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Judge reduces "unconstitutional" $675k damages award to $67k in P2P case, RIAA is weally, weally mad! [P2P]

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Not much to say here: the law needs to be changed so such outrageous damages awards in P2P file sharing (read, typically: music stealing) aren't possible in the first place. I've written about crazy P2P cases before, and this just adds to the confusion. The message here and in other recent cases is that trial-level awards are out of control and don't represent the financial harm actually done. This is out of step with the legislative construct that makes such awards possible. Expect an appeal from the RIAA, but boy do I hope this ruling sticks.

Source: Techdirt

"LimeWire sliced by RIAA, liable for massive infringement" -- via Ars Technica [Quote]

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Judge Kimba Wood has just granted summary judgment against LimeWire, agreeing with the labels that the peer-to-peer company was liable for inducing copyright infringement. Turns out that asking LimeWire downloaders to check a box marked "I will not use LimeWire for copyright infringement" before proceeding doesn't count as "meaningful efforts to mitigate infringement.

This isn't very surprising. LimeWire is one of those peer-to-peer clients from back in the day that came with baked-in media players. The intent was clear. And I have no authority to cite for this assertion, but I suspect they made a lot of money by bundling spyware with at least their earliest versions.

Rights-holders In Yoor Packets, Smeeling Yoor Daytahs? [PDF]

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There is much to-do in the geekosphere today about development in the United Kingdom and the United States regarding intellectual property protections in the age of ubiquitous internet connectivity. Here is a nugget from Cory Doctorow, in an article about the Digital Economy Act, ACTA, and comments recently-submitted to the American Intellectual Property Czar by the MPAA, RIAA and other rights-holders:

I'm not such a techno-triumphalist that I believe that the free and open internet will solve all our socio-economic problems. But I am enough of a techno-pessimist to believe that baking surveillance, control and censorship into the very fabric of our networks, devices and laws is the absolute road to dictatorial hell.

CNET's Molly Wood talks about the comments to the IP czar in her own post, referencing the Gizmodo rant on the same. Molly said:

The comments call for bandwidth throttling and shaping, network filtering and deep-packet inspection (especially on college campuses), and accelerated federal investigations into the theft of "pre-release music and movies...as this is one of the most damaging forms of online copyright theft and requires immediate attention and swift action." Dive in anywhere. It's a minefield of overreaching, unbelievably punitive, alarmist language.

via CNET 

She also mentioned the recent GAO report that cast doubt on the extent of damage caused by infringement.

These two commentators just underscore the developing current of opposition to what trade groups with deep pockets and no interest in preventing a squelching of the rights and freedoms of non-infringing citizens are doing to push influence national policies around the world.

Thoughts?

Woman ordered to pay $40k for 37 songs she downloaded in her teens -- Via jonathanturley.org, through @maxkennerly [Quote]

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the industry has succeeded in nailing Whitney Harper who was between 14-16 years old when she downloaded 37 songs. The Court of Appeals increased the penalties against her — amounting to as much as $40,000.

While the parties agreed that she would be liable for $200 a song (under the “innocent” downloading figure), the industry said it would seek $750 if she challenged them on appeal.

"DOJ Launches Intellectual-property-enforcement Task Force" -- Via PCWorld [Quote]

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The U.S. Department of Justice has launched a new task force on intellectual property in an effort to crack down on a "growing number" of IP crimes in the U.S. and elsewhere, the agency announced.

The task force, announced Friday by U.S. Attorney General Eric Holder, will focus on working with state, local and international law enforcement agencies to "combat intellectual property crimes," the DOJ said in a press release.

The task force will work closely with the recently established White House Office of the Intellectual Property Enforcement Coordinator (IPEC), which has the responsibility of drafting a strategic plan on IP for President Barack Obama's administration. The task force will recommend ways to improve IP enforcement, the DOJ said.

"The rise in intellectual property crime in the United States and abroad threatens not only our public safety but also our economic well-being," Holder said in a statement. "The Department of Justice must confront this threat with a strong and coordinated response."

U.S. officials have suggested that the counterfeiting of pharmaceuticals, vehicle parts and electronics can endanger the public. In some cases, pirated products also finance large criminal operations, officials have said.

I have to agree, in my limited capacity as a 1L, with the hope of Public Knowledge's president Gigi Sohn that such a task force will focus on the commercially-motivated piracy that does the most damage to rights holders' brands and bottom lines.

No one wants to find out some schmuck is sharing thousands of mp3s via P2P tech, but money lost doesn't seem nearly as damaging as money lost to someone else, who will use it to build out more resources.

This differentiation between "passive" piracy and "active" piracy shouldn't mean the former is left to run rampant while the latter is pursued with all of the government's efforts. But the difference should certainly inform federal anti-piracy policy. Prioritize the money-making pirates, both behind the scenes and in the public eye, and you'll suffer less of a pr fail than the RIAA.

After all, it's much easier for the public to demonize a corporation in support of the little guy than it is for them to champion the right of mass-market pirates to profit from their pilfering.

Okay, I've achieved my morning alliteration.

Learn more about Public Knowlege at their website:

http://www.publicknowledge.org/

Infringing mom will likely go to 3rd trial with RIAA, solely on damages -- Via MediaPost [Quote]

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"The notion that an infringer who does not make a profit should automatically be entitled to better treatment than an infringer who does make a profit is found nowhere in the law," the Recording Industry Association of America said this week in papers rejecting U.S. District Court Judge Michael Davis's decision to slash the damages Jammie Thomas-Rasset must pay from a "monstrous and shocking" $1.92 million to a "significant and harsh" $54,000.

No commentary on this one. Just a reminder that this case will likely go to a third trial, solely on the question of damages.

Ars Technica's policy blog, Law & Disorder, has a really good artcile on this story, as well. It ran a couple of days ago.

Also check out Google News for more information on the third trial. And, of course, you can see my previous coverage of the RIAA, which includes both of the cases mentioned in the MediaPost story quoted above.

 

$54,250 per song is less shocking than $80,000? -- Via Threat Level

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Joe Sibley, Thomas-Rasset’s attorney, said in a telephone interview that even the reduced amount of damages is unconstitutionally excessive. It’s a penalty of 2,250 times an assumed $1 cost of a music download.

“We’re still appealing the underlying constitutionality,” he said. “It’s the difference between Joseph Stalin and the Khmer Rouge,” Sibley said. “It’s still egregious.”

The Copyright Act allows damages of up to $150,000 per track. A Minnesota jury dinged Thomas-Rasset $80,000 a song. Davis, the judge who presided over the trial in Duluth, Minnesota, lowered it Friday to $2,250 per song — three times the $750 minimum. The judge declared the $1.92 million verdict “shocking” and said damage awards “must bear some relation to actual damages.”

From $1.92 million to $54,000. That's more than the minimum per-track award. But the judge who altered the amount called the previous amount "shocking."

What exactly is less shocking about the new verdict, which amounts to $2,250 per song, about $2,249 more per song than you would spend in iTunes?

January 6
2010
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"$675,000 RIAA File Sharing Verdict Is ‘Unreasonable’" -- Via Threat Level

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The nation’s second file sharing defendant to challenge the Recording Industry Association of America at trial is asking the court for a retrial, or to reduce the $675,000 verdict the jury levied for infringing 30 songs.

Among other claims, lawyers for defendant Joel Tenenbaum asserted Monday this summer’s verdict was unconstitutionally excessive. The essence of the argument is that a penalty of $22,500 a song is simply too big, it shocks the conscience and it’s “obviously unreasonable.”

The motion for a new trial is included above. Threat Level is pretty skeptical that the defendant has any chance of getting a new trial, or a new outcome if he does get a new trial. With songs going on the iTunes store of $0.99 a piece, it does seem a bit far-fetched to issue a $675,000 judgement for 30 tunes, but what do I know? Maybe Tenenbaum shared each of those songs 22,500 times?

In all seriousness, I haven't read the details of the case, but it's certainly an interesting story.

Source: http://www.wired.com/threatlevel/2010/01/riaa-verdict-is-unreasonable/