History -- 1998 to Present -- Music's Grand Spiral O' Death -- 2002

Please note that most dates on this page link to articles in the Boycott-RIAA news archives or other publications.
The date shown is when the article was posted and not necessarily the day the events described took place.

General Notes

2002 was the year everyone in the music business stopped talking about music and started talking about DRM. The artists start talking about the many ways in which the music business systematically rips off the artists. Congress got involved and started introducing bills that were well-intentioned (or at least well-paid) but they never actually did anything.

Webcasting was emerging and the RIAA pulled an end run around the entire royalty negotiation process.

Napster has been shut down for six months but the court case continues, and the judge is asking a lot of questions that the labels really don't want to answer. Meanwhile, Kazaa appears. Unlike Napster, it is truly decentralized and does not host any music files.

Already three years into trying to destroy the entire music industry, the RIAA begins to destroy its own credibility. Universal Music begins to destroy mp3.com.

The Topics

DRM
Congress
Napster
Webcasting

Quoteable Quotes
Kazaa
mp3.com


December 29, 2002
US Market Share
(From Soundscan)

Universal -- 28.9%
Warner -- 17%
Sony -- 16.5%
BMG -- 14.8%
Independent -- 13.2%
EMI -- 9.3%

 

ACRONYMS

RIAA -- Recording Industry Association of America

MPAA -- Motion Picture Association of America

EFF -- Electronic Frontier Foundation

CARP -- Copyright Arbitration Royalty Panel

DMCA -- Digital Millenium Copyright Act

DRM -- Digital Rights Management

Kazaa

May 14 -- USA Today reports on an alliance between Kazaa and Verizon. The two companies are floating a proposal to ISPs and the computer and manufacturing industries to lobby to force the music industry to license their music. Royalties would be paid to artists directly, thus circumventing the stranglehold the RIAA has on the music industry.

General Notes -- Quotes -- Artist Activity -- Other 2002 Stories

Other 2002 Stories -- Chronological

January 11 -- Copy protection mechanisms on current audio CD's have no chance of success, in the opinion of Royal Philips Electronics. Philips spokesperson Klaus Petri says the company counts on the fact that the refusal of consumers will convince the music industry to step back from copy-protected CDs. Then he pointed out that Philips could sue the manufacturers of CDs with copy protection (as managers of the world-wide CD patents), because they would not correspond to the standards. "those are silver disks with music on them, but which do not resemble CDs".

February 3 -- Dave Marsh writes...

Judge Marilyn Hall Patel questioned whether the record companies have copyrights that apply to digital distribution of music, and said she'd permit Napster to fish for evidence that the companies collude.

The cartel cannot afford scrutiny of its rights claims. Some of them rely upon highly selective interpretations of contracts. Even where it has clear contractual language, it has often obtained the master recordings without a clear title. Most important, many of those contracts have been breached in so many different ways that there is no way they would hold up under judicial, let alone public, scrutiny. (To strip it down: If you don't pay the music-maker you made the contract with, you don't own the rights the contract gives you.) Legal research might point the way for clever lawyers to do to the RIAA what the RIAA did to Napster. It might even open the door for artists to reclaim the material purloined from them.

But unless you're a fool, don't believe for a second that the RIAA owns what it controls, either. Stolen property doesn't belong to the possessor just because the possessor has the biggest gun in the room.

February 8 -- Princeton professor Edward Felten and his team of scientists said they would not appeal a New Jersey federal court's decision to dismiss their case against the RIAA. which invoked the DMCA to prevent him from publishing research that exposed holes in recording industry-backed anti-piracy technology.

Although the RIAA admits that it sent a letter to Felten last year warning him that he could face prosecution under the Digital Millennium Copyright Act (DMCA) should he publish his research, the industry group later retracted the threat, calling the letter a "mistake." That retraction, coupled with assurances from the U.S. government that the DMCA does not apply to scientific research, prompted the New Jersey court to dismiss the case last November.

February 9 -- U.S. Rep. Howard L. Berman has called for an investigation of "the negative effects of consolidation in the radio and concert promotion businesses", specifically targeting radio giant Clear Channel Communications.

February 18 -- The Federal District Courts and the Supreme Court this past year have re-enforced the artists rights to own their work. In two different landmark cases they say that unless a writer has explicitly given the permission to the copyright holder to sell their work electronically, that the publisher does NOT own those rights.

February 20-- The day before granting the legal stay in January, Judge Marilyn Hall Patel said she was planning to allow an investigation into how the labels have accounted for ownership of the songs they say have been stolen through Napster. Patel also said she would open an investigation into the issue of copyright misuse, or whether the labels have abused their control of music copyrights.

February 21 -- Lester Chambers, The Main Ingredient, the Original Drifters, The Coasters, have won a reversal of Judge Rakoff's decison to dismiss the case in the Federal Appeals Court. In a David vs Goliath like case, recording artists from the past have finally won one. Rhythm and blues artists who recorded albums dating back to the 1950s won a court battle on Thursday when an appeals court reinstated a copyright suit against major record companies over digitized works sold on the Internet or downloaded from Web sites.

The Second Circuit Court of Appeals vacated a lower court ruling that had thrown out the case filed by members of The Chambers Brothers, The Coasters, The Original Drifters and The Main Ingredient.

At issue is whether or not record labels automatically assume rights that did not exist at the time contracts were negotiated.

February 22 -- Fahrenheit Entertainment, Music City Records, and Sunncomm have decided to settle with the consumers who sued over the copy-protection scheme on Charley Pride's CD "A Tribue to Jim Reeves". Sunncomm and Music City Records agreed to resolve the consumer music "CD-Cloqueing" lawsuit by "providing better notice and enhancing consumer privacy."

February 22 -- Marilyn Hall Patel ruled that the five major record labels must prove they own thousands of music copyrights, and prove those copyrights weren't used to monopolize and stifle the distribution of digital music.

February 24 -- Dave Marsh explains why allowing the record company cartel to run the copyright-approved versions of computerized music delivery will make money only for the cartel, not artists.

February 26 -- After only two months into 2002...

    • Rick Boucher asks the RIAA and IFPI to explain how their copy protection schemes work and raises the question if the copy protection is illegal under Audio Home Recording Act of 1996.
    • On January 9th, the RIAA lays off 16 employees, including Karen Allen, their "Internet Evangelist"
    • The Recording Artists Coalition announced fund raising concerts to take place the night before the Grammy's to raise money to fight the recording industry for fair contracts and accounting oversight. The concerts sell out.
    • The Department of Justice investigation into antitrust issues continues.
    • EFF steps up to defend Morpheus as having substantial non-infringing uses.
    • The Supreme Court decides to hear the case of Eldred vs. Ashcroft (started out as Eldred vs. Reno) to determine if the retroactive Copyright Term Extension Act is constitutional.
    • Webcasting rates are set, most likely sending almost every webcaster offline, including non profit and college stations. Rates are retroactive to 1998. The webcasters have 30 days to pay after the rates are adopted.
    • Filesharing is at an all time high.
    • The RIAA releases figures showing that CD shipments are down 10.3%, but sales are only down 2.3 % in dollars.
    • Five songwriters file suit in LA District Court over record club sales and lack of accounting oversight.
    • California Senator Kevin Murray plans to introduce a bill this year to penalize record labels that purposely underpay royalties, this is in addition to the bill on the 7 year contract limitation.
    • EFF and 4 law school clinics launch chillingeffects.org to educate internet users to their rights online.
    • RIAA forms the California Music Coalition to fight against artists rights.

March 4 -- RIAA PR: "Why CD Copy-Protection is Necessary"

March 7 -- Rick Boucher says he plans to introduce legislation banning, or at least regulating, compact discs outfitted with anti-copying technology.

April 25 -- RIAA requested additional funds from the House Appropriations Committee for federal anti-piracy law enforcement efforts and is pushing for a renewed agenda on protecting intellectual property.

May 13 -- Certain music CDs are designed not to play in personal computers as a deterrent to digital copying. Each CD comes with a small warning label: "Will NOT play in PC/Mac". The CDs can cause Mac computers to freeze and then reboot to a grey screen. The computer may then refuse to restart until the CD has been manually ejected.

May 20 -- Sony Music's elaborate disc copy-protection technology is deated by scribbling around the rim of a disk with a Sharpie marker.

May 25 -- Maverick Records and Vivendi Universal's online division are asking listeners to pay a buck for an unprotected MP3 version of a new single.

June 27 -- The RIAA, back in April, sued the crap out of the Arizona company, IIS, for running its own internal mp3 server for the benefit of its employees. The two sides settled out of court for one million dollars.

July 1 -- Major record labels have launched an aggressive new guerrilla assault on the underground music networks, flooding online swapping services with bogus copies of popular songs.

July 1 -- Word has it that the RIAA is in the early phases on planning out this legal onslaught, but is certainly already tracking and monitoring users sharing high volumes of music for future litigation to be brought up against them.

The recording industry also continues their tactics of pushing for legal backing by someone inside the U.S. political system, with House Representative Howard Berman proposing new laws which allow the direct attack of peer-to-peer file sharing services by the industry without being legally liable. Not surprisingly however, it should certainly be noted that Howard Berman has received the largest amount of money in donations from the entertainment industry totaling $186,891.

July 8 -- U.S. Congressman Rick Boucher, moving to strengthen "fair use" provisions under federal copyright law, said he is introducing a bill that would essentially restrict the record industry from selling copy-protected CDs.

July 23 -- The California Senate Select Committee on Entertainment, in conjunction with the Senate Judiciary Committee held hearings on record labels accounting practices. Before it was over the labels had a bloody nose, and the RIAA spokesperson left before the hearing was over, supposedly to catch a plane, but a rail might have been more appropriate.

July 24 -- Singers and entertainment attorneys criticized California's $41 billion recording industry, testifying that it routinely underreports royalties and cheats artists of millions of dollars.

July 24 -- Major record companies, seeking to quash a brewing revolt by pop stars over royalty payments, released a study backing its claim that the embattled industry has negotiated past contracts fairly.

August 9 -- U.S. lawmakers have asked Attorney General John Ashcroft to go after Internet users who download unauthorized songs and other copyrighted material, raising the possibility of jail time for digital-music fans.

August 12 -- In order to stem this growing tide of massive piracy on the Internet, we urge the Justice Department to utilize its powers to:

    • Prosecute operators of peer-to-peer systems who intentionally facilitate mass piracy;
    • Prosecute individuals who intentionally allow mass copying from their computer over peer-to-peer networks; and
    • Create more Computer Hacking and Intellectual Property (CHIPs) units around the country with expanded authority to prosecute Internet piracy.

The copyright industries account for 5% of our gross domestic product. Increased criminal enforcement will ensure that this industry remains a driving factor for economic growth, and we ask that you make this a priority for the Department.

Sincerely,
House Judiciary Committee

August 12 -- The members of Congress who signed the letter (above) and the contributions they have received from TV/Movies/Music according to opensecrets.org

August 13 -- Until now, the entertainment industry has relied on civil lawsuits aimed at companies, not individuals, to limit widespread copyright infringement on peer-to-peer networks. The new plan appears to extend the target beyond companies with an apparent declaration of legal warfare against individuals using peer-to-peer networks.

August 14 -- California Senator Kevin Murray is continuing his push to repeal the 'Seven-Year Rule', which allows record companies to lock artists into unfair limitless contracts for their artistic works.

The RIAA issued a public statement last week outlining the five concessions they are willing to make to satisfy the concerns of artists' groups (such as the Recording Artist Coalition). In response to this "outline of concessions", Senator Murray has publicly stated his concern with what the RIAA calls "compromises" are in fact tailored to represent demands of the labels and not that of the artists.

"For the RIAA to present their demands as compromises or concessions was an insult to the recording artists, attorneys, and managers that have been working for months to resolve this issue." - Senator Kevin Murray

August 16 -- Sen. Kevin Murray announced that, "at the request of artist representatives," he had decided not to move forward this legislative session with California Senate Bill 1246. After listening to artists testify at hearings last year, lawmakers told their representatives to work out a compromise on the bill with the major record labels. The two sides have been struggling for months to negotiate a deal but failed to come to terms on several key points.

Also August 16 -- RIAA members sued AT&T Broadband Corp., Cable & Wireless USA,, Sprint Corp., Advanced Network Services, and UUNET Technologies, alleging their routing systems allow users to access the China-based Listen4ever.com Web site and unlawfully copy musical recordings. The copyright infringement suit, filed in Manhattan federal court, seeks a court order requiring the defendants to block Internet communications that travel through their systems to and from the Listen4ever site. The suit says the plaintiffs have not been able to determine who owns the Web site.

August 19 -- Information Wave Technologies has announced it will actively deny the RIAA from accessing the contents of its network. Earlier this year, the RIAA announced its new plan to access computers without owner's consent for the sake of protecting its assets. Information Wave believes this policy puts its customers at risk of unintentional damage, corporate espionage, and invasion of privacy to say the least.

August 20 -- John Malcolm, a deputy assistant attorney general, said Americans should realize that swapping illicit copies of music and movies is a criminal offense that can result in lengthy prison terms. Malcolm said the Internet has become "the world's largest copy machine" and that criminal prosecutions of copyright offenders are now necessary to preserve the viability of America's content industries.

September 7 -- Sen. George Allen, R-Va., withdrew his support for an anti-piracy bill that would make it a crime to distribute counterfeit authentication features including digital watermarks because of changes that came just before a committee voted in July to send it to the Senate floor.

September 16 -- Writers receiving review copies of two soon-to-be-released albums from Epic Records, a unit of Sony Music, are finding the CD's already inside Sony Walkman players that have been glued shut. Headphones are also glued into the players, to prevent connecting the Walkman to a recording device. By locking up the discs, Epic hopes to keep writers from converting the music to MP3's that can then be traded over the Net.

October 3 -- Congressman Rick Boucher (VA) argues that fair use is threatened.

October 4 -- The music industry wants a federal judge to force Verizon to identify a subscriber accused of illegally trading copyrighted songs. Such an action would pave the way for ailing record companies to scare alleged music-swapping pirates into submission through reams of cease-and-desist letters, rather than court action. Verizon general counsel Sarah Deutsch said a record company win in the case would harm the privacy rights of its subscribers and force Internet providers to give up the names of customers without judicial review.

Verizon has already agreed to hand over the subscriber's name if the music firms' trade group, the Recording Industry Association of America, files a separate "John Doe" suit against the subscriber. The RIAA refused. RIAA lawyer Cary Sherman said anti-piracy laws don't require a separate suit, which would require more time and expense.

"One of the things we're discovering is that people are not aware that they are engaging in conduct that is clearly illegal," Sherman said. "If you got a letter from RIAA saying we know that you're doing this, I'd say there's a pretty good chance that you would stop."

In one case, Warner Bros. demanded a particular subscriber be disconnected for illegally sharing the movie "Harry Potter and the Sorcerer's Stone." But the computer file identified by Warner Bros. in its letter indicated it wasn't the "Harry Potter" movie but a child's written book report. Another letter, to Internet provider UUNet, wanted a subscriber cut off for sharing songs by former Beatle George Harrison. But some files were not songs at all. One was an interview with Harrison, and another was a 1947 photograph of a "Mrs. Harrison."

October 4 -- Music industry price-fixing settlement announced.

October 18 -- Universal Music Group has initiated a new download policy, meant to make downloads more financially meaningful to artists.

November 1 -- Robert Kramer, of IBOB Digital Productions, suggests Hilary Rosen "seems to neglect to consider a few other alternatives to the reasons why there might indeed be a 7% decline in the shipments to music retailers." For instance:

    • The possibility that maybe the quality of music being currently offered by some so-called major label artists might be one of the problems.
    • Perhaps the record buying folks might simply be tired and worn out of all the negative, violent and dissonant garbage the record companies and retailers are charging champagne prices for nowadays. Give the public a choice between ten different types of garbage, and garbage is *all* they have to pick from.
    • Most people don't buy what they don't like.

Why am I, as an independent artist (read that as an artist who does *not* have a major-label contract), being prevented from getting MY OWN MUSIC to be played on internet radio?? Because the music industry monopoly who pulls the strings says that the internet radio broadcasters have to pay a prohibitive amount for broadcasting music over the internet, using "getting my fair share" as justification, and further, are told they are not allowed to play a certain amount of the same artists songs in a row. As a result, many internet broadcasters have ceased broadcasting. Major market broadcast radio has no such restrictions. Why not? Shouldn't radio stations be paying artists their FAIR SHARE for the FREE USE of their music??

Is Hilary Rosen REALLY concerned about getting the artists their fair share?? What about all the FREE promotional copies of music given away by the major label distributors that artists aren't getting a dime for?? If "stealing is wrong," then its wrong for EVERYONE, the radio stations included. Notice how no one wants to address the radio station issue?? There's a reason for that.

Wake up, Hilary Rosen. The labels would have to admit they've been in bed with the radio stations all these years, and that the radio stations pay NOTHING to the artists for the use of their music.

That's not about to happen anytime soon. And this doesn't even address the little creative accounting practices used by the record industry to manipulate the demographics to "prove an economic downturn" in record sales. Sure, payola is illegal. Go on, Hilary, prove it doesn't happen.

Anyone remember the little debacle Frank Zappa had with Warner Bros. some years ago? Look it up. Among other things, WB used a little accounting trick, they inventively called "pressing overruns," to try and slick artists out of deserved cash.

They'd have the plants press, say 200,000 units, for example. Then they'd show 100,000 shipped and sell off the extra 100,000 at a discount to sleaze bags who would then turn around and sell the boxes of albums off the back of some truck to record stores. The whole thing was creatively buried in their ENRON style accounting practices and it took awhile before artists finally broke their little scheme. The artists never saw a DIME from the sales of those "pressing overruns".

Remember, the industry gauges their figures on HOW MANY UNITS *SHIPPED*, NOT *SOLD*. Are those figures really telling the whole story about record sales?? I doubt it.
After all the discoveries of outright thievery uncovered in corporate America in this last year, it would be fascinating to have someone dig into some of the major label distributors finances. I'm *sure* they're all above reproach and have kept the highest moral and ethical standards in dealing with the artists money, right, Hilary??? Riiiight.

I can just picture record executives being hauled off in handcuffs on TV and courtrooms FILLED with major-label artists and fans to witness the "Trial of The Century" as they uncover the billions of dollars STOLEN over the years from truly deserving artists, musicians, producers and those on the front lines of music. It'd make the ENRON hearings look like simple shoplifting by comparison.

I guess stealing is only ok when the thieves are allowed to run the industry, right Hilary??

November 6 -- John Halderman, a computer scientist from Princeton University in New Jersey, plans to show delegates at a digital copyright conference in Washington DC next week that the idea of CD copy-prevention is "fundamentally misguided".

In 2001, Princeton University scientists debunked the technology the music industry planned to use to inaudibly watermark sound. Halderman is now doing a similar job on copy prevention systems.

Halderman reckons he has a solution for the RIAA. "Reduce the cost of new CDs; if discs cost only a few dollars each, buying them might be preferable to spending the time and effort to make copies or find them online."

November 11 -- By John Lettice

One mad consumer relations team might be an isolated incident, two begins to look like a trend. The dismissive response Bertelsmann Music Group's copy protection team recently issued to a consumer's query essentially boiled down to, 'all Cds will be copy protected, it's not our problem that they won't play on some devices, so tough.' But apparently, it's a competition. EMI Germany is taking pretty much the same attitude, and its humorously-tagged Consumer Relations team is calling the customers pirates while it's about it.

...we think the following loose translation captures the flavour of the atrocity.

"Dear Mr. xxx,
We will refrain from addressing the points in your email that are clearly erroneous. We also don't want to bore you with a lengthy explanation of why the music industry is forced to use copy protection measures, even though we would prefer to do something else. Only this much: There are 250 Million blank CDRs and tapes bought and used this year for copying music in comparison to 213 Million prerecorded audio media. This means the owners are only being paid for 46 per cent of the musical content. For a comparison: In 1998 almost 90% of all audio media was paid for. Even without a degree in economics everyone should realise that such trends will result in the music industry ceasing to exist. Only one measure can be used against widespread cloning of prerecorded audio media by burning CDRs: copy protection! This is also the reason why record companies increasingly have to protect their CDs. An alternative solution for stopping this abuse is unfortunately not within sight. But we fear that these facts don't interest you at all. Because these measures mean the end of free music, something that must cause you much grief.

"Should you really have a problem with playing the CD in question, we would like you to name the exact model of your player. Then we can compare this model with the list we have of players that our CDs run on without any trouble. Then we'll see if the problem really is the copy protection or if there are completely different reasons. The case you are reporting that even multiple players refuse to function can, in our experience, only originate from the realm of fairytales. The copy protection we employ is state of the art, this means there's nothing better available to date. If there will be something better, we won't hesitate to use it. Problems with playing on common CD-players are minimal, but every now and then it happens that copy protected CDs don't work on a player. We forward these cases immediately to our copy protection-provider, which is trying hard to adapt the technology accordingly and solve the problems.

"If you plan on cracking copy protection measures and burning the CD by other means we must point out to you that this will be illegal in the near future when the new European Intellectual Property law is introduced in Germany. Such breaches of intellectual property will then also be legally pursued by the state. The officials of the consumer rights ministry won't tell you anything different - after all it was the politicians who urged us to finally introduce copy protection measures.

"If you plan to continue protesting about future audio media releases with copy protection, forget it; copy protection is a reality, and within a matter of months more or less all audio media worldwide are copy protected. And this is a good thing for the music industry. In order to make this happen we will do anything within our power - whether you like it or not."

 

 

November 15 -- Roxio Inc. which makes CD-burning software, said it will buy substantially all of the assets of defunct song-swapping service Napster in a deal valued at $5.3 million.

November 20 -- Universal Music Group announced it would make more than 43,000 song tracks available for download at retail outlets and music Web sites. The downloads will be burnable to CD and transferable to secure portable devices. The digital tracks will be available for purchase by consumers in the U.S. for 99 cents for individual tracks and $9.99 for albums. The labels all attempted to sell limited digital downloads in the early days of their online efforts, but at about $2.99 or $3.99 a track or higher and with heavy restrictions.

November 24 -- A group of Microsoft researchers, including Paul 'Mr Secure PC' England, has delivered a paper which concludes that all efforts to stop content swapping/theft - possibly even including Palladium - are in the long term futile.

November 24 -- Officials at the Naval Academy have seized nearly 100 midshipmen's computers that allegedly contained illegally downloaded music and movies. The raid occurred while students were in class, and a source familiar with the investigation said the computers were being held by the administration.

Computers are given to each midshipman upon entering the academy. During their four years at the school, mids pay back the value of the computers through deductions from their monthly paychecks.

Amanda Collins, a spokesman for the RIAA, said yesterday that the Naval Academy was among the colleges and universities around the country that were sent two letters from entertainment industry and educational associations asking them to address Internet piracy and establish policies against it.

The recording industry estimates that more than 2.6 billion music files are downloaded illegally each month, usually through unlicensed services. The industry claims this threatens the livelihood of everyone from artists, songwriters and manufacturers to sound engineers and record-store owners and clerks.

December 12 -- RIAA Press release -- "Within the past year, each of the major music companies has announced a record number of online initiatives, yielding a broad array of offerings from legitimate services. The true winners are the music fans who want to listen to music how they want it, where they want it and when they want it," said Hilary Rosen. "To fans who have said they wanted to enjoy music online, the recording industry is listening and delivering."

"From the start, the overriding goal of our efforts to curb illegal Internet music trafficking has been to foster an online environment where the legitimate services can succeed," Rosen continued. "It is also encouraging that the extraordinary progress of the legitimate online market in the United States is being mirrored around the world."

December 12 -- A Secret Service raid of a Queens warehouse on Monday broke up what recording industry experts are calling the largest music CD counterfeiting operation ever, capable of churning out six million discs a year.

The raid of a 2,000-square-foot factory in Long Island City was the result of a two-month investigation by the Secret Service, which enforces copyright law, and former law enforcement officials working for the RIAA, said Frank Creighton, head of the RIAA's antipiracy division.

The seizure of 35,000 illegally copied music discs, 10,000 movies on DVD, 421 interconnected disc burners and expensive printing equipment made it the largest raid in the more than 30 years the trade group has been tracking such seizures, Creighton said.

December 16 -- We applaud the RIAA and Secret Service for finally going after the real pirates, which they've pretty much left alone while accusing their very customers of being pirates for sharing files via P2P programs, limiting the ability to play cds on our computers and in general treating their customers like thieves. However there are some questions that need answering. Such as how many CD-R burners were there really?

From the RIAA Press release: "....leading to the capture of 35,000 finished CD-Rs, 10,000 DVDs, the equivalent of 421 CD-R burners and the arrest of three individuals. This operation alone had the potential to cost the industry an estimated $90 million annually."

The Register is reporting that, in actuality, it wasn't 421 CD-R burners, but in fact 156. The explanation? According to the Register article the RIAA official line was: "There were only 156 actual burners, but some run at very high speeds: some as high as 40x. This is well above the average speed,"

This once again raises the credibility issue with RIAA statements as to numbers, dollars, and in general anything they have to say. Remember when Hilary Rosen testifies in front of Congress, not once has she or any other hearing been "on the record" so to speak. Not one person has been sworn in, nor can they be charged with perjury for lying. These are information gathering venues, in which the Congress has been lied to, told half truths, and generally deceived.

THE RESPONSE

Dear Mr. Evans:
Thank you for your inquiry. We stated that the raid was the equivalent of 421 burners, as we need to put these operations in perspective based on burning capacity and output, not the # of physical slots for the discs. Since they burn 4x burners - it is roughly 4xs the numbers of burners.

We work with the Secret Service but you should contact them as I am not their spokesperson.

Thank, you

Amy Weiss

December 24 -- The RIAA has been nominated by the Internet Services Providers' Association (ISPA UK) for the "Internet Villain of the Year Award," in recognition of the RIAA's efforts "supporting 'right to hack' proposals and other unworkable solutions to curb copyright abuse"

December 29 -- By: David Nevue (The Music Biz Academy)

I have been really surprised at the lack of press on the most recent changes over at MP3.com. Of course, it may be that many in the industry consider MP3.com irrelevant today, but I myself, as an independent artist, take some exception to this. Perform a search at Google for 'music' and MP3.com is the #2 site listed. Search for 'mp3' and it's the #1 site listed. In terms of pure, cyber-traffic I'm not sure how much more relevant a web site can be. Maybe MP3.com doesn't have the traffic of Amazon.com, but for a web site that willingly plays host to thousands of independent artists, there isn't much out there that's more visible.

You may recall that a few weeks ago I wrote a commentary on 'MP3.com's Halloween Treat,' that is, the new 'look and feel' of the web site. In addition to these changes, MP3.com dropped hints that there were some big changes in store for its 'Premium Artist' Program. Last week, MP3.com announced those changes.

The most notable change, which I must admit I dreadfully expected, is that as of January 15th, 2003, MP3.com is discontinuing their Pay for Play (P4P) program. The P4P program paid independent artists 'royalties' every time their songs were listened to or downloaded. It was a wonderfully cool idea that, unfortunately, cost MP3.com more than it was worth to keep going. To quote MP3.com, "It's our goal to offer Premium Artists the best service for their money and tools that benefit all members. But this (P4P program) was getting more difficult given the enormous accounting, engineering, research and fulfillment costs that went into both the P4P promotion and regrettably, the monitoring of individuals gaming the system."

I, for one, am really going to miss the P4P program, and not just because of the drop in personal revenue. I'll miss it more because, using the earnings it generated, I was able invest heavily into MP3.com's promotion programs, all of which I applied with much success. This success lead not only to a ton of exposure for my music - over 1.2 million plays since I joined MP3.com - but to a continuing flow of CD sales from my own 'official' web site.

So, you might ask, "David, why don't you just drop MP3.com and move on?" Actually, many independent artists are doing just that (and have been for some time), but I'm not ready to bail out yet. Why? Because there is one thing MP3.com offers that most other services can't quite match: pure, Internet traffic.

Imagine having your CDs on the shelves of one of the world's largest music stores, sitting side-by-side with CDs by artists like Madonna, Linkin Park, and Pink. Imagine the exposure potential, especially if you could, through careful placement, get your music directly in front of the people most likely to buy your music. Any of these potential customers, with a click of a button, can preview your music right on the spot.

That's what MP3.com *still* offers independent artists. In this regard, especially considering the volume of traffic they generate from people looking for new music while listening to 'popular' artists, no one else I know comes close to offering this opportunity.

With the P4P program dead, however, I can only speculate what the future might look like for independent artists promoting their music on MP3.com. I won't get any clarity on that issue until long after the new changes go into effect. MP3.com states with a great deal of conviction that they are still dedicated to helping and serving the independent music community. I truly hope this is the case, but I wonder, with the financial demands of the corporate music realm, will MP3.com really be able to keep us 'indie's' hanging around?

MP3.com has found itself in a very awkward position, I think. It's a strange experiment gone haywire, a once-totally-independent web site that has been genetically grafted into the corporate music family. In some ways, MP3.com now resembles a free, but handicapped, version of Listen.com's Rhapsody service. MP3.com started out like a child with big dreams and ideas, now it seems more like a confused teenager, trying to find its place in the changing digital world. Will it survive its adolescent years?

The future of MP3.com as a web site even seems uncertain. According to rumblings on the MP3.com Artists Boards, even 'SOPHIE,' a mysterious MP3.com employee and 'spokesperson for independent artists,' is being 'downsized.' Her last day at the company, rumor has it, is today, December 20th.

You may also recall my report from October, in which I mentioned that Universal Music Group has been in the process of reviewing which of its assets, including MP3.com, they can dump to reduce their debt. Would it surprise anyone to find one day that typing http://www.mp3.com in your web browser forwards you to Rhapsody, PressPlay, or MusicNet?

For those of you who, like me, are still MP3.com artists, there are other alternatives around. MusicDistribution.com (www.musicdistribution.com) lists a number of services that host independent music, including JavaMusic (www.javamusic.com), and AmpCast (www.ampcast.com), both of which offer royalties for artists for downloaded songs.

I'm not ready to give up on MP3.com, though. I suppose in a way, I feel that after all I've invested in it, both in writing as well as financially and with my time, I've become a part of the MP3.com 'family.' As such I'll stand beside it through its victories, and perhaps even to its eventual deathbed, if that's where all this leads.

Still, I hope beyond hope, that we are not seeing the beginning of the end of MP3.com, and that, for the independent artist, the best is yet to come.

General Notes -- Quotes -- Artist Activity -- Other 2000 Stories

Sources

  • Whenever possible, all articles on this page are linked to the source. The chronology of the articles was culled from extensive research in the Boycott-RIAA News Archives.