The Digital Music Distribution Revolution\' Fraunhofer and MP3 In 1991, Fraunhof

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The Digital Music Distribution Revolution' Fraunhofer and MP3 In 1991, Fraunhofer IIS of Germany developed an algorithm that would set in motion a revolution in how music was distributed, stored, and consumed. The algorithm (commonly referred to as a codec) allowed compression of digital audio to approximately one-tenth of its original size with minimal compromise in audible quality. The format also enabled song information such as the song title and artist to be embedded within the file. This format for compressed audio files was later dubbed MPEG-1 layer 3-a k.a. MP3. By 1995, software programs were available that enabled consumers to convert tracks from compact discs to MP3 files. This technology transformed how music could be manipulated-a song was now a file that could be kept on a hard drive, and the file was small enough to be shared over the Internet. The MP3 format became wildly popular by users sharing their music online, and software companies began releasing many variants of MP3 encoders (utilities that compress files into MP3s) and decoders (utilities that play back MP3s). Hardware manufacturers decided to cap- italize on this new trend and several hardware MP3 players began appearing on the market With the growing popularity of the file format, Fraunhofer was faced with a dilemma- should it enforce its patent on the use of the MP3 algorithm and attempt to collect royalties for its use, or should it allow users and software/hard- ware manufacturers to make free use of the algorithm, allowing the momentum of the format to build? If it was to limit the use of the algorithm, it faced the risk of established rivals such as Microsoft and Sony developing competing formats, yet if it allowed free use of the algorithm, it would be difficult to profit on its invention. Fraunhofer decided to pursue a partially open licensing approach, partnering with Thomson Multimedia as the exclusive licensing representative of MP3 patents in 1995.2 Thomson, in turn, negotiated agreements with several compa- nies including Apple, Adobe, Creative Labs, Microsoft, and many others. Such a broad base of MP3 licensees (100 by April 2001) provided consumers with easy

Explanation / Answer

Creative Commons is an organisation that helps in licensing the content owned by musicians, artists, software developers, etc to be used by the general public. Although making the music available to the people and giving them access to use it anywhere undermines their control and hold over their content, it does help musicians to popularize their product among the general public and create a fan base. Their main aim is to get their music out in the open so that they can reach as wide an audience as possible.

Historically music distribution required contracts with music labels that provided the money to produce the music on records and then distribute it. Most of the times these music labels offered very unattractive deals to the musicians. But in the age of the internet, it is much more easy to distribute their content to the public through different platforms under a creative commons license.

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