14 November 2006, 13:02
Music industry fails to explain how the piracy losses are calculated
A study by the Australian Institute of Criminology revealed that software and music industries couldn’t explain how they calculated piracy losses, even though this data was used for lobbying efforts and in court cases (The Australian reports).
According to The Australian, the Music Industry Piracy Investigations (MIPI) – a body responsible for “investigative and intellectual property rights enforcement related services to the Australian music industry” did not know how piracy estimates were calculated as data it collected was processed by the IFPI in London. The MIPI manager commented that: "The reason … [she] wasn't personally aware of how they are prepared is because they are compiled by the IFPI… They have a group that has been doing this for some time."
Also the report noted that often the following misleading assumption is used to estimate piracy losses: a person who acquired pirate goods would otherwise have paid full price for the legal product. Moreover, unverified extrapolations were used by lobbyists to present the problem to the government.
Finally the report suggests that if these statistics are not thoroughly explained by the purveyors they should be withdrawn.
This study is a draft so far and the institute plans to check it further (after the criticism voiced by the industry) before it is handed over to the Australian government as “senior researchers disagreed with its conclusions”.
Piracy stats don't add up, The Australian
New music 'piracy' statistics, p2pnet
Piracy losses fabricated - Aussie study, The Register
Australian Agency Questions Piracy Damage Valuations, Digital Music News
By the way...
USA's market for illicit goods is 20 times bigger that Russia's, 334 Billion vs. 16 Billion.
(Havocscope - an independent online global index of illicit markets)
And some more news...
"Russia is ... proceeding with a rewriting of its copyright and patent law, and that has drawn criticism from U.S. manufacturers, drug companies and recording companies. The U.S. trade office said those [WTO] issues remain unsolved.
The [WTO] agreement sets the stage for further progress with Russia on intellectual property rights issues through the next phase of international WTO negotiations, the trade office said.
``From here on, Russia's deeds -- rather than its words -- are the only thing that matters,'' said Mitch Bainwol, chairman of the Recording Industry Association of America." Bloomberg
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Comments 21
1. by Joseph, 14 November 2006, 20:40
Check this out. Interesting editorial.
http://madmadmedia.blogspot.com/2006/11/what-is-real-cost-of-internet-piracy.html
2. by sus, 14 November 2006, 23:42
how in the world do I use this xrost/ refill balance thing? Every time I go to the refill balance section, it only allows me to pay via credit card, but then it won't let me; so now I've got this xRost credit and I'm not sure how to transfer it over. Can someone please enlighten me??? Thank you!
3. by Adam, 15 November 2006, 01:05
Precicely Here!
http://account.allofmp3.com/pays/payments.shtml?action=step2&via=xrost
4. by Doug, 17 November 2006, 08:04
There's a good reason the music industry can't explain how they are calculating piracy losses. To my knowledge, there's only ever been one serious large-scale research project conducted to try to calculate the direct effects of "illegal" downloading. The researchers' conclusion was that peer-to-peer downloading's effect on CD sales was so minimal that it was indistinguishible from zero.
This is yet another indication that the entertainment industry's global push to expand their stranglehold on intellectual property rights is not about protecting creativity; it's about the desire of a handful of global oligarchs to claim ownership of all forms of human creativity.
You can download a copy of the full study at: www.unc.edu/~cigar/papers/FileSharing_March2004.pdf
5. by mlh, 19 November 2006, 20:29
is there any other way to pay for refills, since visa and mc are being dummies in not letting their cards work this system?
6. by dave, 20 November 2006, 01:40
if the record industry stopped ripping off the customers and lowered the price of cd/dvd then people would not need to buy pirated copies.
7. by CM, 20 November 2006, 20:31
hey you guys dont use that xrost with click and buy if you dont wanna shell out 10 bucks extra! it worked great but yeah next time im using my mastercard.
8. by DAtoLP, 25 November 2006, 06:44
Her is some food for thought. I don't know about actual studies let alone how biased they are but my own personal gut feeling is this:
1) Its not the fans nor the music consumers but rather the business people in the music industry who are screwing the artists. And its those same business people who come up with crappy arguments like for every illegally dowloaded album is one less legally sold CD. Come on! Do you think people would otherwise buy every piece of music they sample? Get real!
2) so called illegal dowloading is a lot more likely to increase rather than decrease CDs sales. You get to know the work of many more artists and if you really like their stuff, you will (read most people willl) end up buying the actual CD, if only to have the art cover, pictures and printed lyrics. Of course, producing nice looking CD jackets and booklets (like they used to with vinyls) could help.
3) Sound quality is an issue. MP3 may be fine for casual listening of hip hop but the loss in quality is definitely audible in a suitable listening environment for most music, be it classical, rock or jazz. As for stuff obtained from open sources with God knows how many successive compressions, as far as I am concerned, one is better off not having any music than having to endure a poor quality low signal lost among all the pops and hisses. Higher bit rates and lossless file formats are much better than cheap 128 kbps AAC and MP3s and often similar to CD (are you reading this, i tune store guys!). In fact, if the music industry was really concerned about offering good quality music to consumers, they would have promoted SACD long ago and would offer all music in this format at a fair price. This way, most people would not even bother trying to build a music library from downloaded files because it could never conveniently even approach the SACD quality.
4) Downloading music is time consuming and although its fine for sampling, it's just not worth all the hassle, unless you really don't have a life. I personnally find it a lot more convenient to simply go to the store and get the music I want than spend evenings downloading, editing and moving files, burning CD's, printing covers, etc etc. But I appreciate the convenience of hearing beforehand the music I intend to buy. The fact is, most people I talked to agree that they actually buy more music in stores since they can also dowload it from the net.
5) To all the musicians out there who made my life better and more enjoyable, I thank you from the bottom of my heart and I will continue to download your music and also buy your CDs. (and SACDs if only the music giants could make them more readily available. After all, masterpieces deserve to be in the best packages)
9. by edward, 29 November 2006, 12:28
well, this site is almost piracy if you ask me. only difference is we pay for. but the price doesn't make any sense at all. did you hear Russian authotiry will shutdown this site sooner? I heard the news from DL.TV. if you doubt, watch video podcast. good bye, sucker!
10. by rebel, 22 February 2007, 03:42
edward = RIAA whore.
11. by tyorke, 6 March 2007, 11:42
>rebel - priceless.
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