1. The Ethics Of Digital Music What Is The Future Of Copyright???

2. Overview What is Digital Music? What is MP3? –Why is it so Important? What is Copyright? –Why is it so Important? The Big Question - Who Owns Music? Conclusions/Summary

3. What is Digital Music? Conventional “Physical” Format –DAT, CD, MiniDisc Ephemeral “Computer” Format –WAV, AIFF Compressed “Computer” Format –MP3, RealAudio Controlled “Encrypted” Format –Liquid Audio, SDMI

4. What is MP3? MPEG Layer 3 Audio Compression Extremely efficient compression algorithm The most searched-for term on the Internet The Hellspawn of Satan Himself...

5. Why is MP3 So Important? Who Benefits? –Consumers –Artists –Online Distributors –MP3 Software Producers

6. Why is MP3 So Important? Who Loses? –CD Producers –CD Retailers –Record Labels

7. What is at Stake? Digital music downloading could generate U.S. revenues of $1.1 billion by 2003 (Forrester Research) Global recorded music revenues: $38.1 billion $$$

8. What is Copyright? “Protection provided to the authors of original works of authorship” Literarature & Drama Musical Works Artistic Works PROBLEM: Very Ambiguous when applied to the digital world

9. Why is Copyright so Important? Protects creativity & innovation? Protects established business? Ethically the “Right thing to do?” Onerous in a digital world Hassles consumers Easy to circumvent

10. Copyright Ethics Copyright stifles technical creativity –e.g. Lycos, Napster, MP3.com Why do we need record labels? EmpowermentGoal: Free market for consumers buzzword: Empowerment

11. A World Without Copyright... Streamlines entire production process Better for the Environment Ease of use for consumers Bands can gain exposure rapidly What about the crap on MP3.com?

12. The Big Question Who Owns the Music? Copyright is so 20th Century... Can the RIAA (or anyone) stop MP3? It’s a Bandwidth Issue Why do we hear so little from Musicians? Time for a New Model - Enable Consumers!

13. The Artists Created it, They Should Control it... Many bands already run websites Small bands can utilize other services Great promotional tool But how will they make money?

14. Ethical Dilemmas People like having access to free music Why buy a $20 CD for one song? Crackers omnipresent MP3 is not used exclusively for music… RIAA vs. Diamond Multimedia RIAA vs. MP3.com

15. More Ethical Weirdness... The Digital Millenium Copyright Act: Users can circumvent security measures "for the purpose of enabling interoperability of an independently created computer program with other programs."

16. A Solution??? Digital Music Subscription Service High Quality, High Speed, Inexpensive Unlimited Download Share with your friends Encryption? What happens when contract expires?

17. Conclusions/Summary Prevailing Attitudes Will Change Eliminate the Middleman Empower the Consumer!! The Live Music Model Subscription Service The Music “Community”