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mdisanto
* Dog in the Sand *
USA
1140 Posts |
 Posted - 05/25/2004 : 16:14:51
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http://arstechnica.com/news/posts/1085512916.html
Clear Channel scoops up live CD patent
Posted 05/25/2004 @ 2:21 PM, by Eric Bangeman
Early this month, we reported on the growing phenomenon of bands selling CDs or even uploads onto USB flash drives of concert recordings right after the concert would end. One company (DiscLive) estimated that it would gross up to US$500,000 during this Spring from selling live CDs. The fans are happy, the bands are happy, everyone is happy. Unfortunately, in a move that will put the brakes on an emerging industry, Clear Channel has purchased the patent from the inventors of the technology and is asserting that it is the only entity that can sell concert CDs right after gigs.
"We want to be artist-friendly," says Steve Simon, a Clear Channel executive vice president and the director of Instant Live. "But it is a business, and it's not going to be 'we have the patent, now everybody can use it for free.'"
Of course not, especially when patent enforcement has become a potentially lucrative source of revenue. It matters little if the patent makes any sort of sense or should even have been granted in the first place. It looks as though Clear Channel is looking to use this patent to get in on the post-concert recording action in a big way. While they have allowed some bands to license the technology for a dollar, other groups are starting to see the squeeze. The Pixies, who are planning a Fall reunion tour, have discovered that DiscLive will not be able to sell recordings after their concerts at Clear Channel venues.
"Presuming Clear Channel's service and product are of equal quality, it may be best to feed the dragon rather than draw swords," says Pixies manager Ken Goes. "Still, I'm not fond of doing business with my arm twisted behind my back."
That sentiment may very well carry over throughout the industry. With the threat of Clear Channel wielding the +5 Mace of Patent Enforcement, would-be competitors may very well choose to exit the market all together.
-miked |
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