President Bush Approves Prison for Movie Pirates
On April 27, 2005, President Bush signed a bill into law that prohibits the secret videotaping of movies when they are shown in theaters. In addition to three years in prison, those found guilty of movie-pirating could face lawsuits from copyright holders.
The law also toughens penalties for hackers and industry insiders who distribute music, movies or other copyrighted works before their official release dates.
Copies of hit movies frequently show up on the Internet while they are still in theaters, allowing fans to see new releases without buying a ticket. Pirates sneak camcorders into movie theaters to tape films directly off the screen, and some industry insiders leak copies to hackers before they are officially released. The U.S. Customs Department has estimated that distribution groups like these are responsible for 95% of all pirated movies available online.
Dan Glickman, president of the Motion Picture Association of America, hailed the enactment of the legislation, adding that, "Video piracy is not a victimless crime."
International Herald Tribune, April 28, 2005 (Reuters)
http://www.iht.com/articles/2005/04/28/business/pirate.php
International Effort Targets Illegal File-Sharers
On April 12, 2005, the biggest international wave of legal action against Internet music file-sharers was announced by the International Federation of the Phonographic Industry (IFPI). New copyright infringement cases have been launched against nearly 1,000 individuals in 11 countries across Europe and Asia. IFPI confirmed the filing of 963 lawsuits in Japan, the Netherlands, Finland, Ireland and Iceland, bringing the total number of legal actions to more than 11,000 worldwide.
Japan, the first Asian country to take legal action, announced that it is joining the battle against online music piracy. Home of the world's second-largest music market, Japan has been hit hard by Internet piracy and other factors in recent years losing 30% of its value ($1.8 billion) between 2000 and 2004.
On the European front, the international actions have extended the policy of suing alleged illegal file-sharers to four new countries - Netherlands, Finland, Ireland and Iceland. They join Austria, Denmark, France, Germany, Italy and the UK, who all began litigation in the last year.
The new wave of lawsuits, coordinated by IFPI on behalf of its more than 1,450 member record companies, affects users not just of the KaZaA network (KaZaA, KaZaA Lite, iMesh), but also those on newer file-sharing services including eDonkey, eMule and various Gnutella services including Bearshare, Limewire, OpenNap, WinMX and Winny, DirectConnect, and BitTorrent.
In the U.S., 9,900 cases have been brought to date, bringing the total number of lawsuits launched internationally to 11,552.
IFPI Chairman and CEO, John Kennedy, commented on the worldwide initiative to stop illegal file-sharers in their tracks, "Around the world, people sued come from all walks of life. We didn't choose them - they chose themselves by the extent of their uploading. It doesn't give me any pleasure to say that some offenders have had to pay substantial damages. However they ignored all the warnings, and have regretted it since. I hope that people are learning from the experiences of those who decided not to buy their music legally.”
IFPI.org April 12, 2005
Read the press release: http://www.ifpi.org/site-content/press/20050412.html
Money.CNN.com, April 12, 2005 (Reuters)
http://money.cnn.com/2005/04/12/news/international/music_lawsuits.reut/
Court Rules Common Law Protects Older Recordings
On April 5, 2005, New York's highest court ruled that common law protects a record company's copyright on recordings made prior to 1972 - a decision that could have industry wide ramifications for everything from classical to rock and roll.
That lawsuit involved Tennessee-based Naxos of America Inc., which restored and marketed 1930s classical records made in England by The Gramaphone Co. Limited, after the 50-year British copyright had expired. Capitol Records Inc., which currently holds the rights to those recordings, sued the company.
Previously, a federal court had dismissed Capitol's suit, saying federal copyright law only protected recordings since 1972, and Capitol had no common-law protections under New York state law. Following the decision, Capitol appealed the common-law finding to the New York Court of Appeals, which has ruled in its favor. A federal appeals court will now rule on the company's lawsuit using the state court's decision.
Most of the recordings at issue feature classical performances, dramatic readings and oral histories. The court argument also included British Invasion rock and pop groups from the 1960s, some of which will soon lose copyright protection under British law.
The New York court ruling applies to all recordings marketed in New York even if no other state or foreign law or common law was still in force, according to the decision.
Capitol Records attorney Philip Allen Lacovara commented on the significant decision, "I hope the companies who have been inclined to copy older classical recordings realize the New York court has spoken definitively on this and end any unlicensed copying. It does have enormous importance."
Yes90 TVi News, April 6, 2005 (Associated Press)
http://smart90.com/tvimagazine/2005/1505/108copyrightsproyatiesWin.htm
Supreme Court Can Redefine File-Swapping
The entertainment and technology industries are looking to the U.S. Supreme Court to define the rules of innovation and copyright infringement. On March 30, 2005, attorneys for the major record labels and Hollywood studios argued their case in front of the court, which many observers say could help set the ground rules in the entertainment and technology industries for years to come. The case, which pits MGM alongside several music and motion picture studios against Grokster and StreamCast Networks, is the culmination of five years of legal battles against the peer-to-peer networks that entertainment companies believe are undermining the viability of copyrights.
While Napster quickly fell to the RIAA in 2001, this has not been the case for Grokster. Unlike Napster, Grokster functions on a decentralized network, specifically FastTrack. While Napster maintained centralized indexing servers at their headquarters, the FastTrack network distributes this functionality online through “SuperNodes.”
Since Grokster cannot control these SuperNodes, two Federal courts have negated the copyright industry's claim that P2P developers are liable for copyright infringement. The only course of action left for the entertainment industry was the appeal to the United States Supreme Court.
The justices were clear that they were concerned about the effect of their ruling on the ability of technology companies to create future products like Apple Computer's iPod. However, several appeared to seek a way of holding file-swapping companies responsible for the piracy on their networks without endangering other technology companies. Allowing companies to issue products with no concern for copyright infringement would amount to "unlawful expropriation of property as a kind of start-up capital," said Justice Anthony Kennedy. "From an economic standpoint and legal standpoint, that sounds wrong."
As influential as the case is likely to be, few believe the issue will end with the Supreme Court, whose decision is expected in June. Many observers expect the losing side to take its case to Congress after the court rules.
News.com, March 29, 2005(John Borland)
http://news.com.com/Supreme+Court+takes+hard+look+at+P2P/2100-1028_3-5644861.html
Slyck News, March 28, 2005 (Thomas Mennecke)
http://www.slyck.com/news.php?story=723
Duke Law, 2004-2005
http://www.law.duke.edu/publiclaw/supremecourtonline/certgrants/2004/mgmvgro.html
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Infringement on the Net – It’s Not Just the Music
In recent times, when we think of copyright infringement on the Internet, illegal file-sharing and downloading is what comes to mind. However, websites themselves have become battlegrounds for trademark infringement disputes. From the actual name of a website, to the way it’s setup, and to the advertising it creates, websites have stirred up a lot of battles over just how much is too much in the realm of online similarity. Google.com has sued Froogles.com, charging the rival shopping search engine with trademark infringement. Filed in the Eastern District Court of New York, the 68-page complaint alleges that Froogles.com proprietor Richard Wolfe, illegally used Google's name and brand for profit. Google asked the court to shut down Froogles.com and order transfer of the domain name. The legal row goes back more than a year, when Wolfe filed a petition against approval for Google's trademark, Froogle.
In April 2005, a company called Oneupweb developed a trademark protection tool to identify advertising trademark infringements on search engines such as Google.com. The tool can keep an eye on what’s happening on the search engines, and when an infringement takes place, it takes a snapshot of the offending page, archives the data for later retrieval, and sends an e-mail alert to the trademark owner. The rights holder can use this data to take steps to halt infringements. The data can also be evidence in court if the case should get that far. The struggle for retailers to protect their trademark online, and hold trademark infringers accountable continues, with more cases due to be settled in the courts.
News.com, April 19, 2005 (Stefanie Olsen)
http://news.com.com/Google+sues+Froogles.com/2100-1030_3-5676955.html?tag=cd.top%22%22
Internet Retailer.com, April 5, 2005
http://internetretailer.com/dailyNews.asp?id=14608
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Quick Bits and Bytes
File-Sharing Case Unites Unlikely Allies
Religious and other conservative groups have not been quiet about their disapproval of some of the practices of Hollywood and the recording industry over the years, condemning issues from explicit rap lyrics to TV violence. While often on opposing sides of hot issues, many of these religious and conservative groups are now stepping up to back the entertainment industry in its most recent effort: a high-stakes battle against online file-sharing services.
There is a reason for this unlikely alliance. File-swapping services make pornography easily accessible to minors, a major concern amongst religious and conservative groups. Meanwhile, the entertainment companies blame file-sharing for declining sales and lost revenue.
"Hollywood is definitely a strange bedfellow to most of us," said Jim Backlin, vice president of legislative affairs for the Christian Coalition of America. "Our goal was to cut down child pornography and other kinds of pornography, and if for some reason we were allied with the Hollywood types this time, so be it."
On the other side, the file-sharing companies have also found unlikely allies, including libraries concerned that tighter copyright controls may stifle free speech.
Forbes.com, February 27, 2005 (Associated Press)
http://www.forbes.com/technology/feeds/ap/2005/02/27/ap1850970.html
Technology Claims to Thwart DVD Copying
A new technology from Macrovision Corp. claims to block virtually all known methods for making unauthorized copies of DVDs. The company's RipGuard DVD, launched in mid-February 2005, is designed to thwart cracking programs that get around the encryption system used in standard DVDs. Macrovision also claims a related system to be used with RipGuard can foil attempts to make analog copies of DVDs. Such copies are made by connecting a video recorder to a DVD player's video and audio output jacks, a method that previous DVD copy protection software has failed to fully prevent.
Attempts to copy-protect DVDs and CDs have often been plagued by hardware compatibility problems and have been easily thwarted using something as simple as a black marker or by holding down the "shift" key while accessing the content. DVDs fitted with the new Macrovision technology do not require new software or hardware to be played and should be compatible with nearly all existing DVD players and DVD computer drives, the company says.
RedNova News, February 17, 2005 (Alex Veiga, Associated Press Writer)
http://www.rednova.com/news/technology/128614/new_technology_claims_to_thwart_dvd_copying/index.html
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