Music

Campus Blotter: Computer Geek Dorin Dehelean Arrested for Blackmailing Student

​This week in Campus Blotter: It’s been two years since the music industry ended its crackdown on kids who steal music online. But for computer geek Dorin Dehelean, the thrill of the hunt was still way too irresistible…

The 37-year-old security analyst at the University of Georgia was arrested earlier this month for allegedly blackmailing a student who had downloaded copyrighted music on a campus computer.

Rather than report the incident to university officials, as he was paid to do, Dehelean called the student on January 25 to let her know that she had been caught. He then kindly offered to make the problem go away in exchange for a modest gratuity.

The student responded that she didn’t have the money, then she ratted him out. An undercover cop posed as the student to complete the transaction, and Dehelean was nabbed as soon as he accepted the dough.

UGA police believe other students were likely victimized by Dehelean’s scam, though they may be afraid to come forward out of fear of punishment for their illegal downloading.

But doing so would appear not to be a problem: The Recording Industry Association of America ceased its war against campus piracy in 2008, leaving jurisdiction in the hands of each university. At Georgia, first offenses are punishable with a friendly warning, while subsequent infractions result in no more than a ban from campus computers — and even those sanctions will be lifted for anyone who can help the investigation.

It appears school policy against dickheads who blackmail students is somewhat less forgiving: Dehelean was fired immediately upon arrest. He’s been charged with felony extortion, which could land him up to 10 years behind bars.

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Pirates Are The Music Industry’s Most Valuable Customers

Have you ever heard one of the major movie studios complaining about the decrease in sales of VHS tapes? We haven’t. The music industry on the other hand continues to blame the decrease in physical sales on digital piracy, ignoring the fact that there’s a generation growing up that has never owned a physical CD.

Yesterday the music industry lobby group IFPI presented its 2009 figures, again putting the blame for decreased physical sales on file-sharers. Unfortunately, most mainstream media outlets simply reposted the IFPI press release and their flawed analysis. In general, no effort is made to actually balance out or check the message being sent out to millions of readers.

In their annual Digital Music Report, IFPI states that file-sharers are half as likely to buy physical CDs than the average music buyer. Although the report is about digital music, they carefully avoid saying anything about file-sharers and digital sales. That would actually show a completely different picture as we will explain below.

The music group made this statement based on an IFPI-commissioned study that was executed by Jupiter research. Although IFPI refused to share the entire research report with TorrentFreak, we can conclude the following from the two pages that were published online.

Compared to music buyers, music sharers (pirates) are…

* 31% more likely to buy single tracks online.
* 33% more likely to buy music albums online.
* 100% more likely to pay for music subscription services.
* 60% more likely to pay for music on mobile phone.

These figures (as reported by the music industry) clearly show that file-sharers buy more digital music than the average music buyer. In fact, the group that makes up the music buyers category actually includes the buying file-sharers, so the difference between music sharers and non-sharing music buyers would be even more pronounced.

How can this be true and why was there no mention of this in the Digital Music Report? They must be spending less on digital music then, right? But again, this is not the case at all. On average, file-sharers actually spend more than non-sharing music buyers. At least that’s what Mark Mulligan, Vice President and Research Director at Forrester Research who conducted the study for IFPI told us.

Mulligan has his hands tied and couldn’t say much about the findings without IFPI’s approval, but we managed to get confirmation that paying file-sharers are the music industry’s best customers. “A significant share of music buyers are file sharers also. These music buyers tend to be higher spending music buyers,” Mulligan told TorrentFreak.

So why do file-sharers download music without paying? According to the annual IFPI report, one of the main reasons people share music is because it’s free. This leads the music industry group to conclude that they are cheapskates and not willing to pay for music at all. But, as the above clearly shows, they are misinterpreting this finding, and we’d like to explain why.

In the digital age, people’s demand for music has changed significantly, but their budgets are still limited. The average file-sharer is currently spending $100 a year on music according to IFPI’s own research, not really a group that can be classified as freeloaders. However, their demand for music simply exceeds their budget and that’s where they start downloading music on file-sharing sites, because it’s free.

Just to be clear on our motivation to balance the ‘facts’ as reported by IFPI. We are not advocating that all music should be free and neither do most of the music lovers who share files online. However, the music industry continues to ignore that file-sharing is much more of a signal from the market that it is the increased demand for music that fuels piracy.

The solution to the problem is relatively easy. Start offering more unlimited and unrestricted music services and piracy will go into a free-fall. File-sharers are already paying for digital music, and they pay more than the average music consumer. File-sharing is simply a market signal showing that there is a need to compensate for the lack of high quality and affordable subscription services.

If anything, the music industry should have more respect for file-sharers, as they are their most valuable consumers. They are ahead of the curve and actually leading the way for the future of digital music, buying more digital music than anyone else. It’s the music industry that has to change, not the other way around.

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Record Label Stops Signing Artists Because of Piracy

Let’s be clear from the start. People who share music on the Internet actually buy more than those who don’t. The music library of the average music fan may have expanded a bit in the last decade thanks to file-sharing, but in the same time the number of sales have also skyrocketed.

Despite this, there will also be labels that perform badly for unrelated reasons. How convenient is it then, to blame evil file-sharers for your disappointing results. The Finnish hard rock label Lion Music is doing just that, with rather dramatic consequences.

Because of all the stealing and looting by Internet pirates, the label has decided not to sign any new acts until politicians have found a remedy.

“We are NOT able to sign more artists. No demos or masters you send us will be considered for release. We will NOT listen to any mp3 files or check out your websites and we will NOT respond to questions regarding releasing your album,” the label’s bosses write on their website.

“The illegal file sharing on the net is killing independent music. We are sorry about this situation but we are sure you are aware of what is going on,” the dramatic rant continues.

“Our demo policy will not change before our politicians have stopped the P2P sites. Illegal file sharing is not just about stealing from rich major companies. It is about killing independent music and making it impossible for many great musicians to have a chance to release albums and have a musical career even as a part time job.”

“Next time you consider downloading an album for free or adding new torrents please think of the impact you are having on the artists – would you like it if we came into your home and stole your pay check?”

The label’s bosses then go on to show various statistics of how many times the albums of their artists were pirated though an unnamed BitTorrent site, arguing that these downloads are responsible for their disappointing results.

To add to the drama the label has asked their musicians to write up their thoughts on piracy in a section called “The Murder of Music.”

One of the artists that penned up his thoughts on piracy is guitar hero Borislav Mitic. Mitic is just as gentle in his commentary as the label’s bosses.

“Just because you CAN download music for free today on the Internet doesn’t mean you SHOULD,” he writes. “You CAN also beat up an old lady on the street and steal her pension from her wallet … but somebody CAN beat you up too and do the same to you. Would you like this?”

According to Borislav, illegal downloading will lead to a “society of filthy, wild savages.” To those people who dare to continue stealing through BitTorrent sites he adds, “the blood will be on your hands…”

Those who have the courage to read the rest of the artist entries will be amazed at the hostile tone towards the readers, who they assume are pirates.

Don’t get us wrong. Despite research that points in the opposite direction, it could be that piracy is hurting the sales of Lion Music. But even if this was true, their way of bringing the message across is not going to help their cause, it will only alienate the fans.

A label taking completely the opposite stance, embracing both file-sharing and their fans, is Thorny Bleeder Records, who have just released the second volume of their free download series. Entitled Get Thorny 2, the album features new music from seventeen independent Canadian artists. (link to torrent on Mininova)

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