EU backs downloader privacy

THE European Union’s top court has backed the privacy rights of internet users, ruling that content owners cannot demand that ISPs hand over the personal information of users suspected of illegal downloading.

The Brussels-based Court of Justice ruled that even where an IP address was suspected of illegally downloading copyrighted material, record labels and film companies could not demand that the telecommunications carriers’ hand over details of that users’ name and address.

But it said EU member states could, if they felt it necessary, introduce laws that would oblige telco’s to hand over personal information in civil cases.

The decision relates to case involving the Spanish communications giant Telefonica.

An anti-piracy group called Promusicae had applied through the Spanish courts for an order that Telefonica hand over the identities and physical address of customers whose IP address and date and time of connection were known.

According to Promusicae, those persons were using the KaZaA file exchange program and providing access in shared files of personal computers to content that belonged to its industry members.

Telefonica had argued that under Spanish law, it was only allowed to share personal data in cases involving criminal prosecution or matters of public safety or security.

The Court points out that the present reference for a preliminary ruling raises the question of the need to reconcile the requirements of the protection of different fundamental rights, namely the right to respect for private life on the one hand and the rights to protection of property and to an effective remedy on the other.

The International Federation of the Phonographic Industry, an anti-priacry group, said the recording industry would continue its enforcement campaign against internet piracy, despite the ruling. It applauded the courts ruling that member states could still compel telcos to hand over personal data.

“Copyright theft on the internet is the single biggest obstacle to the growth of the music business today, IFPI chairman and chief executive John Kennedy said in a statement.

“The European Court has confirmed the need to have effective tools to tackle piracy. The judgment means that music rights owners can still take actions to enforce their civil rights, and it has sent out a clear signal that Member States have to get the right balance between privacy and enforcement of intellectual property rights and that intellectual property rights can neither be ignored nor neglected.”

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SonyEricsson ramps download service

MOBILE phone giant SonyEricsson has signed distribution deals with ten major record labels, boosting the number of tracks available through its mobile download service to more than five million.

The company announced at the MIDEM conference in Cannes its strategic plans for the PlayNow arena operated by the company.

The partnerships with 10 of the largest international and regional record labels included Sony BMG, Warner Music Group, EMI, The Orchard, IODA, The PocketGroup, Hungama, X5 Music, Bonnier Amigo and VidZone.

Sony Ericsson is currently negotiating further deals with a host of regional labels to further broaden the variety of music available and bring more localised content direct to the consumer.

The PlayNow service was launched in February 2004 as the easiest way to pre-listen and then purchase polyphonic ringtones directly to your phone. Since launch, the scope of the service has expanded to include MP3 ringtones, games, full music tracks, themes and wallpapers.

The service has proved a hit with consumers and is now available in 32 countries around the world, with annual free and premium having reached more than 200 million.

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CD slump, EMI chops 2,000 jobs

THE UK-based music label EMI has announced a massive restructuring, with plans to sack 1,500 to 2,000 staff as the company tries to come to grips with the digital economy.

EMI Group chairman Guy Hands said the changes were a fundamental reshaping of the company’s Recorded Music division to reflect the changing nature of the industry.

The company is struggling in an industry where global sales of recorded music have fallen 20 per cent since 2000.

And though the company says it will put in place a plan to open new revenue streams like enhanced digital services. It also wants to improve its relationship with artists, based on transparency and trust.

But Mr Hands has been accused by one of its biggest selling artists, Robbie Williams – who has sold more than 70 million albums – of behaving like a “plantation owner”. Williams says he is “on strike” over the way he says the company treats artists.

The restructuring involves a lot of consolidation and old-fashioned cost-cutting. It would let the group “capture significant efficiencies.” The company will fire between 1,500 and 2,000 staff.

“We have spent a long time looking intensely at EMI and the problems faced by its Recorded Music division which, like the rest of the music industry, has been struggling to respond to the challenges posed by a digital environment, Mr Hands said.

We believe we have devised a new revolutionary structure for the group etc etc blah blah, he said.

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Anti-competitive: EU attacks iTunes

APPLE and the world’s five major record labels have been formally accused by European regulators of anti-competitive behaviour stemming from distribution practices of the iTunes music download service.

The European Commission confirmed yesterday it had sent a statement of objection to the companies over agreements between the record companies and Apple that restricts where and how users can access the iTunes site.

The EC says the companies are artificially restricting users from one European country from accessing the iTunes service in another, restricting cross-border transactions.

It says the record labels – Vivendi's Universal Music Group, Sony BMG, EMI and Warner Music – were forcing Apple to restrict users to only accessing the iTunes site in their own country, thus restricting choice and forcing prices up.

The Commission says the agreements between Apple and the record companies violates EC Treaty rules prohibiting restrictive business practices.

“The Statement of Objections alleges that distribution agreements between Apple and major record companies contain territorial sales restrictions which violate Article 81 of the EC Treaty,” the EC said in a statement.

“iTunes verifies consumers' country of residence through their credit card details. For example, in order to buy a music download from the iTunes' Belgian on-line store a consumer must use a credit card issued by a bank with an address in Belgium.”

The iTunes services charges different amounts for songs in different European countries.

The Statement of Objections does not allege that Apple is in a dominant market position and is not about Apple's use of its proprietary Digital Rights Management (DRM) to control usage rights for downloads from the iTunes on-line store.