Now Who's Intellectual Property Vandal?

The Rio case might furnish Israel with fresh arguments against "one disk country" accusations. It certainly makes necessary a reappraisal of the protection afforded to creativity.

Officials at the Ministry of Justice in Jerusalem are suppressing a smile and preparing fresh arguments for the next meeting with US representatives. The latter, on behalf of the US entertainment music industry, have been complaining, for the past four to five years, of blatant copyright infringement in Israel, and fitting us up for a high rating on the list of copyright infringing nations. What appears to be the most forceful argument was advanced by a federal court in San Francisco, which ruled against record companies alleging copyright infringement on the Internet network, by means of the magic "Rio" tool, for downloading digital quality music from the Internet.

The Israelis counter the Americans with a simple argument: if your court lends a hand to what seems to be so severe an infringement of copyright and intellectual property, then who are you to complain of CD pirates at Tel-Aviv's old central bus station?

The US court ruled, in that case, that legislation forbidding pirate music had not been violated, as the law does not relate specifically to music found in a cumulative state on a computer file. The court also praised the "Rio" for making personal use easier and simpler. Arguably, the "Rio" does not, in itself, differ fundamentally from a tape-recorder or a video cassette. But that is only partly true, since the Internet is a totally different degree of the same problem.

Record companies are horrified at what they perceive as the approaching demise of music stores and the entire related industry. They allege, briefly and simply, that "Pirates the world over will now start celebrating". Organisations such as Israel's AKUM (Society of Authors, Composers and Music Publishers in Israel) are also worried. The essence of their being is monitoring and awarding scholarships to creative talent.

Many artistes, on the other hand, are exulting. This may simply be due to resentment at the share the music companies take for themselves, or it may be that they perceive the Internet, possibly even from an ideological point of view, as a medium for doing away with unnecessary middlemen between the creative artist and his or her public.

The first solutions advanced by experts in recent days are of a technical nature. For example, encoding the composition in such a way as to render it immune to copying. Of itself, this very ruling may lend a strong impetus to high-tech industry's information security sector. It doesn't seem to be much of a solution though. A code that a thirty-year-old engineer develops today will be cracked by some sixteen-year-old tomorrow.

The ruling is significant in that it holds up for the world's consideration the issue of intellectual property. Fundamental to any humanistic and liberal approach is a deep-seated recognition of the individual's title to his intellectual property. It acknowledges that a human being stands before his Creator with nothing but his intellectual property. It holds that creativity is what makes the world go round. It seems odd to think, these days, that the social flag under which the communist regimes deprecated intellectual property, is now giving way to the global-digital flag.

There is nothing for it but to rethink, and arrive at some reasonable, just and enforceable means of upholding copyright and intellectual property in what the American judges referred to as "the brave new world of the Internet".

The story is not without a smidgen of irony. The dozens of young, new Internet industry millionaires got that way by being able to realise that same spark of creativity. Yet they are the ones who are posing, for people of a different creative persuasion, the biggest headache since the gramophone turntable spun for the first time. The Internet, one might say, has turned on its maker.

Published by Israel's Business Arena June 17, 1999

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