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Western Carolinian Volume 68 Number 10
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Canada OPEC to Cut Back on Crude Output 3 (OU RT E MB RAC E S By Elizabeth Douglass | Los Angeles Times F I L E a S HARI N G Rebuffing pleas from the United States, OPEC said Wednesday it would press ahead with plans to immediately cut crude oil production by 4 percent. But instead of rising, oil prices fell amid doubts that the cutback would materialize and reports of larger than expected U.S. oil inventories. The benchmark grade closed at $35.76 a By Jon Healey | Los Angeles Times Widening a cross-border split over Internet piracy, a Canadian judge barrel, down 49 cents on the New York Mercantile Exchange. ruled Wednesday that sharing music online was legal while U.S. Ministers of the Organization of the Petroleum Exporting Countries agreed to reduce lawmakers moved to turn some file-sharers into federal criminals. members production quotas starting Thursday by about | million barrels, to 23.5 million barrels Judge Konrad von Finckensteins legal blessing was an of crude per day. Plans for the output reduction were announced in February, but with oil prices unexpected setback to the music industrys expanding international hovering around 13-year highs and intense pressure from the United States, some had hoped effort to stop free and unauthorized downloads. But experts said the OPEC would abandon the move: judges ruling hinged on elements of Canadian law not found in many other countries, including the United States. In fact, lawmakers and prosecutors in Washington headed in the opposite direction. A House Judiciary Subcommittee approved by voice vote a bill that would make it easier to bring criminal charges against Politicians blasted the groups action as a threat to the U.S. economy and a slap to Americans paying record-high gasoline prices. Today OPEC sent a message, and it was not a very friendly message to the United States, said Phil Flynn, a senior oil analyst at Alaron Trading in Chicago. The message is that high oil prices are going to be here to stay for a while. file-sharers. And Attorney General John Ashcroft announced the In Washington, where Congress has been getting an earful from people angry about creation of a new task force to strengthen the Justice Departments soaring pump prices, Sen. Pete Domenici, R-N.M., chairman of the Senate Energy and Natural efforts to battle music, movie, video game and software piracy. Resources Committee, said OPECs decision revealed unbridled greed and a callous disregard The bill drew brickbats from file-sharing advocates, who for the domestic economies of its customers. argued that a new study undermined entertainment industry claims A White House spokesman said President Bush was disappointed by OPECs decision, about the evils of downloading. The study, conducted by two adding: It is important for producers not to take actions that harm American consumers and our economists at Harvard University and the University of North economy. ee Carolina, found no meaningful relationship between the rise in file- Administration officials were leaning on Kuwait and other allies to keep oil production sharing and the years-long slump in compact-disc sales. up, according to sources. 2 The bill by Reps. Lamar S. Smith, R-Texas, and Howard Democratic presidential hopeful Sen. John F. Kerry, D-Mass., said the Bush L. Berman, D-Calif., would lower the threshold for criminal administration had lt fuel prices spiral out of control and squandered Americas ability to do copyright infringement, making it a federal crime to knowingly anything about it by straining relations with Arab allies. offer 1,000 or more copyrighted works through the Internet. Kerry urged the president to stop buying oil to fill the nations Strategic Petroleum By contrast, von Finckenstein rejected efforts by the major Reserve. record companies to force a group of Internet service providers to For its part, the Bush administration, joined by Domenici, seized the opportunity to push oe ers ee oneoee ea anda the long-stalled energy bill to allow more oil drilling in wilderness areas. And Sen. Jeff Bingaman, ee ee D-N.M., the ranking Democrat on the Energy and Natural Resources Committee, made the case - ich ape tena eg oghlaet piles lite gars for reducing the number of different fuel formulas in the country, which some believe contributes wrongdoing, the judge held that downloading songs for personal : : to higher pump prices. eee es eee pei inti et OPEC members produce about one-third of the worlds oil and regularly surpass their The Canadian Recording Industry Association said it established production quotas. The group will not adhere to these cutbacks given the high prices expected to appeal . on world markets, said oil analyst Bruce Lanni of A.G. Edwards. In our view, the copyright law in Canada does not allow Oil prices have been above $30 a barrel for most of the last five months, peaking Feb. 17 people to put hundreds or thousands of music files on the Internet at $38.18 on NYMEX. On Wednesday, traders at one point sent prices down $1.40, on news that for copying, transmission and distribution to millions of strangers, U.S. stockpiles had grown to their highest level since August 2002, larger than expected. said CRIA General Counsel Richard Pfohl. Michael Geist, a law Some analysts downplayed the role of crude prices in todays gasoline prices, which hit a professor at the University of Ottawa who specializes in Internet record national average Tuesday of $1.753 for a gallon of regular, according to a survey by AAA. law, said von Finckensteins ruling could eliminate the music On Wednesday, the average ticked down less than a penny to $1.752 nationwide. industrys ability to sue individual Canadians. File-sharers in other Times staff writer Richard Simon contributed to this report. 2004 LA TIMES countries may not find similar protection, he said, noting that Canadian copyright law carves out an exemption for copying music for private use. The major music companies are suing or planning to sue file-sharers in at least six countries, with most of the litigation so far taking place in the United States. Members of the Recording Industry Association of America have filed suit against nearly 2,000 alleged pirates, and several hundred have agreed to settle the claims _ W h at d oO yo ul th 5 a k of t h e by paying the RIAA a few thousand dollars each. The Smith-Berman bill aims to up the ante by encouraging | - federal prosecutors to enter the fray. In addition to making it easier U SA Pat | | ot Act? to prove criminal copyright violations against people who offer a large number of copyrighted files online, the bill would target those who record a movie as its being shown in a theater or offer one or mie copyrighted works prior to their commercial release. For first Is it Patriotic? U n-American? offenders, the maximum penalty would be three years in federal . Let us know what you think. prison. Adam Eisgrau, executive director of the file-sharing trade group P2P United, said a better approach would be for Congress to press music and movie companies to cut deals with file-sharing companies to distribute their works for a fee. Berman responded that no one is thinking that criminalization is the only way to deal with online piracy. But as entertainment companies start to work with online distributors, he said, Congress needs to hold out the potential for criminal prosecution to deal with the flagrant, egregious infringers. 2004 LA TIMES Send us your comments: WC@wcu.edu
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The Western Carolinian is Western Carolina University's student-run newspaper. The paper was published as the Cullowhee Yodel from 1924 to 1931 before changing its name to The Western Carolinian in 1933.
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