Time to put anti-circumvention talk to bed: Fewer

Although they've had more than a week, Canada's recording industry has yet to respond to the Industry Canada-commissioned study on peer-to-peer filesharing concluding that the practice actually tends to increase music purchasing. While it's unlikely to be the case, those who oppose anti-circumvention laws hope the labels' silence is telling. "My biggest hope is that this is the last nail in the coffin on this rampant piracy-is- killing-the-industry policy justification for anti-circumvention laws," David Fewer, staff counsel at the Canadian Internet Policy and Public Interest Clinic (CIPPIC), tells Canadian New Media. "The big question now is does the government open consultations into how we legalize peer to peer? That's what this is asking in my view."The study was undertaken by Birgitte Andersen and Marion Frenz of the department of management, Birkbeck, University of London, and based on data from a Decima Research survey. It's most significant finding was that among Canadians who engage in P2P filesharing, for every 12 P2P downloaded songs, music purchases increase by 0.44 CDs. Or, "downloading the equivalent of approximately one CD increases purchasing by about half of a CD." The study also found that purchases of other forms of entertainment like movie and concert tickets, and video games, tended to increase with music purchases. Fewer isn't the only one who feels the study is too conclusive for the industry, and government, to ignore when it contemplates copyright legislation. "It looks like music to our ears," blogged Ottawa intellectual property lawyer Howard Knopf. "We finally have some useful data, in contrast to the spin and propaganda of the past." And if the Industry study wasn't enough to disprove the notion that new technologies are hurting Canada's music industry, Statistics Canada issued a report on Canada's sound recording and music publishing industries last week revealing that "each of the three major segments of the Canadian music industry (record production, music publishing, and recording studios) turned a profit in 2005." As well, sales of recordings by Canadian artists increased 3.3% between 2003 and 2005. Fewer says three facts are now clear about the impact of P2P on the music industry: no one has ever been able to prove any harm caused by P2P; the private copying regime that Canada has in place, while not perfect, works; and Canada now has no excuse not to listen to groups like the Canadian Music Creators Coalition who advocate looking at alternative ways to compensate for P2P, instead of prosecuting fans."I would hope that at this point policy makers are clear that the reason that the big labels, don't want any kind of legalization of peer to peer is because they need to control distribution," says Fewer. "And if any move to open up distribution, even if it's good for artists, for Canada, for performers, song-writers and publishers and everybody else in the industry, is bad for the big labels. That's why they oppose any kind of legalization or monetization of peer to peer, and that's why they want anti-circumvention laws. Anti-circumvention laws support control over distribution channels."He adds that the fact that Industry went outside of Canada for the study, ensuring the analysis came from a source that had absolutely no stake in the Canadian industry, should only increase its relevance. But although the data seems overwhelming, it's not guaranteed to influence the policy makers entirely. "There's lots of scope for policy to run awry," Fewer says. "One thing about the labels is there's a concentration of wealth there. They may be crying poor, but that certainly isn't reflected in the amount of time and effort they put in to lobbying on these kinds of things." Michael Geist, Canada research chair of Internet and e-commerce law at the University of Ottawa, is also concerned that the results of these studies will be ignored when the government addresses copyright. "Prioritizing reforms that target the music industry in a bill that is expected within weeks will run counter to the government's own research analysis and open the door to a lengthy list of angry stakeholders," he wrote on his blog. Of course, Fewer believes any government action on P2P should not be to stop it, but to monetize it. "Distribution of songs is right now not something the labels control, the only problem is it's happening without people getting paid," he says. "Perhaps now it's time to figure out how people get paid."

Time to put anti-circumvention talk to bed: Fewer

Broadcast | November 13, 2007

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