Thursday, 9 April 2015

No Free Lunch !

The Federal court has handed down a ruling that will strike fear into many Australian households.  It has ordered Internet providers taking part in what are called "Peer to Peer file sharing networks " to hand over the names and addresses of their customers who have been illegally downloading Hollywood movies without paying a hiring fee.

The Internet providers have just twenty-eight days to lodge an appeal against this "preliminary disclosure " ruling and the judge has chosen not to impose a ceiling on the amount of money that may be claimed for what the owners will regard as illegal access to their property.  If an appeal fails, it opens the door for some 4,500 Australian families to receive what are called "speculative invoices "- a claim for several thousand dollars in damages to avoid being dragged through the courts.

The cost to legally access a film is usually about twenty dollars but a "speculative invoicing "claim could run to as much as seven thousand dollars - and do huge damage to a persons credit history.  It could drag on in the courts for ages and cost a fortune in legal representation and many people simply negotiate to settle for a lesser amount.  Usually that reduces the claim from thousands to hundreds of dollars, but it is still a blow to family finances.

Such was the challenge that the Internet gave to the entertainment industry.  There has been a certain ambiguity about intellectual property rights when music or film is viewed together by friends and this introduced the concept of "peer to peer file sharing networks" .   Was this any different from a group of people gathering together to view a film or listen to music - and should each individual have to contribute a payment ?    Ignoring this doubt,  many went ahead and downloaded for free.

Piracy has long been a curse on film studio profits.  Early in the electronic age it began when hidden video cameras were smuggled into movie theatres and the film and soundtrack recorded.  This poor quality recording was transferred to DVD's which were sold in flea markets for a few dollars - but enought to make bums on theatre seats dwindle.   The product now seen on file sharing networks is high quality and is making serious inroads into movie and music profitability.

It seems that the court action that has resulted in a judgement to force Internet providers to hand over their clientile base information is the first step in a publicity campaign designed to create fear.   The mere threat of being dragged into court and possibly ordered to pay thousands of dollars in damages will probably cause the vast majority of people to steer clear of film and music downloading.  To be effective, the industry will need to be relentless in pursuing prosecutions and hard hearted in negotiating settlements.   A lot of people will be seriously financially damaged - as a result.

Fortunately, the judge who ruled on this case did impose a condition that will prevent "speculative invoicing " letters being issued prior to their format being provided for his scrutiny - and acceptance. There seems the possibility of mercy if limits are imposed, but there is no doubt that this is the first blow in a concerted campaign to restore the right to gain profit from intellectual property - for without that both the film and music industry bases face collapse.

For those who have been enjoying free downloads the day of reckoning has arrived.   The chickens are coming home to roost - and the future is uncertain.   That just tends to underscore an old witticism that someone tagged to the offers that usually accompany "deals "!

There's no such thing as a free lunch !

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