Italian DJ Gets Huge Fine For Copied MP3s

DJ gets biggest ever fine for playing pirated MP3sA “well known” Italian DJ could be hit with a record-breaking fine of up to 1.4 million euros ($1.8 million, £968,000) for using thousands of pirate music files in a nightclub near Rome, police said on Wednesday.

Police in the town of Rieti, near Rome, said they raided a popular nightclub earlier this week as part of a king-size crackdown on piracy and seized 500 illegally copied music videos and more than 2,000 MP3 music files.

The get-tough operation, targeting radio stations and clubs around the region, was led by the Fiscal Police (Guardia Di Financa, that deal with financial crime), who also seized a large quantity of “audiovisual material” and software.

There are a lot of inaccurate reports floating around about this and we wanted to get the full story, so called up the FIMI in Italy. They told us that the copyright law in Italy dates back to 1941 but was most recently updated a year ago. Under the law the DJ was fined 100 Euro ($130, £69) per copied track, this figure was then doubled to 500,000 Euro. Only if the fine is not paid within 60 days, will it increase to 1.4m.

The reason for the doubling was unclear. Under Italian law, the precise details of the case are not made public until the case comes to court.

The DJ is free to appeal against the fine. Once the fine has been finalised, the money can be paid off monthly.

“For the MP3 files, which were kept on the DJ’s personal computer, the DJ has received a fine of 1.4 million euros,” Rieti finance police said in a statement (the fine is subject to administrative recourse). The DJ may also be subject to further criminal sanctions.

The International Federation of the Phonographic Industry (IFPI) said the fine was the biggest ever slapped on an individual for unlawful music copying and the use of copyrighted music in the MP3 format.

“We are pleased with the fine imposed by the Rieti Fiscal police,” said Director of the Italian Recording Industry Association (FIMI) Enzo Mazza.

He continued, “This deejay was touring clubs and making money out of the music he played – while those who had invested time, talent, hard work and money into creating the music in the first place did not get a cent. We hope this precedent will serve as a deterrent for those who are thinking of doing the same.”

Seeing as venues already pay money to the collection societies for public dance licenses we find the size of this fine a little baffling.

It could certainly be argued that DJs can act as ambassadors for new music (and therefore the music companies) with some high-profile DJs having a considerable influence on the record buying public.

After all, why else would record companies ply DJs with endless vinyl/promos and other inducements in the hope of getting their tunes played?

Perhaps now that times are more lean for the record companies, they’re cutting back on the freebies.

It appears the line between theft and promotion can sometimes be a blurred one, and we’re not convinced that punishing DJs with such enormous fines is the way the record industry should be protecting their sales…

Nokia, Microsoft Music shock: 3GSM

Much to everyone’s surprise, Nokia has just announced at 3GSM that they are to put Microsoft’s Media player software on their handsets.

Prior to this, Nokia has had a long running, and seemingly-solid relationship with Real Networks.

Music bought in either format will be invisibly exchangeable between mobile phones and Microsoft’s media player.

Microsoft Digital Media big gun, Amir Majidimehr was brought on stage to explain that Microsoft would be creating a software ‘bridge’ between their digital music format/DRM and OMA, the mobile worlds chosen DRM.

Nokia Microsoft music shockIn return Microsoft will also be supporting OMA DRM and AAC music format in their Windows Media player, via a plug in.

When asked about how this would affect the relationship with Real, Olli-Pekka Kallasvuo, Executive Vice President & General Manager, Mobile Phones said that as an open platform, Nokia was happy to work with all audio players. Quite if Real will be as casual and off-hand about it, is highly doubtful.

We suspect there will be much shouting and screaming at Real Networks.

Dead Granny sued by RIAA – A Serious Own Goal

RIAA issues legal action to dead womanIf they weren’t already unpopular enough with a large part of the online music file sharers, the Recording Industry Association of America (RIAA) has managed to score a spectacular PR own goal by suing a dead woman for swapping music files.

The Associated Press reported that investigators at the RIAA identified Gertrude Walton as a prolific sharer known as “smittenedkitten” and set about bringing this evil distributor of music to justice.

A federal lawsuit was duly filed, with the RIAA claiming that Mrs Walton had shared more than 700 songs through P2P networks.

But there was a slight problem: the defendant was a computer-illiterate 83-year-old grandmother who has never owned a computer.

And there was an even bigger problem: she had died the month before the lawsuit was filed.

After being notified of the upcoming legal action, the dead woman’s daughter, Robin Chianumba, faxed a copy of her mother’s death certificate to RIAA adding, “I am pretty sure she is not going to leave Greenwood Memorial Park (where she is buried) to attend the hearing”.

This king size cock-up does nothing to RIAA’s bully boy reputation. In 2003 the association successfully sued a twelve year-old girl for copyright infringement after her hard drive was found to be harbouring an MP3 file of her favourite TV show. Her working class parents were forced to shell out two thousand dollars in a settlement.

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DAB Brings Multimedia to Mobiles

DAB brings multimedia to mobiles In an announcement apparently penned by a writer playing buzzword bingo, the WorldDAB Forum promises to demonstrate “the growing synergy between DAB digital radio and mobile technologies”.

Reading between the acronyms and industry double-speak, let us translate. DABsters are getting pretty darn excited about the future and in our view, rightly so. The possibilities of using the data segment of DAB (Digital Audio Broadcasting) to economically send out data to large groups of people has a huge potential.

Following the tremendous growth of DAB digital radios in UK homes (over a million units sold), and sales of audio products growing across Europe, the telecom industry is looking to get a slice of the action.

With the ability of DAB chips to be integrated into new mobiles (or added by software tweaking to existing handsets), telecom operators are being enticed with the prospect of increasing their ARPU (that’s ‘Average Revenue Per User’ to normal people).

And what better way to get their ARPU soaring than by developing DMB (Digital Multimedia Broadcasting) technology to use the DAB platform?

Within the industry they discuss such things as “early investment offering operators the opportunity to position themselves strategically and gain a market advantage for the future” as well as enthusing about “DAB offering audio and video streaming over DAB based on both MPEG 2 transport streams and IP”.

Or to put it another way, the new technology will allow telecom providers to transmit television, video and data to mobile devices alongside existing DAB radio services and charge punters for the privilege.

The market is large. There’s already a well established DAB network infrastructure reaching 80% of Europe, with over 600 DAB services capable of reaching 330 million people in 40 countries.

LG Electronics has already launched the first DMB mobile and several countries in Europe are already lining up to start DMB trials as early as Q2 2005.

The technology sounds great. When we hear more, we’ll attempt to translate it into English again.

If you fancy a weekend talking in acronyms, pop along to the World DAB forum, Hall 5, Stands M42 – M56 at 3GSM 2005, February 14 – 17 in Cannes.
WorldDAB Forum (PDF file)

Napster To Go Launches – Will It Go with the Public?

Napster Stares iTunes in the Face and Makes Growling NoisesNapster UK has launched what they’re claiming to be the “world’s first portable subscription music service”.

Backed up by an aggressive multi-million pound marketing campaign, Napster is talking big with bold claims of “changing the music industry forever” after their service rolls out after its UK launch, with Europe following close behind.

Priced at £14.95 a month, the Napster To Go service allows users to download as much music as they like from Napster’s one million-strong catalogue and save it to a compatible portable media player.

Unlike the pay-per-track/album services offered by rivals such as iTunes, Napster users can download an unlimited number of tracks and listen to them on and/or offline so long as their membership is active.

Napster Stares iTunes in the Face and Makes Growling NoisesUnlimited music? Over a million tracks? Sounds like the original Napster. Well, there’s the catch. Once you stop shelling out the monthly fee, you’ll be listening to a hard drive full of silence, courtesy of Microsoft’s new Janus digital rights management (DRM) system turning off your access to the tracks.

There’s currently only five compatible music players – Creative Zen Micro MP3 player; iriver H10 MP3 player; iriver Portable Media Centre; Creative Zen Portable Media Centre; and Samsung YH999 Portable Media Centre – with a further 18 devices are expected to hit the market in the next three months.

Napster is predicting a veritable onslaught of compatible devices to follow on within the year.

With the hugely popular iPod notably absent from that list (strangely they don’t support Microsoft’s DRM) and users still able to download DRM-free content from music-sharing sites like Soulseek, we’ll have to wait and see if users are prepared to go along with a monthly subscription where they don’t get to keep the music.

For non-subscription members, Napster also offers the Napster Light a la carte download store that sells individual tracks for 79 pence and albums for £7.95.

Napster

MP3tunes – Robertson Returns to MP3

Robertson launches MP3TunesMichael Robertson, one of the founders of MP3.com, is to return to the world of downloaded music.

Full details will be coming out next week, but the essence is, Robertson feels ‘compelled’ to make paid-for music available in MP3 format. In his words ‘certain market forces are trying to drive consumers away from MP3 towards proprietary systems, which lock out some consumers and force everyone to buy a particular company’s player or software program.’ Can anyone think of who he’s might be aiming his comments at?

The new venture, MP3tunes, will sell high-quality music downloads online, in MP3 format – therefore not protected by DRM (Digital Rights Management). Customers will be free to do as they will with the track once it’s been paid for and downloaded.

Bleep.com has been selling MP3’s for close to a year and many were surprised to hear Steve Beckett, managing director and co-founder of Warp Records and Bleep.com say, “We still don’t know if it was the right decision,” at the recent Midem music conference in Cannes, France.

Currently it’s unclear where the music for MP3Tunes will be coming from. Given the records companies keenness on DRM, it’s unlikely to be them. It could be new artists that MP3.com promoted in its heyday.

It’s quite surprising that Robertson has friends in the music business. He irritated them considerably during the days of MP3.com and ended up being sued for an estimated $118 million in damages in a copyright infringement lawsuit brought by Universal Music Group.

Since leaving MP3.com when it sold to Vivendi Universal, with a few wheelbarrows of cash, he’s been pushing Linux as a desktop replacement with his company Linspire, originally called Lindows. It’s highly possible that he’s been locked out of being involved with music download since the sale of MP3.com

Easymusic.com Aims to Shakeup Music Downloads

EasyMusicCheaper legal download sites will shake up the online music industry, according to Easyjet founder Stelios Haji-Ioannou.

Last month Haji-Ioannou launched his easyMusic.com download site, in collaboration with online music service Wippit, and predicts that cost-efficient digital downloads will take over from CDs.

He told the BBC World Service’s The Music Biz programme: “There were people who said when I started Easyjet that £29 ($54, €42) would ruin the airline industry. Far from it – it has made some companies less profitable, but it has forced them to compete, and therefore become leaner and more competitive.”

The easyMusic.com site includes tracks from more than 200 labels, including Universal, Warner, BMG, Sony and EMI, with single downloads starting at 25p, ($0.47, €0.36) and UK users can also pay by SMS.

It also plans to includes downloads on a ‘copyleft’ – the opposite of copyright – basis, giving downloaders access to new music for free.

But easyMusic.com is just one of number of new legal download sites launched in the last 12 months to take on market leaders such as iTunes.com.

According to figures from recording industry association IFPI, legal music sites quadrupled to over 230 in 2004, and the available music catalogue has doubled in 12 months to 1 million songs.
And while IFPI chairman and chief executive John Kennedy may say it is now the “priority” of the record industry to licence music “to as many services, for as many consumers, on as many formats and devices for use in as many places and countries as it can”, music sites may struggle to cut the cost of downloads unless they can persuade the record companies to cut back on their margins.

And of course many consumers still prefer to get their music for free – IFPI calculates there are 870 million pirate tracks on the Internet.
easymusic.com

RAJAR: UK Internet Radio Listening Increases, Again

This morning RAJAR released their Q4 UK Radio listener figures, over radio, via the Internet and on TV.

For those who don’t follow this kind of thing, RAJAR (Radio Joint Audience Research) is the organisation that monitors and reports the radio listening habits of the UK population, by taking a listening diary of 32,000 people from a pool of 130,000 people around the UK. The figures sound large, and they are. It’s the largest media survey outside the US.

While the details of who is listening to which UK radio station is of great interest to those in that business, the part that caught our attention was the ‘new’ ways of listening to radio, currently via TV-delivery and over the Internet.

RAJAR-Dec-2004-Radio-via-InternetIt’s worth clarifying that the Internet figures include any listening of the radio on a computer, whether live streaming, using services like the BBC’s RadioPlayer/Listen Again, or Podcasting (download and play).

RAJAR are reporting 16.3% of the UK population, approximately 7.8m people, have used the Internet to listen to radio stations.

RAJAR-Dec-2004-Radio-via-Internet-UK-GrowthThe largest area of growth has been in people listening to UK National radio stations over the Internet. This has increased from 8.3% a year ago to 10.8% of the UK population, equating to just short of 4.8m people. It is thought that this is probably due to an raised awareness that the Internet can be used to listen to the radio, helped in no small part by the BBC pushing the service.

Due to synchronicity or just good planning, it’s of note that a new version of BBC RadioPlayer is released today. Providing very fast access to previously transmitted radio content, it comes with a feature that suggests additional programming that may of interest to the listener, based on the program they have selected to listen to. Once Internet listeners become comfortable with features like this, the number of hours listened to online will be significantly boosted.

Strangely the number of people listening to non-UK stations via the Internet has dropped 1.1% from 4.1% to 3.0%. Quite why this would be the case is a slight mystery.

While listening to the radio through a TV might sound like a very strange idea, it’s becoming increasingly popular and includes delivery over Freeview, Sky and Cable TV. Those with a DVR connected to their Freeview box are also benefiting from being able to record radio programmes and play them back when it suits them.

29.7% of the sample (equating to around 14.25m people) reported that they had, at one time or another listened to the radio through their TV. This is up 8.4% from the same month last year.

RAJAR told us that the people listening via non-traditional means appears to be in addition to their normal radio listening.

As these ‘new’ forms of radio listening are clearly gaining favour with the UK public, we feel there would be significant benefit in gaining a more detailed breakdown in how people are using the Internet to access radio. It would be of benefit to all those involved.

RAJAR are in the process of evaluating new ways to monitor radio usage. They are carrying out trials of electronic ‘listening’ devices that are carried or worn by the user. These would replace the manually completed diary version that’s currently used.

RAJAR
National stations – summary
London stations – summary
Detailed figures
New version of the BBC RadioPlayer

Midem Mobile Music Forum Report

Midem Mobile Music ForumFew topics are as hot as mobile music right now, with the Midem Mobile Music Forum the place to be on the subject. Panelists touched upon several important areas, with all attempting to understand the future direction of explosive medium. Once again, Digital Music News was on the ground to capture the chatter.

Just who is buying all of those ringtones and downloads through their phones? A knee-jerk reaction seems to always point to the younger buyer, though many close to the space are seeing activity from the older buyer. During one of the mobile music panels, Martin Peronnet (Content Director, Mobile/i-mode division of French operator Bouygues Telecom) declared that 15% of his customers are in the 35 -40 age bracket. That is a total of one million customers, with many among the most active subscribers. Others revealed similar data, with Universal Mobile Chairman Cédric Ponsot announcing the launch of a series of oldies realtones, based on major hits from the 60s. Clearly, ringtones aren`t just for kids.

With the mobile music space expanding, where do things go from here? Many were convinced that 2005 will be the breakout year for the space, with new services like full song downloads on the horizon. But many attendees urged their peers to remain focused on ringtones, the most lucrative aspect so far. Meanwhile, projections were bandied about, with event chairman Ralph Simon forecasting a $11.2 billion space by 2008 .

But more money can sometimes bring more problems, with operators, publishers, and labels swimming in disagreement. Vodafone Global Marketing Director Guy Laurence gave a clear warning to the music industry when he declated that “the music industry needs to sort out the mess between publishers and labels and figure out who owns what during the next quarter. It is the consumers that matter. The bickering has to stop.” In another panel, Chrysalis Group Chief Executive Richard Huntingford expressed his concern about Vodafone exerting too much control. “What do they know about music?” he asked, calling for the music producers to unite their efforts. Orange Marketing Handset Services & Solutions Director Pascal Thomas called for mutual collaboration, reminding attendees that the CD has been around for 20 years with almost no innovation, while the mobile business is rapidly deploying new products.

Mobile Music Forum

Music Download Giant Napster Considers Film Service

napster provide filmNapster, one of the largest players in music downloads, is considering offering a film download service. The new service would sit alongside its music offering and help to give the company a competitive edge over its rivals. The technology is already in place to download movies, so the same service model could easily apply to films, television programmes and video games, now that broadband connection speeds are getting faster and more prevalent.

In a move targeted at the younger video-game generation, Napster won’t be the first company to enter the legal movie download market. In the US, MovieLink and CinemaNow are already offering a service to a growing customer base in America. Films on these sites start at around $2.99 (£1.59 Euro 2.29). However, similar to the music industry five years ago, the film industry is struggling to keep piracy at bay with technologies that allow movies to be downloaded quickly and in full to users with high-speed Internet connections. The Motion Picture Association of America has already filed lawsuits against pirates and is cracking down on distribution networks such as eDonkey and BitTorrent.

Regardless, legal film downloads will be a winner and are the future – just like audio downloads. Since broadband, film downloads have surged considerably, and around one in four people online have now downloaded a film, according to the MPAA. Such statistics have encouraged Napster and others to keep an eye on the market.

Since Christmas, Napster UK has reduced the price of its entire music catalogue of over 1 million tracks by 20 per cent. In response to record sales, the more aggressive pricing strategy will mean that full albums now cost £7.95 (US$14.89 Euro 11.43), while individual tracks cost 79p (US$1.48 Euro 1.14) when bought by Napster subscribers or purchased with Napster Pre-Paid Cards and Online Music Vouchers. Pricing for movies has yet to be announced, but it’s obvious they’ll have to be a lot cheaper than the latest DVDs for the service to takeoff.

Napster – UK
Napster – USA
MPAA