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Former EMI Boss: Fight Against Illicit P2P is “Useless”

At least on the surface, most in the mainstream music industry agree: illicit file-sharing is evil. However, when you aren’t getting paid to have a certain opinion, things can change. No longer taking a salary from his former company, Ex-IFPI chairman and EMI director Per Eirik Johansen speaks freely.

While working for a big company, which in themselves are very often parts of an even bigger concern with global interests, it is taken as read that you toe the corporate line. Those that dare to have an opinion of their own can find themselves in sticky situations. Of course, the sway an outfit has over an individual is nearly always financial, but what happens when this point of leverage disappears?

Per-Eirik Johansen has been in the music industry for many years, and was noted for his ability to develop some prominent artists. At one point elected as chairman of the IFPI, it was during Johansen’s time as a director at EMI that he bore the brunt of a backlash against the copy protection his company put on CDs.

In 2004, five thousand people lobbied EMI to remove this DRM, with news site nrk.no calling Johansen’s office 27 times over two broken interview promises on the issue. Eventually he conceded, “I have neither the desire nor the ability to give out discs without copy protection,” while indicating that only EMI London could make such a decision.

“We always listen to consumers,” he objected. “I can inform you that over the last five months, in EMI we have sold about 400,000 CDs with copy protection in Norway. In the same period we have received 28 complaints from consumers.”

“What we are talking about is a tiny, tiny little thing,” he said. But did he really believe that it was so insignificant?

No longer working for EMI, in an interview with Joakim from Norway’s Dagbladet, Johansen – unrestrained from the shackles of a forced corporate line – speaks freely, noting that while he took a salary from EMI he felt obliged to defend their stance.

He now believes the music industry’s fight against piracy has been useless and says he disagrees with the assertion that illicit file-sharing is the same as theft. Referring to an earlier EMI anti-piracy initiative, Johansen noted, “The message of that campaign is that there is a reason why we have copyright, and I agree.”

“But the main thing is that a whole generation already violates copyright, and the only thing we can do now is find better solutions,” he says pragmatically.

Now, as the 49 year-old manages his own label, Johansen looks back on some good times with EMI, particularly those where he discovered and developed new artists. But times have changed. “Now that companies’ earnings have gone down, and you cut down on people, people no longer have the resources to drive this work,” he said.

Johansen still has optimism for the industry, pointing out growth in the live concert market and showing enthusiasm for new models to make money from music. “I am extremely optimistic. There has been a revolution, and in the wake of this, it is very chaotic. Today there is an entrepreneurial spirit that is both healthy and exciting. We do not know how the industry will look in a year or two, but I am convinced that the future looks promising.”

Noting that as a whole the music industry hasn’t fallen in value, Johansen says it is the recording section that has suffered most after it did nothing for too long and failed to adapt their business model to the new era.

“No one has ever won a battle when fighting against new technology,” he said.

Time to embrace it then.

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  • Anonymous

    Totally agree, a new business model is inevitable. The longer they take to realize this will just be more time spent stagnating and not monetizing.

  • woot

    Ah the smell of victory is in the air.

  • http://www.10ch.org/ www.10ch.org

    Doubtless we too can make a difference, for we have human potential, and have thus human virtue. Our fates are not decided for us; we decide our own destiny.

    “The fault, dear brutus, lies not in our stars,/but in ourselves if we are underlings” – from JC, by WS.

  • Bozz

    Now if only the rest of the industry were as reasonable…

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  • Al Koholic

    A crack getting bigger against the anti-pirates. Let freedom ring.

  • what the

    you guys surely realize that the only revenue streams that the labels will make their money from now are the artist’s ticket/merch sales since the internet has rendered music no longer of value.

  • flux

    so watch as ticket prices rise significantly

  • Anonymous

    Doesn’t really matter if the rest of the industry were as reasonable. If so, wonderful. But if not(which is likely), they’ll simply fall by the wayside, die, and be replaced by people who actually comprehend the fact that these aren’t the fucking dark-ages anymore.

    Johansen’s part of the new face of the music industry, basically. Damn is that irony.

  • Anonymous

    @6

    If the Internet has rendered music no longer of value, then how can there be ticket/merch sales?

    DURR.

    Your logic needs a fixin’.

  • Anonymous

    @8 You’re paying for the performance and not the music.

  • Charbax

    Record companies need to die. Simple as that.

    Artists can release on the Internet.

    Artists should get paid through taxes based on their popularity and their quality.

    Artists can become more popular using software and Web 2.0 sites like Last.fm which can provide better recommendations which encourages artistic diversity and which can provide quality artists with the popularity that they deserve, without the need of any commercial marketing by record labels corrupting the whole process.

    Let artists become free to be real artists, let them have full artistic freedom.

    $5 in average tax per person per month can pay for many more artists and much better art.

    Obama, wake up.

  • Ron

    WAKE UP IFPI~ The old gravy-train is over.It’s a NEW Century,just look out your window.

  • NubCakes

    Artists get paid through taxes? LOL, piss off you dopey communist…

  • Anonymous

    “@8 You’re paying for the performance and not the music.”

    Yeah! You’re not paying for the music, you’re paying for people to perform the music!

    Get real.

    Bullshit that heinous only flies in corporate board rooms. Does this look like a corporate board room to you? Do you mistake me for Dilbert?

  • @nubcakes

    the only fact you relate tax to communism shows how poor your education/culture is…

  • NubCakes

    “Yeah! You’re not paying for the music, you’re paying for people to perform the music!… Bullshit that heinous only flies in corporate board rooms. Does this look like a corporate board room to you? Do you mistake me for Dilbert?”

    Wow, your really retarded. For one you said that thing about music and for another you think that people spin bullshit in boardrooms.

    That’s right… billion dollar industries are run by people that accept bullshit from people.

    I bet you think your smarter than other people don’t you.

  • Anonymous

    Bullshit on internet??!?? no, never seen any, especially on this site.

    We should be grateful for a rare chance of seeing dinosaurs get extinct.

    NubCakes = Roze?

  • NubCakes

    “NubCakes = Roze?”

    ROFLMAO… now that is funnay :P

  • Jacob

    Would you rather complain about their drm or just not buy their music?

  • www.10ch.org

    “NubCakes = Roze?”

    Your a bloody poofta mate!!

  • Anonymous

    @Roze

    i’m not your mate, buddy

  • Wolfy

    @11 Charbax

    The tax that I pay goes to support things like healthcare, the police, basically everything the state pays for. Basically something that everyone uses.
    Why should people pay a tax to pay for musicians? Especially if they don’t listen to them? What if the musician releases one song in his/her career and somehow expects this tax no matter how popular the song?
    Here is one thing you need to do. Before calling for changes in global economy practices, research your ideas first. That is, pros and cons, how difficult to implement, whether people would like it implemented and such. Then, you can say it. I speak for everyone here when I say we prefer ideas that have some thought behind them, unlike the now failing business models of the record industry.

  • uhh

    Waah waah wahh.. internet has taken value of music? GO KILL YOURSELF IDIOT.

    Im tired as F*CK of these little yuppies crying about how the sky has fallen..

    you people are the most close minded dumbasses I have ever seen.. did the sky fall when the ice maker came out? Cassette player? CD player? ect ect!

    STFU and WAKE THE F*CK UP. Times a changing, CHANGE OR F*CK OFF. PERIOD.

  • www.10ch.org

    Lay off the crack pipe you DUMB SH!T. Or go and HAVE YOUR PERIOD or WHATEVA your trying to spurt out through that large SPATCHCOCK of yours.

    Go and have carnal relations with your sister or something, indeed, as the decadent industry pigs are probably doing now.

    Why don’t you STFU you stupid idiot man.

  • dragus13

    another thing the internet has done is it let the indie bands that i would of never heard of to a even playing field with the main stream artists that i would never heard of if it wasn’t for the internet i buy alot bands that are not owned by or runned by r+AA i am proud to say. i am glad someone worked for one of their companys have wake up smell the coffee.

  • #46

    Music is still valuable, just price for those few million bits is close to $0, since today there is nothing scarce about ones and zeros. Musicians will just have to play music for a living. Life is hard.

    Labels might had their use once, but are now totally obsolete, unproductive, parasitic oppressors. And they know it. No one will miss them.

    I do not consider entertainers to be quite as important to society as are, say, doctors or educators; no public founding for Britney.

    @23 & 24
    behave!!!

  • http://www.10ch.org/ www.10ch.org

    “Labels might had their use once, but are now totally obsolete, unproductive, parasitic oppressors.”
    The oppressiveness part of it is especially exemplified when they forbid derivative works even when it is non-commercial, with the narrow exception of cases where it is humorous (parody or satire). That is pretty much a curtailment of freedom of speech: that the industry/labels pretty much have the authority to prevent people from creating their own take.

    It is definitely arrogance for them to insist on being able to oppress others like this through copyright. What makes these copyright holders (the industry/labels &c.) think that they are so superior to other people that they ought to have this right over other people, as if other people, the non-copyright holders, are somehow inferior?

  • PirateWilly

    The RIAA has been f*cking the artists for too long! Now, it’s our turn!

    - Pirate

  • boog

    yeah but this is norway … I mean like come on… the people in the US make so much it almost dont matter.

    I.e lime wire, how are you supposed to cut of the head of an ilegal flow. It would be intresting to see how people could try to stop something that spread so vast

  • Ian

    “Artists should get paid through taxes based on their popularity and their quality.”

    WTF? Make me pay taxes to prop up an artist? That is fucking retarded.

  • chapper

    re:Doubtless we too can make a difference, for we have human potential, and have thus human virtue. Our fates are not decided for us; we decide our own destiny.

    “The fault, dear brutus, lies not in our stars,/but in ourselves if we are underlings” – from JC, by WS.

    … you nauseate me.

  • http://www.10ch.org/ www.10ch.org

    @30 chapper
    What do you propose, then? Fatalism? I see a lot of fatalism on these comments here, a lot of people in this comment space who somehow believe that their fates are already decided for them, and this fatalism is just ridiculous. Just ridiculous.

    Humanism and rationality are to be preferred.

  • www.10ch.org

    BEWBAHZ!!! IZ LUV BEWBIEZZ!!!
    ( @ Y @ )

  • michael

    by Wolfy

    @11 Charbax

    The tax that I pay goes to support things like healthcare, the police, basically everything the state pays for. Basically something that everyone uses.
    Why should people pay a tax to pay for musicians? Especially if they don’t listen to them? What if the musician releases one song in his/her career and somehow expects this tax no matter how popular the song?
    Here is one thing you need to do. Before calling for changes in global economy practices, research your ideas first. That is, pros and cons, how difficult to implement, whether people would like it implemented and such. Then, you can say it. I speak for everyone here when I say we prefer ideas that have some thought behind them, unlike the now failing business models of the record industry.

    Wolfy tax isn’ta good word. What should happen is the following. There should be websites which host artists and advertisers (just as there already are). From these websites viewers, listeners, what have you listen to streams, can download, upload, share, exchange and possibly do a whole lot more. ASCAP and or a group(s) like ASCAP monitor the traffic on said website. every time an artist is shared, streamed, etc the ASCAP like group insures that a royalty is paid to the artist. These royalties are derived of the profit/income that the website receives from advertisers. Obviously, the most played, shared artists will receive the most royalties. averts should most ideally be silent and non-invasive and very tailored toward the specific content preferred by the viewer who is or who can become a member of the site as the site should/would essentially be a social bookmarking website as well. The viewer/member can decide how much information they’d like to enter into the site in order to tailor the advertising focus toward himself. Perhaps there would be a minimum amount of shares,listens with which the band must generate in order to qualify for royalty access or perhaps not. perhaps if there were though it would allow advertisers to temper their costs and – perhaps even the bands can select which advertisers they feel comfortable about and which they feel conflict with their ideological beliefs and therefore shouldn’t be aligned with themselves. All of this is of course, voluntary. Simultaneously the RIAA and others should drop all their law suits and there should still be sites with which their are no adverts where people can share, listen, etc.

    The voluntary aspect is quintessential though. this or these site would specifically be geared toward crediting artists. Advertisers in this case are just lucky to be along for the ride and must therefore pay for the ride, visibility since they are gaining potential revenue, profit via these channels which are only relevant due to the artist. – just as myspace, youtube, last fm, when an artist plays their own page is prompted – upon that page the advertising can play silently and non-invasively –

    if you wanna get really imaginative – advertisers should look at putting as much information as possible into the viewers hands with the intent of “leading the viewer to money” – for example – if the viewer is gainfully employed then they are that much more apt to spend – therefore – the viewer can upload his resume into the website’s database and then the site can attempt to channel that information toward a prospective employer – like a dating service –
    like okcupid –
    everything to get money into the pocket of the consumer and then theoretically back into the advertisers pockets, the business who is advertising’s pockets and then into the website and the artists pockets who are also consumers who will then turn around and put it back into the business who is advertising’s pockets —

    “upward mobility” in this economy is eventually qualitatively measured. therefore, an educated populace is paramount to the perpetuation of said economy – the more we listen, the more discriminating our tastes become
    therefore is is the job of the economy, the model to accommodate there increasingly discriminating tastes while directing information toward the users which effectively qualifies their tastes, their living conditions, etc. The ceiling of this movement which is equivalent to the real world limitations of our natural resources is a coordinate, or approximation, the top of what would be a very self-evident yet colorfully illustrated pyramid which is continually alluded to, remarked about, calendarized via the advertising feeds which the user has selected to appear on his/her screen. the user can of course choose not to enter any information and receive just random “feeds” of adverts. the more information entered though – the more specific the feeds can become – the more people enter their info – the more and the better matches can take place –
    matches don’t just have to be jobs – matches can be all kinds of things –
    matches can even be non-profit information, other users looking to collaborate – petitions – all the categories on craig’s list
    - matches could be like a classifieds section/dating list which does all (most) the work for you –
    matches can orchestrate online flash mob like scenario’s for bands
    - films – etc where artist’s having selected the adverts they approve of and users having selected the adverts they approve of – (the ones that conflict just don’t show up but can still be tracked as such and visible as such to the viewer)

    - from there advertisers can begin to see which bands and which demographics are aligned and they can align themselves, their brands accordingly.

    advertising of course, should not be just for the corporations. advertising should be available to the grassroots campaigns, sloganeering. And of course, there could be multiple website that operate similarly and attend to different bands, markets, etc.

    the website could be like a record store or company which hosts very select bands – or it could host anyone and everything.

    what would make the best of the websites work though is open source-like aspect entering your own info, and via that tailoring the feeds, quality of the exchanges taking place. the intelligence quotient of all who are involved also determines the level of qualification that takes place.

  • Anonymous

    @NubCakes
    “Wow, your really retarded. For one you said that thing about music and for another you think that people spin bullshit in boardrooms.

    That’s right… billion dollar industries are run by people that accept bullshit from people.”

    At first I started laughing because I thought you were being sarcastic. Then I started laughing even harder because I realized you were actually being serious. But now I just feel really, really sad for your mother.

    @NubCakes
    “I bet you think your smarter than other people don’t you.”

    I’m alot smarter than you, oh Pointy-Haired Boss.

  • Fight_the_Tyranny

    They already unjustly tax us. We only have to look to blank media and portable player duties. If you can’t beat em, tax em; that’s their policy, and this socialism for big business is supported by many governments…

    Now they are trying to apply taxation to ISPs; just in case you might download music. The copyright industries sure do have a sweet deal if they can earn profits without actually selling something (even something intangible).

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  • my 2 cent car crash.

    Per Eirik Johansen
    dudes name (peer)
    bet that rat bastard is d/l pr0n right now on bt

  • Charbax

    @22 Wolfy, I have researched the idea, I know I am right when I say that the ONLY solution is for artists to be paid through taxes.

    Now if you prefer taxing only the people who use the Internet to stream and download music at $15 per month, to then sue people who’t voluntarily pay that tax and still stream or download music, or if ou choose to quite simply tax every citizen with an average of $5 per month based on fortune and income levels for full unlimited access to all works of art on the Internet.

    My arts tax for the USA for example, at an average of about $5 per person, amounts to about $20 billion per year. That’s already plenty more than all artists are getting in the USA each year combined. It would amount to about 0,14% of the US Gross Domestic Product. $20 billion out of $13,84 trillion.

    Do the same type of taxing in Europe and other rich countries, in each country based on the average income per person and you’ve got close to $100 billion for all the artists and for financing all the works of art of the world each year. That is including the financing whatever big movie productions and any other expensive artistic projects.

    $100 billion per year can pay for close to 3.5 million artists full time salaries.

    Basically it kind of means that about 1 person in 1000 with the most talent and the most creative ambition could be a full time paid artist.

    But consider also that you could have lots and lots of simply part time artists as well instead of only full time artists. Such as some casual bloggers and video-bloggers, they could get just payments according to their creativity and they can still also have another job as well.

    Those $100 billion from the art tax, doesn’t have to be the whole art industry as well. I am not suggesting we completely stop the industry from selling CDs, DVDs, Blu-rays, cinema tickets, concert tickets and plenty more as usual as well on top of that for the established popular artists to enjoy even more income and for them to continue to also use as many private funds as they ant to continue to finance their expensive artistic creations.

  • NubCakes

    “At first I started laughing because I thought you were being sarcastic. Then I started laughing even harder because I realized you were actually being serious.”

    So, despite evidence to the contrary in this article (Per Eirik Johansen in other words) you still think that boards – appointed to run billion dollar enterprises no less, carrying thousands/millions of other organisations risk (share holders) – comprised of people who have to deal in hard cold facts don’t realise that p2p is hurting their industries distribution model and there’s little they can do currently. What they say in public is different to what they know from private consultation.

    Despite the fact that the article actually has a former board member saying exactly this you still think that boards believe they can stop p2p.

    The fact that you state that you think your smarter than me is typical behaviour of people who don’t wish to be thought of as stupid and hence “confirm” this in their own head.

    I have no idea if I’m smarter than you – how the f*ck would I know – but I’d say age is on my side.

  • #46

    P2P is not hurting music business in any way. It helps, by generating more interest in music. CD/LP sales have been falling since long before internet was public, but attendance in concerts has been steadily rising last few years.

    Problem with taxing for music is, who decides what is worthy, who decides what is good music and what is crap. It would be as oppressive as it is now, just not driven by greed, but by political accountability. Public founding would result in even less innovation and less artists’ control over their work, since their music would need to satisfy most of taxpayers, not just most of their fans/shareholders. Bad idea.

  • Anonymous

    @NubCookie

    Age will get you killed, how can it be on your side?

  • MusicInsider

    Eventually. All music will be free.

  • http://www.10ch.org www.10ch.org

    “they could get just payments according to their creativity”
    There is a slight problem with that: how shall their “creativity” be measured? It is not very fruitful to have the government commissioned to judge creativity for something so subjective. To get government involved just spells trouble.

  • Sharing is fun!

    Eventually all music will be free? Music is already free, right? When was the last time I paid for music? I think I bought an old Enka record 2 years ago, but that was just for fun.

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  • Kevin Farley

    It’s not downlooading, but MTV not showing videos. videos=ads=sales. Radio is dead.Show videos, cd’s get sold. very simple.

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  • Simple Truth

    Kill them all, let god sort ‘em out!

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  • Now if only…

    NubCakes = industry advocate
    Thinks of him/herself as a grand noise manipulator, how is the iinet case going?? F__kin loser

    See how pretty, see how smart…

    Yes p2p will triumph in the end….

  • arrannen

    I have a band. I record our music via my home pc…record, mix and convert to Mp3 in my basement. I upload it to the torrent sites and limewire. 2 hours later 50,000 people are listening to my music and wanting more. Some people decide to buy my song, cool!

    I get to keep ALL the earnings from my music and dont have anyone telling me what I can and cant do.

    I’d like to see ANY recording company even come CLOSE to that kind of distribution. Unfortunately the recording companies havent quite gotten there yet (they are still Many MANY years behind) clinging to the old “CD’s”. Now that people arent buying as many cd’s and getting their music digitally, they are going to FORCE you to pay them.

    HOLY balls though…you take a CD from the department store and you get perhaps $100 fine. you download an album and you’re fined $600,000. thats a LOT of cd’s. so in order to make up for declining sales, they extract it from the very people who are supporting their posh ASSES.

    Bullying your customers is NEVER a good idea. Kinda reminds me of the stories of Robin Hood and Prince John.

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