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[IP] Click at your own risk





Begin forwarded message:

From: Barry Ritholtz <ritholtz@xxxxxxxxxxxxx>
Date: August 3, 2004 10:46:51 PM EDT
To: Dave Farber <dave@xxxxxxxxxx>
Subject: Click at your own risk

Hey Dave,

The issue between Apple and Real only tangentially touches upon the most significant problem of copyright law: Its a mess. It may have originally been created to encourage the creative arts, but its now run completely amuck. Its been taken over by large corporate interests, applied directly inapposite to the original purpose.

And since I do not practice law any longer, I can freely say what practicing lawyers cannot: The Supreme Court blew it. Was it through sheer incompetence? An incorrect reading of the original intent of the framers? Are they simply to old to understand new technology?

Regardless, they have made a hash of what should be a relatively simple interpretation. We will be feeling the impact of their incompetance globally for decades. Oh, and Australia was just strongarmed into changing their copyright law to suit the U.S.

The results of this are actually laughable: Aussie iPod owners are not legally allowed to transfer the songs from CDs they bought (legally) to thier iPods.

Simply outrageous.

 Heres an excerpt:


"Click at your own risk"
Julian Lee
The Sydney Morning Herald, August 3, 2004 (annoying registration required) http://www.smh.com.au/articles/2004/08/02/1091432115074.html? oneclick=true


Apple's iPod digital music player may be the hottest electronic toy in the world, but it has almost no legal use in Australia, writes Julian Lee.

The next time The Clash's I Fought the Law is blaring away on your Apple iPod music player, savour the irony that not only are you likely to be an outlaw - you are getting away with it with the help of one of the world's biggest brands.

You are not alone. There are 100,000 of you across the country and the police aren't coming after you. Yet.

Apple's iPod is the Sony Walkman of the new century. In the 1980s, Sony's cassette player revolutionised music by making it portable. Today Apple and others have eliminated the tape and have taken the Walkman digital. An iPod owner can copy hundreds - even thousands - of songs from CDs onto a box the size of a cigarette packet.

More than 100,000 Australians listen to music on such digital music players. Retailers cannot stock them fast enough. There is just one problem.

Most people know it is illegal to download songs from the internet without paying. But far fewer people know it is illegal to copy music from a CD you have legally bought.

Anyone who has copied songs from a CD onto an iPod or computer hard drive has fallen foul of Australian copyright laws, which critics argue are failing to keep pace with technological change. Copying music for personal use is generally OK in the US and Europe. But not in Australia.

"It's unlikely that the Australian Federal Police would investigate individuals for offences such as illegally copying a CD," a police spokeswoman said. "However all cases referred to the AFP are categorised and investigated as necessary."

Unlike its rivals, Apple does not allow legitimate music websites such as Telstra and Ninemsn to sell digital songs for the iPod. Because Apple does not allow Australian customers to buy songs from its US iTunes website - and there is no local site - there is not much you can do legally with an Apple iPod in Australia. "You could possibly use it to listen to music that you've recorded yourself or even to a recording made by your friend's band," says a copyright expert, Kim Weatherall, of Melbourne University's law school. "But that's about it."

Despite the law, a recent Apple magazine advertisement demonstrates how to copy songs from a CD onto a computer - and then from the computer onto an iPod. At the bottom of the ad, in small print, is the plea: "Don't steal music."

snip.



Is it just me, or is this simply beyond absurd?



Barry L. Ritholtz
Market Strategist
Maxim Group
britholtz@xxxxxxxxxxxx
(212) 895-3614
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