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Old 02-20-2004, 02:58 PM   #1
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FBI Warning Labels to Appear on CDs

FBI Warning Labels to Appear on CDs, DVDs
Thu Feb 19, 9:57 PM ET

By ALEX VEIGA, AP Business Writer

LOS ANGELES - The FBI said Thursday it is giving Hollywood film studios, music companies and software makers permission to use its name and logo on their DVDs, CDs and other digital media in hopes the labels will deter consumers from making illegal copies.

FBI officials said the idea was conceived jointly by the agency's cyber crime division and representatives of the entertainment and software industries, who claim they've lost billions of dollars due to digital piracy.

"This anti-piracy seal should serve as a warning to those who contemplate the theft of intellectual property, that the FBI will actively investigate cyber crimes and will bring the perpetrators of these criminal acts to justice," said Jana Monroe, assistant director of the FBI's cyber division.

Like the warning messages that have appeared on VHS tapes and DVDs for years, the new labels spell out that unauthorized copying and distribution of digital content is punishable by up to five years in prison and a fine of $250,000.

It will be up to the individual entertainment companies and software manufacturers to decide whether to display the new FBI warnings. Representatives of the various trade groups for the film, software and music industries said Thursday their members were studying whether to affix the warnings on packaging or directly on the CDs and DVDs, so it's unknown how soon they may begin to appear in the marketplace.

U.S. software companies lose up to $12 billion a year to piracy, according to the Software and Information Industry Association. Music companies lost more than $4.6 billion worldwide last year, according to the RIAA, and movie industry officials pegged their annual losses from bootlegged films at more than $3.5 billion.

The entertainment and computer industry has tried to stem piracy by making CDs and DVDs harder to duplicate. But the rise of free file-sharing networks on the Internet the past five years has made it easy for millions of individuals to distribute songs, movies and software worldwide.

The companies have tried civil litigation against firms who enable online file-sharing and last year, the recording industry launched an ongoing wave of lawsuits against individual file-sharers.

"We hope that this is an attention-grabbing reminder to music fans," said Brad Buckles, executive vice president of the Recording Industry Association of America. "Piracy is no victimless crime."

Monroe, whose FBI cyber division was created 18 months ago, said cyber crime is now the agency's third priority behind terrorism and counterintelligence.

Fred von Lohmann, a senior intellectual property attorney for the Electronic Frontier Foundation, said he doubts the new warning program will work.

"I'm under no illusions that this kind of label is going to change public perceptions," he said, adding the labels will likely get the same reaction that many people have had to the warnings that appear at the start of movie rentals.

"They found that much more annoying than edifying, and I think that's probably how this will be viewed."

Von Lohmann added the warnings are misleading because they don't explain to consumers that there are exceptions under copyright law, such as one that allows people to make backup copies of their software and other media.
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Old 02-20-2004, 06:55 PM   #2
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i still will never understand how this is so much worse than taping a cd. tape quality may be inferior, but it's not awful. maybe no one has tape decks and i'm just wierd.

when i was little i used to be afraid the FBI was watching me because of that warning. in truth, how are they goiong to find me and fine me if i make a copy of a cd for a friend? it's not like i'm running an illegal cd pressing business where i get 100% of the profits from my basement or anything.
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Old 02-21-2004, 01:19 AM   #3
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Lame.

Fight the power!
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Old 02-21-2004, 01:42 AM   #4
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Annnd I shall go to listen to the Clash's I Fought the Law..



I just don't understand why the RIAA and such are so deadset against mp3s and copying, when it isn't the problem -- poor prices and lack of money-generating acts are big problems, and the poor economy isn't doing a lot for the business, either. Not to mention the diverse tastes of music fans and the extremely narrow-minded radio stations and TV channels. As for the labels? Scaring your customers isn't exactly the best tactic, imho. iTunes is a very good step, but it bothers me how you can now download movies for 99 -- the same price iTunes has for a single song.
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Old 02-21-2004, 02:56 AM   #5
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speaking of i fought the law

i reeeally hate that commercial with the kids who are talking about how they got sued for downloading music and now they drink pepsi. i don't know what the fuck that was about, i was focusing on the terrible rendition of the song playing in the background.

dead kennedys did a decent version of the song. only instead of the law winning, they won...

die toten hosen's version kind of bores me. but 'i am the walrus' was cool.

about itunes though, can't you accidentally delete songs? i know i accidentally delete things all the time...maybe i just suck. and i've got this fear of something happening to cd-rs. plus i don't have a cd burner on my computer, i have to literally move music to zip discs to my mom's computer to burn cds (works fine, but stuff gets lost wheni'm not really careful).

itunes is too technologically advanced for me. and there's still that issue of not having the actual album...
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Old 02-21-2004, 07:13 AM   #6
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not the right way imo

The problem are the CD prices, the media pushing forward mostly pop/R&B/rap acts instead of serious musicians, and MTV only cares for music tastes of teens it seems.
Also annoying is that there are now 5 major labels (Sony, EMI, BMG, Universal and another one) owning what...90% of the market so they virtually control the industry and it's harder for non-mainstream acts to succeed.

*edit* it's also scary how no.1 single/album obsessed the industry has become. if a band's sales decrease, they're layed off.

To me, piracy hurts the unknown, small bands who may have problems with making it big. I don't think the biggest names in music really suffer from that - they still earn lots of money on albums, not to mention tours. (older bands who don't have much in album sales still are making huge profit on their tours alone)
There's also a difference between downloading live shows and official releases IMO, and a difference between hunting down average kids with a few downloads and chasing the huge downloading "nests" with 1000s of burned CDs.

To add to the confusion, CD burners and MP3 players are pefectly legal. Young costumers will obviously play the current hit music.
Last but not least, not all musicians have a problem with downloading.

Itunes and similar services are the right step, I think.
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Old 02-21-2004, 12:36 PM   #7
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I think bands and fans need to join together to fight against the record industry. If bands, through their Web sites, started selling individual songs and whole CDs to their fans directly, they could do so at a lesser cost because they're cutting out the middle man, the fans would be happy and the bands would, in the end, make more money.

There's going to be a huge implosion in the record industry, there has to be, things can only get so big before they fall apart.
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Old 02-21-2004, 03:19 PM   #8
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Re: not the right way imo

Quote:
Originally posted by U2girl
The problem are the CD prices, the media pushing forward mostly pop/R&B/rap acts instead of serious musicians, and MTV only cares for music tastes of teens it seems.
yeah, i just witnessed one of the better stores here move its rock stacks to the back of the store to make room for the rap/hip hop section. also i'm watching their patch and button selection go from decent more wellknown punk bands to the sum 41 simple plan ataris all american rejects crap. i walk in there and instead of hearing the shins playing (which as happened once, it was oh inverted world) i'm almost forced to leave immediatly because the sound of g-unit makes me want to kill people. right now my theory is that i'm in a good position as apparently being in the minority as far as what is purchased at that store. since the rock stuff is all out of alphabetical order and hiding in the back of the store, if you look, you will find, but it takes time and you have to really know what you're looking for in order to find it that way, something i don't think casual listeners are exactly going to do--they'll go back to the front of the store and get a nelly cd. and while they still have reasonable 12 and 13 dollar price tags on things i'd like to buy, i feel like i should buy the stuff i want before the prices jump so they can justify the decrease in rap prices...which leads me to my next point...

you've got big chains like media play, where you see 'oh wow, this linkin park album is only 11 bucks! they have good prices!'...and then you go dig out an album that you'd actually buy, and the case is all smashed up, it was in the wrong section anyway, you're just lucky you looked in the surrounding area rather than just behind the card, and it's $18.99.
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Old 02-21-2004, 03:23 PM   #9
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Quote:
Originally posted by dsmith2904
I think bands and fans need to join together to fight against the record industry. If bands, through their Web sites, started selling individual songs and whole CDs to their fans directly, they could do so at a lesser cost because they're cutting out the middle man, the fans would be happy and the bands would, in the end, make more money.

There's going to be a huge implosion in the record industry, there has to be, things can only get so big before they fall apart.
what about promotion stuff though? not only is there the large record label, but there are plenty of distro companies that help smaller labels in getting their albums out, as well as unsigned artists can use them.

crap. i had an arguement against this, but it relys on the radio actually playing MUSIC. so you're more right than i thought. nevermind.
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Old 02-21-2004, 03:44 PM   #10
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Too bad there wont be a FBI warning on mp3s when people download them.
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Old 02-21-2004, 03:56 PM   #11
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Re: not the right way imo

Quote:
Originally posted by U2girl
The problem are the CD prices, the media pushing forward mostly pop/R&B/rap acts instead of serious musicians, and MTV only cares for music tastes of teens it seems.

The funny thing is... the original 'mtv generation' isn't being serviced by MTV any longer.


back on topic though...

most big artists only make about $1 a cd... smaller artists make quite a bit less...

I've heard through industry folks I know that U2 makes about $2 a CD... but mostly because they own their own music (unlike most artists) and are a mega band.

The beautiful thing is... the RIAA is now being sued under federal laws for Racketeering. Here is one article... http://www.nj.com/news/ledger/jersey...8869350700.xml
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Old 02-21-2004, 08:54 PM   #12
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....the gov't is violating the social contract - our rights to experience the arts freely...."fight the power" - i agree....free flow of musical ideas will only benifit the arts in the long run....screw record companies - who care not for musical integrity
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Old 02-22-2004, 07:35 AM   #13
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Quote:
Originally posted by dsmith2904
I think bands and fans need to join together to fight against the record industry. If bands, through their Web sites, started selling individual songs and whole CDs to their fans directly, they could do so at a lesser cost because they're cutting out the middle man, the fans would be happy and the bands would, in the end, make more money.

There's going to be a huge implosion in the record industry, there has to be, things can only get so big before they fall apart.
While I'd be all for the selling of songs and albums online - at a reasonable price, unfortunately I don't think labels would allow their signed artists to do that.
As long as pop/hip-hop/rap/R&B invasion is as strong, and they keep picking up no.1's and awards, who's to say when it will stop?

One of the biggest issues IMO is how much the music labels themselves gain at a CD sale, and how much they're losing with all the downloading.
It's a shame when the musicians don't own the copyright to their music.

*edit* And after Madonna (sure she had a valid point, but the fact is she played it all on the looks to make it big), but more so with the success of boybands and Britney, a lot of new music is just so focused on looks and less on music and spreading any relevant message, except on spreading sensuality, it seems. Even the originally charged with social messages rap and hip hop turned (with some exceptions) into the one and the same "i'm a player, got lots of money, big cars and all the women I want" formula and huge budget, flashy videos with people of egomaniac attitudes.

In some ways, video did hurt the once so important, crucial aspect of songwriting part of music.

Elvis...yes, wasn't MTV suppose to be broader than the usual TRL demographic?
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Old 02-22-2004, 08:18 AM   #14
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The music industry is one which is too stupid to understand basic economics. Supply and demand principles. The price puts off the demand so much so that there is a huge level of complacency in regard to taking it off the internet and copying illegally from friends etc. Like the cassette tape phase and so on, this wasn't a problem. People copied off the radio or whatever but complaints about prices were no where near as common as now.
Pretty much every aspect of this which pisses me off, comes back to greed on the record companies. Their quest for $$$ means pushing the fads which do not last, but make them quick dollars. Boy bands, hip hop and r&b fads, the creed style types all lack substantial quality but are easily marketed to sell in large volumes. It's a production line of the latest fashions but in music. While this is all happening, they see the benefit of the payoff with prices. No need to reduce the costs when their methods of controlling the music industry so much is paying such great dividends. The result of this is a huge increase in people stealing what they prefer and the revolution in attitude. Not many people would still go into a record shop and literally steal any merchandise, but we justify it on the net or by burning off friends because it is easier to appease the guilt this way. I do it, and am as guilty as the next person. I am also however as greedy as the record companies and quite like my money. I spend it on what I view is worth it, and therefore wont accept the substandard quality for such overblown prices. If they want my money, they can kiss my arse and give me what I want. I am the consumer and should have some say.

I agree wholeheartedly with you dsmith, that there will be an implosion sooner or later. And I am going to laugh when it happens.
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Old 02-22-2004, 08:40 AM   #15
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Quote:
Originally posted by Angela Harlem
No need to reduce the costs when their methods of controlling the music industry so much is paying such great dividends.
the music industry is a bit too confident that they can market crap into our cd players

they've got enough money to spend
instead of investing it in talent they chose to invest it in marketing campagnes though

and make us pay for those campagnes with insane prices

they will get bitten in the arse sooner or later
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