Showing posts with label US Copyright Act. Show all posts
Showing posts with label US Copyright Act. Show all posts

Tuesday, April 2, 2013

What Would You Pay for Used Digital Access Rights?

The United States Supreme Court has ruled 6-3 to uphold your right to resell legally-purchased physical goods contaning copyrighted elements, even if the copyright holder objects. Meanwhile, a U.S. District Court judge ruled to block your right to resell legally-purchased digital downloads containing copyrighted elements. Where does this lead?

If companies cannot limit consumer ownership rights to physical goods, that may just hasten their transition to all-digital delivery. But courts are fickle, and future rulings could extend re-sale rights to digital downloads. Better for companies to keep digital goods in the cloud and sell access to them.

The major players are taking steps to make non-exclusive rights to access cloud-based digital goods feel like ownership. Since the November 2012 announcement in that the Supreme Court would hear the Kirtsaeng v. John Wiley & Sons case, both Apple and Amazon have received patents indicating they are working on technology to permit buyers of e-books and cloud-based music files to resell these products. Don't be fooled into thinking this will give you full ownership rights.

Physical media books, LPs and the like are scarce objects. No matter how many are made, the number is finite, the individual objects are unique, and are subject to wear, damage and loss over time. The ones that survive retain value according to their condition. And you are free to re-sell them to a willing buyer.

Digital media files  information stored in bits-only form are infinite objects. There is no limit on the number of people who can simultaneous possess the information, each copy is identical, and does not degrade over time. The value of infinite objects is in the information transfer; the objects themselves have no retained value. But you should be free to re-sell them as long as you actually transfer possession to a buyer; the value of the transaction is based on its convenience.

Cloud-based digital media files are shared objects. Only one copy need exist because possession is retained by the owner (Apple, Amazon) who can sell an infinite number of individual rights to access the file. Amazon's rumored system for selling your "used" Kindle titles merely turns off your access to the book(s) and enables access for someone else. There is no transfer, making it impossible to place a value on the transaction. Why are "used" digital access rights worth any more or less than the original rights?

Furthermore, Amazon has announced Coins, a virtual currency obtained via credit card which will be used by Kindle Fire owners to purchase games, apps, content, and in-app purchases on their tablets. Expect any transaction in the virtual secondary market to be denominated in virtual currency, which amounts to "store credit" issued to the seller. (We all know how coupons convince us to spend more money.) Hard currency enters these walled-off digital ecosystems, but it never comes out.

Ownership of music still trumps access in the cloud when audio fidelity and freedom of choice are considered. All my weightless digital library files play identically, whether the material was originally sourced on vinyl, CD, or legally-purchased download. That same homogeneity should extend to selling any or all of the files, or donating the library after I'm gone. Stand up for First Sale protection everywhere.


             Vinyl-to-Digital Restoration #55            


Title: The Big Band Sessions
Artist: Anita O'Day
Genre: Jazz
Year: 1979

The Big Band Sessions (2-LP, Verve VE-2-2534) is a re-packaging of five Anita O'Day titles: Anita O-Day Swings Cole Porter with Billy May (V-2118), Anita O'Day and Billy May Swing Cole Porter (V-2141), Trav'lin' Light (V2157), Cool Heat (V-8312) and All the Sad Young Men (V-8442). I recently purchased it at an estate sale for $2 and made a high-res digital transfer with tracks organized according to original title and album sequence. (Yes, you can do that.) If First Sale Doctrine is not universally applied, how many copyright holders' permissions (euphemism for payments) would be necessary to sell this digital re-packaging — one, five, six? Any number greater than zero is too many.

© 2013 Thomas G. Dennehy. All rights reserved.

Wednesday, November 7, 2012

Music Ownership, First Sale Doctrine, and a Potential Parade of Horribles

The US Supreme Court is hearing an appeal that could change your ownership rights to music.

If you purchase music as physical media or license-free downloads, you are protected by the so-called First Sale Doctrine of the US Copyright Act, which gives people the right to lend, resell, or give away the works that they've bought, even if those works contain copyrighted elements.

If you purchase music as licensed downloads (or by storing it in the cloud) you accept terms clearly outlined in the end-user agreement for doing business with services like iTunes. Consumers do not own their iTunes material; rather, they get a non-exclusive right to access the files, a right that cannot be sold, donated, or given away, even to your descendents after you die.

But the case of Kirtsaeng v. Wiley, currently being heard by the US Supreme Court, could undermine First Sale Doctrine, making ownership feel more like licensing.

Book publisher John Wiley & Sons is suing to prevent an entrepreneur from (legally) purchasing cheap editions of Wiley textbooks in his native Thailand and (legally) importing and selling them to foreign students in the US at below list price.Wiley is asking the Court to rule that First Sale Doctrine only applies to goods made in the USA and that Mr. Kirtsaeng needs their permission to run his import business. [Transcript of oral arguments.]

The so-called "Parade of Horribles" resulting from a ruling for Wiley are many and far-reaching: foreign manufacturers like Toyota having to seek permission from all owners of copyrighted content in their vehicles before import and sale in the US; companies perversely moving manufacturing operations overseas specifically to escape First Sale Doctrine on their products; libraries requiring permission from copyright holders before lending titles in their collection; US citizens requiring permission before bestowing gifts of copyrighted items (books, fashion, textiles, jewelry) brought home from the design capitals of the world. All would have negative US economic impact.

Furthermore, once a precedent is established that First Sale Doctrine can be limited, the slippery slope scenario imagines a tangle of special-interest exemptions passed by a lobbyist-influenced Congress until the suburban garage sale becomes a bureaucratic nightmare, used book and music stores become extinct, and eBay and craigslist shut down completely.

The Electronic Freedom Foundation has joined Demand Progress and the Free Software Foundation in giving you a platform to contact your legislators to urge them to stand up for First Sale. While you're at it, ask them to pass legislation conveying legacy rights for licensed media. Take action today.


             Vinyl-to-Digital Restoration #45             

Title: The Modern Jazz Quartet
Artist: The Modern Jazz Quartet
Genre: Jazz
Year: 1972
The Modern Jazz Quartet (2-LP, Prestige PR 240050) is a re-packaging of three Modern Jazz Quartet titles: Concorde (PR 7005), Django (PR 7057) and MJQ (PR 7059). I recently purchased it at an estate sale for $2 and made a high-res digital transfer with tracks organized according to original title and album sequence. (Yes, you can do that.) If First Sale Doctrine is not universally applied, how many copyright holders' permissions (euphemism for payments) would have been necessary to buy this used record — one, three, four? Any number greater than zero is too many.

© 2012 Thomas G. Dennehy. All rights reserved.