Piracy and payment

By Kristyn Maslog-Levis, ZDNet Australia
21 February 2005 05:42 PM
Tags: music, anti, peach, mipi, speck, piracy, pirate, isp
Q&A Music Industry Piracy Investigations (MIPI) head Michael Speck -- the controversial champion of the music industry's efforts in Australia to curb unauthorised obtaining and sharing of music -- is set to vacate his position for a quieter life. He leaves with public awareness of the illicit nature of music piracy at new highs -- but not without disquiet over the music industry's hardline legal pursuit of the parties allegedly involved. Here he shares with ZDNet Australia  his views about life bringing pirates to account.

Q: What are your expectations for this year in terms of MIPI's fight against music copyright infringement?
A: MIPI's focus will continue to be on the facilitators of piracy. The pirate online services and physical piracy operations. This strategy has been particularly efficient for us to date and there is no reason to think that will change. I expect that MIPI will continue to meet its obligations to the industry and public by preventing or detecting piracy and effectively prosecuting it.

Do you think Australia's copyright law is obsolete? What changes would you make, if any, especially in terms of the "fair use" right? (or the right of people to copy their music collection to another format for personal use)
I believe we have some of the best digital / copyright laws in the world. There can be no doubt that these laws do not suit online pirates, or commercial operations that would also want to adopt the "content should be free" aspect as part of their business model. Markets, even online ones, can only survive if there is a regulated marketplace. Laws to recognise and protect property are paramount if the online market is to flourish. Even the pirates recognise this in their rush to prosecute those that infringe their rights and to get licences.

The "fair use" argument has become a little dated in the current market. A consumer can now clearly decide in what form they buy their music. You can already go to a legitimate online service and buy your music in a portable format as an alternative to the compact disc if you wish. In fact buying a compact disc now and complaining about the lack of portability would be as absurd as complaining that the tarpaulin you bought was a lousy parachute.

Aside from the illegal sharing of music files through peer to peer networks, what else threatens the music industry here in Australia? (e.g. markets selling pirated CDs etc)
Australia remains an attractive market, online and physical, for both legitimate operators and pirates. Online piracy attempts will continue but little will change on their technological approach. The linchpin of the digital revolution the online pirates talk about is their exculpatory language, they don't make proceeds from their crime - they commercialise opportunities! I expect two significant Federal Court judgements this year that will go a long way to exposing the true nature of online pirates and their real motivations.

Pirate activity here is, moving forward, focused in three areas; online, cottage industry counterfeiting and commercial (and largely imported) counterfeiting. Fortunately through legislation and action we have a relatively low level of piracy and I don't see that changing!

In terms of traditional piracy (CDs as opposed to the online music kind), what statistics do you have on that in Australia?
Piracy here is at about 9 percent of the market by volume far as we can tell. Our statistics are based on identifiable activity only.

What can you say about a report stating that Australian consumers have no choice but to obtain music through P2P services because their music demands are not met by the limited resources of retail and online stores?
I am aware of the report in question and am surprised it's given any credence. You've got to remember that the P2P services don't produce music, they misappropriate the music the legitimate industry develops, produces and promotes. Not one of the P2P services has an artist repertoire function locating new artist, developing them, promoting them, in fact they just don't make the music consumers want - the legitimate industry does! The proposition is part of the sham the pirate online industry perpetrates on consumers and doesn't withstand analysis. They have been counting on no-one noticing how much money they make from someone else's property and reports such as this one can only serve these millionaires, not the consumer.

You mentioned that this year, MIPI will be intensifying their pursuit of universities that allow copyright infringing activities through their systems. Will students be part of that pursuit? Or even individual Australians infringing music copyright?
Our primary concern is the facilitators of piracy, not individuals. This strategy has been particularly successful for the industry and there is nothing to suggest we need to change this strategy. I cannot be any more direct than to say to you -- we will not be suing individuals. Our current approach has been exceedingly effective and efficient.

Should Universities and ISPs who are not directly involved in copyright-infringing music behaviour really be dragged into legal actions over the issue? Should we expect more ISPs to be in the in the line of fire this year?
I would respond by asking you, "Should an organisation or business not be prosecuted simply business it belongs to a particular set?". There is something completely unfair about a business like an ISP or University having as a defence to proceedings that it is simply an ISP or University. How do you get on a list like that? It has never been the case, despite the protestations that a University or ISP is prosecuted if it is not "directly" involved in an infringement. There can be no doubt that the ISP industry's dirty little secret is how much revenue they derive from the traffic in unauthorised sound recordings. I think it is telling that every time we've raided an ISP we've found evidence of their knowledge and participation in the industry of online infringement. You can expect more ISP prosecutions this year.

You're probably public enemy number 1 to a generation that has, for many years, grown up believing they can download music for free online. Do you have a message for those who believe you are robbing them of a right?
I think you're over-rating my relevance if you think I'm public enemy number 1. However, no-one out there genuinely believes that there is no cost in downloading free music, that it is right or fair and that this misappropriation can last forever. No-one can honestly believe they have a right to take someone else's property without their permission. I would say to them, even the pirates want you to pay for the download so get used to the idea that you will be paying. But remember you will only see the continuing development of musical product if you pay the people it belongs to.

Why are you resigning? What were the rigours of the job that forced you to do so (i.e. the working hours, pressure from P2P companies, even the death threats that you mentioned previously in your affidavit) What capabilities and personality does your replacement need to have?
I've had an usually long run in this job. The best job I've ever had I might add. The accepted wisdom is that you turn over these types of positions every five years or so, and I accept that wisdom. Having this position has been a privilege for me and I'll certainly take my experiences on to anything I do in the future.

I recently met six potential candidates for the position and I don't think I could compete with them if I were applying for the job now. I would not be so presumptuous as to think I should determine the capabilities of a person taking this job.

Some commentary has suggested you've had to take the heat while [ARIA boss] Stephen Peach hasn't put in his fair share. Does ARIA need to step up its profile in this area? What about the record company multinationals themselves? Some might say that MIPI is a unit that allows them to disperse the heat that they would otherwise get for the often unpopular issue of curbing free music downloading.
There is no point having a dog and barking yourself! MIPI is the "anti-piracy" unit and it should come as no surprise that MIPI would take the heat as you say. A great investment of resources and support is made by the record companies and ARIA in MIPI, they established the unit to provide their anti-piracy services. Stephen Peach takes an a great deal of the heat directed at MIPI and its to his great credit that he has remained professional about it.

The record companies have never resiled from their public positions and are committed to their consumers not only on the development of music but also protecting then from piracy.

What are you planning to do next?
I've got six weeks left and will be conducting at least one more raid ....I'll get back to you.

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Talkback 8 comments

    This is blatantly wrong! " ...Anonymous -- 21/02/05

    This is blatantly wrong! "Not one of the P2P services has an artist repertoire function locating new artist, developing them, promoting them, in fact they just don't make the music consumers want – the legitimate industry does!" Go see for yourself at the Bearshare (a good P2P program)Featured Artists Page at http://www.bearshare.com/home/artists1.htm where a number of up-and-coming artists are featured, and their music is downloadable for free.

    P2P tools are just that. It is the person using the tool that makes the decision to keep on which side of the legal line. Regardless of who wins, the Kazaa case is fundamentally flawed, as it is the tool maker, and not the tool user that is being persecuted here.

    The recording industry has the wrong business model. Why sue your customers, and generate bad publicity? Why rake in the millions when the customer pays for download time, and the distribution costs are relatively negligible for online distribution compared to the traditional retail channel? The artist still gets the same pittance, but the consumers know something is fishy.

    Consumers are not stupid - they are voting with their wallet. Where is the steam engine and manual typewriter now? Take a leaf out of the Kodak book - they saw the writing on the wall and moved from film based to digital technology - stay with the times, otherwise the times will p-a-s-s you by. (sorry, from experience, this talkback sofware edits all instances of the three letters a s s as asterisks, making an **** of itself)

    Mr Speck - you picked the best time to jump the sinking ship - going full steam ahead straight for the rocks.

    How can the "fair use&quo ...Anonymous -- 22/02/05

    How can the "fair use" argument be dated? While you can now purchase some music digital form (****uming that you use Windows and don't want to put it on your iPod - the most popular portable player) what about the CDs that you already own? What about the next format? The music industry would like you to simply go and purchase your music again and again every time there is a storage format change.

    It is vital that a fair use clause be added to Australian copyright law in order to protect consumers' rights to what they have purchased - a license to listen to music. If I copy a CD that I own to my iPod how am I depriving anyone of income? Am I supposed to pay twice when I have only one set of ears? The music industry seems to be of the opinion that every copy represents a lost sale, even when that copy is made by the consumer for their own use.

    I definitely have to disagree ...Anonymous -- 22/02/05

    I definitely have to disagree on the point of all (or even most) consumers having a clear choice in what digital format they buy their music. I happen to listen to music that is not considered mainstream or popular, so my only choice is to purchase CDs and to convert them to whatever portable format I see fit, for my own personal use. I think it's totally ridiculous that it is still illegal for me to do that, especially considering that I have no other option. Until there are online digital music stores that sell hard to get music from independant bands and music labels, I will continue to do the same. (Not to mention the poor artists and labels that don't fit the iTunes or Connect mold, so can't get their songs available for sale...)

    And while I'm here, what about the entire issue of music quality? Online music stores such as iTunes and Connect provide music that is compressed and still way below the quality of the original CD format. Of course that is completely acceptable to the majority of users and "mid-quality" portable use, but what about people that prefer higher quality and wish to purchase music for playback on proper hi-fi equipment? The only way to have choice in the quality of your own listening experience is (currently) to purchase the original CD (or vinyl, if you prefer) and choose your own format and compression rate.

    I rest my case, your honour. :)

    Maybe, if they have no intenti ...Anonymous -- 23/02/05

    Maybe, if they have no intention of sueing Australian individuals, I might start buying CD's again after all!

    "A consumer can now clear ...Anonymous -- 11/03/05

    "A consumer can now clearly decide in what form they buy their music. You can..go to a legitimate online service and buy your music in a portable format as an alternative to the compact disc if you wish. In fact buying a compact disc now and complaining about the lack of portability would be as absurd as complaining that the tarpaulin you bought was a lousy parachute."

    Isn't this just wonderful. The music industry tells us we can have anything we like as long as we humbly buy a separate licence for each format they choose (in their own good time) to produce. So if I want to have a song on my iPod, one in my lounge-room CD player and another in my car c****ette player, the music industry suggests it would be reasonable that I should pay three times for the same song. But after all, isn't it fairer that the consumer is ripped off rather than the poor music industry? Of course it is.

    The music industry has been ripping consumers off for years. Think about it for a minute. $30 for ten 3-minute pop songs? Given that a CD can fit over an hour of music in the antiquated file format used on commercially produced CDs, around half of most pop-genre CDs are EMPTY OF CONTENT. Perhaps we should insist on some blurb like on chip-packets "this product is sold by hype and not quantity/quality"! And don't forget the music industy's exploitation of artists, sometimes forcing them under contract to produce material even if they've run out of good ideas. Don't tell me it doesn't happen. Ever bought a band's 2nd or 3rd CD and found only a couple of tracks are worth listening to? Yup, you've just been suckered by the music industry, cashing in on a band's previously earned reputation. Well.. on reflection maybe the artist could have deliberately suckered you as well, but certainly without industry collusion, the CD would never have reached the shelves..

    And of course I could mention ever-lengthening period of copywright, which allows juicy fat profits for decades & decades to entities wholly unconnected with the artistic creation & initial marketing of the material. Go to your local department store and I'll bet you can find CD music and DVD movies recorded up to half a century ago and even more, where the artists are all dead.. and some of them can be selling at the same price as a modern work that was first released 6 months ago. Is it fair that consumers pay royalties to some person or entity that did not have anything to do with the artistic creation of the work? (a dead artist's elderly spouse or disabled child would probably be as far as I would think to be reasonable). Also, is it fair that the recording industry charges full price for years-old music or movies that are already famous and need little or no expensive marketing to make them known?

    Going back to the tarpaulin analogy, if I were able to make a perfectly safe parachute out of a tarpaulin, should it be illegal because I didn't buy one from the parachute-manufacturing industry? If you buy a CD (tarpaulin) and can make a parachute (mp3) out of it for your *OWN* use, where is the harm? You have paid for the materials, and not shortchanged the artist or the parasites riding on the back of the artist either.

    What consumers want is FAIRNESS. Unfortunately, that conflicts with what a greedy music industry wants, which is MONEY. YOURS. AND AS MUCH OF IT AS IT CAN EXTRACT FROM YOU.

    Paul Wilkinson writes... " ...Anonymous -- 11/03/05

    Paul Wilkinson writes...

    "Am I supposed to pay twice when I have only one set of ears? The music industry seems to be of the opinion that every copy represents a lost sale, even when that copy is made by the consumer for their own use."

    Guess what Paul - yes, you ARE expected to pay multiple times for the same pair of ears. Every copy you make DOES represent a lost sale.. Heck, if the music industry can get everybody to buy the same songs two, three or even more times, just think what profits could be made! It's a vast untapped market!

    Consumers should be taught how to FEAR, FEEL GUILT, and to PAY ON DEMAND. DOCILITY must be encouraged. The Industry has highly qualified and dedicated professionals working on this. FAIRNESS and LOGIC are concepts which confuse the m****es and have the undesirable potential to interfere with profit growth, and must be RIDICULED, TRIVIALISED, and HAVE ATTENTION DRAWN AWAY FROM THEM.

    CONSUME. BE SILENT.

    To Music Industry: "Do do do do, dah dah dah dah, is all I want to say to you..." (they'll probably sue me for unauthorised use of Sting's lyrics.. ironic, isn't it?)

    "The "fair use" ...Anonymous -- 17/03/05

    "The "fair use" argument has become a little dated in the current market. A consumer can now clearly decide in what form they buy their music. You can already go to a legitimate online service and buy your music in a portable format as an alternative to the compact disc if you wish. In fact buying a compact disc now and complaining about the lack of portability would be as absurd as complaining that the tarpaulin you bought was a lousy parachute."

    Thank you thank you thank you speck, I'm so glad you have said that there is a combination Cradel of Filth - novelty c****ette! I was about to risk breaking the law and mixing up a cd then recording a tape alternating tracks of my favourite black metal band and such silly tunes as "If you're happy and you know it" and "Hokey Pokey". That is just the thing I need to confuse and scare the customers (one of the few pieces of entertainment in my job)). I'm so glad you have said it is available directly on c****ette for the old tape player at the servo. But just one last question? Is it available at all music stores? Because I haven't beeen able to see it yet (tho I can be blind)? If not, to which nearby record store do I need to go to legally purchase this?

    Once again thank you for letting me know I don't have to break the law to get this!

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