Study shows figures for net piracy on the rise

by Simon Avery
Workopolis.com
Jun 25, 2004


The recording industry's effort to quell on-line music swapping through legal action chilled download activity for a short while, but Canada's youth have become almost as bold as ever in pulling music off the Web without paying, a market study shows.

Late last year, after the Recording Industry Association of America sued thousands of music downloaders for copyright infringement, the amount of Canadian teenagers swapping music on-line dropped to 40 per cent from 60 per cent.

This spring, however, activity has surged, with 51 per cent of 12- to 19-year-olds downloading music without paying for it, according to Solutions Research Group, a Toronto-based market research firm.

The recording industry's legal assault appeared to have even less of an effect on adult Canadians between the ages of 20 and 29, with 28 per cent of them taking music files off the Web this spring, down only slightly from a peak of 31 per cent in early 2003, according to Solutions Research.

"Free downloads are too hard to resist, despite greater awareness of intellectual property issues surrounding music," said Kaan Yigit, the director of the study.

Numerous companies have launched websites in recent months that sell music downloads and compensate the artists and recording studios.

Sites such as Roxio Inc.'s Napster.ca and Moon Taxi Media Inc.'s Puretracks have grabbed their fair share of publicity with their Canadian debuts.

Puretracks has just expanded its reach with a distribution deal with Best Buy Co.'s Future Shop. In addition, Apple Computer Inc., of Cuppertino, Calif., is expected to bring its successful iTunes music site to Canada shortly.

Surprisingly, however, only 8 per cent of Canadians have ever visited a paid download website, and four out of every five visits were simply to browse, not to buy, Solutions Research found in its telephone survey of 1,605 Canadians last month.

Legal activity in the United States has had some effect on Canadian teenagers and young adults.

Among 12- to 29-year-olds, 42 per cent agreed that downloading songs off the Internet is theft, up from 35 per cent a year earlier, Solutions Research said.

"The more awareness you can get that it is illegal, the healthier it is. It's not necessarily immediately solving a problem, but it's got to help," said Brian Robertson, president of the Canadian Recording Industry Association. "There's an awareness that it's just not there for the taking."

However, Mr. Robertson said a ruling by the Federal Court of Canada in March, which said sharing music files doesn't constitute copyright infringement, has not helped public perception.

Among other things, the ruling, by Mr. Justice Konrad von Finckenstein, said the CRIA cannot get Internet service providers to turn over names of individuals alleged to be downloading music. The CRIA is appealing the verdict.

"The threats of litigation do have some effect," Mr. Robertson said.



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