlords. It also means that all the effort and work I do out in THE REAL WORLD  enriches Facebook slightly less when our fans share pics and videos on their pages.  So go ahead friend, unfriend me. Please.

This was my calculation.  Most of the  freeehadists getting so hysterical were not fans anyway. And If they were fans of my bands and they are defending stealing from artists they likely weren’t buying my music anyway. Further if they are so stingy  they can’t buy a 99 cent song, or $9.99 album, the odds that these cheap ass parasites were gonna leave their parents basements to go to a show and buy a T-shirt was close to zero.  I was better off worrying about getting hit by a meteorite.   Anyway unless you’re in the top 1% of touring acts,  touring is so marginally profitable it really isn’t much money anyway. Oh so i’m only gonna earn $27 dollars a day instead of $29.  Fuck ’em.  They aren’t fans anyway.

About this time I happened to see  a photo of some kids “protesting” Metallica or Lars Ulrich.  I couldn’t help noticing the angriest one was wearing a  Nirvana shirt. See that explains everything!  It also occurred to me I hadn’t seen any Wall Street Journal headlines that read “Fan backlash forces Lars Ulrich to Sell Jet and Two Mansions”.  This was truly encouraging.

++++++++++++++++++++++++++++++

So after 6 months of running my artists’ rights blog and serious mano y mano combat with the freehadists, how did it affect my career?  How does it compare to the same period 2011.

*Did album sales suddenly plunge?  No, not according to my royalty statements.

*Did I make less money on the road? No.  In fact live revenues went up significantly.

*Did radio/tv play decrease?  Not according to my Sound exchange and  BMI statements.

*Did we have fewer placements in commercials, TV and Film?  No.  And honestly I don’t mean to be a poor winner here but I can’t resist it.  We’ve had a pretty fucking good year. The usual commercial work  plus a couple major film placements.  Young Adult and now Perks of Being a Wallflower (currently #1 soundtrack even while showing on limited screens).

*And what about the ultimate expression of Internet fandom?  The ultimate in click society impulsiveness ?What about Facebook Page Likes? The easiest and most painless thing for a fan to give up.  The quickest and easiest way to show displeasure.  Unlike. Our facebook likes should have shown some declines   Right?

Nope. Never once did our net Facebook page likes go negative. Not even for one day.   Even during the most heated debates.  Further some of the bigger positive spikes in facebook likes were on the day  I posted the most controversial stuff.

Turns out that Freehadists having fits on the interwebs, only matters to other Freehadists having fits on the internet.  It doesn’t really matter out in the real world. And it doesn’t really matter on Facebook.  Most normal people either agree with us about fair artist compensation, are open-minded or tolerate differences of opinion.

Turns out when artists speak out against file-sharing and take on the freehadists  NOTHING BAD HAPPENS.I hope this encourages other artists to speak out. It’s actually quite fun and refreshing after having to listen to  their bullshit for the last 15 years.

 New Facebook likes or if you prefer the “delta”  of our Facebook fanbase (above)

 In my experience real world events produce greater effects on Facebook fan delta than “internet based events”.  In other words playing a few shows dwarfs any sort of  reaction  you get by relentlessly posting and interacting on Facebook .  Put the Facebook down and play your guitar. (Below)

(Thanks to http://www.nextbigsound.com for this data)

Is Tim Westergren (Pandora) Really Just A Beard For Clear Channel?

Let me state this up front.  I have no problem with any broadcaster making a profit whether it’s Pandora, Sirius or Clear Channel. Even a lot of profit.  They have their financial interests and duty to their shareholders.  They have a financial interest in the IRFA bill. And I have my own financial interest in stopping this bill as it is written. In this case our interests are opposed.   On some level you can see this as a labor dispute or even a complex negotiation between buyers and suppliers. This is not my objection.

My objection is to how this is being done.  I object to Pandora’s attempt to “opt out” of the free market and instead ask Congress to step in and fix its financial model.  This is an abuse of the legislative process and deserves the description “crony capitalism”.  I  also strongly object to the campaign of disinformation which has accompanied this bill.

But if that was all there was to this bill this would be one blog post. 500 words max.  But it’s not.  This bill being pushed by Pandora Founder Tim Westergren must be seen in its historical and financial context. Further it helps to understand why an artist like me decides to do battle with this bill and the individuals and institutions that will profit from passage of this bill.

(I approach this with some trepidation as any one of these companies that I criticize could choose to be vindictive and harm me and either of my two ensembles by reducing airplay.  But I feel I must.)

As an artist that benefitted from a system which valued content and artists’ contributions, I feel obliged to make sure the next generation of artists (which include my  sons) have the same opportunities that I had. Many of my musician friends in the business fail to understand this.  We often see quotes from some of our older legacy artists endorsing illegal file sharing as “the new radio”.

Or they praise semi-legitimate tech schemes that suck value from artists’ songs or recordings while sharing the tiniest bit of revenue with artists.  I don’t think they are bad people but  they fail to see what is really happening here. And what will happen to the next generation.  They are severely limiting the next generation of musicians’ financial options.  And dooming them to exploitation at the hands of large corporations.

For even free music is not “free”.  Plenty of people are profiting off “free” music. Illegal sites run by sketchy (or worse) groups profit by selling ads.  Online advertising networks owned by Google, Microsoft, Yahoo and others profit by serving ads to these sites. Madison Avenue advertising firms profit by designing these online campaigns.  Mastercard, Visa, American Express and Paypal profit by providing payment processing to these illegal sites.  And the bittorrent ecosystem is not any different.  uTorrent™  insiders report  they make millions just from the advertising on their conduit toolbar.

Music is not free in the digital age.  It’s just that artists are too often not getting any  of the revenue that their music generates.

These legacy artists had the choice to decide how to monetize their music.  For example, the Grateful Dead chose to sell their recorded studio albums but chose to freely share their live performances as long as no one made any money off of sharing activities.  Indeed I have done exactly this my entire career with Camper Van Beethoven and Cracker.  We have over 4 thousand tracks on the internet music archive.  But I am fully aware that it is our duty as successful artists to protect the rights of the next generation of musicians. We should do our part to protect their ability to monetize their music if they so chose. Successful musicians need to understand that it is hypocritical to let the door close on the next generation of musicians.

The big picture here is that since the dawn of the digital age there has been unrelenting pressure from the tech industry and its lobbyists to devalue, even demonetize, recorded music (-ed note: and all intellectual property. Your job is next!).  This Pandora bill is just one battle in a long running war.

The reason I am criticizing Tim Westergren personally is because he has chosen to be the public face of this bill.  Further  as a musician he understands that this is the battle.  Indeed he was once  firmly on the side of musicians, advocating that Congress force terrestrial broadcasters  to pay a royalty to performers.  Here in 2009 he states that clearly!  He advocates that AM and FM radio do the right  thing and pay royalties to performers and support HR848 the Performance Rights Act. Now as Tim Westergren emerges from his IPO cocoon we see not a beautiful artist friendly butterfly but an ugly Wall Street moth advocating a race to the bottom. Fuck it, other people aren’t paying artists fairly, why should we? 

Nice. A beautiful display of Silicon Valley iEthics.™

But it’s much worse than that. Much of this bill appears to be written by or at the behest of Sirius XM and the National Association of Broadcasters. That would be  Clear Channel and other non-cool broadcasters.  The clauses in this bill that advocated firing of judges; what evidence the judges could consider; attempts to stand The Sherman Act on its head (and use it to muzzle PROs and artist groups) seemed bizarre coming from Tim “I’m a musician too” Westergren.

At least it seemed bizarre until I considered this horrible possibility:

Tim Westergren is a beard for Clear Channel, Sirius and The NAB!  

Indeed much of this bill does what  another similarly named bill does.  Flash back to the 2007 and the  National Association of Broadcasters sponsored Internet Radio Equality Act This act often shares similar concepts.  This bill of course fell flat on it’s face because consumers are not gonna write their congressmen on behalf of Clear Channel!

It looks to me as if someone somewhere just reheated this 2007 bill and got Tim Westergren to lead the charge.  After the Anti-SOPA Silicon Valley corporate counterrevolution of 2012 many people learned that if you just stick “freedom”,”fair” and “internet” on the front of your cause most people won’t bother to read  the ugly Orwellian details.  The tl/dr generation happily click, like, share and tweet the corporate agenda all the while (incorrectly) thinking that they are doing something vaguely revolutionary. Sad.

But the real Orwellian touch is falsely framing the debate as the cool internet broadcaster Pandora vs the uncool traditional broadcasters.  While not-so-secretly larding the bill with all kinds of goodies that help those uncool traditional broadcasters.

If my analysis is correct I just have to say “Touché, Tim,  you’ve actually harnessed the consumers dislike of traditional broadcasters to financially benefit those same broadcasters.”

And I also have to say, as I’ve done all week  “Screw You.”

Cause in reality this is Wall Street,  Silicon Valley and National Association of Broadcaster teaming up to screw over artists.   This is not hip internet radio broadcaster vs The Man.  It’s Pandora selling out to The Man.

“Screw You” cause you’re participating in the devaluing of the labor of your fellow musicians.  And not this generation but the generations to come.

Finally “Screw You Tim” cause you’re directly profiting from this  little charade.  By dangling the shiny object of lower royalty rates in front of investors it appears that investors see Pandora’s stock as potentially more valuable. Look at the headline on the  financial website www.Trefis.com after this bill was misrepresented to the public:

“Pandora’s Value Could Double If The Internet Radio Fairness Act Passes

Meanwhile Tim Westergren continues to sell an average of  a million dollars of Pandora stock a month.

Weekly Recap Sunday October 21, 2012 aka Pandorathon, On and On…

Grab the Coffee!

Recent Posts, aka The Pandorathon:
* Sign the @musiciansunion (AFM) Letter: Friends don’t let friends get IRFA’d!
* If Pandora wants Terrestial Radio Royalty Rates, Act Like It – Problem Solved!
* Tim Westergren’s Sophomore Slump. New Bill Sucks, Old Radio Fairness Bill Was Way Better.
* Screw You Too, Pandora. Part I. Pandora The Union Buster! Jail time for Collective Bargaining?
* Four Simple Reasons Why the Pandora Radio Act Screws Musicians (EZ Reader)
* Screw You Too, Pandora. Part II: Did Pandora Lie During Their IPO? Or are they just plain old greedy.
* IRFA Analysis: Section 2
* Screw you too, Pandora™ PT III. Kangaroo Court: Pandora Bill Requires Firing of Copyright Judges and Replacement with Fake Judges.
* Screw You Too Pandora! Pt IV. Why Conservatives and Libertarians Should Be Appalled By The IRFA Bill.
* Radio Fairness? Sirius/XM Paid My Band $2,213 Pandora Paid $91

And, in case you missed it:
* Amex must really like advertising on #1 copyright infringing and illegal porn linking site Filestube
* Mythbusting : Music Is Too Expensive!?
* Remembering Steve Jobs

From Around The Web.

C|NET:
* Breaking Bad’s Bryan Cranston on Piracy and TV’s golden age

SPIN:
* Downloaders Beware: Copyright Alert System Arises as Torrent Sites Enter the Cloud

COPYHYPE:
* Friday’s End Notes Oct 19, 2012

VOXINDIE:
* Blogspot.com, a Bridge to Piracy?
* Why Doesn’t YouTube Address the Real Content ID Fail?

ETHICAL FAN:
* Calling All Lawyers! uTorrent Increases “Privacy” and Counters Mass-Monitoring of Downloads

COPYLIKE via MEMEGENERATOR:
* Scumbag Steve – Downloads Music for free Buys $300 headphones
* Join Copylike on Facebook

THE CYNICAL MUSICIAN:
* If a Tree Falls in the Forest and Nobody Hears It…

TORRENTFREAK:
* Microsoft Will Ban Halo 4 Pirates from XBOX Live
* Maybe he should have thought twice? Pirate Bay Founder in Jail.

DIGITAL MUSIC NEWS:
* Trent Reznor returns to Major Label System

HYPEBOT:
* SXSW announces first 40 Panels for 2013

MUSIC TECH POLICY
* Betting the Company: The Internet Radio Fairness Act has little to do with the Internet, Radio or Fairness
* An Overlooked Brookings Institute Study on Fighting Piracy at the Corporate Level

AFM:
* Check out the American Federation of Musicians on Facebook

CREATIVE AMERICA:
* Petition for an Internet The Works for Everyone

Radio Fairness? Sirius/XM Paid My Band $2,213 Pandora Paid $91

By the sound of it you’d think that Pandora pays a lot of money to artists compared to something like Sirius XM radio.   Pandora keeps comparing the percentage paid to artists (50%) to satellite radio (10%).  And they keep crying out for “fairness”.

This is really manipulative.  Pandora is largely an ad supported model.   Sirius/XM is subscription supported.  As a result Sirius has much better revenues.  It doesn’t make sense to compare percentages.

Let’s look at what the two services really pay!

So for the 3rd quarter of 2012

Sirius paid Camper Van Beethoven  $2,213.70

Pandora Paid Camper Van Beethoven $91.07

And terrestrial radio?  Or what civilians call normal local FM/AM?

well… let’s just say they  paid me A LOT more than either of these services.

Now wait a minute!!  Pandora supporters say  that terrestrial radio doesn’t pay any royalties to performers.  That’s true, but only technically true.   Because of a quirk in the laws  terrestrial radio pays THE SONGWRITERS not the performers.  Often times they are the same.  sometimes not. But terrestrial radio is paying royalties.  Pandora is purposely distorting the facts.

Shareholders:  what other facts might they be distorting?

Screw You Too Pandora! Pt IV. Why Conservatives and Libertarians Should Be Appalled By The IRFA Bill.

As you may or may not know Pandora is trying to push a bill through congress  (Internet Radio Fairness Act) that would slash payments to artists by as much as 85%.   By “pushing through congress” we  actually mean paying-oops er we mean being a “top contributor” to Rep. Chaffetz according to Open Secrets, and then Chaffetz magically sponsors the IRFA bill which will pretty much just benefit Pandora.    Pandora pays hundreds of thousands of dollars to lobbyists including a former legislative director of a leading member of the House Judiciary Committee.  It will let Pandora get around agreements it made with artists and copyright holders. This is like Delta Airlines going to congress and asking them to pass a law to force  their pilots and fuel suppliers into accepting an 85%  cut.  We don’t do this in this country.  Screw these guys.

So every day this week we are gonna highlight something that we particularly offensive about Pandora and this bill.

Tell Congress: Don’t Slash Music Creators’ Pay

http://musicfirst-coalition.rallycongress.com/7986/tell-congress-dont-slash-music-creators-pay/

#4  The Free Market Argument Against the Pandora Sponsored Bill.

Very simply this is the ultimate in Crony Capitalism.

This is Pandora asking the U.S government to bail out a public corporation.  Never mind that the bail out money is coming from artists.  This is still a government mandated transfer of wealth from artists to a publicly traded  silicon valley company.

And why?  Cause Pandora’s  business model is apparently not profitable.  So what?  Cut expenses, trim salaries, negotiate with your suppliers, raise prices, add more commercials.  Do what your average small business owners do everyday  all across America.    Why does Pandora think they are so special that they get to run to congress for a handout?

If Pandora can’t make it let em fail.

Consumers and musicians have plenty of other options for streaming music. Pandora isn’t the only internet radio service you know.  Let a smaller more nimble company take their place.    Shit, artists could  stream their own music off their own websites if they wanted.  It is technically quite easy. What is the emergency here?

But perhaps the most outrageous thing about this bill from a libertarian perspective is that this is a Statutory License they are messing with.  This means that artists would not be able to opt out of this.  We couldn’t pull our music from Pandora even if we didn’t like the new lower royalty rates.   Can you imagine if the government told you at what price and to whom you were to sell your services?    Why does Pandora get to do this to performers?

Yeah so we musicians and performers are not the most sympathetic characters.  We do stupid stuff and wear sunglasses inside. Some people say we get what we deserve. But still I ask you to pay attention to this for a very good reason:

If they can do this to us, they can do this to you too.

Screw you too, Pandora™ PT III. Kangaroo Court: Pandora Bill Requires Firing of Copyright Judges and Replacement with Fake Judges.

As you may or may not know Pandora is trying to push a bill through congress that would slash payments to artists by as much as 85%.   By “pushing through congress” we  actually mean paying-oops er we mean being a “top contributor” to Rep. Chaffetz according to Open Secrets, and then Chaffetz magically sponsors the IRFA bill which will pretty much just benefit Pandora.    Pandora pays hundreds of thousands of dollars to lobbyists including a former legislative director of a leading member of the House Judiciary Committee.  It will let Pandora get around agreements it made with artists unions and copyright holders. This is like Delta Airlines going to congress and asking them to pass a law to force  their pilots union and fuel vendors into accepting an 85% cut.  We don’t do this in this country.  Screw these guys.

So every day this week we are gonna highlight something that we particularly offensive about Pandora and this bill.

Tell Congress: Don’t Slash Music Creators’ Pay

http://musicfirst-coalition.rallycongress.com/7986/tell-congress-dont-slash-music-creators-pay/

#3.  Pandora’s  Kangaroo Court and Fake Judges.

Hyperbole?  Not really.  What else would you call it when a bill designed to benefit a private corporation demands the dissolution of one court and replacement with another court but the judges aren’t allowed to consider “facts” that the bills backers find inconvenient?

No you didn’t wake up in some 1970s third world kleptocracy.  Nope this is really happening.  The  Tim “I’m- a-friend-of-musicians-but-their-unions-should-be-prosecuted-under-the-sherman-act” Westergren backed Internet Radio Fairness Act would do exactly that.

By cleverly switching who appoints these judges from the (non-partisan) Librarian of Congress to the President with Senate approval,  the current un-Pandora™-approved judges will be let go.

(a) Appointment.— The Librarian of Congress President of the United States, by and with the advice and consent of the Senate shall appoint 3 full-time Copyright Royalty Judges, and shall appoint 1 of the 3 as the Chief Copyright Royalty Judge. The Librarian shall make appointments to such positions after consultation with the Register of Copyrights.

Next the Pandora sponsored bill would makes sure the new judges couldn’t rule unfavorably for Pandora by restricting what facts they are allowed to consider.   For instance the judges are REQUIRED to consider the rates that non interactive radio stations pay (read broadcaster Sirius/XM), but the section that requires the judges consider the rates other interactive broadcasters pay is removed from the Law.  What’s more it expressly  FORBIDS the judges from considering the previous interactive rates set in other agreements and the  rulings and decisions of the previous judges!!  He who controls the past controls the future?!!!  This is fucking Orwellian.

You don’t understand?  Pandora and Spotify are more like jukeboxes then radio.   Spotify plays artists on demand and Pandora plays artists near on demand.  The performers provide a large share of the “value”  in this transaction.  In traditional broadcast the radio station can be seen to be “promoting” the performer. Further unless you get on a request line they don’t play exactly the artist you want.  Thus royalties for webcasters  like Pandora  have always been higher than for traditional broadcast radio because of the higher value provided by the artists.  But this rewriting of the law  forces the judges to ignore the differences between a normal broadcaster like Sirius/XM and near on demand Pandora when setting rates. It doesn’t allow the judges to consider the other interactive services so their only choice is to set rates the same as XM/Sirius.

It’s really quite shitty.  Yes there are judges in the process but the outcome is predetermined.  That’s why I say “fake judges”.  They aren’t really allowed to judge anything.

added language:

(B) …….under this paragraph, the Copyright Royalty Judges shall apply the objectives set forth in section 801(b)(1) and may also consider the rates and terms for noninteractive digital audio transmission services under voluntary license agreements described in subparagraph (A). that were entered into under competitive market circumstances. In any proceeding under this subsection, the burden of proof shall be on the copyright owners of sound recordings to establish that the fees and terms that they seek satisfy the requirements of this subsection, and do not exceed the fees to which most copyright owners and users would agree under competitive market circumstances.

added language

(v) shall not take into account either the rates and terms provided in licenses for interactive services or the determinations rendered by the Copyright Royalty Judges prior to the enactment of the Internet Radio Fairness Act of 2012.

Screw you too Pandora.

IRFA Analysis: Section 2

Here at The Trichordist, we’re taking a look at the Internet Radio “Fairness” Act all week. As a service to readers, we’re firing up the LegalTron 3000 to take a closer look at the bill, analyzing it section by section.

Both the House version, H.R. 6480, introduced by Rep. Jason Chaffetz (R-UT), and the Senate version, S.3609, introduced by Sen. Ron Wyden (D-OR), are identical, so the following applies to both. The bills contain eight sections, though the first merely sets forth the title of the Act and the last specifies the effective date and transitional rules, so we’ll focus only on sections two through seven.

The bill mainly amends the current Copyright Act, so we’ve done our best to show how these amendments look in context. The text of the affected statutes follows; strikethrough text indicates current language that has been removed or altered by the bill, underlined text indicates new or changed language added by the bill.

SEC. 2. APPOINTMENT OF COPYRIGHT ROYALTY JUDGES AND QUALIFICATIONS.

17 USC § 801 – Copyright Royalty Judges; appointment and functions

(a) Appointment.— The Librarian of Congress President of the United States, by and with the advice and consent of the Senate shall appoint 3 full-time Copyright Royalty Judges, and shall appoint 1 of the 3 as the Chief Copyright Royalty Judge. The Librarian shall make appointments to such positions after consultation with the Register of Copyrights.

17 USC § 802 – Copyright Royalty Judgeships; staff

(a) Qualifications of Copyright Royalty Judges.—

(1) In general.— Each Copyright Royalty Judge shall be an attorney who has at least 7 not fewer than 10 years of legal experience and has significant experience in adjudicating arbitrations or court trials. The Chief Copyright Royalty Judge shall have at least 5 years of experience in adjudications, arbitrations, or court trials. not fewer than 7 years of experience in adjudicating court trials in civil cases. Of the other 2 Copyright Royalty Judges, 1 shall have significant knowledge of copyright law, and the other shall have significant knowledge of economics. An individual may serve as a Copyright Royalty Judge only if the individual is free of any financial conflict of interest under subsection (h).

(d) Vacancies or Incapacity.—

(1) Vacancies.— If a vacancy should occur in the position of Copyright Royalty Judge, the Librarian of Congress shall act expeditiously to fill the vacancy, and may appoint an interim Copyright Royalty Judge to serve until another Copyright Royalty Judge is appointed under this section. President of the United States shall act expeditiously to fill the vacancy. An individual appointed to fill the vacancy occurring before the expiration of the term for which the predecessor of that individual was appointed shall be appointed for the remainder of that term.

(2) Incapacity.— In the case in which a Copyright Royalty Judge is temporarily unable to perform his or her duties, the Librarian of Congress President of the United States, by and with the advise and consent of the Senate, may appoint an interim Copyright Royalty Judge to perform such duties during the period of such incapacity.

The primary effect of this section is to shift appointment of Copyright Royalty Judges from the Librarian of Congress (who is the head of the department under which both the Copyright Royalty Board and Copyright Office reside) to the President.

This past summer, the DC Circuit Court held that as then drafted, the then-current method of appointing Copyright Royalty Judges was unconstitutional under the Appointments Clause. However, rather than striking down the law altogether, the court remedied the matter by the simple fix of removing limitations on the Librarian’s ability to remove Judges. So while this section of IRFA might appear to be in response to that decision, it isn’t at all necessary from a constitutional standpoint after the DC Circuit’s ruling.

What’s interesting is that, until 1993, Judges were appointed by the President, and it was generally considered a failure — in the words of one Senator, the Board “was a dumping ground for unqualified people to whom the President owed a small favor.” So why do we want to go back to that? One theory is that the bill’s writers simply don’t like the decisions the current Copyright Royalty Judges have made; by removing appointment from an expert agency to the Executive branch, with the advice and consent of the Senate, the bill opens the door to political games and partisanship.  Not to mention delays.

The section also adjusts the requirements for Judges, bumping up the minimum experience required, but also, oddly, removing the requirement that any of the Judges have experience in economics or even copyright law. Why you’d want a Copyright Royalty Judge without requiring a background in copyright is beyond us. But more to the point, is there any evidence that current Judges aren’t qualified to hold their positions, or that an extra three years experience is necessary? Or are these provisions just more cover for a collateral attack on the Board’s prior decisions?

The last section of the bill provides that the new Judges will be appointed immediately. Current Judges will continue to preside over proceedings where a hearing on the merits has concluded, or where it has commenced, except that proceedings under Sections 112 and 114 (proceedings that affect Pandora) will only continue with “consent of all participants.” So Pandora gets a fresh slate to have its own judges decide how little it should pay musicians under its own rules.

Screw You Too, Pandora. Part II: Did Pandora Lie During Their IPO? Or are they just plain old greedy.

As you may or may not know Pandora is trying to push a bill through congress that would slash payments to artists by as much as 85%.   By “pushing through congress” we  actually mean paying-oops er we mean being a “top contributor” to Rep. Chaffetz according to Open Secrets, and then Chaffetz magically sponsors the IRFA bill which will pretty much just benefit Pandora.    Pandora pays hundreds of thousands of dollars to lobbyists including a former legislative director of a leading member of the House Judiciary Committee.  It will let Pandora get around agreements it made with artists unions and copyright holders. This is like Delta Airlines going to congress and asking them to pass a law to force  their pilots and flight attendants into accepting an 85% pay cut.  We don’t do this in this country.  Screw these guys.

So every day this week we are gonna highlight something that we particularly offensive about Pandora and this bill.

Tell Congress: Don’t Slash Music Creators’ Pay

http://musicfirst-coalition.rallycongress.com/7986/tell-congress-dont-slash-music-creators-pay/

#2 The IPO Problem.

First consider this.  Did Pandora mislead investors in the months leading up to its successful IPO in June 2011?   I mean they convinced investors that they had a sound business model, that they would be profitable, and this must have included paying the rates to artists that they had agreed upon in 2009 that would be in effect until 2015.

Did Pandora tell prospective nvestors that Pandora would need to renegotiate the rates they agreed to pay to artists in order to become sufficiently profitable to justify their IPO share price?   Did they tell investors that after their IPO they wanted to go to Congress and lobby to pass a law to make their business sufficiently profitable to justify their share price?

No.

And I can’t imagine that they only just discovered that they wanted to change this rate.  I bet they’ve been planning this for a long time. I mean you don’t just cook up a bill for Congress overnight.   So  all we need is ONE former employee or associate of Pandora that knows of any talk before the IPO of planning to change this rate after the IPO  and Pandora is Toast. (email us!)

Look at their chart:

With mostly institutional investors,  I bet there is someone out there with resources  that feels like they got burned on their Pandora stock.   Shareholder problems?

OR perhaps Pandora didn’t mislead investors leading up to the IPO.  Which is most likely how they will respond.  If that is the case consider the following:

Pandora is perfectly capable of becoming profitable with the current artists royalty rates.

This means Pandora is just plain old greedy.  Greedy and just like every other corporation in the 1% because they are using their lobbying power to ask Congress to change the law to lower the agreed-upon royalty rates simply benefit their bottom line.   And all of this at the expense of musicians over whom they have absolute power.  And you know what they say about absolute power.

Screw you too, Pandora.