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[IP] more on now it's CD burning, instead of file-sharing





Begin forwarded message:

From: ritholtz@xxxxxxxxxxxxx
Date: August 14, 2005 8:23:28 AM EDT
To: dave@xxxxxxxxxx
Cc: marcaniballi@xxxxxxxxxxx, smb@xxxxxxxxxxxxxxx
Subject: Re: [IP] more on now it's CD burning, instead of file-sharing


Dave,

That stat is extremely misleading -- its not the home user that is doing all the burning that endangers the Labels -- its the illegal mass counterfeiter.

Further, there is a legal difference between a fair use copy and an illegal commercial counterfeit. Making a copy for personal usage is allowed under copyright law -- as a back up, for the car, etc. That's considered "fair use."

The statistic 29% is misleading -- The real number is 35%; That's the number, according to a study last summer, of all CDs SOLD which are iIllegal dupes:
http://bigpicture.typepad.com/comments/2004/07/35_of_all_cds_a.html

Here's an excerpt:
"The International Federation of the Phonographic Industry has published a report claiming that 35% of all CDs sold around the world are illegal copies � that's 1.1 billion pirate disks. The report also includes a list of countries recommended for government action: Brazil, China, Mexico, Pakistan, Paraguay, Russia, Spain, Taiwan, Thailand and Ukraine.

Sales of illegal discs rose 4% in 2004, though the year saw the slowest increase since 2000, an indication that increased anti-piracy activity is having a positive effect.

Clearly the biggest threat to the record industry today is not P2P networks but the more traditional CD copying seen in the the IFPI's ten priority countries where anti-piracy offensives are most needed."


Its not P2P or personal copies at home that should be of the greatest concern to the music industry -- its the massive counterfeiting operations spinning out 100s of thousands of discs for sale, both abroad and in North America.

A consumer who buys a disc, and then makes a back up (or even shares a copy with a friend) is the very least of the major labels worries.


Barry Ritholtz
The Big Picture
http://bigpicture.typepad.com/





----- Original Message -----
From: David Farber <dave@xxxxxxxxxx>
Date: Saturday, August 13, 2005 3:40 pm
Subject: [IP] more on  now it's CD burning, instead of file-sharing




Begin forwarded message:

From: Marc <marcaniballi@xxxxxxxxxxx>
Date: August 13, 2005 3:41:36 PM EDT
To: dave@xxxxxxxxxx
Subject: RE: [IP] now it's CD burning, instead of file-sharing


The Software industry has been at this a lot longer than the music

industry.
Have these RIAA idiots not thought to ask about effective copy
protection of
physical media? They probably wouldn't like the answer - It can't
be
done! A
hack will always be found and propagated globally within days.

You may have noticed that there has been very little activity from

the major
software vendors trying to shut down the Kazaas and Bittorrents of the
world; even though they "suffer" just as much if not more than the

RIAA and
MPAA together. Maybe they know something?!


Marc

-----Original Message-----
From: David Farber [mailto:dave@xxxxxxxxxx]
Sent: Saturday, August 13, 2005 2:40 PM
To: Ip Ip
Subject: [IP] now it's CD burning, instead of file-sharing



Begin forwarded message:

From: "Steven M. Bellovin" <smb@xxxxxxxxxxxxxxx>
Date: August 13, 2005 2:13:05 PM EDT
To: dave@xxxxxxxxxx
Subject: now it's CD burning, instead of file-sharing


Remember how file-sharing was the one true threat to the music
industry?  Well, now it's CD burning instead.

     ''Burned'' CDs accounted for 29 percent of all recorded music
     obtained by fans in 2004, compared to 16 percent attributed to
     downloads from online file-sharing networks, said Mitch Bainwol,
     chief executive for the Recording Industry Association of
America.
     ....

     Copy protection technology ''is an answer to the problem that
     clearly the marketplace is going to see more of,'' he added.

More details at http://www.nytimes.com/aponline/arts/AP-Music-
Retailers.html

(Aside: does anyone else remember their assault on cassette tapes
about 20 years ago, where they wanted to encode an allegedly-inaudible
signal that recorders would recognize?  That attempt failed when it
was demonstrated that the chosen signal was, in fact, quite audible
on certain types of music.)




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