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November 5, 2009 2:07 PM PST

Beatles copyright case down a legal rabbit hole

by Matt Rosoff
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Last week, a music site called BlueBeat made headlines by offering Beatles songs as free streams and 25 cent downloads. The Beatles are known for not making their songs legally available on iTunes or any other online forum, so observers rightly asked "how are they doing this legally?"

EMI, the record label that owns The Beatles' recordings, has a simple response: they're not doing this legally. But here's where the story gets very strange.

The legal reasoning in this case is straight out of "Alice in Wonderland."

(Credit: Wikimedia Commons (public domain illustration))

BlueBeat is owned by a company called Media Rights Technologies, which specializes in digital rights management technology. DRM is supposed to be used to prevent copyright infringement. But according to a 2007 blog post on HuffingtonPost.com by the company's founder, Hank Risan, MRT backed into this business after being--get this--targeted by the RIAA for copyright infringement.

As Risan explains in his post, he and a partner had posted a bunch of streaming-audio files to a Web site about the history of music. The RIAA issued a takedown notice, and the site took the streams down.

The streams had been protected by Windows Media DRM, but according to Risan, an update to the Media Player broke the DRM. In response to this flaw, Risan created MRT and built his own DRM system, which he claimed would be far more robust than the systems on the market at that time. Then, in 2007, MRT sent cease-and-desist letters to Microsoft, Apple, Adobe, and RealNetworks, ordering them to use MRT's DRM technology instead of their own, on threat of legal action.

The legal reasoning was twisted--basically, MRT argued that the Digital Millennium Copyright Act should force these companies to use the most robust DRM technology available, even if that technology was created by somebody else. Predictably, nothing ever came of this demand.

MRT's legal reasoning is equally funny this time around, as Ars Technica reports. According to the report, MRT claims that it didn't post the exact Beatles recordings. Instead, it posted "psychoacoustic simulations," then added simple video content to them. This constitutes a new audiovisual work, and isn't covered by the existing copyrights, MRT argues. In fact, MRT even went so far as to apply for copyrights on the "new" works!

Perhaps this is all some kind of metacommentary on the frustrating inconsistency of U.S. copyright law, but I predict that MRT is going to be laughed out of court. In the meantime, if you want your Beatles music online, it's still available on BlueBeat as of the time I posted this. I didn't want to give the company a credit card to test the whether the downloads work, but the streams sound pretty close to perfect...especially considering that they're only psychoacoustic simulations.

Matt Rosoff is an analyst with Directions on Microsoft, where he covers Microsoft's consumer products and corporate news. He's written about the technology industry since 1995, and reviewed the first Rio MP3 player for CNET.com in 1998. He is a member of the CNET Blog Network. Disclosure. You can follow Matt on Twitter @mattrosoff.
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by Renegade Knight November 5, 2009 2:52 PM PST
As I understand the things, they are new works and they only need pay royatlties per standard agreements already ironed out to cover sampling or covers.

It's only the nuance of how different the works need to be to be covered by the existing laws and agreemetns vs. a blatant rip off of the orginal work.
Reply to this comment
by JoeF2 November 5, 2009 2:55 PM PST
That would only work for fair use. Using the whole song is way past fair use, and likely needs permission from the copyright owner of the song.
by Pete Bardo November 5, 2009 3:49 PM PST
That's not fair use, it would be a derivative work based on the original--but only if it were substantially different from the original. Moving a few bits around does not establish it as a derivative work. It's just a rip-off. Excuse my pun....

And, yes, If I were to record the song and release, there's little or nothing anyone can do to stop me from distributing the recordings as long as I pay the legal fees and royalties. That doesn't appear to be what these guys are doing, either.

Good luck with that, MRT!
by eeeeeeman November 5, 2009 2:55 PM PST
This defense would absolve all RIAA offenders of any wrongdoing:

I made my own pyschoacoustic recordings as well. I used software to read the original music, then completely switched the bits around. The result was very similar to the original, but had some tinny sounds and extra static. It definitely wasn't the original song anymore. It wasn't even 1/10 the size of the original file.
Reply to this comment
by Vegaman_Dan November 5, 2009 5:51 PM PST
Simply resampling the track to another bitrate would qualify then as well. Sneaky.
by heartattackman November 5, 2009 2:57 PM PST
These guys apparently haven't read any legal decisions regarding sampling. If Vanilla Ice lost his case, I'm pretty sure these guys will too. At least Vanilla Ice wrote new lyrics.
Reply to this comment
by richfife November 5, 2009 3:12 PM PST
I see what they're doing... when you convert a song to MP3, it breaks it up into all of it's component tones and volumes and then decides how important each of the tones is and how accurate the volumes have to be in order to sound good, dropping information deemed unimportant. This process is called... Wait for it... Psycho Acoustic Modeling. Good luck with this, guys.

Key phrase of the day: Derivative work.
Reply to this comment
by JoeF2 November 5, 2009 3:26 PM PST
Yeah, they seem to claim the act of ripping a song makes it a new work. And they even tried to register the copyright for it...
by mose0 November 5, 2009 9:16 PM PST
@JoeF2
I think they actually did get copyrights!! haha
damn i can't download it from bluebeats anymore! :(
by opiapr November 5, 2009 3:18 PM PST
I could care less for the RIAA, overrated Beatles if they haven't been so abusive in the first place this things won't be going on. So go BlueBeat
Reply to this comment
by winstein November 5, 2009 3:21 PM PST
People with money and time and nothing else to do...
Reply to this comment
by xenophod November 5, 2009 3:25 PM PST
Stopped reading when you used the HuffingtonPost.com as a "credible" source.
Reply to this comment
by pentest November 5, 2009 6:04 PM PST
HP is extremely credible, except to unthinking trailer dwellers who can't read anyway.
by jd_in_sb November 5, 2009 3:39 PM PST
They are going down....
Reply to this comment
by Vegaman_Dan November 5, 2009 6:00 PM PST
Like Psystar has been 'going down' for several years now?

Just shows that you can delay things a very long time in court while still in business.
by bigpoppa--2008 November 5, 2009 3:41 PM PST
Bluebeat obviously is doing this for the publicity. Otherwise, it's suicide. I hope BlueBeat is sued right out of business.
Reply to this comment
by opiapr November 5, 2009 6:24 PM PST
And what will you get with that.? Are you a RIAA fanboy or a Beatle lover....
by viper396 November 6, 2009 12:31 AM PST
@opiapr, turning your own circular logic around on you, what exactly do you get out of it? It's obvious from your prior posts that you have some irrational hatred of the RIAA and the Beatles. You don't have to be a fan but trying to vilify and berate others because they are only makes you pathetic and shallow.
by pentest November 6, 2009 8:11 AM PST
Hating the RIAA isn't irrational at all.
by 62Sparkplug November 5, 2009 3:51 PM PST
"If I had a world of my own, everything would be nonsense. Nothing would be what it is because everything would be what it isn't. And contrary-wise; what it is it wouldn't be, and what it wouldn't be, it would. You see?" - Alice, from "Alice in Wonderland"
Reply to this comment
by pw1y November 5, 2009 4:03 PM PST
I would personally *****-slap the founder of this company. What wankers
Reply to this comment
by NikEst November 5, 2009 4:34 PM PST
There is a way we can stop people from trying to do this: Whatever lawyer defends this company should be disbarred. This is such a blatant crime no lawyer should be willing to defend a sure loss, so if they do, they are clearly not qualified to be a lawyer.

I did figure out their ultimate goal though. They wanted to copyright a ripped version of the songs, then they were going to go around suing people for doing the same thing. They were trying to replace the RIAA! The RIAA should think about suing them for that.
Reply to this comment
by pentest November 5, 2009 6:06 PM PST
You clearly flunked civics class.

So you are saying that a bank robber that is so obviously guilty doesn't get a lawyer and if one represents him, the lawyer should be disbarred?

I guess the constitution and bill of rights has no meaning for you? Assuming you are an American of course.
by opiapr November 5, 2009 6:25 PM PST
Stupid people will always make stupid comments. By the way your comment was really stupid.
by NikEst November 5, 2009 9:06 PM PST
While I understand your point for criminal matters, I speak mainly of lawsuits. As an American who does pay attention and did not flunk civics, I am of the opinion that the lawsuit system in this country needs a serious overhaul. Normally, those that bring the lawsuits are the ones that deserve disbarment. In this case, it is the opposite.

Think about it, it's not stupid. How much court time could be saved? How much of our tax money could be saved? This kind of stuff is so stupid it's enraging. This defense is clearly idiotic, will be defeated (temporary restraining order already handed down today), we need to reevaluate the lawyers that participate. Call me stupid, ok, but I'm proposing the saving of money, your money.

Allow me to reiterate so you can understand: I do not believe lawyers should be disbarred in criminal court cases for defending people. I believe lawsuits need changed, especially frivolous damage suits and IP law.
by pentest November 6, 2009 8:13 AM PST
If there are legitimate legal arguments to be made, and maybe there are( I am not a lawyer and I doubt you are) then bring it on, even if it gets tossed out during the first hearing.
by pentest November 6, 2009 8:13 AM PST
If there are legitimate legal arguments to be made, and maybe there are( I am not a lawyer and I doubt you are) then bring it on, even if it gets tossed out during the first hearing.
by rmullen0 November 5, 2009 4:38 PM PST
Don't the Beatle have enough money already? Their music blows anyways.
Reply to this comment
by viper396 November 6, 2009 12:35 AM PST
And who are you to judge whether someone has enough money or not? Let me guess, you're one of those losers who thinks anyone that is more successful or makes more money then you doesn't deserve it...
by pentest November 6, 2009 8:14 AM PST
Why should a band that hasn't existed in decades still be able to make money off it?

I don't see architects collecting fees 30 years later.

If the copyright laws in the US were rational, the Beatles music would be in the public domain by now.
by rmullen0 November 14, 2009 12:42 PM PST
No, I love capitalism. Especially crony capitalism like the one we have. The Beatles should not be able to earn lots of money. That should be reserved for the F nuts on Wall Street.
by rcardona2k November 5, 2009 7:18 PM PST
Doesn't pystar sell a psycho-acoustic version of Mac OS X? I would like to get into the psycho-acoustic business of streaming Windows 7!
Reply to this comment
by NikEst November 5, 2009 9:07 PM PST
No one wants to stream Windows 7! It'll run if you have it locally, but if it has to load over a network? My god, we'll be dead before it finishes. Otherwise though, you make an interesting point.
by solitare_pax November 6, 2009 2:30 AM PST
Much ado over nothing.

If the Beatles had bothered to make their music available online through a vendor - Amazon, iTunes, Zune or whatever - they could have avoided this whole can of worms.
Reply to this comment
by MattC867 November 6, 2009 7:24 AM PST
Not many posters here seem to know that the surviving members of the Beatles don't even own their own music. To me, the fact that the original creators don't even own their work anymore highlights the iodiocy of modern intellectual property and copyright laws.
by Renegade Knight November 6, 2009 7:36 AM PST
@MattC867

Good points.
by pentest November 6, 2009 8:15 AM PST
I agree Matt, but it is an even bigger idiocy that it isn't in the public domain by now.
by ckh1272 November 6, 2009 3:54 AM PST
Even though this more about loopholes DMCA, it should be noted that this company may want to look up the band Kingdom Come. In the late 80's, they released an album (their 1st album, self-titled) that sounded so much like"Physical Graffiti" by Led Zeppelin, it was almost laughable. They basically tried to use the Vanilla Ice excuse (when he was slammed by Queen). It did not hold water. Even though they were never formally sued, the damage was done. MRT is basically trying to use the same excuse (technologically speaking) and they will ultimately fail unless a judge is on crack and totally ignores common sense and the law. As much as I hate the RIAA, MRT should be laughed right out of court.
Reply to this comment
by fgoldstein November 6, 2009 9:35 AM PST
As someone has already noted, "psycho-acoustic simulation" is a pretty good description of how MP3 works.

As a legal argument, a better description is psycho-ceramic. As in crackpot.
Reply to this comment
by nicmart November 11, 2009 8:38 AM PST
The important thing is we don't want Paul and Ringo to descend into poverty, which is their immediate threat. Oh, if only they had won the lawsuit to force Apple out of the music player/song retailing business.
Reply to this comment
by mojobone November 29, 2009 5:22 AM PST
@nicmart :
<i>The important thing is we don't want Paul and Ringo to descend into poverty, which is their immediate threat. Oh, if only they had won the lawsuit to force Apple out of the music player/song retailing business.</i><p>

The reason they didn't win is because they <i>settled</i> with Apple Computers; I doubt we'll meet up with either in the dole queue.<p>

@MattC867:
<i>Not many posters here seem to know that the surviving members of the Beatles don't even own their own music. To me, the fact that the original creators don't even own their work anymore highlights the idiocy of modern intellectual property and copyright laws.</i><p>

What's idiotic about the Beatles being allowed to sell their interest in an intellectual property? That's how they were separated from their rights in the first place-the payment of large sums of cash on the barrelhead in return for <i>possible</i> royalties/returns at a later time. Not many posters here seem to know that the Beatles themselves never owned the rights to their recordings, (not directly, but through whatever stake the individuals each had in Apple, beginning only in the latter stages of their career) nor that there's a difference between a copyrighted song and a copyrighted sound recording. <p>

@pentest
<i>"Why should a band that hasn't existed in decades still be able to make money off it?

I don't see architects collecting fees 30 years later.

If the copyright laws in the US were rational, the Beatles music would be in the public domain by now."</i><p>

True, you don't see architects collecting money after the building's built, but the <i>owners</i> continue to collect rent as long as the building stands and people still wish to pay for its use. Perhaps architects should negotiate points if they wish to collect, as I'd imagine the architect of the Beatles sound, Sir George Martin may have done. As a matter of opinion, I believe the US law made pretty good sense prior to Sonny Bono, when it was life of the author plus fifty years, and perfectly reasonably, they would not be public domain with McCartney still breathing.
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Matt Rosoff is an analyst with Directions on Microsoft, where he covers Microsoft's consumer products and corporate news. He's written about the technology industry since 1995 and reviewed the first Rio MP3 player for CNET.com in 1998. He's also a bass guitarist and an avid collector (and digitizer) of LP records. DISCLAIMER: This blog contains the personal opinions of the author and does not necessarily represent the opinions of his employers or of CNET Networks. As an IT industry analyst, the author occasionally agrees to nondisclosure agreements from Microsoft or other companies, and he will not violate the terms of such agreements on this blog.

He is a member of the CNET Blog Network and is not an employee of CNET.

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