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	<title>AllThingsD &#187; Jim Griffin</title>
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		<title>Warner Music: That "Music Tax for Colleges" Proposal Isn't Ours (Sort Of). But It Should Be</title>
		<link>http://allthingsd.com/20081207/warner-music-that-music-tax-for-colleges-proposal-isnt-ours-sort-of-but-it-should-be/</link>
		<comments>http://allthingsd.com/20081207/warner-music-that-music-tax-for-colleges-proposal-isnt-ours-sort-of-but-it-should-be/#comments</comments>
		<pubDate>Sun, 07 Dec 2008 18:14:19 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Media]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Educause]]></category>
		<category><![CDATA[Jim Griffin]]></category>
		<category><![CDATA[Mark Luker]]></category>
		<category><![CDATA[MediaMemo]]></category>
		<category><![CDATA[Mike Masnick]]></category>
		<category><![CDATA[music]]></category>
		<category><![CDATA[Peter Kafka]]></category>
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		<category><![CDATA[Warner Music Group]]></category>

		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=1737</guid>
		<description><![CDATA[Music industry critics rightly castigate the music business for trying too hard, for too long, to hang on to the doomed CD business. Then they howl when music companies try to make money by selling music in other formats. But strip away incendiary terms like "music tax," and the trial balloon that Warner Music Group is floating makes sense.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2008/12/pump_up_the_volume.jpg"><img class="alignright size-full wp-image-1749" title="pump_up_the_volume" src="http://mediamemo.allthingsd.com/files/2008/12/pump_up_the_volume.jpg" alt="" width="169" height="250" /></a>My bloggy brethren can be a hard-to-please bunch: Some of them, for instance, rightly castigate the music business for trying too hard, for too long, to hang on to the doomed CD business. But then they howl when music companies try to make money by selling music in other formats.</p>
<p>Latest example: A recent post from <a href="http://techdirt.com/articles/20081204/1534153023.shtml">TechDirt&#8217;s Mike Masnick</a>, which focused on talks that a Warner Music Group (WMG) rep has had with various colleges and universities about a &#8220;voluntary licensing&#8221; plan. The rough outline: The schools pay a per-student fee to Warner and the other music labels and the students get to download/&#8221;share&#8221; all the music they want.</p>
<p>Much of this is laid out in a presentation that TechDirt acquired, and it seems pretty reasonable to me:</p>
<p><iframe src='http://docs.google.com/EmbedSlideshow?docid=dhpvc2mr_115m5prjqd5' frameborder='0' width='410' height='342'></iframe></p>
<p>But Warner wants you to know that while the above slides say &#8220;Warner Music Group&#8221; and list the name and contact info for Jim Griffin&#8211;a Warner exec hired to look into these kinds of proposals&#8211;it isn&#8217;t theirs. Well, not exactly. In their (many) words:</p>
<blockquote><p>This presentation belongs to someone outside our company and represents that individual’s interpretation of issues discussed at meetings held several months ago. It was not made by me or anyone at Warner Music Group. Of course, we are actively engaged with universities and other parties to seek a constructive resolution to a complex issue&#8211;how to assure artists appropriate compensation while enabling the widespread dissemination of their work among fans. Therefore, we are undertaking an effort to develop new voluntary business models that seek something other than&#8211;and we believe, better than&#8211;a litigation-based approach. This is exactly the type of solution that several universities and their associations have been asking for. We recognize that there are many different potential solutions to this issue, and we are determined to continue to think creatively and cooperatively with other parties in order to find the best ones. At this early stage, many ideas may be discussed and discarded, but efforts to prematurely label or criticize the process only hinder achievement of constructive solutions.&#8221;</p></blockquote>
<p>I&#8217;ll try to translate a bit. The slides are actually the work of <a href="http://www.educause.edu/Community/MemDir/Profiles/MarkALuker/39331">Mark Luker</a>, a VP at something called <a href="http://www.educause.edu/">Educause</a>, an education and tech nonprofit (that among other things, <a href="http://net.educause.edu/edudomain/show_faq.asp?code=EDUBILLING">administers the &#8220;.edu&#8221; domain</a>). But they are a summary of discussions Luker and Educause have had with Griffin. So while they&#8217;re not exactly Warner&#8217;s words, they are, roughly, Warner&#8217;s ideas&#8211;or at least ideas Warner has been batting around.</p>
<p>And while I understand why Warner and the other labels are stepping gingerly around this stuff&#8211;they&#8217;ve got a terrible image to begin with, and anything associated with a &#8220;tax&#8221; is a tough sell in any case&#8211;but this really shouldn&#8217;t be that controversial, at least conceptually: The labels get to move away from both physical distribution as well as charging consumers for each song&#8211;both losing propositions in the long run. And consumers get unlimited consumption for a small monthly fee. Isn&#8217;t that what everyone wants?</p>
<p>Admittedly, there are lots of devils in those details. But better to start tackling them now&#8211;in discussions with anyone who will have them&#8211;than shrugging and <a href="http://mediamemo.allthingsd.com/20081202/why-are-music-sales-dropping-because-its-hard-to-buy-music/">giving up altogether</a>.</p>
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		<title>P2P Tax to Be Followed by Boston P2P Party?</title>
		<link>http://allthingsd.com/20080328/ddv20080328/</link>
		<comments>http://allthingsd.com/20080328/ddv20080328/#comments</comments>
		<pubDate>Fri, 28 Mar 2008 18:00:47 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[broadband]]></category>
		<category><![CDATA[CD]]></category>
		<category><![CDATA[digital]]></category>
		<category><![CDATA[Digital Daily Live]]></category>
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		<category><![CDATA[file sharing]]></category>
		<category><![CDATA[file-sharing tax]]></category>
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		<category><![CDATA[Jim Griffin]]></category>
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		<category><![CDATA[Larry Ellison]]></category>
		<category><![CDATA[Microhoo]]></category>
		<category><![CDATA[Microsoft]]></category>
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		<category><![CDATA[New York Post]]></category>
		<category><![CDATA[Oracle]]></category>
		<category><![CDATA[Palm]]></category>
		<category><![CDATA[peer-to-peer network]]></category>
		<category><![CDATA[proxy fight]]></category>
		<category><![CDATA[Recording Industry Association of America]]></category>
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		<category><![CDATA[Warner Music Group]]></category>
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		<title>Actually, You&#039;re Taxing Our Intelligence &#8230;</title>
		<link>http://allthingsd.com/20080328/filesharing-tax/</link>
		<comments>http://allthingsd.com/20080328/filesharing-tax/#comments</comments>
		<pubDate>Fri, 28 Mar 2008 12:39:32 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[BitTorrent]]></category>
		<category><![CDATA[Edgar Bronfman Jr.]]></category>
		<category><![CDATA[file sharing]]></category>
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		<category><![CDATA[Gnutella]]></category>
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		<category><![CDATA[Kazaa]]></category>
		<category><![CDATA[music]]></category>
		<category><![CDATA[Napster]]></category>
		<category><![CDATA[Recording Industry Association of America]]></category>
		<category><![CDATA[RIAA]]></category>
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		<category><![CDATA[Warner Music Group]]></category>

		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/20080328/filesharing-tax/</guid>
		<description><![CDATA[Back in 2000-2001, when the Recording Industry Association of America was still trying to recover from its CD price-fixing scheme with poorly reasoned justifications for CD price inflation (&#8220;Listen, if CD prices were governed by the Consumer Price Index, you&#8217;d be paying $33.86 for them instead of $12.75!&#8221;), a little company called Napster came calling. [...]]]></description>
			<content:encoded><![CDATA[<p><img src='http://digitaldaily.allthingsd.com/files/2008/03/peter_griffin.jpg' alt='peter_griffin.jpg' />Back in 2000-2001, when the Recording Industry Association of America was still trying to recover from its CD price-fixing scheme with poorly reasoned justifications for CD price inflation (&#8220;Listen, if CD prices were governed by the Consumer Price Index, <a href="http://web.archive.org/web/20031202021246/http://www.riaa.com/news/marketingdata/cost.asp">you&#8217;d be paying $33.86 for them instead of $12.75!&#8221;</a>), a little company called Napster came calling. Napster had pioneered a new Internet distribution model for digital media that was revolutionizing the music industry, and it hoped to partner with RIAA member labels to create a subscription-based service.</p>
<p>At the time, <a href="http://www.comscore.com/press/release.asp?id=249">Napster had some 20 million users worldwide</a> and was essentially the de-facto file-sharing standard. Had the RIAA labels agreed to the alliance, they might have turned peer-to-peer distribution into a new and powerful business model, one with low distribution and marketing costs and a fast developing user base. But they didn&#8217;t. <a href="http://web.archive.org/web/20041211085346/http://www.siliconvalley.com/mld/siliconvalley/business/columnists/gmsv/6728959.htm">They chose another route</a>.</p>
<p>Big mistake. Along came Gnutella. And increased broadband penetration and cheaper storage. Along came Kazaa. And then came BitTorrent. And, well, look at the industry now.</p>
<p>Given such history, it&#8217;s difficult to look at <a href="http://svextra.com/blogs/gmsv/2008/03/dont_think_of_it_as_a_music_tax_think_of_it_more_like_an_insurance_policy.html">the recording industry&#8217;s plan to have a monthly fee added to consumers&#8217; internet-service bills</a> and not shake your head in wonderment.</p>
<p>Portfolio.com reports that Edgar Bronfman Jr.&#8217;s Warner Music Group (TWX) has indeed hired <a href="http://www.theregister.co.uk/2008/03/28/griffin_wmg_p2p_deal/">veteran industry consultant Jim Griffin</a> (no relation to <a href="http://en.wikipedia.org/wiki/Peter_Griffin">Peter</a>, right?) to quarterback a plan under which <a href="http://www.portfolio.com/news-markets/top-5/2008/03/27/Warners-New-Web-Guru">consumers pay an Internet-access surcharge of <a href="http://www.techcrunch.com/2008/03/28/the-music-tax-details-of-the-plan-they-dont-want-you-to-know/">$5 a month</a> for the collective right to freely share music.</a> Those fees would be pooled and divvied up among artists and their labels.</p>
<p>&#8220;Ideally, music will feel free,&#8221; <a href="http://www.portfolio.com/news-markets/top-5/2008/03/27/Warners-New-Web-Guru#page2">says Griffin</a>. &#8220;Even if you pay a flat fee for it, at the moment you use it there are no financial considerations. It&#8217;s already been paid for.&#8221;</p>
<p>Ah- charge <em>everyone</em> for all music. So it is <a href="http://digitaldaily.allthingsd.com/20080313/file-sharing-tax/">Monetization Without Representation</a>. OK. But what gives the music industry the right to tax all broadband users because it suspects some of them might illegally share its content?  And if the music industry deserves that right, then doesn&#8217;t the film industry deserve it as well? And the publishing industry? And <a href="http://www.mathewingram.com/work/2008/03/27/is-a-music-tax-paid-to-isps-the-answer/">any other industry that might benefit </a>from such a tax?</p>
<p>As David Barrett, engineering manager for peer-to-peer networks at Web content-delivery giant Akamai (AKAM), notes Griffin&#8217;s plan is problematic. And desperate.</p>
<p><a href="http://www.portfolio.com/news-markets/top-5/2008/03/27/Warners-New-Web-Guru#page2">Said Barrett:</a>, &#8220;It&#8217;s too late to charge people for what they&#8217;re already getting for free. This is just taxation of a basic, universal service that already exists, for the benefit a distant power that actively harasses the people being taxed without offering them any meaningful representation.&#8221;</p>
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		<title>Actually, You're Taxing Our Intelligence &#8230;</title>
		<link>http://allthingsd.com/20080328/filesharing-tax-2/</link>
		<comments>http://allthingsd.com/20080328/filesharing-tax-2/#comments</comments>
		<pubDate>Fri, 28 Mar 2008 12:39:32 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[BitTorrent]]></category>
		<category><![CDATA[Edgar Bronfman Jr.]]></category>
		<category><![CDATA[file sharing]]></category>
		<category><![CDATA[file-sharing tax]]></category>
		<category><![CDATA[Gnutella]]></category>
		<category><![CDATA[Internet]]></category>
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		<category><![CDATA[Jim Griffin]]></category>
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		<category><![CDATA[Kazaa]]></category>
		<category><![CDATA[music]]></category>
		<category><![CDATA[Napster]]></category>
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		<category><![CDATA[Warner Music Group]]></category>

		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/20080328/filesharing-tax/</guid>
		<description><![CDATA[Back in 2000-2001, when the Recording Industry Association of America was still trying to recover from its CD price-fixing scheme with poorly reasoned justifications for CD price inflation (&#8220;Listen, if CD prices were governed by the Consumer Price Index, you&#8217;d be paying $33.86 for them instead of $12.75!&#8221;), a little company called Napster came calling. [...]]]></description>
			<content:encoded><![CDATA[<p><img src='http://digitaldaily.allthingsd.com/files/2008/03/peter_griffin.jpg' alt='peter_griffin.jpg' />Back in 2000-2001, when the Recording Industry Association of America was still trying to recover from its CD price-fixing scheme with poorly reasoned justifications for CD price inflation (&#8220;Listen, if CD prices were governed by the Consumer Price Index, <a href="http://web.archive.org/web/20031202021246/http://www.riaa.com/news/marketingdata/cost.asp">you&#8217;d be paying $33.86 for them instead of $12.75!&#8221;</a>), a little company called Napster came calling. Napster had pioneered a new Internet distribution model for digital media that was revolutionizing the music industry, and it hoped to partner with RIAA member labels to create a subscription-based service.</p>
<p>At the time, <a href="http://www.comscore.com/press/release.asp?id=249">Napster had some 20 million users worldwide</a> and was essentially the de-facto file-sharing standard. Had the RIAA labels agreed to the alliance, they might have turned peer-to-peer distribution into a new and powerful business model, one with low distribution and marketing costs and a fast developing user base. But they didn&#8217;t. <a href="http://web.archive.org/web/20041211085346/http://www.siliconvalley.com/mld/siliconvalley/business/columnists/gmsv/6728959.htm">They chose another route</a>.</p>
<p>Big mistake. Along came Gnutella. And increased broadband penetration and cheaper storage. Along came Kazaa. And then came BitTorrent. And, well, look at the industry now.</p>
<p>Given such history, it&#8217;s difficult to look at <a href="http://svextra.com/blogs/gmsv/2008/03/dont_think_of_it_as_a_music_tax_think_of_it_more_like_an_insurance_policy.html">the recording industry&#8217;s plan to have a monthly fee added to consumers&#8217; internet-service bills</a> and not shake your head in wonderment.</p>
<p>Portfolio.com reports that Edgar Bronfman Jr.&#8217;s Warner Music Group (TWX) has indeed hired <a href="http://www.theregister.co.uk/2008/03/28/griffin_wmg_p2p_deal/">veteran industry consultant Jim Griffin</a> (no relation to <a href="http://en.wikipedia.org/wiki/Peter_Griffin">Peter</a>, right?) to quarterback a plan under which <a href="http://www.portfolio.com/news-markets/top-5/2008/03/27/Warners-New-Web-Guru">consumers pay an Internet-access surcharge of <a href="http://www.techcrunch.com/2008/03/28/the-music-tax-details-of-the-plan-they-dont-want-you-to-know/">$5 a month</a> for the collective right to freely share music.</a> Those fees would be pooled and divvied up among artists and their labels.</p>
<p>&#8220;Ideally, music will feel free,&#8221; <a href="http://www.portfolio.com/news-markets/top-5/2008/03/27/Warners-New-Web-Guru#page2">says Griffin</a>. &#8220;Even if you pay a flat fee for it, at the moment you use it there are no financial considerations. It&#8217;s already been paid for.&#8221;</p>
<p>Ah- charge <em>everyone</em> for all music. So it is <a href="http://digitaldaily.allthingsd.com/20080313/file-sharing-tax/">Monetization Without Representation</a>. OK. But what gives the music industry the right to tax all broadband users because it suspects some of them might illegally share its content?  And if the music industry deserves that right, then doesn&#8217;t the film industry deserve it as well? And the publishing industry? And <a href="http://www.mathewingram.com/work/2008/03/27/is-a-music-tax-paid-to-isps-the-answer/">any other industry that might benefit </a>from such a tax?</p>
<p>As David Barrett, engineering manager for peer-to-peer networks at Web content-delivery giant Akamai (AKAM), notes Griffin&#8217;s plan is problematic. And desperate.</p>
<p><a href="http://www.portfolio.com/news-markets/top-5/2008/03/27/Warners-New-Web-Guru#page2">Said Barrett:</a>, &#8220;It&#8217;s too late to charge people for what they&#8217;re already getting for free. This is just taxation of a basic, universal service that already exists, for the benefit a distant power that actively harasses the people being taxed without offering them any meaningful representation.&#8221;</p>
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