Note (added December 8, 2008): These slides were Note (added December 8, 2008): These slides were prepared in September, 2008, based on information prepared in September, 2008, based on information provided to EDUCAUSE by Warner Music Group. provided to EDUCAUSE by Warner Music Group. EDUCAUSE is presenting this material to the EDUCAUSE is presenting this material to the Common Solutions Group as a service to interested Common Solutions Group as a service to interested campuses. No endorsement from EDUCAUSE campuses. No endorsement from EDUCAUSE should be inferred, and all questions should be should be inferred, and all questions should be addressed to Warner Music Group.addressed to Warner Music Group.

Warner Music GroupWarner Music Group

Proposed Experiment/Pilot in Proposed Experiment/Pilot in “Voluntary Blanket Licensing” “Voluntary Blanket Licensing”

for Online Access to Musicfor Online Access to Music

Mark LukerMark LukerEDUCAUSEEDUCAUSE

GoalGoal

Let students access and use music any Let students access and use music any way they want toway they want to

Generate fair returns to content ownersGenerate fair returns to content owners

Avoid DMCA notices, lawsuits, etcAvoid DMCA notices, lawsuits, etc

Avoid technological requirements that Avoid technological requirements that might impact our networks or hinder might impact our networks or hinder innovationinnovation

How?How?

Students access and use music any way they Students access and use music any way they want to through the campus netwant to through the campus net– P2P, Limewire, iTunes, etc. OKP2P, Limewire, iTunes, etc. OK– No DRM OKNo DRM OK– iPods OKiPods OK– Hardware neutralHardware neutral

Institutions make a reasonable effort to estimate Institutions make a reasonable effort to estimate the number of downloads per songthe number of downloads per song– Might monitor traffic through a cacheMight monitor traffic through a cache– Statistical sampling OKStatistical sampling OK– Determined by the campusDetermined by the campus– Experimentation encouragedExperimentation encouraged

How?How?

Institutions collect/fund/amass a pot of money Institutions collect/fund/amass a pot of money (e.g. per student per month)(e.g. per student per month)– As determined by the campusAs determined by the campus– All students or noneAll students or none

A non-profit organization distributes the money A non-profit organization distributes the money proportionately to content ownersproportionately to content owners– All major labels and an indie association are membersAll major labels and an indie association are members– Covers all rights holders for the musicCovers all rights holders for the music– ““Prices” TBDPrices” TBD

In return:In return:

Content owners refrain from all Content owners refrain from all DMCA notices and lawsuitsDMCA notices and lawsuits– Not really licensingNot really licensing– ““Covenant not to sue”Covenant not to sue”

Possible complicationPossible complication– Simplest if accepted by all HE and ISPsSimplest if accepted by all HE and ISPs– If not must avoid massive leakage from those that If not must avoid massive leakage from those that

are covered to others that are notare covered to others that are not

WMG QuestionWMG Question

Are any institutions interested inAre any institutions interested in– Learning more?Learning more?– Participating in a pilot?Participating in a pilot?

Is CSG interested in herding a pilot Is CSG interested in herding a pilot project?project?

Comments from WMGComments from WMGWe are open-minded as regards our non-commercial voluntary blanket license solution, We are open-minded as regards our non-commercial voluntary blanket license solution, for which we're assembling all rights (sound recording and publishing) from all four big for which we're assembling all rights (sound recording and publishing) from all four big music companies and the independents:music companies and the independents:

– We suggest our approach be self-administered in an academic setting.We suggest our approach be self-administered in an academic setting.

– Our fundamentals are but two, a pool of money and data for a fair split amongst rights holders.Our fundamentals are but two, a pool of money and data for a fair split amongst rights holders.

– We are following history, not an eight-ball or ill-conceived scheme. We offer the approach that We are following history, not an eight-ball or ill-conceived scheme. We offer the approach that followed the arrival of electricity -- performance, radio, television, cable, satellite and webcast followed the arrival of electricity -- performance, radio, television, cable, satellite and webcast are all monetized through blanket licenses.are all monetized through blanket licenses.

– Our approach leads other media and makes music the canary in the mine -- music sets a Our approach leads other media and makes music the canary in the mine -- music sets a precedent that video, text, graphics and others can and will follow.precedent that video, text, graphics and others can and will follow.

– We've started a non-profit company to be clear we intend to operate with good intentions and We've started a non-profit company to be clear we intend to operate with good intentions and not profit as a motive.not profit as a motive.

– Our approach is supported by the EFF, Public Knowledge and many organizations dedicated Our approach is supported by the EFF, Public Knowledge and many organizations dedicated to network freedom.to network freedom.

Comments from WMGComments from WMG

We believe our approach is loaded with upside for the academic community:We believe our approach is loaded with upside for the academic community:

– We believe growth and learning will result from this self-administration approach.We believe growth and learning will result from this self-administration approach.

– Caching can lead to bandwidth savings that may offset or obviate the fees.Caching can lead to bandwidth savings that may offset or obviate the fees.

– Our approach guarantees unfettered network access and encourages network Our approach guarantees unfettered network access and encourages network management optimization.management optimization.

– It is a clear truce in the war between content and network. It meets the interests It is a clear truce in the war between content and network. It meets the interests and goals of all concerned, a win-win.and goals of all concerned, a win-win.

Contact us as you like with any questions, concerns or comments:Contact us as you like with any questions, concerns or comments:

– Jim Griffin, griffin@onehouse.com, 212-275-2270.Jim Griffin, griffin@onehouse.com, 212-275-2270.