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Soundcloud Doing a Deal With Record Labels Not to Get Sued

Posted: 11 Jul 2014 12:20 AM PDT

Anyone running a user-generated content site needs to seriously consider the implications of its users uploading infringing material, because it’s pretty much guaranteed to happen on a very large scale indeed.

Once the world’s largest recording labels and movie studios see this happening, things can go bad quickly, unless certain preventative steps are taken. Bringing the business into line with the DMCA is a necessary first step, one which will see the hosting site respond to takedown notices in a timely fashion.

Other sites have gone a step further. As underlined by the MegaSong debacle, YouTube gives some big record labels the right to take down content they don’t like, even if there are no apparent copyright infringement issues. YouTube doesn’t appear to get involved much in the process either, leaving the labels to decide what goes and what does not.

Another company that headed down that route recently was SoundCloud. The audio upload site has been coming on in leaps and bounds over the past five years, in part due to the popular and sometimes illegal content uploaded by its users. Recently, however, it was revealed that not only had the company given Universal Music the ability to take down infringing content, but to do so without oversight.

YouTube allows the labels to do that because it struck a distribution deal with them, but why would Soundcloud follow suit? News today suggests that this particular question answers itself.

According to a Bloomberg, Universal Music, Sony Music Entertainment and Warner Music Group are “closing in” on a deal with Soundcloud which will see the service obtain licenses to host and distribute content from these major labels.

An anonymous source familiar with the negotiations said that the deal will not only see the labels getting a share of future Soundcloud revenue, but Universal, Sony and Warner each picking up a 3% to 5% stake in the business.

On top of that and most importantly, Berlin-based Soundcloud will receive assurances that it won’t get sued, a valuable stability that US-rival Grooveshark is unlikely to enjoy anytime soon.

No one involved in the talks is speaking on the record, but sources suggest that the agreement would value Soundcloud between $500 million and $600 million, not bad for company that was nibbling at the heels of MySpace just five years ago.

The 200 employee company is definitely on the up. One year ago Soundcloud reported having 200 million unique users, but by November 2013 that had increased to 250 million.

A target of one billion users leaves Soundcloud with plenty to do, but with the threat of large-scale litigation off the table, the process will be much, much easier.

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.

Adobe Says Piracy is Down, But Photoshop Still Rules Pirate Bay

Posted: 10 Jul 2014 08:33 AM PDT

There can be little doubt that Adobe products are a crowd pleaser among digital creatives. Designers love them, photographers and videographers do too, and Adobe’s Photoshop, Flash and Acrobat brands are recognized worldwide.

But while millions of people use Adobe’s premium products, not everyone pays for that privilege. Unauthorized Photoshop releases have been appearing on computers worldwide for 25 years and other Adobe products are regularly pirated close to their launch. Over time this has led Adobe to invest substantial sums of money on anti-piracy measures including DRM and even legal action. But there are other ways to deal with the problem.

In May last year and much to the disappoint of Adobe’s millions of pirate ‘customers’, the company announcemend that it would be changing the way it does business. Boxed products, a hangover from the last decade and earlier, would be phased out and replaced with a cloud-based subscription model.

On the one hand, many pirates heard the word “cloud” and associated that with a lack of local machine control, something that can cause issues when trying to run unlicensed software. Adobe, on the other hand, appeared to be looking at product development and the piracy problem from a different angle.

While attempts at hacking its cloud service would present another technical barrier to piracy, with its new offering the tech giant also looked towards making its product more affordable. A few dollars a month rather than $700 in one go was aimed at providing an economic reason for even the most budget-restricted not to pirate. But has the strategy worked?

According to new comments from Fabio Sambugaro, VP of Enterprise Latin America at Adobe, unauthorized use of the company’s products is definitely down since the cloud switch.

“Piracy has fallen,” Sambugaro says. “It’s hard to measure, but we’ve seen many companies seeking partnerships that in the past wouldn’t have done so.”

According to information released to investors last month, Adobe exited quarter two this year with 2,308,000 subscribers of its Creative Cloud service, an increase of 464,000 over the first quarter of 2014. The company attributed 53% of the company’s quarter two revenue to “recurring sources” such as its Creative and Marketing Cloud services.

So have the pirates given up on Adobe? In a word, no.

One only has to scour the indexes of the world’s most popular torrent sites to see that Photoshop, Photoshop Lightroom, Illustrator, Premiere, Indesign, After Effects and Acrobat Pro all take prominent places in the charts of most-popular torrents. No surprise then that on The Pirate Bay, Photoshop CS6 – the last version of Photoshop before the cloud switch – is king of the software downloads by a long way.

Also, and contrary to fears aired by pirates alongside Adobe’s original strategy change announcement, the cloud has not made it impossible to run unauthorized versions of Photoshop CC 2014, for example. Expected functional restrictions aside, torrent sites have plenty of working copies of Creative Cloud releases, but is this necessarily a bad thing?

There are those who believe that some level of piracy is useful as a try-before-you-buy option on a traditionally expensive product such as Photoshop. But what makes this notion even more interesting today is that Adobe’s switch to the cloud – and its much lower price point for entry – may see people investing a few dollars a month for increased functionality and a simple life, instead of one spent jumping through hoops with an inferior and oftentimes awkward product.

And Adobe knows it.

"I do not think people who pirate our software do it because they are bad people, or because they like to steal things. I just think that they decided that they can not afford it," said Adobe's David Wadhwani previously.

"And now, with the switch to subscriptions and with the ability to offer software at a cheaper price, we see that the situation is beginning to change and we're excited."

Richard Atkinson, Corporate Director of Worldwide Anti-Piracy, admitted last year that the company would move away from “enforcement-led anti piracy” to a “business-focused pirate-to-pay conversion program.”

If the company is to be believed, that is now paying off.

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.