Copyright news first, and there are quite a few to go through. Right after my last WNR, news came that torrent tracker UK-T was shut down, and some kind of police action was involved, but as no anti-piracy agency had claimed responsibility at that time, nobody was really sure what went down. Still not really sure what happened, but from leaked reports, it suggest that the police had raided the homes of several of the site’s admins. The database was wiped before the police could get their hands on it, and so the subscribers are safe. One tracker down, only 362,621 to go.

Demonoid: Tracker back online. Database corruption, or something more sinister?

But while one torrent tracker was down, another came back up. Demonoid has been down for ages now, supposedly due to a database problem, but the tracker is at least up again, if not the main website. I’ve noticed that several torrent sites have experienced similar database problems recently, so it could be just a coincidence, or perhaps something more sinister? If it was just an accident, then these accidents have actually done more to stop torrent sites than all the legal actions. Take The Pirate Bay for example. The latest attempt to shut the site down, or at least prevent access to it in Norway, has failed. The entertainment lobby had asked the Norwegian court to get Norway’s largest ISP Telenor to shut down access to the torrent site, but the court said “Nei” as they didn’t think an ISP should be the one deciding which websites its customers get access to, and which it should block. And the implication of this ruling is that ISPs are not really responsible for what their customers get up to, since if they were, then the court would have told them to shut off access. To me, this is common sense,  and Telenor’s spokesman’s analogy of not being able to sue a ladder manufacturer because someone used the ladder to commit a burglary again seems to make sense to me. But common sense is in short supply these days when it comes to the copyright debate.

The failed attempt to shut down The Pirate Bay again deals another blow to the MPAA and their friends, but do they really want the torrent site to be shut down? According to a new study, they should be careful of what they wish for, because during the few days that The Pirate Bay was down, the number of torrent trackers and websites dramatically increased, and downloading continued. The way modern torrent clients work, even without a working tracker, downloads can continued thanks to a technology called DHT (Distributed Hashed Table), or so called trackerless downloads. The download speed is sometimes affected, but not always. And with TPB down, many sees it as an opportunity to become the new TPB, and so naturally, the number of torrent and trackers will surge during this period. It just shows how hard it is to actually try and stop file sharing, and I think it may actually be impossible. All the resources that have been spent on trying to stop file sharing seems like a big waste to me. And even more so when you consider the stats that show that people who download illegal songs actually spend more on music than those who don’t. This again seems like common sense to me, because people who download music (legally, or illegally) are the ones that love music, and many are using free downloads as a way to search for new songs and artists. This “buy before you try” argument has been made for other content as well, like games, although the percentage that converts from try to buy is rather low, nevertheless, there is a percentage. Music especially I think is something that you do need to try before you buy, that’s why we have radio stations that broadcast songs, for free. The music industry, and others, should be exploiting this phenomenon to their advantage instead of trying to shut it down. Spotify, the free online music service, seems to signal a possible future direction, basically taking the radio model online.

The MPAA's propaganda ministry is busy these days

There’s still more copyright news, we’re barely half way through. The MPAA has been busy lobbying the FCC for various things. And as a concerted campaign, they had the US 60 Minutes broadcast a copyright propaganda film that tried to link file sharing with organized crime. There are links between counterfeit goods and physical media piracy with organized crime, but online file sharing that’s mostly free? The downloading communism poster immediately springs to mind (see right). More propaganda as the MPAA says the Internet will die if piracy is not stopped. This is the same MPAA that has been trying to kill the Internet for ages now, that its members and supporters have publicly stated their wish that the Internet had never existed, so why are they so worried about its health now? And the MPAA is not just happy pushing their agenda on the US, they’re going global as well. You can just see their dirty fingerprints over the proposed copyright treaty that will be discussed in South Korea this month. The worst part is that the treaty is being kept super top secret, even though it affects everyone. Of course, the Internet being the Internet, part of the discussions were leaked and it was indeed what we fear most. Three-strikes, global DMCA, ISP policing … are just some of the MPAA’s favourite things, and all will be tabled at the secret discussions later this month. Sigh.

Sarkozy's defence of major US corporations' interests has even led to a fight with the EU

Three-strikes and ISP policing, very popular at the moment, but the EU has decided that something needs to be done to protect consumer rights, even if what they did was not nearly enough. But it’s a start. The EU has decided that Internet access is a basic right, and as such, cutting people’s connections off will require more than just an email from the MPAA. The EU has ruled that a fair process must be in place before bannings can occur, which is less than the full criminal trial that consumer and Internet advocates had first wanted. This all came after France wanted to introduce something that legalized their three-strikes plan (the original one that didn’t require the judicial system, which their own constitutional council found to be, well, unconstitutional), and that angered pretty much everyone at the EU, and the battle has been fought ever since, leading to this latest compromise. Just what has happened to France, a country that I’ve always considered to be quite liberal and would usually be at the front lines fighting *against* the three-strikes nonsense, and not on the side of mega US corporations. Freedom and liberty is also another thing I associate with France, but they just seem to be one the wrong side of that as well because time and time again, it has been shown that copyright laws have been abused to stifle free speech and the critics of corporations. The Electronic Frontier Foundation even has a Hall of Shame for the companies and organizations that have abused copyright laws for their own (non copyright related) benefits. It just shows that when laws are so biased towards one side, they are prime candidates for abuse. And for me it’s hard to digest the fact that a country like France is in there arguing to make these laws even more one sided, and even more open to abuse. But with a guy like Sarkozy at the helm, now using the nations divisions for his political gain, no one expect anything less really. Hall of shame indeed.

The global DMCA thing is particularly annoying, although not that much of an impact since most countries have adopted some draconian form of it. One country is Denmark, and one citizen is doing his unique way of protesting the illogical nature of the laws. Under the DMCA, or the Danish equivalent, any attempt (even unsuccessful) at breaking DRM is considered illegal. However, Danish law allows for DVDs to be ripped for legal home use, and so the two Danish laws actually conflict each other. This is why Henrik Andersen confessed his “crimes” of ripping hundreds of his legally purchased DVDs for use in his home theater setup, to a Danish anti-piracy agency. Under the DMCA, Mr Andersen is guilty and should be fined, if not jailed. But just whose interests has he actually hurt? Certainly not the movie studios that he purchased his DVDs from.

Still more copyright stuff, bear with me. The third week of the Australian AFACT vs iiNet trial continues, and please refer to my summary forum post to keep yourself updated on this rather important trial, possibly the most important in the world right now concerning the copyright issue, as it seeks to decide if ISPs should be turned into copyright cops.

And in all this bad news, there’s a glimmer of hope for a fair solution that everyone can live with. Google/YouTube is finding that their compromise solution to the copyright issue, of sharing revenue with content owners if they choose not to remove stuff from YouTube, might be working. And working well, as a third of all their YouTube revenue is coming from this trial program. And it’s not just the extra revenue, the exposure on YouTube leads to more business opportunities for content owners, like the case of Mr Bean, the popular UK comedy series, in which the content owners decided to keep the user uploaded clips online, as opposed to removing it, and then found that it actually led to deals with TV stations countries that have never heard of Mr Bean before. So a bit of technical piracy actually led to a successful TV deal, and all while still making money from YouTube  profit sharing. And yet others, like Viacom, are still hell bent on suing YouTube into oblivion. Shorted sighted or what?

Well that was a big section wasn’t it. On to HD news now, although it’s still copyright related, I’m afraid. Managed Copy, the so called legal solution to movie ripping, will soon be upon us. December 4th marks the date that MC becomes a reality on Blu-ray.

Managed Copy in a Pioneer demo for the movie Bolt

I’m excited about MC, because it signals the first step that the movie industry has taken to legitimize the need for people to be able to separate the movie from the disc that it came on. With today’s increasingly digital world and sophisticated home theater solutions, being able to have everything as pure digital data is increasingly useful. Imagine having all your DVD and Blu-ray movies stored digitally and accessible with a few clicks of your remote. It makes categorizing easier, searching even more so, and it will be faster as well, and quieter due to the lack of a spinning optical drive. But to make this reality requires you to break several laws at the moment, but MC might be just what is needed to solve this problem.

But while I’m excited, the movie studios are less so apparently, as there’s just no support for MC despite the December 4th deadline. I suppose this is something whose success and popularity will only be apparent after it has been introduced, and just like the “Digital Copy” feature that the movie studios have only now grown to love, it’s going to take a time before they overcome their fears. And this could be the feature to keep Blu-ray in the game when it eventually goes head to head with digital distribution  (with Best Buy the latest to get into the digital download market). Whether you get it from the Internet, or from a USB stick, or on a Blu-ray disc, in the end, it’s the digital movie that’s important, not the way it arrives to your home. And for HD content, Blu-ray disc (sent via the postal system) may still be the best solution, from a cost and even speed perspective (see pigeon test).

And lastly in gaming, Sony’s losses from the PS3 have now topped $4.6 billion. But Sony is hoping to add perhaps a couple of more billions to this figure, as the more they lose, it means the more PS3 consoles they are selling, and that’s a good thing for them in the long term, if extremely hurtful in the short. In the post I made there are also links to the losses being made by Nintendo and Microsoft. The amazing figures for Nintendo, in which they’ve been in profit every year since the stats were first available, shows that even though they’ve had a few failed consoles in between, their strategy of concentrating on fun first, and technology second, is still paying off.

And that’s the news for this week. I’m willing to bet that next week will be super quiet as news sources regurgitate this week’s news items in various flavours. Oh, I got my graphics card back from warranty (the first one, with the broken fan). It’s now working great and the average temperature was about 10 degrees (Celsius) lower than when I first got the card, meaning that even when the fan was spinning, it was still overheating.

Starting with copyright news, anti-piracy has become a real business, that’s not too surprising. But has the business of fighting piracy become more profitable than actually stopping piracy?

That’s what one anti-piracy firm thinks, and it even made a presentation showing just how more profitable it can be, for them and content owners alike, to allow piracy to continue and to make money off it by suing people, or threatening to sue them, for copyright infringement. They estimate that a quarter of all people they scare pay the penalty that they’ve arbitrarily set, and each successful claim is worth hundreds of legitimate downloads in terms of profit. This follows a rather candid interview that was given by a similar anti-piracy outfit not too long ago, where they revealed that they’ve put out content on P2P networks to lure people in, and they’ll only go after the people who they can make a good profit from. Stopping piracy, seems to be a distant second objective to making a bundle of cash by exploiting people’s fears about going to court, people’s lack of knowledge of the law, and the anti-piracy crusade that content owners are hell bent on pursuing. And your government is not only allowing it, but probably helping and profiting from it as well. Is this really acceptable?

Speaking of governments and unacceptable practices, have you heard about the proposed anti-counterfeiting/piracy treaty, that will be discussed in South Korea next month by several leading countries. The plans that could cause your iPod or laptop to be searched at the airport for suspect pirated content, or make file sharing illegal, or use legislation to turn ISPs into copyright cops? You haven’t heard of it? Well, that’s no surprising, because the US government is making sure nobody knows about the proposals until they’ve been passed, citing “national security” reasons. Only a handful of selected individuals were privy to what’s on the agenda, and even they had to sign non-disclosure agreements beforehand. Has counterfeiting and piracy, and not even the kind that takes place on the seas, become such a major issue that it’s being treated in the way as the war against terrorism or the war against drugs, and no public discussion is even allowed on the subject? Incidentally both of the wars I’ve mentioned just now seems to be the never ending types of which winning is all but a distant dream at the moment – a glimpse into the future of the war against downloads perhaps.

Ringtones are a public performance, just one of the many zany things that the ASCAP claims

But before the governments can agree on how long to lock people up in Gitmo for downloading the latest Miley Cyrus album or a screener of Zombieland, the RIAA and MPAA have to do things the hard way. One method they’ve tried before is to attack BitTorrent networks, using techniques such as “piece attack” and “connection attack”, both of which designed to frustrate the downloading experience for other users. However, a study has shown that despite the millions of dollars given to anti-piracy firms to implement these methods, they do not work, and at best, they are a minor annoyance to downloads for only a couple of minutes. More millions down the drain, millions that could have been used to give people what they want, which is cheap, accessible music and movies. Instead, they’re doing things like trying to get royalties from ringtones, or to charge people to listen to the 30 second previews on iTunes. This, and many other claims, are being rejected even by the copyright friendly courts, as the ASCAP found out this week. The content owners, and the people who have been profiting from royalties, are doing everything they can to hold on, even asking Congress to make it a law so that they never lose their cash cow. Instead of embracing change, they’re fighting it, and you wonder how long they can go on doing the same thing. The longer that legitimate and comparable alternatives to illegal downloads are not implemented, the more likely that illegal downloads will be accepted as acceptable practice by the general public.

And many things that have been adopted as common practice, such as recording TV shows to your VCR/DVR or ripping your CDs to MP3, are now considered legal. But they won’t be legal if the Canadian group Access Copyright have anything to do with it, and they propose that any of these acts should carry a fee that goes toward the content owners, or at least the people who profit from giving out licenses, such as Access Copyright. It seems that the copyright debate has gone all the way back to pre Universal vs Betamax times, and the content owners are still trying to fight innovation, even if that particular innovation (the ability to record stuff) is a couple of decades old already.

Nobody likes the MPAA, not even the studios that it represents

This anti innovation drive has a lot of people angry, and has given agencies such as the MPAA quite a bit of bad PR. So what do they do about it? Instead of calling it “anti-piracy”, anti-piracy is now called “content protection“. Protecting the content from those pesky and annoying people called customers, perhaps, and also protecting profits again innovation. The studios are also unhappy at the MPAA’s approach, calling it not aggressive enough. The shift in strategy will mean that the MPAA will now go after ISPs and network operators, to clamp down on the spread of information from a higher level. Yes, this should make them more popular. And this brings us quite nicely into the iiNet trial, the landmark “studio versus ISP” case that could determine the future of the Internet. It’s the second week of the trial, and you can read the summary in the linked post. Suffice to say, if ISPs are to become copyright cops with the power to kick people off the Internet, then you have to wonder, due to the ever increasing importance of the Internet to people’s way of life (and work), whether this infringes on people’s rights in a democratic society. Finland has just made 1 Mb broadband a basic legal right for anyone who lives in the country, and they will up the speed to 100 Mb by 2015. This seems to be the direction many countries are going towards, making Internet a basic utility just like power or water. But if the Internet is a basic utility, then how does the three-strikes system (or as in the iiNet case the “one-strike” system) affect this basic legal right. Can you be denied water or electricity because you’re a suspected criminal? Can the government deny anyone the ability to make a phone call, and even so, is it something they can enforce at all unless that person is in prison, or under house arrest. And in the end, will any of this actually protect the profits of billion dollar movie and music studios, or will kicking people off this brand new global distribution platform actually hurt profits in the long term. And why is the government doing anything to protect profits of private companies anyway, especially at the tax payer’s expense?

But let’s end this section on a slightly happier, and sane, note. Danny Boyle, director of Slumdog Millionaire and 28 Days Later says that perhaps the best way to fight piracy is to cut movie prices, because the cinema still has something unique to offer in terms of the viewing experience, compared to a poor quality screener. It’s a crazy suggestion, so it might just work. Or we can just ban the cinema, so nobody can bring a camera into the cinema and record it. Problem solved!

In high definition news, the CEO of Netflix says that DVDs may be on the way out. But instead of Blu-ray replacing the format, it will actually be streaming. Of course, he’s referring to movie rental, not sale-through, and his director of corporate communications had to soften the statement by saying that growth is positive on all the formats.

Netflix CEO Reed Hastings based his opinions on the fact that more and more people are opting for the cheapest DVD rental plan, while still keeping the most fully featured streaming option. I think the convenience of streaming, instant access, no need to wait for the disc in the mail and post it back, might be the reason for this shift. But until HD streaming becomes an affordable reality for everyone, which means bandwidth speed and allowance will have to increase, Blu-ray is still the only show in town if you want the best quality HD movies.

TDK's 100 GB Blu-ray Disc: May not work on current Blu-ray players

What may be not so good for Blu-ray, or actually Blu-ray owners, is the news that 50+ GB discs may not be compatible with current players. So if the movie studios ever decide to use 100 GB discs, say for TV series box sets, then Blu-ray owners will have to upgrade their Blu-ray players again. And I say again because many have already had to upgrade their profile 1.0 players to 1.1 or 2.0, to access features like PiP and Internet content. Chances are, this won’t ever happen, because it will just hurt the format too much if people are yet again forced to adopt new hardware with new disc drives, which further highlights just how out of date the idea of using discs is in the age of digital distribution. And I don’t think people mind having a bunch of discs in a box set, as I think it actually makes it look like more value.

China Blue HD, which is HD DVD for China, is being imported into Europe, along with cheap movies. Can’t see the studios being happy about it, since they licensed movies to CBHD for sale in China only, and the cheap player that comes with a dozen free movies may confuse buyers when they’re out there shopping for Blu-ray.

And for Trekkies or Trekkers, and those who don’t mind a bit of DRM, then this might be for you: A Starfleet badge shaped USB thumb drive with a copy of the latest Star Trek movie on it? How can one resist!

Not much going on in gaming, as everyone is waiting for the delayed NPD stats (due on Thursday, but has been delayed until Monday). It is expected that the Sony PS3 will jump to first place, from third, for the first time since its launch in 2006. Most expect the Wii to be second, with the Xbox 360 third. Microsoft has already came out with a pre-emptive attack on the numbers, calling it a temporary bump and saying that the 360 will still be the number one selling console for 2009.

2010 is looking like a decisive year for this generation. Sony has it’s Wii like motion system, but Natal may trump it as the must have casual gaming gadget. Nintendo has been quiet, which makes me suspect they’ve got something up their sleeves.

The NPD analysis for September 2009 should be posted sometime during the week, so until the next edition of the WNR, I hope you’ve had a good time reading this, have a good week and don’t forget to tip the waiter.

Let’s start with copyright news, as if I have to say this since every issue of WNR has started with copyright news, and the graphics to the left of this sentence sort of hints at it a bit.

This week is the week that the high profile “movie studios versus ISP” trial started in Australia, with the MPAA backed AFACT and Australian ISP iiNet going head to head in court over allegations that iiNet “allows” its users to pirate stuff. There’s all sorts of arguments and statements being thrown around in court over the week, too much to go through all of them here in great detail (check out the link for more details). The AFACT doesn’t think iiNet is doing all it can to stop piracy, and iiNet claims that this whole thing has been a set up by the AFACT to get its day in court. The AFACT claims over 90,000 acts of infringements occured on iiNet’s network over the period of time they monitored activities, while iiNet believes this number is exaggerated and inaccurate due to the way the AFACT counted them (they counted partial downloads, even by the same person downloading the same file over time, as separate infringements). iiNet also revealed they were sent thousands of infringement notices by the AFACT over the course of a week, far too many for iiNet to be able to verify and process and they believe this “infringement spam” was a deliberate ploy by the AFACT to ensure iiNet would fail to remove users from its network and hence, “allow” piracy to occur.

I’m obviously a biased individual, but everything that iiNet has said so far makes sense. The plain facts, and the AFACT will agree, is that there’s a lot of piracy going on. A lot! But to get ISPs to police the thousand of infringement notices per week  is just really unfeasible, even if the ISP in question does not verify any of the notices and simply ban users at the first sign of trouble, which could then lead the ISP into legal trouble as the innocent users that got kicked of can sue for compensation. It’s easy for groups like the AFACT to produce a list of IP addresses of offending users, since they can just monitor the IP addresses on torrents, but the ISP will have to go through the data, match the IP address and the timestamp with user information, and then take action. But as IP addresses can be spoofed, and that just because an user’s IP address was on a torrent, it does not mean they downloaded it successfully or even intended to download it in the first place, or gave authorization to the person to started the download. Only the police have the resources and authority to get to the bottom of such allegations, and I doubt they will have time to investigate potentially tens of thousands of cases per week. Which is why going after the downloaders is such a stupid idea in the first place. Anyway, I’ll be posting more updates on the iiNet trial every week, but a decision in the case is unlikely to be had this year. Obviously, the AFACT would love a win here, but even if they lose, it may give them just enough to push the government into adopting some kind of three-strikes legislation to ensure this “travesty” doesn’t go on for much longer.

Sarkozy gives a big thumb up to piracy ... when it suits him

And the chance of such a legislation becoming a reality in Australia is quite high given what has happened with France adopting similar laws (pending appeal in their Constitutional Council). A big supporter of the laws,  is French President Sarkozy. But a French paper has revealed this week that Sarkozy is in fact a big supporter of piracy as well, but when it benefits himself. He allowed his staff to make 400 pirated copies of a movie about himself so he can give it out to diplomats to promote how great he is or something. His staff even went as far as making photoshoped jackets for the DVDs that removed the logo of the official distributor, so obviously they knew what they were doing was wrong, yet still did it. If downloading a pirated movie three times gets you thrown off the Internet and possibly into jail for 2 years, under the law that Sarkozy supports, then how many years will distributing 400 copies, which is way worse than downloading, get? By my calculations, it should be about 500 years.

The Pirate Bay has just been chased out of the Netherlands, after their version of the MPAA, BREIN, successfully sued TPB’s web host, a tactic that seems to be working. TPB was chased out of Sweden using similar tactics. And last week, even Google did their bit to kill of TPB, by removing the home page listing for the website from its index due to a DMCA complaint – luckily, the listing was quickly restored, possibly due to the public backlash.  The Pirate Bay website seems to have relocated to the Ukraine, in a bunker style hosting center that claims to be able to withstand a nuclear attack. The question is, can it withstand a MPAA attack? Let’s wait and see how the Ukrainian courts deal with this issue. As for the proposed Pirate Bay sale, there’s a lot of confusion as to what’s happening, because the handover was supposed to have occurred already.

Viacom is still after YouTube, but may have the "smoking gun" evidence they need to win the case

Still continuing with the theme of lawsuits, Viacom claims to have the “smoking gun” in their legal battle with Google/YouTube. Viacom got hold of some internal emails which suggested that YouTube managers were aware of the unauthorized content issue, but refused to take action. There were also claims that YouTube employees may have also uploaded unauthorized content themselves. Google/YouTube want to attack this case on the basis that Viacom employees had uploaded content for promotional purposes, and as such, it was impossible for them to know which clips were authorized and which were not. What interested me was that Viacom obviously knew the positive effects of YouTube, and thus were employing people to upload promotional clips. You can argue that they also benefit from unauthorized clips as well. I wonder would they be happier or angrier if YouTube banned all Viacom clips from their website, which would definitely solve the piracy problem for Viacom, but is this what they really want? It seems that these media companies want to exploit YouTube’s user base, but only if they have full control over what happens, which is not how YouTube or similar websites work – it’s the lack of control, the total freedom and spontaneity of the content and the users who upload them that makes or breaks sites like YouTube. If the content owners don’t realise this fundamental shift in the relationship between content owners and content users, then they’re in for a rough ride.

Still more lawsuit news, this time it’s the MPAA versus Real Network’s RealDVD case. An injunction was granted against the sale of RealDVD earlier in the year, but Real Networks is appealing the decision. It’s unlikely to be successful, since an injunction is the “safe” thing to do pending the verdict, but it’s also a “nothing to lose” situation for Real, which has already spent a bundle in legal costs, an appeal won’t make much of a difference now.

And from the “another way to solve the piracy problem without rooms full of lawyers” section, here’s Spotify’s solution – music renting. By paying a small monthly fee, customers gets to download up to 3,333 different ad-free songs at any given time to their PCs, iPhones or Android phones for offline enjoyment, but they lose access once they stop paying the subscription fee. It’s not an ideal solution, especially since DRM is involved, but it’s certainly cheaper than buying 3,333 songs, and less likely to involve you going to court.

Onto high def news, Blu-ray is probably not coming to the Macs anytime soon. The well sourced blogger who first broke the news that Blu-ray may be coming, then later posted that, well, it’s probably not.

Either move would have been understandable. Adding Blu-ray make sense, since Blu-ray is not that popular in the computing arena, but every PC has the ability to support it, unlike Macs.  Apple is also on the board of the Blu-ray group, and has done a lot of work to promote high definition video. On the other hand, Apple’s iTunes and Apple TV strategy means that they prefer online distribution over disc based distribution, so Blu-ray may be seen as a competitor.

Consumers only want 3DTV and 3D Blu-ray if it is cheap or at no extra cost

People may still be getting use to HD being standard, but already the next “big thing” in home entertainment is being hyped: 3D. Unfortunately, consumers don’t seem to be buying the hype, at least now right now, because a study has shown that there’s very little interest in 3DTV or 3D Blu-ray, not unless it comes at little or no cost to the consumer, which defeats the whole purpose of having something new. It is a bit gimmicky, but I personally like these kind of gimmicks, and I think 3D has a place in the home, even if it doesn’t exactly reach mainstream popularity.

Toshiba's Cell Regza TV: Records 8 HD channels at the same time!

What may be popular with consumers is the new generation of TVs. No, I’m not talking about higher than 1080p resolution sets, but rather, TVs that allow you to do more than just watch TV. Panasonic and Samsung went with Internet capable TVs that allows you to watch YouTube videos, check out the weather, and all sorts of other things without leaving the comfort of your couch. Toshiba is doing something different, mainly because it can. Toshiba owns the Cell processor that the PS3 uses, and they’ve been talking about it for a while, but they’ve finally managed to find a good use for it on their TVs. Their new Cell Regza range can record up to 8 channels of HDTVs at once to the internal 3TB HDD, for up to 26 hours. This means that if you missed on anything in the last day and a bit, on up to 8 channels, you can go back and watch it without having to torrent it. The powerful Cell processor also allows the TV to show 8 different channels at once. We don’t even have 8 HD channels here in Australia, but this would be extremely handy to have in lieu of a dedicated TiVo like set top box.

And finally in gaming, I posted about firmware induced problems for the PS3 last week, and it turns out I’m not the only one who wants answers, because a class action lawsuit has been launched against Sony regarding the problematic 3.00 (and 3.01) firmware.

I think people sue too much over in the US, and I think this is certainly something that probably shouldn’t waste the court’s time, but if it gets Sony to be a bit more careful about their firmware releases, or to come clean on why the drive freezing and no more disc reading problem seems to only come after firmware updates, then the effort would have been worth it.

The lawsuit is certainly going to divide the PS3 owners, some of which like me have personally experienced the problem first hand, while others don’t believe it’s actually real. It is certainly rare enough, but not so rare as to never happen, to have caused this divide. What I don’t like is the PS3 fans, that haven’t yet experienced this problem, claiming it’s all made up to make Sony look bad or it’s caused by people not knowing how to use their PS3s. I take these quotes from postings on the official PS3 board to illustrate this phenomenon:

The “you’re all Sony haters making this up, or you’re too stupid to own a PS3″ brigade:

I still think many failures are cases of what’s called “future shock”. You have a rather sophisticated piece of electronics and users really don’t know how to operate it properly.

The “I’ve had this happen to me” group’s response:

And I think that’s a pretty ridiculous thing to assume. What’s to “operate”?, it’s a closed system!  That’s more like a lot of the unsubstantiated claims and misinformation I’ve been reading…on this board in particular. For some reason. Especially from people who think because there’s nothing wrong with their unit, everbody who’s does is either lying or too incompetent to know how to plug it in.

It’s real. It’s rare. It may already be a non existent issue in the new redesigned PS3 Slim. But it’s not right for Sony to charge people to repair something that I can think is almost certainly a manufacturing or design defect (either in hardware, or in the firmware), and it’s certainly not the owner’s fault.

Alright, that’s it for the week. More news next week, definitely more iiNet stuff, possibly NPD stats for game console which may see the PS3 become the number one seller, beating the Wii for the first time. See you then.

Next week’s PSA: backups – do you have a system and if not, why not? Let’s move onto the news.

In copyright news, The Pirate Bay appeal is about to begin, but there has been some shuffling of the judges in the case. Judges, or just clerks, I’m not quite sure – the Swedish legal system is a bit different to that of the US or Australia. But a judge, or a clerk, has been removed due to bias, but the request for removal came from the people suing TPB, not from TPB.

This leads me to believe that this might not be done to ensure the result cannot be challenged, as the RIAA/MPAA claims, but rather that the person’s removal may in fact hurt the TPB. The bias in question was related to this person owning shares in Spotify, which has content distribution deals with the RIAA. Does this mean the person would benefit from TPB not existing? Possibly, as Spotify aims to offer what TPB offers illegally. However, it also might mean this person has the required technical knowledge to understand the major issues behind the case, and that in turn might hurt the copyright holder’s case more. I was once told that this type of case is often won or lost on the ability of the judge(s) to understand the technical implications of their decisions, and that judges that do not come from a technical background (that is, most of them) will usually rule in favour of the industry group. It’s understandable, as if the first thing you think of when someone says “torrent” is rain, then you would also be more likely side with major Hollywood studios as opposed to a bunch of kids who set up this website about pirate ships.

Pirate Party Australia: Ready to fight in the next election in Australia

Which is precisely why there should be more education and more public lobbying of the issues, which has generally been one sided in favour of the copyright holders. The Swedish Pirate Party’s fantastic results in the European Parliament elections shows that this is an issue that people care about and politicians and judges should realise that there are two sides to this issue, and is not a case good versus evil as portrayed by the copyright lobby. Which is good news then that Pirate Party Australia has managed to sign up enough members to contest the next Federal election, and I suspect they will do rather well in the polls, since there has been a lot of Internet related issues that have become major issues, such as the government’s ridiculous pursuit of a national censorship system, or the much needed national broadband network. And the piracy issue, particular with the current high profile copyright court cases, and the government’s hints at moving towards a three-strikes system, should ensure a lot of protest votes go the way of the PPA.

iiNet will defend itself in court next week over claims that it allows and promotes piracy

Speaking of high profile Australian copyright court cases, it will start next week but the Australian Federation Against Copyright Theft (AFACT) has dropped another key part of their case against iiNet. Previously, they had dropped the “conversion” charge, as they could not prove that iiNet was the main copyright infringer. Now, they’ve dropped the part of the case which say that iiNet engaged in primary acts of infringement, based on the fact that iiNet caches content for its subscribers. Of course, all ISPs cache content, that’s how ISPs work, and if an ISP can be found guilty this way, then all of them need to be shutdown immediately as they’ve all helped to plan terrorist attacks, share child pornography, commit acts of fraud and every other bad thing that has gone through their cache. The fact that charges are being dropped this late into the preparation phase, suggest that the original charges were far too ambitious, and lacked understanding of even some basic facts like how ISPs work. Were they perhaps too ambitious deliberately to scare iiNet into submission, into a settlement, not expecting iiNet to be so determined to fight the charges out in court? Who know.

Free All Music: Free MP3s, if you watch an ad ... too good to be true?

Now, whenever there’s a clever new way to fight piracy, no matter whether it will work or not, I’ll report it here. The latest is interesting, and it’s actually good for consumers, as if the plan works, you’ll be able to download legal MP3s for free, and all it will take is a moment of your time. The new idea, well not exactly new, is ad-supported MP3s. The plans is that after the user views  a short video ad, they will then be able to download the DRM-free MP3s to keep. Sounds pretty good to me, although it’s a US only thing apparently so I can’t take advantage of it. But if it sounds too good to be true, then it might just be that. The major problem I can see immediately is, well, how will the video ads actually manage to pay for the MP3s, each of them costing at least $0.50 each – a single view of a video ad, unless the user clicks on it, is going to generate a lot less than 50 cents, probably a lot less than 5 cents. But if the ads do manage to pay for the music, then it becomes a good business model and will go a long way towards killing piracy, much more than a new DRM scheme or more lawsuits. Let’s hope my math is wrong and that the system does work, because I don’t people will mind sitting through an ad or two if it means free stuff.

Let’s move onto high definition news, the latest rumour is that Apple will finally add Blu-ray support to its iMac range, despite Steve Jobs calling Blu-ray ‘a bag of hurt’, referring to the messy and expensive licensing process and the lack of user penetration. Both problems have been greatly reduced thanks to lower and simpler licensing schemes, and with current  market share double that of when Mr Jobs spoke.

But as it is, it’s just a rumour for now, and I haven’t really heard enough from the right sources to think that this is a certainty, not like with the PS3 Slim and Xbox 360 price cut rumours. Will Apple’s support help Blu-ray? Of course it will. Will it be a major help, probably not. Why? Well, Blu-ray has been available on Windows systems from day one, and despite there being a lot more Windows systems than Macs, it has been of almost no help to the format, and penetration of Blu-ray on PCs remain quite low. Still, with Apple’s well known and respected ability for working with HD video, having Blu-ray support is almost a necessity these days, rather than a luxury, although it remains to be seen whether hardware acceleration will be enabled in software (the Nvidia GPUs that iMacs use should support at least H.264 acceleration for Blu-ray playback).

One rumour about Apple’s reluctance towards Blu-ray is that its current Apple TV devices would be hurt by Blu-ray’s success, since Apple would prefer everyone to be buying movies through iTunes, as opposed to on disc. I don’t know if I believe this, as I think Apple’s reluctance is more to do with how people use Macs, and whether Apple thinks people will use it as a Blu-ray player, when they take into account the number of people who currently use it as a DVD player.

Foxtel Download: Free downloads for subscribers

But it is true that technologies like iTunes are in some ways competing with Blu-ray for the home video market share. But even within downloads, there’s great competition from the way it is being offered. The latest thing here in Australia is that our major cable/satellite subscription TV provider, Foxtel, has just announced that they will offer 400 hours of downloadable content for free per month for all subscribers. It’s technically just allowing subscribers to download for free the content they’ve already paid for and with subscribers using the IQ set-top-box, content that they already have the ability to record and keep. But with a billing system already in place, and an user base that is already willing to fork out cash for TV shows and movies, it will be interesting to see if Foxtel extends this download service to premium content like the latest episodes available straight after their showing in the US – with the payment being handled through the monthly bill. Foxtel already does this with on-demand HD movies through their set-top-box, so it’s not a huge step to extend this to TV and movie downloads on the PC.

Everyone knows about the infamous Xbox 360 RRoD problem, but I wonder if the PS3’s “no disc reading” problem might also get some unwanted spotlight in the near future. The problem I describe is one that I have personally experienced and posted about on this blog, and it seems to be still happening with the latest firmware updates.

I have no doubt that this problem is far less widespread than the RRoD problem, but there are still a large group of people who have suffered from it, and it seems to occur after every firmware update. I would guess that less than 1% of PS3s are affected, possibly much less than this, so it’s no surprise that some people feel the problem doesn’t exist because it has never happened to them. But it has happened, I can confirm from personal experience, with the people who posted comments on the blog, from users posting about their problem on the official PS3 forum and elsewhere, and so the problem is not imaginary. The worst part is that Sony charges $150 per repair of this problem out of warranty (mine was in warranty at the time), and if it is the firmware update process that somehow causes this to occur (and the PS3 firmwares themselves are not really known for their bug free nature), then I wonder if charging users this large amount is the right thing to do. And this problem pretty much only started showing up after the 2.40 firmware update, so something must have changed then that causes this problem to appear, but it’s all just speculation as Sony has refused to release any information in regards to this issue. And with the wholesale hardware changes in the PS3 Slim, I don’t think this will be an issue for the Slim, so that’s one reason to upgrade your old PS3s to the new one, even if the styling isn’t to my taste (I still like the old one better, hmmm, glossy).

Okie dokie, that’s itie for this weekie. More next week, so until then …

Let’s start with copyright news in this very quiet week, which means I’ll have to ramp up my rant-o-gizmo to fill the space. I can also write completely meaningless sentences that occupy a lot of space, which makes this WNR look more content rich at first glance, but not too much as to make it too boring to read or too much like the ramblings of a mad men, which does nobody any favours, unless of course you’re auditioning for the TV show of the same name, which I have yet to watch a single episode of, although I’ve been meaning to. I’ve heard good things about it.

With the above 85 useless words out of the way, do you still remember the Amazon Kindle thing? Well, it was a huge PR disaster for Amazon as they deleted 1984, of all books, from people’s Kindle e-Book reader remotely without their permission. They’ve apologised, issued refunds, and lots of other things, but the latest should finally settle matters once and for all. Or at least Amazon hopes so. They’ve promised to replace copies of the deleted books, this time with authorised copies, and this should restore people’s notes that were also lost when Amazon pulled the plug. Those that no longer want the books can choose to receive $30 gift certificates instead. It’s nice of them, but it’s too little too late, and while I doubt Amazon would pull a stunt like this in the future for fear or further backlash, but the fact of the matter is that the ability to do so remains, and DRM is still evil.

Redbox: Hollywood's latest target in their crusade against innovation

Hollywood’s latest target is Redbox, the DVD rental vending machine. Universal Studios, Fox and Warner Bros. have threatened to stop the supply of movies to Redbox, so they will no longer be able to rent out movies from these studios. Redbox had earlier made deals with Paramount and Sony, but the demands of these other studios were designed to basically to put Redbox out of business, and so at the moment, no deal seems likely. Amongst the demands are that Redbox destroy all rental copies they no longer need, which previously they sold cheaply on the second hand market. I won’t mention the environmental impact of this, but since Redbox has already agreed to this demand with Paramount and Sony, this wasn’t the major point of contention. What Universal and co. wanted was 40% of all of Redbox’s profit from the rental business as royalty, which is simply ridiculous and something they do not demand from other rental businesses. Also, they want to price fix the rentals to ensure it doesn’t go below $1.00 per night. And as if these demands weren’t enough, the studios also want Redbox to only rent movies 45 days after release, so as not to hurt the straight sales business. You might wonder why the studios want Redbox to fail? It could be because Redbox’s cheap rentals means less profits for studios, or that it might really hurt their sales business (although in my experience, people who buy movies will always buy them, and people who rent will rarely buy them, regardless of how many days you delay the availability of rentals). But I think it’s because studios fear losing control, and Redbox’s business model means studios have less and less control over how their discs are sold. It doesn’t matter if it benefits consumers, or that this could lead to bigger and better things, even for studios, as Redbox expands and perhaps gets into the digital download kiosk business. Change is what the Hollywood studios fear, change to their traditional business models for which they’ve gotten very rich on over the years. And it’s not the first time Hollywood has challenged innovation, as they did with VCRs (it was also Universal Studios, back then versus Betamax), DVRs, HDTV (see last week’s story on selectable output control), digital movie storage systems (like Kaleidescape) and digital downloads.

The British Academy of Songwriters, Composers and Authors, organizations opposed to a three-strikes system

And it’s not just Hollywood, the music industry is even worse at dealing with change. The whole DRM’d music fiasco, which eventually forced the studios to back down, was a total waste of time and money. And now, their crusade against Internet users seems to be succeeding, at least when it comes to lobbying governments for three-strike Internet banning systems. But the studios claim they are only looking after the musicians, whose hard work does deserve to be rewarded, but do musicians really think that banning potential customers and fans from the Internet is really the solution? They do not. At least not the UK ones, as groups representing the likes of Sir Elton John and Sir Paul McCartney have made it clear that they vehemently opposed to any such plans to ban people from the Internet. The Featured Artists Coalition, the British Academy of Songwriters, Composers and Authors and the Music Producers Guild have all called the three-strikes system as “extraordinarily negative”. They believe there are other ways to raise profits, like through integration with video games like the Guitar Hero series, and they are right. Video gaming is a growing business, often at the expense of music sales, as interactivity is what people crave these days. There are also other solutions, such as a subscription download system, or more focus on music video digital downloads, but just like Hollywood, the music studios want to protect their old way of doing things, which has also served them well, but perhaps no longer cuts it in today’s digital world.

Movies, music – software is another product that’s experiencing growing piracy. But again, the industry fails to grasp and take advantage of the changes in people’s needs, and their latest attempt at an anti-piracy video, dubbed the worst ever, proves this. It only shows how out of touch these industries are when it comes to dealing with piracy, and how they totally fail to connect to the current generation by using a modified campaign from the 90’s (against floppy disk piracy, no less) to fight piracy. The fact that the video compares a college student sharing some DVDs with professional pirates who are arrested and sent to prison, just shows how they are not grasping at the difference between piracy for profit and personal piracy. They’re also still assuming people do it because A, they don’t think they’ll get caught, and B, that they don’t know it’s illegal. They do know it’s illegal, and maybe they do think they won’t get caught (and statistically, they’re right), but most do it because they can’t afford to do anything else if they really really need a piece of software, or music or movie (academically, or even for social reasons, as you want to keep up with friends who do use said software or have watched and listened to the movie or music). It’s not an excuse, that is true, but it’s also a fact. The legal alternative is of course for the people who cannot afford it to not use it, but does that really help the software, music or movie industry? They don’t get any extra profit from people not using their products, and they certainly lose a lot of the Internet based hype surrounding tools like Photoshop, or the latest movie, or music video. And from the loss of this, they  actually lose more money as a result. Of course, they could discount things to make it affordable, so that every person who pirates it now will become a loyal customer. And I suspect for a $300 piece of software, the number of people who pirate it will greatly outnumber the people who buy it, possibly by a factor of 100 to 1 – and so the companies can reduce prices by a factor of 100 (to $3) and still make the same amount of money, but they only need to reduce prices by a much smaller factor, and they will actually come out ahead. Would you still pirate Windows 7 if you could buy a copy for $49, as opposed to $199?

Let’s move on to high def news. Sony is the latest manufacturer to add video streaming support to their Blu-ray player. This is actually kind of a big news, for the founding father of Blu-ray to adopt support for a form of video distribution that is seen as a competitor to Blu-ray, and perhaps even eventual successor once bandwidth catches up. Sony will add Netflix, YouTube and Slacker support to the BDP-N460.

Sony's BDP-N460 will feature Netflix, YouTube and Slacker integration

In the same news post, LG also announced that they’re adding Vudu support via a firmware update to their Blu-ray player range, which already includes impressive support for Netflix, YouTube and CinemaNow, as well as Wifi capabilities and support for home network media streaming. Samsung has been equally busy adding everything from YouTube support to MKV playback and USB drive input. It seems the disc playing capabilities of these players have been relegated to almost a side feature, as these “media boxes” (for want of a better description) can do a lot of things that were once limited to a cumbersome HTPC, or games consoles. And this is good for the consumer as they get these for no added cost, and great for the video streaming companies that can forgo expensive and usually ineffective set-top-box rollouts. And it’s all thanks to BD-Live, or rather, the requirement of BD-Live to include Internet connection capabilities on players (and to a lesser extent, Bonus-View, which requires on-board storage that can be used for video streaming, as well as downloads). And BD-Live being available so quickly after Blu-ray’s introduction is, in a small part, thanks to HD DVD’s mandatory Internet connection requirement, without which the Blu-ray people might not have had the competitive urge to ad what could be seen as a entry point or a Trojan Horse for a competing distribution service.

And lastly in gaming, Sony is still feeling great after the successful launch of the PS3 Slim, and the price cut that went along with it. What they’re not feeling too great about is perhaps the reaction to the PS3 3.00 firmware, which has disappointed a lot of PS3 owners. I know I talked about this last week, but this week, even Sony admitted that some of the changes brought about by the new firmware has been a failure, like the changes to the friend list, and they’ve suggested that changes are being made. So 3.01 shouldn’t be too far away, but it’s nice to know that they do respond to feedback, which they haven’t done enough in relation to firmware updates. And whoever thought that using a major version number like 3.00 was a good idea without introducing any major new features, should be sacked. It wasn’t even as if the previous firmware had reached 2.99 and there was no way to go by to 3.00, and even then, they should have done a 2.991. Don’t raise people’s expectations, especially when it comes to fanboys that have very active imaginations when it comes to pre-emptive gloating about how great the new firmware is going to be when it comes out.

So that’s all for this week. Should be more news next week, and with GTA IV out of the way, I might even bother to search the net and find some, although that Monopoly Cities Streets thing has been interesting me enough to suggest I might have found something else to occupy myself (please don’t put hazards on my streets, pretty please!). See you then.

Starting with the copyright news, the Canada government is currently in a consultation phase in regards to changes to copyright laws, holding a series of town hall meetings to allow for public input. But this might actually make the copyright lobby look bad, and might make the government think twice about giving away its own citizen’s rights to corporations, and so the all powerful copyright lobby had to take action.

The action includes hiring private security guards and arresting anyone with a different opinion, while changing the format of the town hall meeting as to stack it in their favor. When a Canadian member of parliament (MP), a member of the NDP party, joined students to protest the changes, by handing out flyers informing people of the possibly biased meeting, they were threatened by security guards at the event. And even after the incident, The American Federation of Musicians issued further threats towards the NDP MP, asking her party to penalize her for daring to take part in the democratic process. It also labeled the action of students and the MP, basically involving only handing out flyers, as “disgusting”. Yes, the democratic process can be a bit disgusting at times, especially if it leads to the “wrong” opinion.

DigiProtect: Candid interview gives an inside view on how the anti-piracy industry operates

But you wonder why so much time and effort is being spent fighting piracy, when the act of fighting piracy itself is quite profitable. Step forward Digiprotect, a company specializing in tracking down online pirates and suing them on behalf of copyright holders. Companies in the same business as Digiprotect has been accused of various unsavoury acts previously, such as hacking into servers and stealing information, but in an interview, Mr. Hein, the account manager of Digiprotect, revealed some very interesting tidbits on how the anti-piracy industry has matured and now employs a specific business model. Mr. Hein claims, and even I have a hard time believing this to be the case, that they actually lease copyright on certain content from copyright holders, release these content on P2P networks as honey pots to attract potential downloaders, and then catch them in the act. And then they will chose the countries that make suing easier and more profitable, and sue those users. There is even a formula to determine how much money to seek, but it’s not related to actual losses or damages – the amount is set so that it’s not too much to make the judge sympathetic to the defendant, but obviously large enough to make the whole process worthwhile. The whole interview is extremely candid and interesting, so it’s definitely worth a read, but the impression you get out of all this is that it is, in the end, all about profit for companies like Digiprotect. And if governments pass laws to allow for three strike based Internet bans, you can bet that companies like Digiprotect will set to profit, as someone will need to do doing all the hard work of tracking down who the copyright holders deem unsuitable to be connected online.

And ISPs will then have to be the one forking over the money to companies like Digiprotect, the cost of which will then be passed onto the consumer, even those who has never downloaded anything illegal. This is just one of the reasons why UK ISPs have joined forces to oppose the government’s Internet anti-piracy banning plans. In an open letter, the CEOs of some of UK’s largest ISPs have stated their joint opposition to such a plan, due to the cost issue and also due to the fact that they can see innocent customers being caught up in the system and being banned for no good reason. This is not to mention the burden to the tax payer of having a government agency to deal with the thousands upon thousands of Internet banning requests that will flood in. Per week. But the technophobic government, mostly due to their lack of understanding of the issues, will side with the lobby that has the most pull, and Hollywood and the music studios are where the money is. ISPs, and all Internet users, tax payers, will have to the ones to foot the bill so these billion dollar corporations can resist change for a few more years.

Selectable Output Control: MPAA wants it, so you should oppose it

And if you want further evidence of the fear of digital technology and the industry’s reluctance to move on, all you have to do is to look at the MPAA’s second attempt to add DRM to HDTV. They have asked the FCC again to look into the issue of selectable output for HDTV, to close the so called “analog hole”. The MPAA wants to prevent people recording 1080p TV broadcasts to VHS tape, which I wasn’t aware was such a big issue piracy wise. Do people still use VHS tape? But of course, it’s not just VHS tape, it’s the analog recording of digital content, whether it’s done so on a VCR, your computer’s analog video inputs or on your DVD recorder. But again you must ask, does analog recording from TV lead to a lot of piracy? So much that the MPAA must spend considerable resources to lobby the FCC for changes, especially after it has already failed in their previous attempt not too long ago due to opposition from, um, practically everyone including the former FCC chairman. And the proposed changes, which in essence means DRM for HDTVs, means that everyone will have to upgrade their HDTV equipment again so that they are DRM compatible. The MPAA argues that this is actually a pro-consumer move, because by adding DRM to everything, the content owners will stop being anti-consumer by holding back content for longer periods. Awesome!

And on  that note, we move effortlessly to HD news. Cnet has reviewed Oppo’s new Blu-ray player, the BDP-83, and declared it the best Blu-ray player they’ve seen so far. The superior picture quality was as expected, given Oppo’s experience with DVD upscaling and the price tag of the machine, which puts it in the  middle/upper end of the price range for Blu-ray players. The fact that the player supports pretty much every format under the sun (except for HD DVD – more on that later) also helped – DVD-Audio, SACD, and all Blu-ray profiles are supported, as well as DivX, AVCHD playback.

Toshiba's first Blu-ray player available in November

But it’s also the little things that Cnet noted, including a bundling of an HDMI cable that many players neglect. The player also comes in a soft cloth bag, which is a nice touch. Cons include the lack of Wi-Fi, no support for video streaming services and the high price. The problem for people who don’t live in Blu-ray region A is that the player is pretty useless, but there’s ongoing work on region-free firmware and it already works if you don’t mind using an older firmware. That there’s no official region B or region-free version is a big shame, and once again, blame goes towards the few selected greedy studios for forcing region coding upon us.

From one special Blu-ray player, to another, perhaps even more special one. That’s right, Toshiba’s first Blu-ray player, the BDX2000, will soon be available in stores for under $250. It is special of course because this is the first and only Blu-ray player Toshiba has produced so far, and it comes 18 months after the death of their HD DVD format, the failed competitor for Blu-ray. The player itself is nothing special from the information released so far, a pretty standard affair with the only notable feature being SD card support. There’s no NetFlix or Amazon streaming services as per the LG/Samsung/Panasonic players. There’s no mention of DVD upscaling or use of the Cell chip to enhance Blu-ray/DVD playback. And it doesn’t even play HD DVDs, which the press release specifically mentions. I guess that’s forgivable for a first attempt, and we may yet hear more about the video processing features as we get closer to the release date, but one can’t help being slightly underwhelmed. A special discount for HD DVD player owners would be welcomed as well.

And in gaming, the focus is still on the PS3 Slim. Users who have got their hands on one have benchmarked it against the PS3 Fat, and found it to be both slower and faster. It was faster in game loading, but slower in other areas such as booting and Blu-ray disc loading. Those using their fat PS3s for Blu-ray only will not need to upgrade, it seems.

To go with the PS3 Slim, firmware version 3.00 was released for the PS3 (all versions) as well, replacing the 2.80 firmware released in June. So far, as with most of the PS3’s firmware releases, the response to the new firmware has been extremely mixed. The usual report of bricked PS3s (or at least the Blu-ray drives), plus problem unique to this version including controller issues, as well as the fact that with such a major version number, almost nothing major was added feature wise, has some PS3 fans fuming. The use of the major version number, possibly more to denote the introduction of the PS3 Slim than anything else, is what I think confused many people, who were expecting a “New Xbox Experience” type update, but instead got version 2.85 instead.

More Xbox 360 rumours, this time for a new 250 GB Xbox 360 with two wireless controllers. But it’s supposed to retail $100 more than the PS3, and I just can’t see it happening.

So that’s another WNR out of the way. Not as much bile as I had imagined when I first started writing, but too much anger, and you become numb as a result. Or something. See you next week.

Let’s start with copyright news for this relatively news lite week. The Pirate Bay continues to be attacked by the MPAA, via the Swedish courts. This time, the MPAA has forced the Pirate Bay’s web host’s web host to shut off traffic to TPB, which managed to shut down the torrent listing site for an entire three hours. Millions of dollars spent in legal proceedings don’t give you much, do they?

And as a preview of what could happen if the TPB would go down forever, the temporary downtime of the TPB led to server spikes for the other torrent sites. So unless the MPAA/RIAA go and take down every single torrent website, then people will just move on to the next one. Eventually, someone will open a website in a country that won’t bow down to the MPAA, maybe Antigua or somewhere, and then the MPAA would have finally forced piracy to become fully resilient. Evidence shows this to be the trend, that the more the industry fights against piracy, the harder it becomes to prevent it. Evidence also shows that through more competitive pricing and less DRM, piracy can be reduced.

IsoHunt - the MPAA needs to prove direct infringement, Judge says

Going to another big trial going on at the moment, the judge in IsoHunt’s trial actually wants the MPAA to prove direct infringement, of which they have presented zero evidence of it so far. The MPAA are of course outraged, that they would actually have to prove direct piracy, because it might be a bit hard to prove that a text file, which is basically what a .torrent file is, can do any damage at all when it comes to piracy. The text file has to be fed to a software program, which interprets the data, connects to the right trackers, and then through the tracker, connect to users to initiate downloads and uploads. Not exactly direct, and nothing other than the original text file is hosted by torrent sites like IsoHunt – everything else is hosted or produced by someone else, and even at the end of this, you still cannot prove piracy unless a complete copy of a file has been uploaded or downloaded, not just chunks of it. A chunk of a file is just digital garbage, and is neither unique nor will it contain any artistic or commercial value, and hence, no copyright abuse. It would be almost as ridiculous as someone copying a couple of word from an AP news article, and then AP going after them for copyright abuse. Oh.

Going to yet another big trial, a Dutch court has ruled that Mininova must remove all infringing torrents within three month, as the Dutch MPAA, BREIN, has won a court case. It’s funny because Mininova was only set up after Suprnova was shutdown, and Mininova, despite the name, is not much larger and much easier to use than Suprnova. I’m looking forward to see what advances Micronova will have when Mininova goes down, if it goes down. And if you can’t stop torrent sites, then you can go after the people who download them. The UK government is planning to have their own three strikes system that will ban anyone suspected of downloading pirated material. All this will do is to put further pressure on the courts, which might need to handle a couple of thousand claims every week. Happening in the UK, this reminds me of what happened over there in the 19th century, where moral outrage ensure every other poor person were sentenced for trivial crimes, and sent to penal colonies all around the world. Just don’t send them to Australia this time please, because we’ve got enough of our own pirates already.

None of this will actually stop people pirating though. As mentioned above, people will just open new torrent sites that will become super popular instantly. And the people who download pirated material will simply switch to encryption technology, which won’t really slow down downloads that much, but will mean it would be next to impossible to monitor what files you are downloading. So the industry can spend millions on lawsuits, the government can spend millions on new legislation and put further pressure on the judicial system, ISPs can be forced to spend millions on monitoring (which will kill off the smaller ISPs), and further millions can be spent on DRM, but what will all this get you? Piracy that can’t be stopped. Well worth the money spent, if you ask me. For people pirating stuff, and people downloading pirated stuff, that is. Eventually, all of this will force piracy to be even more convenient and private, and then at that time, everyone will do it because they know they can’t get caught anymore. Good one, MPAA.

Let’s get to HD news. Blu-ray may be gaining popularity in the home theater, but hardly anybody is using it on computers, and the situation is likely to continue well into the 2010’s, according to analysts.

There are a lot of reasons why Blu-ray hasn’t taken off on PCs, the main reason may be because other than movies, there’s nothing else that uses Blu-ray. Games could come on Blu-ray instead of 2 or 3 DVDs, but that will only work if most people have Blu-ray drives, and because games can be installed to people’s huge HDDs, the convenience only comes in at installation time. So instead of swapping out the disc once or twice during the install, Blu-ray can save you the trouble, but after this, you will still only ever need to insert one disc into the drive to play the game, whether it is the first DVD, or the single Blu-ray. It’s not like the transition from CD to DVD, because at that time, some CD games came on as many as 5 discs, and because people’s HDDs were smaller, you had to swap discs during play which was really annoying. And even then, the gaming industry successfully resisted using DVD-ROM for gaming for many years.

BD-RE: Too big for some things, too small for others, and just not as convenient

So without BD-ROM applications, then it comes down to Blu-ray recordables (BD-Rs and BD-REs) to offer huge amounts of storage on a single disc. But do people really need these 25 and 50 GB discs? They aren’t big enough to store a full backup of your PC’s content, usually several hundred GBs in size. They may be too big to store the odd file or two, most people use USB drives for that now. So there is probably a use for them for archival purposes, to store content that you don’t want someone to erase, but then again, 25 GB is a lot to store on an easily lost and damaged disc. The fact is between DVDs, USB thumb drives with ever increasing capacity, external HDD redundant arrays, there may be no place for Blu-ray recordables other than for storing HD movies. Imagine if DVDs were only good for making your own DVD movies, would it have become as popular as it is today?

Plasma TVs are dying, and that’s sad thing, because they are still the best quality, and in some cases, the best value screens on today’s market. LCDs, even the newer LED based ones, cannot hold a candle to the quality plasmas can give you. Candle is an appropriate term to use here because it’s the contrast ratio that usually separates the plasma TV with LCD equivalents. And there aren’t any viewing angle issues either with plasmas. But because plasma panels are hard to scale down, they can’t be used as PC monitors or on even smaller devices, and so the LCDs are much more cost effective to produce. And this is why plasma is dying. OLED will come along one day and replace LCDs and plasmas, both in terms of cost and quality, but for now, it remains a rich man’s toy ($2000+ for a 11″ screen? No thanks).

And finally in gaming, the reaction to the PS3 Slim is still the focal point of this week’s news. All eyes are on Microsoft to see how they respond, with analysts calling for a Xbox 360 Slim, which Microsoft needs much more than Sony. But Microsoft’s response, or perhaps it was pre-planned all along, is to drop the Pro bundle and reduce the Elite to Pro prices. Something that you would have already heard about back in July, if you read the WNR.

Sales wise, the PS3 Slim should give Sony’s console a much needed boost, particularly in the short term. Remember it won’t be just people who are buying their first PS3, due to the price drop, but there will be many who will buy their second PS3, as another Blu-ray player perhaps. Expect Sony’s console to outsell the Xbox 360 quite handsomely over the next few months, which is good timing on Sony’s part as the holiday season is so close. You won’t get the same effect with the Xbox 360 Elite price reduction, although Natal should see the Xbox 360 remain strong in 2010.

Xbox 360 Slim: Are Microsoft too scared to put out another piece of hardware, after the RRoD fiasco?

And I’m glad I’m not the only one who thinks the PS3 Slim doesn’t look as good as one had hoped. Instead of calling it the PS3 Slim, it really should be the PS3 Flat, because it’s as if they’ve taken the old PS3 and basically flattened it, making it actually lengthier in size. And as Examiner.com article mentions, it may be because it’s far too early the product lifecyle to have a slim SKU, as least compared to what happened with the PS2. Sony couldn’t make the PS3 Slim any smaller without having to suffer cost issues again, and in the end, they didn’t make it as small as it should be. I don’t think this is a problem for the Xbox 360 Slim, as the Xbox 360 is a year older and the PS3, and the technology it uses was already a bit out of date at the time it came out, and while incremental improvements have occurred, there’s large scope for miniaturization, which could help to both decrease cost and improve reliability. But I guess Microsoft’s Xbox 360 hardware division are still suffering from PTSD due to the RRoD issue, and they won’t be too keen to put out another piece of hardware. But I won’t be surprised to if the Xbox 360 Slim makes its appearance right around the time Natal comes out.

Wordpress tells me I’ve nearly used up this week’s word limit, so I’ll have to stop now. Have a great week, and I’ll be back next week with the same mix of news, ranting, and outright lies.

Otherwise, it was a pretty quiet week, and not just because I proved my own point by spending large chunks of this week playing GTA IV (so yes, I finished the story missions on the PC version, and I’m only 5% away from a 100% completion score – but I did not let it affect work, honest!). Enough chit chat, let’s get started with the WNR.

In Copyright news, Australian ISP iiNet is still frantically fighting the AFACT over allegations that it isn’t taking enough action to combat piracy. ‘Enough’ being the important term in the previous sentence, as iiNet sets out to prove that there is not much more they can do, not when faced with existing laws.

iiNet’s two new lines of defence sees them first claim that the existing Communications Act prohibits them to spy on their customers in order to monitor piracy. The second sees them arguing that since the AFACT has not demanded other ISPs to take similar action, that it is unreasonable to expect iiNet to be the only ISP that needs to take action. I’ve mentioned quite a few times what the copyright holders want ISPs to do is often in breach of privacy laws, although governments around the world are bending over backwards (and sometimes just bending over) to accommodate groups like the MPAA’s efforts to curtail piracy by removing your right to privacy. It all comes down to politicians (and some judges) not really understanding the Internet and what it all means, but the simple fact is that the Internet is now an utility like your telephone service, and is just another form of communication where privacy should be expected. I mention utility because homeowners should now be guaranteed the right to have the Internet, that there should not be any laws in which people are somehow denied essential utilities just because the utility companies don’t like what you’re doing with their services. It would be like your electricity provider shutting down your power just because you might be using electricity do to something illegal – it’s not up the provider to decide whether you should have power or not, it’s up to the judicial system to determine that and to hand out penalties. But governments and judges often see the Internet and the digital revolution as this thing that threatens the very foundations of civilization, and they overreact. In the short term future, when the current digital generation has grown up and are occupying the positions of power, I think they’ll look back at the court cases of today and see just how ridiculous and self damaging the whole thing was – just like how we view McCarthyism today (well, most of us anyway).

iTunes now account for 25% of all music sales in the US

Just to prove how the digital revolution has caught the old guard, well, off guard, news broke that 25% of all music in the US are now sold through iTunes. While the majority of music are still sold in CD form through retail stores, 25% means that iTunes is the single biggest source of music sales in the US already. Now, had the music industry being brave enough to embrace digital, they would be the ones operating the big digital music stores, as opposed to making Apple rich. And had it not been the whole DRM debacle, digital music would have gained market share even faster. While it is unfortunate that I cannot say the industry in general has learned the lessons from misuse of DRM, in that most of them still believe DRM has a place, at least some are trying to address the biggest problem that DRM provides consumers – the inability to do what they want, legally, with these files. Marlin is a new DRM scheme that actually promotes sharing amongst family (and some friends), but it does so in a controlled manner where you (and the copyright holders) know exactly who is sharing your file at all times. But Marlin is still a DRM, and while you are now “allowed” within the scope of the DRM to do all the things you could have done with DRM-free files, the framework is still there to restrict your freedoms if and when the powers that be deem time to do so. To paraphrase Wendy Seltzer of the Berkman Center, DRM is like a maze, and while the old DRM was a maze with a single path that you had to follow, Marlin presents many paths, possibly all the paths you might be able to take legally: but it’s still a maze, and one that you have to hand over your rights as a consumer to enter.

Removing copyrighted videos from YouTube could be a thing of the past

Then there are those situations where nobody gets hurt, yet everyone suffers. One of which is YouTube video uploads. How many times has an enthusiastic user uploaded a video he or she has spent hours editing, finding the right background music and clips to include in the video, upload to YouTube and then had the video removed because it violated someone somewhere’s copyright. Or in the pursuit of the next meme or viral video, someone uploads a clip of something they captured from TV or a DVD – the positive effects of a video going viral are so great that companies now spend millions to professionally produce viral videos – but the home user produced video, which costs companies nothing, gets taken down and all that positive energy is lost. Some companies are only starting to get the fact that people using their material isn’t necessarily a bad thing – it used to be the case where only copyright abuse that actually hurt the copyright holders would get prosecuted, but the fear about digital now means any potential, possibly not even real, copyright abuse gets maximum attention, forcing websites like YouTube to take drastic action to filter out all sorts of content, many of which are perfectly legal (like the time when a TV network used a clip of this guy’s home video, and then when the guy uploaded the same video to YouTube, the video got removed due to a complaint from the very same TV network). But there is money to be made in online advertising, and YouTube is now starting to share revenue with content owners, if they decide to allow the “unauthorised” videos to remain online. YouTube gets a bit of the money because they’re hosting the promoting the videos, the uploader doesn’t get his or her ass sued and gets to keep the video online, and the copyright holders make the money. Doesn’t sound like a bad compromise to me, and who knows, maybe someday the copyright holders will start to appreciate all the free promotion they get from uploaders, and give them a free hat or something for their troubles.

Onto HD news now. Nothing much happening, expect more analysis and analysis of analysis on the Toshiba move into Blu-ray. I’m going to link to one such analyst that came up with pretty much the same conclusion I did when I first heard the news, that Toshiba is doing this merely to promote their own anti-Blu-ray strategy.

64 GB SD cards already exceed Blu-ray's capacity, at a tiny fraction of the size

Well, not so much anti-Blu-ray, as anything-but-Blu-ray, because you can see from the statements Toshiba has made, they still believe that Blu-ray isn’t going to be the one format the rules over all in the early part of this century, and that downloads, streaming and flash memory storage are the future. SD flash cards and USB drives are getting to a point where they equal small hard-drives from just a few years ago, and certainly will beat Blu-ray rewritables in terms of capcity, cost and simplicity. Digital video and still cameras all use SD, most do not use Blu-ray recordables. HDTV PVRs do not use Blu-ray. And even the Blu-ray people don’t want people to use Blu-ray, because it might lead to people making copies of Blu-ray movies through hacking their HDMI cable or something equally absurd. Flash storage is simply more convenient, and there needs to be someway for it to be used for movie distribution before insanely fast Internet connections become the normal to allow us to download a 50GB HD movie in a few minutes. There are many situations where you will still need optical storage, but for everyday use, it is already a bit outdated. Can you imagine using CDs and DVDs in place of your USB drive? No, neither can I.

And going back to what I mentioned above about digital music downloads taking over from CDs, the movement towards pure digital distribution is gaining momentum all the time.

And finally in gaming, the big news of the week is of course the PS3 Slim and the PS3 price cut. It shall be known as the week when the collective gaming community yelled out all at the same time the words “finally”, as it heard about the PS3 price cut, and for once, the rumours turned out to be true about the PS3 Slim.

The PS3 Slim is finally here

My first impressions? That the PS3 Slim didn’t look as good as I thought it would be. I think I got ruined by those fake pics of the silver PS3 Slims that have been around forever – the actual PS3 Slim is a big flat piece of black matte plastic, that looks a bit cheap, to be honest. And while it is definitely slimmer, only about half the height of the PS3 Fat, it’s actually deeper (longer in length) than the old PS3. At the very least, they should have used a glossy finish, and perhaps offer it in some new colours, like white (Wii, Apple) or a sexy red like a sports car. Who knows, maybe they will.

As for the price cut, that’s very much welcomed relief for the ailing PS3 sales, although at this point, sales will need to increase by 100% on current numbers in order to make Microsoft of Nintendo really nervous, much more than the predicted 40 to 60% sales increase.

And what of the response from the other gaming companies? Nintendo remains silent, but Microsoft is rumoured to drop the Xbox 360 Pro package and to price the Xbox 360 Elite at the same price point of $299 ($100 off). Will that work to negate the expected surge in PS3 sales? Probably not, but as someone who is looking to upgrade his Xbox 360 to a new one, it can’t hurt. I would still love to have  an Xbox 360 Slim, or at least an Xbox 360 Cool&Quiet – technology advances should allow Microsoft to do this without increasing costs (and possibly lower them as well), and if they are to stick true to their recently proclaimed 10 year strategy for the Xbox 360, then they need to this sooner rather than later to keep the nearly 4 year old platform alive and viable.

That’s all I have for you this week. More next week!

Some site related bit and pieces before we get to the WNR proper. In cooperation with Womble, I’ve launched a new Womble software sub-forum, in an effort to offer more support for their software. To go along with the new forum, I’ve also written a new guide on how to use Womble MPEG Video Wizard to make basic MPEG video edits. Having using MVW for a while, it’s a very handy piece of software and unlike many other pieces of software I’ve tried, it’s actually pretty quick, no bloat, and very stable.

The July 2009 US video games sales NPD analysis has been posted as well. And in case you’re wondering why being sick allowed me to write a guide *and* a blog post all in one week (I know, this sounds like way too much work compared to what I normally produce in a week), I only became violently ill several hours after posting the analysis. And no, the poor video game sales figures wasn’t the reason why I became sick. Anyway, onto the WNR.

Copyright news first. The New Zealand wing of the MPAA has urged the government to side step due process and hand down Internet bans as quickly as they can print out the banning order pre-made using MS Word templates or something even faster. Just another day in our bizzaro world where expediency in protecting billion dollar companies comes before justice and liberty. But then again justice and liberty don’t make monetary contributions to politicians.

The Pirate Party UK is launched, just as the UK government plans to crackdown on piracy

Not too far away here in Australia, the government, possibly also acting under orders, I mean suggestions, from the music and movie lobby is trying to introduce a bill that will allow ISPs to spy on customers for copyright holders. The government says that’s not what the bill is intended for (it’s for terrorism, just like every law made since 2001), but that makes things even worse because that’s the government basically saying they’re coming up with a law in which they don’t know the full consequences of (or just don’t care). The bill, if passed in December, will make the US DMCA and the French three-strikes system seem restrained, almost anti-copyright, by comparison. The UK government is also planning on it’s own piracy crackdown, to label up to 7 million of it’s own citizens are criminals because they’ve downloaded some pirated stuff (or at least the copyright owners say so, but an IP address is hardly unique nor tamper proof). But at least the UK is getting it’s own Pirate Party, which if the government crackdown continues, could gain popularity very quickly.

Onto this week’s court actions. And there’s been lots happening, all bad news of course. Real Networks, defending it’s RealDVD software which adds more DRM to existing DVDs (but you do get to play it back on your computer without the disc), has suffered the first setback as the judge extended or continued the injuction currently placed on sale of the software. It just means that a full jury verdict will have to be handed down before the future of RealDVD is settled, and that the judge saw that the MPAA had enough evidence to proceed to trial. In the same week,  there was another victory in court again innovation to protect the hardly working DVD DRM, known as CSS. The company at the center of the trial, Kaleidescape, originally won a trial that declared it’s hard-disk based DVD playback system completely legal (the system also plays DVDs without the original disc, and also adds more DRM to prevent unauthorised copying), has now lost an appeal that the DVD CCA bought forth against the original verdict. So that’s basically two products, one software and one hardware, neither of which defeats or circumvents the DVD CSS system, and I would be willing to bet that no one in their right mind has ever used to illegally copy DVDs (because RealDVD is not what people use to rip DVDs on computers, and people who can afford the multi-thousand dollar Kaleidescape system usually buy their movies) – but both may be deemed illegal just because the copyright holders don’t like innovation (or may even be coming up with their own products like managed copy, and these competitors are standing in their way).

And of course, piracy goes on, gains more popularity, while the lawyers, like the ones suing 10,000 South Koreans for sharing pirated porn, get richer. The US DOJ has also made a statement on the obscene $1.92 million damages handed down against a single mother Jammie Thomas-Rasset, saying that in their opinion, it’s perfectly constitutional. This is the same DOJ whose associate deputy attorney general was one of the lawyers representing the RIAA in Thomas-Rasset case, and loaded with many other ex-RIAA lawyers. You would at least understand the music and movie industry’s actions if they were working, but they are not, and may in fact be encouraging more people to pirates music and movies. I’ve always said the best way to combat piracy is to provide legitimate alternatives, and a recent study of UK youngsters seem to back up this opinion. The survey found that people want to pay for music, but only if it doesn’t have DRM, and is based on a subscription based “all you can eat” model, with a monthly fee and unlimited downloads (or some reasonable limits). 85% of those surveyed were willing to pay for this service, and 40% said that they would stop pirating altogether if such a service existed. And yet all we see are more lawsuits aimed at the very same people who are willing to pay, all because copyright holders are afraid of change.

In HD news, Toshiba has finally confirmed what has been rumoured for a while, that they will get into the Blu-ray business. It was also unlikely that Toshiba would not produce a Blu-ray player when their target is to gain a foothold in the home electronics market, as well as their active participation in the laptop arena. However, they also (perhaps bitterly) referred to Blu-ray as only a small part of their HD strategy, one that also covers SD (flash memory) distribution and downloads. Toshiba’s first Blu-ray players might be here this year (probably next year though), and I wouldn’t be surprised to see it have both SD playback and streaming capabilities (as well as outstanding DVD upscaling thanks to the Cell powered machines).

Not much happening in gaming, except that Sony will probably officially announce a price cut and the new PS3 Slim anytime now. Or not. But if this turns out to be a hoax, then it’s one of the best staged ones I can remember, so I’m putting my money on the rumours being real.

The PS3 Slim could be confirmed by Sony by the time you read this

If you’ve read my July 2009 NPD analysis, you’ll know how badly Sony is struggling at the moment, with the PS3 barely outselling the PS2, which itself has dropped massively in sales over the last year. While the Wii hasn’t done much better in July either, the Xbox 360 continued strong sales (or rather, not-as-weak-as-the-others sales). So a price cut, and a new SKU, may be exactly what Sony needs and while I don’t really think a new SKU is necessary considering how much more “cooler” the PS3 already is compared to the Xbox 360, the price cut if key here (and if the slim model was the only reason the price cut was possible, then you do wonder why there isn’t a Xbox 360 Slim, as Microsoft needs a cooler console, in more than one sense of the word, than Sony).

The fall in Wii sales may suggest either saturation has been reached, or that a price cut may also be needed for it to remain competitive (it is still the only console to not have had a price cut or more added features since launch).

That’s it for this week. Back to bed rest for me until I recover from this nasty infection. See you next week.

In Copyright news, the owner of Filesoup, one of the oldest torrent sites around, has been arrested. His home was raided, things left in a complete mess, he was denied a phone call or access to legal council for 7 hours, and the Filesoup website is still up and running.

The owner's may have been arrested, his home raided, but the Filesoup.com remains online

Since when did these sorts of copyright infringements, something that at worst only does monetary damage to billion dollar corporations, become such a serious offence that the police need to get involved? Are there no terrorist left to capture? No murderers to apprehend? The copyright lobby has been telling governments around the world scary bed time stories in an effort to scare them into doing things against the very principles of democracy, against the constitutions of their respective countries, and against normal legal procedure, and it’s all working. And that’s just the ones that get to court – governments at the behest of copyright agencies are still trying to bring in a 3 strike system where they can get rid of this little thing called due process entirely. But the ones that do get to court, are even more notorious, just like the recent two cases with the 6 and 7 figure damages being rewarded against defendants that probably don’t even have 6 or 7 thousand dollars in their names.

The rewards were so outrageous, that even copyright lawyers representing the content owners are not too happy at the damages being rewarded, fearing it may backfire. Content owners want to use these damage rewards to deter future infringements, but too much money and it may force the courts and the government to step in a put a limit on things, due to the public backlash. But does anyone really thing this will stop piracy? Every copyright warning message, yes including those annoying ones you can’t skip on DVDs, point out the possible consequences of piracy – a large fine and even prison time, but why do people still pirate stuff? Is it because they have no alternative, as they can’t afford it, like the cost of filling up your average iPod with purchased music? Is it because illegal downloads are easier and more user friendly, not having to go to shops to buy DVDs, and no DRM? Or as in some cases, you aren’t being allowed to purchase something until the content owners have maximised their profits through rental agreements, TV licensing, tiered releasing, and that the only alternative becomes downloads?

This is an example of an Xbox 360 mod kit. Some mod kits are the first step towards making Xbox 360's play backup games

But the law is on the side of content owners, ever since they pushed the DMCA through the US congress, on the back of fears that the digital revolution was going to bring about the end of capitalism as we know it. And the politicians believed them, even easier to do so when you have large contributions to smooth your doubts. The latest case is that of an Xbox 360 modder has been arrested and could face 10 years in prison, thanks to the DMCA. See under the DMCA, you don’t have to actually do damage to anyone to break this law. All you have to do is to circumvent copyright protection, regardless of how badly implemented the copy protection may be, or what you intend to do after copy protection has been broken. I could mod my Xbox 360, and then smash it up so that it won’t work anymore, and yet, I’ve still broken the DMCA (if I was an American, of course). Or take a more common situation, where I mod my Xbox 360 so I can play backups of my legally purchased games that the Xbox 360 keeps on scratching (through the well known design fault, or just through daily abuse). Now if I do this, then who am I hurting exactly? Not Microsoft or the game publishers, because I’m still buying games from them. In fact, the only one I may have hurt is myself as I might have just voided my warranty. And I’m actually helping Microsoft by not bringing in the console to repair the disc scratching problem. But I’ve still broken the DMCA and I could face big fines and time in prison. Some countries have laws where you’re guilty until proven innocent – the DMCA simply assumes you’re guilty in all situations.

Speaking of game consoles, Nintendo’s DS is one of the most pirate friendly consoles around, thanks to flash carts. Nintendo still makes big money from the DS though, and the DS’s popularity is probably directly linked to the ease in which you can play backup or pirated games on it. The DSi, Nintendo’s update for the DS, was supposed to address this by introducing frequently firmware updates that disables flash carts from being used. The latest version, 1.4, managed to do to almost all known flash carts, but it only took a week for the flash cart manufacturers to bring out their own firmware update that made piracy possible again. If you can play it, you can copy it (and play the copy) – that’s that conclusion I’ve come up with after many years of observing various copy protection methods. Again, it goes back to the point of how one stops piracy, and perhaps some of the things I listed above like looking at prices, release schedules, and making purchases easier, are way more effective than firmware updates. Or even putting your hands up and admitting, okay our system is pirate friendly, but that’s why it’s so popular and it’s something we have to live with.

The Australia ISP, iiNet, is still engaged in legal battle with Australia’s own MPAA/RIAA, the AFACT. iiNet is now seeking help from industry bodies to testify on its behalf that ISP in general are helpless to stop the torrent of copyright abuses that its customers are guilty of. If one takes a view that things like human rights, privacy, are important, then ISPs shouldn’t be spying on their customers on anyone’s behalf, just like phone companies shouldn’t be recording and listening in on your phone calls just to see if you’ve been saying naughty things. Now the police, through a court order, may be able to perform eavesdropping (and I see monitoring Internet usage the same as phone tapping, actually even more effective because you get a much more complete picture of a person’s activities) – private companies cannot, and no court would grant a private company the right to spy on an individual, no matter how serious the offence is (because if it is the private company petitioning the court, then it is only a civil matter, not a criminal one). So if McDonald’s can’t tap my phone to find out why I’ve stopped eating Big Macs, why should Warner Bros. get the right to monitor my downloads to see if I’ve stopped buying their movies?

Copyright rant over (is it me, or is the Copyright section getting longer and longer, and rantier and rantier?). On to HD news. Not much this week, but just some continuing trends that may concern the Blu-ray people.

On the surface, Blu-ray has a great week thanks to Watchmen. According to the sales stats, Blu-ray has its best week since The Dark Knight, again thanks to a Warner release. Part of the reasons for the good numbers may be because the PS3 special edition of the Watchmen game, which came with the Blu-ray version of the movie – I have no idea if sales of these packs were included in the stats though (the game itself did rather average business, so it may not matter). There are a couple of even bigger releases this year, including Star Trek, Transformers 2, Terminator Salvation – movies that will definitely do well on Blu-ray, not only because they were big movies at the box office, but these are exactly the types of movies to attract early adopters, HT enthusiasts, and the PS3 demography.

The Panasonic DMP-BD80K is one of the Blu-ray players getting Amazon VOD streaming

So what’s the bad news? Panasonic is going to include Amazon video-on-demand in its Blu-ray players, as part of the VieraCast service which already streams YouTube videos. Why is that somehow bad news? Well, it’s not bad news. It’s news to be concerned about, because that’s the third major Blu-ray manufacturer to include video streaming, after LG and Samsung chose to support Netflix. It’s good news for Blu-ray because players are now more fully featured and attractive to buyers. It may be bad news in the future if this video streaming thing takes off and Blu-ray becomes nothing more than a sideshow in the home theater arena. I doubt this will happen because you’ll get tons of people like me who like discs. But I also like things on demand, and a subscription service for unlimited access to a huge movie library works out to be cheaper than buying each movie individually eventually. But that’s for something to worry about in the future, because Blu-ray quality HD streaming is years away from becoming available in every home. But the movement towards video streaming is gathering pace, you cannot deny this.

While not HD specifically, Google has purchased On2, which makes several video codecs including the VP6, VP8. This is all part of the browser video wars that I brought up a few weeks ago. Nothing to concern your average net user, but developers and video enthusiasts will be interested to see if an open source video codec, like Ogg Theora, can take center stage, or will a commercially effort like H.264 win out. Google likes Ogg, and it can now use the expertise and technology purchased through the On2 deal to help out Ogg to improve quality, where H.264 is still  a better choice than Ogg. I love open source, but I also like H.264 for its quality and wide acceptance, but I don’t see how the consumer can be hurt by having a couple of alternatives, including an open source one.

Not much happening in gaming. We’re still waiting for the Sony PS3 Slim announcement, and maybe something will happen next week, or the week after, in this front.

PS2 owned the original Xbox and it was expected that the PS3 would do the same to the Xbox 360 (stats from Wikipedia)

Now when fanboys argue, they use stats. One of the stats is that Sony’s PS3, while only doing half the sale of the Xbox 360 in the US, is actually only slightly behind the 360 in worldwide numbers, thanks to strong sales in Japan and stronger sales in Europe (compared to the US). And this is all despite the PS3 being released a year later than the 360. Now this seems to suggest that the PS3 isn’t doing as badly as the media portrays (including this blog, if you can call it part of the “media”), and it will lead fans of the PS3 to say that there’s a media bias in play here. The figures are not wrong, and neither is the conclusion that the PS3 is on level terms when it comes to worldwide sales, but for this to be “good news” for Sony, it assumes one thing: that the Xbox 360 was supposed to sell on even terms with the PS3. The actual fact was that the PS3 was expected to outsell the Xbox 360 handsomely, even with the delayed release – if the PS2 versus Xbox is any indication, an 8 to 1 sales ratio wouldn’t have been a surprise. The Wii kind of made a mess of the scene, since nobody figured Nintendo was going to be in it, let alone win it, but ignore the Wii and the PS3 was still supposed to sell a lot better than the Xbox 360, with US and worldwide numbers more in line with what we are currently seeing in Japan, where the Xbox 360 struggles badly.

But this hasn’t happened. And Microsoft’s gamble of launching a faulty, less sophisticated console a year earlier seems to have paid off. If at the end of this console generation, Microsoft can claim a 1 to 2 sales ratio (that’s one Xbox 360 for every PS3 sold), then they’ve done tremendously well and made huge strides into the gaming industry, of which Sony has much more  experienced with. If the Xbox 360 can sell on level terms with the PS3, then that’s something even the most optimistic Microsoft projections wouldn’t have dared to proclaim just 3 years ago. But of course, the Wii will outsell both combined.

Okie dokie. That’s the news/rant for the week. More next week.