Three major labels float idea of university student licensing system

Filed under Music, News

Wired is reporting some exciting copyright news. Apparently three of the big four labels have signed on to a plan that would create a royalty collection system for college ISPs. In exchange for a small tuition fee, students would be granted the right to download, share with other students, and manipulate music.

Nonprofit technology advocate Educates is shopping a version of the unlimited music plan on behalf of Warner and the other major labels to several high-profile American universities including Cornell, Columbia and the University of Chicago (see slideshow). Although talks are in the early stages, they could lead to ISP-level music licenses offered to the general public.

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In return for a university paying fees to Choruss [a non-profit royalty collection agency], its students would be able to continue downloading as they have been – bit torrent, Limewire and so on – without fear of legal reprisal. Unlike previous plans that require the use of onerous digital rights management, this one would allow students to download music in the unprotected formats they prefer, using the hardware, software and networks of their choice.

The proposed unlimited music service, as late in coming as it is, could make more sense to both labels and fans than the current system of download-and-sue, and it would allow for edge-of-network licenses for mashups, playlists and so on, with no DRM. As long as the system is priced fairly – and from what we’ve heard, the monthly per-student price would be south of $5 per month – it could provide a blueprint for larger ISP-level music sharing licensing. At this point, universities are still assessing the plan.

“Cornell is participating with the other universities in discussions to try to understand the Warner Music Group proposal,” a university spokesman told Wired.com. Techdirt’s source said the slideshow was shown at Columbia, Cornell, MIT, Penn State, Stanford, University of California at Berkeley, University of Chicago, University of Colorado, University of Michigan, University of Washington and University of Virginia.

Above all, I’m struck by how Warner’s proposed system would be both more efficient and effective than the recording industry’s current enforcement tactics.   Given the widespread occurrence of infringing file sharing, it’s next to impossible to make the argument that the major labels’ litigation is achieving their desired goals.   This  doesn’t even take into account what I imagine must be frighteningly high attorneys’ fees.

Furthermore, when the majors use suits to police infringement, like they have, they can never let up. It’s not like there’s a tipping point around the corner where people would stop file sharing; and given the benefits of file-sharing in some contexts, I’m not sure that’s an end we especially want to reach.

The devils in the details, but I’m curious to see how the proposed business plan shakes out.  Choruss may offer a permanent solution to a lingering and costly issue — for both labels and students.

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