Sony Plays Both Sides in Grokster Case

by George Ziemann

1 Mar 05 -- For everyone who has lived under a rock for the last five years, the recording and movie industries are trying to shut down peer-to-peer file trading, despite the reality that it is exactly how the entire Internet works. The two lobbying groups which represent these industries are the RIAA (Recording Industry Ass. of America) and the MPAA (Motion Picture Ass. of America). Verbal arguments are scheduled for March 29 and amicus (friend of the court) briefs have appeared from numerous sources whose relevance to the case is slim at best.

Grokster, Morpheus and StreamCast are the defendants, but only because Kazaa is on some island in the Pacific and is apparently as immune from US prosecution as are the RIAA labels themselves.

Let's take a quick look at the major players and the core arguments they have presented so far:

Against Grokster

RIAA -- Sales are down. The pirates are stealing our stuff. Mitch Bainwol, RIAA chairman, says "the industry understands its future is intertwined with the technology sector" and they'd like everyone to stop and wait while they figure it out.

MPAA -- They're stealing our stuff. Sales? Well, uh, two record years in a row. Or was it three? But never mind that. The pirates are stealing our stuff.

Napster Inc., MusicNet and CinemaNow -- They're not buying our crappy, compressed, overpriced stuff. Damn pirates.

NFL and NBA -- Worried that people might surreptitiously watch the games, despite the fact that at any one moment there are probably 20 sports channels broadcasting some kind of game. The NHL decided to abstain because they'll just be happy if people remember them the next time they have a season.

Federal government -- Argues that while file-sharing technology has legitimate uses, they're pretty sure that this isn't it.

Christian Coalition and attorneys general for 39 states and Guam -- This group has the misplaced notion that shutting down peer-to-peer will somehow have an impact on pornography. To further this cause, they have sided with Hollywood, who is producing most of it. This prompted former RIAA head inquisitor Hilary Rosen to comment, "There is a bizarre but cool irony to the conservatives who hate the media we produce but defend to the death our right to make money when we produce it."

Recording Artists -- Don Henley, Avril Lavigne, Dixie Chicks and Sheryl Crow (among others) are pretty sure everyone is stealing their stuff.

Supporting Grokster

Recording Artists -- Steve Winwood, Janis Ian, Chuck D., Heart and Jason Mraz weighed in to offer a more logical and rational artist point of view.

"Musicians are not universally united in opposition to peer-to-peer file sharing" as the major records companies claim, according to a draft of the group's court filing. "To the contrary, many musicians find peer-to-peer technology... allows them easily to reach a worldwide online audience. And to many musicians, the benefits of this strongly outweigh the risks of copyright infringement."

Before online file sharing, "distribution of recordings to retailers was controlled largely by a few large national record companies and by several 'independent' labels. Young people aspiring to be musicians faced daunting odds of ever being signed by a record label."

Jason Mraz said half of the fans who pay to see him in concert heard about him through illegal downloading. Meanwhile, file sharing gives accomplished artists, such as Janis Ian, a chance to control distribution of their work that might no longer be deemed worthy of commercial promotion and sales.

SBC Communications Inc. and Verizon Communications Inc. -- "This case is simply the latest in a long string of instances in which copyright owners, frightened by a new technological development" seek to place restrictions on electronic devices, Internet access services, and even on personal computers to try to prevent piracy. The entertainment industry can properly continue to sue individual file-swappers who break the law. One at a time.

Computer & Communications Industry Association -- Questions whether the industry should have control over "the vast majority of communications and technology today."

EFF (Electronic Frontier Foundation) -- Representing Streamcast. Contends that p2p companies are protected by the BetaMax decision, which ruled VCRs presented substantial non-infringing uses.

Everyone Else (other file-sharing firms, major telecommunications companies, electronics makers, and coalitions of computer scientists, inventors, consumer and digital-rights advocacy groups) -- While not all are in support of Grokster, per se, they acknowledge that this case threatens innovation and technological advancement.

And Then There is Sony

A couple of paragraphs from the Washington Post story (linked above):

The Consumer Electronics Association, which represents upward of 1,700 technology companies, including Sony Corp., Intel Corp., TiVo Inc., is also planning a brief in support of Grokster and StreamCast.

The companies fear a ruling against the file-sharing services would leave them susceptible to lawsuits if they develop devices or technologies not approved by the entertainment industry.

They point to a long history of copyright holders trying to quash new distribution models or products, going back to the player piano and including the VCR, MP3 player and digital video recording pioneer ReplayTV.

This case is officially titled MGM v Grokster. Sony owns MGM, but is supporting Grokster.

Figure that one out. If you can. I sure couldn't.

©2003 George Ziemann
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