NP AAAARGGHHHHH: @NPR CEO Jarl Mohn Funded Piracy Client Vuze and Vuze Sponsors Torrent Freak

We’ve been reporting for the last few days on NPR joining Pandora, Clear Channel, National Association of Broadcasters and Google in the MIC Coalition which seeks to lower rates paid to artists and to keep songwriters under DOJ supervision (because what these large corporate and state chartered near monopolies need is  “anti-competition” protection from songwriters?  WTF?).

This has puzzled us because NPR already enjoys a dramatically lower royalty rate than most other radio.  Further we artists often waive our rights and allow NPR use of our recordings royalty free  in perpetuity.  We willingly support NPR in this manner because we believe they provide a public service. We have been a solid ally of public and community radio. Why would they turn against us and join this dark side coalition?

Now we think we have the answer.

NPR CEO Jarl Mohn is a card carrying member of the dark side. He funded the  bittorrent piracy client Vuze not once but twice.  He was part of the B series round of $12 million and the C series round of $20 million.  And make no mistake Vuze is a key part of the piracy ecosystem.

Yeah yeah yeah, we heard it before:  “Vuze is just a tool and they don’t profit from piracy”  Bullshit.  Vuze profits directly from the illegal distribution of my material by knowingly serving advertising against it.

Allow me to demonstrate with the tracks from my latest album.

Screen Shot 2015-05-02 at 10.58.33 PM

This is a screenshot of the Vuze client while downloading an unlicensed copy of my new album Berkeley to Bakersfield.  Down in the left hand corner there is an ad for American Express served by the publicly traded web advertising firm Quantcast. (Coincidentally a couple of years ago I privately defended Quantcast against similar charges, now I feel like a fucking idiot.)

To be clear this is not a webpage and ad exchange banner advertising. No one played some “tunneling” or DNS forwarding trick to make American Express and Quantcast think it wasn’t advertising on this site.  This advertising  is embedded into a piece of software that is used almost exclusively for downloading illegally distributed films music and pornography. How does American Express not know this? Quantcast? Or Jarl Mohn?

How did NPR come up with a CEO  with such questionable ethics?  This guy had to know what he was funding: A tool to infringe the rights of artists on global scale.  If not he’s really really dim.

 

Screen Shot 2015-05-02 at 7.34.39 PM

 

But it gets worse. The piracy advocating website Torrent Freak appears to be sponsored by the very same company: Vuze.   That’s right the piracy revolution will not be televised but it will be sponsored by amoral Silicon Valley Venture Capitalists.   You really thought Torrent Freak was an ideological true believer fighting for your rights to “share” against the man?  Nope looks they are the marketing department for the man who makes advertising money off of your sharing activity.  

Tool

Here’s a screenshot from the Torrent Freak website helpfully alerting it’s readers to availability of the leaked Game of Thrones Season 5 on Kick Ass Torrents and the Pirate Bay.   Look carefully at the code.  The ad for Vuze isn’t just randomly served by some online adexchange. It’s embedded into the site.  Someone had to go in and place that link and that JPG into the code.  Plus the visible text actually claims them a “sponsor.”

So you are really gonna tell me with a straight face that no money is changing hands here?  Vuze is not paying “Ernesto” the editor of Torrent Freak?  While Ernesto is pretty much inducing piracy and giving advice on how to avoid prosecution?

How is this not a conspiracy?  I mean conspiracy like  RICO Conspiracy (See details below).

And it all started with money from NPR CEO Jarl Mohn.

Fire this guy.

NPR affiliates, DJs, Journalists and independent public radio stations need to stand with artists against these assholes. Heres our olive branch.  Please join us.

Otherwise?

It’s Torches and Pitchforks time.  It’s not gonna be prett.y

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STOP IF YOU DON’T WANT TO GO INTO A DEEP DIVE ON RACKETEERING AND CORRUPT ORGANIZATION (RICO) STATUTES.

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I’m not a lawyer but the intent of the law seems pretty clear. To prevent groups of people-even if only informally organized-from engaging in coordinated criminal activity.  Specifically when it disrupts legitimate marketplaces like those for recorded music or online advertising.

“RICO is designed to attack organized criminal activity and preserve marketplace integrity by investigating, controlling, and prosecuting persons who participate or conspire to participate in racketeering.” Black’s Law Dictionary 1286 (8th ed. 2005).  

There are a host of organized “scams” that generally occur in the peer to peer advertising ecosystem including within the Vuze client. Maybe there are some prosecutors or litigators out there who can help me with this? Aren’t the following part of the RICO statute?

1)  Mass copyright infringement.

2) Advertisers publicly claim to not know where there ads are being served.  If this is true then there is fraud going on.  Someone along the way, advertising agencies, ad exchanges, and/or companies like Vuze are behaving improperly. Since it involves the online ad ecosystem wouldn’t this be Wire Fraud?

3) Uh… how do I say the obvious? P2P networks have a lot of pornography?  A lot!     I could be wrong, but I can’t imagine illegal pornography isn’t also being monetized with advertising as it’s transferred using the Vuze client.  How can you possible be allowed to make money off of illegal pornography and not be prosecuted?

4) Anyone visiting a site like The Pirate bay has probably noticed the relentless advertising for Russian or Asian Brides.  Human trafficking anyone?

5) These same sites often feature ads for third party websites that claim to enroll applicants into a  “US Green Card Lottery.”   The US has never used third parties for its “Diversity Visa” program and at the present time the US is not accepting applications for diversity visas.  All websites advertising for the 2017 lottery are highly suspect.  (An early version of this article made it seem as if the US never had a Diversity Visa or “Green Card Lottery” that was incorrect). 

Now check out the RICO definitions. My bold italics added.

18 U.S. Code § 1961 – Definitions:

As used in this chapter—
(1) “racketeering activity” means (A) any act or threat involving murder, kidnapping, gambling, arson, robbery, bribery, extortion, dealing in obscene matter, or dealing in a controlled substance or listed chemical (as defined in section 102 of the Controlled Substances Act), which is chargeable under State law and punishable by imprisonment for more than one year; (B) any act which is indictable under any of the following provisions of title 18, United States Code: Section 201 (relating to bribery), section 224 (relating to sports bribery), sections 471, 472, and 473 (relating to counterfeiting), section 659 (relating to theft from interstate shipment) if the act indictable under section 659 is felonious, section 664 (relating to embezzlement from pension and welfare funds), sections 891–894 (relating to extortionate credit transactions), section 1028 (relating to fraud and related activity in connection with identification documents), section 1029 (relating to fraud and related activity in connection with access devices), section 1084 (relating to the transmission of gambling information), section 1341 (relating to mail fraud), section 1343 (relating to wire fraud), section 1344 (relating to financial institution fraud), section 1351 (relating to fraud in foreign labor contracting), section 1425 (relating to the procurement of citizenship or nationalization unlawfully), section 1426 (relating to the reproduction of naturalization or citizenship papers), section 1427 (relating to the sale of naturalization or citizenship papers), sections 1461–1465 (relating to obscene matter), section 1503 (relating to obstruction of justice), section 1510 (relating to obstruction of criminal investigations), section 1511 (relating to the obstruction of State or local law enforcement), section 1512 (relating to tampering with a witness, victim, or an informant), section 1513 (relating to retaliating against a witness, victim, or an informant), section 1542 (relating to false statement in application and use of passport), section 1543 (relating to forgery or false use of passport), section 1544 (relating to misuse of passport), section 1546 (relating to fraud and misuse of visas, permits, and other documents), sections 1581–1592 (relating to peonage, slavery, and trafficking in persons)., [1] section 1951 (relating to interference with commerce, robbery, or extortion), section 1952 (relating to racketeering), section 1953 (relating to interstate transportation of wagering paraphernalia), section 1954 (relating to unlawful welfare fund payments), section 1955 (relating to the prohibition of illegal gambling businesses), section 1956 (relating to the laundering of monetary instruments), section 1957 (relating to engaging in monetary transactions in property derived from specified unlawful activity), section 1958 (relating to use of interstate commerce facilities in the commission of murder-for-hire), section 1960 (relating to illegal money transmitters), sections 2251, 2251A, 2252, and 2260 (relating to sexual exploitation of children), sections 2312 and 2313 (relating to interstate transportation of stolen motor vehicles), sections 2314 and 2315 (relating to interstate transportation of stolen property), section 2318 (relating to trafficking in counterfeit labels for phonorecords, computer programs or computer program documentation or packaging and copies of motion pictures or other audiovisual works), section 2319 (relating to criminal infringement of a copyright), section 2319A (relating to unauthorized fixation of and trafficking in sound recordings and music videos of live musical performances), section 2320 (relating to trafficking in goods or services bearing counterfeit marks), section 2321 (relating to trafficking in certain motor vehicles or motor vehicle parts), sections 2341–2346 (relating to trafficking in contraband cigarettes), sections 2421–24 (relating to white slave traffic), sections 175–178 (relating to biological weapons), sections 229–229F (relating to chemical weapons), section 831 (relating to nuclear materials), (C) any act which is indictable under title 29, United States Code, section 186 (dealing with restrictions on payments and loans to labor organizations) or section 501 (c) (relating to embezzlement from union funds), (D) any offense involving fraud connected with a case under title 11 (except a case under section 157 of this title), fraud in the sale of securities, or the felonious manufacture, importation, receiving, concealment, buying, selling, or otherwise dealing in a controlled substance or listed chemical (as defined in section 102 of the Controlled Substances Act), punishable under any law of the United States, (E) any act which is indictable under the Currency and Foreign Transactions Reporting Act, (F) any act which is indictable under the Immigration and Nationality Act, section 274 (relating to bringing in and harboring certain aliens), section 277 (relating to aiding or assisting certain aliens to enter the United States), or section 278 (relating to importation of alien for immoral purpose) if the act indictable under such section of such Act was committed for the purpose of financial gain, or (G) any act that is indictable under any provision listed in section 2332b (g)(5)(B);
(2) “State” means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, any political subdivision, or any department, agency, or instrumentality thereof;
(3) “person” includes any individual or entity capable of holding a legal or beneficial interest in property;
(4) “enterprise” includes any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact although not a legal entity;

screenshot-www vuze com 2015-05-03 18-48-20

 

screenshot-www crunchbase com 2015-05-03 18-46-16

 

 

 

 

 

 

 

FCC Shelves Pandora’s Bid For South Dakota Radio Station | Billboard

In a setback to its music licensing plans, Pandora has received word from the FCC that for the time being it is no longer processing its application to transfer ownership of the broadcasting license for KXMZ, the Rapid City, South Dakota radio station it acquired last June. Pandora had hoped to take advantage of the lower rates that internet streaming services owned by terrestrial radio stations enjoy.

READ THE FULL STORY AT BILLBOARD:
http://www.billboard.com/biz/articles/news/legal-and-management/5869791/fcc-shelves-pandoras-bid-for-south-dakota-radio

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

BREAKING: Pandora Runs to the Government to Screw Songwriters Again

Good news: Pandora is scheduled to come to the stock market with a “secondary offering”, meaning the company is essentially having a second IPO. According to the Wall Street Journal:

The Internet radio company and its venture-capital backer Crosslink Capital Inc. are slated to offer 14 million shares late Thursday[, i.e., tomorrow], a stake that was worth $336 million when it was announced after Monday’s close.

So music is good business, right? It sure is–for everyone but the songwriters and artists.

In case any songwriter wondered, Pandora has more money than you and they intend to use it to screw you as hard as they possibly can to enrich themselves.

Today Pandora won a truly Pandora-style “victory” in the ASCAP rate court by getting a federal judge to rule that Pandora–a monopolist in webcasting–can use the out of date ASCAP consent decree to force songwriters to license to them.

And make no mistake–this is a very important case to Pandora because the one way that songwriters have of getting out of the trap inside Pandora’s house of cards is to say no and refuse to license to Pandora. And “no” is the one thing that Pandora can’t have you say because their only product is music. The government granted them an effective monopoly on webcasting and Pandora intends to keep it that way.

READ THE FULL POST HERE AT MUSIC TECH POLICY:
http://musictechpolicy.wordpress.com/2013/09/18/pandora-runs-to-the-government-to-screw-songwriters-again/

MORE HERE AT DIGITAL MUSIC NEWS:
http://www.digitalmusicnews.com/permalink/2013/20130918pandora

Pandora Prepares to Attack Artists… Again | DMN

Amazing the lengths Tim Westergren and Pandora are willing to go to, to attack artists…

Accordingly, Pandora is taking steps to have well-written, careful responses ready to go within 24 hours in places like Digital Music News.  Most importantly, the response needs to come from a source not affiliated with Pandora (or, so it seems…)

READ THE FULL STORY (AND EMAILS) AT DIGITAL MUSIC NEWS:
http://www.digitalmusicnews.com/permalink/2013/20130715pandora#QFlbW2t7XHEHic_7jx2vSg

How Pandora Became Music’s Big Villain – The Verge

The Verge reports on the battle over internet royalties…

Pandora struggles to win hearts and minds because its leadership lacks credibility, and has also been utterly inept at pitching the company’s plan to the public, press, and Congress. Pandora failed to generate congressional support to lower royalties last year and unless the company’s leadership dramatically changes its strategy, the popular radio service doesn’t appear to have a prayer of getting help from Washington any time soon.

Michael Pachter, a research analyst with Wedbush Securities, believes Pandora will eventually thrive but that its attempt to legislate lower costs is misguided. “The bill is idiotic,” Pachter said. “It’s insulting to Congress to say you want regulation to lower your costs at the expense of artists. Did you see who was on stage with Obama helping him campaign? Jay-Z and Bruce Springsteen. That’s the Democrats, and how many Republicans are going to want to legislate against capitalism and the free market?”

RED THE FULL STORY AT THE VERGE:
http://www.theverge.com/2013/7/9/4475102/pandroas-pr-problem-why-the-company-cant-win-in-washington

Blake Morgan : Pandora Needs to Do Right By Artists @ Huffington Post

Songwriter, Musician and Label owner Blake Morgan gained national attention through his email correspondence with Tim Westergren regarding Pandora’s attempt to manipulate musicians into signing a letter that would reduce their own royalty payments. Blake returns with a new editorial in the Huffington Post.

Instead of lobbying Congress (as you have) to lower Pandora’s rates, honor the rates Pandora, artists, and labels agreed upon together for Internet radio hand-in-hand with Congress in 2009. It’s an agreement artists went into with you in good faith, that already dramatically lowered the rates Pandora had to pay. It’s an agreement Mr. Westergren himself applauded at the time, famously and happily announcing on his own blog, “the royalty crisis is over!” It was also an agreement we were all supposed to continue honoring together, until 2015.

Instead of taking provocative action and purchasing a tiny radio station in the country’s 255th largest market (as you just did in an attempt to qualify as a terrestrial radio company and not have to pay a performer royalty), take different, provocative action. Stand with music lovers and music makers in reasonably and rationally arguing that terrestrial radio has never paid its fair share, and it’s time it did. And then to show you mean it, sell that station.

READ THE FULL EDITORIAL HERE AT THE HUFFINGTON POST:
http://www.huffingtonpost.com/blake-morgan/pandora-radio_b_3530363.html

My Song Got Played On Pandora 1 Million Times and All I Got Was $16.89, Less Than What I Make From a Single T-Shirt Sale!

Pandora less than t-shirt sale

As a songwriter Pandora paid me $16.89* for 1,159,000 play of “Low” last quarter.  Less than I make from a single T-shirt sale.  Okay that’s a slight  exaggeration.  That’s only the premium multi-color long sleeve shirts and that’s only at venues that don’t take commission.  But still.

Soon you will be hearing from Pandora how they need Congress to change the way royalties are calculated so that they can pay much much less to songwriters and performers. For you civilians webcasting rates are “compulsory” rates. They are set by the government (crazy, right?). Further since they are compulsory royalties, artists can not “opt out” of a service like Pandora even if they think Pandora doesn’t pay them enough. The majority of songwriters have their rates set by the government, too, in the form of the ASCAP and BMI rate courts–a single judge gets to decide the fate of songwriters (technically not a “compulsory” but may as well be).  This is already a government mandated subsidy from songwriters and artists to Silicon Valley.  Pandora wants to make it even worse.  (Yet another reason the government needs to get out of the business of setting webcasting rates and let the market sort it out.)

Here’s an idea. Why doesn’t Pandora get off the couch and get an actual business model instead of asking for a handout from congress and artists? For instance: Right now Pandora plays one minute of commercials an hour on their free service. Here’s an idea!  Play two minutes of commercials and double your revenue! (Sirius XM often plays 13 minutes and charges a subscription).

I urge all songwriters to post their royalty statements and show the world  just how terrible webcasting rates are for songwriters.

The revolution will not be webcast.

* I only own 40% of the song, the rest of the band owns the other 60% so actually amount paid to songwriters multiply by 2.5 or $42.25)

**  I am also paid a seperate royalty for being the performer of the song.   It’s higher but also what I would regard as unsustainable.   I’ll post that later this week.

For frame of reference  compare Sirius XM paid me $181.00

sirius royalties

Terrestrial (FM/AM) radio US paid me $1,522.00

Terrestrial Radio royalties Low

Musician / Songwriter Blake Morgan Talks to NPR about Pandora’s Latest Attempt Reduce Royalties to Musicians

In a recent interview with NPR musician/songwriter Black Morgan expressed his thoughts and concerns about Pandora’s constant attempts to reduce royalty payments.

“I have a new record coming out — most people have new records coming out,” he says. “These are things that we’ve worked on for months, if not years, and we’re not looking to be paid unfairly. We’re simply looking for a fair working wage for the music that we make.”

Pandora co-founder Tim Westergren sent out emails to musicians trying to get them behind Pandora’s attempts to even the rates between terrestrial and Internet radio. Morgan wrote back to Westegren furious: “He cashes in a million dollars of stock every month on the first of the month and he’s done so over the same 14-month period that recording artists like me earned $15.75.”

Read the entire story here at NPR:
http://www.npr.org/blogs/therecord/2013/06/15/191703769/songwriters-group-calls-pandoras-radio-station-buy-a-stunt

Pandora Wants You, the Working Musician, to Sign This Letter to Congress…

This is part of a broader attempt by Pandora to win the hearts-and-minds of working musicians, and bolster support in Congress.  Here’s an email shared with Digital Music News; we blotted out the name of the artist (and some other identifying details) but everything else is intact…

READ THE ENTIRE LETTER AT DIGITAL MUSIC NEWS:
http://www.digitalmusicnews.com

ALSO AT DIGITAL MUSIC NEWS:
Pandora Tries to Convince a Musician That He Isn’t Getting Screwed…

From: Blake Morgan
To: Tim Westergren @ Pandora

Without us, you don’t have a business.

The idea of “allowing” us to “participate” in a business that is built solely on distributing and circulating our copyrighted work is like a grocery store saying it has an idea to “allow” the manufacturers of the goods it carries to get paid. The store isn’t “allowing” Del Monte to get paid for their cans of green beans, right? Of course not.