<![CDATA[Gawker: valleywag, riaa]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: valleywag, riaa]]> http://gawker.com/tag/valleywag/riaa http://gawker.com/tag/valleywag/riaa <![CDATA[Muxtape creator explains how to be an overnight failure]]> Justin Ouellette's music trading site Muxtape, shut down after failed talks with the RIAA, the music labels' copyright cops, may not have earned him a fortune. But it has secured him a modicum of infamy. He got invited to speak earlier this week at the WebbyConnect Summit in Laguna Niguel, explaining to others on how to replicate his overnight success with making a website deeply popular with Brooklyn's most outspoken Internet users. As Ouellette elaborates in this interview, the key is to just make up something that people want. Guess what? Just because people want free music doesn't mean you can give it to them. Ouellette never figured that part out.

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<![CDATA[Judge orders music downloader to pay RIAA $40,500]]> Arizona's Jeffrey Howell did several dumb things on his way to being ordered to pay the RIAA a $40,500 fine for downloading songs such as "Waiting For A Girl Like You," "Money For Nothing," and "Sweet Child O' Mine" using peer-to-peer file-sharing service Kazaa. The first was downloading Guns N' Roses' "Sweet Child O' Mine" when he could have turned on a classic rock station and waited 15 minutes to hear the overplayed song twice. An even bigger mistake was wiping his hard drive after a Judge ordered him not to. But Howell's worst mistake?

According to the Electronic Frontier Foundation's attorney, Fred von Lohmann, it was his refusal to hire a lawyer who could represent him in court. "I think if Howell had an expert and lawyer to speak for him, he would have told a different story," von Lohmann told Ars Technica. Now Howell owes $40,500 in damages, plus 2.12 percent interest until he pays it off. On top of that, he has to pay the court $350 in costs. That's a lot of used Guns N' Roses CDs.

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<![CDATA[Is Opentape a jab at the RIAA?]]> Following the shutdown of Muxtape, a site for posting online mixtapes, in a dispute with the music industry, someone has launched Opentape.fm, where you can download code to easily create your own Muxtape-like online mixtapes of MP3 files. And if the creators of Muxtape aren't directly responsible, they probably fed Opentape's developers everything they would need. The first clue is that the site is powered by the favored online publishing platform of millennial hipsters, Tumblr. Another clue is that the domain registration information points to 152 W. 57th Street in Manhattan, which just happens to be IAC CEO Barry Diller's address (Justin Ouellette, Muxtape's founder, worked at IAC site Vimeo). Then there are two small hints in the code:

The site uses a package of Javascript, Mootools, which was also used by Muxtape. And in the source code, an HTML comment reading "Liberating taste" appears where an ASCII graphic appears in the Muxtape source code. The launch of Opentape is likely a tactic in Muxtape's fight against the RIAA. It puts the record industry trade organization in the position of having to play whack-a-mole as mixes pop up on numerous clone sites using the open-source software. It also means that Muxtape's backers no longer have to shoulder the site's soaring bandwidth costs.

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<![CDATA[Biden wants to spend $1 billion spying on file sharers]]> The best way to judge a society is to judge how well it takes care of those unable to take care of themselves — like music and film executives, for example. Motivated by profit and self-interest, they have been helpless to stop digital piracy from eroding their relevance and profit margins at home or abroad. Democratic vice presidential candidate Joe Biden to the rescue! Reports PaidContent:

  • Biden this year "proposed a $1 billion program to monitor P2P networks for “illegal activity” and a version made it through Judiciary."
  • Last year, Biden sponsored an RIAA bill designed to limit the recording and playback of individual songs from Satellite and Internet radio stations.
  • Biden "urged the Justice Department to prosecute individuals who allowed mass-copying intentionally through P2P."
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<![CDATA[Donk In A Box]]> What can you do when your expensive iPhone with the expensive monthly plan just doesn't work? Class action lawsuit! Class action lawsuit! And that's exactly what one Alabama woman did. Donk In A Box, today's featured commenter, calls the case as he sees it:

I was born and raised in Alabama. Went to school there. I know these people, I have lived among them, I am one of them, and let me tell you something...they're assholes.

However, Alabama is notorious for having the kind of civil litigation environment that makes tort reform advocates scream about "jackpot justice." So she probably thinks she can make this thing pay out like a Biloxi slot machine, and given the right sort of jurors, she probably can. Until the massive award gets knocked down to nubbins on appeal.

Please, somebody from Mississippi - do something stupid in public, quick!

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<![CDATA[pepelicious]]> Hipsters must be quite sad that Muxtape is down but we have RIAA to blame. Today's featured commenter, pepelicious knows the other problem with Muxtape though:

They're clearly not spending enough money on ??? to achieve profit.

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<![CDATA[Muxtape's spending real cause of music site's shutdown]]> Muxtape founder Justin Ouellette says he's shut down the mixtape-hosting website because of a problem with the Recording Industry Association of America. A statement from the RIAA itself seems to confirm the story. Bu we hear another reason Muxtape is shutting down is that it got too expensive for Ouellette to keep up.

A tipster tells us Muxtape investor Jakob Lodwick has been heard to complain that the site's hosting bill alone amounts to $30,000 per day. That figure seems absurdly high — but could our tipster have misheard Lodwick saying the bill is $30,000 a month? After Muxtape's first day, Ouellette posted the site's stats, reporting 8,685 users uploading and playing 19,731 songs over 35,000 visits cost Muxtape $118.17 with Amazon's S3 online-storage service. Extrapolate that first day over a month, at Amazon's standard rates, and you've got a $3,545 hosting bill. Compete.com confirms that Muxtape's user base has grown at least tenfold since then, making a $30,000/mo. hosting bill not just plausible, but likely.

The bill is also far more than Lodwick or Ouellette seem to have expected. In an accidentally published investment term sheet, Ouellette estimated three months of hosting would cost $18,000. That's about $72,000 off the mark, enough to eat through Lodwick's $95,000 investment and shut down the site, angry letters from the RIAA or no.

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<![CDATA[Pandora throws temper tantrum over music rates]]> The days of marveling over online music service Pandora's ability to know that you hella heart Oakland's own Digital Underground may soon be over. A court decision adored by the recording industry doubled the royalties Web broadcasters have to pay. Radio stations pay nothing to for rebroadcast rights to recordings, but do pay publishers a royalty. Satellite broadcasters pay nearly half what online music providers are charged. Pandora reports that the charges, payable to royalty collector SoundExchange, will amount to $17.5 million of their $25 million in annual revenue. Which would permanently mangle the company's business model, according to CEO Tim Westergren. The flip, convenient thing to do here is to blog about the evils of the rapacious music industry. Sure, SoundExchange is notorious for its long list of artists it can't find in order to pay, while it naturally collects royalties regardless. But after Muxtape's run in with the RIAA today, one has to think there's blame to spread around. What did these music entrepreneurs expect?

Let's not forget: Apple pays a similar percentage to music labels for sales through iTunes, and yet it manages to stay in business. For that matter, Google pays publishers the bulk of advertising revenues it collects on ads it places on their websites. Oh, and how much of Wal-Mart's revenues get shipped straight to its suppliers in China? It's not like it's impossible to make a living in a business where most of your revenues go to the people who make the business possible. Perhaps this is Pandora's problem, not the music industry's.

One way Pandora could boost revenue and curry favor with the RIAA is through good old-fashioned payola. Why not strike a deal to waive royalties on tracks the industry would like to see promoted and mixed into playlists just a little more heavily than usual? Users would still have a "commercial-free" listening experience, and Pandora could provide the thumbs-up, thumbs-down data back to promotions and marketing departments with contextual data like related songs as chosen by listeners to boot.

Or Pandora could cater to the hipster avant-garde. Why not broaden affiliate sales to vinyl? LP sales jumped over 33 percent from 2006 to 2007. Let me program "only if available for online purchase on vinyl" into my Pandora listening schedule. If I could click-to-buy a 12" of Pushin' On by the Quantic Soul Orchestra, I'm sold on the record and even $10 a year for the filter feature and a few others besides.

(Photo by Steven Toomey)

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<![CDATA[RIAA "problem" shutters online-music startup Muxtape]]> Muxtape, a New York-based online-music startup much favored by the Tumblr set, has shut down its website, citing a "problem" with the RIAA, a music-industry organization which polices copyright. Could it have anything to do with the ease with which users can download music files from the site, despite founder Justin Ouellette's efforts to block them? The company blog elaborates, barely: "No artists or labels have complained. The site is not closed indefinitely. Stay tuned."

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<![CDATA[Muxtape creator battles Firefox script kiddies while waiting for the RIAA]]> Justin Ouellette's Muxtape, a site which hosts online mixtapes, is on shaky legal ground — and not just over the way Ouellette left his former employer, IAC-owned video site Vimeo. Making a mixtape for personal use is clearly accepted; but posting it online, for everyone on the Internet to listen to? Unclear at best. Ouellette himself has hinted that he's worried about being sued. On Userscripts.org, a site where people post and discuss add-ons to the Firefox Web browser, Ouellette has been scolding programmers for creating tools that let Muxtape users download MP3 files directly from the site — even as he was claiming that he wasn't worried about copyright issues.

"Please remove this script, it can only contribute to getting the site shut down," Ouellette wrote in April on Userscripts.org. "As long as you can hear the music you can copy it, but that doesn't mean I'm not going to do the diligence of trying to stop casual downloading (one of the things that would hurt its long-term viability)," he wrote on another occasion. "I was naïve enough to think assholes like you wouldn't want to wreak a good thing, but I guess I was wrong," he concluded.

He's been quieter since then, aside from suggesting the site would drop the popular MP3 format in an effort to stop downloaders. The scripters have kept up their efforts.

Not that this cat-and-mouse game matters. The RIAA has wisely left Muxtape alone, avoiding an ugly publicity squabble over a site that has yet to show any commercial potential. If it does begin to show some financial success, then the music-industry lawyers will swoop in demanding money.

People are swift to criticize the RIAA, which has made a number of boneheadedly unpopular moves. But what should we say about the naivete of entrepreneurs like Ouellette, who are hoping that battling Firefox script kiddies will somehow count in their favor when the record labels come knocking? Muxtape's lawyers might make a "safe harbor" argument under the Digital Millennium Copyright Act — but that requires showing that Ouellette was unaware of copyright violations on the site. Hard to argue that, when he uses it himself.

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<![CDATA[Revision3 CEO: Antipiracy group attacked our network]]> Jim Louderback, the CEO of Revision3, is jumpin' mad. A denial-of-service attack brought down the online-video network over the weekend, and it wasn't the work of a freelance hacker with a distributed network of compromised machines, he writes in the company blog. It was, he says, the deliberate act of MediaDefender, an antipiracy consulting group which works to shut down file-sharing networks. Revision3 uses BitTorrent, a file-sharing protocol, to distribute its own content, and runs a "tracker" server to coordinate those downloads. All of this is quite legal. MediaDefender, it turns out, found a security hole in Revision3's server, and planted unknown files, possibly illegal copies on Revision3's servers, for their own purposes. It's not clear why, but whatever the motive, MediaDefender may have broken several laws in doing so.

What brought down Revision3's network wasn't the security hole, however. It was MediaDefender's response after Revision3 technicians noticed the breach and shut it down. MediaDefender's servers, in what that company told Louderback was an automated response, started trying to contact Revision3's servers through the now-closed hole. That turned into a flood of traffic that overwhelmed Revision3's network.

MediaDefender has worked for Sony Music, the Recording Industry Association of America, and the Motion Picture Association of America to shut down illegal file-sharing networks. But Revision3's use of file sharing for its own content was entirely legal; to the extent its servers pointed to any illegal files, it was only because of MediaDefender's hacking, Louderback tells me.

Revision3 has asked the FBI to investigate MediaDefender's alleged abuses. For years, the music and movie industries have been telling us that sharing files is criminal, and that blocking file-sharing networks is proper. For millions of file-sharing users, it would be quite satisfying to see the opposite proved in court.

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<![CDATA[Ripping CDs still illegal, says the record industry — but not in so many words]]> Can you legally create MP3s from your CD collection, or not? That's all we want to know. News has circulated since early December that the recording industry believes it is illegal to rip your music library . The genesis of this waas an RIAA lawsuit against a chap for tossing ripped files into his Kazaa sharing folder — not, mind you, for actually ripping the files off a CD. We ridiculed the Washington Post for making this mistake, and were prepared to laugh derisively when it ran a correction. But a Wired blogger argues, at length — 745 agonizing words — that the RIAA still thinks CD ripping is illegal. Here are the 100 most essential words.

The RIAA does not recognize that you have a legal right to rip your CDs into MP3s. The RIAA will not say that ripping MP3s for personal use is legal. That's why the Sony executive said ripping a song was the same as stealing one. To sum up, the RIAA does believe a majority of American music buyers are thieving criminals, but it's not going to sue anyone over ripping MP3s because a) it's not really a big deal b) there's no way to find out and/or c) it would be terrible publicity to sue someone for using an iPod.
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<![CDATA[Will the RIAA sue you for ripping CDs?]]> CDRThe Washington Post has reported that the RIAA views the ripping of CDs to MP3s as illegal. Not quite so. The RIAA isn't thrilled with the practice, but that's not why they're suing Jeffrey Howell. His offense against the recording industry was "putting those ripped files into a shared Kazaa folder," notes Techdirt. You know, the sort of thing one would do if he would want to participate in file sharing.

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<![CDATA[Does EMI no longer believe in suing its customers?]]> EMIReuters is reporting that EMI, one of the world's four big music-label groups, wants to cut its funding to industry lobby groups, including the RIAA and the International Federation of the Phonographic Industry. EMI's "looking at ways to 'substantially' reduce the amount it pays trade groups," as a source puts it to the wire service. This is exactly the kick in the seat of its pants that the music industry needs.

The recording industry is suffering from a bit of an image problem lately. Beyond digital ineptitude, as illustrated by Universal CEO Doug Morris and Warner CEO Edgar Bronfman, the RIAA is wasting money on lawsuits while attempting to hack publicly funded universities. Bad press isn't the best way to win consumer goodwill, and by cutting ties with the rest of the industry, EMI could send the message that it cares more about selling music than suing its customers.

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<![CDATA[How record labels can cash in on digital sales]]> Colombian rock star Juanes sold more than 6 million songs during his new album's digital prerelease. The sales set a record, according to Universal Music, which distributed the songs via legitimate Internet and mobile vendors. People actually paid for music. Good for Juanes; better, hopefully, for the digital consumer. It's not that music execs are wholly clueless. For a hits-driven industry, sales speak much louder than anticopyright zealots' rhetoric. it's that they haven't had enough success stories like this one to persuade them to buy into the digital marketplace.

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<![CDATA[College campuses protest RIAA, not war]]> Who says todays kids aren't politically motivated? Demonstrations and protests are growing across American campuses. Today's youth feel a need to do something. And that something, of course is ... protest our involvement in Iraq? Peace for Myanmar? The environment? Don't be silly — today's college students are up in arms over their "right" to free music.

As Zachary McCune, a sophomore at Brown University, once a hotbed for student anti-war protests in the Vietnam era, puts it:

People wonder why college students aren't rallying more around the Iraq war," Mr. McCune said. "If there were a draft, we probably would be. Students are so quick to fight for this cause because we're the ones bearing the burden.
Bearing the burden? Today's kids need to experience some real burdens.

Ah, that's an idea for NBC Universal chief Jeff Zucker, the industry's most notable anti-piracy whiner! Rather than enlist the entire government to fight copyright, use a government draft to enlist college students to fight the war in Iraq! I suspect file sharing would no longer be today's college kids' most pressing political issue. And then, better yet, Zucker could make a reality show out of it. (Photo by Thomas Good)

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<![CDATA[Why did the jury in the RIAA file-sharing...]]> Why did the jury in the RIAA file-sharing case return a $222,000 judgment against Jammie Thomas? "We wanted to send a message that you don't do this, that you have been warned," said one juror. Mmm, yes. That'll stop the pirates. The more likely lesson they'll draw? Don't get caught. [Threat Level]

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<![CDATA[The RIAA's $220,000 Playlist: Just As Crappy As You Might Expect]]> One of our commenters asked about the songs that the major labels focused on in their successful lawsuit against Jammie Thomas; we found it (courtesy of Threat Level) and it's reprinted after the jump. Behold, the songs that you may want to take out of your shared-music folder pronto:



• Guns N' Roses: "Welcome to the Jungle"; "November Rain"
• Vanessa Williams: "Save the Best for Last"
• Janet Jackson: "Let's Wait Awhile"
• Gloria Estefan: "Here We Are"; "Coming Out of the Dark"; "Rhythm is Gonna Get You"
• Goo Goo Dolls: "Iris"
• Journey: "Faithfully"; "Don't Stop Believin'"
• Sarah McLachlan: "Possession"; "Building a Mystery"
• Aerosmith: "Cryin'"
• Linkin Park: "One Step Closer"
• Def Leppard: "Pour Some Sugar on Me"
• Reba McEntire: "One Honest Heart"
• Bryan Adams: "Somebody"
• No Doubt: "Bathwater"; "Hella Good"; "Different People"
• Sheryl Crow: "Run Baby Run"
• Richard Marx: "Now and Forever"
• Destiny's Child: "Bills, Bills, Bills"
• Green Day: "Basket Case"

Note the inclusion of "Bills, Bills, Bills" on that list. Someone on the majors' legal team has quite the sense of humor!

RIAA Trial Produces Playlist of the Century [Threat Level]

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<![CDATA[The RIAA wins a round]]> RecordJammie Thomas, the woman who file-sharers and legitimate music purchasers alike hoped would end the tirades of the Recording Industry Association of America was found guilty of copyright infringement and slapped with a $222,000 fine. Capitol Records v. Jammie Thomas, the first file-sharing case to actually go to trial, was a rallying point for anyone wishing to listen to music without automatically being deemed a criminal. The case revealed that the industry's lawsuits were, for the most part, a big, costly, unsubstantiated waste of time. But, alas for Thomas, not in this case. The victory will no doubt help the RIAA scare more people it accuses of file sharing into settling out of court. (Photo by Martin Belam)

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<![CDATA[Butt pirates battle Internet pirates]]> All-male porn peddler Titan Media has sued to shut down an "online gay porn piracy ring." Titan is suing 22 defendants working on a half-dozen blogs. In this arena, for a change, the porn world is behind the curve, not on the cutting edge of tech. While the RIAA and MPAA have huge budgets and companies like MediaDefender and BayTSP to do their antipiracy dirty work, those companies don't "want to be known in the porn space," according to the CEO of BayTSP. As a result, sex sites must do their own dirty work.

We can't wait to see save-the-children-type public service announcements before our porn starts, begging watchers not to pirate the videos like the ridiculous ones we see now before movies showcasing all the people "behind-the-scenes" like gaffers and script editors and the like.

Dear readers, remember: don't pirate pornography. Please, think of the fluffers.

(Photo by Boss Tweed)

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