Digitised music distributed via the Internet has become extremely popular. The primary format for this distribution is a compression technique known as MP3. These MP3 files have become associated with music piracy and have left the music industry actively seeking a means to regulate the phenomenon. This paper firstly presents a background to the Internet and the influence it has had on the music industry. Next, the steps taken by the music industry against music piracy in the form of the Secure Digital Music Initiative are discussed. An explanation of this organisation is provided. In explaining the Secure Digital Music Initiative, a model for implementing technology to enable the secure distribution of music via the Internet is described.

Music piracy has been and continues to be the biggest threat to the continued existence of the music industry. In addition, the Internet continues to expand on a daily basis at an alarming rate. It stands to reason that the music industry views music piracy on the Internet as a major problem (Hu, 1998).

The Internet is being used as a distribution channel for digitised music. This digitised music is primarily in a format commonly known as MP3, or MPEG Audio Layer-3 (Hu, 1998). This, in itself is not a problem, and can be seen as having many benefits. Digital distribution of music can help reduce the costs involved and reduce the price of music for the consumer. However, this format of distribution can lead to problems. Music piracy is the primary problem facing the music industry, but the consumer also faces a problem in identifying valid sources of music.

The primary objective of this paper is to establish what the status is of the current technology that surrounds the integration of the music industry with the Internet. It also examines the technology that is being developed for securing music industry rights (specifically copyrights). The consumer aspect of digitised, downloadable music will also be investigated.

In looking at these issues, this paper will firstly look at the development of the Internet. Then it will investigate the MP3 format, its history and implementation. The paper will also look at the various forms of music piracy and how they are manifested in a digitised and downloadable music format. The current industry’s attempts to combat the problem will then be investigated with a specific study of the Secure Digital Music Initiative (SDMI) and the model that the SDMI has proposed. The paper will conclude by providing a summary of the findings and a look at future technologies for digitised and downloadable music formats.

As with many technological concepts, no one could have predicted the astronomical growth that has seen the Internet develop into what it is today. Hundreds of millions of consumers make use of the Internet for purposes as diverse as online shopping and emergency medical care (Global Internet Statistics, 2000). As new technologies evolve so they become more interdependent and converge using the Internet as a medium. As consumers become more technologically aware, and technologies become more advanced, so new markets for commerce are formed.

The Internet began as a United States defence force project to ensure that the essential network infrastructure of the defence force remained operable through such events that may normally have caused interruptions (e.g. the loss of a link in the network). Large corporations seeking to gain a competitive edge in the market eagerly adopted this concept. Those independent corporate networks ultimately formed the single, global Internet (Lerner, 2000).

Although there are about 200 million users of the Internet, this represents a relatively small proportion of the global population. In fact, half of the global population has never even made a telephone call and live in abject poverty. According to Vinton Cerf, "The Internet is for everyone" (Cerf, 1999), but there are a number of considerations that need to be taken into account before Cerf’s statement can become a reality. All those wanting to use the Internet should be able to afford it. Governments should not restrict access to the Internet, as one must have the freedom to speak and the freedom to hear. The Internet must be able to keep up with the explosive demand for its services. In order for the Internet to be user friendly, it can’t be too complex. It should allow its users to protect their privacy and the confidentiality of transactions conducted on the network. And it should be used responsibly, mindful of the rights of others who share its wealth (Cerf, April 7 1999).

One of the most significant realms of the convergence of modern technologies has been that of the Internet and the music industry. Music is easily digitised, and thus forms a perfect commodity for online retail trade (Oliver, 1997). A piece of music can be converted into a digitised format and distributed as such. MP3 is currently regarded as being the primary technology used to digitise music.

MP3 is an audio encoding format that has become very popular because it can compress an audio file by a factor of 12, whilst retaining good audio quality (Fraunhofer-Gesellschaft, 1999). The MP3 format has gained popularity not by virtue of the music industry, but by the consumers themselves. In fact, contrary to previous music media formats, such as compact discs and audiocassette tapes, the music industry has had little to do with the use of MP3. Due to the ease with which consumers can create MP3 music files, the consumer is seen as being the driving force. No music industry input is required.

The MP3 movement - consisting of the MP3 format and the Internet to advertise and distribute MP3 files - has done several things for music. Firstly it has made it easy for anyone to distribute music at nearly no cost, and secondly, it has made it easy for anyone to find music and access it instantly (Brain, 2000).

In order to make use of MP3, a consumer requires the following (Brain, 2000):

· A computer with a sound card

· An Internet connection

· An MP3 player.

 

The MP3 player normally takes the form of a software application on the consumer’s computer. This application can be freely downloaded from the Internet and is usually simple to operate. An alternative to the MP3 player application is a portable MP3 player. Such devices have recently appeared on the market, and due to their solid-state nature and extremely small size, are proving very popular. A consumer can transfer MP3 music to the portable player and can thus have a portable and readily available music source.

The acceptance and wide use of MP3 by consumers has lead to a few inherent problems that need to be highlighted. These problems include legal and copyright issues.

Music piracy has been a continuous threat to the continued existence of the music industry for a very long time (Michalson, 1997). MP3 as a format is not music piracy, but it can be used for the purposes of pirating music. This practice has caused much concern within the music industry and could lead to the end of the music industry, as we know it. To better understand the situation one should investigate what constitutes a copyright infringement and what could be defined as music piracy.

In terms of South African Copyright Law, copyright is the right given to the owner of certain types of works not to have his/her work copied without his/her authorisation. Generally speaking, a work is copyrighted when it has been created by the author's original skill and effort and has been reduced to a material form and is therefore not merely an idea. One does not have to register copyright, as it arises as soon as something tangible is produced as a result of the author’s original skill and effort. Therefore, all works of expression are protected by copyright as soon as they are created and fixed in a tangible medium. This means that visitors to a Web Site are not entitled to freely copy and distribute the content from that Web Site, without first obtaining that creator’s prior permission. Obviously this definition extends to all objects or files that are found on a Web Site, including MP3 music files. If one does not first obtain permission from the copyright owner, this is considered copyright infringement and can be punishable by the law (Michalson, 1997). Music piracy is a severe form of copyright infringement.

Piracy is a term used to describe all varieties of unauthorised recording. It is a problem that adversely affects every sector of the music industry - retailers, distributors, artists, composers, publishers and record companies all lose out when consumers are sold a pirate copy rather than a legitimate recording. Music piracy is made up of 3 main categories (Michalson, 1997):

- Bootleg Recordings

These are recordings of live performances that are made without the permission of the artist or the artist’s representative.

- Counterfeit Recordings

These are copies or replicas of legitimate recordings that are made to look as though they are original or legitimate.

- Pirate Recordings

These are copies of original music recordings that are distributed in various forms, but not as originals. MP3 music files can fall into this category. Original music recordings are copied into MP3 format and then distributed via the Internet.

 

MP3 music files are quite often illegal, pirated copies of original music that are distributed via the medium of the Internet. Because of the nature of the piracy, the damage is difficult to calculate but not hard to envision. A lot of money and even the existence of the music industry is at stake. Many individuals see nothing wrong with downloading an occasional song or even an entire music album off the Internet, despite the fact that it contravenes copyright legislation (The Recording Industry Association of America, 2000).

There has recently been specific legislation passed to enable the law to address digital music piracy concerns in the form of MP3. The No Electronic Theft (NET) Act makes sound recording copyright infringements occurring on the Internet a criminal offence, regardless of whether or not there is financial gain from such infringements. A copyright is infringed when a song is made available to the public by uploading it to an Internet site for other people to download, sending it through e-mail or ‘chat’ services, or otherwise reproducing or distributing copies without authorisation from the copyright owner (The Recording Industry Association of America, 2000).

It comes as no surprise that the music industry has reacted strongly in opposition to the MP3 phenomenon. With the industry threatened, moves have been made to counter piracy, but at the same time to try and benefit from what MP3 can offer. The Secure Digital Music Initiative is one of the results of the music industry’s actions to prevent piracy on the Internet.

One of the main problems with the Internet is that it has and continues to cultivate a culture of unlicensed use. Most of the Internet is free – free to access and free to use. As far as MP3 music files are concerned, the music business and its artists are the biggest victims (due to music piracy), and ultimately consumers also suffer. Unauthorised Internet music archive sites (using multiple formats, including MP3 files) provide illegal sound recordings online to anyone with a personal computer. Music can be downloaded and played indefinitely, without authorisation from, or compensation to, the artists (The Recording Industry Association of America, 2000). Recent times have seen a rise in so-called e-commerce Internet applications that are geared to consumer and business markets. But the innate ability to freely access items on the Internet creates a breeding ground for music piracy that the music industry would like to see stopped.

In response to the MP3 movement and the ensuing music piracy, the music industry, in conjunction with the Recording Industry Association of America (RIAA) formed an organisation called the Secure Digital Music Initiative (SDMI). The RIAA is the trade group that represents the recording industry within the United States of America. Their mission is to foster a business and legal climate that supports and promotes the members' creative and financial vitality. The members consist of record companies that create, manufacture and/or distribute approximately 90% of all legitimate sound recordings produced and sold in the United States (The Recording Industry Association of America, 2000).

The SDMI consists of more than 180 companies and organisations representing information technology, consumer electronics, telecommunication, security technology, the global recording industry, and Internet service providers. The SDMI provides a forum for these industries to develop the voluntary, open framework for playing, storing, and distributing digital music necessary to enable the new market to emerge. The specifications released by the SDMI will ultimately provide consumers with convenient access to music, both online and in new emerging digital distribution systems. They will also enable copyright protection for artists’ work, and promote the development of new music-related businesses and technologies (The Secure Digital Music Initiative, 2000).

The SDMI has benefits for both the consumers and the artists. The consumer will be able to confidently purchase and use MP3 music from Internet sources. These sources can be verified to be legitimate, leaving no doubt in the consumer’s mind that the use of the music does not contravene copyright law. The artists will be able to use the opportunity to exploit the new distribution medium, safe in the knowledge that the music is not being distributed illegally. An artist could potentially reach a lot more consumers via the Internet, and the SDMI can ensure that the music piracy does not occur (The Secure Digital Music Initiative, 2000).

The SDMI specification is a framework for secure digital music distribution. It is not meant to provide an alternative format to, or compete with, MP3 or any other compression technique or audio technology. In fact, devices or applications that comply with SDMI specifications will be able to play multiple media formats whereas current dedicated MP3 players can only play MP3 content. SDMI-compliant devices will play content originating from both SDMI-compliant and non-compliant sources and will be able to play all existing digital formats; it is up to the manufacturer of each device to choose which particular formats to support. SDMI-compliant devices will not play illegally copied SDMI music (The Secure Digital Music Initiative, 2000). In order to properly understand how the SDMI will work, it is important to examine the model that the SDMI has proposed.

The lack of an open and interoperable standard for security is seen as the single greatest impediment to the growth of legitimate markets for the electronic distribution of copyrighted music. The SDMI model reflects the legitimate needs of recording companies for the security of digital music and the technical constraints and realistic needs of technology companies. It also reflects the needs of the consumers to be able to both verify that music is legitimate and ensure a continued benefit from MP3 music. By complying with this model, technology companies can reasonably conclude that a product will meet the security needs of record companies, and that consumers using secure electronic music with that product will have broad, legitimate access to that music (The Secure Digital Music Initiative, 1999). As a result of this model, artists and recording companies achieve greater protection and consumers experience greater value.

The model consists of three layers, namely the Application, Licensed Compliant Module, and the Portable Device layers as illustrated in the following diagram (The Secure Digital Music Initiative, 1999).

Figure 1: Reference Model Functional Layers (The Secure Digital Music Initiative, 1999)

The application layer is where all SDMI-Compliant electronic music distribution applications, software players, home library software applications, CD extractors and other applications reside. Digital rights management and screening occur in the application layer but an application may use any trusted delegate (including, but not limited to, a Licensed Compliant Module) for any task prescribed for applications. The application layer is the layer that communicates or manipulates the MP3 music file and it is the lowest layer between the consumer and the music.

The Licensed Compliant Module is the layer that transfers content from SDMI-compliant applications to portable media and portable devices that use one or more formats. When the application is unable to interpret a portable device format, the Licensed Compliant Module may serve the role of a trusted translator, so that SDMI applications are not required to communicate directly with all portable device formats. The Licensed Compliant Module will ensure that the music played is from a secure source and that no copyright infringements have occurred when playing SDMI compliant music. Another important function of a Licensed Compliant Module is to provide an abstracted device interface to SDMI applications for portable media and portable devices.

The Portable Device Layer constitutes the playback component of the portable device model, which allows for multiple formats. The portable device layer receives only protected content from the LCM/PD interface (i.e. a secure, authenticated channel), including the transfer of content to the portable device from a portable media.

Using technologies based on this model, a consumer will be able to play secure, SDMI compliant MP3 music and normal, legacy MP3 music files. The consumer will be assured of the legitimacy of secure, SDMI-compliant music. Any illegal copying of the music will result in it not being playable. However, the consumer will still be able to listen to legacy MP3 music, but in that instance, will not be guaranteed of its legitimacy – i.e. it could still be pirated music. This raises issues with the SDMI model. Essentially, it could leave the choice in the consumer’s hands, and that may not be that different from the present situation. The SDMI model may provide a solution to the problem of MP3, but the model has its own problems that must be considered.

There are, essentially, two problems with the SDMI proposals (Weekly, 1999). Firstly, digital intellectual property, especially digital audio, is insecure by nature. This is a purely technical problem, but one that is quite straightforward. When a computer program attempts to play some music for the user, it sends that data in raw form to the sound card. From a technological and software engineering perspective, it is a trivial matter to write a piece of software that pretends that it is a sound card in order to intercept the music. This software then captures all of the music that was intended for the actual sound card and stores it. In this manner, it would be possible to render any secure music format insecure and thereby provide a means for music piracy. The software industry was confronted by a similar problem when it attempted to put anti-piracy measures in place 15 years ago. The software pirates, or hackers as they became known, simply put more effort into breaking the protection around the software. It became a challenge, and one that was always met. Eventually the software industry mostly gave up on efforts to create a secure system to prevent software piracy (Weekly, 1999).

Secondly, the solutions that the SDMI aim to provide will not be in place in time. Due to the fact that there are many companies and organisations involved, the issues under development are taking a long time to be resolved. The problem is that MP3 files are currently used and have been for some time by millions of consumers. MP3 has a reputation for piracy and illegal copying, but the majority of consumers seem content to use it for the benefits it provides, and are not concerned with the problems. It could be considered to be too late for the SDMI. Even if the SDMI specifications were finalised within a year, the range of MP3 applications for digital audio encoding, distribution, and playback would prove far more compelling to the consumer than an investment in new technology for the explicit purpose of restricting their access to music (Weekly, 1999). These problems have resulted in many industry experts and consumers looking to the future for new, improved formats for digitised music.

MP3 has become the standard in digitised music. Millions of Internet users around the world use MP3 files to record and listen to music. The problem is that in many cases, this usage is illegal. It infringes copyright law, and the consumer may not be aware of this infringement. This problem is seen as being at the top of the music industry’s agenda, and all spheres of the music industry look to a future where the concept of Internet music can be regulated and controlled (The Recording Industry Association of America, 2000).

With the legal battles surrounding the MP3 format still very much in the news, other formats have begun making their way onto the Internet market. Each of these new formats has better quality music reproduction, and in most cases they produce smaller file sizes. The other consideration is that most new formats have digital security built into them already. The following provides a brief description of each of these new formats.

Adaptive Transfer Acoustic Coding (ATRACK3) is Sony’s new electronic music format. This format has the advantage of having the backing of Sony, one of the world’s largest audio system manufacturers, and quite a few of the top record companies. Sony considers the copyright system that it has developed to be formidable. This format could fail though, due to the fact that Sony is trying to promote it alone and its future will be determined by consumer acceptance of Internet sites launched early in 2001 (The Recording Industry Association of America, 2000).

Audio Acoustic Coding (AAC) is another format that Sony is involved with, and has developed alongside Dolby Laboratories. AAC has been nicknamed MP4, as it is an enhancement of the MP3 format. AAC provides better quality music reproduction than MP3 and also incorporates a secure layer. AAC has the backing of several record companies and hardware manufacturers and already has a presence on the Internet (i.e. you can already download AAC files). The downfall of AAC may be caused by the fact that the rival formats have a lot of big business and big money backing them, and also AAC has close associations with MP3 and is thus seen in a bad light (The Recording Industry Association of America, 2000).

WMA, or Windows Media Audio, is Microsoft Corporation’s attempt at a digital music format. This format has been around for quite a while already, and Microsoft claims that there are over 100 million WMA compliant players in the market already. Although the format is widely supported by the operating system software that is most widely in use (i.e. Microsoft Windows), the format does not provide sufficient security at this stage (The Recording Industry Association of America, 2000).

There are advantages to making use of the Internet as a distribution medium for music. The most significant advantage is that the cost of the music could be reduced. This reduction in price would come from the reduction in media and distribution costs. However, before such benefits can be realised, the obstacles that currently exist must be overcome. There needs to be a legitimate and secure distribution method in place. The distribution method will have to be adopted by the current huge (millions) consumer base that already make use of MP3.

As far as the current developments for promoting the legal use of MP3 are concerned, one stands out above the rest, and that is the SDMI. The SDMI has gone a long way towards developing a means to achieve this goal. The first version of the SDMI’s specification for a secure digital music distribution method was released in June 1999 and has received much comment over the past year. A few manufacturers have developed SDMI-compliant devices, but it would seem that the consumer base is not embracing the idea with open arms.

There are many more advanced formats beginning to appear on the market. The MP3 format may ultimately disappear due to the built in security that these new formats provide to both the consumer and the music industry. At this stage, the music industry continues to fight the battle with MP3, and in many cases is losing.

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