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Peering ahead: the Morpheus file-sharing network is under attack but StreamCast CEO Michael Weiss says it's the future of the music industry.


STREAMCAST Networks StreamCast Networks, Inc., is an American corporation, specializing in peer-to-peer software.

Formerly named MusicCity, StreamCast created Morpheus, which was one of the first major peer-to-peer applications.

StreamCast was also a defendant in the MGM v.
 Inc. develops and distributes the peer-to-peer file-sharing program A file-sharing program is used to directly or indirectly transfer files from one computer to another computer over a network (e.g. the Internet). While the term may be used to describe client-server disk sharing (also known as shared file access or disk mounting), it is more  Morpheus, which has been at the center of an ongoing debate about computer users downloading music for free. Since Morpheus was launched in 2001, it has been downloaded more than 137 million times--enough for the Recording Industry Association of America to sue StreamCast and another peer-to-peer network (1) A network of computers configured to allow certain files and folders to be shared with everyone or with selected users. Peer-to-peer networks are quite common in small offices that do not use a dedicated file server. , Grokster Inc., for copyright infringement Noun 1. copyright infringement - a violation of the rights secured by a copyright
infringement of copyright

plagiarisation, plagiarization, piracy, plagiarism - the act of plagiarizing; taking someone's words or ideas as if they were your own
. The peer-to-peer networks won in the lower court, but the case was appealed to the U.S. Supreme Court, which ruled in favor of the record industry. The decision means that peer-to-peer software providers can be sued and held liable for the copyright infringement of their users, if the companies actively encourage that infringement. Michael Weiss Michael Weiss can refer to one of several people:
  • Michael T. Weiss, actor
  • Michael Weiss, pianist, composer
  • Michael Weiss (figure skater)
  • Michael Weiss, CEO of StreamCast Networks
, chief executive of StreamCast, says that new technology should not be held responsible for those who abuse it.

Question: There are those who say that peer-to-peer systems foster the sharing of pirated music.

Answer: The same argument can be used with Mercedes. Mercedes builds these cars that can go 160 miles per hour and greater, and they sell them in the U.S. They advertise them that way. But there is no place in the U.S. where you are allowed to drive that fast. Should Mercedes be responsible for traffic violations when people break the speed limit? The basic question of this entire litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.

When a person begins a civil lawsuit, the person enters into a process called litigation.
 is: Can the manufacturer of a product be held liable for how their customers use that product?

Q: Is getting music for free a bad thing?

A: For decades, consumers have been getting music for free over the radio, and it has helped fuel record sales, build careers for performers and has helped sell lots and lots of tickets. That's a good thing. If peer-to-peer is today's radio, it could be used to give the same value that artists and copyright holders get for radio now. It's important for artists to get paid and there are all sorts of ways they can be compensated: by users purchasing a digital file, by having a digital download The perspective and/or examples in this article do not represent a world-wide view. Please [ edit] this page to improve its geographical balance.  sponsored by an advertiser, or by using peer-to-peer network as a promotional vehicle to start buzz about a specific song.

Q: What do think about iTunes? Is Apple cornering the market?

A: I wish iTunes would open up their format to other portable media players. I think iTunes is serving Apple well in helping sell iPods, but the majority of all the profits are driven by iPod sales, not music sales.

Q: How do you compete with them or with free sites?

A: Today, we make money off of the free Morpheus version through advertising. But we also sell the premium version of Morpheus for $19.95 right there next to our free version. The difference between the two is basically that you don't get advertising with the premium version. And we sell a lot of those--so yes, you can compete with free. All the independent research says you can.

Q: StreamCast is now offering a pay option, the Morpheus Wallet. Why did you wait until now?

A: The record companies have tried to block us, even with the wallet partner that we have. We had another company in place a year ago that was forced to retreat from our deal because they were basically threatened. Record companies said, "if you do a deal with Morpheus, you're never gong gong, percussion instrument consisting of a disk, usually with upturned edges, 3 ft (91 cm) or more in diameter in the modern orchestra, often made of bronze, and struck with a felt- or leather-covered mallet or drumstick.  to do a deal with us."

Q: What's going on What's Going On is a record by American soul singer Marvin Gaye. Released on May 21, 1971 (see 1971 in music), What's Going On reflected the beginning of a new trend in soul music.  with the Supreme Court ruling?

A: The Supreme Court sent the case back to the lower court to start from the beginning to see if there was "inducement"--to see if this company tried to induce or encourage its users to break the law. We just filed our motions on Oct. 3, and we'll have our first judgment on Nov. 7.

Q: What would be the worst-case scenario worst-case scenario nSchlimmstfallszenario nt  for your company?

A: The worst case is if the plaintiffs come in and say, "the Supreme Court clearly thinks this is wrong, we shouldn't have to go through with this trial." If the judge decides we shouldn't have our day in court, he could shut us down. But whoever loses I guarantee will be appealing to the 9th Circuit Court of Appeals, and whoever loses that one I guarantee you will appeal back up to the Supreme Court.

Q: So this could go on for months?

A: Absolutely. It could take years.

Q: How did you get into this messy business?

A: I was always involved in the movies and entertainment space. My background is in video--I opened the third video store in the world back in 1978 in Chicago. We were selling videos for $80 or $90, and we had customers coming in and asking just to rent the movie for the night, saying "we want to see this movie, but we don't really want to buy it--can't you just rent it to us?" It started happening to other retailers, and the movie industry tried to fight it. We fought them and we won.

Q: What do video rentals have to do with music downloading and peer-to-peer networks?

A: The entertainment industry has always tried to stop new technology. And when they can't stop it they try to control it--they go to Congress to change laws, for example. Then, they try to co-opt the technology and they'll make more money then they ever have before.

Q: So where does Morpheus come in?

A: We still believe you can turn downloaders into consumers. Every piece of independent research that comes up says the same thing. In March, Forbes came out with a story that said 70 percent of the people who buy music on digital music stores do so because they first hear the music on a peer-to-peer network. So I'm saying we need to give those users the option to make that purchase. If you don't give them the option at all, what are they going to do? They're going to take.

Q: Do you really think Morpheus customers will start paying for things?

A: You will still have public peer-to-peer, we can't stop that. But on top of it, we will have the premium service to pay for things. The question is if you have free and if you have paid, will anybody pay? And the answer is yes, yes, yes. If I were a content provider, I'd go back into my history of the home video business. When the studios finally got behind the home video rentals, the industry skyrocketed.

Q: If the Supreme Court hadn't ruled against peer to peer, do you think you'd be offering a paid version?

A: Absolutely. We'd be up by now with users paying for content. Before the Supreme Court decided to take the lawsuit, we were talking to Noun 1. talking to - a lengthy rebuke; "a good lecture was my father's idea of discipline"; "the teacher gave him a talking to"
lecture, speech

rebuke, reprehension, reprimand, reproof, reproval - an act or expression of criticism and censure; "he had to
 three of the major record labels and I think we would have had one or two of those deals. But when the Supreme Court took the case, everything went dead because nobody wanted to tarnish tarnish,
n 1. surface discoloration or loss of luster by metals. Under oral conditions, it often results from hard and soft deposits.
2. a chemical process by which a metal surface is discolored or its luster destroyed.
 the potential outcome of the case by proving this could work. I still say to the industry: We are not the enemy.

Q: Where do you see music and movie sales in five years?

A: We're seeing the rise of peer-to-peer networks, of media developed by ordinary people--podcasts, blogging. All of this is giving more and more choices to users. We want to give more choices - we're trying to be the Google of peer-to-peer. That's where the growth is. Five years from now, peer-to-peer will be four or five times what it is today. Hopefully by then the entertainment industry will co-opt it.

Q: And if the major record labels keep fighting you?

A: The independent music industry is 28 percent of the worldwide market in terms of sales Terms of sale

Conditions under which a firm proposes to sell its goods or services for cash or credit.
. All the independents are embracing peer-to-peer. Even if the majors don't come on board, I think there will be a robust future.

Q: Who is your main competition?

A: Our competition is not iTunes. Our competition is MySpace. That's where we're going. We're going to put a MySpace-type program in an application, call it Morpheus, and distribute it--and it's going to be much more efficient because our technology is better.

Michael Weiss

Title: Chief Executive

Company: StreamCast Networks Inc.

Bore: Chicago, 1952

Education: No degree earned. Attended University of Miami This article is about the university in Coral Gables, Florida. For the university in Oxford, Ohio, see Miami University.

The University of Miami (also known as Miami of Florida,[2] UM,[3] or just The U
 and Columbia College Columbia College: see Columbia University.  in Chicago.

Career Turning Point: As a test marketer for @Home, he was one of the first people to have high-speed cable modem cable modem

Modem used to convert analog data signals to digital form and vise versa, for transmission or receipt over cable television lines, especially for connecting to the Internet.
 Internet access See how to access the Internet.  installed in his house

Most Admired People: Larry Finley Larry Finley (May 14 1913 - April 3 2000) was a late night broadcast pioneer as well a leader in the audiotape and videotape business.

Born and raised in Syracuse, New York, he became a nightclub manager in his hometown at age 18 before moving to Los Angeles in the 1930s and
, former KTLA-TV newsman (called the "grandfather of home video"); Jim Jimmiro, founder and first president of the Disney Channel Editing of this page by unregistered or newly registered users is currently disabled due to vandalism.  and Disney Home Video ("toughest boss I ever worked for")

Hobbles: Golf, ghost-hunting with his daughter, coastal drives in the convertible, movies, music

Personal: Married, 3 children, 2 grandchildren GRANDCHILDREN, domestic relations. The children of one's children. Sometimes these may claim bequests given in a will to children, though in general they can make no such claim. 6 Co. 16.  
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Article Details
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Author:Potkewitz, Hilary
Publication:Los Angeles Business Journal
Article Type:Interview
Geographic Code:1USA
Date:Oct 17, 2005
Words:1463
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