Re: RIAA v Howell cleanup

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Author: Chris Gehlker
Date:  
To: Main PLUG discussion list
Subject: Re: RIAA v Howell cleanup

On Jan 10, 2008, at 3:47 PM, Craig White wrote:

> Washington Post retracted (this will make Chris happy)
> http://www.washingtonpost.com/wp-dyn/content/article/2008/01/04/AR2008010403607_2.html


Very happy!
>
>
> Wired refutes retraction...
> http://blog.wired.com/27bstroke6/2008/01/riaa-still-thin.html


I can't be upset about this since I never confused Wired with
journalism but one thing does stand out and it is a mistake that a lot
of more reputable sources than Wired seem to make.[1]

This common mistake is in trying to somehow infer that the RIAA is
making some positive statement on their position on ripping CDs simply
because they deny that they hold the opposite position. Listen again
to Cary Sherman on NPR. He is trying to disavow Pariser's "steals just
one copy" remark without actually saying ripping is OK. In fact those
who want to hear that the RIAA condemned ripping and those who want
to say that they endorsed it are both wrong. I seems clear that the
RIAA is shucking, jiving, twisting and in general trying to avoid
taking any position at all.

When an association will not state out a clear position on an issue
the usual supposition is that they don't have internal consensus. I
suspect that that is exactly what is going on with the RIAA.

If the RIAA could wave a magic wand and make ripping impossible, i
suspect some of there members would oppose doing so. Business logic
suggests ripping is good for the industry. To believe otherwise one
has to accept that there is a significant market for dual purchases -
people who will happily pay for the same song twice, once on CD and
again as a download. This is not creditable. People who purchase
their music in the form of a download obviously don't care whether
they get a CD. People who prefer a CD can always use a portable CD
player when enjoying their music 'on the go' is important. A portable
CD player is not as convenient as an MP3 player but it is hardly
inconvenient enough to motivate many instances of buying the same song
twice. At the same time, by making CDs somewhat less useful, this
hypothetical magic bar to ripping CDs would make them a little less
desirable. The result would undoubtedly be some shift in the
consumer's entertainment budget away from recorded music. It was quite
likely that the total revenue received by the recording industry would
decline if CDs could not be ripped.

I couldn't find any econometric studies to address this specific issue
but that doesn't mean that the RIAA members haven't conducted their
own studies. What I could find was some quite professional studies
that show file sharers buy more music than non-file sharers.
Apparently file sharing can act as a vehicle for publicizing a song
just as radio does.

So if the ability to rip CDs is actually good for the recording
industry, why would some RIAA members oppose it?

The answer seems to be that some companies are so fanatic about IP
that they are totally irrational. The British equivalent to the RIAA
actually sued a car repair chain for allowing its employees to play
radios where their customers and coworkers could hear them. They seem
to have totally forgotten that no one will buy a song they never
heard. Then there is the case of the Sony Aibo, a little robot dog
that they used to sell for $1,500 a pop. Sony sued and enthusiast for
posting a program that made it dance to jazz. Sales plummeted and Sony
lost a nice little business. They seem to have lost sight of the fact
that writing and sharing programs for the Aibo was the whole point of
having one.

Of course Sony was behind the root kit on a CD fiasco and it was a
Sony rep who made the 'steals just one copy' remark.

Currently there are several stories about rumors that the RIAA is
going to be scaled back or reorganized. Wouldn't that be special? It
does add a little evidence to my speculation that there is internal
dissension.

[1] Criag White is definitely on my list of sources that are more
reputable than Wired.
--
In America, anybody can be president. That's one of the risks you take.
-Adlai Stevenson, statesman (1900-1965)

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