Illegal Downloading

The Chairman and CEO of the International Federation of the Phonographic Industry, John Kennedy, used the first day of The Music Show at the R.D.S. to call on the Irish government to show leadership in the fight against illegal downloading, which is costing the industry here millions in lost revenues every year.

“I hope that we can see all ISPs in Ireland follow Eircom’s lead and voluntarily come to the table to implement a graduated response approach to online copyright infringement,” said Kennedy, a lawyer who in his role with the IFPI gave evidence on behalf of record companies at the recent Pirate Bay trial. “If not, I hope the Irish government will show the leadership that other countries are showing. Ireland has a rich cultural heritage, but we must not let it become a museum piece.
“We need investment in the next generation of talent,” he added. “That means that creative companies must be able to be paid for their work and that great artists should be able to forge a livelihood from their talent.”
Kennedy’s comments represent a direct challenge to the Minister for Communications to deal with an issue that is directly affecting everyone involved in music. Giving examples of what’s been happening elsewhere in terms of anti-piracy measures, Kennedy continued: “President Sarkozy of France took a lead in this area, realising that French culture was threatened. Countries from South Korea to Sweden have recently tightened copyright laws relating to online content. In the UK, the government has committed itself to reducing online piracy. It is consulting on legislation that will be introduced in the Queen’s Speech this November.”
The IFPI man, who was awarded an OBE in 1985 for his work with Band Aid and Live Aid, also praised Lily Allen for changing the attitudes of fellow musicians.
“One group, the Featured Artists Coalition, initially came out strongly against any sort of action against those who infringe copyright law,” he reflected. “Ed O’Brien of Radiohead said: ‘File-sharing is like a sampler, like taping your mate’s music. You go, ‘I like that, I’ll go and buy the album’. Or, ‘You know what, I’ll go and see them live.’ Lily Allen led a spirited campaign against this line of thinking. She courageously pointed out that many of the artists in the FAC had forged their careers in music over many years, with investment from record companies, and were now able to rely on touring income. She reminded them that the acts struggling to get their break were not in the same boat. She attracted the support of a broad range of artists from Tinchy Stryder and James Blunt to Elton John and Mark Ronson.”
Kennedy stressed that the IFPI and its record company members are keen to embrace new business models.
“New technology has offered music companies the opportunity to licence more than 10 million tracks to over 500 legal online services worldwide,” he proffered. “At the same time, the abuse of technology has drained income from the music industry, with 95% of music downloads worldwide being unlicensed and unpaid for. Music companies invest 20% of their revenues in A&R, but this is a percentage of a declining absolute figure, making it harder for new acts to get the break they need.”
Kennedy is confident that a lot of the damage caused to the music industry by piracy can be reversed.
“We believe that some form of ‘graduated response’ by ISPs, the gatekeepers of the internet, will migrate users from illegal to legal services,” he suggested. “Figures from Sweden show that digital and physical music sales increased when the law was tightened. Research in France has suggested that 90% of illegal file-sharers would stop on receipt of a second warning from their ISP if they knew there were sanctions if they continued to break the law.”
For his part, Shane O’Neill of Liberty Global, who run the major cable company in Ireland UPC – who are also broadband providers – made it clear that his company are looking for a constructive way forward.
“My message is that we shouldn’t be fighting or sueing one another,” he told Hot Press. “Illegal file-sharing is not in anyone’s interests. I don’t like using that terrible word, but it is as important for telecoms as it is for artists and for record companies to monetise the use of music and the distribution of music in electronic form. We’re prepared to play our part in that. So rather than fighting, let’s go together and negotiate with government to get legislation that enables that to happen. I’m prepared to do that.”
It was a point re-iterated by O’Neill during what was at times a heated debate, with James Killock of the Open Rights Group in the UK arguing that it was wrong to target the consumer, and pointing to the need for a far more accessible licensing system. The potential of new business models was debated, with John Kennedy sounding an optimistic note about the advertising-supported model being pioneered by Spotify.
However, this was dismissed as “a busted flush” by Shane O’Neill, who pointed out that Spotify had 2 million customers, only 40,000 of whom were premium subscribers, who actually paid for their downloads.
“And all of Spotify’s revenues are coming from these 40,000 people,” he said, insisting that consumers had to be convinced again that music was something they had to pay for.
Speaking as an artist, Bill Whelan, composer of Riverdance, spoke passionately and eloquently about the fact that there was a fundamental right, which was being abused by those who engaged in illegal file-sharing.
“It’s time for us, as artists, to stand up and assert that right,” he said, to loud applause from the floor.
While Jim Killock remained a largely dissenting voice, a consensus did emerge among most of the panelists, which seemed to be shared by the vast majority in the room. It was, perhaps, best summed up by John Kennedy.
“Of course, we don’t all agree on everything,” he concluded. “There is always some friction in all commercial partnerships. But we recognise our essential interdependence. We know that we either stand together or we all ultimately suffer.”
After the debate, IRMA CEO Dick Doyle – who had been planning to take UPC to court, in an action similar to that ultimately settled by Eircom – was optimistic that The Music Show had been the scene of an important breakthrough. “That was a very good session,” he commented. “What Shane O’Neill said was very significant. If we can follow that up with a meeting, and put an agreed policy in place that we can take to Government, then it’s a very strong position to be in.”
Interesting times ahead, it seems...