EMUS hires former Netscape exec as lobbyist
amcity.com
San Jose/Silicon Valley Business Journal
May 10, 1999
Lobbyists singing the tunes of online
music companies
GoodNoise, MP3.com buy voice in Washington
Erik Espe Business Journal Staff Writer
Tech firms banking on the success of the controversial online
music delivery system known as "MP3" are starting to invest in
lobbying national politicians.
San Diego-based MP3.com Inc., which runs a Web site that
distributes free MP3 files, and Palo Alto-based GoodNoise
Inc., which sells MP3 files over the Web have hired lobbyists to
press the flesh in the nation's capital.
GoodNoise hired Netscape Communication Corp.'s former
global public-policy counsel Peter Harter to watch policy
decisions in Washington, D.C.
MP3.com has hired Federal Legislative Associates, a
Washington D.C.-based lobbying firm whose clients have
included the Commercial Finance Association and the San
Diego-based electronic banking firm First Virtual Holdings.
"Generally our No. 1 job for them is introducing the firm to key
members of Congress and to explain what MP3 is all about,"
said Philip Corwin, a partner with Federal Legislative
Associates. "Primarily we want to emphasize to them that piracy
is a side issue--what this is really about is artistic freedom."
MP3's popularity has been a boon to businesses in Silicon
Valley. Milpitas-based Creative Labs recently released Nomad,
a portable MP3 player and San Jose-based Diamond
Multimedia Systems Inc. manufacturers Rio, another MP3
player.
But the recording industry has condemned the online delivery
system as a haven for pirates to distribute copyrighted music
over the Web.
MP3 enables almost any PC user with the right software to
transfer tracks from a compact disc and easily distribute them
online. The files can be played on other PCs at a sound close to
CD quality.
It has given a number of unsigned music artists a way of
distributing their work.
While GoodNoise sells authorized MP3 files from such artists
as Frank Zappa, David Bowie, They Might Be Giants and
others who have embraced the format, MP3.com distributes
free files from budding artists promoting their work.
The MP3 site generates revenue through advertising.
An increasing number of companies are jumping on the MP3
bandwagon.
The leading streaming media company in the world,
Seattle-based RealNetworks Inc. launched a "RealJukebox" on
May 3, which enables people to quickly and easily turn their
CDs into MP3 files.
Mr. Corwin believes that companies jumping into the MP3
space need to keep an eye on politics in Washington, D.C. The
Recording Industry Association of American, which has
condemned MP3, is based in Washington and has lobbied
politicians for years on behalf of record companies.
"The technology is way ahead of them [the RIAA]," Mr.
Corwin said.
He added that most Washington politicians he's spoken with are
not up to date on the technology.
"Most politicians either don't know anything about it or say it's
something to do with piracy," he said. "That shows the
importance of having other people in the Capitol to tell the other
side of the story."
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