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Lecture 08

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Lecture 08

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fa23-bse-089
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4.

4 Fair Use

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Fair Use Concept

• Sometimes legal to reproduce a


copyrighted work without permission
• Courts consider four factors
– Purpose and character of use
– Nature of work
– Amount of work being copied
– Affect on market for work

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Sony v. Universal City Studios

• Sony introduced Betamax VCR (1975)


• People started time shifting TV shows
• Movie studios sued Sony for copyright
infringements
• U.S. Supreme Court ruled (5-4) that time
shifting is fair use

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Time Shifting

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Digital Recording Technology

• Copying from vinyl records to cassette tapes


introduced hiss and distortions
• Introduction of compact disc a boon for music
industry
– Cheaper to produce than vinyl records
– Higher quality
– Higher price  higher profits
• BUT it’s possible to make a perfect copy of a CD

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Audio Home Recording Act of 1992

• Protects rights of consumers to make copies of


analog or digital recordings for personal,
noncommercial use
– Backup copy
– Give to family member
• Digital audio recorders must incorporate Serial
Copyright Management System (SCMS), so
consumers can’t make a copy of a copy

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RIAA v. Diamond Multimedia

• MP3 compression allowed songs to be stored in


10% of the space, with little degradation
• Diamond introduced Rio MP3 player (1998)
• People started space shifting their music
• RIAA started legal action against Diamond for
violation of the Audio Home Recording Act
• U.S. Court of Appeals, 9th Circuit, affirmed that
space shifting is consistent with copyright law

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Space Shifting

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Kelly v. Arriba Soft

• Kelly: Photographer maintained Web site


with copyrighted photos
• Arriba Soft: Created search engine that
returned thumbnail images
• Kelly sued Arriba Soft for copyright
infringement
• U.S. Court of Appeals, 9th Circuit, affirmed
that it was fair use
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Google Books

• Google announced plan to scan millions of books held by


several huge libraries, creating searchable database of
all words
• If public domain book, system returns PDF
• If under copyright, user can see a few sentences; system
provides links to libraries and online booksellers
• Authors Guild and publishers sued Google for copyright
infringement (copying books for commercial reasons)
• Out-of-court settlement reached

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Benefits of Proposed Settlement

• Google would pay $125 million to resolve legal claims of


authors and publishers and establish Book Rights Registry
• Readers would have much easier access to out-of-print
books at U.S. public libraries and university libraries
• University libraries could purchase subscriptions giving
their students access to collections of some of world’s
greatest libraries
• Authors and publishers would receive payments earned
from online access of their books, plus share of advertising
revenues

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Criticisms of Proposed Settlement

• Google should have gone to court


– Google had a good case that its use was a fair use,
based on precedent of Kelly v. Arriba Soft
– If Google had been found not guilty of copyright
infringement, it could have given public access to books
at lower rates
• Agreement gives Google a virtual monopoly over
orphaned works
• Potential chilling effect of Google tracking the
pages that people are viewing
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Court Rejects Proposed Settlement

• March 2011: U.S. District Court for


Southern District of New York rejected
proposed settlement
• Judge ruled agreement would have:
– Given Google significant advantage over competitors
– Rewarded Google for “wholesale copying of
copyrighted words without permission”
– Given Google liberal rights over orphaned works

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4.5 New Restrictions on Use

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Counterfeit CDs = Lost Profits

© Reuters/CORBIS
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Digital Millennium Copyright Act

• First big revision of copyright law since 1976


• Brought U.S. into compliance with Europe
• Extended length of copyright
• Extended copyright protection to music
broadcast over Internet
• Made it illegal for anyone to
– Circumvent encryption schemes placed on digital
media
– Circumvent copy controls, even for fair use purposes

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Digital Rights Management

• Actions owners of intellectual property in


digital form take to protect their rights
• Approaches
– Encrypt digital content
– Mark digital content so devices can recognize
content as copy-protected

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Secure Digital Music Initiative

• Goals
– Create copy-protected CDs
– Secure digital music downloads
• Consortium of 200 companies developed “digital
watermarking” scheme
• Failed
– Internet copying became huge before SDMI ready
– Some SDMI sponsors were electronics companies
– Digital watermarking encryption cracked

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Sony BMG Music Entertainment Rootkit

• Millions of audio CDs shipped with Extended Copy


Protection, a DRM system
• Prevented users from
– Ripping audio tracks into MP3 format
– Making more than 3 backup copies
• Relied upon Windows “rootkit” that hid files and
processes; usually only hackers use rootkits
• Huge public outcry once secret uncovered
• Sony BMG stopped production and compensated
consumers
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Encrypting DVDs
• Contents of DVDs encrypted using
Content Scramble System (CSS)
• Need decryption keys to view a DVD
• Jon Johansen wrote a decryption program
for Linux
• 2600 Magazine published the code
• Motion picture studios sued 2600
Magazine and won
• Johansen tried in Norway and found not
guilty
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Foiling HD-DVD Encryption

• Hardware, software, and entertainment


companies created Advanced Access Content
System to encrypt HD-DVDs
• Encryption key posted on Digg.com
• AACS leaned on Digg.com to censor postings
containing key
• Digg users fought back
• AACS “expired” the key and issued a new one
• A month later, a Digg user posted the new key
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Criticisms of Digital Rights Management

• Any technological “fix” is bound to fail


• DRM undermines fair use
• DRM could reduce competition
• Some schemes make anonymous access
impossible

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Online Music Stores Employed
Digital Rights Management
• When iTunes Music Store opened, all music was
protected with a DRM scheme called FairPlay
• FairPlay blocked users from freely exchanging purchased
music
– Songs couldn’t be played on more than 5 different computers
– Songs couldn’t be copied onto CDs more than 7 times
• Songs purchased from iTunes Store wouldn’t play on
non-Apple devices
• DRM-protected music purchased from other online
retailers couldn’t be played on iPod
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Online Music Stores Drop Digital
Rights Management
• Consumers complained about restrictions
associated with DRM
• European governments put pressure on Apple to
license FairPlay or stop using DRM
• Amazon reached an agreement with all four
major music labels to sell DRM-free music
• Apple followed suit in 2009

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Microsoft Xbox One
• Microsoft announced cloud-based gaming experience for
Xbox One (June 2013)
– User could play any game without disc in tray
– Automatic software updates of every Xbox One
• Controversial features of licensing arrangement
– Disc could be shared only once
– Second-hand market restricted
– Xbox consoles would have to check in every 24 hours
• Microsoft backtracked
– No need to connect to Internet
– Freedom to lend, rent, buy, sell discs
– Disc must be in tray to play game
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4.6 Peer-to-Peer Networks and
Cyberlockers

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