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Brett McGuire: Turning Pirates Into Honest Earners
Brett McGuire | November 24, 2009

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Last week, the UK government announced a new law that, if passed, would force Internet service providers to provide information about suspected copyright infringers and cut off their Internet connections without trial.

The UK is one of a number of countries adopting a hard-line approach to online piracy. Over 30 countries are currently negotiating the Anti-Counterfeiting Trade Agreement, which contains provisions similar to those found in the UK’s bill. It is only a matter of time before developing countries such as Indonesia are pressured into adopting similar laws.

Will these new tough laws make any difference? Probably not. Evidence shows that taking a hard-line approach to piracy does not work.

The Recording Industry Association of America’s six-year campaign to stop online sharing of music earned the organization a reputation for being heavy-handed. It drew public scorn for targeting university students and single mothers.

The association ended its campaign in December 2008. Despite having sued more than 30,000 people, the campaign did little to stop piracy.

The explosion of new technology and the proliferation of content-sharing platforms such as YouTube and peer-to-peer networks are creating new problems for copyright owners.

Shepard Fairey’s famous “Hope” poster became symbolic of the 2008 Obama campaign, and then the subject of a heated copyright debate. Fairey created the poster by taking a digital copy of an Associated Press photo and changing the lighting and coloring. AP claimed that Fairey infringed its copyright by using the photo without its permission. Fairey argued that he only used the photograph as a visual reference.

These are complex legal issues. Copyright is difficult to understand at the best of times. Creating tough new laws will do little if no one understands what they can and cannot do to start with.

Facebook and YouTube are making copyright pirates out of millions of Internet users. The solution to this problem may originate with YouTube itself.

The video-sharing site has long been criticized for failing to take adequate measures to prevent copyright-protected videos from being posted. Despite posting copyright warnings, the site allows many unauthorized clips from TV and cinema to be posted.

YouTube does not view videos before they are posted. It is left to copyright holders to issue a take-down notice if they find their videos on YouTube.

In 2008, YouTube turned the copyright world on its head by launching its partner program, which provides copyright owners with a means of earning revenue from content illegally posted on YouTube.

Instead of removing the content, copyright owners can choose to earn revenue from ads shown when the video is played. The program has been an enormous success. Last year, YouTube revealed that 90 percent of take-down notices resulted in the copyright owner choosing the revenue option.

This year, YouTube expanded the program so that normal moms and dads can reap the financial rewards when that three-minute video of their break-dancing toddler goes viral.

YouTube is quietly solving its copyright piracy problems by providing a solution, namely a revenue model. As the program grows and proves successful, it could serve as a useful model for turning a problem like piracy on its head.

Brett McGuire is a consultant for Rouse. His Web site is HAKItree.com/brettmcguire.