Thursday, February 01, 2007

QotW3: To Download, Or Not To Download?



Who is stealing music?



I just bought an original copy of an XYZ band's album. James liked only one track off the album while listening to it in my car. When I got home, I ripped that song into an MP3 (MPEG-1 Audio Layer 3) format onto my computer and sent it to James through MSN (Microsoft Network) messenger. I shared my file with him.

If I did not send James the song, he would have opened his P2P (peer-to-peer) file sharing program and downloaded it off some other person's folder of shared files. Either way, XYZ band would not have sold an extra copy of their album to James. What seems to be the difference? I am allowed to rip the song off my copy of the album and into my MP3 player, but not let James have it. How do you actually control the circulation of MP3s?
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With new models of MP3 players constantly being introduced into the market, it is without a doubt that MP3 players have replaced the popularity of MD (Mini Disc) and CD (Compact Disc) players. Now that nearly everyone around us owns MP3 players, take a step back and wonder: where are all these people getting their songs from?

File Sharing
"File sharing is now one of the most common on-line activities. More than 60 million Americans have downloaded music and the number of file sharers continues to grow rapidly" (Oberholzer-Gee & Strumpf, 2005).

P2P programs such as Napster and Warez P2P provide users with the convenience of downloading songs from a whole library of files put together by the shared folders of other users. Everyday, there are millions of file transactions being made through such programs. Thus, P2P programs have easily become the blame for any decline in record sales by the music industry. Is it really the cause?

CRIA (Canadian Record Industry Association) did a study on whether downloading music actually hurts record sales. From this research, they have found that "the largest downloading demographic is also the largest music buying demographic" and "dips in music sales have little to do with the availability of music on P2P services" ("Canadian Record Industry Association Study," 2006). This is a very interesting finding especially when it is coming from a recording company itself!

The Copyright Law
The purpose of copyright is mainly to benefit content creators while also encouraging creation of works. According to Kevin Brady, Attorney at Law, "It is generally accepted that a person may make personal copies (such as mix discs) of his/her legitimately-acquired CDs...However, the question of whether a person may give copies to others is not clear." In addition, copyright law states that no legal action may be taken against anyone who engages in "non-commercial" copying of musical recordings. The problem lies with the undetermined legal meaning of "non-commercial" (Brady, 2007). Technically, in reference to my anecdote, sending James the MP3 file is indeed non-commercial.

"...[T]he entertainment industry is arguing that the copyright law has not kept up with the digital world" -- Terence Smith, media correspondent (2005).

Just as the First Amendment grants people the freedom of speech, copyright law facilitates the monetary gains of producers and distributors. Therefore, if we stick to the current stringent copyright law, would we be neglecting the interests of the public?

Sharing = Promoting
When peers share digital music files through the Internet, they also help to promote the music. Recall the CRIA research findings, "The largest downloading demographic is also the largest music buying demographic."

Put the profit concerns of the music industry aside and look at the situation through the eyes of the public, the consumers. Allowing music files to be circulated freely on the Internet would give people the opportunity to sample the music. If it suits their liking, they could head down to a CD store and purchase it. If it does not suit their liking enough, the producers lose a chance of increasing their sales, but they increase the awareness of the singer.

"While downloads occur on a vast scale, most users are likely individuals who in the absence of file sharing would not have bought the music they downloaded" (Oberholzer-Gee & Strumpf, 2005). Objectively, it is equivalent to free promotion of their music!

The Music Industry
The number of sales made is a way to determine who is on the top of the charts. But let us face it; the music industry does not only make money from the sale of albums produced. Band merchandise, concerts and other special performances rake in the profit for those in the music industry. If a band is good enough to make it big, it will do so despite the existence of P2P programs or other forms of downloads.

Today, even with millions of music files being circulated, bands and singers who are good enough are still clenching the top spots in the market and making big bucks. As the world advances, big changes are constantly being made. Instead of fighting to protect their comfortable share of the economic proceeds, the music industry should change their mindset and welcome the new age of P2P file sharing.

Analysis:
Content creators (music industry) want to secure their profits while the public wants freedom of access to digital music files. Currently, the content creators are well protected by the copyright law that has given them the right to charge anyone who infringes the copyright. To benefit both sides, compromises must be made.

Since the CRIA research has proven to us that the exaggeration about the music industry suffering major losses due to music downloads is not true for all companies (Geist, 2006), content creators should be able to continue making profits even if the public were able to share music files legally. After all, P2P file sharing is not for monetary gains.

Solution:
Legally define peer-to-peer sharing of digital music files as a "non-commercial" act. With the definition of the once unclear word, "non-commercial," disputes between music industry companies and people who download shared music can greatly be reduced.

P2P programs should be allowed to exist legally so long as they serve no commercial purpose and do not attempt to make profits. On the other hand, the music industry should be encouraged to accept the existence of P2P programs and even embrace this new technology.

As people are spending more time on the Internet, file sharing is inevitable. This means that copyright laws are no longer as effective despite the numerous legislations being set up. To wrap up the solution, the public must be urged to access P2P programs ethically and not infringe other sections of the copyright law.


As Garrett Hardin said, "People are the quintessential element in all technology...Once we recognize the inescapable human nexus of all technology, our attitude toward the reliability problem is fundamentally changed."

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References:

Brady, K. (2007). Copyright FAQ: 25 Common Myths and Misconceptions. Retrieved January 31, 2007, from
http://users.goldengate.net/~kbrady/copyright.html

Canadian Record Industry Association Study. (2006). Retrieved February 1, 2007, from
http://www.cbc.ca/consumers/market/murmurs/archives/2006/20060320_downloading.html

Geist, M. (2006). CRIA's Own Study Counters P2P Claims. Retrieved February 1, 2007, from
http://michaelgeist.ca/component/option,com_content/task,view/id,1168/comment_write,/comment_view,1/

Hardin, G. (July-August, 1976). Skeptic. (S&S).

Oberholzer-Gee, F., & Strumpf, K. (2005). The Effect of File Sharing on Record Sales. Retrieved January 30, 2007, from
http://www.unc.edu/~cigar/papers/FileSharing_June2005_final.pdf

Smith, T. (2005). Downloading Debate. Retrieved February 1, 2007, from http://www.pbs.org/newshour/bb/media/jan-june05/download_3-07.html
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Some extra readings:
From CNN.com - Simple downloads, complex change:
http://www.cnn.com/2004/TECH/internet/08/18/online.overview/

From AT&T - The popularity of music downloading:

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6 Comments:

Blogger Unknown said...

In this increasingly competitibve world, P2P sharing is a new market where profiteers can exploit. But hopefully, consumers like you and me will be able to benefit, and not work harder to share knowledge! Good job Amanda!

February 01, 2007 11:09 PM  
Anonymous Anonymous said...

personally i feel that P2P file sharing and music downloads is kinda a hard thing to curb, moreover since it is so convenient and accesible and simply speeds up the process of how music reaches its listeners and how many activities function. For eg people usually send files over the internet so as to speed up time spent in meeting up just to pass stuff to each other. So yup i agree with u that such things are inevitable, realy depends on the whole ethical issue thing...

February 02, 2007 2:26 AM  
Anonymous Anonymous said...

Hmm... in my point of view I find the solution a little too simplistic... if it was that easy for iTunes music stores to be set up, more would have done so, instead of relying on pain-in-the-neck(think costly) legislation. transactions over the net are always tricky(think fraud and phishing) and not all users can participate too... furthermore how do we stop the end user from sharing/selling copies of the file once he/she downloads it?

nice presentation though... love the communist poster... all it needs is poster colour scheme and BANG we are right in the middle of cold war propaganda..

February 03, 2007 8:08 PM  
Blogger Amanda said...

To "D for decadence,"

Yes, it is indeed difficult to stop someone from sharing music files through the Internet, which is what I had discussed in the introduction. With so many Internet users, we are unable to control/keep track of the circulation of MP3 or other copyright files.

iTunes music store charges US$0.99 per song you download. However, my proposed solution was more towards the P2P sharing of files, which is free.

I'm glad you liked my presentation of ideas. Thanks for your comments =)

February 03, 2007 10:12 PM  
Anonymous Anonymous said...

icic... I thought you meant p2p but they still have to pay for it.. Too bad we don't have iTunes Singapore so I guess we'll gladly take a pirates life anyday.

YO HO ITS A PIRATES LIFE!! ARRGHH

P.S. Its a pity how we put a worth to everything nowadays. Although absurd as it seems, Lykourgos' methods might actually eliminate such problems. Nonetheless, it is not perfect as other problems will rise from it too.

February 03, 2007 10:32 PM  
Blogger Kevin said...

Amanda: A little problem with some white text appear on white background (i.e. invisible). I still managed to read it though.

We can't simply will that peer-to-peer transferred music be deemed non-commercial, that alone doesn't help content producers unless you provide a viable benefit (other than for promotional purpose). There are plenty of viable solutions in the readings.

Either way, good attempt. Full grade awarded. :)

February 04, 2007 8:08 AM  

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