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‘Best of albums’ worth $1.5M: RIAA

p2pnet news | Politics:- Music compilations are currently treated as a single work. But in the “RIAA’s perfect world, each copied track would count as a separate act of infringement, meaning that a copying a ten-song CD even one time could end up costing a defendant $1.5 million if done willfully”.

So says Ars Technica’s Nate Anderson, citing changes to statutory damages demanded in the PRO-IP Act that’s before Congress.

Google’s top copyright lawyer (and the man who wrote a seven-volume treatise on the subject of copyright law), William Patry, called the bill the most “outrageously gluttonous IP bill ever introduced in the US,” says the story.

And if Patry “wasn’t pleased with the PRO-IP Act,” neither was Public Knowledge, says Ars, going on that PK’s Gigi Sohn testified before Congress last year that statutory damages are already “disproportionate penalties for infringement,” and that it, “hardly seems fair to bill someone like Jammie Thomas more than $9,000 per song when each track costs a buck”.

Actually, they don’t even cost that.

But $1 and up is what the corporate music ’services’ charge, based on music industry wholesale rip-offs.

“Given the huge amounts already available to copyright holders (who can always collect actual damages if the statutory damages truly aren’t large enough to cover their costs), an increase in statutory damages seems only useful when pursuing true ‘pirates’ and large-scale infringers,” says Anderson.

“Unfortunately, the PRO-IP Act would would make the damages an option in small-scale file-swapping cases, the kinds of cases that the European Court of Justice doesn’t seem real worried about. When it comes to casual, non-commercial users, current awards are high enough already.”

Protecting the business interests of the biggest names in movies, music, and software

The “Prioritizing Resources and Organization for Intellectual Property (PRO IP) Act of 2007 “ratchets up the federal government’s role in dealing with intellectual property infringement,” posted the EFF’s (Electronic Frontier Association) Richard Esguerra recently, going on >>>

While portions of the bill seem legitimately targeted at combating mass, commercial counterfeiting operations, other parts are devoted to little more than protecting the entertainment industry’s obsolete business models.

Going after commercial pirates is a good idea, but copyright law often fails to distinguish between commercial counterfeiters and regular folks — like those caught up in the RIAA’s anti-downloading litigation dragnet. If the entertainment industry wants to pile on extraordinary penalties for the commercial pirates, it also seems like a good time to make adjustments that recognize that lesser penalties are appropriate for noncommercial, personal copying. People who reasonably believe that what they are doing is a fair use, for example, shouldn’t face ruinous liability if a court doesn’t agree with them.

Similarly, the thousands of music fans arbitrarily singled out for file sharing shouldn’t have to risk their homes just to have their day in court. And, of course, technology companies shouldn’t be put out of business just because their multi-purpose products are misused by their customers.

Unfortunately, the PRO IP Act is just another in a long line of “one-way ratchet” proposals that amplifies copyright without protecting innovators or technology users. One provision, entitled “Computation of Statutory Damages in Copyright Cases,” seems aimed at allowing the music industry to threaten even higher statutory damages in its campaign to sue filesharers.

Copyright law currently allows the RIAA to seek statutory damages per album, while the new law would allow them to seek damages per song. Under the new limits proposed by the PRO IP Act, someone who downloads each individual track from Guns N’ Roses’ 12-track Appetite for Destruction album could face a maximum statutory penalty of $360,000; as opposed to the current limit of $30,000 for the album.

Beyond its effects on file sharing litigation, the bill would create a new, taxpayer-funded federal bureaucracy focused on policing intellectual property domestically and overseas, including:

  • a United States Intellectual Property Enforcement Representative, appointed by the President,
  • an Intellectual Property Enforcement Division in the Department of Justice, and
  • additional intellectual property attachés to staff U.S. embassies.

These new federal bureaucrats would essentially have one responsibility – protecting the business interests of the biggest names in movies, music, and software. All of these industries are profitable, many of the corporations are foreign, and yet they want the American taxpayer to pick up the tab. Surely, Americans would rather see their tax dollars spent helping businesses and individuals who don’t have ample means to help themselves.

Stay tuned.

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Also See:

Ars Technica - Copy a CD, owe $1.5 million under “gluttonous” PRO-IP Act, January 29, 2008
EFF – “PRO IP Act” Aims to Increase Infringement Penalties and Expand Government Enforcement, December 7, 2007


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5 Responses to “‘Best of albums’ worth $1.5M: RIAA”

  1. Rekrul Says:

    Copyright infringement = 21st century version of heresy

    Welcome to the dark ages 2.0

  2. Reader's Write Says:

    I don’t understand all this IP property reform trying to make things stricter. There is no reason why copyrights should last longer than patents, especially with how easy distribution is in this day and age. 20 years to make your money and then letting it slip into the public domain is more than enough time. If you saw more stuff entering the public domain, people would have fewer issues with the industry. Also, if the copyrights went and only went to the creators (musicians) of the work (with the ability to pass the rights to immediate family in the event of death).

    Take for example Bing Crosby (I don’t listen, but my father does): Why should you be paying full price for his CDs – he’s been dead for 20+ years and recorded those songs in the 50s and 60s. Who’s making the money now? Some record company or rich guy (ie: Micheal Jackson) that bought up some old copyrights?

  3. Reader's Write Says:

    That’s an excellent point. The whole argument for copyright is that it’s necessary for incentive. We’re talking creative products being made for entertainment purposes. Meanwhile, patented methods and products can actually save lives and improve the world yet we make the duration of their protection a mere fraction of that of copyright. Insanity!

  4. Rafael Venegas Says:

    The statements that say that copyright law currently allows for statutory damages of $30,000 per album, while the new law would allow them to seek damages per song is wrong.

    Currently American law allows for maximum statutory damages of $150,000 per song. In theory actual damages (which includes the profits) may be far greater if the infringer, which must be a record company who sold millions of copies. In theory only.

    And speaking of personal experience, the record company, when sued, simply does not show up for trial and then gets a $150,000 sentence, then skips town and pays nothing and the judge, the FBI think nothing of it.

    The big stick is only for the Jammie Thomases.

  5. Rekrul Says:

    About copyrights and the incentive to create…

    Here’s the way the media corporations see things; If we create something, we want to be able to make money off that work for as long as possible (preferably indefinitely!). If we’re only going to be able to profit from such a work for the next 20 years, it’s not worth it for us to create anything. Therefore, give us a ridiculous length of time to profit from the works we hold the copyrights to and that’ll be the incentive for us to create new works.

    I fully expect that within the next decade, the media industries will mount a serious campaign to make copyrights permanent, rather than limited. They’ll probably succeed too, since the US government seems willing to bend over for whatever laws the corporations want.

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