Distributed Computing Industry
Weekly Newsletter

August 4, 2003
Volume 1, Issue 4

This week we continued responding to prospective Charter Members with follow-up information and meeting with other trade groups to broaden our perspectives. Ideas are beginning to take shape for practical business solutions to develop with our key constituencies. We intend to further explore these in our first working group. We also accompanied Charter Member Altnet at its legislative briefings and participated in a syndicated television program to outline DCIA's mission.

DCIA Founder and now Altnet senior executive Derek Broes appeared Friday evening on CNBC's Capital Report, highlighting Altnet's impressive and growing success in exclusively distributing licensed content through the peer-to-peer file-sharing network of KaZaA users.

Thanks again to all who helped formulate our position statements on recently proposed legislation. Here are the results:

DCIA Draft Statement Re "Piracy Deterrence and Education Act of 2003" - H.R. 2517

"DCIA supports HR 2517's intentions to educate consumers about protecting privacy, security, and copyright on the Internet. However, this proposed legislation would create a staggering law enforcement task, distort roles of governmental agencies, cause inequities, and fail to address the fundamental issue of ensuring that consumers have legitimate means to access media files on the Internet. DCIA actively encourages the development of positive alternatives to offer consumers viable choices in digital distribution of copyrighted works."

DCIA Draft Statement Re "Author, Consumer, and Computer Owner Protection and Security Act of 2003" - H.R. 2752

"DCIA supports HR 2752's intentions to prevent false information in domain name registrations, and to further address the need to inform consumers regarding downloadable software privacy and security. However, this proposed legislation's attempt to criminalize file-sharing seems arbitrary, unconstitutional, and, in practice, unenforceable. DCIA actively encourages practical business solutions for compensating content rights holders in peer-to-peer file-sharing distribution environments."

DCIA Draft Statement Re "Protecting Children from Peer-to-Peer Pornography Act of 2003" H.R. 2885

"DCIA supports HR 2885's intentions to provide adequate safeguards to juveniles from accessing inappropriate content on the Internet. However, this proposed legislation attacks peer-to-peer distribution technology rather than an unfortunate abuse of it, and fails to offer reasonable remedies. DCIA actively encourages the adoption of content filtering technology that will enable parents to protect their children from undesirable material."

Please let me know if you have additional input (marty@dcia.info), and we will let you know as soon as the 7/17 subcommittee hearing webcast is available. Also attached, FYI, is the 7/31 PSI Press Release and RIAA Letter from Senator Norm Coleman (R- MN).

DCIA is looking at all facets of research, including advanced game theory, to understand the future of the industry. How will online consumers respond to potential changes? What are the degrees of change needed by our three Groups (Platform, Operations, and Content) to generate consumer behavior that will satisfy the industry's economic needs? The "Holy Grail" would be creation of a simulation process to enable the input of different industry variables with consumer response as its outcome. In the meantime, a course is being considered that will provide insight into consumer preferences given various industry actions in the near term. DCIA's research group is now developing its specific recommendation to present to DCIA Members for accomplishing this.

Our research group is also in the process of assessing available research as the source for industry metrics. In press articles cited in DCIA newsletters, there are numerous statistics presented in support of claims made in these reports. These statistics come from different sources, and do not necessarily support each other. An important part of DCIA's mission is to speak with a voice of integrity for the industry, and we will find that voice by credibly representing industry metrics and consumer information.

DCIA's weekly newsletter, DCInfo, is now available on our homepage at www.dcia.info, which may provide the easiest way for you to link to this week's press reports in their entirety.

"Napster's Back -- And This Time Its File Sharing is Legal,"  San Francisco Chronicle, July 28, 2003

"Napster, the RIAA, and File-Sharing,"  Slyck.com, July 28, 2003

"Subpoenas Sent to File-Sharers Prompt Anger and Remorse," New York Times, July 28, 2003

"More Online Music Stores Expected,"  New York Times, Juy 28, 2003

"RIAA Taps Washington Insider as Chairman,"  Los Angeles Times, July 29, 2003

"Secret Networks Protect Music Swappers,"  CNN, July 29, 2003

"FTC Warns About File Trading & Spyware,"  CNET News, July 30, 2003

"Students Face Swapping Rules,"  USA Today, July 30, 2003

"Music Downloading, File-Sharing, and Copyright,"  MediaPost, July 31, 2003

"Senator Asks RIAA for Information on Music File-Swapper Subpoenas,"  Wired, July 31, 2003

"SBC Sues RIAA Over Subpoenas for File-Sharers' Identities, Cites Privacy,"  Yahoo, July 31, 2003

"Music Downloaders Shrug, So What? Most Don't Give a Hoot for Copyright Concerns,"  Media Life, August 1, 2003

"New Tactic Planned in Anti-Piracy Campaign,"  Los Angeles Times, August 1, 2003

"Hollywood Speaks to America's Youth: From-the-Wallet Talk on Why Piracy is Wrong,"  Media Life, August 1, 2003

"Anti-Piracy Lawmakers To Push One Bill On Hill,"  Billboard, August 2, 2003

"Pirates of The Internet,"  Newsweek, August 4, 2003

"Downloader Dragnet,"  Time Magazine, August 4, 2003

"Coleman concerned recording industry's shotgun approach to issuing rubber-stamped subpoenas inadvertently targets unwary consumers," Press Release, July 31, 2003

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