An anonymous reader writes "Last week, we discussed Techdirt's tale of 'Hollywood Accounting,' which showed how movies like Harry Potter still officially 'lose' money with some simple accounting tricks. This week Techdirt is taking on RIAA accounting and demonstrating why most musicians — even multi-platinum recording stars — may never see a dime from their album sales. 'They make you a "loan" and then take the first 63% of any dollar you make, get to automatically increase the size of the "loan" by simply adding in all sorts of crazy expenses (did the exec bring in pizza at the recording session? that gets added on), and then tries to get the loan repaid out of what meager pittance they've left for you. Oh, and after all of that, the record label still owns the copyrights.' The average musician on a major record deal 'gets' about $23 per $1,000 made... and that $23 still never gets paid because it has to go to 'recouping' the loan... even though the label is taking $630 out of that $1,000, and not counting it towards the advance. Remember all this the next time a record label says they're trying to protect musicians' revenue."

Khalid Baheyeldin writes "In his New York Times op-ed column, Irish singer Bono, otherwise noted for his humanitarian efforts expressed dismay at losses music artists incur from internet downloads. He notes that 'we know from America's noble effort to stop child pornography, not to mention China's ignoble effort to suppress online dissent, that it's perfectly possible to track content.' He then goes on to wonder 'perhaps movie moguls will succeed where musicians and their moguls have failed so far, and rally America to defend the most creative economy in the world, where music, film, TV and video games help to account for nearly 4 percent of gross domestic product.'"

pmdubs writes "Following up on our earlier discussion, Michael Freedman updates us on experience with dubious DMCA takedown notices. As a result of the publicity his initial post received, the Video Protection Alliance has dropped Nexicon, the company to which they had outsourced infringement detection. In this case, while there may be little legal recourse to issuing invalid DMCA notices, the threat of bad press seems to have reined in highly questionable practices."

cnet-declan writes "Attorney General Alberto Gonzales is asking Congress to make 'attempted' copyright infringement a federal crime. The text of the legislation as well as the official press-release is available online. Rep. Lamar Smith, a key House Republican, said he 'applauds' the idea, and his Democratic counterpart is probably on board too. In addition, the so-called Intellectual Property Protection Act of 2007 would create a new crime of life imprisonment for using pirated software in some circumstances, expand the DMCA with civil asset forfeiture, and authorize wiretaps in investigations of Americans who are 'attempting' to infringe copyrights. Does this go too far?"

NewYorkCountryLawyer writes "Distinguished Harvard University Law School Professor Charles Nesson has called upon Harvard University to fight back against the RIAA and stand up for its students, writing 'Seeking to outsource its enforcement costs, the RIAA asks universities to point fingers at their students, to filter their Internet access, and to pass along notices of claimed copyright infringement. But these responses distort the University's educational mission. ...[W]e should be assisting our students both by explaining the law and by resisting the subpoenas that the RIAA serves upon us. We should be deploying our clinical legal student training programs to defend our targeted students.'"

The Illegal Subset of the Integers writes "According to Ars Technica, Congress has sent letters to 19 universities identified by the RIAA and MPAA as havens for copyright infringement. In it, they not only seek to discover what these universities are doing to dissuade students from infringing activities, but give the implied threat. House Judiciary Committee member Lamar Smith (R-TX) was quoted as saying, 'If we do not receive acceptable answers, Congress will be forced to act.' One wonders, though, what the universities are supposed to do when international disrespect for imaginary property rights is so widespread that there are currently over two million hits on Google for a certain oft-posted illegal number, up from the three hundred thousand hits from sometime yesterday."

Jonas Wisser writes "The BBC is carrying the story that AACS has promised to take action against those who have posted the AACS crack online. Michael Ayers, chairperson of AACS, noted that the cracked key has now been revoked, and went on to say, 'Some people clearly think it's a First Amendment issue. There is no intent from us to interfere with people's right to discuss copy protection. We respect free speech.' The AACS website tells consumers how they can 'continue to enjoy content protected by AACS' by 'refreshing the encryption keys associated with their HD DVD and Blu-ray software players.'"

Tuoqui writes "With all the focus on the infamous hexadecimal number, people may be ignoring a bigger weakness in the AACS armor, which emerged two weeks ago. Some hackers have figured out how to crack AACS in a way that cannot be defeated, even by revoking all the keys in circulation."

Rudd-O writes "Months after successful discovery of the HD-DVD processing key, an unprecedented campaign of censorship, in the form of DMCA takedown notices by the MPAA, has hit the Net. For example Spooky Action at a Distance was killed. More disturbingly, my story got Dugg twice, with the second wave hitting 15,500 votes, and today I found out it had simply disappeared from Digg. How long until the long arm of the MPAA gets to my own site (run in Ecuador) and the rest of them holding the processing key? How long will we let rampant censorship go on, in the name of economic interest?" How long before the magic 16-hex-pairs number shows up in a comment here?

NewYorkCountryLawyer writes "In an attempt to change the rules of the game, the RIAA secretly went to a federal district court in Denver with an ex parte application. The goal was to get the judge to rule that the federal Cable Communications Policy Act does not apply to the RIAA's attempts to get subscriber information (pdf) from cable companies. Just to clarify, ex parte means that the application was secret, no one else — neither the ISP nor the subscribers — were given notice that this was going on. They were, in effect, asking the Court to rule that the RIAA does not need to get a court order to be able to force an ISP to disclose confidential subscriber information. The Magistrate Judge declined to rule on the issue (pdf), but did give them the ex parte discovery order they were looking for."

Dominare writes "The BBC is reporting that Adobe is releasing new player software which will allow websites that use their Flash video player (such as YouTube) to force viewers to watch ads before the video they selected will play. 'But the big seller for Adobe is the ability to include in Flash movies so-called digital rights management (DRM) — allowing copyright holders to require the viewing of adverts, or restrict copying. "Adobe has created the first way for media companies to release video content, secure in the knowledge that advertising goes with it," James McQuivey, an analyst at Forrester Research said.' This seems to have been timed to coincide with Microsoft's release of their own competitor, Silverlight, to Adobe's dominance of online video."

An anonymous reader writes "With U.S. copyright royalties threatening to kill Internet radio in the U.S., Michael Geist explains why webcasters considering a move to Canada will find that the legal framework for Internet radio trades costs for complexity. There are two main areas of concern from a Canadian perspective — broadcast regulation and copyright fees. The broadcast side is surprisingly regulation-free, but there are at least three Canadian copyright collectives lining up to collect from Internet radio stations."

WSJdpatton writes "WSJ's Walt Mossberg takes a look at what's wrong with the DMCA and DRM given the recent lawsuit brought against Google's YouTube by media giant Viacom — 'Under fair use, as most nonlawyers have understood it, you could quote this sentence in another publication without permission, though you'd need the permission of the newspaper to reprint the entire column or a large part of it. A two-minute portion of a 30-minute TV show seems like the same thing to me. But why should I have to guess about that? What consumers need is real clarity on the whole issue of what is or isn't permissible use of the digital content they have legally obtained. And that can come only from Congress. Congress is the real villain here, for having failed to pass a modern copyright law that protects average consumers, not just big content companies.'"

RockDoctor writes "Northern Ireland has for decades been using sniffer dogs to detect bombs and bomb-making materials. According to the BBC, a dog trainer in the Province has trained two dogs to sniff out some of the chemicals used in the manufacture of optical discs. While this has an obvious risk of false positives (polycarbonate plastics and their associated plasticizer additives are used in many other industries, for example), it does seem to be effective at locating discs which are not declared in customs manifests, and doing so much faster than human inspection of the cargo can do."

jmcharry sent in an article that opens, "After the Copyright Royalty Board (CRB) decided to drastically increase the royalties paid to musicians and record labels for streaming songs online, National Public Radio (NPR) will begin fighting the decision on Friday, March 16 by filing a petition for reconsideration with the CRB panel."