COPYRIGHT CONUNDRUM

June 2003
		Is downloading copyrighted music tantamount to stealing? Lawrence Lessig, an expert on Internet law from Stanford University's Law School, and Matt Oppenheim, senior vice president of business and legal affairs for the Recording Industry Association of America, answer your questions about this heated debate.

Online NewsHour Special Report: Copyrighting in the Digital Age Forum Introduction If I can go to my local library and check out and copy a CD for free, why can't I copy a digital CD from an online friend? Given that distributing a large number of Xerox copies of a book without proper authorization is illegal, why would P2P be any different? Please explain how the DMCA will or will not impede further technological innovation and scientific research of new media devices? And, does this law violate my fair use rights as a consumer? Are the RIAA's "cease-and-desist" notices to alleged Internet pirates a violation of my personal property rights? How do musicians benefit from the RIAA's actions against alleged Internet 'pirates'? Would music companies consider developing an online service similar to that of Apple's iTunes or develop their own P2P networks? Does the U.S. Constitution rely on patent and copyright laws as way to advance the arts and sciences, or to protect business interests? Is it illegal to download the MP3 version of a song that I have already purchased? Would outlawing anti-copyright devices in theory extend copyright terms for eternity?

Andrew Chaplin from Buffalo, N.Y. asks: I believe the main reason for the mass music swapping on P2P [peer-to-peer] networks is the lack of a legal alternative. Would the record labels and music companies consider doing what Apple has done and develop their own P2P networks? If they won't, is it because it would be too difficult to compensate the artists? If this is true, how are artists compensated for every song played on the radio? Are there any studies showing that people tend to buy more CDs when people they get the chance to sample a large variety of music? Finally, it seems like radio stations (and MTV) play the same music constantly, so maybe the Internet is a better medium to disseminate a wide variety of music - which could attract much larger audience and more consumers for the recording industry. How will (or why won't) the recording industry update their business model to meet the demands of consumers who prefer digital media (and only use MP3 players)? Lawrence Lessig from Stanford Law School responds: Apple's experiment is a hopeful sign, but it will only be effective if independent labels are allowed compete directly with the major labels. When some are able to offer songs at 15 cents a copy to compete with songs offered at 99 cents a copy, then we will have the kind of competition that could explode the Internet as a medium for distribution. There's no real difficulty in compensating artists -- to the extent the present contracts require compensation. So that shouldn't hinder the spread of online content. And yes, there are lots of studies that show that freer distribution of content increases people's demand for content. So why don't we have more content available online? In my view the real reason is that the relatively concentrated content industry is not eager to welcome a competitive market for the distribution and production of content. No competitor likes competition. So it is completely understandable that they would resist technologies that increase competition. Matt Oppenheim from the Recording Industry Association of America responds: Selling music online is something that all of the record companies are very excited about. Very rarely does an industry suddenly find as large a new market for distributing their product as the record companies are finding online. We get it, and record companies have been trying for at least three years to sell music online. Some of the ventures and business models have been more successful than others. The Apple iTunes Store is one of the most recent efforts by record companies to license their music to online distributors. But, don't forget, there are many other legitimate outlets for music online, including companies like: PressPlay, Rhapsody, Listen, E Music, Streamwaves, FullAudio and RioPort, among others. The record companies have been licensing their music for online distribution in a variety of different formats, including everything from subscription models, streaming models, or a-la-carte download models. I think that consumers are going to want their music online in a variety of formats and the record companies need (and desperately want) to find a way of satisfying those demands. Personally, I agree with your comment about radio stations -- and I think that most record companies probably do too. We would love to have more variety on the radio. If the legitimate online sources can expose consumers to a wider variety of music, that is all the better for music lovers.