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March 17, 2011

New business models for a digital world

Governments around the world are looking at ways that they can reduce illegal downloads of copyright materials. It is estimated that in most developed countries approximately 75% of all music downloads are illegal, normally using Peer-to-Peer methods. Many consumers, when interviewed, do not see that the practice is harming anyone, and cannot recognise the problem. Of course, those artists producing the music regard it somewhat differently, as do the large music publishers.

The UK is in the process of attempting to force Internet Service Providers (ISPs), under a code of practice, firstly to warn customers that they are breaking the law when illegally downloading, and then to block their internet connection if the breach continues. The ISPs are required to collect details of customers who unlawfully download films, music and TV and then to write to them about the infringement. Any internet user who receives three letters in the space of 12 months faces having their personal details handed over to the owner of the copyrighted material so they can be sued.

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October 14, 2010

Controlling the internet revolution and making it pay?

Over the last decade there has been an internet revolution, where e-democracy, citizen partnerships and social networking blossomed and thrived.  The lack of any centralised controls made it difficult for authorities to censor information on the web.  The global nature of the internet and its open standards, universal and inexpensive access allows the ‘ordinary person’ to participate in the development of content and to record events as they happen. The mind goes back to the death of Michael Jackson first reported by the internet site TMZ and the last year’s demonstrations in Iran where the outside world was able to see and hear about events through Twitter, videos and chat rooms; so putting pressure on the ruling regime to curb the violence and at least attempt to justify their actions. The founder of Wikipedia,  Jimmy Wales claims: “I think we’re going to see dictators and tyrants overthrown thanks to tools like Twitter,” although cautioning that along with that may come unnecessary panic and misinformation when people don’t take the time to evaluate the information being spread so quickly.

As a business model, however, the open access to the web is a disaster. Media companies, for example, struggle to come to terms with the loss of revenue from illegal downloading of content, threatening dire consequences on those that do. However, the reality is that this revolution is ultimately uncontrollable by litigation, so business is examining alternatives to make people pay by creating ‘closed communities’; access to which is based on a payment .

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