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Why the Obama Administration's Stance on Piracy Sidesteps Complicated Issues

Addressing an audience of workers in the music industry, Commerce Secretary Gary Locke reaffirmed the Obama administration's commitment to cracking down on media piracy on the Internet.

Commerce Secretary Gary Locke was in Nashville, TN on Monday to speak to an audience of people mostly in the country music industry. He was there to reinforce the Obama administration's commitment to cracking down on music piracy on the Internet.  

Locke's trip can be seen more as a political move than a policy move, though it is useful to examine the different sides of this tough issue.   
 
In a political move, Locke opened with gratitude toward local elected officials—Congressman Jim Cooper (D-TN) who is co-sponsoring the Performing Rights Act and Tennessee Governor Bredesen who signed into law the Campus Piracy Bill which forces colleges in the state to take preventative measures against illegal file sharing. He also expressed gratitude toward the country musicians in the audience who came out to discuss the issue, and tugged on the local heartstrings of a city that is still recovering from the devastating floods this past Spring.  
 
As the Washington Post reports, total revenues for recorded music in the United States dropped from $14.6 billion in 1999 to $7.7 billion in 2008. Locke also made mention of the growth of the digital music downloads, which reached $3.1 billion in 2009, up 19 percent from the previous year. The drop appears huge, but it's hard to know exactly what it means. Did piracy have an impact on the music industry? Probably. But did it actually cost it $7 billion? That's yet to be seen.  
 
Locke made reference to the June discussions of "the Administration's recent release of a Joint Strategic Plan by the newly created Intellectual Property Enforcement Coordinator reflects the depth of our commitment to curb intellectual property piracy both here and abroad." Quoting Vice President Biden, Locke reiterated the administration's policy that " piracy is flat, unadulterated theft."  

It's hard to argue with that, in accordance with the letter of the law. We often like to justify piracy by claiming that the recording industry makes too much money off of us, or that we're only downloading music we wouldn't have bought anyway such that it won't hurt anybody. We've all done it at one time or another, but rationalize it as we may, it's still not legal to download music without paying for it. But that doesn't mean the approach being taken by the administration is the proper recourse, either. A proper defense shouldn't be, "spy on everyone and sue their pants off."  
 
Locke professed that "this copyright and patent framework needs to evolve to meet the evolving challenges of the 21st century." Yet the biggest problem is that we the concerned citizenry don't see what is being done. So while Locke might report that the "(Commerce) Department is also conducting a comprehensive review of the relationship among copyright policy, creativity, and innovation in the Internet economy," all we hear about is enormous fines being levied against poor grandmothers who have never heard of LimeWire.  
 
Media piracy is a complicated issue. Locke quoted President Obama, saying that, “single greatest asset is the innovation and ingenuity and creativity of the American people." This is a particularly interesting sentence because it addresses virtual goods: the immaterial products of patents, IP, and copyrightable materials. Not only does it involve the intangible, it increasingly is wrapped up in global policies and international law.  
 
What bothers me most about the speech is that Locke is appealing to a relatively wealthy group of people with its own powerful lobby. Not to say they don't deserve protection under the law, of course. But the music industry has been criticized as being a dinosaur afraid of innovation—one that only begrudgingly gave up DRM. Locke told the story of a letter sent to him by a songwriter who had depended on music royalties to "be a golden parachute to fund his retirement" that "had turned out to be a lead balloon." Given that 'golden parachute' is often used pejoratively, it's hard to identify with his plight.  
 
It would have been more productive had Locke come together with the members of the recording industry to discuss the plans of both sides. There were no plans of the industry's plans to innovate in light of the rapid technology shifts in media consumption. There was no discussion of whether piracy numbers were up or down (as has been extensively debated elsewhere) and why that might be. Without any actual discussion, it's hard to see Locke's visit to Nashville as anything more than reassuring a giant media industry that the government cares.  
 
Discussions of media piracy are always a touchy subject, inciting emotionally charged responses dealing with politics of all sorts. We'd like to know your take on Locke's visit and the issues at hand, but remember to be civil!
 
Image credit: Flickr user nkrbeta , Woot
TheAdminon Sept. 2, 2010 at 8:14 a.m.
Piracy generally takes money from one industry and puts it into another. The iPod is popular today, not because people had bought lots of mp3s, but because they ripped (which the RIAA considers piracy) and downloaded them and wanted to listen to all that music on the go. 
 
Adobe Photoshop and Flash are so prevalent today because this generation grew up pirating it and using it - so when it was time to go to the work place - those same creative folks wanted Adobe products. Flash is popular online first for stupid cartoons and games made by pirating amaturers and later for professional video.  
 
Home VHS recordings, mix tapes, etc all happen because of people's desire to share content they love with each other. This issue comes down to money and not giving consumers good service and products. These industries with their vast amounts of wealth could easily develop services that facilitate sharing, discovery and more while still maintaining healthy profits. That's not their business model. They cling to the old model as long as possible before it seeps out of their fingers by the new model, which they then switch to and repeat.  
 
You fight piracy with better service, more choices, and cheaper prices. 
tapsodaon Sept. 2, 2010 at 8:20 a.m.
To Hell with the guy and his golden parachute. 
WilliamRLBakeron Sept. 2, 2010 at 8:39 a.m.
@tapsoda said:
" To Hell with the guy and his golden parachute.  "
Remember Folks All music artists get 99% of their profit and are rich...the majority Don't actually end up making What a 30 year old in a manager position for the rest of his life would make.
Theresonlyoneon Sept. 2, 2010 at 8:44 a.m.
I'll feel different when musicians stop driving round in rolls royces and complaining how all this money has made them sad.
simianon Sept. 2, 2010 at 9:02 a.m.
@TheAdmin said:
You fight piracy with better service, more choices, and cheaper prices.  "
Salient point Rainbow Dave.
@Theresonlyone:  Not to bring up the cliche "I have a friend who's a musician and..." but indepedant artists get fucked over royally by pirating... Probably even more so than from their label...
Phoenix87on Sept. 2, 2010 at 9:10 a.m.
From Napster to Kazaa to limewire to Bit Torents, people will always adapt and evolve their methods. Its the late comers that suffer. My Grandfather tried limewire for the first time a month ago and got a Trojan, while everyone my age stopped using limewire years ago. 
 
  If all albums were $5 dollars across the board, as opposed to $11.99 to $13.99 (Bestbuy) and 9.99 (Itunes), then I would be satisfied, but that may just be wishful thinking.
Scotty_Gunon Sept. 2, 2010 at 9:15 a.m.

This debate always seems to ignore how tiny the fraction of music sales are that actually make it back to the songwriter and performer.  When the record labels seek protection from piracy, what they really want to protect themselves from is the ability to continue to pocket 95% of the revenue and exploit their artists.
lane moderator on Sept. 2, 2010 at 9:30 a.m.
Dear RIAA,
 
It's not piracy that's killing you, it's the crappy music. The Internet has provided numerous resources for people to discover music they actually enjoy, and those artists are getting the dollars that used to go to you. Adapt or die.
 
Love,
Lane
MrMazzon Sept. 2, 2010 at 10:01 a.m.
well if they made it harder maybe it wouldnt happen so much. it dosent help the musuic industry looks at change as if it were the end of the world and they are still making BILLIONS OF DOLLARS hate to sound cold hearted but the moment you cant live on a billion dollars is when you have a problem 
WilliamRLBakeron Sept. 2, 2010 at 10:55 a.m.
@lane said:
" Dear RIAA,  It's not piracy that's killing you, it's the crappy music. The Internet has provided numerous resources for people to discover music they actually enjoy, and those artists are getting the dollars that used to go to you. Adapt or die.  Love, Lane "
yeah thats gotta be it those same artists you speak of aren't getting pirated massively too right?
lane moderator on Sept. 2, 2010 at 10:58 a.m.
@WilliamRLBaker: 
 
They are, and they still probably have more money than the ones who don't have the fat cat intermediaries of the big labels lining their pockets with the income from their albums. Musicians have always made the most money from touring, not record sales. Declining sales hurts the people who produce the records way more than the artists, hence the labels speaking out against piracy wayyyyyyy more than the artists themselves.
DuhQbnSiLoon Sept. 2, 2010 at 11:01 a.m.
I'm stealing that picture!
crusader8463on Sept. 2, 2010 at 11:03 a.m.
As with all of life's most important views I always find myself turning to Weird Al for guidance. Let's see what he thinks of this whole thing.
 
 

GozerTCon Sept. 2, 2010 at 11:30 a.m.

Honestly I get more music from the radio and XM radio than anything else.  I mostly listen to podcasts anymore anyway.   
 
For me Piracy is more of a concern in the Gaming and TV/Movie industries.  O.O!  

RichardAshleyon Sept. 2, 2010 at 11:50 a.m.
@TheAdmin said:
" Piracy generally takes money from one industry and puts it into another. The iPod is popular today, not because people had bought lots of mp3s, but because they ripped (which the RIAA considers piracy) and downloaded them and wanted to listen to all that music on the go.  Adobe Photoshop and Flash are so prevalent today because this generation grew up pirating it and using it - so when it was time to go to the work place - those same creative folks wanted Adobe products. Flash is popular online first for stupid cartoons and games made by pirating amaturers and later for professional video.   Home VHS recordings, mix tapes, etc all happen because of people's desire to share content they love with each other. This issue comes down to money and not giving consumers good service and products. These industries with their vast amounts of wealth could easily develop services that facilitate sharing, discovery and more while still maintaining healthy profits. That's not their business model. They cling to the old model as long as possible before it seeps out of their fingers by the new model, which they then switch to and repeat.   You fight piracy with better service, more choices, and cheaper prices.  "
I love you
Cryostasis_Lubeon Sept. 2, 2010 at 11:51 a.m.
Didn't Radiohead make more money from In Rainbows, than any of their previous releases? I think what the record companies are really afraid of is being left behind.
WilliamRLBakeron Sept. 2, 2010 at 12:20 p.m.
@lane said:

" @WilliamRLBaker:   They are, and they still probably have more money than the ones who don't have the fat cat intermediaries of the big labels lining their pockets with the income from their albums. Musicians have always made the most money from touring, not record sales. Declining sales hurts the people who produce the records way more than the artists, hence the labels speaking out against piracy wayyyyyyy more than the artists themselves. "


I can tell you dont know much about the subject.  The majority of big bread winners in the music industry are such because they were big enough to get their own ends met in contracts, or people like Dr.Dre who do production, and writing and every thing them selves.
The majority of Artists do not make major loads of money.  The majority something like 98% of a cd's sale 17 or so bucks go to every one but the artist.
lane moderator on Sept. 2, 2010 at 12:39 p.m.
@WilliamRLBaker: 
 
Yeah dude, it's not like I've never played in a touring band, handled booking at a popular venue, or been friends with lots of successful artists.
 
Oh wait. I have.
 
Your move.
TheAdminon Sept. 2, 2010 at 12:46 p.m.
@WilliamRLBaker: @lane:  
 
Technically, Lane is right. Most contracts for the music end of the business gives little to no monetary value to the artist. Artists typically make most of their money through tours and merchandise sales. Often, music videos eat a considerable amount of the budget given to the band, which their expected to pay back. You'll notice that most artist now go for touring contracts which give them a lot more power over their tours and how much they make there. Now, not all artists make the most this way, but often times this is their bread and butter.  
 
unfortunately, the music industry likes to put two images in front of the public. One, where they are the starving artist who is hurt a lot by piracy and lost record sales. The other image is that of a highly paid celebrity musician, living the life, huge "crib", many expensive cars. You can't show the public the one image and expect them to care about the other.
WilliamRLBakeron Sept. 2, 2010 at 1:01 p.m.
@lane said:
" @WilliamRLBaker:   Yeah dude, it's not like I've never played in a touring band, handled booking at a popular venue, or been friends with lots of successful artists.  Oh wait. I have.  Your move. "
so you completely ignored the rest of the subject, and just replied to the you don't know much about the subject, and even then your reply was the quite lame..but but but I have, with no backing up of that tidbit, or even explaination.
But obviously you still don't know much about the subject or else you'd know that any small band is lucky to make a check.  My favorite band metallica before they became big was living out of a van half the time, eating bread on bread sandwiches because meat was too expensive, playing dives while peddling their own cassette tapes, and thats without a label.
 Even small bands under a label don't make alot, they get the bottom wrung, the last bit of cash out of the pot the rest goes to every one else in the music process.
 
@TheAdmin said:
" @WilliamRLBaker: @lane:   Technically, Lane is right. Most contracts for the music end of the business gives little to no monetary value to the artist. Artists typically make most of their money through tours and merchandise sales. Often, music videos eat a considerable amount of the budget given to the band, which their expected to pay back. You'll notice that most artist now go for touring contracts which give them a lot more power over their tours and how much they make there. Now, not all artists make the most this way, but often times this is their bread and butter.   unfortunately, the music industry likes to put two images in front of the public. One, where they are the starving artist who is hurt a lot by piracy and lost record sales. The other image is that of a highly paid celebrity musician, living the life, huge "crib", many expensive cars. You can't show the public the one image and expect them to care about the other. "

So hes not right, his point being every single person under a label, every single person under a big label makes big money, when in reality the only ones that make the multimillions are the big ones, The artists that get the sales, And we're able to get their contract made to benefit them the most, Or the artists like Dr.Dre whom do every thing write the songs, produce them, produce the music video, and are actually the CEO of their label. The small ones, the unknowns, the Independents these all get very little, A medium hit making band is not going to make multimillions Even from touring, So it falls in line that a Band that tours and is together for say 10 years, and only were a middling hit maker, Are only going to make as much as a guy that works his entire life in a managorial position at say wal-mart or K-mart.
 
To claim that piracy isn't the problem is a key sign of someone that is under some delusion that piracy isn't illegal, and they have to do moral Acrobatics to make it out that the money is going to smaller bands, and labels and not the big labels, When the majority of those small labels and those independents are getting pirated just as much.
Piracy has had a major impact because computers have become more wide spread, and the exchange of files has become easier then ever before, along with faster internet speeds, we are talking about 1999-2008 the net landscape and the computer landscape has changed and become far more vast in terms of users.
 
But thats not the point, the point is that the majority of Music artists dont make multimillions year after year.  So trying to claim that piracy isn't affecting the small bands, and non-bigname acts is just silly.
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