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Internet file sharing myths
Myth - Downloading music for free
doesn't give rise to any problems
It is a common misconception that accessing so-called 'free
music' - by downloading or burning music from the internet without the creator's
permission and without paying for it - doesn't really hurt anyone.
Nothing could be further from the truth. Unauthorised uploading
or copying is not free at all - it is the musicians and the people who invest in
the music who are paying the price. The artists, first and foremost, the labels
that have invested in them, the publishers who manage the copyright of their
songs and the thousands of people involved in the many different areas of the
music industry are all affected. Downloading and burning without permission
doesn't fairly reward the efforts of those who create, develop and record music,
and who depend on it for their livelihood.
More illegal copying and internet distribution means less
sales, and that means less money for companies to invest in artists and music.
This affects a whole community of people: the employee at the retail store that
faces closure; the aspiring artist who won't get a deal because record companies
have less money to invest in new talent; and the artist whose first album just
failed to sell enough to turn a profit. On top of that, there are the thousands
of other people who depend upon music for their income: from the sound engineers
and CD factory workers to the band managers and graphic artists. There are also
countless music magazines, entrepreneurs trying to set up legitimate online
sites, designers, specialist PR people the list goes on.
Furthermore - copying music without permission is illegal. And
just because it doesn't involve organised crime or knock-offs sold on street
corners doesn't mean that it isn't taken very seriously.
Myth - Most recording artists are doing
very well, so downloading a few tracks for free is not going to hurt them.
The overwhelming majority of artists are NOT rich. And it's not
just a few tracks that are being downloaded illegally from the internet - it's
millions of tracks. The biggest losers from internet file sharing are the
upcoming artists because not paying for music means much less money to invest in
them. Fewer artists get the chance to make their mark, and the labels are less
likely to take a risk with more experimental music or niche genres. This means
it's the music lover who gets short-changed. Consumers of 'free music' may get a
short-term benefit, but at the long-term cost of hurting the artists they most
admire, and new talent.
People who accuse the music industry of not producing anything
new should give some thought to how internet file sharing impacts new artists.
Think of the bands - and there are many, including Cold Chisel, INXS, Midnight
Oil, Split Enz and Powderfinger - who didn't make it big with their first or
second album. Bands need time to flourish, and if their early sales are
cannibalised on the internet, they may never get the chance to become the next
INXS or Powderfinger.
Myth - Unauthorised copying doesn't
have any measurable effect on the music industry.
There is consistent evidence throughout the world that
unauthorised copying and distribution means less music is sold. The Australian
industry has yet to experience these impacts to the same degree as other
territories. This has been due, in part, to the delayed take up of broadband
internet access in Australia. However, if steps are not taken now, the
international experience could well be replicated in Australia.
Perhaps the most worrying development is that the majority of
people downloading music from the internet are young music fans, who are also
the biggest consumers of music. In a survey commissioned by ARIA in 2003, those
who engaged in internet file sharing reported a net 12% decline in their CD
purchasing behaviour as a direct result of that activity. There are similar
findings all around the world.
Myth - Downloading for free benefits artists as
it gets them heard which promotes their music and boosts sales.
The Australian recording industry support the use of
promotional material made available for free download - but only where the
artists and copyright owners have authorised it for this purpose. This must be a
choice that they make, not one forced upon them by others. Making music
available on the internet is a really exciting development for artists. The
internet can be a great tool for new acts who wish to drum up interest in their
work.
However, it isn't true that making music 'free' will always
promote the sales of that track or album. In fact, research all around the world
shows that downloading and burning is substituting sales significantly more than
they are promoting them. Research in Australia commissioned by ARIA in 2003
shows that many active file-sharers spend less on music since they started
getting it for free and that they reported an overall 12% decline in purchasing
behaviour as a direct consequence of file sharing.
It is those members of the general public who think that they
have the right to 'share' music with millions of individuals without having paid
for it (and contrary to the wishes of the copyright owner, recording artist and
songwriters) that are damaging the music industry. As a consequence they are
threatening the careers of budding artists before they even begin.
Myth - The music industry wants to stop the
advance of technology.
Technology is not the enemy of music - quite the reverse. There
has always been a healthy relationship between advances in technology and the
music business: from the Edison cylinder, through vinyl, tape and the CD. The
impact of digital technology has opened doors for artists and many others
involved in music; allowing more experimentation and sophisticated home
recording, online real time musical collaborations, webcasts, enhanced sound -
and the ability to share all that with a wider global audience.
The music industry will always make use of new technology - for
example Super Audio CDs and DVD Audio, as well as the opportunities that new 3G
phones bring. Technology is also helping the industry to transfer thousands of
tracks in artists' back catalogues into digital format. And, of course, the
industry both here and internationally is enthusiastically supporting the
development of legitimate online retailers.
But while the methods of recording or distribution might
change, what doesn't change is the fact that artists and those who work with
them depend upon copyright and getting paid for their livelihood.
Myth - There are no legitimate services
currently available in Australia.
There are already legitimate online retailers offering hundreds
of thousands of tracks from all the major record companies and many independent
labels. No doubt, others will also commence operations in the near future.
These sites offer better quality of product and service than
illegal alternatives. Many are now offering transfer to portable devices. They
are not, however, progressing as quickly as hoped because of stiff competition
from free music infringers who have sidestepped all the complex licensing and
consent processes needed to offer the recordings legitimately.
Myth - Nothing can be done to stop illegal
downloading.
Illegal downloading is a huge problem, but MIPI and the
Australian recording industry is committed to successfully addressing it. As
most people know, the record industry has been involved in internet based
litigation, and continues to be involved in litigation, both here and elsewhere
around the world. While much of that litigation has been against file sharing
networks and their operators, in some territories the industry has also taken
legal action against individuals who upload substantial quantities of infringing
music. But that's not the industry's only initiative to address the problem.
The music industry has launched many initiatives to educate
consumers and businesses around the world about the consequences of illegal
online activity. Many people who enjoy music are simply unaware of the effect
their actions have on bands and artists.
Everyone knows that one of the best ways to stop people from
using the illegal sites is to provide them with good alternatives. Many
companies are investing substantial sums in developing legal alternatives.
However, all this takes time - it's hard to compete with something that's
offered for free, but it is happening.
We're also seeing the start of new systems used for better
electronic delivery of music. Digital rights management tools are being used to
help track music online, so that everyone who is entitled to be paid for their
efforts, is actually paid. New technology is also being used in ever more
sophisticated copy control devices for music, similar to those already used on
DVDs and computer software.
But there's more to stopping mass copyright theft than by just
investing in new legitimate services. Indeed, those new services are not going
to flourish if there isn't a fair space for them to develop without being
stifled by online piracy.
Ultimately, none of this legitimate activity can take place
without a strong legal framework to support it. Copyright laws exist to protect
the rights of artists and those who invest in their careers, allowing them to
determine whether and how copying, distributing, broadcasting and other uses of
their works take place, and giving them the tools they need to take action
against people who infringe their rights. Those who ignore copyright laws should
not expect an easy ride.
Myth - Downloading is just like home
taping.
File sharing via the internet cannot be likened to copying
tapes deck to deck at home. That's like comparing someone physically copying a
book to a printing house churning out hundreds of copies a minute of the same
book - and then making it available to absolutely everyone around the world for
free.
The damage this sort of copying causes to music is enormous.
But it also presents other dangers to the unwitting consumer. If you use a
peer-to-peer service, you open your computer and all the information you've
stored in it up to hundreds of strangers - simply at the touch of a button. When
you use a file-sharing service you may unwittingly be acting as a 'mass
distributor'; as whenever you're online every other user around the world has
the ability to access your hard drive. And this could lead to problems with your
personal computer, including the transmission of viruses.
Myth - The record companies only
have themselves to blame for not getting their artists' tracks online quickly
enough.
While it is very easy for anyone to upload an MP3 music file
onto the net and give it away for nothing, it takes time to do so in such a way
that the online product is tracked through the process, with the artists,
publishers, record companies, and retailers all being paid their share of the
price. The systems for doing this have had to be created from scratch and there
have been complex negotiations between all the relevant parties (including
obtaining consents from artists) in order to get the music licensed for digital
sale.
Second, it is not true to say that record companies have not
got their music online quickly enough. The music industry is far more advanced
than any other in terms of producing its product for digital sale. What is true
is that the appearance of the MP3 file format has meant that the music industry
has been forced to grapple with issues of theft of intellectual property on the
internet far sooner than other industries. Unlike most products where the
internet is simply used to help sell the physical product, with music the
virtual online copy is practically the same as the physical product.
The speed with which the MP3 music files spread over the
internet meant that as the music companies started to digitise their product,
set up payment systems and invest in companies (some of which went bust in the
early dotcom 'bubble') they were already in a situation where they were
competing with freely available product. And trying to compete against an over
99% pirate market on the internet is very difficult. It is ridiculous to expect
a record company who has to invest a huge amount in its artists to compete with
a distributor who is giving music away for free.
Reproduced with the permission of ARIA and IFPI.
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