[IP] NYTimes.com Article: With Cable TV at M.I.T., Who NeedsNapster?
From: Michael Carroll <carroll@xxxxxxxxxxxxxxxxx>
No, the RIAA probably is not happy * although they should be. The whole
point of the system is to use analog technology to avoid having to pay a
performance royalty to the sound recording copyright owner. The
traditional rationale that justified denying SRs a performance right was
that radio play is free advertising so there's a net economic benefit from
broadcasting to the SR copyright owner . (The real reason was the
political power of broadcasters). In 1995, the digital performance right
was justified on the grounds that digital technology would enable on-demand
performances of sound recordings that would displace sales so the sound
recording copyright owner needed direct compensation for the
performance. If you buy that, then you would expect the RIAA to object
since MIT's on-demand service has the same sales-displacement
potential. Of course, the RIAA should be happy because the net economic
effect is far more likely to be increased sales driven by the free advertising.
Best,
Mike
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