What is Piracy? Jean-Philippe Vergne at TEDxWesternU – YouTube.

A second important type of evidence to which the antitrust authorities look in order to gain insight into how the merger will affect future conduct in the sector is to examine past behavior, particularly “industry participants’ behavior in tracking and responding to price changed by some or all rivals”DOJ/FTC, 2010:11.  Here the record is particularly troubling.  The leading firms in the sector have engaged in a repeated pattern of anti-consumer and anticompetitive behavior.  In the mid-1990s, the major record labels engaged in two practices that imposed severe harm on consumers and competition.  They eliminated the sale of singles, even though the CD was well-suited for the sale of singles.  They adopted a price fixing scheme to keep album prices high, even though the new compact disc CD format dramatically lowered their costs and discounters had lowered prices.  In short, they restricted output and raised prices, forcing consumers to unnecessarily purchase hundreds of millions of overpriced CDs to get the music that they wanted.  An antitrust consent decree ended price fixing FTC: 2000 and digital distribution made the sale of singles a compelling alternative. Nestor, 2012  1.  

via The Role of Antitrust in Protecting Competition, Innovation, and Consumers as the Digital Revolution Matures: The Case against the Universal-EMI Merger and E-Book Price Fixing | Public Knowledge.

As a result, a steady stream of new movies is constantly nudging incumbents to make way at theatres. That makes the first week the biggest contributor to box-office collections. With the box office skewed thus, movies reach television as early as four weeks of hitting theatres. In other words, producers have obliterated the business model of their once formidable enemies.

via Bollywood no longer talks of piracy; but ignoring dangers of online can be costly – Page3 – The Economic Times.

"With the announcement of Verizon’s "six strikes plan" for movie pirates (which includes reporting users to the RIAA and MPAA), and content companies continuing to sue users en masse for peer-to-peer downloads, I think it’s inevitable that we’ll see the rise of p2p software that proxifies your downloads through other users. In this model, you would not only download content from other users, but you also use other users’ machines as anonymizing proxies for the downloads, which would make it impossible for third parties to identify the source or destination of the file transfer. This would hopefully put an end to the era of movie studios subpoenaing ISPs for the identities of end users and taking those users to court."

via How Proxied Torrents Could End ISP Subpoenas – Slashdot.

In May of this year, ClarityRay reported that the overall rate of ad blocking by users was 9.26% in the U.S. and Europe. The rate ranged from 6.11% for business and finance sites to 15.58% for news sites and 17.79% for tech sites. For some sites, ad blocking reached 50%. Ad blocking is highest in Europe, where Austria is tops with a 22.5% ad blocking rate. The U.S. is slightly below average at 8.72%. With 1% or less are Iran, Guyana, Kuwait, Myanmar and Qatar.

via The Future of Ad Blockers | ZEDO, Inc..

The Government of Antigua is planning to launch a website selling movies, music and software, without paying U.S. copyright holders. The Caribbean island is taking the unprecedented step because the United States refuses to lift a trade “blockade” preventing the island from offering Internet gambling services, despite several WTO decisions in Antigua’s favor. The country now hopes to recoup some of the lost income through a WTO approved “warez” site.

Antigua and Barbuda is a small country in the Caribbean that for years had a flourishing gambling industry.

A few years ago 5% of all Antiguans worked at gambling related companies. However, when the U.S. prevented the island from accessing their market the industry collapsed.

“What was once a multi-billion dollar industry in our country, employing almost 5% of our population has now shrunk to virtually nothing,” Antigua’s High Commissioner to London, Carl Roberts, said previously.

Hoping to rebuild the gambling business Antigua filed a dispute at the World Trade Organization (WTO), which they won.

In 2005 the WTO ruled that the US refusal to let Antiguan gambling companies access their market violated free-trade, as domestic companies were allowed to operate freely. In 2007 the WTO went a step further and granted Antigua the right to suspend U.S. copyrights up to $21 million annually.

TorrentFreak is informed by a source close to Antigua’s Government that the country now plans to capitalize on this option. The authorities want to launch a website selling U.S. media to customers worldwide, without compensating the makers.

The plan has been in the works for several months already and Antigua is ready to proceed once they have informed the WTO about their plan. Initially the island put the topic on the WTO meeting last month, but the U.S. blocked it from being discussed by arguing that the request was “untimely.”

This month Antigua will try again, and if they succeed their media hub is expected to launch soon after.

Antigua’s attorney Mark Mendel told TorrentFreak that he can’t reveal any details on the plans. However, he emphasized that the term “piracy” doesn’t apply here as the WTO has granted Antigua the right to suspend U.S. copyrights.

“There is no body in the world that can stop us from doing this, as we already have approval from the international governing body WTO,” Mendel told us.

TorrentFreak is in the process of obtaining details of the content to be offered and the prices to be charged. One option would be to ask users for $5 a month in return for unlimited access to U.S. media.

As predicted, the suggestion to suspend U.S. copyrights is already meeting resistance from United States authorities.

“If Antigua actually proceeds with a plan for its government to authorize the theft of intellectual property, it would only serve to hurt Antigua’s own interests,” the U.S warned in a letter to the WTO last month.

According to the letter Antigua will ruin their chances of getting a settlement should they approve a site that sels U.S. copyrighted goods without compensating the makers.

“Government-authorized piracy would undermine chances for a settlement that would provide real benefits to Antigua. It also would serve as a major impediment to foreign investment in the Antiguan economy, particularly in high-tech industries,” the U.S. added.

Antigua doesn’t appear to be impressed much by these threats and is continuing with its plan.

If the Antiguan media portal indeed launches, it will make headlines all across the world, which may result in the site becoming one of the larger authorized suppliers of U.S. media on the Internet.

via Antigua Government Set to Launch “Pirate” Website To Punish United States | TorrentFreak.

The Financial Times editor, Lionel Barber, has announced plans to move the title to a digital-first strategy in a move he described as a "big cultural shift" for the business daily, and cut 35 jobs.

Barber said the FT will make a net headcount reduction of 25 – after hiring 10 journalists for digital roles – in an effort to save £1.6m this year as part of the strategy, outlined to staff in a memo on Monday, seen by MediaGuardian. He added that the FT needed to be "reshaped for the digital age".

via Financial Times editor announces digital-first strategy | Media | guardian.co.uk.

Excellent study on the Dutch file-sharing scene.

highlights:
About one in five people who download from illegal sources had in the past year bought a CD or LP that they had previously downloaded from an illegal source. The same was found for DVDs, Blurays and for printed books. The opposite – downloading a book from an illegal source that had been previously purchased in print – is also very common. This shows that for a substantial group of
consumers printed books and e-books are complementary.

People who download from an illegal source are more frequently also consumers from legal sources, and they are more likely go to concerts and the cinema and to purchase derived products Respondents who had downloaded music, films, series, games and books from illegal sources in the past year were more likely to use legal channels as well. Only in the case of music purchased on CDs or LPs, however, no difference is observed between those who had on occasion downloaded from an illegal source in the past year and people who had never done so. The differences are particularly marked in the case of paid-for downloading and streaming from a legal source: respondents who have never downloaded from an illegal source are also little inclined to pay for online content. The survey also showed that people who had, on occasion, downloaded from an illegal source in the past year bought more music and film merchandise and went to concerts or the cinema more often.

The survey shows that roughly one third to half of the respondents would not be interested in the latest download from an illegal source if it would not be available for free. The rest have an average maximum willingness to pay that is close to the normal selling price. Similarly, about one third of all book readers are interested in and willing to pay to borrow e-books from a library or bookshop, there being a slight preference for libraries and for a flat rate per year rather than a price per title borrowed.

http://www.ivir.nl/publications/poort/Filesharing_2012.pdf’

“As for my incarceration. Was it worth it? NO.”“Nothing is worth losing your freedom, would I do it again … hmmm I don’t know. I learned so much from it. Without it I wouldn’t have learned HTML and PHP. Both of which I use on the website I made for the Robotics teams I used to Mentor. They probably won’t want a felon to Mentor the kids.”

via IMAGiNE BitTorrent Group Sysop Speaks Out as He Heads to Prison | TorrentFreak.

Average revenue streams

For the major record labels the above pie chart would look quite different, as they mostly rely on revenue from music sales. This also explains their strong views against unauthorized file-sharing.

via Music Sales Are Just 6% of Average Musician’s Income | TorrentFreak.

Why Winning A $7,000 Piracy Lawsuit Could Be The Worst News Ever For Book Publishers

John Paul Titlow posted 10 hours ago

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Earlier this week, the book publishing industry hit a milestone. For the first time ever, a publisher successfully sued consumers for pirating books via BitTorrent. As a result of the lawsuit, a pair of New York residents will pay $7,000 in damages to John Wiley and Sons, the company that puts out the “For Dummies” series of instructional books.

Sound familiar? With this litigation, Wiley borrowed a page from the playbook of the music industry, which became notorious a few years back for suing people for illegally sharing songs. The Recording Industry Association of America (RIAA) eventually backed down from some of its most aggressive litigation after it became clear the strategy was doing little more than angering the most avid, dedicated music fans. Despite the epic failure of the RIAA’s approach, worried book publishers are now beginning to think lawsuits can help them slow the bleeding of a business that is – like the music industry before it – being radically upended by digital technology. Let’s hope this small victory for book publishers doesn’t send the industry on the same disastrous path taken by the music labels.

via Why Winning A $7,000 Piracy Lawsuit Could Be The Worst News Ever For Book Publishers.

For another 10 years, Universal Pictures content will not be seen on Netflix.

Universal inked a deal with HBO on Monday that gives HBO exclusive rights to all Universal films for another decade. This is an extension of a previous exclusive agreement and means, essentially, that rival services like Starz and Netflix won’t be getting ahold of Universal’s movies anytime soon.

The extension is likely a reaction to Netflix’s agreement with Walt Disney pictures for exclusive access to Disney animated features and films until 2016. But HBO may not be able to compete on the same level as Netflix. HBO was called “the closest thing Netflix has to a direct competitor” by a Forbes contributor on Monday, but close to Netflix it is not.

via HBO Signs Deal With Universal, Continues To Make Life Difficult For Netflix, Consumers.

The beauty of P2P and BitTorrent is that it’s a distributed system. Indeed, as far as sites are concerned bandwidth between users (and of course content) are both available for free and running in basic mode requires only a few dollars a month on top to pay for a server. Trading in the big gas guzzler for a something a little more frugal should be a survival option.

Of course, in many cases this could potentially mean file-sharing backing up in sophistication to 2004, to what may as well be the stone age to many of today’s younger enthusiasts. That said, ask anyone who was around at the time if it was so bad. Yes, at times Suprnova required 30 refreshes until a page actually loaded and yes, initial seeders uploaded at a snail’s pace, but the scene was buzzing and people were having fun. And if it’s not about having fun anymore, something has gone wrong along the way.

Maybe a fresh start and a resurgence of some old fashioned non-monetary gain values is what is needed. The money can’t be targeted if there isn’t any.

via Bombing BitTorrent and File-Sharing Websites Back to the Stone Age | TorrentFreak.

A group of publishers (Oxford and Cambridge University Press and Francis & Taylor) have sued Delhi University & its agent, Rameshwari Photocopy Service for compiling short extracts from different textbooks into a digest for students to use as part of their study (commonly referred to as “course packs”).

via Merry Copyright to you – A jingle for the Oxford v. Rameshwari Case « Kafila.

Star architect Zaha Hadid is currently building several projects across China. One of them, however, is being constructed twice. Pirates are the process of copying one of her provocative designs, and the race is on to see who can finish first.

via Pirated Copy of Design by Star Architect Hadid Being Built in China – SPIEGEL ONLINE.

How 4 Microsoft engineers proved that the “darknet” would defeat DRM | Ars Technica.

Taunts aside, Tankafetast’s operators appear to be trying to raise the profile of the site. They have launched a clothing range, consisting mainly of t-shirts carrying a range of pro-filesharing slogans such as Keep Calm and Download and Support Your Local Uploader, plus a few with defiant messages on Tankafetast’s return.In addition, on Saturday the site’s operators announced that in celebration of the site’s return they would be hiring three cinemas in Malmö, Gothenburg and Stockholm and giving away tickets to fans of the site. The first viewing has been announced as taking place this Thursday for the premiere of the new Bond movie, Skyfall.What is interesting to observe here is that when it comes to file-sharing the Swedes are very defiant indeed, even in the face of adversaries such as the government and police. Whether the site will be able to back up its defiance with long-term uptime remains to be seen, but even that seems to be more likely than their aim this week of giving away at least hundred of their cinema tickets to girls.

via Raided PRQ Torrent Site is Back and Hiring Cinemas To Celebrate | TorrentFreak.

Textbook Publisher Pearson Takes Down 1.5 Million Teacher And Student Blogs With A Single DMCA Notice | Techdirt.

The Congressional International Anti-Piracy Caucus has just released its 2012 International Piracy Watch List. In addition to countries such as China, Russia and Ukraine, this year Italy and Switzerland make fresh appearances in the list. Both countries are accused of not doing enough to combat online infringement with the latter allegedly proving itself as a “magnet for rogue sites.”

via New Anti-Piracy Watchlist Zooms In On File-Sharing Tolerant Countries | TorrentFreak.

Though his recent statements are unlikely to shock the many young music fans who grew up downloading albums and songs illegally, many were surprised when Neil Young said he didnt really mind piracy.”It doesnt affect me because I look at the internet as the new radio,” Young said in January. “I look at the radio as gone … Piracy is the new radio. Thats how music gets around … Thats the radio. If you really want to hear it, lets make it available, let them hear it, let them hear the 95 percent of it.”

via Neil Young: Piracy Is The New Radio, Way To Get Your Music Heard.