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Harmonizing fair use and self-help copyright protection of digital music.


by Weiss, Jacob

Before the summer of 2003, there appeared to be little chance that the five major record companies and their trade group, the Recording Industry Association of America ("RIAA"), would sue any more than the most egregious copyright infringers among the millions of file sharers in the United States and abroad. A campaign of mass litigation would be an unfeasible undertaking. For one, there were countless infringers. Furthermore, it was, and still is, impossible to know exactly which file sharer performed the act of downloading, as only the IP address is obtainable and identifiable. Moreover, the record companies would not want to alienate a nation of music lovers, the same people who, presumably, continue to legitimately purchase albums in stores.

Thus, it appeared that the record companies would resort solely to technological means to stop widespread file sharing and copyright infringement, evidenced by Congress's attempts to legislate these copyright-protective self-help tactics. Of course, things have changed. The initial premise, that the record companies would not and could not sue, is wrong.

How successful is this current campaign? According to Nielsen//NetRatings, the number of users of KaZaA, the current standard for file sharing, is down forty-one percent since the lawsuits began. (1) This equates to 2.6 million users abandoning the software within a two-month period. (2) There are of course still 3.9 million undeterred file sharers in the KaZaA networks, with many millions more using other file sharing software programs. Moreover, a recent study by the Gallup Poll organization found that eighty-three percent of American teenagers found free file sharing to be morally acceptable. (3) Of the 261 users sued on September 8, 2003 by the RIAA, only fifty-two had settled by October 1, 2003. (4) When and if the remaining suits go to trial, the RIAA will need to win every case to ensure an exaggerated deterrent effect of suing only .004 percent of all U.S. infringers. If the suits fail, file sharing traffic will resume to normal astronomical levels, and copyright owners will resort to technological methods of protection.

As long as there are technological ways of obtaining free music, there must be technological means of combating infringement. Thus, the suits of September 2003 are likely to be only a time-saving device for the record companies to develop effective anti-infringement technology and for Congress to craft law that allows for copyright justice inside the networks and outside of the courts.

ABSTRACT

Copyright owners have begun to develop and utilize technologies to prevent the infringement that has occurred in peer-to-peer file transfer networks. The legislature and courts, largely ineffective in their efforts to stop the widespread copy and transfer, have been vocal about the owners' self-help campaign. There are a number of bills in Congress that would allow anything from decoy MP3 swarming, to albums that crash computers, to permission for a regulatory body to enter the hard drives of personal computers and delete questionable files. Other bills, however, are attempting to outline a new, digital consumer's bill of rights. Traditionally, there has been little support for self-help in the American legal paradigm. These new technologies are forcing a re-evaluation of self-help, and seem to propose that technological problems require technological solutions. This note argues that legislative allowances for self-help copyright protection must reflect a balance between the obligation to end rampant piracy and jurisprudence that makes the process of law the foundation of societal harmony. Bills of rights are too weakly written, fair notice is but a beginning to the protections deserved by fair users, and free license to copyright owners would cultivate a brutally crippling digital war that our legal system would be unable to contain.

PREFACE

The Apple iPod is a portable hard drive, initially available in five, ten, and twenty-gigabyte storage capacities. It is about the size of a wallet. It is like a walkman, in that it includes a single program (5) that plays MP3 music files. (6) Five gigabytes can store anywhere between 1000 and 1500 songs, so the twenty gigabyte iPod owner would be able to listen to music for about two and a half weeks straight without hearing the same song twice. Out of the box, there is a protective sticker on the iPod screen that reads, "Don't steal music."

This warning is not intended to be sarcastic, because there is a completely legitimate, non-copyright-infringing manner in which one can use the iPod. One simply needs two and a half weeks worth of store-purchased albums (7) and the patience to convert all the songs to MP3 format. It is entirely possible that an iPod owner would do this. It is not likely, however, considering how easy it is to steal music today.

How easy is it? The process is quite simple. Starting with a personal computer ("PC"), an Internet connection, and a single store-bought compact disc ("CD"), the user uploads music to her hard drive. With MP3 encoding software, (8) which ships with most operating systems, she compresses a song from the CD to about one-tenth of its original size. (9) However, the sound quality is not nearly divided to such a degree. This is because MP3 encoding involves a process by which certain sound frequencies, inaudible to the human ear, are extracted, reducing the file size. (10) Psychoacoustically, the listener hears little to no difference. (11) Moreover, the drastic file size reduction frees up space on the hard drive and makes Internet transfer ten times faster. Enter the Napsters (12) and Gnutellas, (13) which are peer-to-peer ("P2P") file transfer systems that allow one user to copy an MP3 file from another user's hard drive, and free music is suddenly everywhere.

Napster was ultimately enjoined from continuing business. (14) However, Napster was a legally vulnerable company, with a centralized mainframe that controlled the transfers. (15) Thus, a court could shut it down. (16) However, the new Gnutella technology appears immune from similar legal action. (17) Gnutella is as effective as Napster was in allowing for file searches and transfers, but it is not a company, and has no centralized mainframe to estop. (18) Gnutella is a piece of software that, once widely disseminated, allows users to connect with one another through freely formed, agile, largely impregnable networks. (19) Moreover, Gnutella was written in open-source code, which enables any software author to copy it, improve it, and create new versions. (20) Most, if not all of these clones can interact with one another. (21) The result is a world wide web of free music seekers operating independently in localized cells.

Copyright owners are livid, and the current means of legal recourse are sluggish and ineffective. Simply put, the law is slower than the technology, and smaller than its users. In turn, copyright owners have begun to develop their own technology to battle infringement, and the law may be applauding these efforts.

Consequently, this note will examine the new copyright protection technologies, their varying degrees of effectiveness in preventing or punishing infringement, and the legislative reaction to copyright owners employing certain aggressive technologies. Seeking a balance between the impetus to protect copyrighted works from infringement and the societal need to prohibit digital vigilantism, this note will conclude with a proposal for an administrative body that properly and fairly weighs both interests.

I. SELF-HELP COPYRIGHT PROTECTION TECHNOLOGIES

To date, any single self-help, anti-infringement technology can have one of three possible points of attack, each target being one step in the process of illicit copying and file transfer. (22) The three infringement subprocesses that the technologies seek to foil are 1) the uploading of store-bought CD songs onto a PC, (23) 2) the encoding of these songs into the MP3 file format, (24) and 3) the transfer of MP3 files between PCs via P2P networks. (25) Frustrating any one of these subprocesses would defeat illicit copy and transfer nearly in entirety.

A. Compact Disc Technology

Currently, the most widely used self-help copyright protection has come in the form of a specially protected CD. (26) There are a number of companies developing disc-embedded protection mechanisms, resulting in a wide variety of effectiveness and collateral difficulty. Generally, these protected discs will either not play in a PC, (27) prevent attempts to upload onto a PC, or in some cases, will even crash a PC. (28) There is little doubt that the albums that have been released with internal copyright protection technology have been prone to illicit copying, however. (29) Moreover, one particular album resulted in a suit against the releasing record company. (30) The litigation eventually settled, with the plaintiff getting nearly everything she requested. (31) The high degree of controversy surrounding disc-embedded protection may be attributed to its potential for wreaking havoc against fair users. (32) A major problem with this particular technology is its tendency to damage the PCs of listeners who never encode or download illicit copies of songs, and, most importantly, have purchased the music fairly. (33) Critics contend that disc-embedded protection is overbroad and severe in its method of copyright protection. (34)

1. SunnComm and Charley Pride

Charley Pride's "A Tribute to Jim Reeves" CD was released with MediaCloQ, (35) a disc-embedded copyright protection developed by SunnComm. When the CD was inserted into a PC's CD-ROM drive, it failed to play. Instead, a window appeared, directing the user to register the album online and download replacement files in an encrypted format. (36) This was problematic for three reasons. One, there was no indication of this requirement on the external packaging of the CD. (37) Two, a user who had no Internet connection would not be able to listen to the album on her PC. (38) Three, the registration site required that the user produce personal information to receive the encrypted replacement files. (39)

One purchaser, Karen DeLise, sued the releasing record company, Farenheit Entertainment, and its label, Music City Records. (40) The action alleged breach of California consumer protection law, false advertising, and invasion of privacy. (41) The suit settled, and thus did not set legal precedent. The settlement agreement, (42) however, signaled that this particular mode of copyright protection is bounded by contract and tort law. The settlement included, among other provisions, that 1) the external packaging would display clear warnings, (43) 2) no personal information would be required, (44) 3) the user could download any song up to six times, (45) 4) second-hand purchasers would be allowed to download, (46) and 5) the company would refund or replace the CDs of any purchasers who are unable to download the encrypted versions via the Internet. (47) These complications rendered the MediaCloQ type of copyright protection inefficient and ineffective.

2. Macrovision's SafeAudio

Regular CD players, like car stereos and boom boxes, have error-correction mechanisms, so that minor scratches on a CD will not render the disc useless. (48) Audio frequencies affected by the scratches are fabricated by the error-correction, which restores the sonic quality to normal. (49) A PC's CD-ROM drive, however, must read non-audio CDs, such as software installation CDs. Thus, the error-correction mechanism in a CD-ROM drive is different from those found in regular CD players in that it leaves the task of audio-corrective frequency fabrication to the audio-playing software application. (50) Capitalizing on this disparity between CD-ROM's and regular CD players, Macrovision developed SafeAudio, (51) which corrupts distinct blocks of audio on the CD. (52) It is, in effect, intentional scratching. A regular CD player can handle the corruption, but a CD-ROM either rejects the CD altogether, or plays the songs with grating pops, hisses, and skips. (53)

Once again, this technology disrupts the good faith user who wants to listen to her store-purchased music on her PC. More importantly, a CD created with intentional corruption will have lower sound quality, fidelity, and reliability over time. (54) Thus, a purchaser who does not even own a computer will inevitably have to repurchase the album.

3. Midbar Cactus Data Shield

Another disc-embedded protection is an evolved version of the SafeAudio style. Midbar's (55) Cactus Data Shield, or CDS, (56) also exploits the difference in error-correction circuitry between regular CD players and CD-ROM drives. (57) Unlike SafeAudio's simplistic audio corruption, however, the Cactus Data Shield will "embed[] annoying pops and jumps in audio content," "hide the CD-Audio tracks on a PC," "or use other CD format changing methods that prevent CD-burning software from working." (58) One method of CDS protection is a highly compressed audio data block attached at the end of the CD. (59) This data block is a poor-sounding version of the entire album, and a program embedded in the disc overrides the PC audio software, forcing the user to listen to the highly compressed audio. (60) This added data can produce an array of odd results, such as the inability to play on a Macintosh, or the inability to play the first song of the album. (61)

The Cactus Data Shield has not arrived in the U.S., but has been reportedly released on millions of albums in Europe. (62) It is utilized by four of the five major record labels. (63)

The Cactus Data Shield may hold the greatest potential for development. It appears that the embedded data could, if designed in such a way, be completely harmless to the fair user. For example, the code could allow the user to listen to the CD on her PC at the highest quality, but refuse to permit her to encode the songs in high-quality MP3 format. This would tread lightly on the good faith user's rights. The best copyright-protective code, it seems, would allow the user to encode the songs in MP3 format, so that she could listen to them on her iPod, but contain some type of signal that would corrupt the audio file if transferred from one PC to another.

4. General Problems with Disc-embedded Protection

CDs encoded with copyright protection pose three problems for fair users and three problems for copyright owners. For the fair user, there has been 1) a lack of notice on the packaging, (64) 2) reduced audio quality, sonic fidelity, and disc construction, (65) and 3) the potential for severe PC damage. (66) Clearly, record labels must begin to place some kind of warning on the packaging of these CDs. The Charley Pride settlement indicates that a failure to do so may constitute false advertising. (67) While warning labels may imperil sales, once disc-embedded protection becomes standard practice, these sales would likely return to normal.

While it would seem that the problem of audio quality loss would have to succumb to a fair compromise in the digital copyright dilemma, there is an extenuating development that would render this difficulty moot. Audio CDs, since their inception, have stored digital music in sixteen bits and 44,100 samples. (68) These numbers determine the capacity for sonic quality of the music. Very soon, however, the standard CD will be released in twenty-four bits and 48,000 or 96,000 samples, reflecting the evolving capabilities of digitally recorded music. (69) For music lovers, this boost should make up for the data lost to copyright-protective control blocks.

The potential for severe PC damage depends on the evolution of the Cactus Data Shield. (70) There is little question that the technology can be devised so that it is harmless to a PC. However, it is also fairly certain that a particularly draconian type could enter viral code in its control blocks, ruining a PC as viruses have done for years. This particular problem is one that requires great attention from the legal community. If the legislature gives license to copyright owners to do whatever is necessary to prevent infringement, an overzealous application might give rise to tort to chattel actions.

Another development that threatens the viability of disc-embedded copyright protection is the noticeably partisan voting in Congress. (71) Republicans have won a number of recent battles, favoring a laissez faire approach, over Democrats who seek to make disc-embedded protection a legal requirement for the industry. (72) There are two mutually exclusive bills on the floor that may determine the fate of CD copyright protection technology. (73) One bill would require that all CDs have embedded protection. (74) The other would make covert embedded protection illegal. (75) It is a remarkably conflicting political divide for a relatively new, comparatively apolitical issue. The second part of this note fully addresses these bills.

For copyright owners, the three problems with CD protection technology are 1) the definition of a CD, (76) 2) the statutory terminology of Fair Use and subsequent amendments, (77) and 3) magic markers. (78) A CD embedded with copyright protection is not technically a CD, and cannot be sold as one. (79) For example, Celine Dion's "A New Day Has Come" was not scored with the distinct "Compact Disc" certification mark. (80) However, this difficulty is largely semantic. As copyright-protected albums become more common, the standard should change, so that these discs will receive the certification and its mark.

The treacherous terrain of Fair Use, however, is not so easily escaped. Title seventeen of the United States Code, section 107, allows for a purchaser of copyrighted material to make a limited number of copies for personal use. (81) This is a critical matter, and will be discussed in greater detail later. For now, it is important to note that the problem of digitally infringed music is so great that section 107 needs to be amended.

Finally, there is the magic marker problem. Apparently, some clever folks have been successful in covering up the data blocks with ink, thereby overriding the copyright protection. (82) CDs that were encrypted to fail in PCs have been widely copied and transferred over P2P networks. (83) Magic markers are not quite the height of technology. Thus, if the premier copyright protection technologies can be beaten by a Sharpie[TM], one might wonder if software authors empathetic to the infringement cause might already be a few steps ahead. (84) Authors of bills in Congress have already foreseen a technology war. (85) This arms race, so to speak, is fundamental to the impetus to create a solution that balances the interests of both copyright owners and the general public. (86)

B. MP3 Technology

The MP3 is arguably one of the most remarkable achievements of the Digital Age. By itself, it is relatively unimportant; it is more or less just a smaller file format. Give it room to move, say, on an Information Superhighway, and it becomes the most radically controversial file format in history.

For the most part, the MP3 is immune from self-help copyright protection technologies. (87) This is so for a number of reasons. One such reason is that MP3s are produced by PC users, and the abundance of encoding software has resulted in an abundance of home-spun MP3s. (88) Another reason is that the MP3 file format is simply a lump of raw data. (89) The data-only file format, such as GIF for digital images (90) or DOC for word processor files, (91) cannot execute code or issue commands outside of the program that reads the data. (92) In other words, it cannot do anything. An email can bear a virus because it is not simple raw data; it may contain an attachment of executable code that devours a PC. (93) MP3s themselves, containing no such codes, are incapable of protecting copyright. The data-only aspect of the MP3 file format, however, does give protection technology developers some room to work with. MP3 watermarking has been created so that illicit MP3s can be recognized by P2P networks and MP3-playing software. (94)

1. Secure Digital Music Initiative

A watermark, for the purposes of MP3, is a song-specific numerical encryption within the data of an audio file. (95) It is the most advanced technological achievement of the Secure Digital Music Initiative ("SDMI"), an ambitious consortium of recording industry leaders, digital technology developers, and Internet service providers, created in 1998. (96) The watermark was designed so that transfer channels, such as P2P networks, and MP3-playing programs, could identify copyrighted songs. (97) Once the watermarking device is incorporated into the programs, encoding CD songs into MP3 format, the transfer channels and MP3 players would refuse illicit copies. (98) SDMI intended to revamp the system so that all players, encoders, and transfer systems would comply with the watermarking standard by incorporating SDMI's technology. (99)

It seemed like an excellent self-help strategy, with little to no impact on the fair user of digital music. Unfortunately, SDMI's confidence was premature. By way of a $10,000 bet, the group challenged that no one could "'remove the watermark or defeat the other technology on our proposed copyright protection system.'" (100) In the end, SDMI lost the $10,000 and their high hopes for watermarking. (101) Adding insult to injury, the cryptologist who broke the code filed suit against SDMI. (102) Ed Felten, (103) an Associate Professor at Princeton University, brought an action in a New Jersey federal court so that he could publish the results of his research at an academic security symposium. (104) SDMI, the RIAA, and Attorney General John Ashcroft were named as defendants. (105) The suit was the first challenge to the Digital Millennium Copyright Act of 1998's ("DMCA") criminal provisions, such as a fine of up to $500,000 and up to five years in prison, that the SDMI had promised Felten if he were to disclose his findings. (106) Felten's challenge to the criminal provisions was dismissed, but he chose not to appeal the dismissal, "[c]iting assurances from the government, the recording industry, and a federal court that the threats against his research team were ill-conceived and will not be repeated." (107)

2. Speculative and Nascent MP3 Technologies

a. The Viral MP3

Currently, it is impossible to create a viral MP3. (108) The "Bloat" hoax, among others, reveal the darkest fears of the free file-transfer community. (109) The Bloat warning came in the form of a mass email from the Internet Western Associates company: Bloat was supposedly an executable string that attached itself to all files with an .mp3 extension, and would fill up the user's hard drive with nonsensical data once the song was played. (110) It would terminally affect all MP3 files and players. (111)

Another hoax, entitled MusicPanel, warned that the secret virus would ruin computers that had obtained any of the 500 most popular songs through Napster or Gnutella. (112) This message was placed in Internet newsgroups and identified disgruntled musicians as the creators of the virus. (113) The virus was supposed t