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Aleia Hollands

Mrs. Corbett

4th Period AP Literature

November 18, 2011

                        Copyright Infringement in the Recording Industry

       Technological revolutions made in the recording industry since the late 1990s aimed to

increase the growth of music and the profits of the recording labels. However, despite these new

advances, music sales decreased over two billion dollars since 2000 (Sanders 296). In an age

where technology constantly grows, it becomes easier for people to connect from all over the

world and in a matter of seconds. Thus, technology makes stealing music, known as copyright

infringement, that much easier. Technology,which intended to boost recording labels’ profits, did

quite the opposite and ultimately has become their downfall. Now labels have established a three

step process to fight the growing copyright infringement. Their goals include establishing up-to-

date copyright laws carrying out lawsuits against music file sharing networks and the individuals

who illegally download music in order to set an example for all others.

       Copyright originally intended to protect the creativity of the author or producer of a work

and also to protect the actual work itself (Jackson 194). Lawmakers assumed that if anyone could

take a work and call it his without giving credit or payment to the original creator, then there

would be no incentive for artists, authors, musicians, and other inventors to continue in their

profession. Also, anyone could take a work and alter it without the creator’s permission.

Therefore, England established the first copyright law in 1710 (Jackson 193). However,

copyright laws left the public without access to a majority of creative works; therefore, the

United States law introduced the concept of Fair Use. “Fair use allows someone to copy, without
Hollands 2


permission, portions of the author's expression in limited circumstances for purposes such as

criticism, comment, teaching, news reporting, or research” (Jackson 194). This law was

introduced after certain debates about the First Amendment of free speech and whether or not

people were allowed to quote or use piece of a work in order to research or critique a work. Fair

Use exceptions also allow teachers to use portions of copyrighted works for the purpose of

education. However, if a person uses the work for commercial or profitable means then Fair Use

does not apply (Ghosh 188). Once copyright was introduced into the United States, it expanded

as technology grew.

       As these copyright laws, specifically for music, passed into being, musicians, labels and

companies would inevitably challenge them. First, the Apollo Company began selling piano rolls

in 1908.Piano rolls allowed a piano to play music without a pianist present. This introduced the

issue of whether or not the piano rolls should be copyrighted. Initially, the Supreme Court ruled

that the rolls were not a tangible product, such as sheet music, and therefore could not be

copyrighted. However, the Copyright Act of 1909 extended protection to “mechanical

reproductions of music” (Ghosh 185). Then, the issue of cassette tapes occurred when people

could record music onto tape. Congress responded by making an amendment to the 1909

Copyright Act to include sound recordings. However, bands remained unsatisfied because fans

could record their live performances and share them. In 1994, Congress amended this as well by

extending the amendment, making it illegal to “record live performances without the permission

of the performing musicians” (Ghosh 187). These disagreements about copyright law only began

the drawn out legal battles caused by new technology.

       MP3 files created an uproar among recording labels when they emerged in 1998 as a

threat to the labels’ sales. These Moving Picture Experts Group Level 3 files, shortened to MP3
Hollands 3


files, significantly reduced the size of audio files without impairing the quality of the music.

Soon after the emergence of the condensed files, MP3 players created a way to store the digital

music files on a portable device. Not only could they hold the files, but the players could store at

least an hour of music, and the owner could exchange the music as often as he or she wished. In

1998, recording companies began to sue the makers of the MP3 players; however, they lost the

case because the files were not always obtained by illegal means (“Music and Movies”).

Musicians such as The Beastie Boys, Tom Petty and Prince decided to release their new albums

before the albums’ actual release dates when they realized how popular these files had become

among their fans. However, these artists’ record labels found out about these online releases and

asked the musicians to remove the files from the internet. Tom Petty’s label reported that “the

advance Tom Petty single was downloaded 150,000 times in the forty-eight hours that it was

available” (Fischer 848). Online digital files presented opportunities for increased piracy of

music as well as paved the way for further digital music technology.

       As radio stations became popular, debate occurred as to whether or not musicians should

get a profit from their songs playing over the radio. This debate initiated when a musician, Paul

Whiteman, recorded his music but did not wish for his music to play over the radio. In an attempt

to prevent this, he attached a notice to each of his records stating “Not Licensed for Radio

Broadcast” (Kilgore 558). When W.B.O. Broadcast aired his songs, Whiteman sued the radio

station. However, the judge ruled that Whiteman would not get paid for the use of his songs

because the station bought the record and the station simply “put that copy to its intended use”

(Kilgore 559). Then, after MP3 files were introduced, programmers created online radio

stations that could stream from a computer. These stations would either play exact songs

that the user requested or played songs that the station would recommend based on the

user’s taste in music. Record labels felt threatened by this freedom of choice by users,
Hollands 4


claiming, “If consumers could have the ability to listen to any songs they wanted to –

whenever they wanted to – for free, why would they ever bother purchasing CDs?”

(Hoffman 1521). Initially the Digital Millennium Copyright Act established one flat rate for

the interactive radio stations to pay record labels. However, this proved difficult for the

stations to pay due to their lack of profit from advertisements alone. In 2002, the Copyright

Arbitration Royalty Panel established a pay per song method which cost only $0.0014 per

song. Then, the Library of Congress rejected both of these plans and set a $0.0007 per song

royalty with a minimum payment of $500 per channel (Hoffman 1524). Royalties

successfully satisfied the recording industry, but it also caused many radio stations to shut down

due to lack of funds.

       Recording labels spent their time, money and human capital on fighting for their

copyrights. Despite all of their efforts to establish law, people find ways to illegally download

and share music. Currently, the most common problem lies in peer-to-peer file sharing networks.

Shawn Fanning initiated these popular sharing sites when he created Napster in 1999. His

network allowed users to post their favorite songs as well as search for their favorite songs and

download them immediately without paying. After a short time he had millions of downloads.

However, Fanning’s genius site attracted the attention of The Recording Industry Association of

America (RIAA). Fanning attempted to use the Fair Use defense, as well as claiming that his

network did “no irreparable harm to the labels” (Moseley 313). His attempts did not convince the

court and by 2001, the RIAA effectively shut down the ever-popular Napster. Despite the court’s

success, smaller and lesser known peer-to-peer sharing networks will always exist. Once the

RIAA eliminates one sharing website or software, someone creates another.

       After the RIAA initiated the lawsuits against the file sharing networks, they continued

their plan against infringement by carrying out lawsuits against the individuals who illegally
Hollands 5


downloaded copyrighted music. One of the more popular lawsuits out of millions involves a

college student, Whitney Harper, who downloaded 544 songs and the music industry sued her for

34 of those songs for $750 each. Considering that the law allows a recording company to sue a

copyright infringer for statutory damages ranging anywhere between $750 at the least to $30,000

per song at the most, the proposed fines seem comparatively light. Harper claimed “innocent

infringement” which means that she, as a naïve and young adult, did not realize that she

infringed upon any copyrights. Then, Harper furthered her defense by saying that the record

companies did not give a visible or proper notice of copyrights. However, the courts ultimately

decided that because of the readily available knowledge on copyrights, Harper could not rely on

the innocent infringement defense, and her sentence remained at $750 in statutory damages for

the 34 songs that she downloaded (Sanders 300). Music and recording industries relayed their

message to the public that they would not tolerate copyright infringement. However, it remains

impossible to file a lawsuit against every individual person who illegally downloads music from

the internet.

        Despite their best efforts, the RIAA and other recording labels and associations cannot

stop all of the copyright infringement when the internet provides such easy and quick access to

millions of people and millions of songs. Many people debate whether or not music should

remain copyrighted when copyright infringement seems inevitable and impossible to eradicate.

Ironically enough, music labels have proven that “the more a song is given away, the more it

sells” (Alexander 74). When musicians give music to the people for free, the band and the label

that produces them become increasingly popular. Popularity not only provides for more legally

paid for downloads but also more sales in merchandising and live performances. Fans of Napster

formed an alliance against the music industries, taking a “music belongs to the people” stance
Hollands 6


(Knight 185). Fans not only argue against paying for music, but they also argue against labels

receiving royalties from the musicians that provide the music. Five of the biggest recording

companies control over sixty percent of the music industry. (Fischer 846). Now, the “music

belongs to the people” movement carries out their attempts to revolt against the recording

industries. This movement has recruited the help of many famous musicians to help fight against

royalties through speeches and providing their own free music. However, it does not appear that

the recording industry intends to give up on their attempts to stop illegal downloading. Today,

without any truly effective way of preventing copyright infringement, one can only question

what will happen next for the music industry.

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  • 1. Aleia Hollands Mrs. Corbett 4th Period AP Literature November 18, 2011 Copyright Infringement in the Recording Industry Technological revolutions made in the recording industry since the late 1990s aimed to increase the growth of music and the profits of the recording labels. However, despite these new advances, music sales decreased over two billion dollars since 2000 (Sanders 296). In an age where technology constantly grows, it becomes easier for people to connect from all over the world and in a matter of seconds. Thus, technology makes stealing music, known as copyright infringement, that much easier. Technology,which intended to boost recording labels’ profits, did quite the opposite and ultimately has become their downfall. Now labels have established a three step process to fight the growing copyright infringement. Their goals include establishing up-to- date copyright laws carrying out lawsuits against music file sharing networks and the individuals who illegally download music in order to set an example for all others. Copyright originally intended to protect the creativity of the author or producer of a work and also to protect the actual work itself (Jackson 194). Lawmakers assumed that if anyone could take a work and call it his without giving credit or payment to the original creator, then there would be no incentive for artists, authors, musicians, and other inventors to continue in their profession. Also, anyone could take a work and alter it without the creator’s permission. Therefore, England established the first copyright law in 1710 (Jackson 193). However, copyright laws left the public without access to a majority of creative works; therefore, the United States law introduced the concept of Fair Use. “Fair use allows someone to copy, without
  • 2. Hollands 2 permission, portions of the author's expression in limited circumstances for purposes such as criticism, comment, teaching, news reporting, or research” (Jackson 194). This law was introduced after certain debates about the First Amendment of free speech and whether or not people were allowed to quote or use piece of a work in order to research or critique a work. Fair Use exceptions also allow teachers to use portions of copyrighted works for the purpose of education. However, if a person uses the work for commercial or profitable means then Fair Use does not apply (Ghosh 188). Once copyright was introduced into the United States, it expanded as technology grew. As these copyright laws, specifically for music, passed into being, musicians, labels and companies would inevitably challenge them. First, the Apollo Company began selling piano rolls in 1908.Piano rolls allowed a piano to play music without a pianist present. This introduced the issue of whether or not the piano rolls should be copyrighted. Initially, the Supreme Court ruled that the rolls were not a tangible product, such as sheet music, and therefore could not be copyrighted. However, the Copyright Act of 1909 extended protection to “mechanical reproductions of music” (Ghosh 185). Then, the issue of cassette tapes occurred when people could record music onto tape. Congress responded by making an amendment to the 1909 Copyright Act to include sound recordings. However, bands remained unsatisfied because fans could record their live performances and share them. In 1994, Congress amended this as well by extending the amendment, making it illegal to “record live performances without the permission of the performing musicians” (Ghosh 187). These disagreements about copyright law only began the drawn out legal battles caused by new technology. MP3 files created an uproar among recording labels when they emerged in 1998 as a threat to the labels’ sales. These Moving Picture Experts Group Level 3 files, shortened to MP3
  • 3. Hollands 3 files, significantly reduced the size of audio files without impairing the quality of the music. Soon after the emergence of the condensed files, MP3 players created a way to store the digital music files on a portable device. Not only could they hold the files, but the players could store at least an hour of music, and the owner could exchange the music as often as he or she wished. In 1998, recording companies began to sue the makers of the MP3 players; however, they lost the case because the files were not always obtained by illegal means (“Music and Movies”). Musicians such as The Beastie Boys, Tom Petty and Prince decided to release their new albums before the albums’ actual release dates when they realized how popular these files had become among their fans. However, these artists’ record labels found out about these online releases and asked the musicians to remove the files from the internet. Tom Petty’s label reported that “the advance Tom Petty single was downloaded 150,000 times in the forty-eight hours that it was available” (Fischer 848). Online digital files presented opportunities for increased piracy of music as well as paved the way for further digital music technology. As radio stations became popular, debate occurred as to whether or not musicians should get a profit from their songs playing over the radio. This debate initiated when a musician, Paul Whiteman, recorded his music but did not wish for his music to play over the radio. In an attempt to prevent this, he attached a notice to each of his records stating “Not Licensed for Radio Broadcast” (Kilgore 558). When W.B.O. Broadcast aired his songs, Whiteman sued the radio station. However, the judge ruled that Whiteman would not get paid for the use of his songs because the station bought the record and the station simply “put that copy to its intended use” (Kilgore 559). Then, after MP3 files were introduced, programmers created online radio stations that could stream from a computer. These stations would either play exact songs that the user requested or played songs that the station would recommend based on the user’s taste in music. Record labels felt threatened by this freedom of choice by users,
  • 4. Hollands 4 claiming, “If consumers could have the ability to listen to any songs they wanted to – whenever they wanted to – for free, why would they ever bother purchasing CDs?” (Hoffman 1521). Initially the Digital Millennium Copyright Act established one flat rate for the interactive radio stations to pay record labels. However, this proved difficult for the stations to pay due to their lack of profit from advertisements alone. In 2002, the Copyright Arbitration Royalty Panel established a pay per song method which cost only $0.0014 per song. Then, the Library of Congress rejected both of these plans and set a $0.0007 per song royalty with a minimum payment of $500 per channel (Hoffman 1524). Royalties successfully satisfied the recording industry, but it also caused many radio stations to shut down due to lack of funds. Recording labels spent their time, money and human capital on fighting for their copyrights. Despite all of their efforts to establish law, people find ways to illegally download and share music. Currently, the most common problem lies in peer-to-peer file sharing networks. Shawn Fanning initiated these popular sharing sites when he created Napster in 1999. His network allowed users to post their favorite songs as well as search for their favorite songs and download them immediately without paying. After a short time he had millions of downloads. However, Fanning’s genius site attracted the attention of The Recording Industry Association of America (RIAA). Fanning attempted to use the Fair Use defense, as well as claiming that his network did “no irreparable harm to the labels” (Moseley 313). His attempts did not convince the court and by 2001, the RIAA effectively shut down the ever-popular Napster. Despite the court’s success, smaller and lesser known peer-to-peer sharing networks will always exist. Once the RIAA eliminates one sharing website or software, someone creates another. After the RIAA initiated the lawsuits against the file sharing networks, they continued their plan against infringement by carrying out lawsuits against the individuals who illegally
  • 5. Hollands 5 downloaded copyrighted music. One of the more popular lawsuits out of millions involves a college student, Whitney Harper, who downloaded 544 songs and the music industry sued her for 34 of those songs for $750 each. Considering that the law allows a recording company to sue a copyright infringer for statutory damages ranging anywhere between $750 at the least to $30,000 per song at the most, the proposed fines seem comparatively light. Harper claimed “innocent infringement” which means that she, as a naïve and young adult, did not realize that she infringed upon any copyrights. Then, Harper furthered her defense by saying that the record companies did not give a visible or proper notice of copyrights. However, the courts ultimately decided that because of the readily available knowledge on copyrights, Harper could not rely on the innocent infringement defense, and her sentence remained at $750 in statutory damages for the 34 songs that she downloaded (Sanders 300). Music and recording industries relayed their message to the public that they would not tolerate copyright infringement. However, it remains impossible to file a lawsuit against every individual person who illegally downloads music from the internet. Despite their best efforts, the RIAA and other recording labels and associations cannot stop all of the copyright infringement when the internet provides such easy and quick access to millions of people and millions of songs. Many people debate whether or not music should remain copyrighted when copyright infringement seems inevitable and impossible to eradicate. Ironically enough, music labels have proven that “the more a song is given away, the more it sells” (Alexander 74). When musicians give music to the people for free, the band and the label that produces them become increasingly popular. Popularity not only provides for more legally paid for downloads but also more sales in merchandising and live performances. Fans of Napster formed an alliance against the music industries, taking a “music belongs to the people” stance
  • 6. Hollands 6 (Knight 185). Fans not only argue against paying for music, but they also argue against labels receiving royalties from the musicians that provide the music. Five of the biggest recording companies control over sixty percent of the music industry. (Fischer 846). Now, the “music belongs to the people” movement carries out their attempts to revolt against the recording industries. This movement has recruited the help of many famous musicians to help fight against royalties through speeches and providing their own free music. However, it does not appear that the recording industry intends to give up on their attempts to stop illegal downloading. Today, without any truly effective way of preventing copyright infringement, one can only question what will happen next for the music industry.