Archive for August, 2012

Weekly News Roundup (26 August 2012)

Sunday, August 26th, 2012

Welcome to another edition of the weekly news roundup. Been out and about on this Sunday, went to the local store to by a copy of The Hunger Games and Battleship on Blu-ray (feeling quite ashamed about buying both, to be honest, but both are for my niece – The Hunger Games for obvious reasons, and Battleship because Rihanna is in it – although Battleship, I’ll admit, is a guilty pleasure for me too).

As for the WNR, a few bits and pieces to get through, so let’s get started.

Copyright

Following up on last week’s story regarding Google’s new anti-piracy policy, in which they will start demoting websites that receive too many DMCA notices, the two sites that will be most affected by these changes, The Pirate Bay and isoHunt, have both responded to this latest “setback”.

The Pirate Bay reiterated their earlier view that this kind of censorship will not only not affect their popularity, but may in fact drive even more direct traffic to the world’s most famous torrent indexer. It is their fame, or in marketing speak, their “brand”, that allows them to not rely on search engines at all. And if people searching Google for torrents find that results aren’t what they’re expected, they’ll soon teach themselves to go to The Pirate Bay directly. The losers in this likely scenario would be the smaller, niche torrent sites, although if they’re small enough to avoid DMCA notices, then they’ll also benefit from these changes.

The Pirate Bay

The Google DMCA demotions won’t sink The Pirate Bay – it might even help the website become even more popular, the site says

Gary Fung over at isoHunt similar expressed his meh-ness at these changes, citing that while they have a greater share of visitors coming from Google than TPB (21%, vs at most 10% for TPB), the fact that “isohunt” and “isohunt.com” are the most common incoming search terms (would be surprised if this wasn’t also the case with TPB), means that people are not using Google as a discovery tool for piracy at all (ie. they already knew about about sites like isoHunt and TPB, but were just too lazy to bookmark or type the full domain names, or weren’t sure about the spelling and just wanted to make sure).

But just because neither websites are likely to be severely affected by these changes, it doesn’t mean that they’re not fully against these changes. TPB, via their blog, says it is disturbing that one private industry is able to dictate what another industry, some might say an even more successful industry (but with a less powerful lobby), can and cannot do. Fung raises the good point that a valid DMCA notice, by Google’ definition, only means that the formatting of the submission is correct, and that no counter notification had been filed – it does not mean that the claim is genuine (Google cannot possibly check all 5.7 million+ takedown requests). Webmasters will also only be notified of any incoming DMCA notices if they have a Google webmasters account. So it is more than possible to file a false DMCA notice about a perfectly innocent web page, and if the website’s owner does not have a Google webmasters account, then he or she will never even know about this notice, which, in Google’s eyes, is still perfectly valid.

Shortly after Google’s announcement, Hollywood (via their copyright lobbying group, the MPAA) welcomed Google’s latest initiative, but still said that Google can still do more. But according to award winning tech journalist David Pogue, Hollywood should care less about what others are doing to “promote” piracy, and worry more about what the industry is doing right now to equally promote piracy. Writing an opinion piece in Scientific American, Pogue lambasts Hollywood for reacting to the imminent death of DVD rentals by retreating further away from its successor, online digital rentals. Instead of embracing the Internet, Pogue says for whatever reason (in my opinion, most likely fear), Hollywood has started putting up all sorts of barriers online to prevent people from paying for legal content. Barriers that includes unfair release windows, shortened rental times, and the reduced availability of content compared to a traditional brick & mortar store (and this totally goes against common sense, because digital is supposed to allow for a greater selection due to lack of need for physical space).

Pogue interestingly points out that out of the top 10 most pirated films of 2011, none of them are actually available for rental online at this very moment (although a couple is available as part of Netflix’s streaming offering). And if Hollywood thinks that the modern day consumer’s appetite for content can be controlled by limiting what’s available, then that’s a sadly outdated notion, because the Internet does offers people alternative. True, many of them are illegal, but the reality is that people don’t care. Through legislation and technical measures, Hollywood is hoping they can put the genie back into the bottle, but as Pogue concludes, perhaps the simpler solution is to simply embrace the Internet and “keep making money”.

But it doesn’t help when you not only *don’t* give your own customers what they want, you also label them as “scumbags” and “bandits” for simply wanting more than what you offer them. Both of these terms were used by the CEO News Limited, the Australian wing of Rupert Murdoch’s media empire. Uncle Rupert is not a huge fan of this Interweb thingy, and an even lesser fan of web piracy (once calling Google a piracy leader on Twitter), and it seems this has rubbed off on News Limited’s CEO, Kim Williams.

Controversially, Williams said that the web piracy problem makes the English riots of 2011 “look like children stealing [candy] from a shop”. A tasteless comparison if only for the fact that the same riot caused the death of five people. While I admit that a lot of content is downloaded illegally these days, as far as I can tell, places like Amazon, Steam, Netflix, and even offline ones like Walmart, are still doing pretty well, certainly better than the smashed, burnt down and robbed stores that bore the brunt of the London riots. And that’s the key difference between traditional theft, and the theft of intellectual property – one has a real economic cost attached, the other merely has a theoretical “lost sale” cost. One is taking, the other is copying, like photocopying a text book at the library, versus shoplifting the same book from a book store.

But one area in which a comparison to the English riots may have merit is that things like riots, and large scale unauthorised downloading, don’t simply happen in a vacuum. As much as those in positions of power want to write it all off as criminals committing crimes, the root of the problem is always much more complicated. The disenfranchisement and injustice that people were feeling, whether a legitimate gripe or just the sense of it (both equally real in people’s minds) is what was behind the riots. And the sense of unfairness in pricing, availability that people are feeling towards the provision of video entertainment, while a much less severe and a much more “first world” problem, may also be the root of this “piracy scourge”. Basically the same thing Pogue alluded to in his article.

The Oatmeal: Game of Thrones

Games of Thrones is pirated a lot in Australia because legal ways to watch the show in a timely manner hasn’t been provided by the only cable TV player in town, partially owned by News Limited, whose CEO calls pirates “scumbags” and “bandits”

So I guess it won’t surprise you that News Limited, the company that part-owns Australia’s *only* cable TV network (Foxtel, who recently absorbed the regional based Austar), is notorious for the putting up the very same barriers that Pogue talks about. Australia has the highest piracy rate for Game of Thrones, mainly because exclusive broadcasters Foxtel, in their infinite wisdom (or trying to save a buck on the distribution deal), not only decided to move Game of Thrones to a premium cable package (fair enough), but also decided to not show any of the episodes until the US season had ended, thus ensuring everybody, and I mean everybody (that I know of at least), pirated the show. The situation has improved recently with the delay decreased to a single week, but a week long delay in this day and age of Twitter spoilers and whatnot might as well be a year. The nature and popularity of the show also meant that none of the free-to-air networks dared to show the uncensored version, nor can they afford the buy the show in all honesty, and so “scumbags” and “bandits” were created en masse as a result.

This is also the same Foxtel that allows so many ads on their basic channels, that one wonders what they’re paying for exactly (I pay for an equivalent of USD $100+ per month for a package that doesn’t even include movies), other than the mostly old repeats of repeats that you can get on Netflix for $7.95 (but we don’t have a Netflix equivalent here with the same amount of content, so VPNs and proxies are very popular here, which I’m guessing News Limited’s Kim Williams thinks we’re total d*cks for using).

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The “sue for settlement” industry haven’t been making the headlines much recently, what with our beloved Righthaven dying a not so pretty death and all. Leave it to the Germans though to do what no other has dared, or wanted, to do – to publicly humiliate up to 150,000 names of individuals and organisations that are alleged to have downloaded infringing content, including hardcore porn  titles that include delightful numbers such as “Amili Learns to Swallow” and “Alone Among Brutal F***ers”. And I guess if you were to do it properly (the public humiliation, not the porn, although I’m sure the list also contains those that downloaded from the popular public humiliation porn category), you’d have to humiliate those that will be most embarrassed by these mere allegations, which is why the law firm, Urmann, plans to focus on naming and shaming churches, police stations and embassies of Middle Eastern countries.

Privacy and defamation issues (although German law is on the side of Urmann on this one too, which allows law firms to publish the names of those accused by its clients), and also ignoring the slightly racial tones that comes from picking on foreigners, the fact that it seems somewhat public places are being named suggests there might be quite a few IP addresses associated with public/shared Wi-Fi. Not that “sue-for-settlement” firms in the past have cared this issue in the past.

The German Pirate Party is said to be “shocked” at this latest development, and net vigilante group Anonymous is already sharpening their knives with the ominous statement that they will “take care of it”. I still fail to see what the whole point of the exercise is (again, the public humiliation, not the porn) – after all, the *threat* of public humiliation is the main business model behind these kind of “lawsuits”, but if you carry out with the threat, you also remove any incentive for people to pay.

But I’m sure they know what they’re doing. Right?

And that’s pretty much it for the week. See you next week!

Weekly News Roundup (19 August 2012)

Sunday, August 19th, 2012

Welcome to another edition of the WNR. NPD “released” its July 2012 sales stats for US video game sales, but unfortunately, only Microsoft again chose to divulge its hardware sales stats. So no July NPD analysis, which is a shame, but there wasn’t any real surprises anyway. I’ll talk a bit about it in the gaming section below.

Another pretty full news week, so let’s get started …

Copyright

So much for “do no evil”. Google gave in to the demands of the MPAA and the RIAA this week by signalling it is ready to start self-censoring its own results to reduce the visibility of alleged piracy websites. Without going as far as removing suspected websites, Google will start demoting any website that receives an unspecified number of DMCA notices.

Google DMCA Demote

Google has started demoting websites that receive too many DMCA notices, the image on the left shows the demoted rankings, while the image on the right (for the yet unchanged Greek version of Google) shows the previous rankings

It’s own YouTube website, and “major brands” will apparently be exempt from this new rule (webmasters have long suspected there’s one rule for the web top 100, and another rule for the rest), but the rest will now have to live in fear of the system, which is already being massive abused by those seeking an unfair advantage (57% of all filed notices, according to a Google report from 2006), and made even more attractive as a “black hat” weapon of choice now that the entire domains of competitors can be demoted. Since Google started releasing DMCA stats, the number of DMCA notifications has risen from about a million per month, to now over 4!

Except none of this will work to stop piracy, because people aren’t turning into pirates just because they see some links to The Pirate Bay on Google. I don’t know if it’s naivety, a head in sand attitude, or a deliberate attempt to muddy the waters, but the idea that good, people are being fooled and misled into downloading pirated content online is, to put it simply, hogwash. People pirate and they do it willingly, and knowingly. And they spent a lot of effort learning and honing their piracy skills. They will most likely alredy have go-to places to get their piracy fix, or custom search engines that does more work separating the wheat from the chaff, so the idea that they’re all relying on Google to find the S01E08 of The Newsroom is simply a fantasy.

But despite Google’s proactive steps in reducing piracy, the MPAA/RIAA still wants more. In a joint submission to the US Copyright Czar, the MPAA and the RIAA have called on the government to do even more in the CRusade Against Piracy (CRAP™), including going all “Megaupload” on websites like The Pirate Bay. Basically a wish-list and a preview of what the copyright landscape could be like if the MPAA/RIAA get their way, the submission also talks about increasing criminal sentences for copyright offences, including making the unauthorised streaming of videos a felony.

Showing that they’ve not quite given up on SOPA/PIPA, the submission also calls for tighter control of domain names, including those outside of the jurisdiction of the US government. The groups also say that the government needs to go out and threaten private businesses like domain name registrars, search engines, and advertising agencies and get them to fall in line with the MPAA/RIAA’s vision of copyright enforcement. So it’s simply not good enough for Google to only demote websites that have yet to be proven, in a court of law at least, of doing anything wrong – no, the MPAA/RIAA says search engines like Google must “delist rogue sites”. Note the use of the term “rogue”, the same type of language that’s also being used to describes countries like North Korea and Iran, and I don’t think this is a coincidence either.

Feeding into the paranoia and hysterics that aims to paint college kids downloading movies as something much more serious, the MPAA/RIAA also strategically brings “organized crime” and “gangs” into the equation in this submission. But as far as I know, Tony Soprano purchased his copy of The Godfather, and it may be just me, but I just can’t imagine the Crips and the Bloods getting into the torrent search engine business.

High Definition

The wait is finally over. The kind people at Fox studios have finally allowed their customers to buy Avatar on Blu-ray 3D, for a price that isn’t a ridiculous 3 figure number.

Fox’s deal with Panasonic, where the electronic giant has exclusive rights to distribute the Blu-ray 3D version of Avatar with the 3D electronics, was one of the more controversial movie deals in recent times. Coming just at a time when Blu-ray 3D needed a launch title that could only come from the most acclaimed and most financially successful 3D movie of all time, the exclusivity deal meant that the format lacked a killer title available in stores that would have helped the format’s early adoption. As such, Blu-ray 3D hasn’t taken off in the way that electronic manufacturers and movie studios had hoped.

Avatar 3D Blu-ray Panasonic Exclusive

The Panasonic exclusive version of Avatar on Blu-ray 3D is still fetching 3 figures on eBay and Amazon, but the retail version will be available in October

With that said though, while people aren’t using 3D as much as studios would have liked, they’re still buying them because the price premium of 3D over 2D ranges between inconsequential and non-existent. Try and find a top of the range 2D TV that isn’t also 3D, and you’ll struggle. And when there’s only a $20 difference between a 2D Blu-ray player and its 3D equivalent, consumers don’t really have to make any hard choices.

Still, the retail release of Avatar on Blu-ray 3D should help the format break all kinds of records when the disc is released in October. The price is a bit higher than your average Blu-ray movie, $28 at Amazon, but it’s definitely better than paying $128 for it on eBay, right?

But don’t bet on this Blu-ray 3D Limited Collector’s edition to be the most definitive 3D version of the film to arrive on disc. The fact that this release might not even feature the extended cut means that Fox is already planning a quadruple dip of the film sometime in the near future.

Even for the 2D version, it’s only a matter of time before we see the 4K or whatever version of the film on possibly a new disc format, or if bandwidth issues are resolved, via streaming or download. Projects like Australia’s NBN and Google Fiber will aim to fix for the bandwidth issue once and for all with the move to fibre optics, which has almost an unlimited capacity to carry TB/s and beyond, but another solution is to increase the efficiency of the delivery codec. Which is why it was interesting to read about the news of a new format being officially approved by the Moving Picture Experts Group (MPEG), which promises to provide the same visual quality as H.264 with only half of the bandwidth needed.

H.264 is already super efficient, so it’s hard to believe that something could come along and double that efficiency, but HEVC, or H.265, aims to do just that through more computational intensive algorithms. Mobile applications would probably benefit the most from H.265/HEVC, due to their inherent bandwidth limitations, although faster (and more power hungry) devices may be needed to decode the video.

The other main beneficiary from a more efficient codec would be the web streaming industry, finally allowing the likes of Netflix to do true Blu-ray quality streams on connections less than 20 Mbps.

For other applications, 4K is an obvious candidate, but 4K only really benefits super large screens (say 80″ or above), and it’s an overkill for anything smaller. And if staying at 2K or 1080p resolution, the increased efficiency of H.265/HEVC may allow for same bitrate, but higher quality encodes, although you’ll get diminishing returns on any quality improvement for Blu-ray encodes, many of which are already visually flawless to the average viewer.

Gaming

Blizzard’s Battle.net has become, perhaps, one of the most tempting targets for hackers in recent times. Not only does the company hold a heck of a lot of data for a heck of a lot of people, Blizzard also holds tons of financial information for all those subscribers to WoW, and all those buyers/sellers on Diablo III’s Auction House. And the company’s stance towards “always-on” DRM for D3 meant that anyone who pokes holes in their security will instantly receive a lot of “web cred” for their efforts.

Blizzard Security Notice

Blizzard was hacked last week, with a ton of user information stolen in the process.

So unsurprisingly, Battle.net was hacked this week, with a heck of a lot of data being stolen in the process, including emails, (encrypted) passwords, security questions/answers, and even data related to the mobile authenticator that’s supposed to prevent hackers from getting into your account. The scale of the breach is actually quite spectacular, with the email addresses of every Battle.net account (except for those in China – probably on different servers) being leaked, and pretty much all accounts on the North American servers being compromised further.

Just the other week, Blizzard was boasting about how effective “always-on” DRM has been in preventing piracy, which has meant the company has made record amounts of money selling the hit game. It’s a shame that they didn’t invest enough of their loot (using it in the Diablo III sense) in protecting their users, but when you treat your customers as criminals by forcing draconian DRM on them, their rights were never that important to start with.

And as mentioned in the intro, the July NPD report was released, with the Xbox 360 once again riding high among the home based consoles, selling 203,000 units. But it was still 26.7% down compared to the same month last year, although the other home based consoles probably didn’t fare much better (the Wii in particular). The holiday sales period is coming up soon, and with the Wii U out around that time, it will be interesting to see if the Xbox 360 and PS3 will make a comeback, or take a further hit, when sales ramp up for this period.

But a price discount could do wonders for the two ageing consoles, especially when up against the compartively pricey Wii U.

That’s that for the week. See you in seven!

Weekly News Roundup (12 August 2012)

Sunday, August 12th, 2012

The Olympics are nearly at an end, thankfully. It’s not just that it managed to suck away a lot of news time from more important issues, I’m sure Londoners are also pleased that the disruption is nearly over. Besides, it allows football to be back at the (new) Home of Football!

I’m sure many will herald the London Olympics as a huge success, but for me, it has failed in one area – the web. It seems Internet rights have been sold to each individual country, with the requirement that geo-blocking be implemented – it means that you’re most likely at the mercy of your local broadcaster (or whomever purchased the Internet rights) as to what kind of web coverage you’re likely to get. Here in Australia, live streaming was practically non existent, and even highlights and replays were limited (and far from being instant). That the rights were purchased by a free-to-air broadcaster here with vested interests, meant that the web was also going to get the short end of the stick when it came to Olympics coverage.

And then you have the almost blanket media ban on sites like YouTube in regards to any Olympics footage (the copyright police habe been working overtime this past few weeks). Even clips of the funny and poignant moments were removed promptly, meaning there was hardly any web or social media hype surrounding key events. This is an example of copyright going too far I think, and it ends up hurting the rights holders and taking away any web based enthusiasm for the games. If you want the perfect contrast, then the Mars Curiosity landing, with its live stream, mohawk related memes, is how the web can be utilised.

Always, enough Olympics ranting. Let’s get on with the the news related, um, ranting. Lots of news this week, so much that I’ve had to save some of it for early next week (see The Ant and the Grasshopper)!

Copyright

It’s been a pretty bad week for Demonoid, the once popular BitTorrent tracker. It was first DDoS’d, then hacked, and by the end of the week to complete the poop covered trifecta, Ukrainian authorities had raided the datacenter that hosted their servers, taken the (still downed) website offline permanently, and made copies of all of the site’s data. Unlike most other BitTorrent indexers and trackers, Demonoid is a private one, meaning users can only get in by invitation, and obviously, they must have a registered account in order to use the website. The advantage of doing it this way means more privacy, and better integrity of the files present – files were much less likely to be fakes.

Demonoid Website

Demonoid, once the exclusive BitTorrent indexer/tracker you’d sell your grandmother to get an invite to (well maybe not), has been DDoS’d, hacked, and taken down, all in the space of a week!

The disadvantage is that Demonoid may hold a record of everything members have ever downloaded, and would certainly includes your registration email address and possibly other personal data, including IP addresses. This makes prosecuting the users of Demonoid a possibility, now that the authorities have the data at hand. Users of the website began to panic at the thought of authorities getting their hands on all of this information, but if history has told us anything, then lawsuits against users remain quite unlikely, and that’s assuming the data wasn’t one way encrypted in the first place.

The actual raid may have been politically motivated as well, taking place ahead of the deputy prime minister of Ukraine’s first visit to the United States – on the agenda, copyright issues. It is still unknown who was actually behind the DDoS and hacking attempts and whether the it had any links to the raid or vice versa. Conspiracy theorists will see the timing as more than a coincidence, but at the end of the day (and week), it may just be pure, unadulterated, bad luck.

But while websites like Demonoid and The Pirate Bay are used as examples of the shady side of BitTorrent, it’s easy to forget that BitTorrent is really just a file transfer protocol, no different to FTP, email, or the very protocol you use to browse websites – HTTP. And with any protocol, there are legal, and illegal ways one can use it. This week, one of the best legal uses of the BitTorrent protocols was demonstrated by the Internet Archive, who have just made available more than 1.4 million digital videos, books and music for all to download.

Night of the Living Dead Blu-ray Screenshot

The George A. Romero classic Night of the Living Dead can be downloaded in ripped Blu-ray format on BitTorrent, and completely legally too, at highs speed via Internet Archive’s new torrents

There’s a whole treasure trove of goodies available, all public domain (so no worries about copyright issues). The most popular file at the moment, going by the number of leechers, is George A. Romero’s 1968 Night of the Living Dead, the list of available downloads for this classic flick includes a Blu-ray rip version in its full 1080p, 16GB, glory. With two geographically separated IA servers permanently seeding, plus peers contributing, download speeds can also exceed that of what can be normally offered by traditional web transfer protocols (a quick test of the Blu-ray rip version had me downloading at 1 MB/s within 30 seconds, compared to 260 KB/s or so with the HTTP download version).

The other advantage of BitTorrent is that it allows files to be preserved on the Internet cloud thanks to the combined efforts of everyone, as long as at least one person is still sharing and seeding. So even in the event that IA’s server go down permanently, chances are, the downloads will continue on in the background for years to come. And that’s exactly what IA is trying to achieve, according to founder Brewster Kahle – to turn BitTorrent into “a distributed preservation system”.

IA’s effort will also help to legitimize BitTorrent, much to the chagrin of Big Content. They hate BitTorrent and peer to peer protocols not just because it’s associated with piracy, but because it represents a distribution model where they don’t have full control over the flow of data. There’s no “tap” they can turn off in the event they no longer with to have a file being downloaded, and that probably scares them more than the damaged caused by actual piracy.

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The MPAA is trying to win the PR war on the contentious extradition of UK university student Richard O’Dwyer, the former admin of TV-Shack. O’Dwyer faces a criminal copyright infringement trial in the US where he could get a heavy 10 years prison sentence, despite precedents set in UK courts in similar cases that could see him walk free. The PR war got off to the bad start when TorrentFreak somehow managed to get their hands on a leaked “talking points” memo, as well as another document highlighting the overall media strategy behind the MPAA’s “take-down” of O’Dwyer.

The MPAA is using its resources to make an already one sided battle even more one sided, with anyone expected to be interviewed on the issue to highlight the “criminality” of O’Dwyer, and about how he profited from TV-Shack (a claim that O’Dwyer does not dispute – although he says he wasted the money on frivolous things and gifts a long time ago). The memo also talks about the support O’Dwyer has gotten from Internet heavyweight Jimmy Wales, directing those questioned about the Internet pioneer’s support to label him as “presumptuous” for being the public’s voice. Even O’Dwyer’s taste in clothes, and his mother, aren’t immune to attacks – that O’Dwyer’s choice of clothing featuring cartoon characters, and being frequently picture with his mother, might somehow be a deliberate attempt by a criminal to appear more innocent (something perhaps Hollywood personalities are used to doing, but I doubt O’Dwyer has money to hire an image consultant).

With a lot of talking points already prepared, the real problem for the MPAA is that they don’t have anyone to do the actual talking. With overwhelming opposition to the extradition, people aren’t lining up to speak the MPAA’s words, even though the MPAA’s leaked media strategy document calls for “third party surrogates” to carry out the attacks against O’Dwyer.

But the real question here is why is Hollywood involving themselves in such an intimate way with what is supposed to be a criminal investigation being handled by the US Department of Justice? Self interest is obviously involved, but it does make you question who is actually in the driving seat of these extradition proceedings. The more you think about the relationship between an industry lobby group, the government it lobbies, and the law enforcement agencies employed by the government, the more inappropriate it feels, doesn’t it?

Copyright Arrest

Is this how copyright infringers will be treated in the future, if Big Content continues to lobby governments to take an ever harsher attitude towards the “crime”?

If you do feel this way, then rest assured, you’re not alone. Just this week, a group of concerned citizens (who wishes to remain anonymous) launched a website that asks these very same questions. The less than subtle name of the website/campaign is Political Prostitution, and it specifically focuses on cases like O’Dwyer’s, where it appears that industry groups are using their powers to influence politicians to make decisions that are hugely unpopular, and often against the very spirit of democracy and freedom that these elected officials are supposed to represent.

From the expensive looking police raid on Kim DotCom’s mansion, where a helicopter, semi-automatic weaponry, police dogs, were all involved – you’d expect DotCom to be some terrorist mastermind, not a guy who ran a website – to a 22 month prison sentence for the 29-year old female co-founder of NinjaVideo, deemed by prosecutors as a “danger to the community”, it’s not hard to see the over-zealousness of authorities when it comes to, what is essentially, a civil matter. Nothing exists in a vacuum, and so you then have to question why authorities are so eager and willing in their pursuit of copyright crimes, where this political pressure is coming from, and who is paying who’s bills.

And all this is happening when the very laws that govern these actions are fraught with contradictions and lack of clarity, especially when dealing with the new concepts that have been brought about by new technology, concepts that don’t readily have an old fashioned analogy to compare with.

The issue of video streaming and embedding, for example, is one that’s been debated in and out of court, with no real clarity on just what it all means. Is watching a stream, where the stream caches itself on the user’s computer, the same as downloading? Is downloading the same as unauthorised reproduction? And if you embed a video on a website, is it the same as uploading the video? Questions that are not easily answered without clarity in copyright laws, but the Federal Court of Appeals, specifically a three-judge panel led by Judge Richard Posner, has tried their best this week to clarify to the best of their abilities. And guess what? According to them, embedding is not the same as copying.

The ruling comes in the controversial Flava vs Gunter case, where the operator of video bookmarking website myVidster was sued by adult entertainment company Flava Works, for the acts of the website’s users who had posted video links to copyrighted video owned by Flava. The videos were linked via embedding, and not directly uploaded to myVidster’s servers, and so an earlier lower court decision which found Gunter guilty of copyright infringement was appealed. It was then that the MPAA, along with Google and Facebook, all stepped up to the plate with amicus briefs explaining their wide ranging positions on the issues at hand.

As this most recent appeals court ruling says embedding isn’t the same as copying, something that’s fairly obvious to most of us, the traditional definitions of unauthorised reproduction seem not applicable. For one, the original uploader is the one that committed the unauthorised copying and distribution, and the responsibility does not “flow” downwards to myVidster, regardless of the website’s actual intentions. At best, according to Judge Posner, embedding is a form of infringement that’s most akin to a public performance, but the most common interpretation of this also requires the “upload” to have been the responsibility of myVidster. The other interpretation is that the, regardless of the source of the video when it is played, the public performance only occurs when an user presses play on the embedded video, which occurs on myVidster’s website. But Flava has also failed to prove this alternate interpretation, according to the judge.

In other words, it’s all very complicated! Without clear guidance from law makers, judges can only do their best to interpret and find analogous comparisons. And it all depends on judges that are capable and willing to look deeper into the technical side of what happens when a video is downloaded or watched online – that obviously did not happen in the original, and now appealed, myVidster verdict. But if law makers are “prostitutes” to the powerful copyright lobby, then the clarifications they will eventually provide may be the last thing we need, and may take copyright laws even further away from justice and common sense than they are today.

Sorry to end this WNR on such a down note, but some of the stories I’ve left for next week are even more depressing. Like Blizzard’s database being hacked, despite layers upon layers of DRM to prevent just that, and Google’s decision to start filtering piracy related results.

So something to look forward to next week then!

Weekly News Roundup (5 August 2012)

Sunday, August 5th, 2012

Hope you’ve been enjoying the Olympics. Hasn’t been such a great one for those watching here in down under though, don’t know what’s wrong, but you know *something* is definitely wrong when New Zealand manages to get more gold than you do. I haven’t really been watching though, not really my thing as I’ve mentioned before. Too much commitment given the time differences, and I’ve got to get my body ready for a grueling season of English football watching once the Olympics are finished.

Without further ado, whatever this “ado” substance is, let’s get started with the weekly news roundup.

Copyright

Much is made of the impact the Internet piracy has had on the music industry, the creative industry that is perhaps suffering the most from the “piracy scourge”, but it appears the music industry has been keeping a big secret from everyone: that online downloads do not appear to be the major source of pirated music!

NPD Digital Music Study

Online piracy is not the main source of illegal music files, according to research referenced by the RIAA

In fact, 70% of all pirated music are sourced from offline methods, according to newly leaked data from NPD courtesy of an RIAA report. And despite all the hoopla surrounding the closure of Megaupload, all digital lockers combined only contributed to 6% of illegal music sources. Instead, traditional CD ripping/burning and hard-drive trading still rule the roost when it comes to illegal music sharing. Of course, music found in traded hard-drives may have come from online source in the first place, but it appears most people’s first port of call for pirated music is their friends and families, not the Internet.

This set of data was marked confidential, and probably for good reason. If the public were made aware the actual contributions online piracy made to the pirated music scene, they might label the industry’s efforts against online music piracy as disproportional and inappropriate, and far from the rise of the Internet piracy being the downfall of the industry, there might be other factors that are in play. It’s almost as if the industry is using Internet piracy as a catch-all excuse for all of their woes, but I’m sure those in the music business have more class and honor than that.

One of the most disproportional responses to the online piracy problem has been the introduction of “graduated response”, or more commonly known as “three-strikes”, regimes – the most notorious one being the French “Hadopi” regime. Hadopi was a pet project for former President Sarkozy, but the newly elected socialist government of France appears to be less keen to continue on with the program. New cultural minister Aurelie Filipetti says Hadopi is too expensive (12 million euros per year) for the results it has obtained so far (still awaiting the first actual disconnection I believe, with 340 out of the millions of monitored users awaiting “sentencing” after being caught out for 3 times), and that it has failed in its goal to help promote legal alternatives.

And even if Hadopi had produced bannings, Filipetti says that this kind of punishment appears to be “disproportionate” compared to the seriousness of the crime.

I firmly believe the success of programs like Hadopi should to be judged not on how many people it bans or even how many people have stopped pirating because of it – it should only be judged on the basis of whether it has helped to increase revenue for the creative industries. If revenue has not increased as a result of three-strikes and other anti-piracy measures, then these measures have no real value other than being an affront to personal privacy. The failure of these programs to produce the required financial gains will also poke serious holes in the industry’s figures regarding losses due to piracy, and it would prove that not all acts of piracy would have otherwise generated a sale had piracy been prevented.

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Uplay 2.0.4 Update

Users are advised to updated Uplay to version 2.0.4 or newer, to prevent Ubisoft’s infamous DRM and online platform from acting like a rootkit

Another week, another Ubi DRM controversy. Following the Steam Summer Sale disaster a few weeks ago where Ubisoft’s Uplay online and DRM service failed to accommodate the surge in game buyers, this week, Uplay is caught up in its own Sony style rootkit scandal.

The Uplay installer comes with a browser plug-in that’s automatically installed. But when curious Google engineer and Ubisoft game buyer Tavis Ormandy examined the plug-in further, he found that the plug-in not only allowed Uplay games to be launched, it allowed *everything* to be launched from a browser window. This is bad news because this could allow, for example, malicious websites to use the plug-in to launch anything and effectively take control of your computer. Unintentionally, Uplay had become the very definition of a rootkit.

Ubisoft was quick to release an update that fixed this vulnerability, so if you have Uplay on your system, then you’re advised to update Uplay as soon as possible, and do it with your browser closed as to allow the update to occur For now, there have been no reports of actual damages of unauthorised access by hackers via the Uplay plug-in, but if there are, I’m sure lawsuits will be launched promptly.

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A few weeks ago, I wrote about a new study which alleges a music industry led anti-innovation crusade against Internet start-ups following the legal victory against Napster. In the study, it is alleged that most of the money earned from successful lawsuits went on to fund other lawsuits, in a sort of Ponzi Scheme that ran and ran until the money expectedly ran out. Artists and rightsholders, those the music industry points to as the real victims of piracy, apparently saw little of the “loot”. It seems nothing much has changed when it comes to the modus operandi of the industry, as it’s been revealed this week that even in the event record labels manage to recover the damages they won from The Pirate Bay lawsuit (some half a million euros worth), they will again refuse to share it with the “real victims”.

Not that there’s anything to share yet or perhaps ever, as new legal documents state pretty clearly that authorities have had little success and little hope of ever recovering the full amount of damages, as unsurprisingly enough, the individuals named in the lawsuits had little asset to seize (so much for the financial gain angle that Big Content says is behind most piracy operations).

If any money is recovered, the legal document says seized funds will be put to use to sue others, just like in the post Napster days. The difference being that, thanks to the industry’s efforts, piracy has become much more resilient than in the days of Napster or even LimeWire. The good news for the industry (sort of) is that legal downloads are also more prevalent. Although due to the industry’s obsession with piracy and their anti-innovation crusade, the lack of investment in innovation and forward thinking has allowed an opening for tech companies like Apple and Amazon to come in and take a huge chunk of the distribution cash cow.

High Definition

And it seems to very same trend is being repeated with the movie industry (I guess no lessons were learnt).

The major studio’s beloved Blu-ray format continues to grow solidly, even with the holiday release season, which traditionally provides a big jolt to spur growth in market share, still yet to arrive. Even with Blu-ray movie prices continuing to drop, revenue has also been increasing, suggesting unit sales are up significantly. Some of Blu-ray’s growth has come at the expense of DVDs, as expected, but it appears that digital distribution is the main reason why DVD revenue continues to fall, and digital has been the real success story of the last couple of years.

Amazon Prime Instant Video - New Additions

With more and more titles being added every couple of weeks, Amazon Prime Instant Video is fast becoming a major player in the subscription streaming scene currently dominated by Netflix – both there’s plenty for everyone it seems – revenue are up 430% in a year!

New figures released by DEG, The Digital Entertainment Group, shows remarkable growth for all things digital. While revenue from transactional VOD services (where each request for a video is a separate payment/transaction – basically services like Vudu and the non Prime version of Amazon Instant Video) was only up modestly, some 11.6% (comparable to the rise in Blu-ray spending of 13.3%), the real growth has been in subscription VOD services like Netflix (and the Prime version of Amazon Instant Video).

An amazing 430% growth was recorded, made more amazing by the fact that this isn’t just some paper growth, but actual revenue exceeded $1.1 billion just for the first 6 month of 2012. Subscription VOD now accounts for 13% of all home video spending!

Actual Blu-ray revenue wasn’t made available by DEG (only that total physical disc spending was $3.7 billion), but data from other sources such as Home Media Research puts Blu-ray spending at just under $892 million for the first 25 weeks of the year. This means that in all likelihood, spending on subscription VOD services have now overtaken Blu-ray spending for the first time ever (this time last year, subscription VOD spending was only $208 million).

Not that I want to make this somewhat apples and oranges comparison – both delivery platforms are aimed at quite different demographics, and at the moment (due to lack of high quality HD content on streaming services), neither are really competing with each other. But once ultra speed broadband services, such as the recently priced Google Fiber are more prevalent, this could change again. For me, VOD streaming is a game changer, much more so than Blu-ray. It seems subscription VOD has the ability to not only cannibalize DVDs, but possibly rental too, and if the bandwidth issue can be solved, it can take on Blu-ray as well.

Here in Australia, the government is investing in the next-generation fibre broadband for 93% of all premises, providing up to 100 Mbps residential services at first with the capability of supporting Google Fibre like 1 Gbps speeds in the near future. It’s a fantastic and visionary project, but unfortunately, political games will most likely see the project scrapped before it’s completely finished. But in the off chance that it is completed, the ability for most homes in Australia to stream one or more Blu-ray quality streams without saturating the entire connection would most likely see the convenience of streaming win over the humble optical disc. One can dream, at least.

Speaking of dreaming, it’s fast approaching midnight and it’s probably time to call it a day on this edition of the WNR. Hope you enjoyed reading it. See you next week.