A Phony Moral Debate Against P2P

[David Farber <dave () farber net>]

------ Forwarded Message
From: Barry Ritholtz <ritholtz () optonline net>
Date: Tue, 05 Apr 2005 09:14:28 -0400
To: David Farber <dave () farber net>
Subject: A Phony Moral Debate Against P2P

Hey Dave, 

There was an extremely obnoxious WSJ op/ed about Grokster on Friday. It
appears the recording industry expects to lose the Supreme Court case, so
they are now gearing a new line strategy -- "Don't download cause its
wrong." 

After reading it on the train home, I did a slow burn over the weekend.
Being lectured on ethics from the Recording Industry was simply too much for
me to bear. The result is a suitably scathing response. Its probably too
long to reproduce for IP, but you can see the piece in full here
(http://bigpicture.typepad.com/comments/2005/04/new_arguments_a.html)
 
Here's an excerpt: 
 
New Arguments Against P2P: The Phony Moral Debate
http://bigpicture.typepad.com/comments/2005/04/new_arguments_a.html
 
³Its Illegal.²  That¹s the phrase the Recording Industry have been chanting
nonstop for the past 5 years. It has been the mantra of the big labels and
studios ever since Napster winked into existence.

 But a subtle shift is already underway. As we await the Supreme Court¹s
decision in the Grokster case, the industry -- or in this case, its
apologists -- is positioning itself for a defeat on the merits. They want
and need a fall back position, in the event the Supreme Court decides not to
overturn the well settled law -- "substantial non infringing use" -- of Sony
BetaMax case. 

 If the Betamax decision is not overturned, than on the law, the case is
over: Articles such as this one -- File-sharing case worries Indie artists
(http://abcnews.go.com/Technology/wireStory?id=611968)  -- incontrovertibly
demonstrate the inescapable conclusion that not only are there substantial
non infringing uses for P2P, but they are from direct business competitors
to the Big Labels. If P2P is quashed, it would have the effect of limiting
competition to the majors from the small, underfunded, scrappy independents.

 And that¹s even before we get to the issue of stifling technological
innovation. 

Indeed, knowledgeable observers have long since figured out that P2P is not
about copyright at all. Instead, its about disintermediation -- getting the
Labels out of the middle, removing them from between the artist and the
listener. Of course the labels are horrified about P2P -- it makes them
irrelevant. Who the hell wants to be replaced by a collaborative filter?

So a new approach has been hatched: Apologists for the industry are
replacing the catchphrase ³Its illegal² with a new mantra. Are you ready to
hear what it is? (Hold onto your seat):  ³Its morally wrong.²

Allow that to sink in a moment. One of the most corrupt, decadent, morally
bankrupt industries the planet has ever seen is now making the argument that
people should not use P2P -- due to the ethical considerations.

I find that approach utterly fascinating, more than a little infuriating,
and outright hilarious -- all at once. The Recording Industry must be
hellbent on getting into the Guinness Book of World Records for the most
hypocritical, disingenuous, cynical, and intellectually dishonest arguments
in the history of mankind.

You want to play that way? OK, I'm game. Let¹s go along. If the industry
wants to have a discussion on morality, lets have a closer look at this
black kettle, the house of glass they want to throw stones from. Let's
examine how the industry arrived at where it is today -- but according to
their wishes, from an ethical standpoint . .  .

 

Cheers, 



Barry L. Ritholtz  
Chief Market Strategist
Maxim Group  
405 Lexington Avenue,
New York, NY 10174 
(212) 895-3614  
(800) 724-0761  
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The Big Picture: Macro perspectives on the Capital Markets, Economy, and
Geopolitics   
http://bigpicture.typepad.com/comments

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