Music Companies Preparing Lawsuit Against Yahoo China
On July 4, 2006, a group of major music companies announced its plans to sue Yahoo China over copyright infringement. Yahoo China is accused of linking to websites that offer pirated music.
IFPI says Yahoo China links to outside sites with unlicensed MP3 downloads of hundreds of songs. Yahoo China is operated by Alibaba.com Corp., which is 40% owned by U.S.-based Yahoo Inc. It is one of China's most popular search engines, along with Baidu.com. IFPI is expected to file its lawsuit this summer, representing more than 1,400 recording companies in 73 countries, including major U.S., European and Asian labels. IFPI has not disclosed how much money the lawsuit would ask for in damages.
“Yahoo China has been blatantly infringing our members' rights,” said John Kennedy of IFPI. “We are taking the preliminary steps required by Chinese law for filing a lawsuit.” According to Kennedy, IFPI will also request a court order to stop copyright infringement on the site.
China is one of the world's biggest sources of unlicensed copies of music, movies and software. Under recent foreign pressure, the Chinese government has been stepping up its enforcement of pirated material. These increased efforts are also part of a desperate attempt to protect China's own entertainment industries which claim heavy losses from piracy.
In related news, Yahoo China has been recently defending itself against criticism by human rights activists for cooperating with the communist government's efforts to censor the Internet. The company has provided the government with information about its e-mail users that was allegedly used to convict at least three political activists on subversion charges.
ABC News, July 4, 2006 (Joe McDonald)
http://abcnews.go.com/Technology/wireStory?id=2151359
IFPI.org, July 4, 2006
Read the press release: http://www.ifpi.org/site-content/press/20060704.html
Trade Commission to Investigate Apple iPod Infringement
On June 14, 2006, the International Trade Commission launched a probe into whether Apple Computer Inc.’s popular iPod digital music player infringes on a Creative Technology Ltd. Patent.
The investigation is based on a complaint filed by Creative Labs, Inc. of Milpitas, CA, and Creative Technology Ltd. of Singapore on May 15, 2006. The complaint alleged violations of Section 337 of the Tariff Act of 1930, alleging Apple imported into the United States and sold iPod devices that infringe on Creative’s “Zen” patent, which covers the user interface in its Nomad and Zen portable digital media players.
The case has been referred to Administrative Law Judge Paul Luckern, who will hold hearings and make an initial determination as to whether a violation was committed. Creative has also requested that the International Trade Commission issue permanent exclusion and cease and desist orders against Apple. The commission is expected to issue a ruling by September 2007.
Creative.com, June 14, 2006
Read the Press Release: http://www.creative.com/press/releases/welcome.asp?pid=12551
MSNBC News, June 14, 2006 (Reuters)
http://www.msnbc.msn.com/id/13314892/
U.S. International Trade Commission, May 15, 2006
Read Creative's filing: http://edisweb.usitc.gov/edismirror/337-573/Violation/254079/287737/bba/754074.pdf
Publishers File Suit Against Digital Services
On May 16, 2006, a small group of independent music publishers filed a class action lawsuit against major online music services for failing to secure licenses to sell downloads.
The copyright infringement suit, filed in Federal District Court in Los Angeles, names as defendants Apple Computer, AOL Music Now, Buy.com, Microsoft, Napster, RealNetworks Digital Music of California, Record Town, Sony Connect, Virgin Entertainment Group, Wal-Mart and Yahoo!.
The music publishers group are represented by attorneys Neville Johnson, Brian Rishwain, James Ryan and Nicholas Kurtz with the lawfirm of Johnson & Rishwain in Beverly Hills, California.
MusicFreedom.com, May 16, 2006 (Susan Butler)
http://www.musicfreedom.com/feedback/view/?id=46107e23a5c8544be3f2909605b781aa84
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U.S. to World: Knock it Off
An alarming increase in the number of lower-priced, lower-quality knock-offs of American products have U.S. lawmakers, government officials and businesses searching for a way to control the serious international counterfeit problem. All parties agree that stopping the theft of American brands abroad would save companies billions of dollars.
China is a major culprit, U.S. officials say, accounting for nearly 70% of all pirated products seized at the U.S. border last year - more than 10 times greater than any other American trading partner. China is thought to be responsible for about $9 billion of the $12 billion in estimated losses that that industry loses annually to counterfeit product. Russia is also a problem, with American business groups urging stronger pledges from Moscow to protect intellectual property before being allowed entry into the World Trade Organization (WTO).
American Businesses want lawmakers to take a harder line on enforcement of existing copyright protection laws. The U.S. government continues to threaten China and other notorious knock-off nations with punitive action in the World Trade Organization if progress is not seen.
Meanwhile, rampant theft of copyrighted American products continues.
Ocala.com, July 2, 2006 (Foster Klug)
http://www.ocala.com/apps/pbcs.dll/article?AID=/20060702/BUSINESS/207020347/1009/NEWS
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Quick Bits and Bytes
XP Pirate Checks Dropped
Microsoft has decided to modify some of its plans to track down pirated copies of Windows XP, removing elements of its Windows Genuine Advantage Notification (WGA) after they ignited a firestorm of controversy. The stealth application, introduced in April 2006, was designed to check in with Microsoft headquarters every time a user’s computer was booted to confirm that the operating system was genuine.
If the software was pirated it triggered a series of warnings. Now Microsoft has reacted to user anger and comparisons to spyware by switching off the boot-up check. The company has retained another tool, WGA Validation, which checks back periodically with Microsoft headquarters. The WGA program is part of a wider attempt by Microsoft to slowly but surely crack down on pirated operating systems and other software. Ultimately, even additional hardware may be locked out if a user's operating system is proven to be pirated.
Australian IT, July 4, 2006 (Simon Hayes)
http://australianit.news.com.au/articles/0,7204,19670853%5E15306%5E%5Enbv%5E,00.html
BSA Cracks Down on Pirated Software While Raising Awareness
When it comes to software, unsuspecting consumers are often tricked into purchasing pirated products online. In the big picture, the result is a substantial loss in revenue to the true developers of the software and can lead to consumers obtaining less desirable software than promised.
In 2005, an estimated 21% of software in the United States was unlicensed, resulting in nearly $7 billion in lost revenue. During the same year, the Business Software Alliance (BSA) shut down more than 16,000 online auctions, e.g. eBay, that were believed to be offering pirated and counterfeit products.
In an effort to combat the online sale of pirated software, the BSA has also gone one step further by launching an Internet fraud website. The purpose of the website is to raise awareness and to provide education regarding online fraud. It also seeks to have individuals provide their own accounts of how they were lured into purchasing pirated software online.
As part of its education efforts, the BSA offers ten points of advice for consumers that can help them to avoid being victims of online pirates. Some of these tips include ”read the label,” “do your homework,” and “be careful when crossing the border” when dealing with software sellers in other countries.
While the BSA knows there is no complete cure to end the sale of pirated software online, it hopes that the educational tips, valuable links, and information gathering tools are a step in the right direction to educate the public about piracy.
FindLaw.com, June 20, 2006 (Eric Sinrod)
http://practice.findlaw.com/tooltalk-062006.html
Visit the BSA’s Internet fraud site: http://www.bsacybersafety.com/fraud
RIAA Identifies 12 Piracy “Hot Spot” Cities - Latin Music Hit Hardest
The copying and trafficking of pirated music has become an increasingly sophisticated illegal activity. These activities often involve multi-state criminal operations that distribute illegal product designed to resemble authentic CDs and replace legitimate sales.
The Recording Industry Association of America (RIAA) for the first time has identified 12 priority cities as part of its nationwide physical goods piracy assessment. These cities – Atlanta, Austin, Chicago, Dallas, Houston, Los Angeles, Miami, New York, Philadelphia, Providence, San Diego, and San Francisco – are all “hot spots” of music theft, with significant piracy problems from the manufacturer level all the way down to the point of retail sale. The RIAA has committed to step up law enforcement training and deploy additional investigative resources in all of these cities in the coming year.
According to the RIAA, Urban and Latin music genres are typically the hardest hit by physical goods piracy and accounted for nearly 95% of music seized last year. Urban music – representing 54% of all pirate product seized – is almost exclusively found in a lower-quality format burned to blank CD discs with packaging far less likely to be confused with legitimate products. A large portion of the urban piracy market consists of compilations of music from various artists and multiple albums. “Rampant piracy continues to take a disproportionate toll on the small yet thriving culture of Latin music,” said Rafael Fernandez, Jr., Vice President of Latin Music for the RIAA. “Latin artists with high, homegrown popularity often battle tremendous piracy right in their local communities. Our ability to invest in the next generation of Latin artists is directly linked to enforcement and a continued focus on the piracy plaguing this genre.”
RIAA.com, May 3, 2006
Read the press release: http://www.riaa.com/news/newsletter/050306.asp
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