Nick Clegg on file sharing and illegal downloads

Peter Mandelson’s proposals to introduce harsh penalties for people suspected of making illegal file downloads have come in for much criticism, particularly for the low standard of proof that would be required and for deploying too much stick and not enough carrot in an attempt to change people’s behaviour. So it was the main topic I picked for the bloggers interview with Nick Clegg during party conference.

Here is Nick’s answer:

(Also available on the YouTube site here.)

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33 Comments

  • If Clegg had any guts he would say a Lib Dem Government would continue with the current approach of turning a blind eye. What I just saw on that Youtube video was a sort of mealy mouthed “yes, I can understand X but I can also understand Y”.

  • sanbikinoraion 25th Sep '09 - 12:29pm

    I didn’t even watch the video to the end, because the first 90+ seconds are pure waffle.

    What is the Lib Dem official line on filesharing and the government’s current consultation? Why doesn’t Nick know what the line is, if we have one, and why don’t we have one, if we don’t?

  • Krzysztof Oktalski 25th Sep '09 - 1:45pm

    Hey Rob

    I’ve got a small band signed to a UK independent. I don’t expect to be paid forever for something, but getting paid in the first instance would be a good start. To clarify, this isn’t so much about copyright as people downloading rips of your album for free. Basically, the answer for the artist is to make more commercial music; I think there are a lot of bands we have today that would never of happened if they thought like that – Pink Floyd, for example. I’m all in favour of reducing the copyright terms – 20-30 years seems ample to me. Licensing is (/was) usually secondary to independents, selling comparatively small numbers of units profitably is what’s given the UK one of (if not the) most diverse musical cultures on this planet. You can download a lot of independents discographies wholesale now, for free – the collective work of hundreds of normal musicians for nothing. The majority of the people effected by this are gigging musicians, they get paid £50 or so for a gig and get a few quid here and there from recording and publishing. They’re not popstars, they’re the fabric of music in this country and they’re the exact people you’re attacking. Popstars will still get their advances, and live in their unreal world – it’s the normal musician that are most damaged by such attitudes. Majors don’t need to balance the books in a single industry, they can sustain losses in a way independents can’t. How is this any different from the “support local farmers” argument? Why are you so defensive of some industries but you’d leave music exclusively in the hands of big business?!

    On the day of release of our album we found a blog with a link to it and a hit counter for that link, the number far exceeded what we’d ever hoped to sell; hundreds of blogs posted the album. 5 years ago a big proportion of those downloaders would have used it as a preview and bought the album, now they’re so used to it they just don’t buy any more (people justify this with the “we go to gigs” argument, which I’ll come on to later); this is a cultural trend. Music is no longer a good career choice in the UK, the industry is too unstable to rely upon in any way – when you have kids this is not going to be a lifestyle that sustains your family unless you are very, very lucky. What this will mean is less young people choosing to create music in the UK.

    Huw

    The only people that think it isn’t theft have never spent 2 years of their life making something, only to have it stolen. That is the divide. In reality very little of what you say is true and you’ve just made the argument for disposable culture and mediocrity in music. Good luck with that.

    What ISPs can and can’t do is a function of legislation, and that is what we’re debating. Therefore, the status quo is of no interest.

    Regarding the free publicity that you speak of, what exactly are you publicising, given that you’ve already given away your product for free? Gigs? I think you need a reality check, go and talk to some bands about the current landscape – for all but the biggest bands it’s hard to command a fee that could in any way be considered a wage. How do you think they should live? Let me explain how this works : major=advance, indie=split profits. If there are no profits to split then the only people that can operate are majors, because they can cross-sell (Hannah Montana, High School Musical, Pop Idol, American Idol, etc, etc); they have access to multiple revenue streams that indies don’t.

    Spotify is a step in the right direction, but as you point out, it isn’t free at all, it’s simply paid for with advertising. So, in this paradigm you’re suggesting reducing the quality of music listened to (the streams are well below CD quality) and accepting advertising whilst listening. Is that the listening experience that you want our culture to have? If you think paid for by advertising works then you probably want to get rid of the BBC too – but, as we know, the Beeb seems to make better quality programmes because of the way it’s funded…..maybe funding all our art via adverting isn’t such a good idea?!

    “Filesharing is a scapegoat they use when people ask them why they’re not doing as well as forcasted, despite the fact that the real problem is that they have totally failed to take steps to embrace the true potential of the internet.”

    Indies don’t forecast, they put out music they believe in and pray it’ll work! Indies don’t spend lots of money of advertising and they’re usually at the forefront of embracing “the true potential of the internet”. You may see this as a lack of business savvy, yet for 30 years we’ve led the world in the creation of independent labels and developing alternative artists; these labels and artists often don’t have a lot of money, they create some of the most diverse music the country has to offer. Everything works on small margins, and as those margins decrease it’s becoming harder for them to operate outside of popular culture. Read up about Rough Trade, Factory, WARP, ZTT, Domino, Ninja Tune , Creation, Tru Thoughts, XL, Beggars Banquet, etc – none of them would exist in the world you envisage, and without them, I can’t see that Britain would have much of a musical legacy. Your argument basically means that only majors could compete, and they will be increasingly less likely to take risks; so when you’re sick to death of hearing the latest pop idol in 10 years time and there’s no alternative, recognise that your own attitude caused the problem. This stance has and will lead to people like Simon Cowell becoming the profitable arm of music.

  • Perhaps the Lib Dems could be really radical and come out against the very idea of IP from a radical Liberal position? Some good arguments here: http://mises.org/books/against.pdf

  • Krzysztof

    You have a lot of valid points, but you’re still missing the really big issue.

    Filesharing is here to stay not least because it has masses of legitimate uses (open source software, the patches for my online game etc). The failure of the music industry to embrace then new technologies means that you’ve lost one, and maybe soon two, generations of listeners and turning them all into criminals by passing draconian laws that do nothing but alienate them will only dig the hole you’re in deeper. You need to change attitudes. You won’t succeed with the current generation, give up on them as the cost of your own failures, and look to winning the next generation; with luck if you provide the service people want, you’ll also win back a large proportion of the current generation.

    The music industry has for a very long time been it’s own worst enemy. How many millions of people were driven to filesharing by the stupid DRM the music industry used to use? I paid for the music, but it won’t work in my car, it won’t work on my computer, it won’t work on my mp3 player. I have to own 3 different mp3 players because different music companies use different DRM. The company or service stops and the music I own can’t be played any more.

    If you are faced with two choices; the easy and the hard, you’ll chose the easy; even better if it’s free.

    What the music industry has to do is provide a service that people want, that’s easier and better than the illegal firesharing and priced at a level people are prepared to pay. People will pay for convenience, and people prefer to be law-abiding, yet you’ll always drive people to the illegal stuff unless you provide it at a price they perceive to be appropriate. That’s as true about illegal music downloads as it’s been for every other commodity. THe massive US book publishing industry started as a pirate organisation, selling illegal copies of UK books, eventually it went legit. You need to find a way to make filesharing and music-downloading legit. People want it, that’s obvious, you need to find a way to provide it.

    You need to treat illegal filesharing as you would any competitor. Why does someone buy expensive designer goods instead of cheaper ones? Why buy the more expensive mp3 player, instead of the dirt cheap one? You need to figure out as an industry how to provide something the consumer is happy to pay for.

    If you want a suggestion.. here’s mine.

    A single online “store” for music, backed by every single record label, with every possible song available (a one-stop-shop) (Why hunt around 5 different websites for your favourite bands, with different payment system, layouts, etc, if you can download them all from one place for free?)
    It provides a spotify type service, using ads or very cheap subscription service, allowing people to preview bands, albums, get used to them, or maybe micro-payments (1p a play for example).
    An easy way to “share” music with your friends (e.g. playlists in the spotify-type-service). Nothing promotes a band better than one person giving someone else a copy saying “here, listen to this, it’s fantastic”.
    Easy ability to buy stuff from the band, e.g. concert tickets, merchandise. Maybe give people a “free” month’s subscription if they spend over a certain amount.
    Allow easy purchasing of physical copies.
    Provide free (and DRM free) digital downloads of any physical media bought.
    Allow artists to supply directly, not just labels. (a system like amazon-market place for example)
    Pay a sizeable portion of the profit to the artists, people would much rather their money goes to their favourite band than some corporate suit.
    None of this regional restriction (cartel) behaviour. The service and all the music must be available in all countries at the same time. Those that are left out will just go back to filesharing.
    Easy to use interface.

    The better your service, the more people will use it, the less people will be on filesharing networks and the less music will be available on filesharing networks and the more people will need to turn to your service for their music.

    If you want a far-away, although possibly quite appropriate, analogy (a friend once described the music industry as government supported drug cartels): If the government made heroin available from legal shops, people would buy it there in preference to the drug pushers, even if the cost was the same. It’s safer, it’s legit, it’s much more convenient.

    The war on filesharing, just like the war on drugs, will never be won. People will always want to fileshare, just as people will always want to do drugs, what you need to do as an industry is figure out how you can convince most people to use your service, not the competition. Making your customers criminals for wanting your product can hardly be good for business; if they have to pay massive fines, or go to jail, they certainly won’t buy your music.

  • Krzysztof Oktalski 25th Sep '09 - 6:55pm

    Hey Martin

    Thanks for your reply. Completely agree with much of what you’ve said, indeed a decent platform, with a level playing field for all would be a great thing. I know only too well that it’s far easier, quick and more convenient to download than any other method currently available – this is frustrating. I used to agree with nearly everything you said, then I went through the process and had a rethink. A decade or so ago the internet, and even filesharing was pretty healthy for music. People found single pieces of new music on Napster, took ages to download on dial-up, and often went out and bought the CD on the strength of it – I did it, it was great; bought more music than at any other time in my life. Now you can get nearly entire genres of music. That is a big difference from the Napster days. Early on filesharers were the biggest music purchasers I knew, but now my neighbour gets his entire music collection from torrents, things have started to go badly wrong and this will have a trickle down effect on the smallest selling independent labels – the very culture that makes the UK music industry so interesting and diverse. What you’re left with is mainstream pap made by corporations that are entirely concerned with making money in the long term, in several different industries. They don’t care if they can’t make money on the music, that can be written off against other activities.

    Regarding “the music industry” – its pretty big, and its hard to make generalisations about it such as the ones you’ve drawn. Many record companies were as opposed to DRM as we are; it’s not their “fault” – for an independent two man operation it’s hard to pay hundreds of thousands for people to sit on standards committees…actually, it’s not hard, it’s simply not possible. The vast majority of the music industry has little to no say in the overall development – that’s still largely the domain of the majors and Apple.

    The “war” on drugs and downloads are not the same thing.

    Drugs are obtained via illegal, unregulated distribution networks.
    Downloads are obtained via regulated, legal distribution networks.

    This idea that it can’t be stopped is largely bollocks, perpetuated by folks that don’t understand how them interwebs work. Most forms of filesharing is still done on centralised servers, and the traffic is passed through many very well regulated networks and hubs. We already inspect what goes through these nodes. We’ve done very well as a society at stopping child porn with these methods (and that also helped clean up the music industry a bit too). My big gripe is how mainstream and normal its become, and that nobody really thinks that matters – I wouldn’t really care if I thought people naturally had some kind of “fair-use” morality built-in; I used to think that was the case, but in recent years I’m less sure of it, people now seem to take it for granted. It’s a social norm to download everything an artist has made without giving anything in return for it, if you can’t see any issue with this then you’ve invented an entirely new form of socialism – even Marx would of had issues with this arrangement!

    “You need to treat illegal filesharing as you would any competitor. Why does someone buy expensive designer goods instead of cheaper ones? Why buy the more expensive mp3 player, instead of the dirt cheap one? You need to figure out as an industry how to provide something the consumer is happy to pay for.”

    Why would you be happy to pay for anything if it was free elsewhere?

    I know a lot of people think it isn’t stealing, but it is. You can get it on Spotify, youtube and there are previews on amazon, the company website, our website, myspace, etc. So when people download a CD quality rip, they’re not usually there to preview it. It just so happens the product I make can be easily reproduced, if I stole your product would you be happy? To be honest, it’s not even the “try before you buy” culture I have an issue with, it’s that we have new generations of people that really don’t see that there’s a problem at all here – your “lost” generations.

    Generally, you get what you pay for. Sorry for any typos, in a hurry!

  • Krzysztof Oktalski 26th Sep '09 - 6:31am

    Mark

    People read this blog to determine what the Lib Dems think on certain issues. Lets hope that your post isn’t indicative of general Lib Dem economic thinking; the inference seems to be that if we all gave things away, we’d all make more money.

    Srsly.

    It’s truly disturbing that you seem to have groupthink that’s beyond socialism (the 2 main parties at least try to sound grown up on these issues) but it would seem the Lib Dem position is complete disdain for IP and for the music industry. This collective wisdom that musicians should give thier primary product away free in favour of secondary/tertiary revenue streams is just silly.

    I’ve got a feeling when it gets to the election the Lib Dems are going to have a big problem with diminishing returns in this marginal too. Anyway, I’m off to a festival in Holland, have a good weekend all – be seeing you.

  • sanbikinoraion 28th Sep '09 - 2:17pm

    £3.2bn is approximately 0.23% of Britain’s £1400bn GDP. Just to put that number in proportion.

  • Krzysztof Oktalski 28th Sep '09 - 4:10pm

    Hi Sanbikinoraion

    A quarter of one percent is a lot of GDP for a single product, plus it’s not just this product, it’s all digitally reproducable creations that our country produces. Also, that particular product clearly has a whole heap of dependancies.

    We’re the second largest exporter of TV programmes in the world. Our film industry is one of the few area that our economy is growing in, The rules apply to all of these parts of our economy, not just music, surely?! Are you really ready to write off these important growth sectors in favour of Free?!

    “the Creative Industry…accounts for 6.4% of UK Gross Value Added and is the largest in Europe with some 157,400 businesses in 2008.”
    http://ukinargentina.fco.gov.uk

  • sanbikinoraion 29th Sep '09 - 12:43pm

    Just because that’s the way filesharing *currently* works certainly doesn’t mean that’s how it would continue to work. There are already 100% anonymized, encrypted darknets out there just waiting for someone to ban bittorrent before they explode in popularity, and once on the darknet it’ll be impossible to track filesharing, even through entrapment methods like honeypots. I’m afraid that it is simply too easy for people to copy stuff for free to be able to stop it via technological means.

  • Malcolm Todd 29th Sep '09 - 1:49pm

    we could stop most of this problem overnight without any disconnections, court-cases, etc. We did it with child porn, terrorist materials, etc.

    Wow. Child porn and terrorist materials on the net have been stopped? Excellent news. Perhaps I’d better vote Labour after all, as they’ve obviously done a tremendous job. What else could they achieve, given the chance?

  • sanbikinoraion 29th Sep '09 - 3:43pm

    The internet is my job, too, not that it really matters. Again, you’re confusing what’s available *now* with what could be available if the demand was created. Give me a week and I’ll write you a p2p app that encrypts traffic (although it might not be very robust or useable!). Give me another week and I’ll write you one that can defeat packet sniffing simply by adding arbitrary traffic noise. Those two elements are sufficient to defeat the currently-proposed legislation and I would bet cash money that, if such legislation was introduced (and enforced), we’d have widespread encrypted p2p use within a couple of years. Sure, then there might be more legislation, and then more technological ‘progress’. It’s an arms race that the hackers will always win.

    I don’t want to deflect our debate away from the technical issues – I don’t want to seem like I’m changing the subject – but in passing I think that it’s worth saying that perhaps there are other good reasons why we might not prefer a technological solution to the problem of people sharing copyright material for free. I for one am deeply suspicious of the idea that all of my internet traffic should be monitored all of the time – no-one is arguing that we should open everyone’s mail to ensure that there is no copyright-infringing material in that, after all, but the Royal Mail is still a pretty good way to pirate music.

  • sanbikinoraion 29th Sep '09 - 4:24pm

    98.5 per cent of ISPs already take down or block illegal sites through the Internet Watch Foundation, a self-regulation body created in 1996 that monitors content and reports obscene images to police

    Remind me, wasn’t that the same organization that blocked Wikipedia edits for a while…?

  • sanbikinoraion 1st Oct '09 - 1:52pm

    No, you’re confusing what could be with what is. … Make the app you suggest, we try to find vulnerabilities and then you have an argument. It seems unlikely that you’re going to show up here in a fortnight with this app as you’ve suggested, so this would seem to be a blind alley you’re walking us down.

    I have better things to do with my time than prove obvious things to idiots. Sorry, but I was claiming to be able to connect a couple of sockets with SSL (or similar) and send some dummy messages that the other end would ignore. It’s really that simple. It is only because there is no need to encrypt that we currently don’t.

    They may win the code, but it doesn’t mean they’ll create a technology my neighbour will use.

    Your neighbour already uses a stack of technology they have absolutely no idea how or why it was created to get what they want. Kazaa, eMule, bittorrent, iplayer, CD and DVD ripping software… what makes you think that the next filesharing protocol will be ignored?

  • Hi Mark

    That rather proves my point. Dan Bull is absolutely terrible – cheap, poor quality writing, arrangements, recording, concepts – a pastiche of “The Streets”; under normal circumstances neither of us would ever of heard of him. Because he’s “free” and having a pop at Lily Allen, you’ve brought him to our attention; whereas, like her or hate her, you have to admit Lily is talented? So, the talented girl has left music because she can’t make it pay, and Dan Bull has come to replace her, and this is progress how? You think this is going to help the UK’s creative industry? What you’ve provided is a good example of how “Free”=dramatically lower quality art; imagine if your paradigm happened across all digitally replicable mediums! That would include the BBC – I’m sure there’s a kid in his bedroom that would love to do the news – why don’t we just give him the job? People train for years to become good media presenters – the BBC is a high-quality news organisation and it would be damaging to our country to stop its primary revenue stream. You’ve provided yet another example of how your idea degrades all creative works it touches, and leaves us with cheap imitation – this is not the thinking that made us a musical pioneering nation; it encourages “Safe” (pun-intended) moves and discourages innovation, as you have shown . Without Lily Allen, Dan wouldn’t have the traffic to of made this debate happen. What do you think that’s worth? Not enough to make a living from I’ll wager – it’s not free, someone else is paying for it.

    If Lib Dem’s think this is progress then it’s a good job it’ll be a while before they can get their hands on our creative industries. You really seem to be pushing for “Free”, which means you genuinely don’t mind writing off that chunk of the economy. This doesn’t make any sense to me – why would a political party push for the country to have lower revenue?! Utter insanity! Show me something new, exciting and interesting, not “Free” photocopies of a real practitioner, because you can’t get the photocopy without an original to clone. Can’t wait to hear your example of classical orchestras following the same concept! “I’ve got this idea guys, we’ll get 30 of the countries greatest players to work for free, record the results in an awesome studio, then post the album on the internet…for free. Then we’ll make loads of cash from Google Adwords!…and gigs…that we would of done anyway.” – it’s not a scenario I’m familiar with.

    I’ve read a lot of your posts Mark, and I’m usually impressed by the thinking behind them, but this argument does you no favours and I’m really not sure where you’re coming from with all of this. You’ve still not demonstrated how you’re going to replace 80% of music revenue with free, and retain a vibrant creative industry; instead you’ve given us Dan Bull, the exact problem I was inferring all along. If your logic was applied to the BBC, we’d have some kind of Public Access network, paid for by ad revenues, replace our national broadcaster. There would be little to no money in the industry and we’d wind up with poor quality programming, presenters and information. All that you’re arguing towards is a two-tiered society; the free and low quality (poor) vs. the paid for high quality (rich). I thought this was the exact social divide Liberal Democrats were opposed to, yet here you are, running towards the digital apartheid as quickly as you can with arms outstretched! You offer the creative industry a nightmare vision of the future and would leave us a poorer country for it – the UK should not be a subsidised market for American advertising companies!

    Mark is clear proof that Lib Dem’s are out-of-touch on these issues and need a clear, considered policy on the future of the creative arts and filesharing. There may be a really good solution, that our discussion hasn’t happened upon yet, but nobody seems very interested in finding it.

    Hi sanbikinoraion,

    > It’s really that simple.

    No it isn’t, that’s just sending a message via SSL, not the p2p app you initially claimed. There are many flaws in what you’ve written, as I’m sure you’re aware – your cert issuer would of said in your certification agreement something like :
    “The Subscriber shall not :
    (ii) use the Subscription Service to transmit, receive, view or in any other way use any information which may be illegal, offensive, abusive…or which is in breach of confidence, copyright or other intellectual property rights of any third party”

    …maybe you don’t have a cert issuing authority, then you have to deal with the same issues the Tor community faces :
    https://blog.torproject.org/blog/debian-openssl-flaw:-what-does-it-mean-tor-clients%3F

    You’re saying you can do in an afternoon what the US military failed to achieve with Tor, and that it’s simple. It clearly isn’t; until you have written the uberclient, there are still plenty of technological solutions to the issue of filesharing, that would prevent much of the current copyrighted material being transferred by mainstream users.

    Regardless of all of this stuff (that won’t be resolved here and is thus pointless), I understand that you can’t stop someone determined enough, as I said earlier, but you can stop the masses and that would be a start. I’m not talking about disconnections, fines, etc, I’m just saying lets stop our major hubs routing traffic for well known sources of illegal filesharing. If people want to take their chances with secure VPNs from their browser to Pirate networks they’re taking a risk that’s completely up to them, but I can’t see it becoming mainstream any time soon. As I understand it, you don’t deal with burglary by removing all the locks from your doors and windows and decriminalising it, because people can always get in, if they really want to.

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