NEW YORK--While the music industry was busy touting its newMusicNet digital download initiative, critics were calling into question theteaming of three-fifths of the music business into a single entity that mayone day encompass nearly every sound recording ever made. Their fear is thatthis monstrous entity may shut out other Web initiatives and artists, whileat the same time dramatically limiting consumers' choices as a greatershare of the profits from their CD purchases goes into the labels pockets.
Streaming media developer RealNetworks is teaming with WarnerMusic Group (WMG BMG Entertainment, and the EMI Group create the onlinesubscription music service which is set to bow this fall. Under theagreement, RealNetworks will own a 40% stake while EMI, EMG parentBertelsmann, and WMG parent AOL Time Warner will each own a 20% stake inMusicNet. which will operate as a stand-alone independent company and willlicense its "private-label" platform to companies seeking to sellmusic-subscript on services under their own brands. MusicNet will also aim tolicense music from other record companies. Pricing and packagingconfigurations will be up to those third-party distribution partners, as willbe the decision of whether to offer downloads or streamed content.
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"It's toe early to predict any kind of congressionalresponse, says Boucher, who is planning to introduce E-commerce legislationthat would modify the U.S copyright laws to allow temporary MP3.com. typedownloads to become legal (Billboard. March 10).
Yet Samit says that the possibility that the Web may cut into anartist's real cash source, the CD--if MusicNet and Duet prove successfuland fewer physical units are sold--is a real one. "When you talk aboutabout being able to provide a download to people live, in their home, car, ormobile [applications], that flexibility may make it a primary way to enjoymusic."
The software allows Copyright.net to search Napster users'hard drives to see which files are stored on their computers. If it findsmaterial that is not authorized to be swapped, it alerts users and offersthem a chance to remove the file or lose access to Napster. Copyright.net isalso attempting to get Internet service providers to block violators'Internet access. Yet Smith feels Copyright.net is not in the law-enforcementbusiness. "We believe many people who download music or movies or othercopyrighted works want to do the right thing and find a way to license thework they so clearly value."
From a copyright law perspective, however, Rosenthal says thatbased on Napster's entire file-sharing model, its users could be guiltyof willful infringement because Napster users largely know they'rebreaking the law and they are downloading anyway.
Meanwhile, some artists are backing Copyright.net. The estate ofRoy Orbison is among its most vocal supporters. Since enlisting the softwareto find illegal copies of Orbison's music, CopyrightAgent has sent morethan 1 million E-mails to fans who have stored an illegal copy of an Orbisontrack on their hard drives. To date, only Orbison's "Only theLonely" has been authorized for download. 2ff7e9595c
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