One of the oddities concerning the Megaupload shutdown and indictment was the fact that the company had named famed producer (and husband to recording star Alicia Keys) Swizz Beatz as CEO just a few months prior. Beatz is extremely well known in the industry, and widely respected. After the shut down artists like Diddy and Busta Rhymes immediately spoke out in support of both Megaupload and Beatz. Beatz wasn't named in the lawsuit, but recent filings in the case have the US Justice Department noting that Beatz has not been cooperative with their lawsuit, suggesting he may get dragged unwillingly into the fight.
We wrote about an interview with him a few months ago, where he talked about how greed from the labels explained their unwillingness to embrace new technology. In a new interview, as pointed out by TorrentFreak, Beatz is going even further and defending Megaupload. He touches on a variety of issues, but notes that the company was offering a system (not unlike BitTorrent's new offering) whereby artists could offer their work for free, paid for by ads... with 90% of the money going to the artist (more or less the flipped ratio of a traditional record deal).
He repeatedly notes how many friends he has in the music world, and how it would be ridiculous for him to piss them all off by "robbing" from them. Some have raised questions about Beatz's claims -- and he's mostly refused to give any specifics while the lawsuit is ongoing -- but no one can deny his widespread influence and respect in the industry. Furthermore, he highlights the new business models and how they represent an opportunity.
Swizz Beatz, one of the most well-known, well-respected music producers around -- who was very briefly listed as the CEO of Megaupload right before it was shut down by the US government -- was just interviewed on MTV about Megaupload, technology, file sharing and music and made a bunch of good points. When asked why the industry has been so slow to adopt what technology enables, and specifically about file sharing, which the interviewer notes is "so important in hip hop," he sums it up simply: it's all about greed by the labels.
I think the only reason why people wouldn't embrace technology is because of greed. And because of the old way of doing business, which is also greed. And then you have people running the business -- no disrespect -- that's 80 years plus. They don't even know how to operate an iPad, and they're making decisions on the younger generation's future.
And my association with forward thinking technology is very deep. And it came up a little bit with Megaupload -- which still, today, is a big misunderstanding of technology. And the day that you mix the old business with the new technology, we'll have a better place. It's actually going to be a time when artists can come out and do 10 million records their first week. Because the technology is going to be so locked in tight globally. You have billions of people, all over the world. Why can't artists that everybody likes do 10 million a week? It's just that the communication and the technology and the old way of doing business is off. But once that catches up, which is going to happen in the next three years, it's going to be amazing.
And the cool thing is that technology equals freedom for the artist. And that's the best thing that could ever happen for artists that work hard and that really want to get their career off the ground.
He's then asked a bit about "piracy" and actually getting people to buy, and he notes that if you make good music, people will support you. He says the problem is that people have gotten away from making good music. But when there is good music, people want to support "great music." He notes that people have no problem paying for those "timeless pieces," because they know they're supporting the artists. It's just that when musicians today are "bluffing," the public knows it, and isn't so interested in supporting it.
It's a good interview, and it's good to see more people -- especially in the hip hop world -- speaking out about this, rather than merely accepting the lines from the 80 year old execs at the music labels.
Update: Apparently, Swizz is feeling talkative these days. He also did a nice longer interview on a radio show where he talks a bit more about all of this, again saying that the Megaupload situation was a misunderstanding -- and talked about how he had figured out a way for musicians to make "wow money" but it won't happen now because of the "miscommunication" that has the US government making it look like they were breaking the law.
If you've been paying attention to the MPAA/US Chamber of Commerce/RIAA claims about why they need PIPA/SOPA, a key argument is that they need it to go after these "foreign rogue sites" that cannot be reached under existing US law. Among the most prominent sites often talked about is Megaupload -- which accounts for a huge percentage of the "rogue site traffic" that the US Chamber of Commerce and other bill supporters love to cite. However, it certainly appears that the US Justice Department and ICE don't think they need any new law to go after people in foreign countries over claims of criminal copyright infringement. As lots of folks are currently digesting, the Justice Department, along with ICE, have shut down the site and arrested many of the principles (with the help of New Zealand law enforcement) and charged them with massive amounts of criminal copyright infringement.
Of course, just last week, we had noted that Megaupload was immune from SOPA/PIPA because it doesn't apply to dot coms -- but this is still interesting and crazy for a whole variety of reasons:
ICE and DOJ have a pretty freaking dreadful record so far in bringing these kinds of cases for online copyright infringement. It's kind of amazing that they did this so soon after they totally screwed up and had to give back Dajaz1 (without an apology, by the way). Megaupload may be a different type of site... but, still...
Similar cyberlockers, like RapidShare, have already been declared legal in both Europe and the US. I don't know the details of Megaupload's situation -- and certainly its founder has a... um... colorful history... but it seems pretty extreme to totally shut down the site prior to any adversarial hearing.
In the last few days and months, Megaupload had announced plans to help artists make more money... and had announced that very successful and famous music producer Swizz Beatz had become CEO of Megaupload. Beatz is also married to recording superstar Alicia Keys and was responsible for getting all those RIAA artists to endorse Megaupload. All indications were that the company was clearly building a legitimate system for artists to make money and fans to get content. And it seemed that many artists clearly supported the site.
So why do we need SOPA/PIPA again? It seems like the DOJ/ICE just undermined the key argument of the MPAA/RIAA/US CoC for why they need these laws. After all, Megaupload was one of the key examples used for why the law was needed.
At the same time there are huge questions about why the government is involved here. Megaupload is currently engaged in a lawsuit in the US -- and contrary to claims of SOPA/PIPA supporters, the company seemed more than willing to appear in court to deal with civil copyright claims. Why leap to criminal claims?
Is this really the message the US DOJ and White House want to be giving the day after mass, widespread protests happened concerning a fear that this new law would be used to take down websites? Honestly, this is a big "fuck you" to the protestors, showing that the government already has this power thanks to the last law they passed: ProIP (which they promised they'd never abuse).
The indictment itself -- embedded below -- is so full of hyperbole ("Mega Conspiracy") it sounds like it was written by the entertainment industry itself...
Anyway, I'm sure we'll have much more to say about all of this... but wow is the timing dumb on the government's part. Not only does it undermine the argument for PIPA/SOPA, but it raises significant questions about whether or not the feds already have too much censorship power.
