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DCIA To MPAA: End P2P Boycott
At an event today sponsored by the Cato Institute focusing on peer-to-peer (P2P) file sharing and copyright law http://www.cato.org/events/040617f.html, the Distributed Computing Industry Association (DCIA) challenged the Motion Picture Association of America (MPAA) to encourage its members, major motion movie studios, to begin working with DCIA members, which include P2P software providers, to legitimize file sharing for films. In his remarks, DCIA CEO Marty Lafferty said, "Mr. Valenti, end the major studio boycott of peer-to-peer. Urge your members to work with us to counter copyright infringement and commercially develop file sharing to its full potential." The DCIA, currently with 18 member companies, is focused on helping entertainment companies and software providers find business solutions to issues that are currently more the province of litigation and legislative upheaval than commerce. "Our mission is to make it attractive for the Universal Musics and Paramount Pictures of this world to become wholesale suppliers, literally, to the Kazaas and Groksters, as online resellers of music and movies," said Lafferty. "We do not agree with those who claim that 'swapping movies and music' without compensating rights holders 'doesn't really hurt anybody.' "The way companies and consumers ought to behave towards each other, has to include rights holders licensing their content for P2P, and file-sharing companies accepting their role to protect that content. "Do not be misled. Without accepting the reality of distributed computing and its implications for digital-media distribution to the masses, the entertainment industries will not really offer consumers 'what they want, in the formats they want -- where they want it, when they want it, and at prices they can afford.' "DCIA Member Sharman Networks, the owner of Kazaa, would like nothing more than to lead the software sector to enter into licensing agreements with labels and studios. Members Altnet, INTENT MediaWorks, and Trymedia Systems offer rights holders a choice of digital-rights-management solutions, ranging from Windows Media to proprietary software like ActiveMARK. "Through their affiliations with programs like Kazaa, Grokster, Morpheus, and eDonkey, and web portals like Excite, 80 million Internet users can now locate, sample, and purchase digital entertainment via P2P. "Rights holders are paid when users redistribute content, and licensed files, labeled to verify their authenticity, are returned at the top of relevant search results. Altnet is already the largest distributor of legal entertainment files on the Internet. "DCIA Members Digital Containers, Clickshare, and SVC are adding even more advanced digital rights management and new commerce engines to further distance P2P from the old-architecture centralized download sites favored by the music industry. "Our Members Relatable, Predixis, and Shared Media Licensing (SML), are working to address unprotected files entered by consumers into P2P distribution. "The DCIA proposes six steps: * Entertainment content inventory (using Relatable software to create and monitor a fingerprint and file-metatag database). * Rights holder registry (comprising all interests for each piece of content, where multiple parties are entitled to remuneration). * Content verification (matching acoustic IDs with rights holder data to enable revenue allocation -- and the option to have high-quality files supplant inferior ones). * Rules application (addressing allowable content usage, SML-based user incentives, and benefit considerations). * Digital rights management (adding encryption and licensing-features for open format copies of identified content). * And payment services (facilitating a range of user-fee collection and content-provider payment options, from per-unit to actuarial). "This approach will optimize a balance between consumers' willingness to pay and rights holders' willingness to participate. Users will enjoy an abundance of entertainment with the efficiency and flexibility they expect from today's open P2P software programs. "We are now employing DCIA's consensus-based process to advance this solution in the private sector, before approaching Congress for any needed legislative support. "We'd like to engage with P2P software providers and major content companies not only to exploit the revenue-generating opportunities currently available, but more importantly to collaborate on the more advanced solutions. "Our research shows that the music industry alone could enjoy a 10% compounded growth rate and more than $900 million per month in incremental revenue by embracing peer-to-peer. "And we believe the movie industry could more than match its pay-per-view and video-on-demand revenues, through file sharing."
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