Money for Nothing Becomes Nothing for Money

Regular readers may have noticed that whilst I am very conservative about many things, I am somewhat progressive on the issue of digital intellectual property rights. And I practice what I preach.

For example, there are television programmes that have been scattered electromagnetically into the atmosphere for everyone with a television to enjoy for free. While the technology is there for those waves of son et lumière to go anywhere in the world, they have been limited to certain geographical regions, so they can be sold and resold and resold in different markets to make already obscenely rich people even more obscenely rich. I only use the word “obscenely” twice in the same sentence because my megre vocabulary is insufficient to appropriately modify the word rich.

The Internet has created a giant ocean of ones and zeros drifting in and out of the millions of connections within it. It has eliminated the borders and the broadcast restrictions, even if there are companies out there trying as hard as they can to claim part of these high seas as their own. Or you might say they are trying to dam the ones and zeros within their territorial waters. You might say they are trying to limit fishing in their territorial waters by trying to keep hold of the fish. But that’s the problem: you can keep boats out, but you can’t keep fish in.

The fact of the Internet Ocean is that 90% of the music fish are swimming freely. In other words, even given all of the “legal” download sites and services, 90% of music is downloaded without the express written consent of the music industry.

The British Phonographic Industry (BPI) is the face of the record industry cartel in the UK, the British equivalent of the RIAA.  They claim that file sharing has cost the industry £1.1 billion a year. What they mean is that they have identified £1.1 billion that they could have accrued and didn’t. It didn’t actually cost them anything. It didn’t cost anyone another yacht in the Med or a twelfth sprawling estate in another exotic and exclusive location. It didn’t take any money out of a tax-protected off-shore account.

The BPI have bullied the British Government and the major ISPs in this country into forcing the ISPs into sending letters to customers based on the BPIs spying. If the BPI thinks a particular IP address is uploading an illegal file, they contact the ISP, which is then obliged to send a letter to the account belonging to the IP address giving details of the alleged file-sharing incident. I got such a letter the other day.

Was it about television programmes or films or even various albums (most of which don’t even get copied to CD and end up in the recycle bin)? No, it was about a single Britney Spears track that no one in our household has ever uploaded, downloaded, or otherwise loaded. You would think with all of the billions of pounds the BPI’s member labels have made, they could afford to get the information even somewhere near correct.

Legal threats aside, in reality what has happened is that the revenue stream is concentrating more and more on live music. That is the one thing that is not copyable. But this means that musicians have to work harder and maybe make less money. Perhaps some of you will pity them for this. I don’t.

It used to be that musical acts had to invest huge sums of money in studios and technology to produce records. Now top selling CDs have been produce in bedrooms with digital recording equipment. Making records has become easier and cheaper, thus increasing the profit margins. Now these recordings are going to have to be adverts for concerts where real music will have to be played in real time for real people.

I have been saying for a long time that the developments in technology mean concepts about intellectual property law will have to be dramatically reformulated. Those who are profiting the most, those piggybacking on the actual creators of ideas, are trying to formulate new revenue streams so they can continue to make money for nothing (sound anything like the bankers who have precipitated the world economic collapse?) but music cartels will eventualy have to realise that music is only worth what people are willing to pay for it and increasingly (if you can keep increasing from 90%) they aren’t.

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