I think collin intended to share this with the list as well as sending it
to me.

Kelly


----- Original Message -----
From: "Colin R. Howard" <[log in to unmask]>
To: "Kelly Pierce" <[log in to unmask]>
Sent: Monday, April 08, 2002 8:39 PM
Subject: Re: [VICUG-L] Universal to release copy-protected CD in U.S.


Greetings listers,

I would have thought the piraters can get around any copy protection
system
by feeding the digital output from a standard cd-player in which scms has
been disabled or can be switchable, then feeding the digital output from
a
pc using a program which simply reads bit-by-bit from start to end of
disk
into an image, then comparing the image against the feed from the
cd-player
and removing the differences hence the new cd is made having removed any
code inserted to block copying.  It would not matter what they try and do
to stop this, it would never succeed.

Cheers.
To: [log in to unmask]
Subject: [VICUG-L] Universal to release copy-protected CD in U.S.
From: Kelly Pierce <[log in to unmask]>
Date: Tue, 18 Dec 2001 19:04:09 -0600

For thos not familiar with the specifics of the music issue beyond
Nabster, it is possible and quite popular to make an exact duplicate copy
of a music CD with a $50 CD curner and free software.  The tracks on the
CD are digital files, albeit very large ones, and the copy sounds just
like the original.

Kelly


San Jose Mercury news

December 16,2001


Universal to release copy-protected CD in U.S.

The world's largest record company will be the first of the major labels
to release a copy-protected CD in the United States, signaling a new
chapter in
the industry's efforts to stem music piracy.

When Universal Music Group on Tuesday releases the soundtrack, ``Fast &
Furious -- More Music,'' consumers won't be able to copy the music onto
another
CD or use their PCs to ``rip'' tracks in digital MP3 format. The
copy-protection technology will also render the disc unplayable on
Macintosh computers,
DVD players and game consoles, such as Sony's PlayStation 2. It might not
even play in some CD players.

The industry says it needs to use the lock-box approach to music to
prevent consumers, armed with CD-authoring software and hardware and a
quick Internet
connection, from downloading and burning the recording industry out of
existence.

``Unfortunately, phenomenon like Napster and the ease of `ripping and
burning' are causing artists and record companies real harm,'' said
Hilary Rosen,
head of the Recording Industry Association of America. ``The
unprecedented amount of music being copied is hurting the industry.''

Universal Music is the most aggressive in its anti-piracy efforts, saying
that all of its CDs will be copy-protected by mid-2002. The other big
labels are
also experimenting with various technologies. But they're waiting to
gauge reaction from consumers and retailers before introducing such
recordings in
the United States.

``I'm very, very curious to see what happens,'' said Christa Haussler,
BMG Entertainment's vice president of new technology. ``Because it is not
clear if
it will become truly a usability issue, or if this is more of a PR
question.''

BMG's own experiments with Midbar Technology's copy-thwarting Cactus Data
Shield produced raging backlash in Europe, with consumers returning discs
as defective.
The German label was forced to issue replacement CDs for the new Natalie
Imbruglia release, ``White Lilies Island,'' because the CD didn't play on
some
CD and DVD players. It has not introduced any copy-protected discs in the
United States.

One United Kingdom-based group of consumer activists, the Campaign for
Digital Rights, staged a month-long protest against Sony Music
Entertainment after
it issued Michael Jackson's new single, ``You Rock My World,'' with
copy-protection that limited its play to stereos. Sony said it limited
its copy-protection
experiment to a handful of advance copies given to radio DJs. But that
didn't mute the criticism.

A small Nashville label, Music City Records, led the experimentation in
copy-protected CDs, with country music artist Charley Pride's album ``A
Tribute
To Jim Reeves.'' Its introduction last March prompted a lawsuit, alleging
the label failed to properly disclose it was copy-protected.

Quiet efforts

Not all efforts at thwarting music piracy have attracted such attention.
One of the big five labels claims to have quietly released 15 million
copy-protected
discs in Europe without attracting notice.

It's not surprising that the labels would experiment in Europe, where
music piracy is rampant and disclosure laws are less well defined. In
Germany alone,
one survey by market researcher GfK found that blank CD sales jumped 129
percent this year. Purchases of pre-recorded music dropped 2.2 percent in
the
same period.

Indeed, blank CDs now outsell recorded discs in Europe and Canada,
according to one label executive.

The labels see signs of a similar death spiral in the United States.
Sales of CD singles are off 41 percent, compared with the same time last
year, and
album sales are effectively flat -- up less than 1 percent from a year
ago, according to SoundScan, a market research firm that tracks retail
music sales.

Some blame the sour economy. Others point to lackluster sales of hotly
anticipated new releases from artists like Mariah Carey and Macy Gray,
and the glut
of look-alike, sound-alike boy bands.

The record industry sees the burgeoning popularity of sons-of-Napster
sites, such as Morpheus and KaZaA and skyrocketing sales of blank CDs,
and sees its
own demise.

``Copy protection is certainly not new to the entertainment industry,''
said Rosen. ``Most movies and video games sold today have some form of
protection
-- musicians are an exception to the case and do not enjoy the same
protection. It is not surprising, therefore, that the recording industry
is taking
steps to get in tune with the rest of the entertainment field.''

The trick is finding a technology that curbs piracy without incurring the
wrath of consumers. After a faltering first attempt, BMG said it is
working to
develop a more sophisticated version of copy-protection that would allow
consumers the right to listen to music on a PC or make a limited number
of personal
copies.

One approach involves dual-session CDs, with one set of tracks that plays
in home stereos, and a second, encrypted version of the music files
wrapped in
rights-management technology that limits the number of copies a consumer
can make.

Such rules let consumers enjoy music on an array of consumer electronics
devices -- from PCs to portable players. But it would discourage 15 high
school
friends from getting together and pooling their money to buy a single
music CD and a spindle of blank discs and making dubs for everyone in the
group --
with a few extras to sell at school.

``This is what's truly hurting sales,'' Haussler said. ``This is not my
compilation of my favorite music. This is having these perfect copies
forever.''

The key to consumer acceptance -- as BMG and Sony learned the hard way --
is disclosure.

Warning sticker

The ``Fast & Furious -- More Music'' CD will come with a sticker that
notifies the consumer that it is copy-protected and warns about possible
playback
problems. An insert in the jewel case provides a toll-free number for
consumers and a Web site, where they can get more information.

Universal told retailers that it would honor refunds on all returned
discs -- even for CDs that have been opened.

``We have heard the strong voice of the retail community concerning the
substantial financial impact that illegal copying of compact discs is
causing to
business'' wrote Jim Weatherson, Universal's executive vice president of
music and video distribution, in a letter to retailers. ``We share in
your concerns
and, in response, are pleased to be the first company to launch a
campaign to confront this explosive and damaging trend.''

Retailers, such as TransWorld Entertainment in Albany, N.Y., welcome the
initiative, and have spent time briefing their sales staff about the new
technology
and possible snafus. It is preparing to ``cheerfully refund'' the
consumer's purchase price at its 1,000 stores nationwide, including the
``Strawberries''
and ``Coconuts'' chains.

``They've been testing this in Europe and they're experiencing less than
a 1 percent return rate from consumers. It really has turned out to be
nothing,''
said Jerry Kamiler, TransWorld Entertainment's division merchandise
manger. ``If we get the same results here, as I imagine we would, I don't
think it's
going to manifest itself into a consumer problem.''


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