by Alex Gimarc                                Mon., January 7, 2008

Interesting Items 1/07 -

Howdy all, a few Interesting Items for your information. Enjoy -

In this issue:

1. RIAA
2. Pakistan
3. Transcanada
4. Chicago
5. Ethics

1. RIAA. The Recording Industry Association of America (RIAA) is fighting a losing battle against new technology distribution of audio recordings by filing and winning lawsuits against people who “share” audio files. The logic is that they retain property rights prohibiting distribution of the music. Last week, they upped the ante in a lawsuit against a gentleman from Arizona, claiming that ripping music from legally purchased CDs and storing that music on your personal computer is a violation of their copyright agreement. This is a staggering claim, one that will destroy the IPod and MP3 industry as it exists today. The law, as it stands today allows users to copy audio and video for their own purposes, and as long as they do not sell or otherwise distribute the copies, the buyer can change formats, record on other media, and otherwise use the copies as they see fit. A lot of us, who st arted out with LPs, copied them onto tape to preserve the LPs over time. The RIAA’s claim, should it be upheld in court, would be a reversal of numerous court findings over the years, and eventually make any format conversion of audio and video illegal. I do not expect it to be upheld in court. Now for a blast against the RIAA: Guys, your problem is not people converting CDs to MP3s on their home computers. Your problem is that you as an industry have so lost the bubble on music, that your customers are no longer buying your dreck at $12 a pop. You have made a lot of money over the years reselling the same product in different formats – for example, the same music has been sold and sold again on 45s, LPs, cassette tapes, 8-track tapes, CDs and today as MP3s. As the ability of individual customers to easily and quickly convert their music into MP3s that can be loaded into any IPod or memory stick continues to proceed, the sales of the same music in new formats is going to tail off. And I never have understood the notion of suing your customers for “sharing.” Sharing is how different people get a taste of new music outside of the normal advertising and sales routine. People who like the music will usually then purchase it. I know that there are a number of people out there – normally the young – that believe that music ought to be free and seamless and unlimited in its distribution. There are a number of new bands out there that agree, and are st arting to offer their music for free as MP3 downloads from the Internet. They plan on making their money via sales of paraphernalia and concerts and are using the music itself as hooks to bring the customers into the show. The RIAA is fighting this new direction tooth and nail, attempting to use the courts and the Congress of the United States of America to halt the march of new technologies, new business models, and new directions in music. In doing so, they muck around in the marketplace to the extent that they will destroy their livelihood, for nothing is going to stop the technology or the ability of new, creative bands (or old, creative bands for that matter), to come up with new business models that will make them money in the world of today. Washington Times, Dec. 30.

2. Pakistan. It looks like something is going on in Pakistan following the assassination of Benezir Bhutto. There are reports of increased Special Forces activities in the fundamentalist tribal provinces of Pakistan next to the Afghanistan border. This region has been one of the known hiding places for Bin Laden and the Taliban after they were flushed from Afghanistan. They have relied on the support of local hard-line tribal chieftains to protect them while they have spread their fundamentalist infestation into the government of Pakistan. Somewhere along the line, they became bold enough to st art standing up hard core Sharia and the torture rooms. The locals are not taking this very well, and appear to be moving the same direction as the Anbar Shieks did in Iraq. There is an opening in Pakistan for the same sort of new surge strategy that is working in Iraq. Special Forces activities in or near Pakistan appear to be an attempt to peel off the Al Qaida and Taliban friendly tribal leaders as they turn against the fundamental nastiness of Sharia as practiced by the bad guys. All in all, this is not going the direction that Al Qaida or the Taliban expected, and I do not believe it will end well for them either. Strata Sphere, Sat.

3. Transcanada. The Palin administration chose Transcanada as the winning application for construction of the new natural gas pipeline from Prudhoe Bay. Transcanada is an experienced pipeline construction and operating company that proposed a $26 billion project that would parallel the existing Alaska Pipeline from Prudhoe Bay southward to its intersection with the Alaska Highway and then southeast through the Yukon, British Columbia and into Alberta. Palin’s decision will need to be ratified by the Alaska legislature. There are a couple problems with Transcanada: First, they have no guarantee from the producers for any natural gas for the pipeline; second, they propose going to the Congress for billions of dollars of guarantees should the producers not provide enough natural gas to fill the pipeline to capacity. This will be a problem. On the other hand, we have Conoco – Phillips, who proposed a non-qualifying bid for the pipeline. They offered to build it themselves; pay for it themselves; and fill it with their own natural gas; all st arting a year after Transcanada proposes to st art.; Like Transcanada, the also want something in return: a stable tax structure in Alaska for the next 40 years. This is something both the Palin administration and the Alaska legislature – to their detriment – have refused to discuss so far. Personally, I am more comfortable with Conoco than I am with Transcanada. Perhaps both companies can get together on this and we end up with something that will proceed apace. ADN, Sat.

4. Chicago. A story of lawyerly anti-military nastiness in Chicago hit the blogs last week as a local lawyer keyed a vehicle of an active duty Marine on his way to Iraq. Attorney Jay R. Grodner, 55 of Chicago was caught in the act by the Marine. The police were called and responded. There was $2,400 damage to the vehicle. The Marine is going to press charges and damages against the lawyer, who is using his knowledge of courtroom procedures to slow-roll the proceedings until the Marine is deployed back to Iraq, where he will be unable to pursue the case. The lawyer is also going to jack up attorney bills to a level that the Marine Sergeant can no longer afford to pursue the case in court. The incident hit the MilBlogs and a call went out for volunteer help from former Marines and Marine attorneys. Sounds like that help is on its way. I expect the perp not to have a fun time either in court or before the Illinois Bar defending himself against ethics charges. Chicago Tribune, Thurs.

5. Ethics. Yet another session of the Alaska legislature, yet another ethics bill filed for consideration. This one will be the third piece of legislation in the last three years. Given the recent prosecutions of sitting legislators for bribery and conspiracy, there is a real fear in the legislature that there will be more indictments. Indeed, one of the hot rumors up here is that there are going to be a bunch more indictments against current and former legislators and state officials filed Real Soon Now. I oppose this sort of running scared, CYA action for a couple reasons. First, we haven’t had sufficient time to see if the previous pieces of ethics legislation have worked. Second, the legislature is well on its way to making it too complex, too wonderful, and too intricate for a citizen to run for office and serve in it if elected. Making things this complex only serves to make criminals out of normal people. It also serves the democrats, who can rely on their supporters among trial lawyers and the unions to do the legwork to keep them out of trouble. This new legislation is a bad idea and ought to be killed on the spot.

More later –

           - AG

"If ye love wealth better than liberty, the tranquility of servitude better than the animating contest of freedom, go home from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains set lightly upon you, and may posterity forget that ye were our countrymen."
- Samuel Adams, speech at the Philadelphia State House, August 1, 1776.