2013

Robert Cringely's idea on how to deal with RIAA

Snapster is built on the legal concept of Fair Use, which allows people who purchase records, tapes, and CDs to make copies for backup and for moving the content to other media. [...] Snapster will be a company that buys at retail one copy of every CD on the market. Figure 100,000 CDs at $14 each requires $1.4 million. Snapster will also be a download service with central servers capable of millions of transactions per day. [...] Snapster has to be a public company. It would have its IPO as soon as possible after all those CDs have been delivered. It must be a public company right from the start of operations [...] By limiting issued shares to 10 percent of total Snapster ownership, stock splits could be used to maintain the price of each Snapster share at $20. [...] Each Snapster share carries ownership rights to those 100,000 CDs. You see, Snapster is a kind of mutual fund, so every investor is a beneficial owner of all 100,000 CDs. Each share also carries the right to download backup or media-shifting copies for $0.05 per song or $0.50 per CD, that download coming from a separate company we'll call Snapster Download that is 100 percent owned by Snapster. [...] What I have described is legal, it just leverages technology in a way that has never been done before. There are precedents for group ownership of recordings and certainly the law of mutual funds is very clear. Of course, the RIAA will have a response. They will file suit, probably claiming restraint of trade, but this simply will not stand and it is impossible to believe they could get any form of retraining order. - [Full article]
  • Current Music: Darude - "Passing By"
Smart. I would add that doesn't Apple already have an mp3 downloading scenario charging 4 cents a song?