The case continued Friday in the Federal Court, with iiNet’s chief regulatory officer, Steve Dalby, taking the stand following his first appearance Thursday afternoon.

Yesterday, Dalby recalled having difficulty in understanding some of the terminology utilized by AFACT in the infringement notice spreadsheets it submitted to iiNet.

Dalby told AFACT barrister Tony Bannon that iiNet had told AFACT there was an issue with some items being unclear in the spreadsheets.

“There was no legend associated with this spreadsheet. I had to make an assumption. We asked AFACT for more information,” ITNews quotes Dalby as saying.

Bannon then criticized Dalby for not being specific and expecting AFACT to guess at which terms were not understood, but Dalby pointed out that he expected AFACT to contact the ISP for clarification.

Further discussion took place on the issue of IP addresses and how iiNet allocates them to customers. Time and again, Dalby explained that IP addresses are allocated to a customer account and they do not necessarily represent any particular computer that the customer may use.

In what is becoming a recurring theme, today Dalby told the court that iiNet had no intention of forwarding AFACT’s copyright infringement notices to its customers purely on their allegations.

“Our position was that we should not be doing AFACT’s work,” said Dalby. “If we had received authorization by way of court order, that would have changed our position.”

AFACT went on to tender a draft e-security code of practice from the Internet Industry Association (IIA) created earlier this year. It proposes that in future, ISPs could contact, and maybe even disconnect subscribers, who have malware-ridden computers which negatively affect networks. Despite Justice Cowdroy indicating that its relevance was peripheral to the case and wouldn’t but much use when he comes to make his decision, it was allowed.

Dalby said he believed that iiNet had not been involved in the draft and he was personally unfamiliar with it. CW reports that he had been quoted on the issue in the media, but Dalby said that it was a regular occurrence for the press to call him to comment on issues he was not yet familiar with, and in this particular case his comments were “neutral and non-committal”.

In September we reported that Australia’s Internet Industry Association (IIA) felt it had something to offer these court proceedings. IIA applied to be amicus curiae, a ‘friend of the court’, but AFACT objected, insisting the group would not be impartial and would favor iiNet.

The decision on whether this will be allowed or not has been delayed until next week.

In an indication that AFACT still objects to an IIA appearance, Bannon said that “….there’s a conceivable possibility they don’t want to add anything other than to say ‘hear, hear’,” apparently to the amusement of the court.

AFACT barristers are scheduled to make their closing statements next Monday afternoon.

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Continuing first from yesterday’s proceedings, ITnews reported an exchange between iiNet CEO Michael Malone and movie industry barrister Tony Bannon, over Malone’s understanding of BitTorrent.

Malone told the court that while he had an understanding of the protocol, he had never used uTorrent, the client used earlier by Bannon to give the court a technical demonstration. Bannon’s demo used iiNet’s own tracker (an installation of RivetTracker) which it has used to distributed several press releases which all relate to the trial.

It is difficult to see where Bannon was going with his questioning, but it began with an admittance by Malone that the torrent files were intended to be used by people with access to a BitTorrent client. Malone then denied that the releases were specifically targeted at iiNet customers, noting that anyone can access them

Under further questioning regarding the inclusion of a note in the torrent files dialogue box indicating the files were non-pirated, Malone reiterated that while he had an understanding of the BitTorrent protocol, he did not have experience of the client used by Bannon

Then, with an apparent deafness towards Malone’s perfectly clear response, and demonstrating an apparent ignorance between a BitTorrent client and the BitTorrent protocol, Bannon sought to press Malone into admitting to his 400,000 customers that he didn’t understand BitTorrent.

Again, Malone stated that he didn’t know how to put a comment on a torrent file, but Bannon persisted in trying to get Malone to admit that he knows how uTorrent 1.8.4 works, but Malone said he’d never used it. There could, however, be people in iiNet who had, he conceded.

Bannon then said that in the last 24 hours the torrent file functionality for the press releases had been removed. Malone said that if it had, he certainly hadn’t requested it, asking Bannon how he was attempting to access the Internet, suggesting that a firewall in the court was stopping the transfer.

TorrentFreak’s checks show a single seeder on each torrent and each one worked absolutely perfectly.

Moving on to iiNet’s handling of copyright infringement allegations, iTWire reports that Bannon tried to paint a picture that iiNet’s policy of forwarding AFACT notices to the police was little more than a cynical attempt to pretend that they were dealing with them, when in fact they were not.

For the umpteenth time in this case, Malone said that he was under no obligation to act on mere allegations from AFACT which were not backed up by a court order.

“AFACT was telling us to disconnect customers without further ado,” said Malone. “The question is, what should we do when confronted with illegal activity? And our response is, report it to the proper authorities.”

While iiNet said it had always been policy to forward the notices to the police, ITWire notes that evidence emerged that the company had sent notifications twice, although there was no indication of how many infringement notices were in each batch.

Yesterday Malone said that the evidence provided by tracking company DtecNet’s investigation was “compelling” and should be reviewed by a third party and the courts. In the face of this statement, Bannon asked Malone why he had not taken action based on AFACT’s allegations.

“This is a right,” said Malone, “not an obligation of iiNet.”

These days arguments in favor of anti-piracy action seem almost incomplete with the obligatory reference to child pornography, as we heard in yesterday’s propaganda piece from CBS. This case is no different.

Bannon put it to Malone that if the evidence provided was “compelling” and Malone had received “compelling evidence” that an iiNet customer was accessing child porn, would the company allow the user to do so “day after day?”

Of course, any allegations of this nature would involve the police, and the police or the courts would do the investigation, get the proper paperwork and order iiNet to comply, which they naturally would. Malone said that on mere AFACT allegations of civil infringement (as apposed to an infinitely more serious and jailable criminal offense), such action would not be permitted.

Bannone then pressured Malone to admit that “…you’re happy to tell your customers this from the witness box,” that iiNet will not disconnect subscribers for infringing copyright.

At this point one has to wonder if Bannon is deaf or just plain stubborn. It is absolutely crystal clear to anyone following these proceedings that yes, iiNet will disconnect customers for copyright infringement, providing there has been due process and a court has ruled that disconnection is appropriate.

The case continues tomorrow.

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“We’re starting a BitTorrent tracker to show artists how to properly use P2P technology in order to gain access to a cheap and efficient marketing and distribution network,” Pirate Party spokesman Jake Daynes explained to TorrentFreak.

Just a couple of days later and already Canadian record label Thorny Bleeder Records is showing its support for the party and its new RivetTracker-based distribution system.

Thorny Bleeder Records is an independent record label and the fruits of a partnership between Art of Dying’s Jonny Hetherington and Greg Bradley along with industry veteran Brian Thompson. They aim to offer artists new options in today’s music business.

“As a show of support for the Pirate Party of Canada, Thorny Bleeder Records are proud to announce that our sixteen track, multi-artist Get Thorny compilation is now available for free on their website,” announced the label.

TorrentFreak caught up with Brian Thompson to learn more about their decision to embrace the Pirate Party and their tracker.

“Thorny Bleeder Records strongly believes in the culture of file sharing as a benefit to an artist’s development and to the growth of their fan base,” Brian told TorrentFreak. “It’s become increasingly difficult and expensive to have a band’s single added to a radio station’s playlist, so the Internet has quickly become the next best thing for new music discovery.”

“As a an artist and a record label, your number one goal is to be heard by as many people as possible. BitTorrent provides the perfect distribution for music discovery to occur, it’s today’s version of the record store listening post. Pirate Party’s new BitTorrent tracker provides us with the perfect avenue to expose our artists to an entire new audience that would otherwise be unaccessible,” he added.

Brian told us that Thorny Bleeder also supports the Pirate Party in their fight for copyright reform.

“The world has changed dramatically since these laws were introduced eons ago and it makes no sense to continue adhering to these old laws that no longer support creativity and distribution in the digital reality of today and tomorrow,” he added.

The compilation ‘Get Thorny’ can be downloaded here.

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James Monaghan from the company has recently taken part in the BERR consultation on file-sharing so has been watching this week’s developments closely. The government has set a deadline for responses to its plans (which include disconnecting alleged file-sharers from the Internet) of 29th September and, like many others, James has responded to the new statement by sending his thoughts in to the consultation. His feelings will resonate with many TorrentFreak readers. Here they are in full;

Monaghan Media Response To Latest BERR Statement

There are an estimated 7 million file-sharers (your figures) in the UK, and you want to reduce that number by 70%. 70% is 4.9 million. A fair trial is fundamental to democracy. To fairly prosecute 4.9 million citizens is an optimistic suggestion when currently Her Majesty’s Court System holds 200,000 criminal cases per year. This would suggest it is going to take 25 years to reduce file-sharing by 70%. This is only dealing with the 70% of today’s file-sharing with no regard to the expected increase of file-sharing. Research suggests that the number of file-sharers increases every day, 63% of people aged 14-24 now admit file-sharing, with 83% of those file-sharing every day.

To prosecute 4.9million people you will also need evidence. No evidence exists. Anywhere.

The ‘evidence’ championed by the failing sector of the media industry – the physical distribution sector – has been proven time and time again to be incredibly flawed. I refer here to the elderly couple who the copyright industry began legal proceedings against for downloading hardcore gay nazi pornographic film ‘Army Fuckers’ (1) among others. I also refer to the law firm Davenport-Lyons, who sent out 15,000 letters telling people to pay a small ‘fine’ (usually about £600) and they’d make a lawsuit against them (for file-sharing) go away. This is what is known as ‘extortion’.

Luckily for the consumers, and all of those of us who enjoy freedom from criminals, Davenport-Lyons were quickly picked up by BBC’s Watchdog program, and promptly disappeared.

I note though, that in today’s (25th August 2009) response, you don’t mention a fair trial. In fact you don’t mention any opportunity for those accused with this flawed and faulty evidence to defend themselves. Which rather gives the impression that there will be no opportunity for the accused to defend themselves. What you do say is this:

“…the previous proposals, whilst robust, would take an unacceptable amount of time to complete in a situation that calls for urgent action…”

So what you’ve stated, is that it is impossible for your draconian anti-file-sharing measures to be implemented fairly. Which is correct. What this means, is that this route of anti-file-sharing legislation, the ‘criminalise-7-million-of-your-citizens’ route is wholly unfeasible, impossible to implement without massive cost to the tax-payer, and impossible to implement without massive damage to the progress of the UK’s creative industries. What this does not mean is that instead of fair trials and the assumption that the accused are innocent until proven guilty, everyone should be presumed guilty until they are proven innocent. This is perverse as the accused would not then have the opportunity to be proven innocent.

In my previous contribution to this consultation, I briefly touched upon the fact that the industry has never been able to show any loss, financial or otherwise, has been caused by file-sharing. I’ve gone into a little more detail here, which shows, with numbers, evidence, and references, (rather than the usual hearsay provided by the industry) to show that there isn’t a financial loss to any of the most downloaded films this year (so far).

You’ll note that all of the top ten most downloaded films so far this year (3) are all incredible commercial successes, each making hundreds of millions of pounds. Watchmen, the most downloaded film with 16.9 million illegal downloads, still made $185,248,060. How can anyone argue that file-sharing has caused it a financial loss? Benjamin Button was the second most downloaded film so far, being downloaded 13.1 million times illegally. It made $332,860,689. A financial loss? I think not.

What we are seeing here, is the end of one type of business: the physical distribution of digital products. We are in a world where DVDs are old technology, in less than ten years Blu-ray disks will go the same way as LPs, as tape cassettes, as VHS tapes, and as DVDs. The internet however, has outlived the DVD. And it will outlive the Blu-ray disk. And it will outlive whatever format ‘succeeds’ the Blu-ray disk. The internet is here to stay. What we are seeing in the Creative Industry is a very small sector (distribution), which makes massive money from a system which is made redundant by the internet.

It is not the responsibility of the government, of the ISPs to prop up a failing business. If a business is failing, it is the responsibility of that business to look at itself, at its actions and rethink its operations in order to save itself.

It is wholly unfeasible to enforce any rule against filesharers, and impossible, literally impossible to enforce according to law.

I reiterate the statement I made in my first contribution to this consultation, the majority of my audiences watch my films over the BitTorrent system, a system so revolutionarily brilliant that it means I, an independent film-maker, can distribute a film in full High Definition to hundreds of millions of viewers with absolutely no cost incurred to me, where normally global film distribution costs several tens of millions of pounds. I think it is acceptable to say then, that my company and I are at the forefront of the industry.

As someone who uses file-sharing systems, not only to gain access to media which I never could’ve before, but also to distribute my own contributions to the UK’s Creative Industry, I am utterly shocked and appalled by the lengths to which your government will go to make my audiences, my peers and myself criminals.

This is not the end of the creative industry. I can say this with great confidence, as someone working in the industry. The industry is currently undergoing a change, a natural change, a change that it must undergo. Although this is not the end of the creative industry, it is the end of a disgusting sector of the industry which has been a parasite on the industry for the past half-century, milking it for as much money as it can, promoting false inflation of the rest of the industry only to increase its own profits.

The criminals here are not the teenagers downloading films and music, but the global corporations that extort money from artists and consumers alike, and who operate in a manner not unfamiliar with sinister global criminal networks.

It is the remit of democratically elected Government to protect the citizens, film-makers, and business-owners from the failing business model which threatens freedom, civil liberty, and creative business’ economic future.

Finally, I take this quote from your statement today:

“…As ever we would need to ensure any such measure fully complied with both UK and EU legislation…”

Disconnecting people from the internet does not fully comply with EU legislation. In fact it directly contravenes EU legislation. I am referring to amendment 138/46 which was adopted on the 6th May 2009 in response to French attempts to implement a system almost exactly the same as the one proposed here. A system which was declared unconstitutional by the French High Court. You will be aware that amendment 138/46 declared that access to the internet was a fundamental human right.

Not only do your proposals directly contravene European Law, but the certainty of wrongful sanctions being taken against citizens opens the government up to legal action. The fact that cutting off an entire household’s internet punishes everyone in that household and not just the ‘accused file-sharer’ is near-certain to breach the government’s ‘Every Child Matters’ directive where children are punished for others’ actions. The probability of cutting off the internet of those who need the internet to survive, the long-term sick, for example, or the disabled, further opens up the government to attack.

Is this the route that my government wants to pursue? Or should the government perhaps listen to its’ citizens’ outrage and stop neglecting them in favour of the power and massive wealth offered by the global corporations who’s only motivation is furthering said power and wealth?

Yours faithfully,
James Monaghan

Monaghan Media

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The apparent strategy:

1. Outlaw file sharing
2. Outlaw personal encryption and anonymization services
3. Set up a global, privately-run Internet surveillance program to spy on everybody all the time without a warrant — run by ISPs and paid for by the taxpayers
4. And finally, get the authority to block anyone from the Internet entirely, without the involvement of police, courts or any verifiable trail of evidence

We can not let this happen.

“It is poor civic hygiene to install technologies that could someday facilitate a police state.” – Bruce Schneier

One of the main reasons why the recording industry are currently succeeding in this hostile takeover of the Internet, is that most people simply don’t understand what file sharing is, or why it matters to them in the first place. Whenever civil liberties are sacrificed, it is always on the bonfire of ignorance. We need to educate the world – neighbors, parents, judges and lawmakers – as to why the Internet must remain free, neutral, and uncensored.

It sometimes helps to explain that a file sharing technology like Bittorrent is the digital society’s equivalent of the wheel. It allows fast and easy transportation of data between users and businesses alike. But like the wheel, file sharing needs a stable, flat surface to perform at its best. In this analogy, The Pirate Bay is nothing short of the largest, best maintained, and most stable network of such ‘digital roads’ in the world. And it’s free to use for anyone, at any time, for any purpose.

Naturally, as is always the case where people congregate in a free society, some of the people who drive their wheeled carts on this network of roads will be carrying things in their carts of questionable quality, purpose or origin. In any system or society that is based on freedom rather than censorship or distrust, there is no question that individual transgressions can take place. This is the most basic cost of liberty.

As a digital society in its teens, we have yet to realize the enormous potential of file sharing in culture, education, knowledge sharing, and business. But already, we are seeing massive opposition against it from the likes of IFPI, the RIAA and the MPAA. This opposition, of course, stems from some of the aforementioned wheeled carts transporting ‘questionable goods’, in the form of copyrighted material.

The ensuing battle has been disguised as a legal matter concerning rights holders and ‘pirates’, but that is only the tip of the iceberg. It is true that the recording industry wants to stop criminals, but they are attempting to prohibit the wheel and all building of roads to pull it off. These lawyers are prepared to sacrifice our liberties, our privacy and our digital freedom in order to reach their goal. It is a grossly disproportionate and misdirected attack, and it has already begun: Once the verdict of the Spectrial was in, the Swedish anti-piracy office immediately began issuing legal threats against other file sharing networks. They are bulldozing every street and burning every car to prevent any possible (mis)use of the wheel. And worse yet – we are letting it happen.

The case of The Pirate Bay was not a case of artists vs. freeloaders, or even the recording industry vs. pirates. There were no artists on the accusing side, nor were there any pirates on the defending side. It was, and is, a case of misguided frustration by industry executives and lawyers, directed not against the actual violators of copyright law, but against the most outspoken proponents and enablers of a fundmental digital technology. A technology that allows fast and easy transportation af data – all data – between users and businesses alike.

We must never blame the network for the actions of individuals. Both rights holders and lawmakers must respect the fundamental principle of personal, individual responsibility. Let each peer be responsible for his own actions, just as every driver is liable for his own car.

The Pirate Bay is not illegal. File sharing is not illegal. Using file sharing for illegal purposes is illegal. The difference may be subtle to a layman, but in legal terms, the distinction is clear as day. The fact that the judges in the Pirate Bay case failed to recognize this, is a judicial travesty bordering on flat out corruption.

It cannot be stressed enough: this is not a question of copyright, of music, or of piracy. This is a question of a private organization now aiming to subvert several of the most important digital inventions since the World Wide Web, and our judges and politicians turning a blind eye in a staggering display of ignorance and corruption. This fight is about much more than The Pirate Bay. When our liberties are taken from us, we must rise, united in one voice, and fight for them.

It is a fight for basic digital liberties. It is a fight for our right to privacy. It is a fight for net neutrality. There is no getting around it. This is the fight of our generation, and it is too important to lose.

This is a guest post by Jens Roland. Jens is a computer scientist by training, but a technology forecaster by trade. He has worked at international think tanks as a consultant and researcher in emerging technologies and has written more than 300 articles and a book on the subject.

Article from: TorrentFreak, check out our new blog at FreakBits.

Glickman’s departure comes as many see current MPAA tactics starting to backfire. In the important teen and twenties demographics the MPAA’s messages are not getting through, and in many cases are driving resentment against them. The negative PR generated by The Pirate Bay case, initiated after intense pressure was put on the Swedish government by the MPAA (via the White House) has also worked against them, as have various pushes globally to get ISPs to agree to a 3-strikes (or ‘graduated response’) policy. Others claim that Glickman’s leadership has been lackluster, his public speaking gigs ‘bad’ and ‘boring’, and hint that the short contract extension is because of this.

Of course, there is also precedent for the head of the MPAA being let go after embarrassing or damaging public relations activities. Glickman’s predecessor, Valenti, retired not long after a showdown between the MPAA and studios over an MPAA screener ban in late 2003. In that case the MPAA backed down after a court injunction went against them, and before a massively damaging antitrust lawsuit could be brought.

In the last few years, the MPAA has become the source of much derision. In choosing a successor for Glickman, the selectors will have to look hard to find someone able to bring the industry into the 21st century (or even the latter half of the 20th) and recapture the trust and credibility of the general populace. Meanwhile, to Glickman, we utter the words made famous by MPAA member NBC, “You’re Fired!”

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Prosecutor Håkan Roswall begins by saying that Tobias Andersson from Piratbyrån, John Stéenmark and police officer Jim Keyzer no longer have to testify. The Judge asked the Prosecution about Jim Keyzer, but they said they hadn’t been able to get hold of him but had sent an e-mail to try and find out. The defense says they will hear Tobias Andersson tomorrow.

The Prosecutor then further modified the charges against the defendants. He no longer claims that all The Pirate Bay’s components are necessary in order to share files. He further added to the charges that TPB allows its users to upload torrents and that TPB then store the torrents on their server. There was no immediate objection to the changes. IFPI lawyer Peter Danowsky introduced yet more new evidence, but the defense won’t comment on it until they have had a chance to examine it.

First up to testify was Magnus Mårtensson, a lawyer for the IFPI. The court heard that Mårtensson has been working for the IFPI for 15 years, specializing in anti-piracy work. He explained that he worked gathering evidence against The Pirate Bay by downloading various music albums via .torrent files he obtained from the site using the Azureus client.

Mårtensson’s evidence gathering equipment consisted only of screenshots, as quickly became apparent. Mårtensson’s technological ability was called into question and he acknowledged that it was difficult for him to answer some technical questions.

When asked if he had any network equipment logging exactly what was going on ‘behind the scenes’ of any of his sample downloads, he replied that he didn’t. When asked if he verified in any way during the download process that he had any contact with The Pirate Bay’s tracker, again the answer was negative.

Defendant Gottfrid Svartholm questioned Mårtensson on his evidence gathering techniques. The following questions are particularly interesting as they show that the prosecution has no evidence that the Pirate Bay trackers were actually used.

Gottfrid: Before taking the screenshot, did you turn off DHT and Peer Exchange?

Mårtensson: DHT was obviously on. I wanted to be like an average user.

Gottfrid: So in other words, you can’t check if the tracker was used?

Mårtensson: The tracker address was visible on the screen. From that I assumed it was used in some way.

Gottfrid: But since you had DHT on, you have no possibility to state to the court as to whether The Pirate Bay’s tracker was actually used or not?

Mårtensson: No.

It seems unthinkable that the Prosecution has gathered ‘evidence’ in this way. Mårtensson was further asked if he was aware that Google can also act as a torrent search engine. The IFPI lawer seemed to be unaware of that, and he stated that they never had any problems with Google.

After a short break ex-policeman Magnus Nilsson of the Anti-Piracy Office was next up. He described how he downloaded several .torrent files from The Pirate Bay as part of his evidence gathering, and he explained in detail how one downloads files with BitTorrent. Nilsson told that he downloaded several games and movies, all with uTorrent.

Then, Nilsson came out to say that he was sure that a majority of the content on The Pirate Bay was copyrighted. However, he had no evidence that supports this claim. The defense lawyers pressed him on this and he had to cave in, “I have no documentation as to the claim that most material is copyrighted. It is just an opinion,” Nilsson said.

One of the defense lawyers (Carl Lundtröm’s) used the same line of questioning as he did with Magnus Mårtensson. He asked what BitTorrent program Nilsson used. Then he asked if he downloaded that program from The Pirate Bay. When told no, he asked a couple of questions about the download process to show that TPB isn’t involved in the actual transfer.

“So the actual downloading [of the pirated works/files] happens outside of TPB?” Carl Lundström’s lawyer asked. “Yes,” Anders Nilsson replied.

Gottfrid Svartholm, one of the defendants, asked Nilsson to confirm that he is an investigator working for an entertainment industry lobby group, and that the lobby group gave him instructions on what files and works to investigate. This was obviously to clarify to the court that Anders Nilsson is not an objective investigator.

After only two hours the court decided to end the hearings for today. Tobias Andersson of Piratbyrån and John Kennedy of IFPI will be heard tomorrow.

More news tomorrow

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While some producers, directors and actors actually believe that BitTorrent and other filesharing tools help to boost the fanbase of films and TV-shows, this group disagrees. Signed by a staggering 116 names including the likes of directors Sir Alan Parker, Mike Leigh and supported by several entertainment industry groups, the letter claims:

At a time when so many jobs are being lost in the wider economy, it is especially important that this issue be taken seriously by the Government and that it devotes the resources necessary to enforce the law.

Ignoring for a moment that notably they make no mention of job losses in their sector, one of the problems with their demands is that the law they seek to enforce is civil law, not criminal.

Beyond employing judges there is nothing more that the government can do to enforce it. That is the problem with copyright law, it’s hard to know what’s legitimate and what’s not, what can be copied and what can’t, without checking with the rights holders first. This was exemplified perfectly earlier this year, when the IFPI sent out takedown notices for Travis tracks, despite the actual copyright holders, Travis, having already given permission to distribute.

The bigger problem comes from their data, the 98 million illegal downloads and streams. While we know TV shows are popular, our own data shows that British TV rarely features in the top 10. Movie downloads are more fleeting, with a certain bias towards the newest films, with a few exceptions. Their figures are also questionable; while we count downloads, we can’t quantify them with a figure for the UK.

Yet, if their stats on downloads are of questionable accuracy, it’s nothing compared to the power they ascribe to the ‘almighty ISP’. They believe that ISPs have the power to stamp out file sharing, stopping people from downloading TV shows and movies; they just need a prod. In this belief they are sadly mistaken.

Again, recent news has shown how hard it is to control access to even one image in the UK, on a cut-and-dried subject like child pornography. Being able to determine if something is infringing copyright or not would require huge lists of content, and real-time examination of all Internet traffic. Not just deep packet inspection, but an all-invasive Big Brother monitoring system, beyond the dreams of even the most totalitarian dictator.

Of course, those that bother to check facts know that not only is such a thing illegal (criminally illegal, not just civil) but that the tools they’ll want to use just don’t work. The problem is highlighted by Michael Malone, CEO of ISP iiNet, currently under attack from various movie studios, “I think they genuinely believe that ISPs have a secret magic wand that we are hiding and if we bring it out we can make piracy disappear just by waving it.”

And, when just this year it was reported that UK commercial TV broadcasters “enjoyed a bumper April with the highest viewing figures in five years”, that total TV viewing was up 10% year-on-year, and “the valuable yet hard-to-reach 16 to 24-year-old demographic [i.e the typical file-sharer] watched 4.9% more commercial TV in April year-on-year and saw 12% more ads,” you have to wonder exactly what the problem is.

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In recent times, the Pirate Party has been more concerned with government actions that affect ordinary citizens. The wiretapping law (FRA) for example, as well as the likes of IPRED, which will give companies chasing an alleged copyright infringer more powers than the police. Worrying for anyone that has followed our stories on Davenport Lyons in the UK. “If IPRED becomes law, then drug dealers will have greater rights and protection than file-sharers,” wrote one news site.

On Monday, the PiratPartiet released their list of candidates for the EU parliamentary election taking place in June. Heading the list is party vice-chairman Christian Engstrom, but the other 19 candidates cover a wide age-range and are of roughly equal gender. This is not a party dominated by geeky teenage boys, but one that’s growing quickly; the Swedish Pirate Party now has only a few hundred members less than the Green Party.

Other countries aren’t so lucky. Spain, Poland and France, are among those with parties that hope to run in the election, but are having difficulty getting supporters. “It’s a sad state of affairs globally,” says Andrew Norton, the coordinator of Pirate Party International. “Most countries have lots of people that just can’t be bothered. They will post on forums to express their anger, but not do anything worthwhile about it.”

However, in Sweden – the home of The Pirate Bay – things are getting better. In the prominent Swedish newspaper, Svenska Dagbladet, the headline reads “IPRED Favours the Pirate Party.” It goes on to comment on how directives like IPRED are driving people to the Pirate Party in Sweden, people who are concerned over both IPRED and FRA laws.

In their first election The Swedish Pirate Party gathered some 35,000 votes – roughly comparable to a leading 3rd party candidate in a US presidential election, percentage-wise. But, with the heavy public focus on these hot-topic issues, it’s entirely possible they’ll reach 100,000 – the number required in the last EU election in Sweden to get a seat.

The newspaper closed with a comment from political scientist and election researcher Henrik Oscarsson, who identified the Pirate Party as “a classic civil rights movement”. We have to wonder, does this make Brokep and Co. at the Pirate Bay, the digital Rosa Parks?

Article from: TorrentFreak, check out our new blog at FreakBits.

It must have felt like an attack from behind when the RIAA heard that they lost its only major court victory, with a mistrial being declared in Capitol V Thomas. Making things worse, the Department of Justice, viewed by some to be the bully’s trusted lieutenant, turned on the content industries by soundly criticizing a bill aiming to increase copyright and patent enforcement powers.

The Thomas case is now a proverbial millstone around the neck of the RIAA. At first it looks impressive, and gives a frightening impression to anyone that thinks to challenge them, but now it’s starting to drag them down. Not only was the decision in the case thrown out, the statement by the judge in support of the mistrial reads like a critique of the legal arguments put forward by the RIAA over the last 5 years.

Yet, the millstone around the neck is not just in the refuting of legal arguments. It also extends to the excessive damages that were awarded in the first trial. The $9250 per infringement has been argued to be so far past constitutional restrictions on excessive punishments, that it has brought it into public attention. Because of this, it may end up reducing the maximum amount of damages and fines that can be awarded, which may also undermine the settlement encouragement (or ‘pay instead of fight’) strategy. The end of the judge’s order says it all:

While the Court does not discount Plaintiffs’ claim that, cumulatively, illegal downloading has far-reaching effects on their businesses, the damages awarded in this case are wholly disproportionate to the damages suffered by Plaintiffs. Thomas allegedly infringed on the copyrights of 24 songs – the equivalent of approximately three CDs, costing less than $54, and yet the total damages awarded is $222,000 – more than five hundred times the cost of buying 24 separate CDs and more than four thousand times the cost of three CDs. While the Copyright Act was intended to permit statutory damages that are larger than the simple cost of the infringed works in order to make infringing a far less attractive alternative than legitimately purchasing the songs, surely damages that are more than one hundred times the cost of the works would serve as a sufficient deterrent.

While 24 songs is more like two CDs (than the three the court states), that damages should go from 4000x losses (assuming 3CDs) to 100x, means that the $222,000 would be more like $5,550. That’s quite a difference. The same could be applied to amounts demanded in pre-trial settlements, where the RIAA has often asked too much. The court’s math is far more reasonable, despite being calculated using retail CD prices, which have all manner of mark-ups and distribution costs that are not relevant to digital music included. A digital download doesn’t have to pay for the CD blank and doesn’t have to pay for transportation to the store. There are no printing costs or middlemen profit. The court gives an estimated cost of $2.25 per track, the actual cost for a download is more than seven times less than that.

Of course, other arguments, ranging from definition semantics, to trying to use criminal law as precedent, were denied as well. Some of these arguments were novel, others seemed like desperation.

The other news from Wednesday didn’t help either, especially in the muddling of civil and criminal enforcement of copyright. The Department of Justice sent a letter to Senators Leahy and Specter over the Enforcement of Intellectual Property Rights Act (EIPRA) of 2008, which passed through the Senate judiciary committee last week. It stated that the Departments of Justice and Commerce had ’strong and significant concerns’ with portions of the act. In short, they said they didn’t want to be used as free lawyers for the entertainment industry, and also felt that the position of an ‘Anti-Piracy Czar’ would be, surprisingly, unconstitutional. When even the US Justice department, which has seemed indifferent to the US Constitution in recent years, uses it as an excuse to oppose new powers, it could be likened to rats leaving a sinking ship.

Of course, the past week hasn’t been only bad news for the RIAA and its members, it’s been bad press for them too. On Monday, they elected to proceed to a jury trial in Maverick V Harper, with a date set for November. The RIAA were unwilling to accept a $200/infringement settlement offered by the judge. In taking the offer, they would have had a win, but at a lower amount, and left the potential for innocent infringement defenses. However, with the Thomas mistrial ruling two days later, negating any precedent they hoped to point to, and undermining some of the possible defenses, it may seem they have gambled on a treble-or-nothing bet.

The case in question centers around 38 songs, although only 6 were downloaded by MediaSentry. What can make this case interesting is that MediaSentry may be in violation of the law, regarding Texas based investigators, and that the age of the defendant – Whitney Harper was 16 when the infringements allegedly occurred – make an innocent infringement defence possible. Attacking a young girl for actions in her teens may not play well with a jury.

All in all, a bad week for the RIAA, and it may only be the first of many. We may never know if the article written by New York based attorney Ray Backerman did anything to to bring about a closer examination of the RIAA’s cases. Nor can it be overlooked that Wednesdays are not the RIAA’s best days – exactly a week before the Thomas and DOJ setbacks, they set themselves up as targets of ridicule by suing Beckerman. They accused him of allegedly doing what they have been repeatedly accused of doing – irony indeed. Many people are doubtless wondering what excitement October 1st will bring.

Article from: TorrentFreak, check out our new blog at FreakBits.

So, customs officials in Hong Kong have arrested a 14 year old boy. The boy is suspected to have uploaded 2,000 Chinese-language pop songs onto the Internet. I’d love to be able to tell you this kid’s name, but (un)fortunately the law says he’s too young to be named. I’m sure kids today are much smarter and advanced than I was, so hopefully he’s not too young to understand what’s happening to him. The ‘not knowing’ would add considerably to his ordeal.

According to customs spokesman Michael Kwan, the teenager had been sharing Cantonese pop songs, known locally as Cantopop. When I was 14, I had cassette tapes filled with pop music too, all of it copied from anyone who had a copy. I doubt I had 2000 tracks, but I certainly had an impressive arsenal of jam-packed C90’s, and I happily copied them for anyone with a blank tape. In fact, faced with no money but a thirst for pop music, all my friends copied off each other, and the recipients of those copies all shared those with everyone else. It never crossed our minds that we would be arrested for it. Not once, since arrests seemed to be reserved for the glue-sniffing vandals who my parents warned me to stay away from, which I did, happily.

Copyright infringements in Hong Kong apparently carry a maximum penalty of four years in jail and a fine of HK$50,000 (US$6,400) for every item violated. A worrying amount for an adult, even ones who have the means to raise the cash. I once ran up a $30 telephone bill for my parents through my generous use of a 1200/75 modem. Through my kid’s vision it seemed like the end of the world, even though the phone company was the boogeyman, not the police or entertainment companies.

Mr Kwan, a head at Hong Kong’s Copyright Investigation Division, told at a press conference that the boy made a post on a forum indicating he had the songs for download. A press conference? For a 14 year old kid sharing music? Could I have imagined being arrested at 14 for taping music, taken away and then be the subject of discussion at a government press conference? Hardly. But maybe I should’ve been – they say standards are slipping in society, maybe the police and media companies coming down hard on children is the solution?

The Kid With No Name has been set free on a bail of 2,000 Hong Kong dollars, roughly US$260, and has not been charged while the police make further inquiries. Hopefully the investigation won’t interfere too much with his school work and revision at this crucial point in his education. Or maybe any diversion away from school work is cool in the eyes of a hormonal teenager? I think I’d have been happy to have a few disrupted maths lessons, but there again, in hindsight I didn’t understand how important they were. After all, I was just a kid.

But of course, eventually all kids grow up. We leave school and start earning our own money and start making those important decisions about where to spend it, which are probably shaped by previous life experiences and dreams for the future. We also decide who to vote for. I didn’t grow up in a ‘lock up pirates and throw away the key’ environment yet i’m still disturbed and concerned at how copyright enforcement is heading. Going to war against today’s potential customers seems foolish. Punishing and polarizing children – tomorrow’s customers – at the behest of big-business, is in a completely different league.

Article from: TorrentFreak, check out our new blog at FreakBits.

“I was tired of seeing those claims on every press release,” he tells TorrentFreak, “knowing there was no evidence to back them up. They could have said that the loss was $20 billion, if they think they could bluff it out. The sad fact is that we have news outlets, and politicians quoting this figure as fact, and yet not one verified any claim. If I said I could turn lead into gold, I would be bombarded with requests to prove it. They have turned air into $6billion, and supposedly smart people accept it without question.”

Frustrated, Norton decided he should study the MPAA’s own figures. When he couldn’t find any data to support their claims, he decided that there needed to be a study of the data the MPAA did put out. “I was thinking about where I could look, when the MPAA announced a new record year, and I thought ‘of course’. The MPAA can hardly question the accuracy of the data published by its members, and itself.”

The preliminary findings of the study, published today, show a different picture to the one the MPAA paints. Norton took the view that the films most likely to be distributed on filesharing networks, and sold on street corners, would be the big blockbuster films, and so he should look at the top 10 films of each year. The results from that are shown below.

With average growth throughout the time period, it would seem that claims of cinema piracy hurting box office figures (leading to cinemas issuing night vision goggles to staff, and teenagers being charged with crimes for recording 20-second clips) are unfounded. When certain p2p protocol lifespans are marked on the graph, for comparison, the MPAA claims are pretty much shattered.

Mr. Norton is also aware that he will have to prove he is not just making things up. The US Pirate Party, who is publishing the study, has stated that all data used in the study will be available when the full study will published at the end of July. He does have a comment for the MPAA however. “Prove your claims, or shut up about them.”

Article from: TorrentFreak, check out our new blog at FreakBits.

At the end of the year we will publish a list of most downloaded TV-shows for the entire year, like we did last December.

TV-shows such as “Lost” and “Heroes” can get up to 10 million downloads per episode, in only a week.

Top Downloads June 29 – July 06

Article from: TorrentFreak, check out our new blog at FreakBits.

So imagine if you will, the amazing contrast between Mr Fish’s predicament and that of Tony Krvaric, chairman of the San Diego Republican Party. At first glance, they seem very different – but look closer.

To better appreciate the gap, here is some background on Tony Krvaric, courtesy of a Raw Story report and the Republican Party website:

Born and raised in Sweden, Tony Krvaric was inspired by President Ronald Reagan to come to America. Though only a youth, he vowed to one day become an American and pursue his American Dream. The first step was to start his own business, and in 1992 when the opportunity presented itself, he moved to San Diego.

After becoming a naturalized citizen in June of 2003, he decided to become politically involved. Having seen, first hand, the devastating effects of socialism in Sweden and the rest of Europe, he was determined to stand up for the traditional, conservative values that helped make America great.

So what does a politician have to do with warez? Well, the strange truth is that Tony Krvaric is none other than a co-founder of notorious warez group, Fairlight. Krvaric -who started his cracking career at the “West Coast Crackers”- was in fact one of the most well-known individuals in the Warez scene at the time. Fairlight remained active after Krvaric left in 1993, and several members of the group were eventually arrested by the FBI in 2004.

During Fairlight’s earlier days and their involvement in the Commodore 64 cracking and demo scene, although cautious, the members couldn’t have imagined the punishments that are given out today. Although Krvaric isn’t shy in letting the world know some of his history and present-day situation on the C-64 Scene Database;

Presently works as a full-service financial consultant for individuals and families who share his values – helping them grow, preserve and distribute their wealth. He lives in San Diego with his wife and four children. Is a member of the Republican Party.

The excellent article goes on to list other alleged infringements by Krvaric over the years, and although he appeared to leave Fairlight in 1992, there are suggestions that he was still in charge of the group as late as 2004. It’s not possible to say if this is true or not, but according to sources, the group appeared to be operational in late 2007.

Apparently, Krvaric has now sent an email out to fellow Republicans, trying to calm the waters:

Apparently there’s a hit piece floating around on me, “exposing” my wild high school, teenage years where I was in a computer club where we swapped Commodore 64 games (similar to how kids swap mp3 music files these days). This was in the 80’s, on a computer that’s long since defunct!

[In] 1990 I graduated high school, grew up and started my own business, and then in 1992 I came to this country, continuing the same business (selling computer and video game chips and accessories as well as some nonperishable foodstuffs, taking over my father’s business for a while after he died in 1994) until I left that field when the profit margins became too thin to make any money , around 1997 or so. That’s when I became a financial consultant, which I remain to this day.

I’m sure glad they didn’t look in to my elementary school years, as there’s some really embarrassing stuff that I did in 4th grade. BTW, I also heard a rumor that another fellow committee member (who shall remain unnamed) once made a tape copy of his friend’s favorite vinyl record.

I don’t know who is spreading this but just wanted to let you know what’s going on out there. Likely it’s someone who wants us to take our eye off the ball in 2008, be it the democrats, labor or someone else. Either way, we’re not going to let them get away with it. Thanks for your leadership.

I wonder which way the newly-convicted copyright infringer David Fish would vote – if he was allowed to? Speaking of voting, Krvaric – running for reelection in 2008 – registered his email address with the Registrar of Voters. No-one can accuse him of trying to hide anything, that’s for sure:

tkrvaric@fairlight.com

Article from: TorrentFreak, check out our new blog at FreakBits.

In the time it took you to read the introduction to this post, movie pirates have cost the MPAA $12.7m in lost revenue, several thousand people in the movie industry have lost their jobs, and civilization (as we know it) is under threat.

Faced with this nightmare scenario, drastic action is called for, as any delay could exacerbate the already horrendous losses listed above. It’s time to stop movie piracy in its tracks – right now – by letting loose the “Movie Screening Security Guards”, armed with the bluntest instruments known to man – and night vision goggles.

MSSG is a four-man security team, here to serve and protect the integrity of the Hollywood movie industry. They say they’re here to hunt down strange people – the type that download stuff from the Internet and anyone carrying large bags “like a suicide bomber” into a movie theater.

Their training allows them to see things normal people can’t, so when they’re confronted with what appears to be a kid with a cellphone, they do the right thing – and immediately destroy it, rightly terrifying the child.

“The world needs morals and integrity,” says the MSSG boss, “and when someone’s going around recording films that cost millions of dollars to make, and showing them to all their little snot-nosed friends while they’re picking their noses, well that’s just wrong. When you take morals and integrity away from a human being, I ask you: What then? What do you have left then?

Enjoy the documentary.

Article from: TorrentFreak, check out our new blog at FreakBits.

When asked about the purpose of the memo in 2006, party spokesperson Peter Eriksson said: “Our aim is to make laws in line with the new technologies. The other option is to pretend that you can go on like you always have, although it’s practically impossible. Reality has changed.”

One of the driving forces behind the recent “I Wouldn’t Steal” campaign from the European Green parties was the Swedish politician Carl Schlyter, and his initiative seems to have spurred others in the party to join the debate. Earlier this week, an editorial was published in two local Swedish newspapers. It was titled “Filesharing is not theft” and was written by Akko Karlsson, member of the Swedish Green Party’s executive board.

In the editorial, Akko argued that filesharing can’t be compared to theft, as theft is when someone takes away the possibility for another person to use something, whereas filesharing only creates a new copy without erasing the original.

“For me, this is a generation issue,” said Akko Karlsson when TorrentFreak asked her why she decided to write the editorial. “You should always endorse the new technologies’ possibilities.”

In her editorial, Akko criticizes the entertainment industry’s failing to enter the information age with working business models:

“You could argue that filesharing hinders some people from earning as much money as they would have if filesharing was not possible. But now it is possible, the technology is there, and then the industry needs to find new ways of handling it. They’ve had the chance to work on new ways for 10 years but haven’t come up with much else than silly trailers that say filesharing is theft. [...] When new technology emerges, it’s not necessarily it that must be adapted to the old ways. Sometimes, the industry itself must adapt.”

Akko further told TorrentFreak that she’s convinced that filesharing, copyright and integrity will be important issues for Green Party in the 2009 elections for the European Parliament and the 2010 elections in Sweden.

“Because there is also the democratic aspect of this,” she says, “There are so many people under repressive regimes for whom filesharing and the Internet is the link to the rest of the world that inspires, gives hope and makes it endurable to fight for human rights and democracy. The state’s control system is expanding. We used to heavily criticize the intrusions of privacy and control systems in place behind the Iron Curtain, but now we are building this ourselves.”

In Swedish old media, there’s currently a heated argument against filesharing, with novelists like Liza Marklund and Jan Guillou using every inch of their weekly columns in Swedish newspapers to lobby for tougher measures. With the trial against The Pirate Bay coming up, the debate has sunk even deeper in the trenches. In this climate, for politicians to step up to the plate with sound arguments why filesharing should be legalized seems like a bold move.

But Akko Karlsson is not alone.

On January 31, an editorial was published in Gothenburg’s daily newspaper. It was written by Green Party’s Lage Rahm, member of Parliament, party spokesperson on IT issues and substitute member on The Committee on Industry and Trade. On the subject of the ongoing case against The Pirate Bay, he called for reason when it comes to impose tougher measures on filesharing:

“Not only is the struggle [to end illegal filesharing] doomed to fail, it also creates a risk that filesharing on the Internet becomes anonymized and encrypted. An increased availability of untraceable networks will make it harder to fight organized crime.”

As an example, Lage Rahm put forward the bust of a pedophile ring with more than 700 suspects in 33 countries last year. This was done by tracking chatrooms, downloaded photos and e-mail.

“Most people realize that the police and copyright interest groups are fighting against windmills. [...] Convicting sentences against The Pirate Bay would have merely marginal effects on the scope of illegal filesharing. More severe is that the hunt will lead to an increased interest for absolute anonymity among Sweden’s approximately 1 million filesharers. Their activity will move to untraceable darknets.”

He focused on the dangers of Internet communities going underground and concluded:

“New technologies mean we as legislators are faced with an entirely new reality. Tougher measures against filesharing means risking the police’s possibilities of fighting child pornography and organized crime. It is worrying that the Minister of Justice doesn’t seem to realize this. For The Green Party, this is one of the main arguments of legalizing non-commercial downloading. [...] The Minister of Justice should leave to the industry to clear up the mess they have made for themselves. Judicial resources should be diverted to fight severe online criminality instead of hunting filesharing sixteen-year-olds.”

So, what does this all mean for the European filesharer? Well, one thing is sure, political parties that actually have power are taking a pro-filesharing stance. A sign that things are moving forward, slowly, but in the right direction.

Article from: TorrentFreak, check out our new blog at FreakBits.

ACT I: THE SET-UP

Current system is shot to hell. Heads buried firmly in sand.

A few months ago, the writer and NYU professor Clay Shirky told me he thought DRM was a “nostalgic” idea. Nostalgic is the best adjective I’ve heard to describe how most large entertainment companies think about controlling their content in a digital era. Big media continue to view the situation through rose-tinted spectacles while consumers see red. When being a pirate is the easiest way for people to access the content they want in the format they want it in, then something has gone very, very wrong.

There isn’t a moral defense for stealing in most cases. But there isn’t a moral defense for invading people’s privacy and imposing draconian laws to protect outdated, crumbling business models either. Music and movie piracy is rampant because over the last ten years, the market has utterly failed to provide a wide range of preferable legitimate solutions. If this continues as bandwidth increases and download speeds accelerate, the entertainment industry will be left in ruins. Many think that needs to happen for new business models to form. I think those currently in power simply need to grow a set and confront the reality of the situation.

So far the search for new revenue streams by the big labels and studios has only turned up one that they seem to be comfortable with: the legal department. It’s impossibly difficult and expensive for the average consumer to use music legally in podcasts, on websites, in remixes, or in public speeches for example. But if you do decide to use music illegally, it’s entirely possible that a huge team of lawyers will come at you like a troop of rabid spider-monkeys. Instead of looking at real solutions, all the labels seem to be doing is exacerbating their problems.

Pretending the current laws or legitimate options for consuming movies and music online are in some way going to stop piracy from turning the entire entertainment business into a giant anarchic swap-meet is like pretending recycling plastic water bottles will single-handedly end global warming. The problem is the entertainment business doesn’t recognize the giant anarchic swap-meet for what it really is; a great way for them to make a ton of money.

ACT II: CONFRONTATION

Licenses replace sales. Labels accept reality, or die.

CD sales are in freefall, (the arrival of the Mac Book Air this week was perhaps the final death knell for the format) and the legal department is clearly not a viable long-term revenue stream. A more efficient way to monetize how we consume music online (and other goods with zero marginal production costs) is not to think about monetizing them in terms of sales, but instead in terms of licenses.

This is already beginning to happen. Deals like the “Comes With Music” partnership struck between Universal and Nokia last month may feel like “one step forward, two steps back“, but at least we’re finally heading in the right direction. And the fact that all the majors are starting to work with legitimate file-sharing models like iMeem is encouraging.

The solution we are slowly moving towards is a voluntary collective license for music, which consumers could choose to pay, or not. It needs to work all over the world. National boundaries don’t apply to this kind of information anymore. To pretend they do is as nostalgic a notion as DRM.

Organizations such as ASCAP or the BMI could fulfill this role. This system wouldn’t be a tax; there would be no cap on the amount of money an artist or label could earn, innovation would not be stifled. Bennet Lincoff wrote a paper this time last year which I believe could be the answer. The EFF is also supportive of a similar solution, which they outlined in a 2004 paper:

“The concept is simple: the music industry forms a collecting society, which then offers file-sharing music fans the opportunity to “get legit” in exchange for a reasonable regular payment, say $5 per month. So long as they pay, the fans are free to keep doing what they are going to do anyway—share the music they love using whatever software they like on whatever computer platform they prefer—without fear of lawsuits. The money collected gets divided among rights-holders based on the popularity of their music.

“In exchange, file-sharing music fans will be free to download whatever they like, using whatever software works best for them. The more people share, the more money goes to rights-holders. The more competition in applications, the more rapid the innovation and improvement. The more freedom to fans to publish what they care about, the deeper the catalog.”

Under this system, the internet would work exactly as broadcast radio does. As the EFF proposal points out, “songwriters originally viewed radio exactly the way the music industry today views KaZaA users—as pirates. After trying to sue radio out of existence, the songwriters ultimately got together to form ASCAP (and later BMI and SESAC). Radio stations interested in broadcasting music stepped up, paid a fee, and in return got to play whatever music they liked, using whatever equipment worked best.”

We have a system where infringement by many pirates affects the ability of rights holders to license music legally to the few media companies that can afford it. What we need is a model where infringement by a few pirates will not affect the ability for rights holders to license music to the many law abiding broadcasters who want to use it.
Sure, there is good money in making it very difficult to license music, and charging a few people a lot for the privilege. But it’s likely there is a lot more money in making it very easy to license music to a lot of people for very little.

This wouldn’t just allow individual users to share songs legally – it would create new opportunities for a lot of sites to start selling music, which is a good thing. The entertainment industry has made it very clear it would prefer not to be beholden to a small handful of stores like iTunes, an anti-competitive situation which isn’t great for consumers either. It’s a monumental task, but it would create jobs and wealth and probably a lot of opportunities we can’t even see yet.

ACT III: RESOLUTION

A viable entertainment industry unfolds. New revenue streams spring forth.

The truth is we still need middlemen in the entertainment business. It’s just they stopped doing their jobs properly, so we decided to stop paying them. But if the industry embraces the way millions of people have been consuming their products for the last decade, there will be no longer be a reason for consumers to defend piracy. There will be more money for artists. There will be more commercial opportunities to distribute wider varieties of content. Publishing will grow. There will be a larger entertainment industry with more revenue streams, making more money than it does now. Once the benefits of sharing content in a more liberal fashion are widely understood, our definition of fair use will likely change as well, meaning a wealth of new non-profit driven content and culture will be created at the same time. I think that definition will look something like Tim Wu’s: “It is time to recognize a simpler principle for fair use: work that adds to the value of the original, as opposed to substituting for the original, is fair use. In my view that’s a principle already behind the traditional lines.”

Confronting the reality of where the traditional lines really are, and where the new ones have been drawn by the consumers (the people who really make the rules) is the only long-term solution to the pirate’s dilemma the entertainment industry faces. It is, in this instance, the only way the industry will ever stop piracy. It is the right thing to do, and it will force the rest of us to start doing the right thing too. When the entertainment industry decides to grow up about file sharing, the rest of us will have no choice but to do the same.

For those who are interested, my book: “The Pirate’s Dilemma: How Youth Culture Is Reinventing Capitalism” is out now through Free Press, and probably soon on a BitTorrent tracker near you ;).

Article from: TorrentFreak, check out our new blog at FreakBits.

The message from the Moderate Party MPs to their AntipiratbyrÃ¥n supporting colleagues was “be careful, they will never be satisfied”, drawing parallels to the earlier attempts to ban MP3 players, and VCRs, both areas in which, having failed to ban, industry groups are now making a profit from selling content.

Karl Sigfrid told TorrentFreak that the APB proposals make no practical sense. “I think it could be solved in theory. However, in reality, you would need such a surveillance system to achieve this that it would be all out of proportion. So I don’t think there’s a feasilbe way of stopping individuals copying. The cause for file sharing is basically that it’s possible. People have always done it to the extent that they’ve been able to. With cassette tapes 20 years ago and electronically today. Copyright laws preventing individuals from sharing information have never been legitimate in the eyes of most people.”

When asked about if it was down to content industries being slow to change their business practices, he replied: “It’s hard to say what would have happened if the content industries had been quicker releasing their material online, before the P2P networks grew mainstream. Probably the illegal filesharing would be less extensive, but it’s possible that it would still have been increasingly difficult for iTunes and such services to compete with free downloading. The change needed might be so radical that it’s no longer about selling copies of immaterial products at all.”

Rickard Falkvinge, of the Swedish Pirate Party was understandably upbeat about it. “Karl Sigfrid’s taking a stand marks a major turning point. For the first time, an established politician shows deep-down understanding of the real conflict, instead of cluelessly humming along with a technophobical luddite industry. Some other Swedish mainstream politicians have previously talked in terms of how it’s unreasonable to declare war on an entire generation. Sigfrid is the first to understand why.” His enthusiasm is understandable as, one Swedish torrent user put it “a bunch of members of The Conservative Party have started listening to the policies of The Pirate Party, and they want to jump on their bandwagon, as it’s gaining popularity”.

Gaining popularity it is, as yesterday, thirteen members of Parliament joined in another attack (Swedish only, no English translation at present) on the likes of the APB, and recording industries, saying “The record labels are obviously opposed to a development that makes them obsolete.” However, not everyone has been celebrating. Pirate Bay administrator Brokep was skeptical, saying “I’m intrigued that the debate is sparking up again. There’s been a lot of lies from the politicians. Promises and nothing has happened, so at least this will put the debate back on the map.”

The initial seven MPs were Karl Sigfrid. Margareta Cederfelt. Ulf Berg. Lena Asplund. Staffan Appelros. Lisbeth Grönfeldt Bergman and Göran Montan. Tuesdays additions were Marie Weibull Kornias,Finn Bengtsson, Ann-Charlotte Hammar Johnsson, Sven Yngve Persson, and Anders Hansson.

**UPDATE** Sorry, forgot to add this translation of the second piece, available here

Article from: TorrentFreak, check out our new blog at FreakBits.

I have been an avid music collector for many years, and have approximately 1000 CD’s in my collection, not counting albums that I have purchased over the internet and own only digital copies of. I purchase approximately 30-40 new CDs per year. However, thanks to your recent decision to block Canadian users from accessing Demonoid, I have decided that I cannot continue to support this backwards, dysfunctional industry with my money any longer, and as such, I do not plan on purchasing music ever again if it means that one penny goes to your organization.

I listen to heavy metal music, a form of music that “the industry” stopped supporting many years ago, so I have a hard time feeling any sympathy. Sites such as Demonoid have done far more to promote the music I love than your organization or the industry in general has ever done. I can find out about new artists and new releases from artists that are never promoted. I can listen to music from artists that have never been played on the radio, will never be shown on MuchMusic or MTV, and never have a review or even mention of their new album written about in the local newspaper. From listening to this music, I can make an informed decision if I wish to purchase the album or not, as I am not going to gamble $15-20 on something that I haven’t heard anything off of before.

25 years ago, I primarily learned about music from friends who dubbed a copy onto a cassette tape, where I could listen to it and make a decision if I wanted to buy the tape for myself. Now, many years removed from school, my “gang” of friends to share music with has shifted from cassette tapes and the school cafeteria to sharing mp3’s online. I listen to some things that I don’t like, and consequently, I don’t buy those albums. What I do like, I buy, or at least I used to, before your decision intended to stop me from hearing new music.

The industry cries that record sales are down, and blames this all on internet downloading. I won’t be so naïve as to say that internet downloading has no impact on the sales. Downloading has certainly stopped me from making the stupid purchases where I heard one single that I liked and bought an entire album only to find out that the rest of the songs are crap, and the CD sits collecting dust on my shelf. But for every CD that I didn’t buy based on those premises, there are 2 or 3 other CDs that I did buy because I heard of them for the first time on a site like Demonoid.

In the meantime, the music industry itself needs to recognize that they are to blame for sagging record sales. For years, they have been marketing recycled crap, and people are getting tired of it. On the odd occasion that something fresh and new accidentally slips through and gets radio play, the music industry immediately signs a seemingly infinite number of clone bands that makes the “new, fresh” sound boring almost instantly. It seems the music industry doesn’t even care about making or promoting good music any more. Instead, they market a young, pretty face that can dance provocatively and lip-synch well, and push this on the radio stations to play while getting the tabloids to print large pictures of their breasts. If bands like AC/DC or Motorhead were to emerge today, they would never be successful; not because of poor record sales due to downloading, but due to the fact that they’re ugly so the record company wouldn’t promote them, if they picked them up at all. In the meantime, they’re falling all over themselves to promote Britney Spears, Lindsay Lohan, or any teenage tramp that can be airbrushed to look sexy.

The record labels cry about downloading cutting into the profits of the sales of albums. They put out “greatest hits” albums by 20-year olds with 2 or 3 albums under their belts, released with one new track to try and sucker the fans that already have both albums into spending another $20 for one new song, or re-releasing a 3-month old album with a “previously unreleased bonus track”. Then they can’t understand why people aren’t buying them, and cry foul that people are downloading the one new song instead.

I know not only the record companies are crying. Artists that have been around long enough to have enough clout to get a cut of the record sales are concerned about their cut, like Metallica that also clamor that “downloading is evil”, and then go on to sell over 9 million copies of their last album instead of 9.1 million. Boo hoo. Meanwhile, many younger, smaller artists favor downloading, because they know it’s the only way that people will get to hear the music and in turn come out to see their shows, because the record label sure as hell isn’t promoting them. But they can’t say that out loud, can they? If they do, guess which band is going to get dropped by the label?

So tell me, what does the CRIA do to promote metal? Oh, right, you’ve got a link to the top 50 “metal” albums in Canada, which after a quick glance at the top ten this week includes punk acts like Dropkick Murphys, Finger Eleven, and Billy Talent, and rock acts like Nickelback and Queen, but very little that resembles heavy metal. (Perhaps you should ask the Celtic punk band, Dropkick Murphys, what they think of being labeled as “metal”.)

And also tell me, without Demonoid, where would I have found out about bands like Evile or Dublin Death Patrol and made a decision to purchase their album online (because no record store that I have found in Canada carries either one). And god forbid the CRIA would care about the promotion of Canadian talent, such as longtime recording artist Annihilator, which released one of the better albums of 2007. However, I have yet to see their new album sold in any store in Canada, including HMV’s flagship store on Yonge Street in Toronto, and I ultimately had to buy a copy from a UK website. Considering the only place I had heard about this album was having downloaded it from Demonoid, do you really expect anyone to make this kind of effort to buy an album without ever having heard it?

The record labels and CRIA have gone to great lengths to tell us that downloading and sharing music is killing the music industry. Open your eyes and you will see that the music industry dinosaur has already been killing itself for years, and by resisting technology rather than embracing it and using it to their advantage. “Oh, but they have,” you try to insist, pointing to the sites devoted to selling music in mp3 format online. I notice that most of the metal bands I am interested in are still not available through these services. I also notice that buying an entire album ends up costing as much, if not more, than if I went to buy it in the store, even though there are no longer costs of materials or shipping that have to be paid for, and once again, I fail to come up with any sympathy for the music industry. I hope the music industry does die, because I know that music itself will not die so with the corrupt aspects of the industry gone, only then might music once again flourish.

Sincerely,

A former music buyer

Article from: TorrentFreak, check out our new blog at FreakBits.

Movie theaters in Canada are now taking extreme measures to cut down this figure, even if this means less comfort for their paying customers.

Serge Corriveau, Director of the Canadian Motion Picture Distributors Association, highlighted some of the measures they’ve taken and told CBC: “Having people searching knapsacks and people going up and down the aisles once the movie’s started to see if they can spot somebody camcording. You can see also people with night-vision goggles searching through the crowd trying to see if they can find something.” Corriveau added that metal detectors will also be used in theaters across Canada, specifically for pre-screenings.

And if this isn’t enough, CMPDA have also introduced a reward program for theater employees. Catching pirates is a lucrative business now, as they can earn upto $500 CAD if they identify a person who’s trying to record a movie on his phone or camcorder. More details can be found in the “theater employee camcorder training guide“.

The theater owners sure do all they can to please their customers. A few days ago we reported about a 19 year old girl who was arrested by the police after she recorded a 20 second clip from the movie “Transformers” that she wanted to show to her little brother.

Thanks to the night-vision goggles I guess…

Article from: TorrentFreak, check out our new blog at FreakBits.