REPORT PREPARED FOR:
Assignment 3: Critique
By Shuang Yang 1466706
Yan Li 1455986
Yating Xu 1463093
POSTGRADUATE DIPLOMA IN BUSINESS
APMG 8119: DIGITAL ENTERPRISE
ASSOCIATE PROFESSOR DR. NITIN SETH
Executive Summary
This report critiques copyright issue that contemporary society faced and some companies already involved in the status – Megaupload, it has to closed site according to U.S. government based on copyright laws. Baidu Cloud in China also operate the similar business model. The report provides the detailed analysis of the issue from three aspects: the similarity business model between Megaupload and Baidu Cloud, how New Zealand copyright law can support the related evidences and how these companies leverage customer data to run the business and acquire benefit.
The report provided the understandings of the New Zealand copyright law and showed the reasons and evidences that Megaupload and Baidu Cloud related to. The report also conducts a detailed analysis of the implementation about customer data and ownership.
Table of Contents
Copyright Law on the Internet is a Total Train Wreck
Nowadays the Internet is a wide-open source for information, entertainment, and communication. Many people believe that anything and everything go in cyberspace. Without proper knowledge, users unintentionally break the copyright laws that govern the Internet. Many myths have caused people to believe copyright laws do not apply to the Internet. However, copyright laws are in effect in today's cyberspace. It is also illegal to share contents and information in storage space or cloud without the permission of authors or owners, such as: novels, journal articles, music, videos, pictures, films, games, computer programs, maps, and etc. Megaupload would be the representative to against copyright law as well as Baidu Cloud.
Megaupload and Baidu Cloud
Megaupload Ltd was a Hong Kong based online company established in 2005 that operated from 2005 to 2011 providing online services related to file storage and viewing (WSJ, 2012). It was announced in June 2016 that it would be relaunched in January 2017. Kim Dotcom, the founder claims the new Megaupload service will include a Bitcoin micro-transaction linked to each file transfer using a system called Bitcache and the service will include the over 100 million users of the previous service (BBC, 2016).
On 19 January 2012, the United States Department of Justice seized the domain names and closed down the sites associated with Megaupload after the owners were arrested and indicted for allegedly operating as an organization dedicated to copyright infringement. Subsequently, approximately US$42 million worth of assets were frozen by the Customs and Excise Department of Hong Kong (RTHK, 2012). The company's founder, New Zealand resident Kim Dotcom, has denied any wrongdoing, and the case against Dotcom has been the subject of controversy over its legality. In 2015, Kim Dotcom was fighting extradition to the United States (Kelion, 2012).
Baidu is one of the leading tech company in China with the fame of Baidu web search engine that rivalled Google. Baidu Cloud is Baidu’s star product and launched in 2012, it offers online storage service which operate the similarity business model as Megaupload. Baidu cloud offers 15GB capability of permanently free cloud storage space when customer register for the first time. It has covered computers and mobile phone operating system for Windows and Mac PC users, Android and iPhone system users. Users can upload their own files to the network drive, and can be viewed and shared across the terminal. Baidu Cloud distributes the implementation of private storage services and combine Baidu Open Cloud Creating as a platform. August 22, 2013, Baidu launched "Baidu Cloud Million Users to Upgrade Basic Services” campaign, announced 2TB permanent capacity and unlimited free offline download service (Fatie, 2013).
Parameter Comparison Megaupload & Baidu Cloud:
|
Megaupload
|
Baidu Cloud
|
|
|
Users
|
150M
|
100M
|
|
Basic Capability
|
50GB
|
15GB
|
|
Upload Speed
|
900KB/s
|
100KB/s
|
|
Download Speed
|
700KB/s
|
300KB/s
|
|
Characters
|
Ÿ Upload files unrequested registration;
Ÿ Private files sharing system
|
Ÿ Play Videos / Films directly;
Ÿ BT agency with download;
Ÿ Free resource Pool;
Ÿ 2TB permanent capability with unlimited free offline download
|
Source: unwire.hk, (2014). Comparison 14 Chinese and oversea cloud storage companies.
Copyright Law
Basically, copyright law protects the ownership over things that a person creates. It allows owner to use and distribute the work, which is owner’s rights. But copyright law is different according to territory distribution (‘Copyright’, 2016). Focusing on New Zealand copyright law, copyright protection is automatic, which is no registration form to fill in. New Zealand copyright protect the “work” as literary, dramatic, musical and artistic works, sound recordings, films, communication works, and typographical arrangements of published editions. The basic understanding of copyright is mainly the same, but one thing of New Zealand copyright law worth to mention is the period of copyright protection which is same as China (Copyright Council of New Zealand, 2009). In New Zealand, the period of literacy, dramatic, musical and artistic works of copyright protection that lasts for the life of the author plus fifty years from the end of the year in which author dies. Other types of copyright works hold different protection duration (Copyright Council of New Zealand, 2009).
Referring to the case of Megaupload and Baidu Cloud, the New Zealand Copyright (New Technologies) Amendment Act 2008 indicated some key changes related to new technologies, which are the definition of “copying” extends to digital works, new exception for transient copying, new right of communication to the public, new category of work – “communication work”, permitted acts, Internet service provider liability, technological protection measures, copyright management information, format-shifting of sound recordings, and decompilation and error correction of software (Copyright Council of New Zealand, 2008). According to the above act, the Megaupload and Baidu Cloud infringed New Zealand copyright law in some way. However, Baidu Cloud is an innovation technology achievement and legal internet service provider , it doesn’t break the copyright law in China due to lack of supervision from government in high speed growth digital world. (Nystedt, 2007).
Who Owns The Data
Baidu Cloud provides a platform to share resources. Combined with its own search engine, users can search resources and browse them online. The person who initially created the work owns the data, and he/she has right to share the digital information through notify the password. According to NZ Copyright (Infringing File Sharing) Amendment Act 2011, it is illegal to share a copyright work in personal or commercial way online without the permission of the person who created it. In addition to this, the owner may take legal action and account holder may be fined or made to pay damages (Daley B. 2015). In this case, the internet protocal address provider (IPAP)Baidu Cloud have responsible to protect owners creation by issuing detection notice, warning notice, enforcement notice when a Rights Owner reported an alleged infringement of copyright. In New Zealand, the Copyright Act 1994 protects owners and producers of content. Copyright protects original works whether in hard copy or electronic form, across literature, music, film, art and computer software. According to Copyright Council of New Zealand, Government announced to shorten rereleasing time of film on digital channel or in any released form beside in cinema in 2013, from 9 months to 5 months. In other words, it is legal to upload a film after 5 months of the film was first release in cinema in New Zealand.
Practical Implications
· Convenient Life
Baidu Cloud is not just a place to store documents but also a place to communicate and exchange information. They are becoming much more common in workplaces and college settings. In New Zealand, it widely used in education industry, Ministry of Education shared some articles, images and media to teachers and students on Google drive, teachers have been encouraged to assign homework through this platform (Ministry of Education,2014).
· Best solution for collaboration
Baidu Cloud is web-based service provider, it has developed almost completely presence on any devices, such like computer, tablet and mobile. It created an ideal solution for those who have a mish-mash of tech devices. In addition to this, users can upload a file into Baidu Cloud from home computer and open the same file on work computer. It’s accessible from wherever you have Internet.
· Environment Friendly
Multiple users can browse on the same document with a shared password from the owner of the worker. Projects can be completed, shared, and commented on without ever printing a single page.
· Increase Internet Crime
The more information and data shared between profit organisations and inside management group online enhanced information safety concerns as it trigged hacker dangerous (EMC,2012).
Conclusion
In this paper we explore how New Zealand copyright regulation working and address IPAP’s responsibilities to protect owners copyright. We also discuss the influence from government monitor power on IPAP are different due to country culture and environment.
Reference
BBC News, (2016). Kim Dotcom plans 2017 relaunch of Megaupload. Retrieved from: http://www.bbc.com/news/technology-36763522
Copyright Council of New Zealand (2008). Copyright (New Technologies) Amendment Act 2008. Retrieved from http://www.copyright.org.nz/viewOwnerCat.php?category=179
Copyright Council of New Zealand. An introduction to copyright in New Zealand (2009). Retrieved from http://www.copyright.org.nz/viewInfosheet.php?sheet=29
Daley B.(2015). Where Data Is Wealth: Profiting from data storage in a digital society. Play Technologies
EMC Proven Professional (2012). Information Storage and Management: Storing, Managing, and Protecting Digital Information in Classic, Virtualized, and Cloud Environments, Wiley, 2nd Edition
Fatie Website, (2013). How to acquire Baidu Cloud 2T permanent capacity and unlimited free offline download service? Retrieved from: http://www.fatie.me/c70304fa70b011e683e300e04cbede12.html
Kelion, L. (2012). Hackers retaliate over Meagupload website shutdown. Retrieved from: http://www.bbc.com/news/technology-16646023
Ministry of Education(2014). Connected+ on Google Drive. Retrieved from:http://literacyonline.tki.org.nz/Literacy-Online/Planning-for-my-students-needs/Instructional-Series/Connected/Connected-on-Google-Drive
New Zealand Law Society (2013). Infringing file sharing two years on. Retrieved from: https://www.lawsociety.org.nz/lawtalk/lawtalk-archives/issue-832/infringing-file-sharing-two-years-on
Nystedt D. ,(2016). Baidu may be worst copyright violator, says Wikipedia. Retrieved from http://www.computerworld.com/article/2542922/security0/baidu-may-be-worst-copyright-violator--says-wikipedia.html
RTHK, (2012). HK seizes $330 Million in Megaupload raids. Retrieved from: http://m.rthk.hk/news/20120121/813245.htm
Unwire.hk, (2014). Comparison 14 Chinese and oversea cloud storage companies. Retrieved from: http://unwire.hk/2014/04/28/online_storage/top-news/#!prettyPhoto
Wall Street Journal, (2012). Megaupload.com Indictment. Retrieved from: http://www.wsj.com/articles/SB10001424052970204616504577171180266957116
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