Lawsuits dubbed 'a waste of time' in online music wars

NEWS The music giants would do better to steal back their markets by offering quality alternatives to pirating software, it claims. According to Forrester, music publishers stand to lose as much as $3.1bn by 2005 as online music piracy increases. "You have to beat pirates at their own game, otherwise record companies could sustain large losses," said Eric Scheirer, analyst at Forrester and author of the report. Peter Beverley, vice chairman at Magex, Natwest's Digital Rights Management (DRM) business, added: "The legal process on its own won't solve the piracy problem and nor will digital management technology. Instead you need to offer products that are worth having. To merely replicate what is in the shops will not work." Andrew Robins, marketing director at DRM vendor, Intertrust, agreed. He claimed there will be a power shift as music publishers release their grasp on music distribution and become service providers. "One thing everyone has to accept is that you cannot un-invent technology. Napster has been invented and it was done using technology that has been around for a long time. People cannot kill Napster overnight," he said. He added: "Record companies are going to offer products on the internet that are of a significantly better quality and richer experience, which means you get the music and the video and perhaps the lyrics as well for the price you pay." Simon Balzalgette, CEO at e-tailer Music Choice, criticised the music industry for getting itself into the position it is now in. "It is best to get in first and control it to ensure they are the people driving it forward," he said. "Online music is a great opportunity for the music business and they have singularly failed to take advantage of it. They should have done something like Napster at an earlier stage."