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| 00:00:25 |
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IN ATTEMPTING TO ENFORCE THEIR RIGHTS ON THE WEB PAGE. MORE AND MORE SPORTS AND INCREASINGLY INJURED... |
| 00:01:57 |
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THIS OVERSIGHT HEARING FOCUSES ON AN EMERGING AND DISTURBING NEW ASPECT OF INTERNET PIRACY. THE UNAUTHORIZED... |
| 00:04:52 |
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THANK YOU VERY MUCH. THEY INDICATED IN THE AFFIRMATIVE AND THE GENTLEMEN IS RECOGNIZED. |
| 00:05:01 |
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THANK YOU, MR. CHAIRMAN FOR HOLDING THIS VERY IMPORTANT HEARING ON A VERY IMPORTANT DEVELOPMENT IN... |
| 00:07:17 |
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THANK YOU, CHAIRMAN JOHNSON. WE WELCOME OUR PANELISTS, A GROUP OF MEN AND WOMEN. PROFESSOR CHRISTOPHER... |
| 00:07:40 |
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NO RELATION, MR. CHAIRMAN. |
| 00:07:47 |
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MR. MICHAEL SEGAL? MR. LORENZO? AND OF COURSE MICHAEL WHO WILL START US OFF. I RARELY STAY UP LATER... |
| 00:09:46 |
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THE RANKING MEMBER SMITH AND DISTINGUISHED MEMBERS OF THE COMMITTEE, ON BEHALF OF MAJOR LEAGUE BASEBALL,... |
| 00:14:52 |
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THANKS. ULTIMATE FIGHTING CHAMPIONSHIP HAS BEEN THE MAIN ACTIVITY OF MR. LORENZO, OUR NEXT WITNESS.... |
| 00:15:28 |
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THANK YOU CHAIR MEN AND RANKING MEMBER SMITH AND DISTINGUISHED MEMBERS OF THE COMMITTEE. I LIKE TO... |
| 00:21:11 |
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THANKS. THE NEXT WITNESS IS AN AMAZING YOUNG MAN, COFOUNDER AND CEO OF THE WEBSITE WITH 30 MILLION... |
| 00:21:54 |
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CHAIRMAN AND RANKING MEMBER SMITH AND MEMBERS OF THE COMMITTEE, THANK YOU. |
| 00:21:58 |
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PUSH THE BUTTON. |
| 00:22:02 |
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THANK YOU FOR ALLOWING ME TO TESTIFY TODAY. WE ARE A PRIVATELY OWNED START UP FORMED IN 2006 AND BASED... |
| 00:26:34 |
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ESPN AND DEVELOP THE MAGAZINE AS WELL. PREVIOUSLY HE SERVED IN A NUMBER OF LEADERSHIP ROLES IN THE... |
| 00:27:01 |
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THANK YOU VERY MUCH, MR. CHAIRMAN. RANKING MEMBER SMITH OF THE MEMBERS OF THE COMMITTEE. I WOULD... |
| 00:32:39 |
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THANK YOU, CHAIRMAN. RANKING MEMBER SMITH AND MEMBERS OF THE COMMITTEE. I'M GRATEFUL TO THE OPPORTUNITY... |
| 00:38:00 |
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THANK YOU, PROFESSOR. WE WELCOME ADAM SHIFT TO THIS HEARING, HOWARD KOVAL AND MAXIME WATERS. BILL... |
| 00:39:33 |
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WELL, CHAIRMAN CONYERS, YOU'VE ASKED THE MOST IMPORTANT QUESTION RIGHT OFF THE BAT. WE DON'T BELIEVE... |
| 00:41:27 |
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WELL, THANK YOU VERY MUCH. AFTER WATCHING OUR PRESIDENT, GLOBAL SOLUTIONS SEEMS REALLY HARD TO COME... |
| 00:41:53 |
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WELL, I THINK THERE IS A ROLE IN THE REALM OF INTERNATIONAL COPYRIGHT AND RELATED TREATIES IN GENERAL,... |
| 00:42:47 |
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WAIT TILL AMBASSADOR SUSAN RICE HEARS ABOUT THIS AT THE U.N. MR. FERTITTA. |
| 00:43:00 |
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YES, MR. CHAIRMAN. |
| 00:43:02 |
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WHAT DO YOU THINK? |
| 00:43:04 |
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I'M NOT AN EXPERT IN TECHNOLOGY OR LAW. I'M AN ENTREPRENEUR THAT STARTED A BUSINESS -- BOUGHT A BUSINESS... |
| 00:43:32 |
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I'M PROU OF YOU BUT THAT'S NOT WHY WE'RE HERE TODAY. |
| 00:43:36 |
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I KNOW THE DMC WAS PUT IN PLACE, BUT I'M NOT SURE THAT THAT CONTEMPLATED LIVE STREAMING EVENTS. CERTAINLY... |
| 00:44:11 |
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OKAY. WHAT DID YOU WANT TO ADD TO YOUR CONTRIBUTION, MR. SEIBEL? YOU FIRST BROUGHT UP FINGERPRINTING.... |
| 00:44:21 |
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YEAH. I DON'T BELIEVE I'M QUALIFIED TO DISCUSS THE INTERNATIONAL REMEDIES FOR THESE SOLUTIONS. |
| 00:44:28 |
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WELL, TURN YOUR MIKE ON. |
| 00:44:31 |
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WE'RE ON. THERE WE GO. WE'RE ALL GOOD. I DON'T BELIEVE I'M QUALIFIED TO DISCUSS THE INTERNATIONAL... |
| 00:45:24 |
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HAVE YOU EVER CONSIDERED LAW SCHOOL? NO. YOU'VE BEEN VERY HELPFUL. YOU'VE INTRODUCED THE WHOLE TOPIC... |
| 00:45:37 |
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YES, MR. CHAIRMAN. THANK YOU. I DO WANT TO ECHO WHAT WAS SAID BEFORE. YOU KNOW, WE'RE ENTREPRENEURS... |
| 00:47:25 |
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TELL ME HOW ESPN THAT YOU MENTIONED OPERATES AND IS UNIQUE FROM OTHER WEBSITES AND WHY YOU CHOSE NOT... |
| 00:47:41 |
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SURELY. WE ADDRESSED IT AS IT'S COME ALONG IN OUR 30 YEARS OF IT. WE LOOK TO FIND WAYS TO PUT THE... |
| 00:49:15 |
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SO YOU DIDN'T THINK IT WAS ECONOMICALLY WISE INVESTMENT. |
| 00:49:19 |
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NO. WE LOOKED AT THE -- |
| 00:49:24 |
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WHY YOU DIDN'T OFFER IT AS A SUBSCRIPTION PRODUCT. YOU DIDN'T THINK IT WAS VIABLE. |
| 00:49:30 |
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WE SAW AN OPPORTUNITY, MR. CHAIRMAN, TO GET ONBOARD A TRAIN WE THOUGHT WAS LEAVING AND WOULD DO VERY... |
| 00:50:22 |
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OKAY. PROFESSOR, YOU -- YOU'VE ALREADY MADE A COUPLE OF GOOD SUGGESTIONS. WHAT ABOUT THE LEGAL BASIS.... |
| 00:50:34 |
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THESE ARE TECHNICAL. HOW DO WE SUE THESE GUYS? HOW DO WE PROSECUTE THESE GUYS? AND NOW E EVERYBODY... |
| 00:50:53 |
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I HAVE SOME CONCRETE SUGGESTIONS OF WAYS THE LAW MIGHT BE CHANGED -- CHANGES IN THE LAW THAT MIGHT... |
| 00:53:56 |
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I THANK ALL OF YOU. YOU'VE BEEN VERY HELPFUL IN GETTING US STARTED. REMEMBER, THIS IS ONLY THE FIRST... |
| 00:54:12 |
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WELL, MR. CHAIRMAN, THANK YOU VERY MUCH. THIS IS THE FIRST HEARING THAT'S BEEN HELD ON THE DMC, I... |
| 00:56:05 |
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JUSTIN.TV'S, WE REFER TO THAT AS A COPYRIGHT SYSTEM. IT'S USUALLY IN THE FORM OF A LETTER INTO AN... |
| 00:56:43 |
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I WOULD GUESS THAT MR. MELLIS AND MR. FERTITTA AND MR. DURSO WOULD SAY IN THE DEVELOPMENT OF LIVE... |
| 00:57:38 |
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SO THE REASON WHY WE HAVE DEVELOPED BOTH THE COPYRIGHT PROTECTION SYSTEM AND THE LIVE FILTERING SYSTEM... |
| 00:58:26 |
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NOW, THERE'S ANOTHER SIDE OF THIS ISSUE, AND THAT IS THE USER OF YOUR SERVICE OR OTHER INTERNET SITES... |
| 00:59:09 |
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WELL, OUR UNDERSTANDING IS ONCE WE RECEIVE A TAKEDOWN NOTICE, REGARDLESS OF ITS VALIDITY, WE'RE REQUIRED... |
| 00:59:38 |
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NOT A LOT OF MISTAKES IS WHAT YOU'RE SAYING. |
| 00:59:40 |
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EXACTLY? |
| 00:59:44 |
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IN OUR RESENT SUBMISSION TO THE NEW ZEALAND GOVERNMENT, GOOGLE ALLEGED 50% OF THE TAKEDOWN NOTICES... |
| 01:00:52 |
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I'M NOT AWARE OF THAT. I CAN SHARE WITH YOU THAT -- AND I THINK OTHERS ON THE PANEL HAVE SEEN THE... |
| 01:01:05 |
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IT'S VERY FAST, ISN'T IT. |
| 01:01:06 |
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IT'S VERY FAST. DECISIONS HAVE TO BE MADE VERY QUICK. |
| 01:01:12 |
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IT'S ALSO FRUSTRATING IN THIS REGARD. I DON'T THINK ANYONE WHO GOES TO JUSTIN.TV AND LOOKS THROUGH... |
| 01:02:07 |
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ABSOLUTELY. I AGREE. THAT'S A MAJOR ONUS THAT MR. SEIBEL AND OTHERS IN THE SAME BUSINESS FACE OR... |
| 01:02:26 |
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YES, I DO. THANK YOU. RELATIVE TO WHAT YOU WERE TALKING ABOUT WITH NEW ZEALAND, I DON'T KNOW -- |
| 01:02:32 |
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THIS IS SOMETHING THEY PRESENTED TO NEW ZEALAND, BUT THEY WERE TALKING ABOUT THE |
| 01:02:35 |
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RIGHT. I GUESS THE QUESTION WOULD BE IS THAT ARCHIVED OR LIVE CONTENT? |
| 01:02:41 |
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I DON'T KNOW THE ANSWER TO THAT. THAT'S A GOOD QUESTION. |
| 01:02:43 |
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IT IS DIFFICULT, AS I MENTIONED BEFORE, BECAUSE IT IS LIVE STREAMING, AND WHILE WEBSITES SAY THEY'RE... |
| 01:03:22 |
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MR. FERTITTA, WOULD YOU PUT THAT DOCUMENT IN THE RECORD? I WOULD ASK THAT THAT BE MADE PART OF IT.... |
| 01:03:32 |
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WITHOUT OBJECTION. |
| 01:03:35 |
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I WANT TO ASK PROFESSOR U. ONE LAST QUESTION. WHAT CAN BE DONE TO MAKE SURE THAT CONTENT OWNERS ARE... |
| 01:04:32 |
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CLEARLY CONGRESS COWSULD IMPOSE CONSEQUENCES. THEY'RE EASY TO IDENTIFY, EASY TO FIND, THEY'RE EASY... |
| 01:05:47 |
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THANK YOU. THANK YOU, MR. CHAIRMAN. |
| 01:05:54 |
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MAXINE WATERS, CHAIR OF A SUBCOMMITTEE IN FINANCIAL SERVICES, SENIOR MEMBER OF THE JUDICIARY COMMITTEE.... |
| 01:06:00 |
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THANK YOU VERY MUCH, MR. CHAIRMAN. I HAVE BEEN LISTENING WITH GREAT INTEREST SINCE I ENTEREDED THE... |
| 01:07:06 |
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CONGRESSMAN, I'D WILL GLAD TO TRY TO EXPLAIN THAT. THIS IS ONE WAY THAT WE THINK IT'S HAPPENING. ... |
| 01:08:50 |
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MR. MELLIS, THE DEVICE THAT YOU JUST SHOWED US THAT YOU COULD PUT ON THE CABLE AND CONNECT TO YOUR... |
| 01:09:02 |
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YES. I BELIEVE THESE DEVICES ARE WIDELY AVAILABLE, AND IT'S NOT THE ONLY DEVICE THAT COULD BE USED... |
| 01:09:28 |
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WHAT OTHER USE WOULD THESE DEVICES HAVE OTHER THAN THE PIRACY ACTIONS THAT YOU JUST DESCRIBED? |
| 01:09:38 |
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I DON'T KNOW MUCH ABOUT THESE DEVICES IS EXCEPT ABOUT HOW THEY'RE USED WITH RESPECT TO THE PIRACY... |
| 01:09:53 |
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WHERE ARE THEY SOLD? |
| 01:09:55 |
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THEY'RE WIDELY AVAILABLE. THEY CAN BE BOUGHT AT AMAZON. WE BOUGHT THIS ONE AT A STAPLES STORE. |
| 01:10:01 |
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SO YOU DON'T KNOW WHETHER OR NOT THEY COULD BOOE USED FOR A LEGITIMATE USE? |
| 01:10:08 |
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I THINK THEY COULD BE. WHAT I E-MAIL SAYING IS I'M NOT FAMILIAR WITH HOW THEY ARE, IN FACT, USED BY... |
| 01:10:37 |
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I SEE. WELL, MR. CHAIRMAN, IF I MAY, IT SOUNDS AS IF WE HAVE A COMPLICATED ISSUE BEFORE US THAT MUST... |
| 01:11:46 |
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I WANT YOU TO REST ASSURED THEY'RE GOING TO HOLD HEARINGS ON THIS IN JANUARY. WILL THAT MAKE YOU MORE... |
| 01:11:56 |
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AS LONG AS WE STAY FOCUSED ON THAT ANTITRUST EXCEPTIONSEM CHUN, I'M HAPPY. |
| 01:12:11 |
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WE TURN NOW TO HOWARD KOVAL, A DISTINGUISHED MEMBER OF THE JUDICIARY COMMITTEE FROM NORTH CAROLINA... |
| 01:12:21 |
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THANK YOU, MR. CHAIRMAN AND WELCOME TO THE PANELISTS BEFORE US TODAY. GENTLEMEN GENTLEMEN, I BLEEN... |
| 01:13:21 |
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THANK YOU FOR RAISING THAT. I DON'T THINK THAT IT IS, CONGRESSMAN. WE'VE HEARD THAT COMPLAINT BEFORE.... |
| 01:14:35 |
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I GOT YOU. |
| 01:14:37 |
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AND IN THAT CIRCUMSTANCE YOU'RE ACTUALLY PUTTING DOWNWARD PRESSURE ON RETAIL PRICING. WE'D BE HAPPY... |
| 01:14:45 |
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THANK YOU, SIR. IN YOUR TESTIMONY YOU REFER TO SEVERAL TECHNOLOGIES THAT MAY BE EMPLOYED TO PREVENT... |
| 01:15:06 |
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WHEN YOU SEE HOW PIRACY AND OTHER SECURITY PROBLEMS HAVE BEEN ADDRESSED ON THE INTERNET IN OTHER CONTEXTS,... |
| 01:16:17 |
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I GOT YOU. THANK YOU ALL FOR BEING WITH US. I YIELD BACK TO MR. CHAIRMAN. |
| 01:16:23 |
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THANK YOU. HANK JOHNSON, SUBCOMMITTEE CHAIR, FORMER MAGISTRATE IS RECOGNIZED. |
| 01:16:32 |
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THANK YOU, MR. CHAIRMAN. FOR SOME REASON, THIS MICROPHONE GOES LIFRPMP ALL THE TIME. MAYBE WE CAN... |
| 01:16:51 |
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I HOPE NOBODY CHOOSES TO TAKE YOUR WORDS DOWN, MR. JOHNSON. |
| 01:16:55 |
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YES. WHAT I'D LIKE TO ASK MR. SEIBEL -- AND BY THE WAY, I'M HAPPY TO KNOW THAT YOUR FIRM SUPPORTS... |
| 01:17:50 |
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I THINK THAT WHEN WE -- WHEN WE LOOK AT THIS ISSUE, OUR UNDERSTANDING KIND OF AS WE LOOK AT OUR ENTIRE... |
| 01:18:34 |
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YEAH. WELL, NOW, THAT IS DIFFERENT FROM -- THERE'S NO NEED FOR CONSENT AND PAYMENT FOR THE USE OF... |
| 01:19:03 |
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CERTAINLY. SO WHEN DESIGNING A SITE FOR ANYONE TO CREATE AND SHARE LIVE VIDEO, UNFORTUNATELY AS IN... |
| 01:19:53 |
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YOU'RE KIND OF GOING FAR |
| 01:19:57 |
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OKAY. |
| 01:20:02 |
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BUT I WILL ASK ALSO HOW DOES -- HOW DOES JUSTIN.TV MAKE ITS MONEY? |
| 01:20:14 |
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JUSTIN.TV, WHEN WE LOOK AT OUR BUSINESS MODEL, IT IS REALLY THREE FOLD. THE FIRST ASPECT IS AN ADVERTISING... |
| 01:21:08 |
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YOU CAN KEEP GOING FOR -- YOU CAN FILIBUSTER FOR THE REMAINING ONE MINUTE OR SO OF MY TIME, AND I'M... |
| 01:22:09 |
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SO I'M NOT A LEGAL EXPERT IN TERMS OF THE LEGAL PART OF THE NAPSTER CASE BUT FROM A PRODUCT PART,... |
| 01:22:56 |
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ANYONE ELSE? |
| 01:23:02 |
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NAPSTER INTENTIONALLY PURSUED COPYRIGHT DIBTRY BUGS. THAT IS A SOLE BASIS FOR LIABILITY BY ITSELF.... |
| 01:24:12 |
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I THINK ONE OF THE THINGS IS IN THE EARLY DAYS THE MUSIC INDUSTRY WASN'T NECESSARILY BRACING TECHNOLOGY... |
| 01:25:06 |
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ANYONE ELSE? THANK YOU, MR. CHAIRMAN, FOR ALLOWING ME SOME ADDITIONAL TIME FOR THE ANSWERS TO THE... |
| 01:25:20 |
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YOU'RE MORE THAN WELCOME. RANKING MEMBER FROM FLORIDA, TOM ROONEY. |
| 01:25:28 |
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THANK YOU, MR. CHAIRMAN. AS A FRESHMAN, THAT SOUNDS GOOD. THAT'S USUALLY WHAT HAPPENS WHEN YOU'RE... |
| 01:25:41 |
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WAS THAT INCLUDING VIAGRA ISSUE AS WELL? |
| 01:25:43 |
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YES, SIR. |
| 01:25:45 |
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I WARNED YOU ABOUT THAT, JOHNSON? |
| 01:25:46 |
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THAT'S MY SIGN TO TALK QUICKLY HERE. MR. YOO, I REALLY APPRECIATE YOUR TESTIMONY. I THINK THAT, YOU... |
| 01:28:01 |
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SO I THINK THE NEW TECHNOLOGY OF THE FINGERPRINTING SOLUTION IS A COMPREHENSIVE SOLUTION TO THIS ISSUE.... |
| 01:28:58 |
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OKAY. ON THAT POINT -- |
| 01:28:59 |
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YES. |
| 01:29:01 |
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-- YOU SAID EARLIER IN YOUR TESTIMONY THAT AS SOON AS ONE OF THESE GUYS CALLS YOU AND SAYS TAKE DOWN... |
| 01:29:17 |
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UNFORTUNATELY I'M NOT A LEGAL EXPERT. |
| 01:29:19 |
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DOES ANYBODY? |
| 01:29:22 |
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JUSTIN.TV WOULD LOSE THEIR RIGHTS. THEY WOULD BE SUBJECT TO COPYRIGHT LIABILITY AND STATUTORY DAMAGES... |
| 01:29:44 |
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MR. SEIBEL, I'M RUNNING OUT OF TIME ALREADY. WHEN YOU SAY YOU'RE ENTERING INTO AGREEMENTS, YOU KNOW,... |
| 01:29:59 |
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SO IN THE CONTEXT OF THE NFL, THE NFL AND NBC WERE LOOKING FOR AN AUTOMATED SOLUTION TO REMOVE NBC's... |
| 01:30:26 |
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BUT YOU DON'T HAVE AN AGREEMENT WITH THE NFL TO PUT THESE GAMES ON YOUR WEBSITE. THEY'RE JUST ON THERE,... |
| 01:30:36 |
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YES. AS WITH ALL SITES IT'S REALLY THE SAME ISSUE. WHEN THE USER IS PUTTING SOMEONE ELSE'S CONTENT... |
| 01:30:56 |
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I KNOW MY TIME -- CAN I ASK ONE MORE QUESTION, PLEASE? |
| 01:30:58 |
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WE DO HAVE TO VOTE. |
| 01:30:59 |
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VERY QUICKLY. THANK YOU, MADAM CHAIRMAN. MR. YOO, YOU MENTIONED WITH REGARD TO MAYBE PRECLUDING THESE... |
| 01:31:47 |
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I THINK A REPEAT OFFENDER LAW, AS THEY'RE DOING IN FRANCE AND THE U.K. FOR END YIERSS WHO ARE PIRATING... |
| 01:32:52 |
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I'M GOING TO YIELD MYSELF MY FIVE MINUTES AND THEN WE WILL MAKE FURTHER DETERMINATIONS ABOUT THE QUESTIONING.... |
| 01:33:16 |
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I CERTAINLY DO. |
| 01:33:18 |
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OH, MY GOODNESS. |
| 01:33:19 |
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GALVESTON, TEXAS. |
| 01:33:20 |
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ALL RIGHT. WELL, I'VE OBVIOUSLY RUN INTO THEM ON SEVERAL OCCASIONS. IT WON'T BIAS MY QUESTIONS, AND... |
| 01:34:26 |
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YES, BUT IT HAS IMPLICATIONS ON MUSIC. |
| 01:34:29 |
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BUT IT'S NARROWLY DRAWN. AS WE LOOK AT IT, IT PERTAINS TO MUSIC. OF COURSE, IT CAN BE USED AND CYTOED... |
| 01:34:41 |
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THE COPYRIGHT LAW DOES NOT DISTINGUISH, SO TIM PLICATION IS THERE, BE U, NO, IT DOES NOT DECIDE ANYTHING... |
| 01:34:49 |
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SO THERE'S THE POSSIBILITY WE WOULD LEGISLATIVELY ACT OR THIS WOULD HAVE TO BE AN ONGOING COURT PROCEEDINGS... |
| 01:35:00 |
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YES. |
| 01:35:03 |
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THEN LET ME INDICATE THAT THOUGH WE DON'T OFTEN CITE OUR WORK, I THINK OUR JUDICIARY COMMITTEE HAS... |
| 01:37:08 |
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YES. |
| 01:37:10 |
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VERY QUICKLY. |
| 01:37:11 |
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RIGHT NOW, WITH RESPECT TO THE PIRACY AS WE'VE BEEN EXPERIENCING AND OBSERVING FOR SEVERAL YEARS,... |
| 01:37:35 |
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YOU DO KNOW IF PIRACY CONTINUES AND YOUR PRODUCT DEPLETES IN VALUE, THE POTENTIAL THAT YOU MAY LOSE... |
| 01:37:45 |
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YES, EMFATTICLY. |
| 01:37:46 |
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THANK YOU. |
| 01:37:48 |
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I CAN TELL YOU I'M SURE THIS IS AN IMPORTANT ISSUE FOR THE OTHER MEMBERS OF THE PANEL. THIS IS THE... |
| 01:38:19 |
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MR. DERSO -- |
| 01:38:22 |
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WE HAVE 6,000 PEOPLE WORLDWIDE GROWING ESPN. AND THAT WOULD BE IMPACTED -- |
| 01:38:29 |
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6,000. |
| 01:38:31 |
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DOES THAT IMPACT YOUR BOTTOM |
| 01:38:32 |
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ABSOLUTELY. |
| 01:38:33 |
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DO YOU SEE THIS AS AN ECONOMIC ISSUE? |
| 01:38:36 |
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I SEE IT AS AN ECONOMIC ISSUE. JOBS ARE AT STAKE. I USED TO TEACH IN NASHVILLE. THE MUSIC INDUSTRY... |
| 01:38:50 |
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DO YOU WANT TO WORK WITH US, YOUR BUSINESS OBVIOUSLY, PROVIDES INCOME. DO YOU SEE THE VALUE OVER TRYING... |
| 01:39:02 |
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DEFINITELY. |
| 01:39:03 |
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LET ME THANK YOU. WE ARE GOING TO ADJOURN THIS HEARING AND MR. CHAIRMAN WANTS TO COME BACK? |
| 01:39:10 |
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THE CHAIRMAN WANTS TO COME BACK? |
| 01:39:12 |
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WE'RE GOING TO ADJOURN THIS HEARING, SO THIS HEARING NOW STANDS IN ADJOURNMENT. IN RECESS, EXCUSE... |
NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.
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