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MP3 blogs offer file sharing even the RIAA could love

Although the term “file sharing” has all sorts of ugly connotations, it’s not necessarily a bad thing. In some cases, it’s even a win-win-win situation for the recording industry, music lovers — and Google.

There are countless MP3 file-sharing sites that don’t look anything like BitTorrent or Lime Wire. They’re low-key, homegrown blogs that don’t host illicitly copied music, but do provide links to third-party sites, or storage lockers, such as Megashare, where pirated music is stored. These bloggers do it for the love of the music, they say, but it doesn’t hurt that they make a little money from advertising along the way.

The low-profile success of MP3 blogs, and the apparent unconcern of the music industry, is in stark contrast to the aggressive anti-piracy actions taken by the Recording Industry Association of America in other spheres. For instance, the RIAA recently won a $222,000 judgment against a single mother of two for using file-sharing software Kazaa to trade copyright files. No similar action has been taken against MP3 bloggers.

Many of these sites, like Hangover Heart Attack and It’s Coming Out of Your Speaker, run ads through Google’s AdSense program, which means that Google, too, makes money from sites that direct people to bootleg MP3 files.

Anyone can sign up for AdSense — bloggers, publishers, nonprofit groups or even aspiring poets — although Google’s terms-of-service agreement prohibits websites that promote illegal activity or infringe on others’ rights. Google sells ad space on members’ sites, and it splits the revenue with the publishers.

Technically, these blogs could be considered illegal. The RIAA could make a claim that bloggers who direct people to pirated music may be committing “contributory copyright infringement.” And a claim could even be made against Google for profiting from the sites, says attorney Eric Custer, a partner at Manatt, Phelps & Phillips.

But who wants to put a stop to it? The RIAA declined to comment for this story, but the publisher of one MP3 aggregator, who asked to remain anonymous, says music labels have been extremely cooperative. This blogger monitors more than 3,000 music blogs daily, providing links to files that have been uploaded to various music lockers. And no, the blogger has never been asked by a label to take a link down.

“Actually, we’ve been contacted by labels, promo agencies and even musicians and bands to help promote them. Which we’ve done, free of charge,” the blogger wrote by email. The blogger also has the impression that the site has helped expose people to music they wouldn’t otherwise hear, and may even help drive CD sales, although there’s no hard evidence of this.

A major moneymaking operation it is not. The blog, which generates thousands of pageviews daily from thousands of unique visitors, makes its creator just 75 cents for each hour put into it.

Google keeps the AdSense revenue split confidential, so it’s unknown exactly how much the company makes from each publisher in the program. In a recent SEC filing, Google said it pays “most” of the fees it makes from advertisers to publishers. A 2006 New York Times report suggested one publisher, Digital Point Solutions, took home 78.5 percent of the revenue, presumably leaving 21.5 percent to Google.

Whatever the split, AdSense is an incredibly profitable operation for the company, generating billions in revenue each year. In the third quarter of 2007 alone, Google made $1.45 billion, or one-third of its revenue, from AdSense. The amount of money generated by music bloggers, though, could be fairly marginal.

“Proportionately, I think (blogs) probably represent a very small percentage of the file-sharing market,” says Eric Garland, co-founder and CEO of BigChampagne, a Beverly Hills, California, market research firm that follows the file-sharing universe. “There are always going to be different mechanisms or vehicles for exchanging files, but ultimately, people go to a search-driven environment that you find in file-sharing applications.”

For its part, Google denies responsibility for content on the AdSense network and says it acts fast when it identifies publishers who violate its terms of service. And to enforce this policy, Google reviews participating sites to weed out content that violates the AdSense terms-of-service contract.

“In the same way we crawl websites (for our search service), we crawl publisher websites to flag information that may violate our policy,” says Google spokesman Brandon McCormick. “Every site at some point goes through a manual review. It’s something we take very seriously.”

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Posted in Google, Internet, Legal | 2 Comments »

RIAA targets Usenet, newsgroup users next to feel its wrath?

It seems that newsgroup users will be the next target of the RIAA’s wrath with a new lawsuit filed on behalf major record labels against Usenet.com. It’s always been hoped that Usenet would stay under the radar while the RIAA, MPAA, and others focused on the more mainstream P2P services like Napster, Aimster, Grokster, and KaZaA, but it seems as though the party may be nearing an end.

Filed on October 12th, the suit claims that the Fargo, North Dakota-based Usenet.com service “…sells access to a body of content from a global network of computers” that “…contains…millions of copyrighted sound recordings” and “…touts its service as a haven for those seeking pirated content.”

The complaint even cites Usenet’s own “about” section with the following:

Today’s hottest way of sharing MP3 files over the Internet is Usenet; forget about all the peer-to-peer software applications, which quickly become outdated. Usenet allows everyone around the world to share their files on a worldwide network of peer servers and make them available to any member of this worldwide network.

A usenet is comprised of a large number of servers that communicate with each other. An individual user reads and posts messages to a company’s local computer server. Messages are stored on that server and then exchanged with other servers.

Usenet.com loads online bulletin boards(newsgroups) obtained from the usenet network onto its server and then sells access to the newsgroups that it has chosen to host on its usenet.com service.

The suit claims that many of the newsgroups that usenet.com chooses to offer “are explicitly dedicated to copyright infringement.”

The complaint continues:

Users of Defendant’s service post copyrighted sound recordings to these newsgroups on Defendant’s services; the works are identified by artist and title so that users can easily find any sound recordings they might want to copy. Those copyrighted works are then propagated worldwide, allowing millions of users of the Usenet network, including Defendant’s own subscribers, to copy copyrighted sound recordings with ease and anonymity – and without authorization.

It sums up its lawsuit with the claim that Usenet.com “provides essentially the same functionality that P2P services such as Napster, Aimster, Grokster, and and did,” and that it even goes further than them by customizing “…its services to make it as convenient and seamless as possible for subscribers to distribute and obtain copyrighted music without authorization and without paying for music.”

It’s too early to tell how things will paly out, but one thing’s for sure – the RIAA is leaving no stoned unturned in its scorched earth legal strategy.

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RIAA defendant maintains innocence

The Minnesota woman a federal jury ordered to pay $222,000 for unlawfully pirating digital music tells THREAT LEVEL she is innocent and was the subject of a computer hack, a position federal jurors in Duluth, Minnesota, rejected Thursday after five hours deliberating.

“I want people to know that they are being sued based on hacked, spoofed computers. They should still fight back in these cases,” Jammie Thomas, 30, said in a telephone interview moments ago. “I have to pay for somebody else’s actions.”

Thomas, a single mother of two from Brainerd, Minnesota, is among the 20,000-plus individuals the Recording Industry Association of America has sued in the past four years. She was found liable for 24 songs and ordered to pay $9,250 per track in penalties. She faced fines as high as $3.6 million.

Her case was the first to go to trial, while the bulk of them have settled and others are pending.

When the verdict was read, she said she became “disgusted because I didn’t do this.”

She said she would not settle the case before trial. “I wasn’t going to pay for something I didn’t do,” she said. She and her attorney, Brian Toder, are mulling whether to appeal the judgment.

The RIAA put on evidence that the internet protocol address and cable modem account linked to her internet service provider was sharing some 1,700 files on the Kazaa program on Feb. 21, 2005. Thomas was logged in to Kazaa using the name Tereastarr, jurors found.

Thomas uses Tereastarr on her e-mail accounts, for online shopping, on MySpace, and even with an online dating service.

When asked if she was going to buy any new music, she said “I don’t have any money for that.”

The Native American woman works as an administrator at a local tribe and said she would worry about the financial implications of paying the judgment “when I cross that bridge.”

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