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Film theft in the UK - Future of Copyright

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aga<strong>in</strong>st hundreds <strong>of</strong> large-scale Internet users,<br />

<strong>the</strong> campaign has <strong>in</strong>cluded <strong>the</strong> dispatch <strong>of</strong><br />

millions <strong>of</strong> '<strong>in</strong>stant messages' emailed to fileswappers'<br />

computers, mass <strong>in</strong>formation<br />

campaigns <strong>in</strong> colleges and universities <strong>in</strong> over<br />

20 countries, and <strong>the</strong> launch <strong>of</strong> <strong>the</strong><br />

<strong>in</strong>ternational educational website<br />

www.pro-music.org.<br />

The IFPI also claims that <strong>the</strong> anti-piracy<br />

campaign has dented Internet piracy levels<br />

worldwide. After doubl<strong>in</strong>g to 1 billion files<br />

between 2002 and <strong>the</strong> start <strong>of</strong> 2003, <strong>the</strong><br />

number <strong>of</strong> files illegally on <strong>the</strong> Internet at any<br />

one time has fallen over <strong>the</strong> last n<strong>in</strong>e months<br />

by 20% to 800 million <strong>in</strong> January 2004.<br />

However, <strong>the</strong> organisation acknowledges that,<br />

while <strong>the</strong> overall fall <strong>in</strong> <strong>the</strong> number <strong>of</strong> files on<br />

peer-to-peer services is driven by a sharp<br />

reduction <strong>in</strong> files on <strong>the</strong> best-known FastTrack<br />

network (which hosts <strong>the</strong> Kazaa service), <strong>the</strong>re<br />

has been an <strong>in</strong>crease <strong>in</strong> <strong>the</strong> number <strong>of</strong> files on<br />

o<strong>the</strong>r peer-to-peer networks.<br />

Education and consumer<br />

awareness<br />

The music <strong>in</strong>dustry has never quite got its act<br />

toge<strong>the</strong>r <strong>in</strong> terms <strong>of</strong> educat<strong>in</strong>g <strong>the</strong> consumer –<br />

foster<strong>in</strong>g a siege mentality, rely<strong>in</strong>g on litigation<br />

to educate, choos<strong>in</strong>g to concentrate on<br />

lobby<strong>in</strong>g government.<br />

In <strong>the</strong> <strong>UK</strong>, <strong>the</strong> BPI has been carry<strong>in</strong>g out a<br />

programme <strong>of</strong> regular visits to CD<br />

manufactur<strong>in</strong>g plants, record companies and<br />

enforcement groups around <strong>the</strong> country. The<br />

organisation has also been stag<strong>in</strong>g one-<strong>of</strong>f<br />

events, such as host<strong>in</strong>g a stand at <strong>the</strong> North<br />

East Fraud Forum <strong>in</strong> March 2003 to pr<strong>of</strong>ile antipiracy<br />

activities to <strong>the</strong> audience <strong>of</strong> delegates.<br />

The organisation has also been <strong>in</strong>volved <strong>in</strong><br />

support<strong>in</strong>g cross-<strong>in</strong>dustry <strong>in</strong>itiatives, and was<br />

<strong>in</strong>strumental <strong>in</strong> ensur<strong>in</strong>g that <strong>the</strong> private<br />

member’s bill – <strong>Copyright</strong>, etc and Trade Marks<br />

(Offences and Enforcement) Act 2002 –<br />

became law <strong>in</strong> November 2002 (see Chapter 5).<br />

Elsewhere, <strong>in</strong>dividual music majors have been<br />

lobby<strong>in</strong>g <strong>of</strong> <strong>the</strong>ir own accord. For example,<br />

Ala<strong>in</strong> Levy, <strong>the</strong> CEO <strong>of</strong> EMI, has been drumm<strong>in</strong>g<br />

up support for <strong>the</strong> fight aga<strong>in</strong>st piracy <strong>in</strong><br />

Brussels for some time. It is believed that this<br />

was <strong>in</strong>strumental <strong>in</strong> gett<strong>in</strong>g <strong>the</strong> European<br />

Council to pass its anti-piracy resolution <strong>in</strong><br />

March 2003.<br />

Legitimate onl<strong>in</strong>e services<br />

As <strong>of</strong> mid 2003, <strong>the</strong>re were no more than ten<br />

legitimate onl<strong>in</strong>e music services <strong>of</strong>fer<strong>in</strong>g<br />

anyth<strong>in</strong>g resembl<strong>in</strong>g a realistic consumer<br />

proposition. Of <strong>the</strong>se, <strong>the</strong> most prom<strong>in</strong>ent<br />

have been AOL MusicNet, which costs $8.95<br />

per month and already has over 100,000<br />

subscribers, MusicMatch and RealOne<br />

Rhapsody.<br />

The music <strong>in</strong>dustry’s own direct efforts to <strong>of</strong>fer<br />

onl<strong>in</strong>e services have somewhat dried up, with<br />

<strong>the</strong> much touted Pressplay.com website now<br />

lead<strong>in</strong>g straight to <strong>the</strong> reborn legitimate<br />

Napster website. Pressplay <strong>in</strong> its orig<strong>in</strong>al form<br />

was a good example <strong>of</strong> <strong>the</strong> music <strong>in</strong>dustry<br />

gett<strong>in</strong>g <strong>the</strong> onl<strong>in</strong>e bus<strong>in</strong>ess proposition wrong.<br />

It tried to operate on a monthly subscription<br />

basis; <strong>the</strong> problem was that if you cancelled<br />

your subscription, all <strong>the</strong> files you had<br />

downloaded would cease to function and your<br />

<strong>in</strong>vestment became worthless.<br />

However, <strong>the</strong> real light at <strong>the</strong> end <strong>of</strong> <strong>the</strong> tunnel<br />

has proved to be Apple’s iTunes onl<strong>in</strong>e music<br />

service. The iTunes Music Store was launched <strong>in</strong><br />

April 2003 <strong>in</strong> <strong>the</strong> US, sell<strong>in</strong>g music files encoded<br />

us<strong>in</strong>g a proprietary format (not <strong>the</strong> widely used<br />

MP3 format) at 99 cents per track. Initially only<br />

available to Apple Mac users <strong>in</strong> <strong>the</strong> US, and<br />

subsequently extended to W<strong>in</strong>dows PC owners,<br />

iTunes was an immediate success. By <strong>the</strong> end <strong>of</strong><br />

December 2003, 25 million songs had been<br />

downloaded on <strong>the</strong> service, with downloads at<br />

<strong>the</strong> end <strong>of</strong> 2003 averag<strong>in</strong>g around 1.5 million<br />

per week – translat<strong>in</strong>g <strong>in</strong>to about 75 million<br />

downloads a year on an annualised basis. US

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