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Cuban Says RIAA Damages Should be $5 Per Month 693

Thomas Hawk writes "Mark Cuban is arguing over at Blog Maverick that with the introduction of Yahoo!'s new $5 per month music service that this needs to become the new de facto 'damages' that the RIAA ought to be able to claim when suing kids. After all, when the kids could have paid for the music via Yahoo! for $5 a month it makes it hard to say the music loss is worth more than that. 'The RIAA can no longer claim that students who are downloading music are costing them thousands of dollars each. They cant claim much of anything actually. In essence, Yahoo just turned possession of a controlled music substance into a misdemeanor. Payable by a $5 per month fine.'"
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Cuban Says RIAA Damages Should be $5 Per Month

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  • RIAA (Score:2, Interesting)

    by Anonymous Coward on Tuesday May 17, 2005 @03:32PM (#12558818)
    This makes perfect sense. Why should they be able to sue for more than the "damages" would even have been?
  • I thought subscription based services like Rhapsody and Yahoo were just streaming. If you want to acutally download the song and listen to it from somewhere else than your internet-connected computer, you had to pay an additional fee ($.79/song in Yahoo's case) I mean, if I could actually DOWNLOAD an unlimited amount of music and listen to it on all my PCs, on an mp3 player, and burn it to CD to listen in a car, for $5/month or even $20/month I'd jump at the chance. But I'm not going to pay $5/month for the privelege of listening to music and the ability to pay more to buy it.
  • by Anonymous Coward on Tuesday May 17, 2005 @03:44PM (#12558985)
    Yes, you can. Downloading is no more legal than uploading. The RIAA are currently focusing their lawsuits on uploaders because it's more efficient.
  • by Stonehand ( 71085 ) on Tuesday May 17, 2005 @03:46PM (#12559018) Homepage
    There's compensatory damages, and punitive damages.

    Punitive damages can be significantly more than actual losses. That's deliberate.
  • by Anita Coney ( 648748 ) on Tuesday May 17, 2005 @03:47PM (#12559022) Homepage
    I don't know if you realize, but that 5 dollars per month has to be paid EVERY month. Once you stop paying, the collection is worthless. On the other hand, with P2P songs you get to keep them forever.

    Second, they will not play on iPods, only certain Microsoft backed "Play for Sure" devices.

    Third, free is still cheaper than $3000, assuming you're 20 and live another 50 years.

    Fourth, P2P files are unencumbered with any DRM. Thus, you're getting more value for NO money.
  • Comment removed (Score:5, Interesting)

    by account_deleted ( 4530225 ) on Tuesday May 17, 2005 @03:48PM (#12559042)
    Comment removed based on user account deletion
  • by Bradee-oh! ( 459922 ) on Tuesday May 17, 2005 @03:48PM (#12559052)
    How would such a tax work when there is a very large proportion of ISP subscribers who don't and will never download media illegally? I have a feeling those users would be up in arms about it.

    I understand that in Canada and a few other nations there is an excise tax on blank media to account for the potential piracy. It doesn't resolve the problem completely - people who have only legitimate uses for the blank media still pay the tax. But people with a computer and a CD-R drive don't have to pay the tax. And you only pay the tax in proportion to how much blank media you use. PLUS, the tax is relatively small for average-joe-burner. How do we implement such a "more fair" system for downloading media?

    We make only the music downloaders pay the "tax" which, in this case, would be a $5/mo fee for Yahoo! music or the fee for another music provider of your choice.
  • by FrankSchwab ( 675585 ) on Tuesday May 17, 2005 @03:50PM (#12559069) Journal
    I'm not. Yahoo! music won't play (as far as I can tell) on my Archos Jukebox. It won't play in any of three existing Flash-based MP3 players. So, there's several hundred dollars worth of electronics I'd need to replace to use Yahoo! music. And, I have no guarantees whatsoever that I'll be able to play the music I purchase 5 years from now. Technological obsolescence happens; I've seen it too many times. It's in a proprietary, poorly-supported format. If the market decides to switch to a new format, this one will be left in the dust. /frank
  • by Golias ( 176380 ) on Tuesday May 17, 2005 @03:51PM (#12559080)
    The RIAA doesn't sue downloaders. They sue people who upload music.

    Okay, so they can claim damages $5 per person who they can prove downloaded your uploads, perhaps with the cost split evenly between the uploader and the downloader, to be completely fair.

    They could sue for more as punative damages, I suppose, but they can't claim any more damage than that, since that is now what the market value of unlimited downloading has become.

    (Unfortunately, that's not entirely true. $5 only buys you the right to listen for a month, not download and keep. Therefore the true "damages" they can claim are still a buck per song upload. Even so, it's a hell of a lot less than they are claiming... and they would have to prove that each download was an actual person illegally getting the song from you, not just their law firm downloading the same track 6,000 times.)
  • by joeljkp ( 254783 ) <<joeljkparker> <at> <gmail.com>> on Tuesday May 17, 2005 @03:53PM (#12559109)
    In the US it's the same crime (copyright infringement). One is just more severe than the other, and so is worth going after.
  • A car (Score:2, Interesting)

    by PurpleXanathar ( 800369 ) on Tuesday May 17, 2005 @04:06PM (#12559265)
    [after the obligatory discussion over copyright infringment and theft differences...]

    I can rent a car for 50$/day.

    So I guess I can steal Mark Cuban's car and if I accidentally get caught after a week I simply owe him 350$, right ?
  • long term thoughts (Score:2, Interesting)

    by oh_the_humanity ( 883420 ) on Tuesday May 17, 2005 @04:06PM (#12559267)
    But if you take that $5 per month, multiply it by 12 months. Then multiply that by 10 years of downloading music ($1200), then multiply that by 100 kids, and now you have $120,000 missing. I'm not defending the RIAA in anyway. I think mark Cuban is a pretty ingenious entrepreneur, however I don't think you can relate these apples to those oranges so to speak.
  • by Skraut ( 545247 ) on Tuesday May 17, 2005 @04:07PM (#12559274) Journal
    The Yahoo service is $5 a month for unlimited songs, but the second you stop paying you loose access to the songs.

    Can someone get caught with millions of songs, delete them, and just pay a 1 month ($5) Fine? or does a 15 year old get caught with 1 song have to pay $5 for the rest of his life ($4,200 assuming a 85 year life span)?

  • by sleeper0 ( 319432 ) on Tuesday May 17, 2005 @04:10PM (#12559318)
    As far as shoplifting punishment goes it brings up a good argument versus the article... As far as the law is concerned if you get caught shoplifting you cant just say fine here I'll pay the price of the item and go off on your merry way. If that was the case it would make the most sense to just shoplift everything and only pay when you get caught. The article goes even further really implying you should be able to say "well sure the store i stole it at charges $20 for this item but i saw it on sale somewhere else for $5 so i'll only pay you that". In the end it makes sense that the punishment for failing to pay for something exceeds the price you would pay legally.
  • by WormholeFiend ( 674934 ) on Tuesday May 17, 2005 @04:14PM (#12559360)
    yea, you can play the CD on your boom-box in a public square, and hundreds of people can listen too it legally

    Not true.

    Just read the copyright notice inside any music CD, the part about "public performance".
  • by Anita Coney ( 648748 ) on Tuesday May 17, 2005 @04:17PM (#12559389) Homepage
    It's pretty obvious that the music industry wants subscription services to succeed because they'd LOVE to have us buy the same music over and over again.

    But I'm making a prediction that those services will fail. They all use the same DRM backed by Microsoft. (AKA, Play for Sure) One day someone will find a way to bypass the DRM and free all those songs. Suddenly, those hundreds of thousand of songs you've downloaded will be yours permanently.

    Of course, they'll "fix" the problem but it'll happen again and again. Eventually the music industry will tire of being screwed and they'll make you buy the music outright. At least I hope so.
  • by Anonymous Coward on Tuesday May 17, 2005 @04:19PM (#12559427)
    Warren Buffett [wikipedia.org] would pwn the RIAA.

  • by stlhawkeye ( 868951 ) on Tuesday May 17, 2005 @05:11PM (#12560021) Homepage Journal
    Read that sentence again... I said "downloading," not uploading. I understand what you're saying, but uploading once is the same as downloading once in the eyes of copyright law. Ah yes, you're right. I didn't read you very carefully. I made an incorrect assumption, which was that you were referring to felony copyright fringement because, of course, misdemeanor copyright infringement (i.e., the downloading of one and only one album) will not result in the punishments you have described.

    In fact, it's most likely that for such an offense, there'd be no case brought against you at all. Just like if you got caught stealing one CD from the store. Mall security would probably throw you out and they might tell you never to come back, but unless you're a real pain in the neck about it, they're unlikely to call the police.

    You'd probably need to wrack up about a grand worth of damages before anybody will pursue legal action (the cost a lawsuit is too high, and small claims court is designed to be enough of a burden on the plaintiff as to not make it worth the effort in most cases). You're talking probably $1,000 worth of theft before you're brought up on misdemeanor charges and probably at least 4-5 times for felony charges.

    Naturally, this passivity can be mitigated. If you've been caught stealing CDs and escorted out of the mall six times already, they may decide you're enough you're enough of a hassle to pursue legal action.

    Anyway, my point is that the punishments are probably not identical but they're not as disparate as you seem to think.

  • Yahoo owes 'em big (Score:2, Interesting)

    by rasqual ( 725451 ) on Tuesday May 17, 2005 @05:23PM (#12560148)
    If a kid gets sued for $10,000, this implies that Yahoo ought to pony up ($10,000 - $5)*(duration of ostensible piracy sited in lawsuit) per subscriber. Interesting.
  • by gregmac ( 629064 ) on Tuesday May 17, 2005 @05:24PM (#12560163) Homepage
    BitTorrent is much fuzzier, because except for the first seeder, individual clients aren't uploading and downloading entire files - they're uploading and downloading small chunks, so rather than uploading 5 copies of a 1GB movie, one to each of 5 people, you might have uploaded 5GB of total stuff spread out over 25 people.

    Some P2P applications do this as well. It raises a good question though -- what happens when you're only uploading small chunks? Is it still infringing because it's still part of the song?

    What would happen if a P2P client broke files down into really small chunks so you download non-sequential chunks (though all at once, to save overhead) from different sources.. Each individual person would NOT be uploading actual music (if you tried to play the individual upload stream, it would either not work or be random garbage), they'd be uploading essentially random streams of data. Once you had all these random streams from different sources, you could reassemble it back into a song.
  • by Maxo-Texas ( 864189 ) on Tuesday May 17, 2005 @05:38PM (#12560310)
    Magnatune has really good music with a donation price of about 5 to 18 dollars (your choice) for albums you like.

    You can get the music any many different formats. Try it for free before you buy it. Hell- even keep it without buying it- no DRM in the songs.

    The best thing is- the artists keep HALF of the money you donate which is very satisfying. Much more satisfying than paying for a CD full of songs recorded by people who have been DEAD for 40 years (and should really not be copyrighted any more IMHO).

    Plus easy straight forward licensing for bars, music videos, movies, etc. etc.

    I particularly like Ehrin Starks (piano and cello) and bought a physical CD of it or 12.47 including shipping- AFTER I got to sample the music, burn my own CD of it, etc. for free. Why did I buy it when I'm normally so jaded-- because it feels good to support music presented this way. I don't feel like a sucker.
  • by HTH NE1 ( 675604 ) on Tuesday May 17, 2005 @06:08PM (#12560697)
    Haven't you heard? It doesn't matter anymore if anyone downloads it. Just having it available to be downloaded by the public is enough.

    To change infringement to theft, it is like saying if your CD collection is stolen and you didn't keep it behind a locked door, you're liable for the theft.

    And there is no uploading in P2P. It's all downloading and serving. They are going after the people who are serving.
  • Re:A car (Score:3, Interesting)

    by shutdown -p now ( 807394 ) on Tuesday May 17, 2005 @07:27PM (#12561423) Journal
    This comparison is valid if you rent out your car to the others. Assuming that the car is still in the same condition, then yeah, pretty much, it's $350 in damages, and whatever it is as a punishment. You can't suddenly claim that being unable to rent out your car on that week made you lose $10,000.
  • by johnbeat ( 685167 ) on Wednesday May 18, 2005 @12:43AM (#12563525) Homepage
    >If I steal a $5 object from a store and I get caught, it
    >doesn't cost me $5. There is a penalty above what it
    >would have cost me to purchase it

    If you steal a $5 object from a store, you are in fact stealing. Copyright infringement is not automatically stealing. Copyright infringement needs to reach a fairly high threshold to be criminal.

    Unless you download $1,000 worth of music, downloading music without purchasing it isn't stealing. Not legally, anyway, at least in the United States (this is 17 U.S.C. 506).

    At $5/month, you would have to keep downloading infringing material for 200 months, or about 17 years, to reach the point of it legally being "stealing".

    But since the $1,000 threshold has to be reached within a 180-day period, that's impossible. So if downloading unlimited music files is worth $5/month, then downloading infringing copies can never be worth $1,000. At best, it will only be worth $30 (over any 6-month period), and thus is not legally stealing.

    Incidentally, your argument about the penalty for stealing being more than the cost of the object stolen "because there is a chance that you won't get caught" (a) follows from a faulty premise (the penalty is not always going to be more than the cost of the object stolen), and (b) is not in any way the basis for U.S. criminal law as far as I can tell.

    Jerry

The nation that controls magnetism controls the universe. -- Chester Gould/Dick Tracy

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