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To: Art Bechhoefer who wrote (19485)	3/7/2001 9:51:33 AM
From: Road Walker	Respond to of 60323

Art, re: The recording industry is now armed with a legal decision that gives it the upper hand in any legal action. A software designer who sells software that would allow someone to make an illegal copy almost indistinguishable in quality from the original risks getting sued in the same way that gun manufacturers are being sued for making it too easy for their products to find their way into the hands of criminals. The software is free, the distribution is over the Internet, originally from a web site, secondly from PC to PC. It costs next to nothing to set up a web site, the record companies can sue, but the people with the web sites probably don't have enough money to make it worth the cost of litigation. And once the software is on the PC's, it impossible to stop, unless you sue each individual PC owner, assuming you can find them. Also there is talk of setting up Napster type service all over the world, places where it would be difficult for the recording industry to even initiate a court action. I'm not saying this is a good thing, I'm saying it's reality. I don't know what the new business model could be for the record companies and the artists, but it sure appears they will need one. John

To: Art Bechhoefer who wrote (19485)	3/7/2001 11:14:25 AM
From: Road Walker	Read Replies (1) \| Respond to of 60323

Art, Interesting article on Napster and options: Napster Works on Way To Limit Swaps By MATTHEW FORDAHL, AP Technology Writer SAN JOSE, Calif. (AP) - Napster (news - web sites)'s future as a legal online service lies not in filters that block the free exchange of copyright songs but rather in an advanced system that can lock up tunes and set limits on their use. The lawsuit-besieged Internet music clearinghouse announced last month that it was working with a subsidiary of its record industry ally, Bertelsmann AG (news - web sites), on technology that would limit usage of files swapped on the network. Essentially, music files would not be usable outside the Napster program unless the copyright holder allows it, said Johann Butting, chief executive of Digital World Services. Other rules also could be placed on the file, including whether the song could be burned onto a CD, or transferred to an MP3 player. Limits on fidelity also could be set. ``The Napster client is where it's going to be determined what is possible and what is not possible,'' Butting said. ``The security wrap around the file is what makes sure those rules are stuck to.'' It was not clear whether Napster's secure file-sharing system could allow users to pay for more flexibility. But many other companies, including the record labels, are scrambling to create a digital rights management system that would be as convenient and allow payment. Until the pay services are widely available, Napster is attempting to stay alive by screening the file names that pass through its computers in an effort to block the exchange of pirated tunes. That process continued against the backdrop of a court ruling posted Tuesday that effectively gives the recording industry control over Napster. A federal judge gave Napster three business days to remove copyright songs once record labels provide Napster with lists of those songs, along with proof of ownership. Screening is not a long-term solution. Each file name can have dozens of variations in spelling or could be coded beyond recognition. Napster's attempt, launched Sunday night, has been less than successful at blocking top tunes of major artists. It's also not clear whether the record companies have a complete list of their songs. One solution would be to use data compiled by Gracenote, a privately held company that has been compiling an online database of song and album titles since 1995. Anyone who has loaded an audio CD into a computer and watched the track titles magically appear has used the company's CDDB system, which automatically downloads the information to Internet-connected PCs. The data were compiled over the years by users entering unmatched titles. Not only does the company have the correct spellings, but also incorrect ones. Gracenote president David Hyman would not say whether any deals are in the works with Napster or the recording industry. But the demand for such a service is obvious - especially because misspellings are not tossed out. ``We have a database of over 9 million songs, 850,000 albums and every version of every spelling of every version,'' he said. ``We have Prince spelled 80 ways and Britney Spears spelled 30 different ways.'' Another strategy being used by Napster to police its users has been to ban those who are caught and identified by copyright holders while swapping pirated songs. Such tactics don't earn a dime for any of the companies involved. For a membership service to work, a security system must be nearly invisible to the user and not treat people like criminals, said Talal Shamoon, senior vice president of media at InterTrust Technologies. ``There will be no economy around music if people like Napster are going take a stick and apply it to every user around there,'' he said. ``It's really about creating a framework that brings people in. ``They've done it, and they should capitalize on the gravitational pull of the current system to turn those users into paying members of the community rather than freak everyone out with police tactics.'' InterTrust, which works with Bertelsmann and other companies on digital protection projects, takes a so-called untethered approach to rights management, meaning users need not be connected to a network in order to unlock downloaded music. Software on their computers would handle unscrambling content and payments. If the record label made the music available for free, it could gather information on how often it is played. Napster also could institute a technology called fingerprinting. Cantametrix, for instance, has introduced a system that scans the musical characteristics of a song. That information could then be compared to a database of allowable music. ``We've managed to figure out a way of extracting the real juice out of a song - the things you and I use to recognize one song over another,'' said Max Wells, Cantametrix's chief technology officer and co-founder. The software, still in beta release, is so sensitive that it can identify individual songs recorded live from different Pearl Jam concerts, he said. Napster has not expressed interest, he said. The music industry also must be careful in how far it pushes Napster toward either file blocking or implementing digital rights management. Its more than 50 million users could easily take their swapping elsewhere. Since Napster's introduction, a variety of copycat programs and new technologies have emerged - some, such as Gnutella (news - web sites), would be very difficult for the music industry to shut down because of their decentralized nature. ``The record labels would be well served to proceed judiciously in demanding that songs be taken off Napster,'' said Eric Scheirer, an analyst with Forrester Research. ``Hamstringing Napster risks losing control of Napster users.''