By Jay Lyman TechNewsWorld Part of the ECT News Network
04/20/04 1:33 PM PT
Yankee Group senior analyst Mike Goodman told TechNewsWorld that the RIAA's decision to blame other factors than P2P for declining music sales may be significant. "There's some fairly high-profile stuff that is increasingly contradictory to the RIAA research," he said, referring to studies and reports that show P2P has a minimal effect on CD sales.
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The Recording Industry Association of America (RIAA) has withdrawn its offer of
amnesty to file-sharers. Previously, the group had agreed not to sue individuals
who would pledge to stop trading copyrighted music through peer-to-peer (P2P)
services and applications.
However, the RIAA also diverged from its standard message of blaming online
P2P file-sharing for its dwindling sales figures, instead calling P2P "one
factor" of several that are hurting album sales .
"The decline in young buyers, who are the most active downloaders on
peer-to-peer systems, is another confirmation that illegal downloading is
one factor, along with economic conditions and competing forms of entertainment,
that is displacing legitimate sales," RIAA chairman and CEO Mitch Bainwol said.
"That's a fairly significant change in tune," Yankee Group senior analyst
Mike Goodman told TechNewsWorld. "They're being forced into a reactionary
position, with more and more research coming out showing P2P downloading
is not quite the green-eyed monster the RIAA makes it out to be."
End of Amnesty
In a brief filed in Los Angeles County Superior Court -- where the RIAA is
being sued over its Clean Slate amnesty program -- RIAA attorneys wrote that
the amnesty deal is no longer necessary, has been stopped and should not be
the basis of litigation.
"As public awareness about the illegality of unauthorized copying and
distribution of music files over peer-to-peer computing has dramatically
increased since the inception of the program, the RIAA has concluded that
the program is no longer necessary or appropriate," the brief said.
For her part, however, Electronic Frontier Foundation staff attorney Wendy
Seltzer said the program likely ended because the RIAA's promise of immunity
was hollow.
"The problem that the RIAA was forced to recognize was that they couldn't
guarantee they were not creating more liability for the people they were
signing up," Seltzer told TechNewsWorld, referring to admissions of
copyright infringement and violations of law by those who signed
up for Clean Slate.
Last November, the RIAA reported 156 settlements and 1,000 participants in
the Clean Slate program. In its latest court filing, the group indicated
a total of 1,108 individuals had taken the amnesty offer.
Real Amnesty Possible
The EFF's Seltzer, who referred to the quiet end of the amnesty program as "a
slimy way to do it specific to the lawsuit," said record labels could offer real
amnesty through the EFF's proposed alternative to the RIAA's legal campaign: a
voluntary collective licensing program that would legitimize file-sharing
and help pay artists.
Meanwhile, Goodman, who indicated the RIAA probably did not expect to be sued over
the amnesty program, said the vast majority of file-traders likely ignored the offer
because the odds of being sued were extremely slim.
P2P Impact Debated
Goodman added that although the amnesty program's cessation was
expected, the RIAA's decision to blame other factors for declining
music sales may be more significant.
"There's some fairly high-profile stuff that is increasingly contradictory
to the RIAA research and less biased than the RIAA research," he said, referring
to studies and reports that show P2P has a minimal effect on CD sales.
For every report that indicates other forces are at work, corresponding
research from the RIAA highlights P2P's impact. However, RIAA spokesperson
Jonathan Lamy told TechNewsWorld that although the group has always said
online file-sharing is the main culprit, it also has included other
factors.
"We have consistently said we think piracy is the primary, not exclusive,
reason for the decline in sales," Lamy said. "We've never said it's the sole
point; we think piracy is primary, but there are always other factors that
are at play here."
Music Sales Strong Despite Digital Piracy April 12, 2004
"While legitimate online services continue to proliferate and evolve to meet consumer demands, this is truly a marketplace in its infancy," said Mitch Bainwol, chairman and CEO of the Recording Industry Association of America (RIAA). "Continued enforcement efforts are needed in order to create a level playing field on which legitimate online music services can compete and thrive."
Canadian Ruling on Song Swapping Sends Aftershocks April 02, 2004
"Courts are beginning to recognize that the record companies' crusade against file sharers is stepping on the privacy and due-process rights of those accused," said Cindy Cohn, legal director for the Electronic Frontier Foundation, in a statement.
P2P No Showstopper for Music Sales March 30, 2004
Yankee Group senior analyst Mike Goodman told TechNewsWorld that the Harvard/UNC findings "match right along with what we say: The bulk of revenue declines by the recording industry have been self-induced." He said the main reason for the record industry's recent revenue decline is that fewer albums are being produced and sold.
Proposed Bill Would Criminalize File-Sharing March 30, 2004
The House bill, whose sponsors remain uncertain, appeared after Sens. Orrin G. Hatch (R-Utah) and Patrick Leahy (D-Vermont) filed different legislation in the Senate. That legislation would extend the DOJ's powers to file lawsuits in civil, rather than criminal, copyright-infringement cases.
RIAA Sues Another Set of Alleged File-Traders March 24, 2004
While the RIAA continues to claim its effort to educate the public and scare illegal file-traders is working, Yankee Group senior analyst Mike Goodman reported the number of free P2P users actually has been creeping up again since the beginning of this year. "Internet users want to download music from peer-to-peer networks," Goodman told TechNewsWorld.
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