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Ring-Tone Barons? Japanese Record Companies Raided 181

PuceBaboon writes " The Asahi Shimbun is reporting that officers from the Fair Trade Commission raided several major record companies in Japan, including Sony Music Entertainment, Toshiba EMI and Avex, on suspicion of creating a monopoly for the purpose of maintaining artificially high prices on... telephone ring-tone tunes."
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Ring-Tone Barons? Japanese Record Companies Raided

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  • iTMS? (Score:3, Informative)

    by InternationalCow ( 681980 ) <mauricevansteens ... m ['ac.' in gap]> on Sunday August 29, 2004 @04:57AM (#10101376) Journal
    It's interesting in this regard to think of the announcement some weeks ago of iTunes coming to Motorola cellphones. Then you have several record companies offering tunes and whatnot through a single channel. Talking about set prices... I wonder what the antitrust laws would have to say about that.
  • mp3 as ringtone (Score:5, Informative)

    by MoZ-RedShirt ( 192423 ) on Sunday August 29, 2004 @04:59AM (#10101379)
    Or why not just let a phone play a 10 second or so clip of an MP3? The decoder chips are cheap enough now.

    The newest Nokia phones are able to use midi files or mp3 files as ringtones. You can load them via infrared, cable or bluetooth connection and thus don't have to pay a single cent for your new ringtones.

    RedShirt
  • by Anonymous Coward on Sunday August 29, 2004 @05:00AM (#10101380)
    As far as i know, they are making more money with ringtones than with ordinary CD-singles by now. Meaning that every time you buy a single, you (statistically) have bought at least 20 ringtones.
  • I make my own (Score:5, Informative)

    by Facekhan ( 445017 ) on Sunday August 29, 2004 @05:08AM (#10101396)
    I bought the cable for my LG VX6000 phone and use some third party software bit_pm to upload ringtones that I make from any sound file. I just lower the quality a bit (soundforge free trial or any other editor) and make it mono and cut about 30-60 seconds out of an mp3 to make my ringtones then upload them to the phone. Took a fair amount of head scratching to get it all to work right but there is no reason to pay just to format shift the music you already have to a ringtone. Its amazing how the verizon software that comes with the cable can't even convert my phone book into a .csv but some guy in his spare time has managed to let me make my own ringtones.
  • Re:Good (Score:5, Informative)

    by Daleks ( 226923 ) on Sunday August 29, 2004 @05:10AM (#10101401)
    Then you can transfer them to the phone with whatever expensive cables they sell or by IR, or by putting the tune on a wap-enabled apache server.

    Not all carriers allow OTA (over the air) downloads of ringtones, wallpapers, or Java programs. I almost didn't get T-Mobile service because of this, but they were the only carrier with good reception in my area. AT&T (soon to be Cingular) is good about being open. I'm not sure where the other carriers stand.
  • Re:Good (Score:2, Informative)

    by Anonymous Coward on Sunday August 29, 2004 @05:22AM (#10101426)
    Or why not just let a phone play a 10 second or so clip of an MP3?

    Actually, phones are already available which play mp3 ringtones.
    Google: "mp3 ringtones" [google.com]
  • Re:vocals? (Score:5, Informative)

    by yo303 ( 558777 ) on Sunday August 29, 2004 @05:30AM (#10101443)
    I don't see why the record companies don't have control if the vocals aren't included.

    Because they are recording companies.

    (And to clarify, it's not just the vocals -- it's the particular recording, usually including vocals.)

    The record company owns the recording, not the composition. To sell the record, the record company must licence the song from the composer (who is often not the performer in question.)

    As an example, let's take the song "Remember (Walking in the Sand)", originally performed by the Shangri-Las, and written by George Morton. It was since covered by Patsy Cline, the Beach Boys and Aerosmith, among others.

    If you wanted the Aerosmith version as your ringtone, you'd have to licence it from whoever owns that Aerosmith recording, and from whoever now owns the rights to the composition... but not from the Shangri-Las' right-holders, because you're not using their recording.

    If you just wanted the song itself as a midi file in your phone, you don't have to pay anything to Aerosmith's label, nor to the Beach Boys' label, nor to the Shangri-Las' label -- because you're not using those recordings. You just have to pay whoever now owns George Morton's composition rights (provided the copyright hasn't lapsed) because that's all you're using.

    yo.

  • Re:Good (Score:4, Informative)

    by Awptimus Prime ( 695459 ) on Sunday August 29, 2004 @05:35AM (#10101450)
    Personally, I use Bluetooth between my phone and PC to manage ringtones, make additional phonebook entries, install games/apps, and copy pictures from the phone to the PC. This cuts out the middleman and any unexpected charges.

    I find this especially useful since I compose my own music. Simply export a mix to a MIDI file and copy it over. Instant custom ring-tones like none other!

    You do not need Windows, as suggested in other posts. Dig around on SourceForge and other Open Source sites, all the tools you need are there regardless of your OS.

    Personally, I do not like the idea of MP3 ringtones. It is much easier on the brain to hear a dinky midi of an Emeniem song a thousand times than to hear the real thing with vocals. I know, I'm screwed on that one. It is enevitable.

  • by hkmwbz ( 531650 ) on Sunday August 29, 2004 @05:58AM (#10101490) Journal
    "or are almost all telephone ringtones *overpriced*"
    Mobile services are way overpriced. At least in Europe. The reason? Mobiles allow the people who run the network to make deals with people who deliver contents.

    Because mobiles have traditionally had very limited software capabilities, they have been able to charge outrageous sums for mobile services. Instead of browsing the web you'll be browsing some specialized service with content created specifically for mobiles.

    And the problem isn't just that the mobile operators and content owners do everything they can to keep it that way.

    And even worse, people like Danish mobile analyst John Strand [strandconsult.dk] from Strand Consult are attacking anything which threatens this mobile hegemony by operators and content owners.

    John Strand has been known to use his influence to try to make sure that today's situation with crappy and overpriced services will remain. He basically tells the press that "yeah, these people don't understand the mobile market and won't survive for long" if it threatens today's hegemony.

    One specific example is the rise of software on mobiles that can browse the web instead of the customer being force fed what the operator wants him to. John Strand is using his influence to claim that companies that offer such solutions will never survive because they operate outside the "mobile food chain".

    John Strand and his ilk are basically trying to maintain today's situation because overpriced mobile services are a good thing to them. It's a mobile market they know, and they are making good money by just being "consultants".

    So yeah, mobile services suck and are over priced. Software like real web browsers is arriving to give the customer an actual choice and make it cheaper, but on the other hand, corrupt "analysts" like John Strand are doing everything they can to stop this more customer friendly development, and really fight to keep today's system with customer lock-in and over priced services.

  • Cartels (Score:4, Informative)

    by ImaLamer ( 260199 ) <john.lamar@g m a i l . com> on Sunday August 29, 2004 @06:40AM (#10101565) Homepage Journal
    "gentlemanly cooperation" is seen as a way to maintain safe sales levels for everyone, while going for the jugular on external (overseas) sales

    Just for clarification this is referred to as a "cartel" in economics terms.

    OPEC, the RIAA, the Cali (cocaine) Cartel, all the same.

    Definition of cartel from my economics text (from the glossary):

    A form of oligopoly characterized by collusion; intended to increase profits, but illegal in the United States.

    From the actual text:

    The objective of a cartel is to increase price to the profit-maximizing monopoly price. The higher price implies a smaller output, which must be allocated among members of the cartel.

    Basically the group gets together and decides that they will compete but not enough to put each other at risk. No one member can do something that would be harmful to the group.

    For example, this is the reason that OPEC collectively controls oil output and not just one OPEC country. They decide together what is in the best interest of them all, creating unfair prices for the rest of the world as suplus is un-naturally replaced with deficit. (as opposed to an equilibrium being struck on its own)
  • by JaredOfEuropa ( 526365 ) on Sunday August 29, 2004 @07:42AM (#10101669) Journal
    Because mobiles have traditionally had very limited software capabilities, they have been able to charge outrageous sums for mobile services. Instead of browsing the web you'll be browsing some specialized service with content created specifically for mobiles.
    Do you mean WAP? I agree it is somewhat limited, mainly because of the limited memory, keyboard and displays of mobile phones. IIRC, WAP is actually just toned-down HTML with some extra protocols. But anyone can create content, and my provider (Orange) at least do not limit access to these. A number of newspapers have WAP pages alongside their regular ones, and services like Google and Yahoo are available on WAP as well. Most of the premium stuff like traffic info and route finders offered by providers, can be had for free elsewhere. The best thing is that I pay only a few Euros a month for data access, but all my WAP browsing is free!

    The one service that I still find greatly overpriced is direct (non-WAP) data transfer. On GPRS, usage is charged by the MB since the connection is always-on. Typical fees here range from 1,5 Euro/MB (Telfort), 3 Euro/MB (Orange) to an unbelievable 7,5 Euro/MB (KPN).

    My question is: how on earth can the hope to sell these shiny new broadband 3G phones, if we are to download all that "exiting new music and movie content" to the tune of 7,5 Euro/MB? Perhaps you are right again... since these days my phone/PDA can browse proper WWW pages after a fashion, they'll charge me an arm and a leg just to encourage me to stay on WAP.
  • by Anonymous Coward on Sunday August 29, 2004 @08:18AM (#10101761)
    from reading through the comments, it's painfully obvious that so many of you have no idea what the word "polyphonic" means. you seem to think it's the ability to play mp3s or whatnot from your phone. in fact, it's simply means the phone can generate two or more tones at once, hence giving it the ability to play some of the more complex midi files out there... /rant
  • by nz17 ( 601809 ) on Sunday August 29, 2004 @08:32AM (#10101795) Homepage
    http://ringtonetools.mikekohn.net/ [mikekohn.net] has a great little F/OSS program called Ringtone Tools for generating your own ringtones from a variety of different formats for a cavalcade of phone models. The program (Ringtone Tools) runs on Windows, DOS, and *nix'es, with source fully available, and some purchasable PHP and Java versions. Really nice tool, I've used it to translate Nokia text ringtones into ones for my Motorola t120.

    Yes, that's right, older cell phone models used to actually let you type the ringtones directly into them, without special software or cables, though that option has always seemingly been available for these types. Very nice, economical solution for those of us who want custom or special ringtones but not enough to pay a high price for them. Besides, it's not like these companies are making anime ringtones (Go Totoro!) available anyway.
  • Article incorrect (Score:5, Informative)

    by achurch ( 201270 ) on Sunday August 29, 2004 @09:59PM (#10105857) Homepage

    . . . or, rather, misleading. It's not "ring tones" in the MIDI sense, but actual MP3 clips of songs that are the subject of the raid.

    In Japan, anyone is allowed to make and sell MIDI-style ring tones as long as they pay a usage fee to the copyright office. This fee is then paid back to the original authors of the song--but not to the record labels. There are something like 200 companies producing ring tones now, and the labels get nothing out of any of them.

    So when the next wave--ring songs, for lack of a better term; MP3 (or similarly encoded) digital sound--came around, the labels got greedy. Since they own the copyrights on the actual recordings, they decided not to let anyone but their own group companies sell clips from the songs. The Fair Trade Commission decided that this was unfair use of monopoly, and thus the raid.

  • by ajna ( 151852 ) on Monday August 30, 2004 @10:15PM (#10114303) Homepage Journal
    http://www.oreillynet.com/pub/wlg/3935
    http://www .uniquephones.com/unlock/index.php

    I unlocked my Nokia 3650 last night using the second site's unlock code generator. Make sure to read the instructions and not make typos as you only get a limited number of attempts before the phone locks itself down, so to speak, after which only professionals with a cable can unlock the unit.

All the simple programs have been written.

Working...