Boycott SmartFlix!

bbalser

bbalser

Veteran
To be fair, here is the response from SmartFlix to my complaints about their business practices. You judge for yourself if it's ethical or not. Legal, as far as we know at this moment, but is it ethical? It is totally legal for a U.S. Citezen like myself to ask consumers to ban a product for ethical reasons. It's been legally done thousands of times. So I'm not asking you all to ban them cause I have a grudge. I'm asking you to evaluate the situation and draw your own conclusions.

Here's what they claim on thier web site:

I'm a copyright holder, and I want SmartFlix to NOT carry my video. What do I do?
First, it's important to realize that SmartFlix has the complete legal right to rent out legally acquired copies of any video it wishes. That being said, SmartFlix thinks that good relations with copyright holders can be beneficial to both parties. With that in mind, here are some ways that SmartFlix can help you:
1. SmartFlix can purchase your videos, putting money in your pocket.
As the major Hollywood studios discovered in the 1980's, having a healthy rental market helps their bottom line: all of the evidence points to the fact that the studios make far more money selling hundreds of copies to each video store than they would make selling a few videos to individuals. After all, video stores are businesses, and can shell out $45 per title...most individuals look at $45 and think "...for a single tape?!? I think not!". You've probably been to your local video store a couple of times in the last few months. How many videos did you rent? If those hadn't been available for rental, would you have purchased them for $30-$50 instead? Probably not; you probably wouldn't have bought them...but by renting them, you created demand, and the video store purchased those tapes, putting money in the studios and actors pockets. Some SmartFlix customers have written that they do like to buy a few videos, but feel don't want to take a $40 or $80 gamble...they'd rather spend an extra $10 up front as "insurance" and then just buy the tapes that they enjoyed and want to refer to again and again.
2. SmartFlix can direct anyone who sends email asking about buying your videos to your website.
3. If you have hardcopy promotional information, an advertising deal could be reached wherein SmartFlix drops a copy of your materials in outgoing packages, the same way that you often see ads for new products in a box that you get from Amazon.com, or Duluth Trading Co., etc.
To discuss any of these options, please contact us.

You claim that you're allowed to rent my videos, but I'm going to sue you.
While not strictly a question, this is something we've heard more than once. In fact, we've gotten very official letters sent via registered mail from several vendors and their law firms, assuring us that they're going to wipe the floor with us. We've even gotten a letter from one firm's CEO, who has a degree from Harvard Law School and was formerly Chief Counsel of the United States Senate Committee on Labor and Human Resources. Unfortunately for these firms, bluffs, intimidation, and a poor grasp on copyright law are not sufficient. SmartFlix aggressively defends its rights, and fights every single challenge. Judging from other letters we've received, you might be tempted to make threats like "I'll get Paypal to shut you down" or "I'll coordinate with other vendors to cause your problems". Before making such threats, you should realize that such threats constitute conspiracy to interfere with or restrain trade, and each incident is illegal under 15 USC 1, and has penalties of up to $10,000,000 and/or three years of imprisonment. Or you might be tempted to say "I'll use the DMCA to shut you down". We've had a DMCA take-down attempt before. We understand the intricacies of the DMCA: we filed a challenge, as specified in the regulations, and are now preparing a counter-suit for legal expenses (something explicitly authorized under the DMCA). The one thing that every one of these challenges, from ill-informed emails, to legal briefs from other firms, to letters from CEOs from Harvard Law School, have in common is this: SmartFlix has fought them tooth and nail, and has won. Not one video has been removed from SmartFlix's inventory, nor will any be.
 
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Wow!! These guys are horrible!!! How is this any different from me buying a CD (legally) and then renting it out?? That's insane... Sounds like the copyright law needs to be re-written if what they are claiming is true...
 
Either they have good connections or they know the holes in the law.
It's up to people to stop renting from them.
 
It's a shame they don't give any money back to the original filmmakers with each rental. If they did it would be a great way to rent video tutorials. But as it is now, it is evil.
 
So, even though they only rent "how-to" videos, what's going to stop them from one day buying a legal copy of YOUR film work, your short film, your award winner, your first film pride-and-joy, and renting it out, without you getting a penny for it, nor having any say in how they promote it?

Spread the word. My suspicion is the notice about their legal triumphs is mostly a bluff. But I can't find a copyright lawyer to verify this. I've heard some comment, "It sounds legal." But none has been willing to research this and verify it.
 
From what I understand visiting their site, they buy videos that don't have a license about renting, or videos from owners who haven't copyright them at all. Bu it seems that the key is that they buy 20 copies from you with no label but the can rent 40 after they have copied them and noone can find it out. It's funny cause the law says you can rent original copies but you can't make copies...
 
WTF? I had no idea they didn't give some percentage to the people who produced them. Also, I don't know if my info is updated, but don't businesses/college/institutions that rent/buy the videos have to pay extra for the video?

I don't think they can just walk into Wal-Mart and start renting out videos that they paid $14.99 for. If I remember correctly...some of the videos for sale to businesses go for about $250.00 each.

(AGAIN - this is only info I remember hearing back aroound 1999/2000)
 
Personally, I'm quite proud of my little library of tutorial media. Hopefully others feel the same.
 
That is absolutely right. An institution, like a university, wanting to purchase a video pays a higher rate to show it to multiple viewers. The company even says that rental houses pay more for their copies to rent out. So do they pay a larger one time fee per copy? No, because that would imply they had to reach an agreement with the copyright holder on the figure. Then there wouldn't be any legal action against them. Sleazy.
 
Thanks for the tip. I'm going to SmartFlix right now and pick up some FCP tutorials. :thumbsup:






Not really...







Actually, that is terrible. There's got to be a copyright attorney somewhere who feels the case is worth his time.
 
They totally screw us over. And there's nothing we can do about it because they don't even necessarily buy the original copies from us, they might even buy 'em used. And they threaten lawyers left and right. If you ask politely to be removed from their catalog, the response is basically "screw you, we can do whatever we want and there's not a thing you can do about it." If you threaten legal action, they respond with "get in line, pal, our lawyers are bigger and better than yours."

No love for SmartFlix at all. These guys employ the very worst and most hostile anti-author business practices in the industry. If you want to see the worst possible example of how artists get screwed over, SmartFlix is it; in my opinion they could be the poster child of how to destroy a content creator's whole business. I mean, not only do content creators not benefit AT ALL from what these guys do, but every one of us ends up torching money on lawyers to try to figure out how to stop these guys from doing what they're doing. It may be "legal" but it sure as hell isn't "right".
 
Blockbuster Video's online store has one of my DVD's available and so does netflix, these are not instructional videos but they are doing the same thing. They buy a copy from my distributor (possibly multiple) and rent it out. I was shocked to see that without me making any deal with them.
 
Anyone know a national reporter interested in doing a story about how ef'ed up this is, and then comparing it to digital rights managment BS on the music and videos you purchase from litgit outlets on-line?

This could actually kill off the how-to video business in a major way. Seriously, I'm personally considering dropping my whole tutorial line. Or I may put a scroll locked in as first play, "If you rented this video, it is being legally rented against my will, and I make nothing off the rental."

Or should I just stay out of the video tutorial business?
 
> "One author found our site and - based on his misunderstanding of the
> copyright law, decided that we were cheating him..."
>
> May I contact that author and get his side of the story, I mean, if
> you're not afraid of being sued or anything?
>
> So you admit you rent videos AGAINST the wishes of authors? How is that
> ethical? You really admit you don't give a rats ass about the
> authors?

We're happy that our business generates extra sales for authors.

> Why didn't you just drop his video from your line?

When we spend our own money to purchase videos, we're not inclined to
then drop a title.

> Here's what you never answer, why do you have to obtain them in
> unethical ways

We purchase all videos at full retail price.

> and then work contrary to the desires of the original
> author, rather than contacting EVERY author up front and getting
> permission?

(a) we carry videos from more than 1,500 authors, and do not have the
time or manpower to contact every one.

(b) we do not need anyone's permission to use our own legally acquired
property.

> I can see no one at your company is a Christian...

You're incorrect.

> Clearing up my second concern, you do NOT pay royalties to the
> author/copyright holder, so that you can pocket more money than the
> author made off of the original sale

I doubt that you choose to pay royalties to the assembly line workers
at Ford every time you drive your car. The reason for this is that
you legally own the car, and can do with it what you like.

I'm sorry that you're not happy with the way that the copyright laws
work in the US, but I assure you that they do work to the advantage of
authors and customers.

Travis J I Corcoran, President
SmartFlix

--
http://SmartFlix.com/
web's biggest how-to DVD rental store
 
Wow. This is yet another example of how our rights as authors are under constant attack by means both "legitimate" and patently illegal.

There has to be a solution that can shut this thing down. I suppose that placing a policy card at the top of the piece is the easiest way to communicate the fact that the content is not intended for the rental market under the multiple license model.

Still, the onus is on the consumer to make the decision to boycott an operation like SmartFlix.

e
 
These people really do sicken me.

I did some more googling and a quick 411 search for Pete Krautscheid (their CTO) in Arlington, MA turns up his address and phone number. I'm thinking of giving him a call and letting him know how I feel.
 
First sale doesn't apply to rentals as I interpret the original law. Also, software copyright holders effectively usurp the law by licensing the material, not selling it to the end-user.

e
 
The sad thing is, is that any effort by individuals (such as ourselves) will quickly be struck down. The only way to make an impact on companies like these are through awareness. The media and entertainment news needs to expand on this!
 
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