The Ethics Of Digital Music

What Is The Future Of Copyright???

Overview

• What is Digital Music?

• What is MP3?– Why is it so Important?

• What is Copyright?– Why is it so Important?

• The Big Question - Who Owns Music?

• Conclusions/Summary

What is Digital Music?

• Conventional “Physical” Format– DAT, CD, MiniDisc

• Ephemeral “Computer” Format– WAV, AIFF

• Compressed “Computer” Format– MP3, RealAudio

• Controlled “Encrypted” Format– Liquid Audio, SDMI

What is MP3?

• MPEG Layer 3 Audio Compression

• Extremely efficient compression algorithm

• The most searched-for term on the Internet

The Hellspawn of Satan Himself...

Why is MP3 So Important?

• Who Benefits?

– Consumers

– Artists

– Online Distributors

– MP3 Software Producers

Why is MP3 So Important?• Who Loses?

– CD Producers

– CD Retailers

– Record Labels

What is at Stake?

• Digital music downloading could generate U.S. revenues of $1.1 billion by 2003 (Forrester Research)

• Global recorded music revenues: $38.1 billion

$$$$$$

What is Copyright?“Protection provided to the authors of original works of authorship”

• Literarature & Drama• Musical Works• Artistic Works

PROBLEM: Very Ambiguous when applied to the digital world

Why is Copyright so Important?

• Protects creativity & innovation?

• Protects established business?

• Ethically the “Right thing to do?”

• Onerous in a digital world

• Hassles consumers

• Easy to circumvent

Copyright Ethics

• Copyright stifles technical creativity– e.g. Lycos, Napster, MP3.com

• Why do we need record labels?

• Goal: Free market for consumersbuzzword: EmpowermentEmpowerment

A World Without Copyright...

• Streamlines entire production process

• Better for the Environment

• Ease of use for consumers

• Bands can gain exposure rapidly

• What about the crap on MP3.com?

The Big QuestionWho Owns the Music?

• Copyright is so 20th Century...

• Can the RIAA (or anyone) stop MP3?

• It’s a Bandwidth Issue

• Why do we hear so little from Musicians?

• Time for a New Model - Enable Consumers!

The Artists Created it, They Should Control it...

• Many bands already run websites

• Small bands can utilize other services

• Great promotional tool

• But how will they make money?

Ethical Dilemmas

• People like having access to free music

• Why buy a $20 CD for one song?

• Crackers omnipresent

• MP3 is not used exclusively for music…

• RIAA vs. Diamond Multimedia

• RIAA vs. MP3.com

More Ethical Weirdness...

The Digital Millenium Copyright Act:

Users can circumvent security measures

"for the purpose of enabling interoperability of an independently created computer

program with other programs."

A Solution???

• Digital Music Subscription Service

• High Quality, High Speed, Inexpensive

• Unlimited Download

• Share with your friends

• Encryption?

• What happens when contract expires?

Conclusions/Summary

• Prevailing Attitudes Will Change

• Eliminate the Middleman

• Empower the Consumer!!

• The Live Music Model

• Subscription Service

• The Music “Community”