Case Study 1 - Question 3

Case Study 1 - Question 3

It is often difficult for old, established industries to change business practices. How can this be observed in the impact of the digital music boon (MP3 file sharing) on record companies and their traditional methods of music distribution?
In recent years, music lovers have discovered vast access to free music on the Internet. This includes not only free listening, but also free downloading of their favorite songs and free copying of choice music. Companies such as Napster gained almost instant notoriety because they provided users with the ability to trade or share copies of sound recordings through centralized file sharing. However, the Internet file sharing of often-unlicensed sound recordings has many in the music industry seeing red. According to the copyright holders of these sound recordings, file-sharing services, such as Napster, are promoting widespread "piracy."
Music copyright owners, joined by the record labels and others in the music industry, have understandably stormed our courts with claims of copyright infringement, demanding compensation for the delivery of downloaded music from the Internet. Copyright is a specific intellectual property right protected by the United States Constitution. Article I, section 8 empowers Congress to protect authors and inventors against unauthorized use of their copyrighted works by others. Such copyright protection extends to copyright holders in the music industry (songwriters, music publishers, and record companies) from the infringing use of their works by others.
The Constitution grants to Congress the authority to protect copyrights as a property right through Article I and the Fifth Amendment. Compulsory licensing of music on the Internet may seem like a convenient way of providing public access to music, while providing compensation to copyright holders, but this destroys the copyright holder’s right to control his property. Congress should continue to protect property rights such as copyright and allow the music copyright holders the freedom to continue to negotiate terms for others to use their property.

Reference:
Laurie Messerly (2000): "Taking" Away Music Copyrights:
Does Compulsory Licensing of Music on the Internet Violate the Fifth Amendment’s Takings Clause?
Available at: http://www.cfif.org/htdocs/freedomline/current/guest_commentary/free_line_copyright.htm/