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Music Exec Takes Shots at Pirate Bay


By: The Online Reporter
Publish Date: February 27, 2009

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- IFPI Hacked as Pirate Bay Trial Continues The International Federation of the Phonographic Industry (IFPI) has begun making its case in its lawsuit against The Pirate Bay (TPB), focusing mainly on whether the file-sharing site encouraged users to make more purchases or deterred them from making any. Both sides found studies to support their positions, with TPB saying that sharing music illegally encourages music lovers, while the IFPI was adamant that it cuts into legal music sales. John Kennedy, head of the IFPI, pointed to five studies that showed a correlation between falling sales and unauthorized file-sharing, while also mentioning one that went against this analysis. Kennedy went through some of the main complaints about file-sharing in general, but pointed the blame pretty directly at TPB. Kennedy said the music industry has lost more than 30% of sales since 2001, when illegal downloading took off, and said that TPB was the number-one source of illegal music after the legal action against Kazaa and Grokster. According to Kennedy, illegal Internet downloads caused industry sales to fall from $27 billion in 2001 to $18 billion in 2008. “Over a period of time, piracy has done immense damage to the music industry,” The Times quoted Kennedy as saying. “It is common sense, if they couldn’t get it for free they would buy it and when we ask them, they confirm that.” Problems So Far The lack of hard facts about TPB Web site has been the biggest hurdle for the prosecution so far. It has already dropped half the charges, and even Kennedy admitted to not fully understanding the technology involved in the site. There has yet to be a significant explanation of how the site works and how it infringes on copyright laws. TPB says it does not violate laws since the site doesn’t host content; it merely points users to other users who do the actual hosting. Kennedy told the Associated Press that the defendants were “hiding” behind the torrent technology and that the site still contributes to making the content available to others. “I want Pirate Bay to close down,” he said. “I want some compensation and I want it to be clear people cannot steal other people’s property without there being consequences.” The Web site for record label group IFPI was hacked last week with the hackers leaving a message on the site that condemned the IFPI’s involvement in the case against the file-sharing site The Pirate Bay . “The ruthless hunt conducted by the IFPI, Anti-Piracy Office, Warner Bros., and all the other companies with a pawn in the game now resulted in a trial in which four innocent men are accused of copyright infringement. This is a declaration of war against anti- piracy outfits and the industry players behind them,” read the note left by hackers, according to Billboard. The IFPI has confirmed an attack but has denied being hacked. The Pirate Bay’s Peter Sunde urged supporters not to do anything like this again, saying that “If anyone involved in the acts going on is reading this — please stop, for our sake.” “We do not need that kind of support,” said Sunde. “The hacking can only reflect badly on us and if you want to help us, please stop with the attacks.” The attack came on the fourth day of the proceedings. Issues raised on that day involved operators and their ties with outside operators and how they dealt with some specific inappropriate content if found on the network. The four defendants in the case face up to two years in prison and a fine if convicted, as well as claims of compensation and damages of around $14.3 million from the music and film industries. Plaintiffs in this case include Warner Bros., MGM, 20th Century Fox Films, Sony Music, EMI and Universal. New Zealand Delays Controversial Copyright Law The New Zealand government has announced it will delay implementation of a divisive new copyright law that was supposed to go into effect this week. Prime Minister John Key told a press conference that the implementation date of the law would be pushed back to March 27 in hopes that the industry can develop a workable set of rules for practice and standards. “If one could not be agreed then the section in question would be suspended,” Key said. The Copyright Amendment Act, specifically Section 92A, requires ISPs to disconnect users who are accused of illegally downloading copyrighted content. Protesters are saying this would remove the access of users and cause the removal of Web sites that are only accused — not convicted — of committing copyright violations. Last week the government received a petition signed online by more than 10,000 people against Section 92A, delivered by about 200 protesters at the Parliament building. This was followed by an Internet blackout last Monday as a protest by the online community. Thousands of sites ranging from blogs to news organizations took part in the blackout. Commerce Minister Simon Power has responded to the backlash by saying a code of practice is being developed by the Internet community to address how to appropriately implement the law. There has been no word yet of how the code is coming but it could swing either way. Some countries are implementing a “three-strikes” policy while others are shying away from cutting off Internet access. The world is taking a variety of approaches to this complex issue, and it will be a while before any nation knows how well its system is working to curb piracy and help the affected industries.