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Discussion Focuses on Future of Peer-to-Peer Distribution in the Marketplace; Calls for Investigation Into "Blacklisting" by Major Record Companies
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WASHINGTON, June 23, 2004 -- StreamCast Networks, Inc. CEO Michael Weiss,
representing the popular Morpheus search and file-sharing software,
testified at hearings addressing the legitimate impact of peer-to-peer file
distribution before the U.S. Senate Committee on Commerce, Science and
Transportation and the Subcommittee on Competition, Foreign Commerce &
Infrastructure, today. Focusing on "The Future of Peer-to-Peer Technology,"
Weiss presented powerful evidence of major record labels "blacklisting"
developers of peer-to-peer software and preventing third parties from doing
business with StreamCast.
"Most immediately, we ask you to direct the Federal Trade Commission and/or
Department of Justice to investigate the apparently collusive,
anti-competitive conduct in restraint of trade by the music industry," Weiss
said in his prepared remarks on Capitol Hill, "Technology marches on, Mr.
Chairman, but apparently some things never change."
During his presentation, which should figure prominently in Congress'
subsequent consideration of the issues identified with P2P technology, Weiss
quoted from an audio recording of a voicemail message from Real Networks,
Inc. Chief Technology Officer, which included the statement that "the labels
have blacklisted you guys. So that is the problem we've got. Basically, what
they're saying is you've got to denounce P2P, and/or resolve the lawsuit is
what you have to do. And so, until they resolve the lawsuit, they're going
to keep you on the blacklist, which means I'm probably not going to get much
latitude to do anything."
"Policy need and should not be based on propaganda," Weiss remarked before
the Committee, urging Congress to consider the realistically potential
benefits to consumers and content providers that are generated by
peer-to-peer applications, as well as how this technology will develop in
the future before initiating policy against it, "We have done much good at
StreamCast and through P2P United, and we will do more, Mr. Chairman, but we
need the help of you and your colleagues. Imposing extraordinary warning
requirements on our industry and technology without making such requirements
equally applicable to web browser software, e-mail programs, instant
messenger programs, chat rooms, and all other significant avenues of on-line
exposure would be unjustified, unfair and - most importantly - ineffective."
Specifically, Weiss, in conjunction with initiatives set forth by P2P
United, called for Congress to:
* Commission an objective outside study that we are confident will confirm
that software like Morpheus cannot centrally filter out content and should
not be fundamentally redesigned to require that.
* Explore whether a collective or compulsory license should be used to turn
60 million Americans who use file-sharing software like Morpheus into
customers instead of alleged criminals.
* Direct the Federal Trade Commission and/or Department of Justice to
investigate the apparently collusive anti-competitive conduct in restraint
of trade by the music industry.
Weiss made additional comments following his testimony, emphasizing that Congress has been misled by lobbyists for the RIAA and MPAA while Morpheus and the other responsible members of P2P United are doing a great deal to educate, protect and empower our users.
"It's not the first time the RIAA, and the MPAA under Mr. Valenti, have been
accused of trying to prevent competitors from doing business. We now have
solid evidence that major record labels are putting out the word to prevent
third parties from doing business with Morpheus. This stance is directly
impeding work toward commercially developing P2P technology to its full
potential and places a stranglehold on engineers and computer scientists who
realize the widespread and valuable impact that P2P can have on both the
marketplace and the academic, scientific and research communities-not to
mention the fact that they're simply not providing consumers with the option
to legitimately purchase DRM protected music and other entertainment files
in a P2P environment."
About StreamCast Networks, Inc.
StreamCast Networks, Inc., creators of the Morpheus software product is a leading global communications technology company that is revolutionizing Internet digital media distribution and communications via software that enables users to communicate directly with one another on an unprecedented scale. Users according to CNET's download.com have downloaded over 124 million copies of Morpheus.
Brian O'Neal
Sr. Director of Communications
StreamCast Networks
boneal _at_ morpheus.com
818-887-8610 ext. 122
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