BY DANIEL MCSWAIN
For a sobering look at how the proposed PERFORM Act would hamper Internet radio, a look at a new device shows the wrong-headedness of a bill that is designed to protect copyright but instead hurts webcasters and their audiences.

Whereas earlier, software based "stream rippers" work only with online radio, the new Popcatcher device also captures the signal of over-the-air AM and FM broadcasts, and converts them to identified MP3 song files. The device does the same for Internet radio signals, as well.

The PERFORM Act would essentially force webcasters to shroud their MP3 streams in a DRM-ridden format to comply with proposed "protection" measures, would disable the Net radio recording capabilities for devices like this, as well as other Net radio recording methods and devices.

Perhaps the more frustrating catch is that the bill wouldn't enforce similar restrictions on recording over-the-air, terrestrial broadcasts on devices like the Popcatcher, instead focusing its impact to limiting digital transmissions.

Software and hardware that "rips" audio streams would be crippled by the PERFORM legislation, which would essentially disable such tools from capturing webcasted audio for re-use by the listener due to the rights-management protection the bill would require.

In addition to limiting the user's experience, the bill would also force numerous (if not most) webcasters to go through the onerous and expensive task of re-formatting their product to comply with new laws. The financial requirements alone would surely drive multiple webcasters out of business, and create additional hoops for others to jump through that would put Net radio at a disadvantage against other broadcast technolgies which the PERFORM Act would have little if any effect on.

Read previous coverage of the PERFORM Act in RAIN here and here. You can also find more information at the EFF and Public Knowledge.

From Kagan Insights: "It has been a painful decade for the pre-recorded music industry, which has been sapped by free trading of music in the digital age. While not yet striking the right chord, the music companies increasingly take a realistic approach to making what they can from digital media, giving up on the industry's prior emphasis on containment litigation.

"Some of the current news almost seems encouraging. Last week, the London-based International Federation of the Phonographic Industry reported industry revenue from digital music sales soared 80% from $1.1 bil. worldwide in 2005 to $2 bil. last year...

"Another way to look at the evolution is that it's a retro trend as the new wave of digital downloads tilts back to singles—popular in the 1950s and 1960s as vinyl records. Albums gained popularity in the 1970s. And despite expectations the Internet revolution will spawn riches in niches, music remains a hit-driven business.

"As the accompanying table indicates, the pre-recorded music industry has some positive trends, including taking a higher percentage of consumer spend in digital sales."



Read the entire article at Kagan Insights.