Recently, the EFF issued a white paper suggesting an approach to the problems of music distribution. The proposal would let people buy a blanket license allowing unlimited access to music from any source, in exchange for a payment of about $5 per month into a fund that would be distributed among copyright owners in proportion to the usage of each copyrighted work. The plan is voluntary, with neither consumers nor copyright owners compelled to participate. Commentary on the plan has been generally positive, though the RIAA said it wasn’t interested.
Ernest Miller pointed out a problem that would need to be resolved. Consumers who bought a license would be free to use P2P networks to download music; but it wouldn’t do to let them upload freely, as those uploads would be an unstoppable source of unpurchased music for non-participants. Peter Eckersley suggests that this problem could be solved by publishing an (unforgeable because digitally signed) list of the IP addresses of licence participants, and allowing anybody to transfer files to the people at those IP addresses.
It seems to me that if the EFF plan is going to happen, it will start with a deal between the RIAA and a university, in which the university creates a fund to pay out to copyright holders, in exchange for (a) free rein to do anything at all with copyrighted music within the campus (but not to distribute it outside the campus), and (b) permission for anyone, either on the campus or off, to transmit music to people on campus.
The university could help ensure compliance by blocking P2P traffic that would otherwise lead to outgoing transfers of music. (As always, the blocking would be easily circumvented by those who wanted to do so. Its only purpose would be to let well-intentioned people share music within the campus without accidentally making it available to outsiders.)
This is a much better deal for universities than a Penn State-style transaction, in which a university buys its students subscriptions to a limited music service. An EFF-style license allows unlimited use of music in courses, and it allows students and faculty to experiment with new uses of music. It also allows cross-university sharing and collaboration on music projects, if multiple universities join.
This might be a good deal for some university, if the price is right.