Have yourself a legal little Christmas.

It’s official. Rage Against the Machine’s ‘Killing in the Name’ is this year’s Christmas No 1. Yes, the poster boys for the nation’s online backlash against the X-Factor join a distinguished roll call of festive chart toppers that includes the likes of Rolf Harris, Bob the Builder and Mr Blobby. Yet the cacaphony of groans and dropping jaws coming from Cowell Mansions will have to go some to drown out the general wailing and gnashing of teeth currently emanating from the music industry. No prizes for guessing the cause of the fuss.

For while our taste in music has only marginally progressed (although Mr Blobby may beg to differ), the way we consume the stuff certainly has. And not just at Christmas. At least seven million of us regularly acquire music tracks through illegal downloading or filesharing. This, claims music bosses is costing the industry millions of pounds every year and more to the point is depriving artists of their rightful livelyhood. And the government agrees. Peter Mandelson’s Digital Economy Bill, about to become law in April, will demand that ISPs cut broadband connections to regular offenders – on a three strikes and you’re out basis.

But not everyone in the industry has joined the protectionist bandwagon. The Featured Artists Coalition which boasts Robbie Williams, Annie Lennox and Billy Bragg as members, has come out strongly against any move towards criminalising music fans. As Bragg says: “it’s like trying to put toothpaste back in the tube”. With counter claims from other artists, leading to a very public internet spat between Lily Allen and Joss Stone, intellectual property has suddenly become the juicy topic of the day. Who’d have thought it?

Just to throw a bit of extra spice into the argument, a recent study has shown that illegal downloaders spend more on music than anyone else; an average of £77 a year; £33 more than those who claim to always download legally. And many experts insist that the industry exaggerates the financial losses due to filesharing. They also argue that downloaders deprived of their internet connection will not necessarily make up the difference – particularly with the gaming and DVD industries competing for their business.

In the end, as it so often does, the market may find its own solution. There’s recently been an explosion of new companies offering tracks free, legally and without the risk of viruses and bogus tracks that come with peer-to-peer sites. Spotify and We7 alone have gained at least 5 million new users in their first year. Music fans can listen for free if they accept advertising, or commercial free if they take out a monthly subscription. And they’re mostly ‘reformed’ illegal filesharers, looking for an easier and legal way to listen to the music they love. Ironically but perhaps predictably this business model has not emerged from within the music industry, which seems far too busy protecting the old world to embrace the new.

Who knows? Peter Mandelson’s big stick may get those habitual criminals to go straight. They may start spending their money exactly the way music bosses want them to. With 2009 being the most successful in the UK’s history for single sales – with Christmas sales still to come – the industry is hardly on its last legs. Whatever happens, you can bet Mr Cowell won’t be losing any sleep. After all, there are only so many tight black t-shirts a guy needs!



For further information please contact Paula Morris. T: 029 2047 4401 E: p.morris@capitallaw.co.uk

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