Spiralfrog Offers Free Universal Music Downloads

Spiralfrog Offers Free Universal Music DownloadsVivendi Universal, the biggest music group on the planet have signed a deal with Spiralfrog to let surfers download the contents of its man-sized music catalogue for free.

The New York based company Spiralfrog will be launching the new service offering Universal’s songs for download in December – but in US and Canada only – bah!

As some old bloke in the pub used to tell us, “You don’t get nuffink for free in the world, no way, not ever,” and for once he was right – surfers wanting to gorge themselves on all that luvverly free music will have to endure tons of adverts, presumably of the targeted kind.

The dreadfully named Spiralfrog are looking to take on the mighty iTunes, and have high hopes that punters will be quick to switch loyalties when download prices of nuppence are whispered in their shell-likes, compared to Apple’s current rate of 99 cents per song in the US.

“Offering young consumers an easy-to-use alternative to pirated music sites will be compelling,” enthused Spiralfrog Chief Executive Robin Kent said.

Spiralfrog Offers Free Universal Music DownloadsMaking it pay
With an estimated forty dodgy downloads to every legal download over the Internet, Spiralfrog could attract the huge number of users currently risking prosecution from pirate file-swapping services, making their money by sharing income from advertising with content partners like Universal.

Amongst the music industry cognoscenti, a few eyebrows have raised about the practicalities of the new service, with music industry specialist Josh Lawler telling the BBC: “The Internet is very much a viable media, but the trick is going to be getting it off the ground in the first place”.

“Spiralfrog will have to find a way to pay artists from the advertising dollars they are generating. But they’re not necessarily going to know how many advertising dollars there are and so some artists are going to be hesitant about it,” he added.

If Spiralfrog does get it right, the company could seriously shake up a market that saw 60 million MP3 players sold and 420 million single tracks downloaded last year.

Spiral Frog

Music Industry Grouping Proposes Digital Age Copyright

Music Industry Grouping Proposes Digital Age Copyright To Benefit Both Creators and Consumers“A wide music industry grouping representing the independent record industry, composers and songwriters, musicians and performers, music managers, music publishers and their collecting societies hosted a crucial round table meeting yesterday, chaired by the Smith Institute, to debate the creation of a progressive and innovative copyright framework that is fit for purpose in the digital age.”

Which is the official line anyway, whether it has any relevance to the real world is a mute point and potentially completely misunderstood.

After the “industry” round table, a press conference was held, with the following representatives: –

Adam Singer (Chief Executive MCPS PRS Alliance) (below right), Alison Wenham (Chairman, Chief Executive, AIM) Dave Rowntree (Drummer with Blur + Ailerons) Andy Heath (Managing Director 4AD Music, British Music Rights Board) David Ferguson (Chairman, British Academy of Composers & Songwriters) Doug D’Arcy (AIM Board, Managing Director Songlines) Horace Trubridge (Assistant General Secretary Musicians Union) Jazz Summers (Chairman Music Managers Forum, CoFounder Big Life Management)

A value recognition right
This is the whole premise of their argument. Anyone involved in the distribution of content (whether they are aware of it or not) should be considered part of the value chain and therefore subject to licensing constraints.

Music Industry Grouping Proposes Digital Age Copyright To Benefit Both Creators and Consumers The Copyright Levy laws were designed for analogue, but digital changes everything, control has passed to other players (ISPs, mobile operators, iPods etc) rather than traditional channels with physical controls. So the intent is to license these distributors. This will of course require working with them, understanding their business models etc.

It’s all about a mechanism for creating a better working relationship with distribution channels.

The groups are already lobbying government to change the law so that these new distribution channels will now be considered actual distributors as the content is adding value to the distributor, therefore the industry should get a cut of the added value.

It’s estimated that £0.5 billion has been lost in license revenues due to illegal sharing. Current copyright law actually forbids copying a CD to iPod (or any other kind of digital copy).

They agree there is more work to do and they’ll publish the report in September including transcripts of discussions held yesterday morning.

Music Industry Grouping Proposes Digital Age Copyright To Benefit Both Creators and ConsumersThese issues don’t just apply to the music industry and they’re gaining traction from other content industries and internationally.

Statistics are everything
One of the major stats used to justify their argument is that 60% of Internet traffic is file sharing, initially it was stated that this was “music sharing”, but this was changed to general sharing. There is a lot of P2P traffic and though a lot of it is probably music sharing, services such as Skype and other legal P2P services will also make up a good percentage.

They then utilise these figures that as so much traffic is P2P, users are signing up for broadband because of file sharing i.e. P2P is adding value and therefore attracting users and they want a cut of the added value.

It’s actually probably the other way around, people sign up for broadband for many reasons. Nowadays, because it’s given away free as a bundle with other services, but also because it’s cheaper than (or near enough the same price as) dial-up. Customers then find P2P is easy and therefore use it.

The margins on broadband are extremely low, Carphone Warehouse (CW) is actually losing money on every customer they sign-up, EVERY month (this will eventually change when they install their own kit in BT’s exchanges). They are buying market share. P2P doesn’t help their situation at all, they’d much rather not have users eating up all CW’s bandwidth which costs them lots of money.

Music Industry Grouping Proposes Digital Age Copyright To Benefit Both Creators and ConsumersBulldog have just pulled out of the retail market and have decided to concentrate on the wholesale side and compete with BT Wholesale. Though part of this is that their parent Cable and Wireless (C&W) are trying to consolidate to fewer larger customers (i.e. broadband suppliers who then have lots of customers), part of the problem with having retail customers is you have to constantly upgrade your network to meet their growing bandwidth needs, and this gets very expensive very quickly.

With a wholesale customer base, they only need to provide a certain amount of bandwidth per customer to the retailer, who then has to provide connectivity elsewhere and meet the growing bandwidth requirement pains.

Retailers using BT Wholesale have very small margins, equating to maybe a few pounds per month to provide all the back-end services that customers demand.

Broadband to all
Broadband is becoming a commodity and it’s the value added services that will generate revenue, and what are the value add services? Licensed content, initially likely to be TV (as in IPTV), but other services will follow.

In France broadband is available for 18 Euros per month for 24Mb/s ADSL2+, this includes Internet access, basic TV channels and all you can eat national French dialing. Yes, the companies support P2P, not because they want to, but because customers demand it. The basic service will just about pay for itself, or even make a loss, but then once customers have the broadband in place, they buy premium content and that’s where revenue comes in.

Music Industry Grouping Proposes Digital Age Copyright To Benefit Both Creators and ConsumersThis model is coming to the UK, BT’s broadband hub service is their first foray into an IP connected world, BT Vision (IPTV) is coming.

Stealth Tax
The music industry has gotten very bad press for suing consumers, so now they are trying to make the problem go away by taxing (licensing) the distribution channels and hiding the effect from users themselves.

The distribution channels would rather the traffic wasn’t on their networks in the first place, but are being put in a position (which could be driven through by law) where they have to pay for their users’ (mis)use of the network where margins are incredibly low to start with.

This means the channels will have to put up pricing (which means users notice) or absorb the costs themselves and they make even lower margins.

The music industry needs to rapidly have sensible discussions with the ISPs and other distribution channels to sort out the real economics of distribution or it’s likely a stealth tax will come into force which could kill the distribution industry in doing so, which wouldn’t benefit anybody.

ISPs Give Mixed Response On BPI Attempt to Clamp Down

BPI Clamps Down On File SharingThe BPI continued its policy of clamping down on illegal file sharing this week, when it contacted UK ISPs Cable and Wireless and Tiscali with requests to suspend 59 accounts.

BPI Chairman Peter Jamieson said, “We have demonstrated in the courts that unauthorised filesharing is against the law. We have said for months that it is unacceptable for ISPs to turn a blind eye to industrial-scale copyright infringement. We are providing Tiscali and Cable & Wireless with unequivocal evidence of copyright infringement via their services. It is now up to them to put their house in order and pull the plug on these people.”

In a statement, Cable and Wireless said “Cable & Wireless and its ISP, Bulldog, have an acceptable use policy that covers illegal file-sharing. This would normally mean that any accounts used for illegal file-sharing are closed. We will take whatever steps are necessary to put the matter right.”

Tiscali questioned the BPI’s approach – which saw the announcement being delivered to the press at the same time as the ISPs – and its evidence. In a letter to the BPI, Tiscali pointed out that “You have sent us a spreadsheet setting out a list of 17 IP addresses you allege belong to Tiscali customers, whom you allege have infringed the copyright of your members, together with the dates and times and with which sound recording you allege that they have done so. You have also sent us extracts of screenshots of the shared drive of one of those customers. You state that such evidence is “overwhelming”. However, you have provided no actual evidence in respect of 16 of the accounts. Further, you have provided no evidence of downloading taking place nor have you provided evidence that the shared drive was connected by the relevant IP address at the relevant time.”

BPI Clamps Down On File SharingIn a statement on 12th July, the BPI stated “Early responses from both companies suggest that they will suspend accounts which have clearly been used for illegal filesharing” and indicated that it could supply detailed evidence on the other 16 Tiscali addresses. In an interview on More Four News Tiscali spokesman Richard Ayres said Tiscali’s message to the record industry is “Come to us, give us the details and we’ll absolutely work with you.” Which would seem to be in contradiction of Tiscali’s own letter, which also stated that “Tiscali does not intend to require its customers to enter into the undertakings proposed by you and, in any event, our initial view is that they are more restrictive than is reasonable or necessary.”

Whatever the outcome, the action represents a new approach to the copyright battle that is focused on service providers instead of individuals. Some feel that copyright infringement is being used as a way to stifle innovation and free speech.

Copyright activist Cory Doctorow, claimed that “The BPI is basically asking to replace the “notice-and-takedown” regime that allows anyone to censor any Web-page by claiming it infringes copyright with an even harsher regime: notice-and-termination, where the ability to communicate over the Internet can be taken away on the say-so of anyone who claims you’re doing something naughty with copyright…If this regime had been in place when VoIP was invented, there would be no VoIP”.

BPI Clamps Down On File SharingCoincidentally, the BPI action comes at the same time that the (US based) EFF launched its Frequently Awkward Questions for the Entertainment Industry. The FAQ features a number of pointed questions designed to counter the aggressive behavior of US copyright protection agencies such as the RIAA and MPAA. Among them are points such as “The RIAA has sued over 20,000 music fans for file sharing, who have on average paid a $3,750 settlement. That’s over $75,000,000. Has any money collected from your lawsuits gone to pay actual artists? Where’s all that money going?” and “The RIAA has sued more than 20,000 music fans for file sharing, yet file sharing continues to rapidly increase both online and offline. When will you stop suing music fans?” In the UK, the BPI has issued proceedings against 139 uploaders in the last three years. Of those, 111 settled out of court, paying up to £6,500 in settlement.

The BPI was noticeably absent from the group of industry organizations which gathered in London on the 12th of July to discuss new ways of charging for electronic distribution of copyright material. Their proposal, that “unlicensed intermediaries – rather than consumers” should be “the target of copyright enforcement actions”, was described as “ill-conceived and grasping” by Suw Charman, executive director of the Open Rights Group.

This fragmented and seemingly ad-hoc approach to the copyright issue is doing little to help the overall debate and a groundswell of resistance to both copyright and the way it is enforced has given birth to organizations such as the Pirate Party who demand wide-scale reform of the whole concept.

iTunes Law: France Court Controversy

iTunes Law: France Court ControversyLast week the French legislature approved a new law which could radically change the landscape of digital audio. The so-called ‘iTunes Law’ is designed to break the control hardware manufacturers exert over the type of content that can be played by their digital music players and software. The result would be that companies such as Apple, Microsoft and Napster would have to make their data formats interoperable, thereby opening their systems to music from rivals. A regulatory body could be set up to police the sector.

Apple has not yet responded to this development but has previously called the bill “state-sponsored piracy.” The US based group, Americans for Technology Leadership (founded by technology companies), commented “Once government regulators take away a company’s intellectual property rights and dictate that they must allow competitors to benefit from their creations, they break the cycle of innovation that benefits consumers by destroying the incentive companies have to create new and better products.”

While it’s not surprising that technology companies would wish to defend their business models, consumers could be forgiven for finding the current plethora of differing standards, restrictive legal agreements and crippled playback formats a significant turn-off. Anyone who remembers vinyl, or even pre-DRM CDs, may recall a simpler world where all the players could play all the media and might wonder where things went awry? French Culture Minister, Renaud Donnedieu de Vabres, said “Any artist’s work that is legally acquired should be playable on any digital device”.

iTunes Law: France Court Controversy The iTunes Law does, however, leave a get-out for the tech companies. A newly-added clause permits artists to exercise control over additional DRM. In short, artists could object to their music being transferred into other formats, thereby ensuring that current practices could continue unaffected. This loophole would require renegotiation of existing contracts, something Apple et al may wish to avoid given record companies’ desire to recoup perceived losses due to piracy. Lawyers observed that the new law is complex and its impact will be difficult to judge until it is tested in court.

The bill is likely to become law in France within a matter of weeks and its progress has kicked off a debate about access to digital content in countries across Europe including the UK, Norway, Denmark and Sweden. With several countries poised to review national copyright laws in the coming months, the iTunes Law could have wide-ranging impact.

BPI vs AllofMP3: Granted ‘first hurdle’ by UK High Court

BPI vs AllofMP3: Granted 'first hurdle' by UK High CourtUK British music recording industry trade association, the BPi, has today issued a statement that they have “successfully jumped the first hurdle in its battle to have unauthorised Russian download site AllofMP3.com declared illegal.”

AllofMP3 has been really getting on their wicks for a long time, as it sells music downloads for normally under $2 per _album_ rather than the 99c per track that iTunes has made standard. Given the choice between the two prices, many people are going the cheaper route offered by AllofMP3.com.

To take action against an entity outside the UK, the BPI is required to apply to the UK High Court. This is what has now been granted.

The BPI’s next steps aren’t certain and they told us that they contemplating various options. Possibilities include taking personal legal action against the owners/directors of AllofMP3 or against the company as a legal entity.

They informed us that various treaties exist between the UK and Russia for pursuing legal actions.

BPI vs AllofMP3: Granted 'first hurdle' by UK High CourtThe argument of the BPI is that AllofMP3 has no right to be selling the music, as they aren’t licensed to do so. AllofMP3 counter that they are “authorized by the license # LS-3М-05-03 of the Russian Multimedia and Internet Society (ROMS) and license # 006/3M-05 of the Rightholders Federation for Collective Copyright Management of Works Used Interactively (FAIR).”

We asked the BPI about this and they claimed that ROMS “wasn’t a collection society recognised by the UK industry.”

It’s clear that the BPI isn’t going to just let AllofMP3 continue with what they view as illegal activity. Taking legal action across International boarders is pretty tough, as is enforcing these legal actions. The BPI’s lawyers must be rubbing their hands with glee.

ifpi’s words on AllohMP3
AllofMP3.com’s view on their legality

Anti-DRM FlashMobs Hit Apple Stores

Anti-DRM FlashMobs Hit Apple StoresSaturday saw anti-DRM protests at eight Apple stores across the USA organised by DefectiveByDesign, who are running an on-going ‘Campaign to Eliminate DRM.’

The protests took place between 10am and noon, where those involved got dressed up in brightly coloured HazMat (hazardous material) suits, stood outside the shops carrying placards and handing out leaflets.

They argue that it is unreasonable, among other things, that purchasers of music tracks on iTunes are not able to resell their music once they have finished with it – a right they previously had when they used to buy physical media.

Where as to most people DRM stands for Digital Rights Management, Defective By Design label it ‘Digital Restrictions Management.’ Their particular beef with Apple is that, because of the use of DRM, Apple are locking-in people who buy music tracks at the iTunes store.

It’s the first time we’ve heard to a flashmob being used for anything approaching useful.

Being online-types there’s loads of media to look at whether is be photos and a number of videos from Chicago and San Francisco.

Anti-DRM FlashMobs Hit Apple StoresList of Apple stores affected
Apple Store – 1 Stockton St, San Francisco, CA 94108
Apple Store – 679 N Michigan Ave, Chicago, IL 60611
Apple Store – 4702 NE University Village Pl, Seattle, WA 98105
Apple Store – 100 Cambridge Side Place, Cambridge, MA 02141
Apple Store – 767 Fifth Ave., New York, NY 10153
Apple Store – 160 Walt Whitman Rd. Huntington Station, NY 11746h
Apple Store – 6121 West Park Blvd. Plano, TX 75093
Apple Store – 189 The Grove Drive Los Angeles, CA 90036

DefectiveByDesign call to arms

MTV and Microsoft Take On iTunes With ‘Urge’

MTV and Microsoft Take On iTunes With 'Urge'Apple’s hugely popular iTunes music download service looks set to face some mighty competition in the coming months.

Although many contenders have tried to take on Apple’s market leading music download business, all of have left with a bloody nose – but the arrival of a new service by a powerful pair of rivals could be Apple’s biggest battle yet.

The new ‘Urge’ service sees industry titans Microsoft and music video monsters MTV Networks teaming up to offer a heavyweight contender to iTunes.

Unlimited downloads
Like Apple’s service, buyers will be charged 99-cents per song download, but there’s an added twist: users subscribing $9.95 a month will be able to download unlimited songs from Urge’s 2-million-song catalogue to their personal PCs.

MTV and Microsoft Take On iTunes With 'Urge'Users wanting to transfer songs onto portable music players can subscribe to the $14.95 service, with tunes protected by anticopying software from Microsoft.

Hoping to succeed where Napster, Yahoo, RealNetworks’s Rhapsody and even Microsoft’s own MSN service have failed, the partnership of the world’s biggest software company and the marketing might and ‘cool’ of MTV could prove a formidable challenge to iTunes.

“They are probably the strongest contender to come into the market for some time,” commented Phil Leigh, a senior analyst for Inside Digital Media, in Florida.

Geoff Harris, product unit manager for Windows Media Player at Microsoft, pointed out that although that other music subscription services have millions of songs on tap, that didn’t help listeners discover new tunes that they might like.

MTV and Microsoft Take On iTunes With 'Urge'Noting that consumers have embraced satellite radio because it features dozens of channels with music chosen by experts, Harris reckoned that this could prove a real advantage to the Urge service.”You’ve got the experts in music here from MTV doing programming across a whole bunch of genres,” he commented.

As well as music files, subscribers to Urge will be able to download video streams of MTV Network programs, including shows from MTV, VH1, and CMT, a country music video channel. Yee-hi!

Sod the iPod
But there is a serious fly in the MP3 ointment for the new Urge service: crazily, its music downloads won’t be playable on the Apple iPod, despite the player hogging around 70 percent of the market for portable music players. Instead, users will have to invest in rival players like those from Creative Technology.

MTV and Microsoft Take On iTunes With 'Urge'Although Harris admitted that the iPod incompatibility issue was “a hurdle that we have to get over” (an understatement, we reckon!), he added that, “there’s a long way to go in this market,” pointing out that the zillions of iPods sold still represent a fraction of the potential audience for music downloads.

Jason Hirschhorn, MTV Networks’ chief digital officer, insisted that Urge wasn’t interested in taking on Apple.’It’s not about beating Apple, it’s not about beating Rhapsody,” he said, pointing out that MTV has already teamed up with Apple elsewhere to flog some of its TV shows as downloads on the iTunes site.

We believe you, Jason.

Windows Media Player 11 beta
Although Urge is wholly owned by MTV Networks, Microsoft has committed ample resources to the service, embedding the software in its new Windows Media Player 11 beta, a spruced up upgrade to its media software offering iTunes-like integration.

The new player adds browsing by album cover and a search box to find media as well as offering improved content management, with less clicks needed to burn a CD, for example.

Urge will only be available initially in the United States, with the beta player linked to US-only music stores until the final version of Windows Media Player 11 is released.

Jonathan Arber, a research analyst with Ovum in London has high hopes for the service, “I think there’s a real chance we will see them become the top of the second tier below Apple.”

Assuming the thing is stable and doesn’t come with a zoo-full of bugs, of course.

Urge
Windows Media Player 11

NTL And BitTorrent Announce P2P File-Sharing Trial

NTL And BitTorrent Announce P2P File-Sharing TrialMajor UK consumer broadband providers NTL are teaming up with BitTorrent, the developers of the world’s most popular peer-to-peer (P2P) application.

The download service will offer a large variety of licensed video content for purchase in the UK, including popular films, music videos and TV programmes.

BitTorrent’s enormous bandwidth-hogging qualities has proved expensive for some Internet providers, but NTL are looking to speed delivery and reduce network costs by using CacheLogic’s caching technology which stores frequently downloaded files within the NTL network.

NTL believes that this combination will provide ultra-fast download speeds of broadcast quality content – or, as Kevin Baughan, their director of network strategy liked to call it, a “transformational video downloading experience.”

BitTorrent is already firmly established as the de facto tool of choice for connoisseurs of pirated TV and movie files, with BitTorrent traffic estimated to hog around a third of all internet bandwidth, and an even higher ratio on NTL’s network.

NTL And BitTorrent Announce P2P File-Sharing TrialNaturally, rights holders and movie heavyweights weren’t too chuffed to see their content whizzing around the Internet for gratis, and quickly hired in squadrons of lawyers to apply pressure on BitTorrent.

Late last year, a deal was struck with the Motion Picture Association of America to remove copyrighted material from the BitTorrent.com search engine, and the company has since been in talks with movie moguls and Internet service providers to find ways to use the software for the distribution of legal, paid-for downloads.

“NTL has seen a huge percentage of their traffic in the BitTorrent protocol,” said BitTorrent President Ashwin Navin. “But in the past, neither rights holders, ISPs nor BitTorrent derived any economic benefit from it.”

NTL’s trial is expected to start next month and run through the summer, with a small initial sample group of around 100 homes.

BitTorrent
ntl

Anyone Got A Job For Free Culture IP Lawyer?

Anyone Got A Job For Free Culture IP Lawyer?Inga Chernyak, until recently, had a legal clerk job at an IP law firm in New York City. On the 26 January she was called in to the firms HR department and fired.

Why does that make news in Digital-Lifestyles?

Her claim is that she was told it was because she’d appeared in an article in the New York’s Village Voice, discussing the Lawrence Lessig-inspired Free Culture movement. The article came out in the Village Voice on 10 January. She was fired on the 26th.

She also assets that they told her that her “views about what the firm does were incompatible with…what the firm does.” Her views on the expansion of Copyright laws are that they place overt restrictions on the population as a whole.

Anyone Got A Job For Free Culture IP Lawyer?There may be those who think that it’s pretty obvious that is you work in an IP firm; wanting to train as an IP lawyer; you hold views that IP law is over restrictive; then have your name and photo featured in an article that starts by describing how to circumvent CD DRM protection and are a founder of NYU chapter of the Free Culture movement – you’re going to end up in trouble said IP law firm. Others cry foul.

Given how the blogging world works, I’d imagine that this incident will far from harm her career, and as she says in her own words, “as a member of the Free Culture movement, and a young woman of 19 without children to support, I can afford to take this blow in the name of progress.”

Take a stand against DRM? Get fired from your day job

No To DRM Say UK NCC To MP’s

No To DRM Say UK NCC To MP'sIn its submission this week to an MPs’ inquiry into Digital Rights Management (DRM), the influential National Consumer Council (NCC) spelt out its concern at current self-regulation, and called for new laws to ensure consumers’ rights to use digital content are protected.

DRM technology is increasingly being used in products such as CDs, DVDs and music downloads to control or restrict the use of copyrighted digital works. As the recent Sony/BMG case illustrates, this is proving problematic for consumers. It was recently discovered that the ‘anti-piracy’ software included by Sony/BMG on a CD by country rock group Van Zant, included ‘cloaked’ files that installed a proprietary player to play the CD. The user was then unable to uninstall the player.

No To DRM Say UK NCC To MP'sPeople are finding they can’t play the DVDs they’ve bought abroad or make compilations of material that they have purchased for their own use. The NCC believes that the use of DRM can and is already constraining the legitimate consumer use of digital content. It is also undermining consumers existing rights under consumer protection and data protection laws.

The NCC’s document says, “Intellectual property law needs to find a fair balance between protection and competition – too much or too little IP protection will lead to a loss of economic welfare. In recent years it has become clear to us that this balance is not being achieved.”

No To DRM Say UK NCC To MP'sJill Johnstone, Director of Policy at NCC said; “Because of the current situation, consumers face security risks to their equipment, limitations on their use of products, poor information when purchasing products and unfair contract terms.

“Whilst we recognise the value of intellectual property rights, we have little confidence in self-regulation by the industry. We welcome this opportunity to present our concerns to MPs and hope that this will ultimately lead to an improvement the rights of consumers.”

Read NCC DRM submission to MP’s (PDF)