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It is clear that file-sharing encourages the distribution of existing music, and in a paper titled “A Case Study of File Sharing and Music Output” the professor examines what the connection is between music piracy and the creation of new music.

Portugese prosecutors have declined to press charges against individuals accused of file sharing

Jammie Thomas-Rasset

the first US file-sharer to take her RIAA-initiated lawsuit all the way to a trial and a verdict back in 2007. Five years, three trials, and one appeal later, she owes $222,000 to the recording industry for sharing songs on the Kazaa file-sharing network, but she doesn't plan to quit fighting.

Thomas-Rasset will follow Joel Tenenbaum, the second US resident to take his file-sharing case that far. Tenenbaum—who reached the Supreme Court first because he had only one jury trial instead of three—tried to convince the justices that they should take his case to stop the music label plan to create, in his lawyer's words, "an urban legend so frightening to children using the Internet, and so frightening for parents and teachers of students using the Internet, that they will somehow reverse the tide of the digital future." The Supremes showed no interest, denying Tenenbaum's petition back in May.

Last December, we wrote about a report put out by the Swiss executive branch noting that, based on their research, it appeared that unauthorized file sharing was not a big deal, showing that consumers were still spending just as much on entertainment, and that much of it was going directly to artists, rather than to middlemen. In other words, it was a market shift, not a big law enforcement problem. At the time, we wondered if Switzerland had just bought itself a place on the USTR's "Special 301 list" that the administration uses each year to shame countries that Hollywood doesn't like.

Apparently part of the issue for the original filing to reveal this information was that some copyright holders are getting antsy that as the case drags on, they won't also be able to file civil cases against Megaupload before the three-year statute of limitations expires. However, as Megaupload's lawyers point out, there is no urgency here since the government itself made no move to share this information over the past two years. If it really wanted to share the information it had ample time to make the request and allow Megaupload's lawyers to review and take part in the process, rather than trying to route around them entirely. I'm guessing the recent successes against IsoHunt and Hotfile may have contributed to the timing as well. The MPAA pretty clearly thinks it can use those two cases to go after Megaupload as well, outside of the criminal case which will continue.

A ruling handed down yesterday by Germany's highest court represents a blow to rightsholders in their quest to clamp down on illicit file-sharing. The court ruled that the parents of a teenager who had made available more than 1,100 songs on file-sharing networks can not be held responsible for their son's infringements, nor be required to monitor or hinder his online activities.

The Court ruled that the parents had met their parental obligations when they informed their child of "basic do's and don'ts" including that file-sharing copyrighted content online is illegal. Furthermore, the Court ruled that the parents were not required to monitor their child's online activities nor install special software to restrict his online behavior. This would only be required should the parents have "reasonable grounds" to presume that their child would engage in infringing activities online.

Byrne and Doctorow were there to talk about how the internet has affected the music business. While that was certainly a large part of the discussion, the conversation also touched on all the ways technology and music interact, from file sharing to sampling.

Doctorow pointed out that two of the best-selling and most critically acclaimed hip-hop records of the 1980s—Public Enemy’s It Takes a Nation of Millions to Hold Us Back, and the Beastie Boys Paul’s Boutique—would have each cost roughly $12 million to make given today’s rules surrounding sample clearance.

This is hardly a surprise, but similar to the Joel Tenenbaum case, Jammie Thomas-Rasset (the other person sued for copyright infringement for using a file sharing system), has lost again. The appeals court (8th Circuit) has ruled that $9,250 per song infringed is perfectly reasonable and that the judge in the case, Michael Davis, erred in calling for a new trial after the initial jury verdict (the first of three). There were a number of procedural issues here, and it's worth pointing out that Thomas-Rasset herself more or less asked the court to bring back this first verdict and focus on the Constitutionality of the damages amount. So, the whole mess with the three separate district court trials sort of gets swept under the rug. However, the court simply isn't buying Thomas-Rasset's claim that the statutory damages are unconstitutionally punitive and a violation of due process. Basically, it says that the fact that statutory damages are completely out of whack with actual damages doesn't matter, because the point of statutory damages is that they're disconnected from actual damages on purpose (because, in theory, they're put in place because actual damages are difficult to assess).

Further evidence of overeager and illegal police work emerged Thursday in New Zealand as Inspector General of Security and Intelligence Paul Neazor released a report on the illegal bugging of Kim Dotcom and Megaupload programmer Bram van der Kolk. Two GCSB officers were present at a police station nearby Dotcom’s mansion as the raid took place.

Police weighed several options for the raid named “Operation Debut,” undertaken at the behest of US authorities, and sought to take Dotcom and associates with the “greatest element of surprise” and to minimise any delays the in executing the search and seizure operation should the German file sharing tycoon’s staff be uncooperative or even resist officers on arrival.

The police planners also noted that “Dotcom will use violence against person’s [sic] and that he has several staff members who are willing to use violence at Dotcom’s bidding” after a U.S. cameraman, Jess Bushyhead, reported the Megaupload founder for assaulting him with his stomach after a dispute. Based on Dotcom’s license plates such as MAFIA, POLICE, STONED, GUILTY, and HACKER, police said this indicates the German “likes to think of himself as a gangster” and is “described as arrogant, flamboyant and having disregard for law enforcement.” However, the documents show that Dotcom had only been caught violating the speed limit in New Zealand. The request for assistance from the STG notes that the US investigation against Mega Media Group and Dotcom was started in March 2010 by prosecutors and the FBI. According to the documents, US prosecutors and FBI “discovered that the Mega Media Group had engaged in and facilitated criminal copyright infringement and money laundering on a massive scale around the world.” FBI in turn contacted NZ Police in “early 2011," requesting assistance with the Mega Media Group investigation as Dotcom had moved to New Zealand at the time.

That’s more than 10,000 files per minute….

The continuing debate about the NSA’s mass-surveillance is also likely to have helped Mega. Unlike other popular cloud hosting services, Mega encrypts all stored files so they can’t be snooped on. Similarly, the fact that former U.S. Secretary of State Condoleezza Rice joined Dropbox may have also had an impact according to Dotcom.

A search warrant obtained by TheDC indicates that the August raid allowed law enforcement to search for firearms inside her home.

The document notes that her husband, Paul Flanagan, was found guilty in 1986 to resisting arrest in Prince George’s County. The warrant called for police to search the residence they share and seize all weapons and ammunition because he is prohibited under the law from possessing firearms. But without Hudson’s knowledge, the agents also confiscated a batch of documents that contained information about sources inside the Department of Homeland Security and the Transportation Security Administration, she said.