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Megaupload to Universal: You’ve Got Some Explaining To Do

In their 18-page response filing at the US District Court for Northern Californian earlier this month, not once did Universal Music say why they forced YouTube to remove Megaupload’s Mega Song. Since that’s what the dispute between the two companies is all about, that was a pretty strange event. In a new filing, Megaupload makes it clear that it isn’t going to be brushed aside. The cyberlocker wants answers, and it will dig deep to get them.

Early December, Megaupload’s ‘Mega Song’ was on its way to becoming a viral hit, only to be cut down from YouTube by a Universal Music takedown demand. In response, Megaupload filed a lawsuit against Universal and YouTube reinstated the video.

The basis for the takedown has never been clear. While YouTube clearly indicated that UMG had taken the Mega Song down on copyright grounds, Universal later added that it had a deal with YouTube to take down content even if it doesn’t infringe their rights. This, the company says, allows it to sidestep any claims Megaupload makes against it under the DMCA.

Notably, though, Universal has never said exactly why it had the video taken down. Soon, however, it may have to.

In a new Megaupload court filing made available to TorrentFreak today, the file-hosting service makes it clear that it will go to considerable lengths to find out exactly what has been going on at Universal, YouTube, Vimeo and other entities involved in the Mega Song takedown.

“In its opposition to the [Temporary Restraining Order], UMG did not even attempt to defend the legitimacy of its false claims to ownership of the Megaupload Video,” states the Megaupload filing. The cyberlocker adds that UMG made several assertions which now require clarification for the case to proceed correctly.

The first UMG claim is that Megaupload sued the wrong UMG ‘entity’. They say that UMG Recordings is the correct entity since they are the ones dealing with YouTube and other video hosting services.

Second, Megaupload wants to get to the bottom of UMG’s claim that the takedown request it filed with YouTube was not made under the DMCA, but as part of a private historical agreement the label has with YouTube.

The third UMG claim is that they had nothing to do with takedowns of the Mega Song carried out at other video hosting sites such as Vimeo.

Bemoaning the fact that none of UMG’s claims have been backed up by evidence or witnesses, Megaupload says it now needs facts to move forward.

“Megaupload therefore respectfully requests that the Court grant it leave to take limited but essential written discovery…regarding the UMG Entities’ private dealings with service providers regarding the takedowns of the Megaupload Video and the identity and authority of the persons or entities who requested the takedowns,” the company writes.

“Without such information, Megaupload will be unable to determine which UMG entity instructed YouTube to remove the Megaupload Video; which other, non-UMG persons may have so instructed YouTube; and on whose behalf, on what grounds, and under what authority the removal was sought.

“In addition, as UMG has denied sending notices itself to other service providers, subpoenas to any such providers who took down the video is the appropriate means to determine the party doing so,” the filing adds.

There can be little doubt that keeping the Megaupload name in the news is something that Universal should have anticipated when they took the Mega Song down. Right now, if the aim was to shut Megaupload up and dampen their campaign, they have failed. At the time of writing the standard and HD versions of the song have close to 13.7 million combined views on YouTube.

But perhaps even worse, Universal appear to have enabled an arch enemy to take the moral high-ground in their ‘rogue site’ propaganda war and that’s why this discovery process will be so interesting.

Do Universal have an ace up their sleeve, or was the Mega Song takedown simply a terribly ill-conceived, knee-jerk, and solely destructive action? We’ll all find out soon enough.

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  • Dicks

    it was a universally bad idea to begin with

    • Cocks

      Agreed

      • Cunts

        Amen

      • Guest

        You hear that? It’s the sound of UMG fucktards desperately trying to delete any related email chains.

        The discovery should take into account digital forensics to look at what was deleted. (Anons; any of you able to sniff around for incriminating chat just in case?)

    • http://twitter.com/al_d_25 booda dass

      Well said

    • Lee

      Not true. Megaupload setting an irresistible trap for UMG was a fantastic idea. I promise you that this was a setup, and UMG bit on it because they are to arrogant to ever see anyone else’s side but their own.

    • DrFoo

      Get the popcorn!

      • DRuNKeN MaSTeR

        I already ate the popcorn :( But I’ll make some more, because this is getting better and better by the minute.

  • Cyrious

    Translated: Universal is F*CKED

    • Guest

      Boycott UMG (Universal Music Group) Products

      • Guest

        Boycott them, or just don’t *buy* them?

  • Bakapinkuu

    Booyah. Here’s to hoping MegaUpload keeps Universal’s feet to the fire on this one, instead of being bought off with false promises like GooTube et al.

    • Anonymous

      I’ll show my support. Hell, I will support ANY company that stands up to these Internet terrorists. Enjoy the money from the 2 yr membership I just bought. Show them that they just stepped on the wrong toes!

      • http://pulse.yahoo.com/_IZ5BM5GNLA54OADSWGSXAMA7SY Jay

        *ahem* They’re not internet terrorists. That’s Anonymous’ job.

        They’re much worse. “Rogue labels”. Labels hell bent on harming others in the hopes of making two extra pennies out of you. At least terrorists have useful jobs in securing freedom on the net.

        Rogue labels just cause massive damage with their overpowered Gaijin smash 2 hit combo. It’s so damn overpowered…

        I just hope Megaupload hits them with an OBJECTION notice

  • Anonymous

    Hmm, as much as I’m glad to see the count that high, it’s a bit inflated since the video plays automatically with every download from the site now. How does youtube track “views?” Does the view have to be unique, or watch the video for a certain length of time?

    • Fly

      You’re exactly right. And MegaUpload is doing this for that exact reason, to inflate YouTube views.

    • Guest

      I guess unique IP addresses + YouTube accounts.

  • http://www.facebook.com/people/Pac-Ducor/100000183951976 Pac Ducor

    I think both companies are childish ignorant idiots and until the people *consumers* begin to revolt and attack these companies, asshats will continue to push the limit of laws and regulations only to lead us to our own De-evolution.

    • http://twitter.com/icanhazsake Ninja

      Childish? Ah no, they aren’t. Maybe ignorants using adults playground (courts) but childish?

      And are you referring to Megaupload as well?

      I see this as Mega taking the chance to nuke the credibility of MAFIAA so called ‘rogue sites’ list and taking a whole lot of stuff down with it. I say it’s bold, risky and plain epic. Dunno what will be the result but so far the publicity is one nice win.

      • http://torrentfreak.com/ Rob8urcakes

        Awfully well put my friend.

        I too agree there’s NOTHING childish about this when you take into consideration Universal and their fellow MAFIAA members are using US government agencies such as the FBI, DHS, DoJ, ICE, US Courts, the US Office of the Trade Representative, and US embassies and their busy Ambassadorial Staff worldwide to destroy our hard-fought for freedom of speech, freedom to communicate, freedom of expression and freedom from fascist governmental oppression.

        This whole ‘situation’ between Megaupload and Universal is ANYthing but childish.

        If anything, it goes to the very heart of our democracy, our political systems, our economic systems our freedoms and even our humanity.

    • PlatinumC

      Well someone needs to take a stance finally, and as we see lately more and more companies are doing it. If bigger go ahead, the smaller will follow.
      That’s how humankind is, they need a leader.

    • Keith Stratford

      Are you saying that MegaUpload are being childish and ignorant? No they are not.

  • Hophead

    This is the GOOD fight – you know the one that our elected officials are too PU**Y to take seriously.

  • B-streisand

    “There can be little doubt that keeping the Megaupload name in the news is something that Universal should have anticipated when they took the Mega Song down.”

    @ umg: Can you say Streisand Effect?

    Go get them Kim Dotcom XD

  • Anonymous

    Should actually be quite interesting to see how that all works out. Wow.
    privacy-works.tk

  • fagsuber

    Is it just me or is there something fishy with the megasong story….
    It all just seems so fabricated….
    If you think about it taking down the song was just so perfect for mega and the timing was also so great it’s almost unbelivable…. :>

    • Anonymous

      Why do you think they used UMG artists exclusively for the video? Why do you think Universal has more video takedowns on Youtube than any other recording label? (It’s been insider knowledge for awhile that the agreements between Youtube, Viacom & Universal go against competition and anti-trust laws by providing illegal advantages for marketing and distribution of goods and services to these two companies. Google however, may get off scott-free, because from what I understand, the agreements were not made when Google owned the site, they simply honor the grandfathered agreement.)

      • A Robinson

        There’s a really interesting anti-competitive angle to this. UMG battling a file sharing site is one thing, but using secret agreements to unfairly stop a competing music company (which is what Megaupload is in this case) is a much more serious offense in the eyes of the law.

        • http://twitter.com/zeruch zeruch

          I don’t know about the anti-comp angle, but NBC/Universal has an overblown, spastic “anti-piracy” group that is well known for it’s line of incompetent blowhards for leadership and a near total lack of clue writ large. I wouldn’t be surprised if this is all just a case of hubris run amok.

      • http://torrentfreak.com/ Rob8urcakes

        ** Google however, may get off scott-free, because from what I understand, the agreements were not made when Google owned the site, they simply honor the grandfathered agreement. **

        That’s not how it works in the UK.
        When one Company buys another and assumes control, all the debts, the legal liabilities and therefore past ‘errors’ of the previous Company are inherited 100% by the purchasing company.

        It’s the age-old concept of caveat emptor Frosty, ie “may the buyer beware” coz it’s their fault if they fail to check all aspects of the item being purchased. That means Google (or GooTube) CAN be pursued for failing to declare their agreement with Universal is null-and-void due to being in potential breach of law (eg anti-competitive law).

        So MEGAupload’s lawyers have indeed made a MEGAgood move in moving for these items of discovery prior to proceeding with a full Court case.

        In fact I give MEGAupload’s legal team a MEGAthumbsup for this excellent move, and I’m sure 2012 will be nice n rosy for them coz they’ve earned their cash well with this one already.

    • Jmorse43508

      It could have been bait for this very purpose in the hopes that MU could call UMG to the carpet on it and take them to court.

      If so, UMG certainly fell for it.

    • Anonymous

      Nice theory but you overlook that some people are usually stupid, greedy, arrogant and selfish.

  • Alyssa Blindy

    I find it quite funny that Universal got themselves into the middle of this.

    • Anonymous

      That is little surprise seeing that Mega made use of many UMG musicians.

  • Jimbo

    when is the next court day dealing with the new filings? let’s hope that a Mega win is forthcoming and that UMG, along with others, get their ‘wings well and truly clipped’. this sort of shit has been going on long enough. the entertainment industries need to learn that they cant do as they like without suffering the severest of consequences, just like they want the severest of consequences taken against others!

    • http://torrentfreak.com/ Rob8urcakes

      ** when is the next court day dealing with the new filings? **

      Due to these recent developments no-one can accurately predict when that day will occur coz Universal can lodge an objection, or otherwise delay process.

      Then it’s up to the Court clerks to schedule things within the given time-limits, so don’t hold yer breath waiting for a quick result Jimbo – ‘they’ can all drag things out for quite some time.

  • Anonymous

    I am hoping Universal gets screwed by MEGA.They deserve a good screwing.
    Boycott all MAFIAA !!! Remember the SOPA/PIPA and speak with your wallets now people.

  • Guest

    Haha! Now the “Vivendique Univers-Sale” parasites and criminals are running for cover!

    Their world of intellectual filth is crumbling.

    Let’s kill them all!

  • Guest

    These UMG parasites are going to buy themselves a judge somewhere.

    Never-mind that. The damage is done.

    Now the people get it.

    Now we can kill them all!

    • Lmao

      Let’s kill them all! xD

  • http://www.facebook.com/people/Ender-Wiggin/100000885624281 Ender Wiggin

    Oh goody, someones going to get a good kicking. i might have to make myself a megaupload account.

  • Anonymous

    Assuming that Universal does have an agreement with Youtube to remove any content they don’t like, isn’t using the DMCA takedown procedure still fraudulent? Why not use whatever method that is spelled out in the agreement with Youtube and Universal?

    • http://torrentfreak.com/ Rob8urcakes

      Yup, good point.

      It seems our own private content can simply disappear from GooTube without reason, with no right of appeal, and with no legal recourse either.

      But that’s EXACTLY how these Corruptorates want it to be.
      They want it to be their Planet, and everyone pays multiple times for the same shit whether we’ve paid for it before and regardless of whether we like it or not.

      This is true “Democracy in Action” MAFIAA-style guys. Wanna vote for it?

  • http://www.twitter.com/echoman74 echoman

    lol this is getting better and better day to day. youtube is not in the wrong the had to act as a 3rd party. But the smear and audacity of umg even mentioning copyright is a clear case that umg thinks they own people, “WELL THEY DON’T” people are not owned by a company.If they want to support ‘mega’ it’s their free choice to do so.
    The industry has gone above and beyond their power after all they are just a company.

    • http://torrentfreak.com/ Rob8urcakes

      I’ll certainly agree with your latter points, but I profoundly disagree that GooTube is not in the wrong.

      Google purchased a Company with a dodgy contractual agreement that is not only highly suspect but very likely unlawful, and that means Google (the new owner) is liable for adhering to that dodgy agreement when Universal sought to enforce it.

      So Google is just as liable as Universal for this travesty against OUR freedom to communicate openly Worldwide.

  • http://pulse.yahoo.com/_FCNK7C55CBUYFVSC5LNWKB322E Buglord

    sure, it’s nice and all but… it’s MegaUpload.. I stopped caring about whatever they did once I tried using it, sorry, I’ll keep using MediaFire, at least there I can get what little I want. seriously, by the time a download is able to start on MegaUpload I could have downloaded it at MediaFire twice, along with several other files while I was at it. maybe even tried it, seen it wasn’t what I thought it was and then continued searching… there are things I can stand being wasted without reason, time isn’t one of them and money isn’t a reason.

    • Dementia Pugilistica

      ahh, sure. ignore laws and freedoms because you dont like it. Faggot.

      • Guest

        ahh, sure. Make a homophobic statement just because of some jackass 12-year old. Prick.

    • Huh?

      Megaupload only takes 9 seconds for a download to start……I guess 9 seconds is like 9 hours to you :D

      And mediafire is also a VERY good website but megaupload is good when you are trying to download files that is more than 175mb big…….

  • foff

    What I have always wondered about copyright is where you draw the line. If I string half a dozen notes together in a song does that mean I can order the take down of any song that uses those same six notes in the same order? In other words when you copyright a work what constitutes reasonable protection? In a song a reasonable person might agree a song is copied if enough of the melody is recognizable but a few phrases or similar voice is not enough to base a claim.

    Without getting too technical or prolonging the argument in my opinion take down requests should only be honored in substantial infringement claims only and not minor or incidental cases. This would not preclude a lawsuit but but chances of winning anything in such a case might not be worth the effort. Certainly the courts owe some protection against random and malicious take downs of legitimate works based on frivolous claims.

    • http://torrentfreak.com/ Rob8urcakes

      That’s why Universal AND GooTube should be ordered to pay MegaUpload for all their tangible losses as well as additional compensation for a whole variety of reasons.

      They should both also be FINED billions of bucks for bringing the law of CopyWrong into disrepute and interfering with normal business operations of a legitimate business who knows how to treat it’s paying customers with respect and dignity – unlike the MAFIAA (and very possibly Google too).

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  • Guest

    My biggest issue with this is IF Universal did have a contract to authorize a takedown notice without filing DMCA – then it’s actually YouTube who is liable for mislabeling the takedown as a DMCA action..

    • Derpface

      Not if that agreement had terms & conditions which clearly stated that this privilege can only be used for taking down DMCA-infringing videos.

      ..which it did.

  • http://twitter.com/TarzanSharif Tarzan Sharif

    interesting “sidestepping litigation” – I do sense a supreme court case in the near future over all these internet wars

    • James King

      Given the HEAVY corporatist slant of the SCOTUS, I am not encouraged by the thought of a Supreme Court case.

  • Uolamer

    I am not a fan of either site personally but it seems UMG obviously did not violate the DMCA take down rules since they simply removed the video with the power youtube (Google) gave them. Google seems to not like the fact they did it and put the video back up. It is possible it was done through automated means which would be the best case for UMG I think. I know anti piracy groups have had issues with their automated filters removing things they did not have the right to before (the box movie was one infamous one). If they did this by hand it could look quite worse. As far as legally what they are responsible for I have no idea, but I know their lawyer and he has been defending ‘rouge sites’ for a long time, he defended my site back around 2000-2001 area, I picked him because he won the mp3board case… He has a good record as far as I know in this field…

  • nerdman

    torrentfreak, you need to get to the bottom of whether or not those celebrities knew what they were endorsing, that is the real key to blasting megaupload and its antichrist devil child megavideo all over the mainstream media.

    • lulz

      fail troll is fail, they were obviously paid just like any other advertisement you see on tv. Of course the As Seen On TV guy uses ShamWOWs to clean his splooge up!

      • Guest

        Ditto. It’s just an ad.

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  • Anonymous

    UMG would have been much better off just saying “our bad” and accepting the modest fine under DMCA. Now they will be charged under a much more serious crime of trying to sabotage Mega’s advertising campaign.

    Then let us not forget that IFPI got involved in taking down this Mega Song as well.

    If anyone is interested then UMG have been back in action where this time they YouTube censored 50 Cent’s new, and suitably titled, music video “You Burn Me” which can now be seen here…
    http://rapradar.com/2011/12/25/new-video-50-cent-they-burn-me/

    This is one musician who believes he can release his own music under his own label but UMG do not like him using any distribution channel that UMG do not control.

    • Anonymous

      I am strongly against UMG’s actions, but what the company did most certainly does not constitute a crime. Just sayin’…

      • Boopboop

        Perjury

        DMCA Section 512(c)(3) states:

        A statement that the information in the notification is accurate, and under penalty of perjury, that the complaining party is authorized to act on behalf of the owner of an exclusive right that is allegedly infringed.

  • Anonymous

    wonder if 50cents will do the same as Mega, then? be interesting to have 2 cases against UMG (+IFPI) for the same thing. let’s hope that the court makes UMG pay the serious money out that they always want in and that they have no right whatsoever to carry out these type of practices, just because they dont like something and think all music/videos are theirs!

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  • http://about.me/chrisco chrisco

    Is it just my perception (probably) or does LA really have more than its fair share of dickheads and dickhead companies? Anyway, it’s nice to see a little guy stand up to a big stupid dickhead. Well done, MegaUpload guys and gals!

    • http://www.mobileinquirer.com/ Mobile Inquirer

      Megaupload was no little guy….;)

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  • Anonymous

    Knowledge is not a scarce resource in the economics sense and owning a number is absurd. Maybe sometime in this century big organizations like corporations and governments will figure this out.

    “Scarce” in economics means there is less available than people want. Since every computer can produce as many copies as you need of a data file, there is always enough of it to share. Every byte of data is just a number between 0 and 255. Data files with more than one byte are just bigger numbers. The idea that you can own a number is just absurd on the face of it to any rational person. People did not create numbers, they already existed, we just use them.

    • Guerrilla

      Thanks for this, imho the best comment.

    • Friend of the People

      I see one problematic assumption that undermines your entire post; you’re assuming that the value in cultural production should be seen in the product, or the finished good. It’s not. The value in cultural production is the work done to create the original copy. That is not a limitless resource.

      All of the numbers exist, but they did not exist in the specific pattern and medium until someone created it. All of the numbers that made up “Inception” existed before the movie did, but they didn’t exist in that specific pattern. We needed someone to arrange the numbers in that pattern for the first time. That is the valued work. Not producing new copies. Not distribution; the original creation. Production and distribution of copies do not significantly factor into the value; the act of design is the instigator of value.

      Viewed this way, we can see that the value of a cultural good is not zero, because there is a limiting factor; the demand for new cultural products. If everyone was willing to exist and go on without any new cultural products, without any new movies, music or games (or there was a willingness for the artists to meet everyone’s desires for free), then the value of the cultural good would indeed be zero. These conditions are not met, so the value can be definitively stated as “greater than zero”.

      This does not mean that the current system of paying after the fact is the best system. It may be more logical to move to a patronage system, where the rich pay to sponsor whatever they personally enjoy, and then the artist produces something after being paid (although the public could certainly get in on this, it would be harder because group investment on an unknown product would be spotty at best. It’s easier to identify the relative value of a finished product than a new and untested one). In this system, prior success and fame would probably be the relevant methods for ensuring investment, although saying any more than that would be idle speculation on my part.

      • Anonymous

        Obviously it takes work to create new content. What makes sense is a subscription basis, where you pay a flat fee to get all the content you want, or a set amount per month. Creators then get paid according to popularity, which encourages them to create good stuff.

        Imagine a “movie subscription” that lets you see X new movies in the theater, and download Y other movies for home viewing.

        • Friend of the People

          I would like such a system very much (although I personally wouldn’t want to see even one movie in the theater ever again if they were offered at home at the same time, but that’s a personal gripe, and very irrelevant here). However, the main problem with such a system is that to be workable, it would need to have near monopolistic control over the content market.

          It would be quite a good thing, but I’m not sure it’s practically possible, for the reason that the effort to create such a system would require a very good businessman, and a businessman will want to make money off of running the service. If he’s making profit, then the other producers of culture will ask “why can’t we do the same”, and could easily open sites of their own and restrict their content to their sites. On one hand, this would be a good thing because it prevents a monopoly from forming, but it also reduces the value of each individual service to the point where they will likely not be working the asking price. We can see this with Netflix, and if E.A. had better games, they would have a chance of doing this with Origin.

          In order to work properly, this would have to be set up as a mostly non-profit, where there would not be large gains for those running the site, in order to keep costs down and create a disincentive to large competition that will remove access to content. One solution would be for a rich philanthropist to create the site and run it as a charity project.

          Overall, I’d like to see someone try to make this type of site. I’m not sure it could really work without relying on monopolistic control, but it sounds like a much better option, and a better businessman than me could probably iron out most of the little details I can’t overcome in thought experiments. If the problem of actually creating the damn thing is overcome, then all the other pieces might just fall into place.

          Of course, that’s all based on current copyright law. If it changes, then nothing I’ve said will necessarily apply.

        • Danny

          @Enemy of the People

          Have you every heard of spotify? Each track on there is from different labels and new releases are always on there first, sometimes before they go on sale in the shops. They all get paid based on the number of listens. And Spotify make money from it.

          Lovefilm, netfliux, etc. have tried to do something similar but the movie dicks are trying to cut their noses off!

        • Friend of the People

          I have heard of Spotify, and while it is a good example of what the system can do, it does have a few limitations. First; it offers no form of investment or marketing for the artists. This isn’t very significant for music, where the only investment needed is in instruments, recording equipment, and a bit of free time. However, this will be very significant for mediums with higher costs. If the goal is to divorce the production of movies, games, and other forms of media from large corporations, then a distribution model in the form of Spotify/Netflix won’t accomplish that goal, because they don’t make efforts to appeal to the artists.

          Spotify works because the production of music can come from virtually anyone for a low cost; there isn’t a stratification of services there because the companies don’t have enough sway to create it. In movies, we can see that stratification arise because of the reliance that movies have on corporate money, if only because the populace will not invest in the creation of the movies by themselves. That’s a big reason why Netflix has failed where Spotify has succeeded, and why any service trying to replicate Spotify’s results with a different medium will face large difficulties. That’s the point; if you want such a service to succeed, then it needs to be run either from a position of power (which Spotify can claim because there weren’t any others willing to make themselves into contenders), or it needs to be run in a medium where others aren’t going to make claims to the same services (where Netflix failed by allowing other companies to gain market share).

          That’s not to say it can’t be done, just that movies, games, and other forms of expensive media will be much harder than music. I’d like to see someone try (and I mean someone with better business sense than Netflix. Not a well-run company), but I’m not sure that the results will be favorable. Of course, if they aren’t favorable initially, then we can get a better businessman and try again. That’s the beauty of capitalism. :)

          Overall, I’d say a better goal would be to try to divorce the success of the artists from the power of corporations. We know that the corporations do offer services to artists, like investment, marketing, etc… I say that we should work to replicate those services in a way so that investment and marketing money could be given by swarms of individuals instead of one large company. That would greatly reduce the power of corporations by replicating the only thing they give to artists that filesharers normally don’t. Then, starting a service like the one suggested above would be much, much easier.

          Finally, thanks for making fun of the name. It acts as a good barometer of how serious you are (or aren’t) about having a debate, and informs me of how much effort I need to put into my response. That’s why I kept this name you know. It’s served me well so far.

        • Anonymous

          @Friend of the people (replying to my own post because a reply button does not appear under yours)

          Regarding the higher production costs for movies and games, I have built and have online two game levels using the CryEngine game engine, the one used for the Crysis game series. They are not as fully fleshed as a commercial game, but a small team could reach that level. There is quite a large and skilled community at crydev.net and similar ones for the Unreal and Unity engines, and the engine developers are making it possible to publish games once you make one (usually on a percentage of sales basis). The high end engines are capable of recording computer graphics (CG) scenes as well.

          Since CG can take care of most set building and location shoots, what is left are human actors, the parts of sets they physically interact with, and digital cameras and lighting. For that you might have to resort to Kickstarter-like crowd funding. The movie team would present their story boards and script, and solicit funding to cover those expenses. If they have any track record from previous projects, that would help them secure funds for the next one. In that kind of environment, big name Hollywood stars would likely lose out, because such small scale projects just cannot afford to hire them at current rates.

          The point is that games and movies don’t *have* to cost tens to hundreds of millions each to make, and lower barrier to entry makes it possible for other funding models than the studio/game company system we have now.

        • Friend of the People

          I can’t speak to the technical side of what you’ve said. You obviously have much more knowledge in that then I do. What I do know is that while services like Kickstarter are quite good, they have demonstrated problems when dealing with increasing volume of customers. In short, their rate of successful funding of projects has decreased when exposed to volume over their projections (I’ve heard this has happened for similar sevices, but I haven’t seen the numbers, so don’t quote me on that). The problem with Kickstarter is that they have a relatively small base of dedicated investors; they need expansion on the investing base if they want growth. I’ve also heard that they don’t invest nearly as much in games as movies, or especially music, but I’ll dismiss that as a coincidence of the market.

          That’s not to say I disagree with anything you’ve said (It’s in my nature to be cynical, even when I agree with the cause), and I strongly agree with the sentiment that movies and games shouldn’t cost nearly as much to produce as they currently do. However, I do know that no matter what, they will be costly; even small teams working with limited resources can rack up a bill of tens of thousands of dollars, and that’s just to produce small indie titles. That’s not even mentioning the larger producers, and while some people do grimace at supporting anything large, I will say without hesitation that the large games these companies produce can be much more enjoyable and memorable than what small developers usually produce. Making sure that a service will appeal to them

          It’s possible, and it’s the direction that we should be taking; all I want is for people to remember that economic change like this won’t just happen on its own; this innovation won’t come about unless it’s well supported. The current system is very ingrained, and switching to another system, particularly one that relies on a subscription model instead of individual purchase, will take effort and support of smaller businesses.

          Overall, I’m optimistic. It seems that this stands a good chance of happening, so long as someone is willing to actually develop the business. I expect some smart entrepreneur to see the opportunity soon.

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  • http://pulse.yahoo.com/_PWP6FWEBTHHV5IY644H7WDBYHQ Stacey

    @stace ………my roomate’s mother makes $70/hour on the computer. She has been fired from work for 5 months but last month her pay was $7232 just working on the computer for a few hours. Read more on this site http://nutshellurl.com/22i5

  • http://www.facebook.com/profile.php?id=100002405313064 Maria Clara Oliani

    UMG, Youtube… things that seemed so gread are getting more fucked up everyday; they keep changing for the worst.
    I am completley megavideo side on this… anyone who isn’t is corrupted or an idiot. I mean, what the fuck is supposed to be an agreement that gives them the right to remove videos that actially respect the rights?
    There are people making videos working their ass out not to violate copyright laws and rights, and THIS is how you repay us?
    How the fuck do you want us to keep respecting anything of the sort from now on?
    UMG, go to hell. It will make life so much easier for evreryone.

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  • love&peace

    copyright law..i can understand that but .. we know we don’t like it ^_^ as well for freedom of speech and other stuff … we should be able to post our thoughts in text or in any form of media which means a late rule like UMG or DCMA ~ is crap if we say (i have the freedom of speech and to express my feelings ..lol in a proper way ..lets hope that works for all people out there..oh and, No i don’t steal neither do i say that oh i made that when it’s not even mine..anyone would rather say it’s not mine but i wanna show this to you(the world – what do you feel about my thoughts) something like that :) we all want this ..and you know it!!

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  • Derek Prince

    RIP Megaupload

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  • megalover

    Megaupload Is my life!!!!

  • Arsa92

    When it happens to us..we can’t do anything about it, and when it happens to megaupload , big companies / celebrities , the truth must be seen…justice must be done

  • watchoutsucka

    Spotify’s streaming rates are alarmingly low. The Guardian reported that Lady Gaga’s Poker Face had 1 million streams…..and paid her $167.

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  • Jason

    The truth is in the below link, thanks DoJ for illegally destroying our files on Thursday:

    http://pastebin.com/iquHfjBa

  • BTGuard - BitTorrent Anonymously

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