The Non-Controversy: No, Wikipedia Authors Should Not Get Paid

from the manufacturing-controversy dept

Let's say that I sold you a piece of land, and you then built a nice house on that land, and then you sold the property for a lot more money. Would anyone think that it was reasonable for me to then show up and demand a piece of the profits? Of course not. Yet when that scenario is tweaked just slightly into the digital realm and using $0 as the original price, suddenly people start getting things backwards. A few months back, for example, there was the situation with Billy Bragg complaining about the fact that musicians who chose to put their music on Bebo didn't get any of the AOL buyout money. But that was perfectly reasonable, because the musicians made a fair trade initially: they gave their music, they got publicity. Asking for money after the fact is no different then me trying to renegotiate my land sale after you made the land more valuable and resold it.

Now we're seeing yet another such case. Ethan Bauley writes in to point to an article suggesting that somehow Wikipedia authors are being ripped off because Bertelsmann is going to publish a paper version of Wikipedia for profit. But, again, it's the same thing. People who contribute to Wikipedia clearly felt that giving their labor away for free was a fair transaction. Bertelsmann is now trying to make Wikipedia valuable to a different audience by putting it into book form. They're taking on the risk of printing the book (building the house), and to have the various writers go back later and demand payment is equally as ridiculous. Luckily, it seems like most people recognize this -- and many comments on the ReadWriteWeb article point this out. It's just a few agitators, who apparently want to change the terms after the fact, who are having trouble getting this.

Filed Under: fair deals, renegotiation, volunteer, wikipedia
Companies: bertelsmann, wikipedia

Bertelsmann Agrees To Pay One More Time To Finally Settle All Of Napster's Mistargeted Lawsuits

from the bad-precedents dept

It never made sense that the various record labels and music publishers sued record label Bertelsmann for the Napster affair. Yes, it's true that Bertelsmann was the only major record label to view Napster as an opportunity rather than a threat. And it's true that Bertelsmann invested quite a bit of money into Napster. But, the other record labels' misguided complaint was with Napster -- not with Bertelsmann. The problem was that after winning the original Napster lawsuit, the other record labels realized that Napster had no money. So they sued Bertelsmann instead, for being the only record label with forward-thinking management to invest in Napster. However, it makes no sense to put any kind of liability on investors in a company. Otherwise, it would make life quite difficult for any investor today -- who could then be sued for the actions of the company he or she invested in. It would greatly increase the liability for retail investors as well as institutional investors. It's for that reason that it would have been nice to see Bertelsmann fight this case and win it.

Unfortunately, before the case had a chance to get anywhere, Universal Music (who was the first to sue Bertelsmann) bought Bertelsmann. Then, rather than sue itself, the company quickly settled that portion of the lawsuit and proceeded to settle the other portions as well, with the final part of the case finally settling late last week. Bertelsmann eventually had to pay out approximately $300 million in all of these "settlements," which is a real shame since all the company did was invest in a service that its executives (who were soon fired) realized could have revolutionized the music business. While these are all settlements, meaning that there's no court precedent, this could still encourage companies to sue investors in companies rather than the companies themselves. Venture capitalists and private equity firms might want to take note.

Filed Under: copyright, investors, liability
Companies: bertelsmann, napster, universal