FC: How Hollywood fights MP3 and Napster battles in Congress

[Declan McCullagh <declan () well com>]

[As always, CRP provides us with useful figures. But this time CRP's 
analysis misses the point. Their note below says, when it comes to battles 
in Congress over intellectual property legislation and campaign 
contributions, "surprisingly, the entertainment industry (TV/Movies/Music) 
and high tech are almost neck and neck in this year's money race." But the 
entertainment industry and high tech are *allies* here, not enemies. Look 
at the Business Software Alliances's visit to DC last week, when Bill Gates 
and execs from Intel, Adobe, Network Associates, Autodesk, etc. showed up 
to demand "strong copyright protection." They'll be up on the Hill linking 
arms with Disney and the RIAA -- as they did on the DMCA -- not opposing 
ways to limit piracy. I suppose Napster and MP3.com could weigh in with 
campaign contributions, but that hasn't happened yet, and I don't expect it 
to ever be substantial. --Declan]


*******

> Date: Mon, 12 Jun 2000 12:38:38 -0700
> From: Center for Responsive Politics <hbailey () crp org>
> To: Declan McCullagh <declan () wired com>
> Subject: Money in Politics: June 12, 2000
> Reply-To: hbailey () crp org
>
> CENTER FOR RESPONSIVE POLITICS
> MONEY IN POLITICS ALERT
> Vol. 5, #48 June 12, 2000
> tel: 202-857-0044, fax: 202-857-7809
> email: info () crp org, web: www.opensecrets.org
>
> Land of the MP3:
> A Look at Hollywood's Lobbying
> on Napster & Copyright Issues
>
> By Holly Bailey
>
> Over the last few months, members of Congress have been quite
> vocal about their supposed hesitancy in regulating the Internet.
> Some have talked up plans to extend a moratorium, if not permanently
> ban, the collection of sales tax on the web, while other lawmakers
> have pushed proposals that would leave largely unregulated the
> gathering and use of personal information captured on the Internet.
>
> In short, both Democrats and Republicans this election year have
> dedicated a significant amount of their time accommodating the
> tech sector, seemingly in hopes of securing bragging rights as
> the party choice of the new economy. But Hollywood titans, powerful
> in their own right, are hoping to change Congress' hands-off
> attitude about the Internet, if only on one small issue.
>
> The entertainment industry, which has contributed more than $15.5
> million to federal parties and candidates this election cycle,
> is lobbying Congress to crack down on copyright infringement
> on the Internet. Specifically, Hollywood wants lawmakers to pass
> legislation that would require computer and Internet companies
> to include technology that would prevent movies and music from
> being pirated on the Web.
>
> The request comes as record companies, led by the Recording Industry
> Association of America, have filed suit against two controversial
> websites (Napster and MP3.com) that allow users to swap high-quality
> music files, or MP3s, with little regard to copyright laws. Napster,
> among the most popular of the music-sharing sites, has also been
> sued by the rock band Metallica and rapper Dr. Dre. The artists,
> along with the RIAA, claim the sites are undermining their revenues
> by allowing users to illegally copy music and burn the songs
> on a CD via one's home computer.
>
> But it's not just music that's being downloaded on the Net. Movie
> studios claim that faster computers and Internet connections
> are making it easier for people to illegally post full-length
> motion pictures on the Internet, too. Disney chairman Michael
> Eisner last week told a meeting of more than 100 House and Senate
> lawmakers that Internet piracy is "the most devastating thing
> that's happened to the entertainment industry in 75 years."
>
> So far, tech companies have stood their ground, pressuring Congress
> to hold off on any legislation that would crack down on sites
> like Napster. And to date, Congress is listening, though lawmakers
> have expressed sympathy for Hollywood's plight. Senate Judiciary
> Chairman Orrin Hatch told Eisner last week that he would hold
> hearings on the issue, even though he hopes the competing industries
> can strike a deal on their own.
>
> But if Congress were to choose sides, who would be the victor?
> If political contributions are any judge, lawmakers face a difficult
> choice. That's because, surprisingly, the entertainment industry
> (TV/Movies/Music) and high tech are almost neck and neck in this
> year's money race.
>
> Though Hollywood's $15.5 million in soft money, PAC and individual
> contributions are almost double the money given at this point
> in the last presidential election cycle, high tech donors aren't
> far behind. The computer industry has accounted for roughly $13.5
> million in contributions this election cycle, roughly three times
> the contributions given at this point in 1996. Democrats are
> leading the money chase from both industries -- though the party
> has only a slight edge over Republicans from high tech, while
> entertainment industry donors favor Democrats nearly two-to-one.
>
> Click here for a breakdown on entertainment industry campaign
> contributions, including donations to members of the House and
> Senate:
>
> http://www.opensecrets.org/alerts/v5/alertv5_48.htm

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