Movie and Music Copyright Cops Themselves Infringe Intellectual Property

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By Washingtons Blog - February 13th, 2012, 1:30AM

Movie and Music Giants Are Hypocrites

The giant movie and music corporations – and their water-bearing politicians – pushing draconian copyright laws are hypocrites.

According to TorrentFreak, members of the RIAA, Department of Homeland Security, Sony, Universal and Fox may have illegally downloaded files from BitTorrent.

Lamar Smith – the Congressman sponsoring SOPA – used a pirated photograph on his official campaign website.

TechCrunch reports today:

VEVO, the music portal owned by some of the biggest record labels in the US, had a pirated NFL playoff game playing on screens throughout its ‘PowerStation’ venue.

The incident was immensely hypocritical, given that VEVO is owned in part by Universal Music Group and Sony Music Entertainment (with EMI licensing its content to the service) — the same music labels that have made a habit of attacking consumers over alleged acts of piracy.

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Imagine what the music industry would say were it on the other side of this. Is there any doubt it would dismiss these explanations and, lawsuits in hand, cry foul over such an overt act of piracy?

Furthermore, this seems no different than an accused pirate explaining that they left their Wifi open, only to have it used by someone else to download content illegally. Which happens to be a defense the RIAA has previously fought vigilantly against, when it sought to make owners of ISP accounts liable for any infringing activity, even if the owner had no knowledge of it. Hypocrisy, indeed.

The movie and music studios also allegedly encouraged people to use file-sharing software for pirating copyrighted material, made hundreds of millions of dollars in the process and are now suing people using the software they pushed.

And the very foundation of the Hollywood movie industry was intellectual property infringement. Specifically, inventor Thomas Edison owned the patents for movie cameras and for several types of movie film. Edison formed the Motion Picture Patents Company (known as the “Edison Trust”) with Kodak and others, and this trust controlled every aspect of movie-making: from cameras to film to distribution.

As Wired notes:

Edison assembled representatives of the nation’s biggest movie companies—Biograph, Vitagraph, American Mutoscope, and seven others—and invited them to sign a monopolistic peace treaty. Since 1891, when the Wizard of Menlo Park filed his first patent on a motion picture camera/film system, his lawyers had launched 23 aggressive infringement suits against other production outfits.

Sometimes Edison won. Sometimes he lost. But the costs of these battles overwhelmed his rivals, and that was the intent.

“The expense of these suits would have financially ruined any inventor who did not have the large resources of Edison,” one of his lawyers boasted, “and it could hardly be expected that he would be able to prosecute simultaneously every infringement as it arose.”

Thus his victims sold their patents, making the Edison movie empire ever larger.

But the old man wanted it all, so he assembled his rivals and proposed that they join his Motion Picture Patents Company. It would function as a holding operation for the participants’ collective patents — sixteen all told, covering projectors, cameras, and film stock. MPPC would issue licenses and collect royalties from movie producers, distributors, and exhibitors.

To top it all off, MPPC convinced the Eastman Kodak company to refuse to sell raw film stock to anyone but Patent Company licensees, a move designed to shut French and German footage out of the country.

“The negotiations were finalized in December,” Gabler notes, and by early January, “the company made its announcement that the old laissez faire of the movie business was being abruptly terminated.”

The Edison trust was based on the East Coast. In order to escape the onerous restrictions of the trust, independent filmmakers fled to Hollywood. Because travel was so much slower back then, Hollywood filmmakers would have plenty of time to close up shop if they got wind that the trust’s enforcers were coming to visit:

If Edison ever sent agents to California, word would usually reach Los Angeles before the agents did, and the filmmakers could escape to nearby Mexico.

In addition, the federal courts in California were also less eager to enforce patent rights.

As Armando Franco writes:

•These actions led several independents to flee to the West Coast. California was remote enough from Edison’s reach that filmmakersthere could pirate his inventions without fear of the law.

•But because patents grant the patent holder a truly “limited” monopoly (just seventeen years at that time), by the time enough federal marshals appeared, the patents had expired. A new industry had been born,in part from the piracy of Edison’s creative property.

And Bullies …

It used to be a widespread practice for music companies to unlawfully bribe radio stations using “payola” to play their songs. Indeed, the practice is still ongoing (at least as of a couple of years ago). See this, this, this and this. Indeed, many have alleged that the music industry is still riddled with organized crime.

It is also well-known in the entertainment industry that movie studios use fraudulent accounting – widely known as “Hollywood Accounting” – to cheat writers, actors and others who are not on the favored list from getting paid. There are many famous examples where writers and actors have been paid little or nothing on films which made billions of dollars. And see this.

And TorrentFreak notes:

The Canberra Wikileaks cables revealed the US Embassy sanctioned a conspiracy by Hollywood studios to target Australian communications company iiNet through the local court-system, with the aim of establishing a binding common-law precedent which would make ISPs responsible for the unauthorised file-sharing of their customers.

Both the location, Australia, and the target, iiNet, were carefully selected. A precedent set in Australia would be influential in countries with comparable legal systems such as Canada, India, New Zealand and Great Britain. Australian telecommunications giant Telstra was judged too large for the purposes of the attack. Owing to its smaller size and more limited resources, iiNet was gauged the perfect candidate.

The involvement of major American studios in the offensive was suppressed. “The case was filed by … the Motion Picture Association of America (MPAA) and its international affiliate, the Motion Picture Association (MPA), but does not want that fact to be broadcasted,” the US Embassy, Canberra wrote. “We will monitor this case … to see whether or not the ‘AFACT vs. the local ISP’ featured attraction spawns a ‘giant American bullies vs. little Aussie battlers’ sequel.”

Whether or not these two industries are actually run by criminal cartels, it is beyond dispute that they are acting like bullies.

Matthew’s Day Off

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By Barry Ritholtz - February 1st, 2012, 6:00AM

Missus Big Picture, who teaches fashion illustration & design, tells me that her students are watching the 1986 flick Ferris Buellers Day Off in order to understand the Superbowl commercial for Honda.

If you are familiar with the movie (DVD here), the commercial parallels the film in lots of amusing ways.

Here is the extended version CR-V Game Day Commercial – “Matthew’s Day Off” :

How Often Does the Film Industry Cry Wolf Over Piracy?

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By Barry Ritholtz - January 27th, 2012, 6:39PM

Via TechDirt, we learn the frequency with which Hollywood insists every new technology will destroy the movie business:

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click for full infographic

giant infographic after the jump

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Fat Cats and Starving Dogs; Happy Foxes and Sad Sacks

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By Barry Ritholtz - January 22nd, 2012, 8:35AM

This weekend, I saw Margin Call on DVD. Jeremy Irons plays a CEO of a small Goldman Sachs like company.

A young analyst at the firm discovers that their highly-leveraged, massive mortgage bets are based on a VAR formula that’s flawed. It failed to consider volatility ranges beyond historical distributions. With the market swinging, his calculations show a 25% move in the underlying holdings will wipe the company out and then some.

Irons ends up giving a speech to Kevin Spacey towards the end of the film — no spoilers here — its just a fascinating digression, that goes something like this:

“Its just money; its made up. Pieces of paper with pictures on it so we don’t have to kill each other just to get something to eat. It’s not wrong. And it’s certainly no different today than its ever been. 1637, 1797, 1819, 37, 57, 84, 1901, 07, 29, 1937, 1974, 1987 — Jesus, didn’t that fuck up me up good — 92, 97, 2000 and whatever we want to call this [2008].

It’s all just the same thing over and over; we can’t help ourselves. And you and I can’t control it, or stop it, or even slow it. Or even ever-so-slightly alter it. We just react. And we make a lot money if we get it right. And we get left by the side of the side of the road if we get it wrong.

And there have always been and there always will be the same percentage of winners and losers. Happy foxes and sad sacks. Fat cats and starving dogs in this world. Yeah, there may be more of us today than there’s ever been. But the percentages-they stay exactly the same.”

Its a great film (IMDB) — if you have not seen it yet, move it to the top of your Netflix queue . .  .

The Digital Living Room

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By Barry Ritholtz - January 9th, 2012, 2:30PM

Interesting look at the changes coming to your living room, courtesy of, well everyone competing for your entertainment dollar:

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Hat tip thingsigrab

full graphic after the jump

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Where Droids Feel at Home

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By Barry Ritholtz - December 12th, 2011, 10:00AM

Source: An Earth Where the Droids Feel at Home
NYT, December 8, 2011

Clint Eastwood: 35 Years, 35 Films

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By Barry Ritholtz - December 7th, 2011, 6:57AM

Clint Eastwood: 35 Films 35 Years at Warner Bros

I am a huge Clint Eastwood fan — I love the Spaghetti Westerns that, unfortunately, are not part of this package.

And these are remastered or BluRay — so I would not get these for my favorite Cinephile.

Still, at $77 bucks, this is a whole lotta Clint for not a lot of money. I know quite a few people this will make a good Shopmas present for.

Full list of 35 films after the jump.

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Firefly: Complete Series on Blu-ray $19

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By Barry Ritholtz - November 13th, 2011, 7:43AM

I discovered Joss Whedon’s sci-fi series Firefly backwards. I fell in love with the movie Serenity, which was the conclusion to the series. I am not the only fan, as the 3,431 five star customer reviews on Amazon attest to.

Watching the flick sent me hunting for the complete Firefly series, which came out last year on DVD. It was a must own for me — 11 episodes, plus 3 that never aired. I caught up with the entire series at 30,000 feet over the course of 3 months of work travel.

Now, Amazon is running their one day special on the Blu-Ray version for only $19 — about $5 less than they ran that special back in May. Add the Blu Ray Serenity ($11), and you have a killer $30 Blu Ray gift for the sci fi fan on your list.

If you are unfamiliar with Whedon’s oeuvre, you probably know his TV works (‘Buffy the Vampire Slayer and Angel).

If you are a sci-fi fan and have never seen either Firefly or Serenity, I strongly suggest you check ‘em out. (Netflix subscribers can stream both here).

Stanley Kubrick Essential Collection

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By Barry Ritholtz - November 10th, 2011, 6:39AM

So its already early November, and that means I am looking for holiday gifts for friends and family.

What caught my eye today was this one day Amazon special: Stanley Kubrick: The Essential Collection (9 Groundbreaking Movies. 10 Discs)

The DVDs are a bargain at $31.49, but this sort of collection really demands BluRay — which you will note that even at 50% off list, $63 is exactly double the price of the DVD.

Still, how could you ever watch 2001 or Spartacus in anything but the best video quality you could grab?

Here are the 9 movies:

SPARTACUS (1960) The genre-defining epic tale of a bold gladiator (Kirk Douglas) who leads a triumphant Roman slave revolt.

LOLITA (1962) Academic Humbert Humbert (James Mason) is obsessed with a blithe teen (Sue Lyon) in a dark comedy from Vladimir Nabokov’s novel.

DR. STRANGELOVE (1964) “Accidental” nuclear apocalypse, anyone? Peter Sellers heads the cast of one of the most blazingly hilarious movies of all time.

2001: A SPACE ODYSSEY (1968) “The most awesome, beautiful and mentally stimulating science-fiction film of all time” (Danny Peary, Guide for the Film Fanatic).

A CLOCKWORK ORANGE: 40th Anniversary Edition (2-Discs) (1971) Future world neo-punk Malcolm McDowell becomes the guinea pig for a government cure of his tendency toward “the old ultraviolence.”

BARRY LYNDON (1975) The visually spellbinding tale of an 18th-century Irish rogue’s (Ryan O’Neal) climb to wealth and privilege.

THE SHINING (1980) In a macabre masterpiece adapted from Stephen King’s novel, Jack Nicholson falls prey to forces haunting a snowbound mountain resort.

FULL METAL JACKET (1987) Marine recruits endure basic training under a leather-lunged D.I., then plunge into the hell of Vietnam.

EYES WIDE SHUT (1999) A wife’s admission of unfulfilled longing plunges a Manhattan doctor into a bizarre erotic odyssey. Tom Cruise and Nicole Kidman star.

Film Facts & Figures

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By Barry Ritholtz - November 8th, 2011, 8:00AM

From the movie site The Droid You Are Looking For, we get this nice infographic on the film business:

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click for larger graphic

Hat tip The Droid You Are Looking For

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