If Streaming Is The Solution To Piracy, Why Is Piracy Still Increasing?

Music Business Worldwide is reporting that “GLOBAL MUSIC PIRACY DOWNLOADS GREW BY ALMOST A FIFTH IN 2015″.

The amount of music downloaded on illegal piracy sites grew by 16.5% in the second half of 2015 compared to the year’s opening six months.

That’s according to leading content protection and market analytics company MUSO, which tracked web activity on 576 sites which were ‘wholly dedicated to music piracy or contained significant music content’.

Across these sites, MUSO analysed over 2 billion visitor traffic hits globally.

READ THE FULL STORY AT MUSIC BUSINESS WORLDWIDE:
http://www.musicbusinessworldwide.com/global-music-piracy-downloads-grew-by-almost-a-fifth-in-2015/

Artists Rights Advocates Make Gains in 2015… Web/Tech Admissions Laid Bare.

So many of the issues we’ve been talking about for years are finally becoming part of the larger and more mainstream conversations about artists rights and an ethical internet.

Seems like there is a little bit more than a slight draft blowing on house of cards that Silicon Valley has built. Here’s a quick recap.

FREE, UNLIMTED, AD-SUPPORTED, ON DEMAND STREAMING IS UNSUSTAINABLE.

Pandora CEO Mike McAndrews first started teasing this talking point during an earnings call in October. You can read those comments at Re/Code. But it was the more direct article McAndrew’s authored for Business Insider that really cemented what we’ve been saying all along…

“This gray market is unsustainable. If consumers can legally listen to free on-demand music permanently without converting to paying models, the value of music will continue to spiral downward to the benefit of no one.”

There is no turning back from this admission.

It’s funny how in years past so many in the music and tech communities could not and would not admit to this simple fundamental truth often telling musicians the true value of their platform was “exposure” so artists could “tour and sell t-shirts”. Well it now looks like the wheels have been run off that nonsense for good.

What would be really great is to see Pandora join the fight with artists against Ad-Funded Piracy. Pandora, Spotify, YouTube and every other Ad-Supported music platform must be aware of the fact that the downward pressure from these infringing pirate sites not only diminishes the value of music, but also the value of advertising on legitimate and licensed paltforms.

WINDOWING WORKS. ASK ADELE, TAYLOR SWIFT AND THE MOVIE BUSINESS.

Taylor Swift, Adele, Beyonce, Prince, Coldplay, The Black Keys, Thom Yorke and other artists have proved that Hits Don’t Need Spotify, but rather Spotify Needs Hits. The Wall Street Journal reports that Spotify is caving in on windowing.

Now, the service is caving in, according to people familiar with the matter.

In private talks, Spotify has told music executives that it is considering allowing some artists to start releasing albums only to its 20 million-plus subscribers, who pay $10 a month, while withholding the music temporarily from its 80 million free users. The company is only interested in withholding albums that can be kept off of other free music sites, such as Alphabet Inc.’s YouTube, for the same amount of time, one of these people said.

There is no turning back from this admission.

This means that Spotify has admitted that it is NOT a discovery medium, it is a retail outlet. Spotify is the digital cut-out bin offering the lowest amount of value to artists. The big problem for Spotify now is who decides who is a lessor or greater artist? Who is going to have that conversation with artists and managers that they are a lessor artist and not worthy of Spotify’s stamp of approval to only be streamed to paying subscribers? Ironically, but predictably the new boss is worse than the old boss.

As with Pandora’s admission about unlimited free streaming being unsustainable, Spotify also recognizes that Ad-Funded Piracy, particularly of the YouTube variety (and mentioned by name) must be managed effectively for windowing to work.

YOUTUBER’S GET PIRATED ON FACEBOOK EXACTLY HOW MUSICIANS GET PIRATED ON YOUTUBE, AND THEY DON’T LIKE IT.

Here’s a shocker. YouTuber’s who create original content through their own investment of time, money and resources are outraged when Facebook users “Freeboot” (aka Pirate) those videos depriving the original creator of the revenue. Hank Green writes a post on Medium that breaks it down.

According to a recent report from Ogilvy and Tubular Labs, of the 1000 most popular Facebook videos of Q1 2015, 725 were stolen re-uploads. Just these 725 “freebooted” videos were responsible for around 17 BILLION views last quarter. This is not insignificant, it’s the vast majority of Facebook’s high volume traffic.

There is no turning back from this admission.

Every argument that has been used against musicians, filmmakers and other creators for using the DMCA to protect their work suddenly takes on new dimensions when the tables are turned.

Larry Lessig had convinced a generation that they we’re being criminalized because musicians were “out of touch” with the “sharing economy”. When musicians issued DMCA notices to YouTube they were vilified, taunted and publicly shamed “Sorry that video is no long available due to a copyright claim by the artist.

THE DMCA IS NOT A “LICENSE” FOR INFRINGEMENT, COX LOSES SAFE HARBOR IN JURY VERDICT. 

Perhaps the single greatest ruling of the year involves Cox Communications losing it’s safe harbor under the DMCA. Digital Music News reports on the jury verdict.

Ultimately, the court found the situation to be more complicated than that, with Cox now ruled guilty of both contributory and willful contributory copyright infringement by a federal jury.  The jury award is $25 million, though that probably represents a small prelude to damages that could ultimately push into the hundreds of millions.

There is no turning back from this verdict.

For those of you keeping score at home it is the DMCA abuse that has been used as a shield against copyright infringement liability by the internet and web/tech communities. Many businesses including many ISP’s and content hosting platforms such as YouTube have used the DMCA to build massively profitable businesses that are largely comprised of infringing works, otherwise known as User Pirated Content. That may be about to change thanks to this ruling.

THE PIRATE / FREE CULTURE MOVEMENT HAS FAILED. 

In a recent interview Peter Sunde, the founder of The Pirate Bay, the flagship of the free culture movement admitted he had failed and was giving up. The most interesting admission by Sunde is at the end of the interview where he echoes what we and other’s have been saying for years.

So, is there like a concrete thing we should focus on? Or do we need to aim for a new way of thinking? A new ideology?

Well, I think the focus needs to be that the internet is exactly the same as society.

There is no turning back from this admission.

There is an excellent open letter in response to Sunde by David Newhoff at The Illusion of More that is well worth reading with a detailed look at why Sunde has failed. But it is Sunde himself who makes the most profound admission.

We have centuries of rule of law for civilized societies that respect and protect individual creators rights in the authorship of their work. The United Nations Universal Declaration of Human Rights, Article 27, part 2 states “Everyone has the right to the protection of the moral and material interests resulting from any scientific, literary or artistic production of which he is the author.”

The greatest irony here is that Sunde set up The Pirate Bay as an attack on capitalism, but he started by attacking artist’s and creator’s moral rights firsts. The paradox of “pirate logic” expands when one recognizes that The Pirate Bay was said to be making over four million dollars year. Yeah, that’s the way to fight capitalism, attack the ability for artists to survive and pocket four million a year. We couldn’t make this up if we tried.

SO LETS CHECK THE MATH HERE AT THE END OF 2015

  • Pandora attacks Spotify stating the Unlimited, Ad-Supported, On Demand, Free Streaming is Unsustainble.
  • Spotify attacks YouTube stating that Windowing Can Only Work If Windows Can Be Enforced.
  • YouTuber’s attack Facebook stating that Stealing and Monetizing their work Without Permission is bad.
  • Cox Communications attacked the DMCA stating “F*ck The DMCA” and lost.
  • Peter Sunde attacks Capitalism stating that… oh well, forget it… it’s nonsense.

There is a lot of work to be done, however these admissions set the framework for the future of these conversations going forward.

jean michael jarre IRM 1

[NOTE : THIS ARTICLE WAS UPDATED ON SATURDAY DEC 19 TO ADD THE PARAGRAPH ABOUT COX COMMUNICATIONS]

Pirate Bay Founder: ‘I Have Given Up’ | Motherboard.Vice

This interview is fascinating on so many levels and deserving of it’s own in depth post to explore Sunde’s comments.  Here is just a teaser…

What is it exactly that you have given up?

Well, I have given up the idea that we can win this fight for the internet.

The situation is not going to be any different, because apparently that is something people are not interested in fixing. Or we can’t get people to care enough. Maybe it’s a mixture, but this is kind of the situation we are in, so its useless to do anything about it.

We have become somehow the Black Knight from Monty Python’s Holy Grail. We have maybe half of our head left and we are still fighting, we still think we have a chance of winning this battle.

So what can people do to change this?

Nothing.

PLEASE READ THE FULL POST AT VICE-MOTHERBOARD:
http://motherboard.vice.com/read/pirate-bay-founder-peter-sunde-i-have-given-up

Karma Meets Irony. “Freebooted” YouTuber’s Feel The Sting Of Piracy…

Watch and learn… We can’t make this up. Seriously you have to watch this video.

If we had a nickle for every YouTuber or Tech Journalist that advised musicians that “YouTube” was the SOLUTION TO PIRACY we’d be rich. Really rich. I mean, really, really, really rich. We we’re told YouTube was “promotion” and “exposure” to make money other ways.

We were told how if you just “made stuff people wanted” and “connected with fans” then they would reward you with loyalty and support. Musicians were told they were “whining” about piracy and that they should “adapt and evolve” to the “new way” and just embrace all of this “awesome internet empowered promotion”.

Funny how it is when the shoe is on the other foot. See here’s the thing. All of these YouTuber’s make money from the advertising that runs on their YouTube videos. But when those videos are ripped from YouTube by fans and uploaded to Facebook guess who doesn’t get paid? Yup, you guessed it… the YouTuber’s are getting stiffed and they don’t like it.

Where is Larry Lessig to help these folks out? Remember kids, don’t break the internet! It’s “sharing economy” afterall. You do the work and silicon valley shares the profits.

Soooo… when a musician’s work is pirated on Napster, Grockster, Kazaa, Limewire, The Pirate Bay, oh and YouTube… Musicians should “get over it”. But when a YouTuber’s work, labor and creative output is devalued, or worse monetized by a third party (Facebook) who doesn’t pay them anything, well then, you know, that’s “bad”.

The issue gained national attention this year earning editorials and reports from the likes of Slate, “Facebook’s Piracy Problem” in July. Time followed with a story in August, “This Is Facebook’s Biggest Problem With Video Right Now.” And recently as November AdWeek chimed in, “Facebook’s ‘Freebooting’ Piracy Problem Just Cost Casey Neistat 20 Million Views“.

This quote from the AdWeek story above kind of says it all…

But then they ran into a problem known as “freebooting,” which entails republishing videos on social sites without the consent of the folks who made the clips. In essence, it’s a practice of intellectual-property theft that’s plagued Facebook more than other digital platforms—PR-wise, at least—in recent months thanks to a few whistle-blowers.

They go on…

“I spent roughly a week issuing take downs on Facebook—a convoluted process,” Neistat told Adweek. “I crowdsourced the process of finding the freebooters because there is no way to search Facebook. In all, I took down well over 50 different posts—[which was] not nearly all of them. I simply gave up after a while. I anecdotally kept track of the view counts—over 20 million views on the videos I took down.”

Here’s more to chew on from a post by Hank Green on Medium, “Theft, Lies and Facebook Video“.

According to a recent report from Ogilvy and Tubular Labs, of the 1000 most popular Facebook videos of Q1 2015, 725 were stolen re-uploads. Just these 725 “freebooted” videos were responsible for around 17 BILLION views last quarter. This is not insignificant, it’s the vast majority of Facebook’s high volume traffic. And no wonder, when embedding a YouTube video on your company’s Facebook page is a sure way to see it die a sudden death, we shouldn’t be surprised when they rip it off YouTube and upload it natively.

Facebook’s algorithms encourage this theft.

Hmmmmm… where have we heard this story before? Maybe it was Daily Finance back in 2010, “Viacom vs. YouTube/Google: A Piracy Case in Their Own Words“.

• On July 19, Chen wrote to Hurley and Karim: “Jawed, please stop putting stolen videos on the site. We’re going to have a tough time defending the fact that we’re not liable for the copyrighted material on the site because we didn’t put it up when one of the co-founders is blatantly stealing content from from other sites and trying to get everyone to see it.” Four days later, Karim sent a link to the other founders, and Hurley told him that if they rejected it, they needed to reject all copyrighted material. Karim’s reply: “I say we reject this one but not the others. This one is totally blatant.”

• A July 29 email conversation about competing video sites laid out the importance to YouTube of continuing to use the copyrighted material. “Steal it!” Chen said , and got a reply from Hurley, “hmmm, steal the movies?” Chen’s answer: “we have to keep in mind that we need to attract traffic. how much traffic will we get from personal videos? remember, the only reason our traffic surged was due to a video of this type.”

Yup, Karma meets irony… How very interwebs… Ok, Ok, Ok… Sorry, just one more…

Everyone’s creativity deserves to be protected. All creators should be united against the illegal, infringing and exploitative uses of their work (especially for profit) without consent or compensation.

FREE Streaming is the Digital Cut-Out Bin. Artists You Deserve Better.

Cutouts

Today’s younger consumers who missed the glory days of the record store as a cultural hub will probably have little awareness of the cut-out bin. The cut-out bin was dreaded by artists and labels alike, but it served an important function in the ecosystem and economy of record sales. This was the rack in the record store where over manufactured titles made their last stop before the trash bin.

The cut-out bin was the last stop for an album, not the first stop. This is a very important consideration in today’s digital music economy. Artists, you deserve better service from your labels, management and partners.

Having your record appear in “the cut-outs” didn’t mean the album wasn’t successful, to the contrary, many of the records in cut-out bins were by well known name artists. Many of these records contained hit songs and singles. However, for whatever reason the quantities manufactured exceeded the markets ability to absorb those units into sales. At some point the decision was made to either monetize the overstock, or destroy the overstock.

The net result of the cut-out bin was that full length albums were often priced below the cost of a current 45 rpm single. However, this pricing distinction occurred at least a year or more after the initial release of the album. An album was “cut-out”after all of the front line sales, traditional discounts and higher margin retail channels had long been exhausted. Cut-out supplies were also limited and inconsistent. In other words, it was only the most patient and adventurous consumer who benefited from this deep discount.

Honestly, who would buy an album at full price if the same exact product (sans for the cut off top right corner) could be had for less than the price of current single?

So here we are a decade and a half into the new millennium and the best “new business model” for artists and rights holders in the 21st Century Digital Economy is to start at the last stop on the value chain?  You’re kidding us, right? We wish.

So how did we get here? Well, in three words “Ad Funded Piracy.” The lowest price for a product or service sets the price floor for all other comparable products. In the case of music that price has been set at about zero for over a decade and a half. But that’s not say there’s no money being made in the distribution of music online. No, there’s actually a lot of money being made by the Internet Advertising Networks supplying the advertising that fuels the corporate profits to over half a million infringing pirate sites.

It should also be noted that the CEO of the leading ad-funded, free to consumer streaming service was also the creator of the most successful ad-funded, bit-torrent client, u-torrent. Yup, that’s none other than Spotify’s Daniel Ek. Shocker, right?

Obviously, pirates and thieves are going to pirate and steal. These people should not be the first concern of business executives seeking to expand their profits on digital platforms. Enterprise level piracy requires the political will to enforce the law against egregious digital robber barons. Anti-Piracy is an “in addition to” action, not an “instead of” action. The future of the music business must be rooted in both innovation and advocacy.

Windows work. Period.

Business decisions need to developed through common sense, innovation and time tested principles of basic economics. We’ll repeat our previous suggestion for an industry wide, consistent windowing platform strategy below.

Windowing works better when there is a reasonable amount of consistency. Our friends in the film business have been highly effective at windowing for decades and there’s no reason why it can’t work similarly well for the record business.

Every new release should have the option to determine the release windows when the record is being set up. For example the default could be 0,30,60,90 day option for transactional sales, followed by 0,30,60,90 day option for Subscription Streaming prior to being available for Free Streaming.

Windowing is not new for the record business. The industry has never had pricing ubiquity across all releases, genres and catalogs. There has always been strategic and flexible pricing strategies to differentiate developing artists, hits, mid-line catalog, and deep catalog. An industry wide initiative to re-allign time proven price elasticity is the key to growing the business and developing a broad based sustainable ecosystem for more artists.

  • Windowing allows for Free Streaming to exist as a strategic price point.
  • Windowing allows for Subscription Streaming to exist as a strategic price point.
  • Windowing allows for Transactional Downloads to exist as a strategic price point.
  • Windowing allows for artists and rights holders to determine the best and most mutually beneficial way to engage with their fans.

Windowing is the key (as it always has been) in rebuilding a sustainable and robust professional middle class that will inevitably lead to more artists ascending to the ranks of stars. Some will become superstars and legends capable of creating the types of sales and revenues currently achieved by Adele, Taylor Swift and Beyonce’. To get there however we need to abandon Stockholm Syndrome and embrace windowing that works for everyone.

Let’s Get Real About Kim Dotcom: The Indictment Clearly Alleges Felony Copyright Infringement | CPIP

Essential reading on the Kim Dotcom extradition case happening now.

Conclusion

As the Megaupload saga evolves, we’ll surely hear many more claims about the legal and moral implications of the case. Lessig is not the first, and he will certainly not be the last, to argue that Dotcom and his co-defendants should not be punished for their behavior. Nonetheless, it is important to keep in mind what allegedly happened here: Dotcom and his co-defendants made millions of dollars through the rampant theft and dissemination of countless artists’ and creators’ copyrighted works. For the sake of these artists and creators, who worked hard to produce the works that were unmercifully stolen, let us hope that Dotcom and his co-defendants are held accountable for their crimes.

READ THE FULL POST AT CPIP:
http://cpip.gmu.edu/2015/09/22/lets-get-real-about-kim-dotcom-the-indictment-clearly-alleges-felony-copyright-infringement/

 


 

 

A Tale of Two Pirates? Daniel Ek (uTorrent) and Kim Dotcom (Megaupload)

Lessig Defends Dotcom as Extradition Hearing Begins | Copyhype

Required reading regarding Larry Lessig’s pitch to help Kim Dotcom…

The second thing about Lessig’s declaration that jumps out is an apparent contradiction between Lessig and Dotcom’s defense team regarding the applicability of the DMCA safe harbors to Megaupload.

In the white paper, Dotcom’s defense team says

Even if the U.S. government’s wishful expansion of the criminal copyright law into the realm of secondary infringement were tenable (which it is not), Megaupload is shielded from criminal liability by specific “safe harbor” provisions in the Digital Millennium Copyright Act (DMCA), included in the law to protect companies like Megaupload that make efforts to remove infringing material in response to “take-down” notices issued by copyright holders

But in his declaration, Lessig asserts “The DMCA is only a defense in the civil context”. The reversal is notable.

READ THE FULL POST AT COPYHYPE:
http://www.copyhype.com/2015/09/lessig-defends-dotcom-as-extradition-hearing-begins/


 

 

Larry Lessig is Wrong, and should “Get Over It”

5 Reasons The Major Labels Didn’t Really Blow It With Napster | Hypebot

Whatever the reason, it’s bullshit. The major labels were right not to compromise with Napster. I was VP of Electronic Music Distribution at Sony Music at the time, dealing with these issues day to day. Understandably, some people may think, what does it matter if the majors were right or not? They lost. But I think its important to understand the various facets and history of these events, if only to provide perspective for issues the industry is still dealing with today.  So, at the risk of being unhip, here are Five Reasons Why The Major Labels Didn’t Blow It With Napster.

READ THE FULL POST AT HYPEBOT:
http://www.hypebot.com/hypebot/2015/05/five-reasons-the-major-labels-didnt-blow-it-with-napster.html

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

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

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

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

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;

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If Streaming is the “Solution” to Piracy, What Happens When Piracy is Streaming? Rot Oh… #sxsw

A big talking point of streaming, particularly of the Spotify variety has been that streaming is a solution to piracy, and that “access over ownership” models are the future.

Well… ok… but that assumes that piracy (of the corporately sanctioned, ad funded variety) remains a download business, while consumers migrate to the easier more accessible (free tiered, ad funded) music streaming models.

We’re told that the ad-supported free tier is the only way to attract consumers from piracy to legality. To be clear we’re not opposed to free trial periods. Free trials of 30 days, maybe even 60 days should give the consumer the ability to fully experience the value a streaming service offers. We just don’t see how the economics of ad-supported free streaming can create a sustainable revenue model for musicians and songwriters.

But here’s the bigger question. What happens when the pirates migrate to streaming over storing? Now we’re back to square one. A decade ago iTunes and later Amazon provided an legal solution to piracy that was superior in every way except one, price.

Why would anyone think that streaming would combat piracy any better than transactional downloads? Well, for the same reason piracy is, was and remains the primary source of music consumption, price. So the conversation and controversy over streaming is not one about the method of distribution, or technology. The conversation is the same as it has been for a over a decade, price.

Essentially Spotify appears to be designed to model ad-funded piracy whereby the company who can capture the largest market share would have ability to legally devalue music by delivering it to consumers for free. This math just doesn’t work. We can’t even see where the math on paid subscriptions will ever get to scale or revenue at a price point of $9.99 a month per subscriber.

So the inevitable question becomes if streaming is the solution to piracy, what happens when piracy is streaming? There are already multiple applications that are available or in development that reportedly enable users to stream music directly from BitTorrent as opposed to the need to download files to a local hard drive.

So explain to us again exactly how streaming is a solution to essentially the same service? Oh, they both need to compete on the same price point, which is free. Well, guess what, ad-supported free distribution of music is not sustainable.

YouTube is the largest free ad-supported free streaming distribution platform and it can not create the type of revenue required for the sustainability of the recorded music business. If we believe what they say, YouTube isn’t even a profitable business for Google!

So here’s the bottom line. Spotify, YouTube, Pandora and other ad-supported free streaming services are a side show to take the conversation away from the core problem, piracy. Internet piracy is big business and these side shows distract the conversation away from the fundamental truth of our economic reality… Free doesn’t pay. It’s just common sense and it’s just math…

 

Spotify Doesn’t Kill Music Sales like Smoking Doesn’t Cause Cancer…

 

BUT SPOTIFY IS PAYING 70% OF GROSS TO ARTISTS, ISN’T THAT FAIR? NO, AND HERE’S WHY…

 

Apple Announces Itunes One Dollar Albums and Ten Cent Song Downloads | Sillycon Daily News