[FS-UK-announce] Press Release: EMI TRIES TO GAG RETAILERS OVER COPY PROTECTED CDS

[Julian T J Midgley]

For Immediate Release
8 April 2003

Press Contacts: Jim Peters     <jsp@ukcdr.org>  +44 (0)121 449 6718
                Julian Midgley <jtjm@ukcdr.org> +44 (0)7713 166000

EMI TRIES TO GAG RETAILERS OVER COPY PROTECTED CDS

The Campaign for Digital Rights has discovered that EMI and other
record companies are using their market position to stop online
retailers telling customers which CDs use "copy-protection" or
"copy-control" technology. These discs don't play in many computers
and CD players, and in some cases have caused permanent and expensive
damage.

We bought a copy of Placebo's "Sleeping with Ghosts" from online
retailer CD-WOW. It arrived with a notice which stated in part that
"Neither the CD manufacturer nor the CD distributor however makes any
representation or warranty with respect to the nature and
compatibility of such copy control technology with any audio-visual
devices or equipment and shall not be held liable for any loss or
damage arising from the use thereof with such devices or equipment."
In English, that means that EMI don't care whether the CD works at
all. In the same notice, EMI tries to deny purchasers a refund if
their product doesn't work -- despite consumer rights under the Sale
of Goods Act.

This album was not labelled as copy-protected on the CD-WOW
site. Asked to comment, they told us that:

 "The copy control technology would indeed seem to be something that
  Record Companies (and EMI) in particular, plan to use more in the
  future.

  Even though they have now conceded to label their discs accordingly,
  they are not eager for us to advertise such a thing on our site. We
  have been consulting them over this again more recently however, and
  we are hopeful that we will be able to make this clear to customers
  in the future."

This pressure from EMI is anti-competitive. Copy-controlled CDs won't
play in all players, and are therefore of less value than normal
CDs. In a competitive environment, prices would adjust to take account
of this, but by keeping customers in the dark, the record companies
hope to keep selling inferior merchandise at a higher price. By adding
a forceful disclaimer, which the buyer sees only after they've paid
for the CD, EMI is trying to sidestep the issue entirely.

In the face of these tactics, we are redoubling our efforts to protect
consumer interests. We have created a new website as part of our CD
campaign to keep a check on retailer policies and on how well they are
performing:

    http://ukcdr.org/issues/cd/retail/

Retailers answer to their customers, and record companies must be
forced to answer to both retailer and customer and take full
responsibility for the problems that their inferior products
create. CD "copy-protection" has created difficulties for consumers
since its introduction with little benefit for record companies, and
we call on EMI, BMG and the other industry players still using this
technology to completely abandon it in their current and future CD
releases.

Until that time, consumers must be provided with full information on
the copy-control technology in use on an item before the sale is made,
whether this be online, in a printed advert, or in a shop. Anything
less is a flagrant neglect of consumer rights.


For more detailed information on all of these points, see the article
'UKCDR calls for EMI to abandon flawed "Copy-Control" CD technology',
published here:

  http://ukcdr.org/issues/cd/docs/20030407.shtml

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REFERENCES:

A full report on these issues is at:

    http://ukcdr.org/issues/cd/docs/20030407.shtml

An overview of problems caused by "copy-protected" CDs is at:

    http://ukcdr.org/issues/cd/bad/

In one case, a UK-released Key2Audio album permanently locked up
iMacs, requiring dealer attention to repair the machines. In other
cases, hi-fi players have failed permanently, apparently because of
extra wear caused by the discs:

    http://docs.info.apple.com/article.html?artnum=106882
    http://ukcdr.org/issues/cd/docs/celdion.shtml
    http://ukcdr.org/issues/cd/quick/


A copy of this press release may be found at:

   http://ukcdr.org/files/press-releases/20030408_emi_gags_retailers.txt

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The Campaign for Digital Rights is an organisation that campaigns for
fair and balanced laws for the information society.  We fight for
freedom of speech online, positive fair use rights for copyrighted
material and for consumer rights in the digital age.  For more
information, please contact us or see our website: http://ukcdr.org/

-- 
Julian T. J. Midgley                         | http://ukcdr.org/
                                             | jtjm@ukcdr.org
UK Campaign for Digital Rights               | Mobile: 07713 166000
Cambridge, England.                          | PGP Key ID: 0xBCC7863F