WASHINGTON--For artists such as rapper Chuck D,
the Internet poses an opportunity for musicians to market their
talent and make money without the interference of big music
companies.
Music executives, fearful of unregulated, pirated music traveling
across the Web, say it threatens the core of their business.
Both
sides made their cases before Congress today, although neither
pushed for federal legislation. Lawmakers seemed intent on giving
the market time to adjust before acting.
"We're still seeing what the courts are doing with the current
laws," said Rep. James Talent, R-Mo. and chairman of the Small
Business Committee, which held the hearing. "What I wanted to do
with this hearing is lay the groundwork for whatever action we may
think is appropriate."
Still, today's hearing indicated that the debate that lies ahead
will be emotional, as all sides seek to define how music will be
played over the Internet.
In essence, artists such as Chuck D are arguing for
direct-to-consumer marketing without the hassle of record company
contracts and the various fees that go into marketing artists'
music.
But music companies have directed their ire toward several
businesses they allege are illegally pirating music over the
Internet. One of those facing allegations is San Mateo, Calif.-based
Napster, a music-sharing software company popular among college
students, which faces
lawsuits from musicians
such as rapper Dr. Dre and heavy metal band Metallica.
Through Napster's service, online members
are allowed to search each others' computers and exchange music
stored in the popular MP3
format, which is used to copy songs from CDs onto hard drives.
Napster has argued it merely provides a conduit to this music and
has done nothing illegal.
A Napster representative did not immediately return calls today
seeking comment.
Tommy Boy Records CEO Tom Silverman described the attitude by
music-sharing Web users as a "culture of infringement."
"Perfectly reasonable people who would never walk into a Tower
Records and steal a compact disc because they believe it to be wrong
are doing the same thing on the Internet when they seek out and
download illegal copies of music," he said.
Music companies, particularly small labels such as Tommy Boy, are
"losing money every time a user downloads a copy of a recording,"
Silverman said, adding that his artists lose royalties from the
practice. Some artists have refused to leave copies of
works-in-progress at his office for fear they may find their way
onto the Internet, he said.
Chuck D, who offers
his music as well as new artists' works on his Web site, says the
Internet presents a unique opportunity for consumers and artists,
who no longer have to wait years to get records out. He supports
sites such as Napster.
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