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I actually tried to post this a couple of months back and had no luck … not sure why. Anyway, I generally agree with your thoughts on this issue … my small company has \”lived\” this experience!

****************************************************************

Hi Mark,

Although we have never met, I have followed your career rather closely for the past ten years. Yep, Imageline (my company) was directly involved in the original \”.com\” boom of the late 90\’s as well … only from a totally different perspective than most of you guys with more brains (and more money).

My companies (Imageline and its predecessor company, MGI) pioneered the development of vector-based electronic graphic arts content (clip art illustrations, animations, templates) for the PC platform in the early and mid 80\’s. We employed some of the finest digtial artists and designers in the world. And our quality was recognized by virtually everyone. We signed licensing agreements with all of the major players of that time – Adobe, IBM, Apple/Claris, Wordperfect, Lotus, Borland, Aldus, Xerox/Ventura, Broderbund, Computer Associates, Parsons Technology, Softkey, Microsoft and others.

Our best licensing year was 1997.

Things changed in the second half of 1997 (almost 10 years ago today!). New Internet companies in the U.S., such as Xoom.com, InfoSpace, Go2Net, ZDNet, AOL, SimpleNet, Jumbo!, Concentric, Zedcor/ArtToday, Prodigy, Lycos, CompuServe and others (and an equal number of start-up Internet companies internationally) began to give away software/content in exchange for \”eyeballs\”. Advertising would pay the freight. The new \”Net visionaries\” (as they liked to call themselves) discovered that \”images\” represented one of the categories of \”electronic content\” that everyone could use. Pictures were the world\’s common denominator (no translation necessary), and they required little to NO customer support resources.

So what happened? Before you could blink an eye, Xoom.com and others started to proclaim that they owned \”the largest library of proprietary clip art images in the world\”. Much like YouTube in many ways. Trouble is, Mark, almost all of the digital art was pirated (sexy word for \”stolen\”).

We battled NBCi (who acquired Xoom.com in late 1999) and others in court for over five years! The federal judges didn\’t have a clue what had hit them … especially here in Virginia! They made MAJOR mistakes. Many of them couldn\’t even spell DCMA, let alone interpret it. We took the case to the U.S. Supreme Court in 2003, but were rejected.

We ran out of money and were forced to settle … what a shame!

Your Google/YouTube buddies weren\’t the first to come up with this novel idea. Steal other people\’s content, make your fortune, and then get out of the way before the antiquated laws, and those who try to enforce them (both civil and criminal), can catch you. I wrote an interesting article (more like a White Paper, actually) while still with the SPA/SIIA back in mid-2000 titled the \”The Pirates Web\”. It forecast what we have today on the Internet. Total chaos, in my opinion.

So what\’s my point? I have really enjoyed your perspective on the situation with Google, Viacom, YouTube and others. I think you are one of the few who has it nailed. Wait a second, let me take that back. You are one of the few who has it nailed AND also has the guts to express your opinion publicly. I am VERY disappointed with today\’s corps of so-called independent journalists. Same thing happened in the late 90\’s. So many of their parent companies were trying to cash in on the Internet 1.0 gold rush that controversial opinions almost completely disappeared. I know. I was following it very closely at the time. Still am.

Here\’s the danger in my view. The backbone and origin of most of the new original ideas, works of art, and entrepreneurial spirit (and employment, as well) of this country lies with the innovation of creative people who are willing to stand up for what they believe in, take a chance, work hard, and be fairly compensated if their instincts (or talents) are right.

Digital piracy removes the final part of this delicately balanced equation. And you can\’t get the toothpaste back in the tube once its pirated over the Internet.

Imageline is preparing yet another battle in our ten-year crusade to curtail the piracy of electronic graphic arts content over the Internet. Our industry (illustrators, artists, designers, animators, cartoonists) is poorly organized (unlike the music, photography, and movie industries) so we (Imageline) have had to form our own \”lobby\”.

We need some \”mavericks\” to help. Are you interested? You can reach me at gpaine3@yahoo.com.

Keep up the good work!

George Riddick

1. Content owners are split on whether or not DL is good for business. What the music industry is seeing, especially in Hip Hop, popularity is becoming more importent than actually selling records (provided they have a major deal).

2. There is no recourse. Once sensitive info is out, its out. They bank on the fact, individuales will feel helpless against the super power and give up. Reality, it\’s like telling your mom shes fat. You may say sorry but the fact is you still said it, which means you were thinking it.

3. Where are the technology companies? CD\’s have been around how long? We have figured ever possible way to store media, with every kind of laser, WHEN ARE WE GOING TO FIGURE OUT HOW TO MAKE A CD ON RIPABLE? If the music industry was so concerned about stolen music, don\’t you think this would be a course of action?

It\’s cancer! You can fight it but it will ultimately win, UNLESS the Government decides to enforce the law.

My understanding was that historically copyrights and patents were enacted to encourage the distribution of the copyrighted material and the diffusion of ideas.
Since in the past there were very limited distribution channels and the only way to encourage the creation of material was to ensure the creator was paid.

Currently, the creators of content be it books, movies, software, music, etc get very small piece of the pie. From my very limited research \”Royalties\” account for less than 25% for these works while most are fewer than 10%.

This tiny amount is justified via \”The Cost of Business\” argument, which I agree with these businesses are very expensive and have lots of pockets to fill.

Was not the original intent of the law to protect the Creator of the Work? Not the Publisher or the Distributor.