1. Digital Audio

2. Analog versus Digital Analog Sound waves “similar” or “copy” Electrical impedance creates noise Digital Sound encoded in binary form Sampled many times a second

6. Important Laws Audio Home Recording Act of 1992 Can record music for private use The Digital Performance Right in Sound Recordings Act of 1995 Sound recording owners can authorize transmission of digital sound No Electronic Theft Law of 1997 Profit not necessary for prosecution

7. Digital Millennium Copyright Act of 1998 1. Makes it a crime to circumvent anti-piracy measures built into most commercial software. 2. Outlaws the manufacture, sale, or distribution of code-cracking devices used to illegally copy software. 3. Permits the cracking of copyright protection devices, however, to conduct encryption research, assess product interoperability, and test computer security systems. 4. Provides exemptions from anti-circumvention provisions for nonprofit libraries, archives, and educational institutions under certain circumstances. 5. In general, limits Internet service providers from copyright infringement liability for simply transmitting information over the Internet. 6. Service providers, however, are expected to remove material from users' web sites that appears to constitute copyright infringement. 7. Limits liability of nonprofit institutions of higher education -- when they serve as online service providers and under certain circumstances -- for copyright infringement by faculty members or students. 8. Requires that "webcasters" pay licensing fees to record companies. 9. Requires that the Register of Copyrights, after consultation with relevant parties, submit to Congress recommendations regarding how to promote distance education through digital technologies while "maintaining an appropriate balance between the rights of copyright owners and the needs of users." 10. States explicitly that "[n]othing in this section shall affect rights, remedies, limitations, or defenses to copyright infringement, including fair use..."

8. Royalties Half of Royalties collected by SoundExchange must go to artists 45% to featured artist 2.5% to non-featured musicians 2.5% to non-featured vocalists

9. Digital Storage Digital Audiotape Compact Disc MiniDiscs MP3 DVD-Audio Hard-Drive Jukebox

10. Key Questions Which digital format will consumers adopt? How will copyright protection affect consumers choices?

11. Most Recent Developments iPod File Sharing continues to increase despite many law suits. More Gnutella type networks Podcasting gets more and more popular DualDiscs? Maybe Portable devices outsell home devices