Filesharing - Legal Aspects - Industries argument

Contents 1 Music file sharing- The Music Industries' Argument 1.1 File sharing and sales 1.2 File sharing and the artist 1.3 File sharing and legal action 2 References:

Music file sharing- The Music Industries' Argument

• For the opposing argument of the users perspective see the user's view

The music industry and major records labels have been opposed to the development and popularity of the Internet being used as a music trade-ground and have often very publicly denounced the file sharing activity by raising actions on not only web site owners but also individual users.

File sharing and sales

Music trade associations such as the RIAA (USA) and ARIA (Australia) claim that one lost sale has a financial ripple effect, when consumers buy or trade music from sources other than legitimate labels the revenue slump results in labels being less willing to sign new and innovative acts, eventually reducing the innovation and variety music lovers crave (Wicknick. 2003).

Arguments raised by the RIAA opposing peer-to-peer file sharing include:

• "Analysts report that just one of the many peer-to-peer systems in operation is responsible for over 1.8 billion unauthorized downloads per month".
• "Sales of blank CD-R discs have…grown nearly 2 ½ times in the last two years…if just half the blank discs sold in 2001 were used to copy music, the number of burned CDs worldwide is about the same as the number of CDs sold at retail."
• "Music sales are already suffering from the impact…in the United States, sales decreased by more than 10% in 2001."
• "In a recent survey of music consumers, 23%…said they are not buying more music because they are downloading or copying their music for free."

(http://www.riaa.com . Accessed October 15, 2005).

These arguments have been echoed by the Australian Music association, ARIA who have also recognized that Internet file-sharing and CD burning have had a negative impact on Australian sales of recorded music (Aria, 2005). Data listed in the ARIA website includes:

• Around 3.6 million Australians illegally burnt a music CD in the 6 month period prior to the research.
• Around 3.4 million Australians illegally downloaded music files via file sharing services (1.8 million of these have used file sharing services in the one month period prior to the research).
• Illegitimate channels account for 10.7% of all music acquired by the general population:
• Over 50% of file sharers then burn their music files to CD or transfer to MP3 player
• Among file sharers, there is a net decrease of 12% in CD purchasing which they identify as being as a direct result of file sharing.

(ARIA, 2005).

The record industry is not the only party to be affected by Internet music trading. The creation of ‘authorised’ downloading sites such as / iTunes, although helping the record industry regain some of the projected revenue sales, have had a detrimental affect on traditional retail outlets. Sales of music in music shops have dropped as many users find shopping online easier and the ease and more convenient than traditional means (Wicknick. 2003).

File sharing and the artist

Record sales dictate the activity of the music industry, this activity not only affects the label, but has a direct impact on the artist. Sales from an artist’s current album, reflect the label’s involvement with subsequent albums. An album’s disappointing sales may in turn reduce sponsorship and tour support money (preventing the fans from seeing their favourite artist on tour) and in effect, could lose the artist income from a tour that never happened (Wicknick. 2003).

The lack of sales would affect non-writing artists particularly hard as they also lose the royalties from creative copyright.

File sharing and legal action

With the aim of protecting their business interests major labels have taken to launching legal action against persons found violating copyright and trading music. Some of the most publicized cases in the US include a twelve year old being sued been sued for downloading content online and an 80 year-old grandmother being sued for his computer's activity, despite the fact that his grandchildren were actually doing the file-sharing (Wicknick. 2003). The RIAA justify the recent legal actions raised over Internet distribution of music, stating they are acting on behalf of their industry members who are suffering detrimental losses to profit and careers. They state the legal actions are acting to protect the artist/musician who have had their copyright infringed without consent, not solely to punish Internet users (Wikipedia. 2005).

References:

• ARIA. 2005. Australian Record Sales - 2004 Full Year Results. http://www.aria.com.au/pages/AustralianRecordSales2004FullYearResults.htm. Accessed October 15, 2005.
• ARIA. 2005. Impact Of Internet Music File Sharing & CD Burning. http://www.aria.com.au/pages/CurrentIssueInternetMusicFileSharingCDBurning.htm. Accessed Obtober 15,2005.
• ARIA. 2005. Internet File Sharing - Separating Myth from Reality. http://www.aria.com.au/pages/InternetFileSharing-TheMythsExplained.htm. Accessed October 15. 2005.
• Ian. J. 2003. The Internet Debarcle - An alternative view. http://www.janisian.com/article-internet_debacle.html. Accessed October 15, 2005.
• Lessig. L. 2005. Copyright Issues, Copying and MP3 File-Sharing. http://wwwpub.utdallas.edu/~liebowit/intprop/main.htm#filesharing. Accessed October 15, 2005.
• Wikipedia. 2005. Recording Industry Association of America. http://en.wikipedia.org/wiki/Recording_Industry_Association_of_America#File-sharing_controversy. Accessed October 15, 2005.
• Wicknik. http://www.musicbizadvice.com/RIAA_Music_Downloading_Controversy.htm. 2004. The RIAA Music Downloading Controversy: Both Sides of the Record. Accessed October 15, 2005.

Gavin Mathieson 07:21, 21 Oct 2005 (EST)