Let's face it -- quite a lot is resting on the outcome of this case. For months now, RealNetworks has been unable to legally sell its RealDVD movie ripping software after a court issued a temporary restraining order that remains valid until it's decided if the application violates the DMCA (Digital Millennium Copyright Act). Now, the software is finally having its day in court, and the outcome could shape the future of the DVD player (for better or worse). You see, Real has already assembled a prototype Facet device that hums along on Linux; essentially, this DVD playing machine would sell for around $300 and could store up to 70 movies internally. On the surface, this sounds entirely like a poor man's Kaleidescape, but only time will tell if The Man agrees. Cross your fingers folks, we get the feeling fair use advocates are going to need the luck.

In what's being described as a landmark verdict, four men responsible for assisting throngs of dubious internet users to download all sorts of copyrighted material are being ushered off to prison cells for twelve whole months. The Stockholm district court in Sweden found the defendants guilty not of hosting materially illegally, but of "providing a website with sophisticated search functions, simple download and storage capabilities, and a tracker linked to the website [that helped users commit copyright violations]." As expected, the foursome seems unaffected by the ruling, with Peter Sunde (shown) tweeting that "it used to be only movies, now even verdicts are out before the official release." After jail, the crew will be forced by pay 30 million kronor ($3.56 million) to a number of entertainment companies, which is far less than those firms were hoping for. Curiously, we're told that the verdict didn't include an order to shut down The Pirate Bay website, and you can pretty much bank on an appeal being filed in record time.

[Thanks to everyone who sent this in]

Make no mistake -- there's no need to wait for Nokia and its partner studios to implement a DRM-free version of Comes With Music to enjoy your subscription tracks on any device you want, but at least the handset maker -- along with those in control of the jams -- are working towards a legal way to strip your downloads of that pesky rights management stuff. According to an article on the matter from Singapore today, Adam Mirabella, director of Global Digital Music Retail at Nokia, had this to say: "We have dialogs going with all of our partners and Digital Rights Management-free (DRM-free) is also on the roadmap for the future integration of Comes With Music." No further details were spilled, but we'd say that's clear cut enough to get one's hopes up. Just don't bank on this going down anytime soon -- you should know there's lots of red tape to cut before those CmW tunes are freed of their shackles.

[Thanks, Masa]

When you retard fair use with pointless DRM and then sue anonymous children for illegally downloading music while ignoring those of the execs at the top of the music industry, well, you're asking for a public relations nightmare. Now, with more than 35,000 lawsuits to its credit, the RIAA says it will finally end the legal assault against consumers that began back in 2003. The Recording Industry Association of America will instead, focus its anti-piracy efforts with ISPs. Under the new plan, the RIAA will contact ISPs when illegal uploading is detected. The ISP will then contact the customer with a notice that would ultimately be followed by a reduction or cessation of service. As you'd expect, the RIAA is not commenting on which ISPs they are in cahoots with. The RIAA also says that it won't require ISPs to reveal the identities of individuals but could, of course, go after individuals who are heavy uploaders or repeat offenders. For the moment though, it appears that single-mothers are in the clear.

Yep, it finally happened. One label has come forward and admitted that, for the first time, digital sales of its music has surpassed CDs. While many pundits asserted that loosing tunes via tiny downloadable files would instantaneously cause the deep-pocketed record labels to crumble as piracy ran rampant, the numbers tell a different story. In fact, music sales overall have declined from $14.6 billion in 1999 to $10.1 billion this year, and it's expected to shrink further. But for Atlantic, moving tracks on the information superhighway has proven quite successful; last quarter, digital sales accounted for 51% of its revenue, while CD sales still make up over two-thirds of all music sales industry-wide. There's no real indication as to why Atlantic seems to have that digital charm while everyone else is still clinging tight to old world business models, but it's sure nice to see this side of the equation thriving. Now, about those DRM-free downloads across the board...

[Image courtesy of Dexondaz]

Back by popular demand, it's the Walmart DRM servers! You heard right -- just days after Wally World announced its plans to turn the screw on its digital rights management servers, we're now being shown a big "just kidding." According to an e-mail (posted in full after the break) sent out to previous downloaders, the mega-corp be leaving things as-is for the foreseeable future, and it's all because of "feedback from the customers." In other words, those actions it urged you to take late last month are no longer required, though we'd still back those tracks up on CD just in case. Can't be too careful, you know.

[Thanks to everyone who sent this in]

Walmart began selling DRM-free tracks in its music store in August of last year. 13 months later, the mega-corp has decided to follow the footsteps of so many others and hit the kill switch on its DRM management servers. As noted in an e-mail to customers, Wally World will be making the final transition into a fully DRM-free MP3 store on October 9th, and in order to keep those DRM-laden files playable on anything, it's recommended that you burn protected files on a CD on the double. If you choose to ignore this message, you'll be unable to "transfer your songs to other computers or access your songs after changing or reinstalling your operating system or in the event of a system crash." Heed the warning, kids.

We always thought that the RIAA's first-ever filesharing trial victory against Jammie Thomas was a little suspect since the labels weren't required to prove that Thomas even had Kazaa installed on her machine or was the person using the account in question, and it looks like the court agrees -- it's just declared a mistrial and set aside the $222,000 judgment on the grounds that simply making copyrighted works available for download does not constitute copyright infringement. That's a huge decision -- the "making available" theory is the basis for most of the RIAA's legal arguments -- and it means that the RIAA will now have to prove the unauthorized transfer of each song it wants to collect damages on at the new trial. We'll see what effect this has in the broader sense -- we've got a feeling we're in for a slew of appellate decisions on both sides of the "making available" debate -- but for now it looks like the good guys are finally starting to score some points.

[Via ZDNet, thanks JagsLive]

Read - Wired article
Read - Decision [PDF]

If you woke up this morning worried about what Yahoo! is planning to do for its Music Store customers who are about to be left in the lurch with its DRM server shut-down, have no fear. Yahoo! has announced that it will offer customers coupons or refunds for those songs you bought. Basically, you'll get a coupon that you can use at RealNetworks Inc.'s Rhapsody download service. Their songs, of course, are DRM-free. For those of you who have "serious problems with this arrangement" (their words, not ours), refunds will be available. The servers go down on September 30, so start combing your collections, kids.

[Thanks, JC]

Hey, both of you Yahoo! Music Store customers, listen up. Just hours after Yahoo! affirmed that it would be powering down its DRM servers, along comes a spokesperson to alleviate any worries that you two will get screwed in all of this. According to Carrie Davis, customers "will be compensated for whatever they paid for the music," and she continued on to state that Yahoo "had not yet decided what exactly it would do, but it would take care of its customers." Some of the possible options include getting cash back for the money spent on tracks or receiving MP3 versions of the jams sans DRM (we'd take the former, thanks). Depressingly, there doesn't seem to be a definitive time table laid out just yet for the restitution process.

It has been a solid tick since we've seen a good FairPlay hack, so it's with great pleasure that we pass along El Tunes for Ubuntu 8.04 users everywhere. Tested to work on Hardy Heron using RhythmBox (but assumed to work on any modern Linux Distro with GStreamer and a media player that utilizes GStreamer), said plug-in enables open-source aficionados to play songs purchased from the iTunes Music Store. As for limitations, the current version has no Pause / Seek support and cannot de-authorize a machine for playback, but a future version should hopefully cure those two quirks and add support for purchased video content and audio streaming to an AirTunes device. Give it a shot and let us know how it treats ya.

Now that the furor has died down over the Washington Post's questionable piece about the RIAA supposedly suing Jeffrey Howell for ripping CDs, it's time to hear what the RIAA actually has to say -- and it's surprisingly sensible. Speaking to NPR, RIAA president Cary Sherman flatly said "the story is just wrong." Sherman went on to say that the RIAA hasn't ever prosecuted anyone for ripping or copying for personal use, and that the only issue in the Jeffrey Howell case was -- as always -- sharing files on Kazaa. Perhaps most interestingly, Sherman directly addressed the "ripping is just a nice way of saying 'steals one copy'" comment made by Sony BMG's anti-piracy counsel in the Jammie Thomas case, saying that the attorney "misspoke," and that neither Sony BMG or the RIAA agreed with that position.

Of course, it wasn't all sunshine and cupcakes -- Sherman refused to straight-up answer the question of whether or not ripping was legal, saying instead that "there are 100 hypotheticals" and that "copyright law is very complicated." Of course, what he's really saying is that courts haven't made an clear determination of fair use regarding ripping and that he's covering the industry's collective ass -- which explains his hilariously out-of-touch explanation that making copies onto "analog cassettes, special audio CD-Rs, minidiscs, and digital tapes" is legal, because those are all expressly allowed by law. On the other hand, Sherman also said that RIAA's interpretation of the law "doesn't really matter," because "not a single claim has ever been brought over personal use -- [the Washington Post story is] really unfortunate, it's misleading consumers, and it's simply not true." It's a fascinating interview, and it's more than worth a listen if you've got any interest at all in copyright issues -- regardless of what side you're on.

Okay, so we've done some digging into the RIAA's lawsuit against Jeffery Howell, in which the industry is claiming that ripped MP3s are "unauthorized copies," and it turns out that Jeffery isn't actually being sued for ripping CDs, like the Washington Post and several other sources have reported, but for plain old illegal downloading. As we're all unfortunately aware, that's pretty standard stuff; the big change from previous downloading cases is the RIAA's newfound aggressiveness in calling MP3s ripped from legally owned CDs "unauthorized copies" -- something it's been doing quietly for a while, but now it looks like the gloves are off. While there's a pretty good argument for the legality of ripping under the market factor of fair use, it's never actually been ruled as such by a judge -- so paradoxically, the RIAA might be shooting itself in the foot here, because a judge wouldn't ever rule on it unless they argue that it's illegal. Looks like someone may end up being too clever for their own good, eh?

Sure, we've heard RIAA-admiring lawyers affirm that ripping your own CDs is in fact "stealing," but it seems the aforementioned entity is putting its money where its mouth is in a case against Jeffrey Howell. Reportedly, the Scottsdale, Arizona resident is being sued by the RIAA, and rather than Mr. Howell just writing a check and calling it a day, he's fighting back in court. Interestingly, it seems that the industry is maintaining that "it is illegal for someone who has legally purchased a CD to transfer that music into their computer." Ira Schwartz, the industry's lawyer in the case, is arguing that MP3 files created on his computer from legally purchased CDs are indeed "unauthorized copies," and while we've no idea what will become of all this, we suppose you should go on and wipe those personal copies before you too end up in handcuffs.

Update: We got some more info on the case -- it looks like Jeffrey's actually being sued for illegal downloading, not ripping, but this whole "ripping is illegal" tactic is still pretty distasteful. Check out this post for the full story.

[Via BlogRunner]

By now, we're pretty certain you know how Warner Music's head honcho feels about DRM and its necessity in the digital download space, but apparently, the man behind not one, but two CE-Oh Noes has experienced some form of epiphany. MacUser has it that Edgar Bronfman admitted that the music industry "used to fool itself" by thinking that its content was "perfect just exactly as it was" while speaking at the GSMA Mobile Asia Congress in Macau. He went on to say that it was widely believed that the business would "remain blissfully unaffected even as the world of interactivity, constant connection and file sharing was exploding." He also noted that it essentially went to war "inadvertently" with consumers by "denying them what they wanted and could otherwise find." The conversation was used in part to urge mobile operators to not make the same mistakes again, and while we applaud such a figure for coming forward with a bit of hard truth, it remains to be seen if these sentiments will reverberate further or simply fall on deaf ears.

[Via mocoNews]